**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021** ## **FOLLY'S END FELLOWSHIP TRUST** **CHARITY REGISTRATION No: 1092505 COMPANY REGISTRATION No: 4416528** Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF ## **FOLLY'S END FELLOWSHIP TRUST** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **CONTENTS** |Page 3|Legal & Administrative Information| |---|---| |Pages 4 to 5|Report of the Directors| |Page 6|Statement of Financial Activities| |Page 7|Balance Sheet| |Pages 8 to 16|Notes to the Financial Statements| |Page 17|Independent Examiner's Report| 2 ## **FOLLY'S END FELLOWSHIP TRUST** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **LEGAL AND ADMINISTRATIVE INFORMATION** **CHARITY NUMBER** 1092505 **COMPANY REGISTRATION NUMBER** 4416528 **DATE OF INCORPORATION** 15th April 2002 **START OF FINANCIAL YEAR** 1st January 2021 **END OF FINANCIAL YEAR** 31st December 2021 **TRUSTEE DIRECTORS WHO SERVED** Frank Stonelake **DURING THE YEAR TO 31ST** Katherine Valdes nee Kitchen (resigned 7 March 2021) **DECEMBER 2021** Mary Fish David Williams (appointed 22 January 2021) Dr Christian Wilcock (appointed 22 January 2021, resigned 23 February 2022) **GOVERNING DOCUMENT** Memorandum and Articles of Association ## **OBJECTS** To advance the Christian faith in accordance with the statement of beliefs in Croydon and in such other parts of the United Kingdom or the world as the Trustees may from time to time think fit and other such purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the charity. **REGISTERED ADDRESS** 3 Ulstan Close Woldingham Caterham CR3 7EH **BANKERS** Barclays Bank Plc 1 North End Croydon Surrey **INDEPENDENT EXAMINER** Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF 3 ## **FOLLY'S END FELLOWSHIP TRUST** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2021** The trustees who are also directors of the charity for the purposes of the Companies Act present their report together with the financial statements of the charity for the year ended 31st December 2021. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, applicable law and the requirements of the Statement of Recommended Practice "Accounting and Reporting by Charities" applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1st January 2015) - (Charities SORP (FRS102)) and the Charities Act 2011. ## **Structure, Governance and Management** The charity is a company limited by guarantee and was formed on 15th April 2002. It is governed by its memorandum and articles of association. ## **Methods of Appointment or Election of Trustees** The management of the Company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. New Trustees are mentored by existing Trustees and training carried out through attendance on appropriate courses where considered necessary. ## **Risk Management** The Trust works on a general basis of risk awareness. We operate a management accounting system that allows good understanding of our financial affairs. The Trust has in place a programme to review all of its risks and continues to improve its methods of wider risk assessment. ## **Objectives and Activities for Public Benefit** The Charity's main object as set out in the memorandum and articles of association is to advance the Christian faith in accordance with the statement of beliefs in Croydon and in such other parts of the United Kingdom or the world as the Trustees may from time to time think fit and other such purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the charity. The principal aims of the Charity are the worship of God, the instruction of Christians, the care and Christian instruction of young people and children, the evangelisation of non-Christians, the relief of sickness and poverty and the advancement of the Christian faith generally. ## **Review of Activities** 2021 was another year of significant disruption to both activity and development of our planned new offering due to the Coronavirus Pandemic. Lockdowns continued until July 2021 with restrictions continuing until March 2022. During Lockdowns the day-to-day activities of the Trust remained reduced with our staff furloughed where necessary. Once the UK restrictions started to lift and life returned to nearer normal, we were finally allowed to view properties in person and our search for an appropriate nursery premises increased. We identified a large unused school premises to the south of Croydon which was for sale and our offer to purchase the site was