COMPANY REGISTRATION NUMBER: 4238391 CHARITY REGISTRATION NUMBER: 1088755
Overflow Church Company Limited by Guarantee Unaudited Financial Statements 31 August 2022
ROBIN DILLAMORE LTD
Chartered Accountants & Business Advisers The Melbourne Centre, Melbourne Road Blacon, Chester. CH1 5JQ
Overflow Church
Company Limited by Guarantee
Financial Statements
Year ended 31 August 2022
| 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) | 10 |
| Statement of financial position | 11 |
| Notes to the financial statements | 12 |
| The following pages do not form part of the financial statements | |
| Detailed statement of financial activities | 23 |
| Notes to the detailed statement of financial activities | 24 |
Overflow Church
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 31 August 2022
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 2022.
Reference and administrative details
Registered charity name Overflow Church Charity registration number 1088755 Company registration number 4238391 Principal office and registered c/o Hoole Lighthouse Centre office Westminster Road Hoole Chester Cheshire CH2 3AU
The trustees
S L Frith (resigned 31.08.22) R C Toan (resigned 1.09.21) P Stevens (Chairman from 1.09.21) S D Glover G L Parsons (appointed 1.09.22) Company secretary S J Mahe (appointed 1.09.22) Independent examiner 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
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2022
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 governance and the dayto-day management of the Charity must be clearly accountable to the organisation as a whole.
In reviewing all this, we made the following changes this year.
Structure
The key components of the Church governance and management structure were the Board of Trustees, Pastor, Eldership and CORE leadership team. In reviewing this, this has now been simplified to the Board of Trustees and the Leadership Team. The Senior Pastor role has also been renamed as Team Leader. 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 oversee the vision and strategies of the Church and provide appropriate checks and balances to the governance of the Charity. The full Board meets four times each year. Due to the success of meeting online for the Trustees meetings, we have continued this. Mr RC Toan resigned as Chairman and director/Trustee at the end of the 2021 financial year. At the end of our 2021 financial year, the Team Leader and Chairman agreed a shortlist of suitable candidates which was 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.
The Board welcomed Gerard Parsons as a Trustee in September 2022. Gerard is an active member of Overflow Church and is a great addition. Paul Stevens (Team Leader) became the Chairman and director.
The current Board comprises church members from the Winsford congregation together with an ‘external’ Trustee who is involved in the leadership of HBC Chester.
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
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Overflow Church
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2022
-
Increased expenditure due to increase in venue hiring costs and increase in staffing costs. Paul Steven’s salary is no longer being subsidised from a grant which HBC received.
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Uncertainty of growth of income due to any impact that Covid-19 may have in the future.
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Potential loss of income from the congregation decreasing in size if Covid-19 regulations impact meeting in person again.
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Impact of starting Missional Communities. The idea of only meeting 3 times a month altogether and then in smaller groups on 4[th] Sundays of the month, could result in some people leaving church to attend a church that gather altogether every Sunday. This could also have impact on finances.
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Meeting in the new venue. The new venue is slightly further out from the Winsford Town Centre and therefore might be slightly harder for some people to attend.
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Reviewing leadership structure. Any change to leadership could have negative impact on governance if handled badly.
This analysis was reviewed by a team comprising of Trustees and the Leadership 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 Team Leader, assisted by the Church’s Leadership Team and staff.
The newly formed leadership, comprising of the Team Leader (formally known as the Senior Pastor), and key leaders in the church cover all aspects of Church life, meet about 9 to 10 times a year. These meetings include all areas of activity, planning and effectiveness but also matters of finance, human resources and health and safety as well as implementation of vision and strategy.
The Leadership Team 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. The Church no longer works with Link Up, due to over Covid, the Mid-Cheshire Link Up group ended with changes in leadership in other churches.
As a Church we work with
- Hoole Baptist Church Chester (registered charity 1131495)
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Overflow Church
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2022
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 the continued use of HBC Chester office space, HBC helping with worship leaders and speakers. As well as HBC providing support to leadership team.
