2021-08-31-accounts

COMPANY REGISTRATION NUMBER: 4238391 CHARITY REGISTRATION NUMBER: 1088755

Overflow Church (formerly The Storehouse Church) Company Limited by Guarantee Unaudited Financial Statements

31 August 2021

ROBIN DILLAMORE LTD

Chartered Accountants & Business Advisers

The Melbourne Centre, Melbourne Road Blacon, Chester. CH1 5JQ

Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Financial Statements

Year ended 31 August 2021

	Page
Trustees' annual report (incorporating the director's report)	1
Independent examiner's report to the trustees	9
Statement of financial activities (including income and
expenditure account)	11
Statement of financial position	12
Notes to the financial statements	13
The following pages do not form part of the financial statements
Detailed statement of financial activities	24
Notes to the detailed statement of financial activities	25

Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 August 2021

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 August 2021.

Reference and administrative details

Registered charity name

Overflow Church (formerly The Storehouse Church)

Charity registration number 1088755 Company registration number 4238391 Principal office and registered c/o Hoole Lighthouse Centre office Westminster Road Hoole Cheshire CH2 3AU

The trustees

SL Frith RC Toan P Stevens SD Glover

Company secretary

Independent examiner

Secretary from 01 09 20 Resigned 01 09 21 Chairman from 01 09 21 Appointed as trustee 01 09 20 SL Frith

Anna C R Benjumea MA ACA Robin Dillamore Ltd Chartered Accountants & Business Advisers The Melbourne Centre Melbourne Road Blacon Chester CH1 5JQ

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 August 2021

Structure, Governance and Management

As a church we continually seek wisdom and accountability in both the spiritual development of the Church and the way in which it operates. In doing this, each of the areas of government, governance and the day-to-day management of the Charity must be clearly accountable to the organisation as a whole.

These priorities are reflected in our structure and in the governance and management arrangements as outlined below.

Structure

The key components of the Church governance and management structure are its Board of Trustees, Pastor, Eldership and CORE leadership team. Both employed staff and volunteers play a crucial role in our ability to deliver our objectives. Our goal is to see 75% of all ages actively involved in serving as part of our extended team.

Government

The governance of the Church and Charity is vested in the Trustees as a body corporate. The Board of Trustees oversees the vision and strategies of the Church and provides appropriate checks and balances to the governance of the Charity. The full Board meets four times each year. Due to Covid19, our meetings have moved on to zoom instead of in person. The Board welcomed Mrs SD Glover as trustee at the start of this financial year. Sue Glover is part of the leadership team at HBC Chester and comes with a huge amount of experience as a trustee.

The current Board comprises church members from the Winsford congregation together with an ‘external’ trustee who is involved in similar work and is experienced in Christian ministry but is not part of the day-to-day activity at Overflow Church. The appointment of experienced Christian ministers to the Board from other Christian traditions brings depth and breadth to strategic and pastoral issues. Mr RC Toan is a retired Anglican minister with long experience of the West Cheshire Church network and of Overflow Church. Mr RC Toan expressed his desire to resign as Chairman and director/trustee at the end of the financial year.

When a trustee vacancy arises, the Pastor and Chairman agree a shortlist of suitable candidates which is presented to the Trustees. Appointments take account of the balance of the Board to ensure the Charity operates with reference to good practice as well as the diversity of skill and experience. The final appointment is made by the Trustees as set out in the Memorandum and Articles of Association.

New trustees are either familiar with how a church runs because they themselves have experience or are mature members of Overflow Church. This enables each to be able to make an early contribution to the working of the Board. Copies of applicable documentation regarding the role of the Trustees (Charity Commission guide CC3 ‘The Essential Trustee: what you need to know’ and the Companies House ‘Directors and Secretaries Guide’) are provided, along with copies of the Memorandum and Articles of Association, copies of minutes and accounts.

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 August 2021

Trustees actively review the major risks that the Church faces, both generally and specifically. In the current year, the greatest risks are assessed to be:

Maintaining financial security due to:

• loss of finance from the Shrewsbury congregation as they become a separate charity.

• potential loss of income due to the effects of Covid-19 on people's personal finances and therefore their financial support of the Charity.