accepted, subject to contract. We were considerably close to completion however, after having conducted a number of very positive feasibility studies for the site, the Trustees were forced to withdraw from the purchase due to the discovery of a covenant over the land which would have made the site unsuitable for a day nursery. It was a disappointment to the Trustees, and everyone involved in the project, that we were forced to withdraw at such a late stage. During the lock-down periods we took the opportunity to undertake a full review of the Trust’s policies and procedures, which included our banking and bank mandate arrangements. We also undertook a full review of our governing documents, with significant input from interested parties. We formulated a new mission to guide the Trust in its future work and the revision of our governing documents will reflect this. We have invested a great deal time and careful consideration in this process and together with our law firm, Mishcon de Reya, we have rewritten our governing documents. We are delighted to report that these documents have been agreed with the Charity Commission. We intend to adopt the new governing documents during 2022 and we are excited about the Trust’s future. We also completed the re-publishing of the Folly’s End’s teaching materials in digital format. This has been a long process, but the entire back catalogue is now re-launched and available as a Christian learning resource. The Folly’s End archive is a record of the ministry of Folly’s End Church and is a freely available resource in digital format– which may be of particular interest to those who have been involved in the ministry of the Church over it’s 35 year history. 4 FOLLYS E14D FELLOWSHIP TRIIST (A COIIP&lNY LDirrED BY •JIARAI(TEE) REPORT OF THE DIIIEcfoRS (C4wrtinued) VOR THE YEAR EMDED 31ST D￿EmBER 2021 Revlew ol Actswitlw (Lwumed) we a150 worked ￿ the completion and illustratith of Short seties of childrEn'5 bLwJks writiÈft by Dave Martee In the later years of his rninisty. We are plannbng to the of th¢* I￿kS in 2022. Flnaft¢i4 Review In 2021 we recorded a defiat of inoyne ¢)ver eXpen1*tu￿ ￿ £227,992 (2020". 5ufF4us of £1,704,384). Totsl reserves * 31st December 2021 4Yere £3,078,665 of whith £2,978 We￿ restricted ftjnds and £3.075.687 unrestricted. GolAg After rnaking appr￿mate enquiries. the Tru*ees have a reasonable exFectation that the Company has acSequatÈ resource5 to continue in operavonal existen￿ fur the foreseeaNe futsJre. For this rea￿n, they contlAue to adopt the going concern basis in p￿paring the financtal sraiements. Further der•ts regavding the athwts.on of the goino concern basis can be fouTrd in the accounting polides. R*5•r¥as Pollcy The Trust maSntains reserves ond investments wlmarily frx 5pedfic us4 *g. Iwibjing f[w￿. There 1$ no IntentiC￿ to build rve5 and Invesrments wlthout 5peafic immediate Plans for Futwe Periods At the time the Pandernic first st￿ck in eady 2020 we had just gold our buildi￿ in Central Croydon with the intention of ￿- Investtng in new prtrsthool educÈtyon and conftrerKe f￿lities. Our plans, and cLwuentJy the attivities of the Trust, have therefore been put on hold dudRg the various I￿kdOWn5 busness intemipb"cffi5 of 2020 and 2021. We were unfortunate to have to withdr&w from what we regarded as a very pF(xnisiry premises for our prtrschod projett during 2021 and despite cortsl¢leflng a number of further kWEbJe stes tfftants the end of the year. we were unat4e to identify a suitsble one by the year end. Thè Trust have fomulated a in (¢der tts seturE a l)uiSding artd we are sure we will be able move the project ft*rward In 2022. The Charitie5 Act and the Cornpanies Act req￿￿ the Bobrd of fnjstees to prepare financial #4tements foF eath financial year which give a true an¢ tsir view of the state of affairs of tt* charity a5 at the end of the fillancial year arTrd of the surplu5 or deficit of the tharity. In p￿paring those finanoal statements the 8oard is required to :_ select suitsble actyJnbno pol￿eS aTrJ then aooty them cort51sten￿y. mèke judgerrents and estimate5 that are reasonable and prudeftt. prEp6re the ftnènual Statements on the goill9 COr￿M basis urtess 1$ inapprDpriate to pregjme that the tharity 11 cDntinue in business and: state whether applicawe acctyjnting thAdards and stotements of recommended have t*en folk)w subject to any rnaterlal departutes di￿1£￿ed ey¥4ained in the finanoal stthrn￿ts. The trusttts are also restk)n4Ne fty