- Churches Together in Winsford
Churches Together is a community group of churches that are based in Winsford. Together we chat about how we can work together and do joint events. In April 2022, we joined with other churches in Winsford for a march of witness on Good Friday.
Objectives and Activities
Objectives and Mission Statement
The primary objectives of Overflow Church are:
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i) To advance the Christian faith in Cheshire, 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
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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, the United Kingdom or other parts of the world as the Trustees see fit.
Our mission statement is:
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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.
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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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Ministry
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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.
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Community
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working in partnership with churches and local agencies to serve the local community.
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Grants and donations
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providing financial support to people, churches and communities with whom we relate, both locally and overseas.
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Overflow Church
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2022
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;
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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;
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Grants are made for local relief of hardship within Overflow Church or immediate area at the recommendation of the Leadership Team.
Summary
In summary, we seek;
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to reach unchurched people and present the Christian life and faith;
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to provide a caring community for those who respond;
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to provide practical and financial help in the UK and overseas for like-minded projects;
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to serve the people of Cheshire by planting local congregations, as a local community partner and working together with other like-minded agencies.
Achievements and performance
In the reported year, Overflow Church has looked to achieve the following:
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Maintaining of financial security and surplus so can increase reserves.
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Start Missional Communities.
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Settle into new location for Sunday meetings.
-
Providing practical and financial help in the UK and overseas.
The Trustees are pleased to report the following progress made in these areas.
Maintaining financial surplus
We started the financial year in a healthy place, aware that our expenditure was increasing due to meeting in person again. As we started to meet in person again, our income did not increase as predicted but remained at a consistent level allowing us to finish the financial year with a small deficit of £1,904 and maintain reserves of one and a half months to cover wages and one month to cover other expenses.
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Overflow Church
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2022
Start Missional Communities
Due to being able to meet in person again, this gave the Church the opportunity to start to look at doing Missional Communities. We started by doing Missional Communities trials. This is one Sunday a month where the congregation would choose to attend one of two Missional Communities. These went very well, leaving us ready to start 2022 with two new Missional Communities.
Settle into new location
Due to covid, we needed to find a new venue to meet, as our previous venue we hired was no longer available. We started the new meeting in Winsford Academy, this has gone very well. Our in-person numbers have slowly increased as the year has gone on.
Providing practical and financial help in the UK and overseas
We are pleased to be able to keep helping to support the work of an orphanage in Nepal. We have also been able to support local projects to help meet the needs of people who have faced loss.
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 plan to continue to develop Missional Communities with the aim of starting a third one. As we have seen our Sunday attendance become stable but not increase, we will review this, including the current room we meet in, is it the best one?
We plan to further develop our relationship with HBC as this has been beneficial for both churches.
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 decision-making matters. This particularly covers the area identified on the Charity Commissioners’ checklist of good practice and documentation, the delegation of authority.
Public benefit
The charity trustees have complied with their duty in section 17 (5) of the 2011 Charities Act to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. The activities mentioned above demonstrate this.
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Overflow Church
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2022
Financial review
Overview
The reported year resulted in a deficit totalling £1,904 for the year ending 31[st] August 2022 (2021 £6,435 surplus).
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 increased from the prior year to £39,672 up from £34,720.
Expenses
Expenses reported show an increase from £28,285 in 2020-2021 to £41,576 in 2021-2022.
Assets
Debtors of £503 comprise mainly: Gift aid claim of £303 and other miscellaneous debtors of £200.
Fixed Assets of £481 comprises: Equipment of £481 (after depreciation).
Cash at bank includes general operating reserves which are held at the level agreed by the Trustees. Overflow 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 £765 comprise mainly: miscellaneous expenses of £90 and an accrual for professional fees of £675.
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Overflow Church
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 August 2022
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:
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Select suitable accounting policies and then apply them consistently;
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Observe the methods and principles in the Charities SORP FRS 102 (2019);
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Make judgements and estimates that are reasonable and prudent
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State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
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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 27th April 2023 and is signed on behalf of the Board of Trustees by:
……………………………….. {s:u00___________________________}
P Stevens Chairman
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Overflow Church
Company Limited by Guarantee
Independent Examiner's Report to the Trustees of Overflow Church (continued)
Year ended 31 August 2022
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2022 set out on pages 10 to 21.