• potential loss of income from the congregation decreasing in size due to not being able to meet in person because of Covid-19.

• Impact of changing name, due to people not being aware of Overflow Church (formerly known as The Storehouse Church). This could impact reputation and ability of people to discover the church.

• Closing the office in Winsford and moving base to Chester may be perceived as a threat to withdraw our commitment to maintaining the church presence in Winsford and therefore be destabilising.

This analysis was reviewed by a team comprising of Trustees, Elders and CORE Team.

Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s website. At the time of writing this report, a full update of the website has been completed ensuring all information is correct and that the website complies with GDPR legislation.

Management

The Board of Trustees has delegated day-to-day management to the Pastor, assisted by the Church’s leadership (CORE Team) and staff.

The CORE Team, comprising of the Pastor, Elders and key leaders covering all aspects of Church life, meets together bi-monthly to consider implementation of vision and strategy. This includes all areas of activity, planning and effectiveness but also matters of finance, human resources and health and safety.

Wider leadership works with team members for our Sunday meetings and in leading home-based groups mid-week.

Partnering with Other Organisations

The Church recognises the benefit of collaborative working where there are shared values and objectives. This enables more efficient delivery of the Charity objectives and increases local cohesion between similar organisations. This year our partnerships have changed. We are no longer working in partnership with Kingdom Faith Church. This partnership ended at the end of August 2020 when the Shrewsbury congregation became its own charity.

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 August 2021

A key element of our giving as Overflow Church is our release of the Pastor for this wider work with other churches and organisations including Churches Together in Winsford which the Trustees see as a core part of our mission as a charity.

The organisations with which the Church works in partnership include:

• Link Up West Cheshire (registered charity 1158678)

Our heart is still to meet in Mid-Cheshire, but we haven’t been able to due to Covid-19.

• Hoole Baptist Church Chester (registered charity 1131495)

Our partnership with HBC is continuing to grow since it commenced in January 2019. The Kingdom Alliance that was formed is working well and continues to develop. This partnership has resulted in us using the HBC Chester office space and HBC helping with worship leaders and speakers, as well as doing joint live streams of Sunday services during lockdowns.

• Churches Together in Winsford

Churches Together is a community group of churches that are based in Winsford. We chat about how we can both work and do joint events together. Due to Covid-19, we have been limited on what we can do together as we have not been able to meet in person.

Objectives and Activities

Objectives and Mission Statement

The primary objectives of The Storehouse Church are:

• i) To advance the Christian faith in Cheshire and Shropshire, the United Kingdom and the rest of the world and to fulfil such other purposes which are exclusively charitable connected with the work of the Church; and

• ii) To relieve persons who are in conditions of need or hardship or who are aged or sick, and or relieve the distress caused in Cheshire and Shropshire, the United Kingdom or other parts of the world as the Trustees see fit.

Our mission statement is:

• Vision Statement : We want to be a church that brings healing, wholeness, and freedom to broken lives and communities as we expect great things from God and attempt great things with God.

• Mission Statement: We want to help people to love, trust and follow Jesus.

Activities

In addressing the above objectives, our activities fall into three main categories:

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 August 2021

• Ministry

• working to help, support and connect with people, in particular to present the Christian life and faith to those who have little or no church connection or awareness.

• Community

• working in partnership with churches and local agencies to serve the local community.

• Grants and donations

• providing financial support to people, churches and communities with whom we relate, both locally and overseas.

The Bible tells us that one of the purposes of ministry is to train and equip people for works of service, and so our activity seeks not only to deliver our objectives in the most effective way but also to teach and train others to do the same.

We endeavour to minimise support costs and focus on investing our resources into providing the relational support necessary for church life, in particular the ministry and community angles.

Grants are made, wherever possible, to those with whom the Church is in relationship. This reasonably assures Trustees that funds are used in accordance with our charitable objectives:

• Overseas grants are made to churches, individuals or ministries for activities consistent with our objectives, for example the alleviation of poverty;

• UK grants are made to churches, individuals or ministries consistent with our objectives. Some will be to those who visit the Overflow Church to minister;

• Grants are made for local relief of hardship within the Overflow Church or immediate area at the recommendation of the Elders.