mairtaining adequate xcounting Fe¢or¥Js wkn.ch disdose V4Tith reasomab¢e accuracy at any time the ffnanoal P￿lt10n of the charity and which are sufficient to show antl expkain tr￿ charlty's transacuons and enable them to ensure that the finan0￿ statements tomply with the COMpa￿e$ A(t 2006 and comply wtth reQ￿atIC￿lS Made under the Charilies Act. They a￿ also rewrt%ible for safeguardin9 the assets of the tharity and hen￿ for taknng reasonable steps for ihe pweventson and detecbon of fraud and otkn irre¢ularibes. The trustees are also responsible for the cortents of the tnjstees. ￿pOr( aThJ the resp￿￿[lIty of the Independent examin Sn relation ￿ the trustees. report is limited to examiniThJ Ihe ￿port and ensuriTrJ tha¢ on the tsce of the report. there are no IncoThsis￿fi0es with the ftgur25 disdosed in tr￿ firka￿al statements. These accounts have t)een in ac(*¥thn￿ with the w0v[s￿n$ Donations and Legacies
3a
Investment Income
3b
Charitable Activities
3c
Other Income
3d
Donated Services
9
**TOTAL**
**EXPENDITURE ON:**
Charitable Activities
4a
**TOTAL**
**NET INCOME/(EXPENDITURE)**
Transfers Between Funds
5
**OTHER RECOGNISED GAINS/(LOSSES)**
Gain on Sale of Fixed Asset
**NET MOVEMENT IN FUNDS**
**Reconciliation of funds:**
Total Funds Brought Forward
**TOTAL FUNDS CARRIED FORWARD**
**INCOME AND ENDOWMENTS FROM:**|Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2021
2020
£
£
£
£
£
24,288
-
-
24,288
4,134
57
-
-
57
-
18,666
-
-
18,666
35,691
-
-
-
-
600
-
-
-
-
-
**43,011**
**-**
**-**
**43,011**
**40,425**
271,003
-
-
271,003
881,382
**271,003**
**-**
**-**
**271,003**
**881,382**
**(227,992)**
**-**
**-**
**(227,992)**
**(840,957)**
300,000
(300,000)
-
-
-
**-**
-
-
2,545,341
**72,008**
**(300,000)**
**-**
**(227,992)**
**1,704,384**
3,003,679
300,000
2,978
3,306,657
1,602,273
**3,075,687**
**-**
**2,978**
**3,078,665**
**3,306,657**| |---|---| Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing. The notes on pages 8 to 16 form part of these financial statements. 6 FOLLfs END FELLOWSTrttP TRusr (A COMPANY LINrrED BY fjVARAPITEE) QMPANY NO.. 4416520 BALANCE SHEET S AT 31 DECEMBER 2021 UnrestriLted Regtrfcted 31-Dec•ll 31-D•c-20 Funds Funds Totsl Total Tangible Assets 17.645 17,645 25.207 CUrr￿t Assets Debtors & Prepaymenls Cash at Bank and in Hand Total (brrent As*ets 8,014 3 129 130 3 137 144 8,014 3 132 108 3 140 122 3 306 996 3 306 996 978 Cretlitor5: amourts falllng due within one year 79.102 79,102 25,546 NET CURRENT ASSETSI(LIABIUTIES) 3.058.042 2,978 3,061,020 3,281,450 TOTAL ASSETS less current liability.es 3.075.68? 978 3.074665 3.306.657 Creditors: amounts falllng due in [￿re than one year NEf ASSETS 3 075 687 978 J.078.665 3 306 657 Funds of the Ch¥ity General Funds Designat¥l Funds Re5tritted Funds 3.075.687 3,075,687 3,003.679 31)0.000 2,978 2,978 2,978 Total Funds 3.075.687 2.978 3 078 665 3 306 657 Dwectors. Respongibilitiu: The dlrectors are satlsfied that fDr the year endej on 31st t)￿•￿ber 2021 the tharitab￿ c￿nPanY wa$ emitled to exemption frorn the requlrement to obtain èn audrc under section 477 of the Companies Att 2006 and that no member or mernbers have required the company to obtain an audit of its ac£wnts for the year in question in acLY)rdance wlth section 476 of the ACL However. in accordance with 5ettion 145 of the Charities Att Zoll, the Kcounts have been examined by an Indèpendent Examiner wh052 report appears on page 17. The dirertors ackntswledye their reswnsibilty for comWyTng viith the rEquirements of the Companles Art 20Q6 with r85pert to actounling records and the preparaOon of acwnts. The accounts have been Prepared in atttsrdan￿ with the provislons In Part 15 of the Companle5 •£t 2006 applIca￿e to cornpanies subJett to the gnall ¢orT¥Sanies regime and in accordantr with the ￿nanCial Reportino Standard aprAlr2ble In the UK and Republic of Ireland (FRS1021 (effectlve l January 2015) - (Charibes SORP IFRS1021)- The directors acknimledge their responsibility for ensuring that the axnpany keep5 proper accounting records which 0)m￿Y wlth section 386 or the Act and fDr preparing financial ststements which give a true an¢J fvir view of the state of aftslrs of the company ￿ at the end of the financial year and if its profit and loss fr>r the finanoal year in accordance with the requirements of sethons 394 and 395 and which othen¥ise cornply wlih the requirements of the C4>mpanles Act 20D6 relatlng ro a￿oUnts, $0 tsr as apWicable to the company. Approved by the Dlrectors on the 4. 