Responsibilities and basis of report
As the charity’s trustees of the Company (who are also the directors of the company 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 for this year 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 material matters have come to my attention which gives me cause to believe that:
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accounting records were not kept in accordance with section 386 of the Companies Act 2006; or
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the accounts do not accord with such records; or
• the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 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
- •the accounts have not been prepared in accordance with the Charities SORP FRS 102 (2019).
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.
……………………………….
Anna C R Benjumea MA ACA Robin Dillamore Ltd Chartered Accountants & Business Advisers The Melbourne Centre Melbourne Road Blacon Chester CH1 5JQ
Date: ……….. 202317th May
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Overflow Church
Company Limited by Guarantee
Statement of Financial Activities (including income and expenditure account)
31 August 2022
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 5 | 31,677 | - | 31,677 | 34,455 |
| Charitable activities | 6 | - | 7,992 | 7,992 | - |
| Other income | 1 | - | 1 | 265 | |
| Investment income | 2 | - | 2 | - | |
| --------------------------- | ----------------------- | --------------------------- | -------------------------------- | ||
| Total income | 31,680 | 7,992 | 39,672 | 34,720 | |
| =========================== | ======================= | =========================== | ================================ | ||
| Expenditure | |||||
| Expenditure on charitable activities | 7,8 | 33,584 | 7,992 | 41,576 | 28,285 |
| --------------------------- | ----------------------- | --------------------------- | -------------------------------- | ||
| Total expenditure | 33,584 | 7,992 | 41,576 | 28,285 | |
| =========================== | ======================= | =========================== | ================================ | ||
| --------------------------- | ----------------------- | --------------------------- | -------------------------------- | ||
| Net income / (expenditure) and net | |||||
| movement in funds | (1,904) | - | (1,904) | 6,435 | |
| =========================== | ======================= | =========================== | ================================ | ||
| Transfers between funds | - | - | - | - | |
| Reconciliation of funds | |||||
| Total funds brought forward | 8,264 | 3,085 | 11,349 | 4,914 | |
| --------------------------- | ----------------------- | --------------------------- | -------------------------------- | ||
| Total funds carried forward | 6,360 =========================== |
3,085 ======================= |
9,445 =========================== |
11,349 ================================ |
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 12 to 21 form part of these financial statements.
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Overflow Church
Company Limited by Guarantee
Statement of Financial Position
31 August 2022
| 2022 | 2021 | |||
|---|---|---|---|---|
| £ | £ | £ | ||
| Fixed assets | ||||
| Tangible fixed assets | 13 | 481 | 646 | |
| Current assets | ||||
| Debtors | 14 | 503 | 558 | |
| Cash at bank and in hand | 9,226 | 11,507 | ||
| --------------------------- | ----------------------- | |||
| 9,729 | 12,065 | |||
| Creditors: amounts falling due within one year | 15 | 765 | 1,362 | |
| --------------------------- | --------------------------- | |||
| Net current assets / liabilities | 8,964 | 10,703 | ||
| --------------------------- | ----------------------- | |||
| Total assets less current liabilities | 9,445 | 11,349 | ||
| --------------------------- | ----------------------- | |||
| Net assets / liabilities | 9,445 | 11,349 | ||
| =========================== | ======================= | |||
| Funds of the charity | ||||
| Restricted funds | 3,085 | 3,085 | ||
| Unrestricted funds | 6,360 | 8,264 | ||
| --------------------------- | ----------------------- | |||
| Total charity funds | 17 | 9,445 =========================== |
11,349 ======================= |
For the year ending 31 August 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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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;
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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 ……………… 2023, and are signed on behalf of the board by: 27th April
{s:u00___________________________}
P Stevens (Chairman) Director
The notes on pages 12 to 21 form part of these financial statements.