Summary

In summary, we seek;

• to reach unchurched people and present the Christian life and faith;

• to provide a caring community for those who respond;

• to provide practical and financial help in the UK and overseas for like-minded projects;

• to serve the people of Cheshire by planting Missional Communities and working together with other like-minded agencies.

Achievements and performance

In the reported year, Overflow Church has looked to achieve the following:

• Maintaining of financial security and surplus so can increase reserves.

• Transitioning well to being a church with one congregation that is both Winsford and Cheshire focused.

• Transitioning well to not having an office in Winsford.

• Rebranding well with the new name of Overflow Church.

• Responding to the ongoing challenges of Covid-19 and the restrictions it has brought.

• Explore Missional Communities Model.

The Trustees are pleased to report the following progress made in these areas.

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 August 2021

Maintaining financial surplus

We started the year having just cleared our financial backlog and without the income from the Shrewsbury congregation due to becoming 2 separate charities. This year, due to Covid-19 and not being able to meet in person very often, our expenditure was lower than budgeted and our income was also slightly lower than budgeted; but based on the situation, we felt this was a big success. We finished the financial year with a surplus of funds, providing a great foundation for the start of the new financial year, especially as Covid-19 regulations ease, which will allow us to do more again in person as a church.

Transitioning well to being a church with one congregation

The Church has had a congregation in Shrewsbury for a significant amount of time. This has gone well. Due to Covid-19, the timing of this has helped the Overflow Church leadership, have the time and focus to put into Winsford during a time of lots of change.

Transitioning well to not having an office in Winsford

This has gone very smoothly and due to Covid-19 and working at home for a lot of this financial year, no one has missed not having a physical office in Winsford.

Rebranding well with new name of Overflow Church

Covid-19 has hindered our achievements in this area. It has taken longer than we thought to make people aware of the name change especially as interaction in person and wider community is less. However, the success of this is the rebranding of the website.

Explore Missional Communities model

Covid-19 has had a negative impact on launching Missional Communities. This hasn’t happened this year as planned and instead we have worked on getting everything ready to start in September/October 2021, Covid depending.

Plans for future periods

The Trustees have identified priorities in the following areas for Overflow Church’s future focus.

Immediate and strategic

Looking at the next financial year, we are aware that our expenditure will increase due to our new venue, so we will look to see our income grow through starting Missional Communities. We are looking at starting Missional gatherings and at some point, transition to Missional Communities, all being aware of the need to be flexible due to Covid-19. We are also looking at how do we regather people, as we continue to transition from meeting online to in person.

We plan to further develop our relationship with HBC as this has been beneficial for both churches.

Governance

Next year we look to review our current church structure of Elders, and CORE team and what is the best structure for us moving forward as the church has changed a lot, but our leadership structure has

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 August 2021

not changed at all. The Trust will also lose Mr RC Toan as its Chair, and transition to the new Chair, Mr PJ Stevens.

Employed and Volunteer Staff

The Church values both its volunteers and employees highly and the provision of trained and dedicated personnel is a priority for the Church. We have deployed both employees and volunteers in leadership roles within the Church. In turn, these individuals lead, manage and support others who help with activities and events.

We seek to manage staff fairly and professionally. Our staff handbook provides all staff with detailed information about policies and procedures regarding financial, employment, organisation and decisionmaking matters. This particularly covers the area identified on the Charity Commissioners’ checklist of good practice and documentation, the delegation of authority.

Financial review

Overview

The reported year resulted in a surplus totalling £6,435 for the year ending 31[st] August 2021 (2020 £12,689).

The full financial statements and associated policies and notes are included at the end of this report, with some of the key points noted below.

Income

Income was again reduced from prior year to £34,720 down from £48,970.

Expenses

Expenses reported show a reduction from £36,281 in 2019-2020 to £28,285 in 2020-2021. This is due to continuing measures implemented by the Trustees to reduce costs in response to decreased income during the year and the Covid-19 pandemic.

Assets

Debtors of £558 comprise mainly: Gift aid claim of £326 and other miscellaneous debtors of £232.