11. 2022 Signed on behalf by Director_ Print Narne.. MR D WILJJAMS ## **FOLLY'S END FELLOWSHIP TRUST** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021** ## **1. ACCOUNTING POLICIES** ## **Basis of Preparation** The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime and in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention. Advantage has been taken of Section 396(5) of The Companies Act 2006 to allow the format of the financial statements to be adapted to reflect the special nature of the charity's operation and in order to comply with the requirements of the SORP. The company has taken advantage of the exemption in Financial Reporting Standard No 1 from the requirement to produce a cash flow statement. Folly's End Fellowship Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes. ## **Preparation of accounts on a going concern basis** Preparation of the accounts is on a going concern basis. The Trustees are of the view that the level of reserves will support the charity going forward. The particular accounting policies adopted are set out below. ## **Income** All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shoWn in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. ## **Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, lnduding support costs involved in undertaking each activity. Direct costs attdibutable to a single activiiy are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. ## **Government Grants** Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred. 8 ## **FOLLY'S END FELLOWSHIP TRUST (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021** ## **1. ACCOUNTING POLICIES (Continued)** ## **Governance Costs** Include costs of the preparation and examination of statutory accounts, the costs of the Directors' meetings and cost of any legal advice to Directors on governance or constitutional matters. ## **Employee benefits** Short term benefits including holiday pay are recognised as an expense in the period in which the service is received. ## **Legal status of the charity** The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. ## **Donated Services and Facilities** These are only included in income (with an equivalent amount in expenditure) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received. ## **Pension Scheme** The charity operates a government backed defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme. The charity is under no further obligation to make any extra payments irrespective of how that pension fund performs. ## **Fixed Tangible Assets** Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on a reducing balance basis. Depreciation is provided on the following bases: |Fixtures and Fittings|30%| |---|---| |Improvements to Flat|30%| |Motor Vehicles|25%| |Freehold Property|Not provided| No depreciation is charged to freehold property as the property is maintained to such a standard that the estimated residual value is not less than cost. ## **Liabilities** Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. ## **Fund Accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charitable Company for parficular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 9 ## **FOLLY'S END FELLOWSHIP TRUST** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021** ## **2. TANGIBLE FIXED ASSETS** |Cost
01-Jan-21
Additions
Disposals
Cost at
31-Dec-21
Depreciation
01-Jan-21
Charge
Disposals
Depreciation at
31-Dec-21
Net Book Value
31-Dec-21
Net Book Value
31-Dec-20|Freehold
Improvements
Fixtures and
Motor Vehicles
**Total**
Property
to Flat
Fittings
£
£
£
£
£
-
-
142,420
23,753
166,173
-
-
-
-
-
-
-
-
-
-
-
-
142,420
23,753
166,173
-
-
139,468
1,498
140,966
-
885
6,677
7,562
-
-
-
-
-
-
140,353
8,175
148,528
**-**
**-**
**2,067**
**15,578**
**17,645**
**-**
**-**
**2,952**
**22,255**
**25,207**| |---|---| The annual commitments under non-cancelling operating leases and capital commitments are as follows: 31st December 2021: Nil 31st December 2020: Nil ## **3. INCOME** |**a) Donations and Legacies**
Grants Received - Other
Grants Received - HMRC Job Retention Scheme
**b) Investment Income**
Bank Interest
**c) Charitable Activities**
Costs Recharge
Early Years
Utilities Refund
Royalties
Tuition Fees|Unrestricted
Restricted
Funds
Funds
**TOTAL**
**TOTAL**
Church
Pre-School
**2021**
**2020**
£
£
£
£
-
-
-
2,500
24,288
-
24,288
1,634
**24,288**
**-**
**24,288**
**4,134**
57
-
57
-
**57**
**-**
**57**
**-**
7,620
-
7,620
-
-
-
-
31,706
10,601
-
10,601
-