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Overflow Church
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 August 2022
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, Chester, 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
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2022
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 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:
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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.
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legacy income is recognised when receipt is probable and entitlement is established.
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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.
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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
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2022
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
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2022
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
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2022
5. Donations and legacies
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Donations | |||
| Tithes, Offerings & Donations | 28,024 | - | 28,024 |
| Gift Aid on above | 3,653 | - | 3,653 |
| --------------------------- | ----------------------- | --------------------------- | |
| 31,677 | - | 31,677 | |
| =========================== | ======================= | =========================== | |
| 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 | |
| =========================== | ======================= | =========================== |
6. Charitable activities
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| The Big Weekend | - | 7,944 | 7,944 |
| Mission Shaped Living | - | 48 | 48 |
| ============== | ============== | ============== | |
| - | 7,992 | 7,992 | |
| ============== | ============== | ============== | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Charitable activities | - | - | - |
| ============== | ============== | ============== |
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Overflow Church
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2022
7. Expenditure on charitable activities by fund type
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Ministry Costs | 38,794 | - | 38,794 |
| Mission Fund Gifts & Donations | 2,066 | – | 2,066 |
| Other Gifts & Donations | 41 | – | 41 |
| Governance costs | 675 | – | 675 |
| --------------------------- | ----------------------- | --------------------------- | |
| 41,576 | - | 41,576 | |
| =========================== | ======================= | =========================== | |
| 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 | |
| =========================== | ======================= | ================================ |
8. Expenditure on charitable activities by activity type
| Activities | |||||
|---|---|---|---|---|---|
| undertaken | Support | Total funds | Total funds | ||
| directly | costs | 2022 | 2021 | ||
| £ | £ | £ | £ | ||
| Ministry Costs | 38,794 | – | 38,794 | 24,101 | |
| Mission Fund Gifts & Donations | 2,066 | – | 2,066 | 3,372 | |
| Other Gifts & Donations | 41 | – | 41 | 187 | |
| Governance costs | – | 675 | 675 | 625 | |
| --------------------------- | ----------------------- | --------------------------- | -------------------------------- | ||
| 40,901 | 675 | 41,576 | 28,285 | ||
| =========================== | ======================= | =========================== | ================================ | ||
| 9. | Net expenditure | ||||
| Net expenditure is stated after charging/(crediting): | |||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Depreciation of tangible fixed assets | 165 | 14 | |||
| ============== | ============== | ||||
| 10. | Independent examination fees | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Fees payable to the independent examiner for: | |||||
| Independent examination of the financial | statements | 675 | 675 | ||
| ======================= | ======================= |
- 17 -
Overflow Church
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2022
11. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 20,887 | 18,507 |
| Social security costs | 1,258 | 968 |
| Employer contributions to pension plans | 722 | 555 |
| --------------------------- | --------------------------- | |
| 22,867 =========================== |
20,030 =========================== |
The average head count of employees during the year was 2 (2021: 2). The average number of full-time equivalent employees during the year is analysed as follows:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| Production Staff | 1 | 1 |
| Administrative Staff | 1 | 1 |
| -------------- | -------------- | |
| 2 | 2 | |
| ============== | ============== |
No employee received employee benefits of more than £60,000 during the year (2021: 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 £16,007 (2021 - £13,847).
He also received an Employee Mileage allowance of £655 (2021 - £309).
The trustees donated a total amount of £2,784 during the year to the charity (2021 - £2,908).