Fixed Assets of £646 comprises: Equipment of £646 (after depreciation).

Cash at bank includes general operating reserves which are held at the level agreed by the Trustees. The Storehouse Church’s normal practise is to utilise its resources to the maximum in order to fulfil its mission but aims to maintain sufficient reserves to pay all its bills and to retain one month’s salary expenses in reserve.

Liabilities

Creditors of £1,362 comprise mainly: miscellaneous expenses of £87, an accrual for professional fees of £675 and deferred income for booking fees for The Big Weekend of £600.

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 August 2021

Trustees’ Responsibilities Statement

The trustees (who are also the directors of Overflow Church for the purposes of company law) are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}.

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

• Select suitable accounting policies and then apply them consistently;

• Observe the methods and principles in the Charities SORP;

• Make judgements and estimates that are reasonable and prudent

• State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website.

Independent examiner

The charity’s independent examiner is Anna Benjumea of Robin Dillamore Ltd, Chartered Accountants and Business Advisers.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption provided by section 415A of the Companies Act 2006.

The trustees' annual report was approved on 21st April 2022 and is signed on behalf of the Board of

Trustees by:

S L Frith Charity Secretary

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of Overflow Church

Year ended 31 August 2021

I report on the financial statements for the year ended 31 August 2021 set out on pages 11 to 22, which comprise the statement of financial activities (including income and expenditure account), statement of financial position and the related notes.

Respective responsibilities of trustees and examiner

The trustees are also the directors of the company for the purposes of company law and are responsible for the preparation of the financial statements. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) or under Part 16 of the Companies Act 2006 (the Companies Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

• examine the accounts under section 145 of the 2011 Act;

• to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and

• to state whether particular matters have come to my attention.

Basis of independent examiner's report

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

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Independent Examiner's Report to the Trustees of Overflow Church (continued)

Year ended 31 August 2021

Independent examiner's statement

In connection with my examination, I have reasonable cause to believe that (1) in all material respects the requirements:

• to keep accounting records in accordance with section 386 of the Companies Act 2006, and

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

• have been met; and

(2) there are no material matters to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

……………………………….

Anna C R Benjumea MA ACA Robin Dillamore Ltd Chartered Accountants & Business Advisers The Melbourne Centre Melbourne Road Blacon Chester CH1 5JQ

Date: 4[th] May 2022

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

31 August 2021

			2021		2020
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	5	31,855	2,600	34,455	48,963
Other income	6	185	80	265	-
Investment income		-	-	-	7
		---------------------------	-----------------------	---------------------------	--------------------------------
Total income		32,040	2,680	34,720	48,970
		===========================	=======================	===========================	================================
Expenditure
Expenditure on charitable activities	7,8	27,905	380	28,285	36,281
		---------------------------	-----------------------	---------------------------	--------------------------------
Total expenditure		27,905	380	28,285	36,281
		===========================	=======================	===========================	================================
		---------------------------	-----------------------	---------------------------	--------------------------------
Net income / (expenditure) and net
movement in funds		4,135	2,300	6,435	12,689
		===========================	=======================	===========================	================================
Transfers between funds		2,300	(2,300)	-	-
Reconciliation of funds
Total funds brought forward		1,829	3,085	4,914	(7,775)
		---------------------------	-----------------------	---------------------------	--------------------------------
Total funds carried forward		8,264 ===========================	3,085 =======================	11,349 ===========================	4,914 ================================

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 13 to 22 form part of these financial statements.

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Statement of Financial Position

31 August 2021

		2021		2020
		£	£	£
Fixed assets
Tangible fixed assets	13		646	3
Current assets
Debtors	14	558		2,042
Cash at bank and in hand		11,507		6,625
		---------------------------		-----------------------
		12,065		8,667
Creditors: amounts falling due within one year	15	1,362		3,756
		---------------------------		---------------------------
Net current assets / liabilities			10,703	4,911
			---------------------------	-----------------------
Total assets less current liabilities			11,349	4,914
			---------------------------	-----------------------
Net assets / liabilities			11,349	4,914
			===========================	=======================
Funds of the charity
Restricted funds			3,085	3,085
Unrestricted funds			8,264	1,829
			---------------------------	-----------------------
Total charity funds	17		11,349 ===========================	4,914 =======================

For the year ending 31 August 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;

• The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime, and in accordance with the Section 1A of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

These financial statements were approved by the board of trustees and authorised for issue on 21[st] April 2022, and are signed on behalf of the board by:

P Stevens (Chairman) Director

The notes on pages 13 to 22 form part of these financial statements.