13. Tangible fixed assets
| Fixtures and | Motor | PA & | |||
|---|---|---|---|---|---|
| fittings | vehicles | Equipment | Electrical | Total | |
| £ | £ | £ | £ | £ | |
| Cost | |||||
| At 1 September 2021 | 6,663 | - | 13,800 | 13,909 | 34,372 |
| Additions | - | - | - | - | - |
| Disposals | - | - | - | - | - |
| At 31 August 2022 | 6,663 | - | 13,800 | 13,909 | 34,372 |
| ======================= | ======================= | =========================== | =========================== | =========================== | |
| Depreciation | |||||
| At 1 September 2021 | 6,663 | - | 13,154 | 13,909 | 33,726 |
| Charge for the year | - | - | 165 | - | - |
| Disposals | - | - | - | - | - |
| ----------------------- | ----------------------- | --------------------------- | --------------------------- | --------------------------- | |
| At 31 August 2022 | 6,663 | - | 13,319 | 13,909 | 33,891 |
| ======================= | ======================= | =========================== | =========================== | =========================== | |
| Carrying amount | |||||
| At 31 August 2022 | – | - | 481 | – | 481 |
| ======================= | ======================= | =========================== | =========================== | =========================== | |
| At 31 August 2021 | – | - | 646 | – | 646 |
| ======================= | ======================= | =========================== | =========================== | =========================== |
- 18 -
Overflow Church
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2022
14. Debtors
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Income tax recoverable | 303 | 326 |
| Other debtors | 200 | 232 |
| ----------------------- | ----------------------- | |
| 503 | 558 | |
| ======================= | ======================= | |
| Creditors: amounts falling due within one year | ||
| 2022 | 2021 | |
| £ | £ | |
| Trade creditors | 90 | 66 |
| Social security and other taxes | - | - |
| Loans | - | - |
| Other creditors | 675 | 1,296 |
| --------------------------- | --------------------------- | |
| 765 | 1,362 | |
| =========================== | =========================== |
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 £722 (2021: £555).
17. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | |||||
|---|---|---|---|---|---|
| At | Transfers | At | |||
| 1 September | 31 August | ||||
| 2021 | Income | Expenditure | 2022 | ||
| £ | £ | £ | £ | £ | |
| Unrestricted Fund | 8,264 | 31,680 | (33,584) | - | 6,360 |
| ======================= | =========================== | =========================== | =========================== | =========================== | |
| Restricted funds | |||||
| At | Transfers | At | |||
| 1 September | 31 August | ||||
| 2021 | Income | Expenditure | 2022 | ||
| £ | £ | £ | £ | £ | |
| Restricted Fund | 3,085 | 7,992 | (7,992) | - | 3,085 |
| ============== | ======================= | ======================= | =========================== | ============== |
- 19 -
Overflow Church
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2022
18. Analysis of net assets between funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Tangible fixed assets | 481 | – | 481 |
| Current assets | 6,644 | 3,085 | 9,729 |
| Current liabilities | (765) | – | (765) |
| --------------------------- | -------------- | --------------------------- | |
| Net assets | 6,360 | 3,085 | 9,445 |
| =========================== | ============== | =========================== |
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 | (2,283) | 5,354 | (Note 21) | |||
| Cash flows from investing activities: | ||||||
| Dividends, interest and rents from investments | 2 | - | ||||
| 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 | 2 | (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 |
(2,281) | 4,882 | ||||
| Cash and cash equivalents at the beginning of the reporting | 11,507 | 6,625 | (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 |
9,226 | 11,507 | (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 | (1,904) | 6,435 | ||||
| the statement of financial activities) | ||||||
| Adjustments for: | ||||||
| Depreciation charges | 165 | 14 | ||||
| (Gains)/losses on investments | (2) | - | ||||
| Loss/(profit) on the sale of fixed assets | - | (185) | ||||
| (Increase)/decrease in stocks | - | - | ||||
| (Increase)/decrease in debtors | 55 | 1,484 | ||||
| Increase/(decrease) in creditors | (597) | (2,394) | ||||
| Net cash provided by (used in) operating activities | (2,283) | 5,354 |
20. Reconciliation of net income / (expenditure) to net cash flow from operating activities
- 20 -
Overflow Church
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 August 2022
21. Analysis of cash and cash equivalents
| Current Year | Prior Year | ||
|---|---|---|---|
| £ | £ | ||
| Cash in hand | 9,226 | 11,507 | |
| Notice deposits (less than 3 months) | - | - | |
| Overdraft facility repayable on demand | - | - | |
| Total cash and cash equivalents | 9,226 | 11,507 |
- 21 -
Overflow Church
Company Limited by Guarantee
Management Information
Year ended 31 August 2022
The following pages do not form part of the financial statements.
- 22 -
Overflow Church
Company Limited by Guarantee
Detailed Statement of Financial Activities
31 August 2022
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Income and endowments | ||
| Donations and legacies | ||
| Tithes, Offerings & Donations | 28,024 | 30,254 |
| Gift Aid on above | 3,653 | 4,201 |
| --------------------------- | --------------------------- | |
| 31,677 | 34,455 | |
| --------------------------- | --------------------------- | |
| Charitable activities | ||
| Charitable activities | 7,992 | - |
| Other income | ||
| Other income | 1 | 265 |
| Investment income | ||
| Bank interest receivable | 2 | - |
| -------------- | -------------- | |
| --------------------------- | -------------------------------- | |
| Total income | 39,672 | 34,720 |
| =========================== | ================================ | |
| Expenditure | ||
| Expenditure on charitable activities | ||
| Wages and salaries | 20,887 | 18,507 |
| Employer's NIC | 1,258 | 968 |
| Pension costs | 722 | 555 |
| Legal and professional fees | 675 | 625 |
| Depreciation | 165 | 14 |
| The Big Weekend | 7,944 | - |
| Office, Admin and Premises Costs | 7,818 | 4,057 |
| Mission Fund Gifts & Donations | 2,107 | 3,559 |
| --------------------------- | -------------------------------- | |
| 41,576 | 28,285 | |
| --------------------------- | -------------------------------- | |
| --------------------------- | -------------------------------- | |
| Total expenditure | 41,576 | 28,285 |
| =========================== | ================================ | |
| --------------------------- | -------------------------------- | |
| Net income / (expenditure) | (1,904) | 6,435 |
| =========================== | ================================ |
- 23 -
Overflow Church
Company Limited by Guarantee
Notes to the Detailed Statement of Financial Activities
31 August 2022
| 31 August 2022 | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Expenditure on charitable activities | ||
| Ministry Costs | ||
| Activities undertaken directly | ||
| Ministry Costs - wages/salaries | 20,887 | 18,507 |
| Ministry Costs - employer's NIC | 1,258 | 968 |
| Ministry Costs - pension costs | 722 | 555 |
| Depreciation | 165 | 14 |
| The Big Weekend | 7,944 | - |
| Office, admin and premises costs | 7,818 | 4,057 |
| --------------------------- | --------------------------- | |
| 38,794 | 24,101 | |
| --------------------------- | --------------------------- | |
| Mission Fund Gifts & Donations | ||
| Activities undertaken directly | ||
| Mission Fund Gifts & Donations | 2,066 | 3,372 |
| ----------------------- | ----------------------- | |
| Other Gifts & Donations | ||
| Activities undertaken directly | ||
| Other Gifts & Donations | 41 | 187 |
| -------------- | -------------- | |
| Governance costs | ||
| Governance costs - accountancy fees | 675 | 625 |
| Governance costs - costs of trustees' meetings | - | - |
| Governance costs – legal advice | - | - |
| ----------------------- | ----------------------- | |
| 675 | 625 | |
| ----------------------- | ----------------------- | |
| --------------------------- | -------------------------------- | |
| Expenditure on charitable activities | 41,576 | 28,285 |
| =========================== | ================================ |
- 24 -
Signature Certificate
Reference number: 2XQDO-4EG2E-6X4GW-8F7KP
Signer
Timestamp
Signature
Paul Stevens
Email: paul.stevens@overflowchurch.org.uk
Sent: 09 May 2023 10:11:28 UTC Viewed: 10 May 2023 11:58:28 UTC Signed: 11 May 2023 14:09:04 UTC Recipient Verification: ✔ Email verified 10 May 2023 11:58:28 UTC
IP address: 90.255.96.82 Location: Liverpool, United Kingdom
Document completed by all parties on: 11 May 2023 14:09:04 UTC
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