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 August 2021

1. General information

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is c/o Hoole Lighthouse Centre, Westminster Road, Hoole, Cheshire, CH2 3AU.

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, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

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

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 September 2015.

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.

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2021

3. Accounting policies (continued)

Fund accounting

Funds held by the Church are either:

Unrestricted general funds - These are funds that can be used in accordance with the charitable objects at the discretion of the Trustees; or

Restricted funds - These are funds that can only be used for particular restricted purposes within the objects of the Church. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Reserves

Overflow Church's (formerly The Storehouse Church) normal practice is to utilise its resources to the maximum in order to fulfil its mission, but aims to maintain sufficient reserves to pay all bills and one month's salary expenses.

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.

Resources expended

Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any Value Added Tax which cannot be recovered.

Direct Charitable Expenditure

Directly attributable expenditure has been allocated to the appropriate fund. Where costs have been shared the expenditure has been allocated to funds on the basis of their estimated consumption of expenses.

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2021

3. Accounting policies (continued)

Tangible assets

Individual fixed assets costing £500 or more are initially recorded at cost.

Depreciation is first charged in the month following acquisition and in the last full month before disposal and is calculated on the cost of estimated value of the assets as follows:

Vehicles - 30% pa reducing balance basis Office Equipment - 25% pa straight line basis PA Equipment - 20% pa straight line basis Fixtures & Fittings - 10% pa straight line basis

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:

Fixtures & fittings	-	Straight Line Depreciation over 10 Years
Motor Vehicles	-	30% Depreciation on Reducing Balance
Equipment	-	Straight Line Depreciation over 4 Years
Stage Equipment	-	Straight Line Depreciation over 5 Years

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the

contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including

any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2021

3. Accounting policies (continued)

Financial instruments (continued)

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

4. Limited by guarantee

The charity is a registered company limited by guarantee and has no share capital.

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Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2021

5. Donations and legacies

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2021
	£	£	£
Donations
Tithes, Offerings & Donations	27,654	2,600	30,254
Gift Aid on above	4,201	-	4,201
	---------------------------	-----------------------	---------------------------
	31,855	2,600	34,455
	===========================	=======================	===========================
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2020
	£	£	£
Donations
Tithes, Offerings & Donations	39,310	3,248	42,558
Gift Aid on above	6,104	301	6,405
	---------------------------	-----------------------	---------------------------
	45,414	3,549	48,963
	===========================	=======================	===========================

6. Other income

	Unrestricted	Restricted	Total Funds	Unrestricted	Total Funds
	Funds	Funds	2021	Funds	2020
	£	£	£	£	£
Other income	185	80	265	-	-
	==============	==============	==============	==============	==============

- 17 -

Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2021

7. Expenditure on charitable activities by fund type

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2021
	£	£	£
Ministry Costs	23,721	380	24,101
Mission Fund Gifts & Donations	3,372	–	3,372
Other Gifts & Donations	187	–	187
Governance costs	625	–	625
	---------------------------	-----------------------	---------------------------
	27,905	380	28,285
	===========================	=======================	===========================
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2020
	£	£	£
Ministry Costs	30,054	–	30,054
Mission Fund Gifts & Donations	4,908	–	4,908
Other Gifts & Donations	420	–	420
Governance costs	899	–	899
	---------------------------	-----------------------	--------------------------------
	36,281	–	36,281
	===========================	=======================	================================

8. Expenditure on charitable activities by activity type

	Activities
	undertaken	Support	Total funds	Total funds
	directly	costs	2021	2020
	£	£	£	£
Ministry Costs	24,101	–	24,101	30,054
Mission Fund Gifts & Donations	3,372	–	3,372	4,908
Other Gifts & Donations	187	–	187	420
Governance costs	–	625	625	899
	---------------------------	-----------------------	---------------------------	--------------------------------
	27,660	625	28,285	36,281
	===========================	=======================	===========================	================================
Net expenditure
Net expenditure is stated after charging/(crediting):
			2021	2020
			£	£
Depreciation of tangible fixed assets			14	1
			==============	==============
Independent examination fees
			2021	2020
			£	£
Fees payable to the independent examiner for:
Independent examination of the financial	statements		675	875
			=======================	=======================

9. Net expenditure

10. Independent examination fees

- 18 -

Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2021

11. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

	2021	2020
	£	£
Wages and salaries	18,507	19,833
Social security costs	968	-
Employer contributions to pension plans	555	29
	---------------------------	---------------------------
	20,030 ===========================	19,862 ===========================

The average head count of employees during the year was 2 (2020: 3). The average number of full-time equivalent employees during the year is analysed as follows:

	2021	2020
	No.	No.
Production Staff	1	1
Administrative Staff	1	2
	--------------	--------------
	2	3
	==============	==============

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

12. Trustee remuneration and expenses

One trustee has been paid remuneration or received other benefits from employment with the charity or a related entity.

Mr P Stevens was paid a gross salary of £13,847 (2020 - £12,800).

He also received an Employee Mileage allowance of £309 (2020 - £813).

The trustees donated a total amount of £2,908 during the year to the charity (2020 - £9,997).

13. Tangible fixed assets

	Fixtures and	Motor		PA &
	fittings	vehicles	Equipment	Electrical	Total
	£	£	£	£	£
Cost
At 1 September 2020	6,663	2,014	13,140	13,909	35,726
Additions	-	-	660	-	660
Disposals	-	(2,014)	-	-	(2,014)
At 31 August 2021	6,663	-	13,800	13,909	34,372
	=======================	=======================	===========================	===========================	===========================
Depreciation
At 1 September 2020	6,663	2,011	13,140	13,909	35,723
Charge for the year	-	-	14	-	14
Disposals	-	(2,011)	-	-	(2,011)
	-----------------------	-----------------------	---------------------------	---------------------------	---------------------------
At 31 August 2021	6,663	-	13,154	13,909	33,726
	=======================	=======================	===========================	===========================	===========================
Carrying amount
At 31 August 2021	–	-	646	–	646
	=======================	=======================	===========================	===========================	===========================
At 31 August 2020	–	3	–	–	3
	=======================	=======================	===========================	===========================	===========================

- 19 -

Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2021

14. Debtors

	2021	2020
	£	£
Income tax recoverable	326	1,482
Other debtors	232	560
	-----------------------	-----------------------
	558	2,042
	=======================	=======================
Creditors: amounts falling due within one year
	2021	2020
	£	£
Trade creditors	66	-
Social security and other taxes	-	-
Loans	-	-
Other creditors	1,296	3,756
	---------------------------	---------------------------
	1,362 ===========================	3,756 ===========================

15. Creditors: amounts falling due within one year

16. 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 £555 (2020: £29).

17. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
	At			Transfers	At
	1 September				31 August
	2020	Income	Expenditure		2021
	£	£	£	£	£
Unrestricted Fund	1,829	32,040	(27,905)	2,300	8,264
	=======================	===========================	===========================	===========================	===========================
Restricted funds
	At			Transfers	At
	1 September				31 August
	2020	Income	Expenditure		2021
	£	£	£	£	£
Restricted Fund	3,085	2,680	(380)	(2,300)	3,085
	==============	=======================	=======================	===========================	==============

- 20 -

Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2021

18. Analysis of net assets between funds

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2021
	£	£	£
Tangible fixed assets	646	–	646
Current assets	8,980	3,085	12,065
Current liabilities	(1,362)	–	(1,362)
	---------------------------	--------------	---------------------------
Net assets	8,264	3,085	11,349
	===========================	==============	===========================

19. Statement of cash flows

	Total	Total	Prior year	Prior year		Note
	funds			funds
	£		£
Cash flows from operating activities:
Net cash provided by (used in) operating activities	5,354		(2,104)		(Note 21)
Cash flows from investing activities:
Dividends, interest and rents from investments		-		-
Proceeds from the sale of property, plant and equipment		188		-
Purchase of property, plant and equipment	(660)			-
Proceeds from the sale of investments		-		-
Purchase of investments		-		-
Net cash provided by (used in) investing activities	(472)			-
Cash flows from financing activities:
Repayments of borrowing		-		-
Cash inflows from new borrowing		-		-
Receipt of endowment		-		-
Net cash provided by (used in) financing activities		-		-
Change in cash and cash equivalents in the reporting period	4,882		(2,104)
Cash and cash equivalents at the beginning of the reporting	6,625			8,729	(Note 21)
period
Change in cash and cash equivalents due to exchange rate		-		-
movements
Cash and cash equivalents at the end of the reporting period	11,507			6,625	(Note 21)
0. Reconciliation of net income / (expenditure) to net cash flow from operating activities
	Current year			Prior year
		£		£
Net income/(expenditure) for the reporting period (as per			6,435		12,689
the statement of financial activities)
Adjustments for:
Depreciation charges			14			1
(Gains)/losses on investments			-			-
Loss/(profit) on the sale of fixed assets			(185)			-
(Increase)/decrease in stocks			-			-
(Increase)/decrease in debtors			1,484		(1,533)
Increase/(decrease) in creditors		(2,394)		(13,261)
Net cash provided by (used in) operating activities			5,354		(2,104)

20. Reconciliation of net income / (expenditure) to net cash flow from operating activities

- 21 -

Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 August 2021

21. Analysis of cash and cash equivalents

Current Year Prior Year £ £ Cash in hand 11,507 Notice deposits (less than 3 months) - Overdraft facility repayable on demand - Total cash and cash equivalents 11,507	6,625 - - 6,625

- 22 -

Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Management Information

Year ended 31 August 2021

The following pages do not form part of the financial statements.

- 23 -

Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Detailed Statement of Financial Activities

31 August 2021

	2021	2020
	£	£
Income and endowments
Donations and legacies
Tithes, Offerings & Donations	30,254	42,558
Gift Aid on above	4,201	6,405
	---------------------------	---------------------------
	34,455	48,963
	---------------------------	---------------------------
Other income
Other income	265	-
Investment income
Bank interest receivable	-	7
	--------------	--------------
	---------------------------	--------------------------------
Total income	34,720	48,970
	===========================	================================
Expenditure
Expenditure on charitable activities
Wages and salaries	18,507	19,833
Employer's NIC	968	-
Pension costs	555	29
Legal and professional fees	625	899
Depreciation	14	1
Office, Admin and Premises Costs	4,057	10,191
Mission Fund Gifts & Donations	3,559	5,328
	---------------------------	--------------------------------
	28,285	36,281
	---------------------------	--------------------------------
	---------------------------	--------------------------------
Total expenditure	28,285	36,281
	===========================	================================
	---------------------------	--------------------------------
Net income / (expenditure)	6,435	12,689
	===========================	================================

- 24 -

Overflow Church (formerly The Storehouse Church)

Company Limited by Guarantee

Notes to the Detailed Statement of Financial Activities

31 August 2021

31 August 2021
	2021	2020
	£	£
Expenditure on charitable activities
Ministry Costs
Activities undertaken directly
Ministry Costs - wages/salaries	18,507	19,833
Ministry Costs - employer's NIC	968	-
Ministry Costs - pension costs	555	29
Depreciation	14	1
Office, admin and premises costs	4,057	10,191
	---------------------------	---------------------------
	24,101	30,054
	---------------------------	---------------------------
Mission Fund Gifts & Donations
Activities undertaken directly
Mission Fund Gifts & Donations	3,372	4,908
	-----------------------	-----------------------
Other Gifts & Donations
Activities undertaken directly
Other Gifts & Donations	187	420
	--------------	--------------
Governance costs
Governance costs - accountancy fees	625	875
Governance costs - costs of trustees' meetings	-	24
Governance costs – legal advice	-	-
	-----------------------	-----------------------
	625	899
	-----------------------	-----------------------
	---------------------------	--------------------------------
Expenditure on charitable activities	28,285	36,281
	===========================	================================

- 25 -