445
-
445
-
-
-
-
3,985
**18,666**
**-**
**18,666**
**35,691**| |---|---| 10 ## **FOLLY'S END FELLOWSHIP TRUST** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021** |**3. INCOME**
**d) Other Income**
Contribution to Legal Fees
**4. EXPENDITURE**
**Notes**
**a) Charitable Activities**
Advertising & Publicity
Direct Project Costs (incl Archive Project)
Bank Charges and Interest
Building Repairs & Maintenance
Cleaning Costs
Compensation payments to Leaseholders
Computer and Internet
Council Tax & Rates
Depreciation Expense
Equipment Costs
Gifts & Donations
Insurance Costs
License & Subscriptions
Grants
*****
Office and General Administrative Expenses
Printing, Postage and Stationery
Salaries & Wages
**10**
Schools and Trips
Storage Costs
Sub Contractors Costs
**10**
Sundry Expenses
Telephone Costs
Travel & Subsistence
Utility Costs
Vehicle Expenses
Rent and Venue Hire
**Governance:**
Audit and Accountancy
Legal and Professional Fees|Unrestricted
Restricted
Funds
Funds
**TOTAL**
**TOTAL**
**2021**
**2020**
£
£
£
£
-
-
-
600
**-**
**-**
**-**
**600**
Unrestricted
Restricted
Funds
Funds
**TOTAL**
**TOTAL**
**2021**
**2020**
£
£
£
£
78
78
-
15,090
-
15,090
12,777
1,232
-
1,232
990
-
-
-
9,085
1,913
-
1,913
-
-
213,475
-
-
2,739
-
-
3,105
7,562
-
7,562
1,711
739
-
739
712
6,000
-
6,000
18,207
732
-
732
3,341
167
-
167
213
-
-
-
40,000
3,063
-
3,063
-
-
-
663
63,177
-
63,177
321,377
-
-
284
8,445
-
8,445
3,547
133,957
-
133,957
114,908
386
-
386
434
1,440
-
1,440
970
889
-
889
3,249
-
-
5,307
795
-
795
1,661
6,000
-
6,000
-
870
-
870
5,610
18,468
-
18,468
117,017
**271,003**
**-**
**271,003**
**881,382**| |---|---| ***** The charity made a payment to the trustee, Mr F Stonelake, during the previous year to reimburse him for a loan made to the charity many years ago that was not recorded in the financial statements of the charity. The Trustees agreed in principle to make the payment of £40,000 in their meeting dated 8 September 2020 pending legal advice and approval from the Charity Commission. The permission was forthcoming and the payment was ratified by the independent trustees on 11 December 2020. 11 ## **FOLLY'S END FELLOWSHIP TRUST** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021** ## **5. RESTRICTED FUNDS** |Church Centre, Complex Fund
Reachout Project
Church Centre, Complex Fund
Reachout Project
Preschool Fund|Balance
Balance
01-Jan-21
Income
Expenditure
Transfer
31-Dec-21
£
£
£
£
£
1,150
-
-
-
1,150
1,828
-
-
-
1,828
**2,978**
**-**
**-**
**-**
**2,978**
Balance
Balance
01-Jan-20
Income
Expenditure
Transfer
31-Dec-20
(incl gain on
sale of assets)
£
£
£
£
£
1,150
-
-
-
1,150
1,828
-
-
-
1,828
14,495
44,325
59,804
984
-
**17,473**
**44,325**
**59,804**
**984**
**2,978**
**THIS YEAR**
**LAST YEAR**| |---|---| The restricted funds are wholly represented by current assets. The Church Centre, Complex Fund is a long standing fund, the balance of which has been held for over 10 years. These monies were held for the purpose of funding of separate Church, Centre and Complex sites. The funds continue to be held with that long term aim. The Reachout Project Fund is a long standing fund, the balance of which has been held for over 10 years. It represents monies received from members specifically for the "Reachout" project for the support of local homeless people. ## **6. DESIGNATED FUNDS** |Education Fund
Education Fund|Balance
Balance
01-Jan-21
Income
Expenditure
Transfers
31-Dec-21
£
£
£
£
£
300,000
-
-
(300,000)
-
**300,000**
**-**
**-**
**(300,000)**
**-**
Balance
Balance
01-Jan-20
Income
Expenditure
Transfers
31-Dec-20
£
£
£
£
£
300,000
-
-
-
300,000
**300,000**
**-**
**-**
**-**
**300,000**
**THIS YEAR**
**LAST YEAR**| |---|---| The education fund represents the funds specifically raised to purchase a property in Selhurst Road. They have been shown as a separate designated fund since the School property was sold in 2015. The Trustees have agreed to lift the designation at the end of this financial year and transfer the funds back to the general unrestricted fund, in anticipation of the purchase of a property which is due to complete in 2022. 12 ## **FOLLY'S END FELLOWSHIP TRUST** ## **(A COMPANY LIMITED BY GUARANTEE)** **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021** ## **7. DEBTORS AND PREPAYMENTS** |HMRC PAYE and NI Overpaid
Salaries Overpaid *
Trade Debtors|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Dec-21**
**31-Dec-20**
£
£
**£**
**£**
61
-
61
-
333
-
333
-
7,620
-
7,620
-
**8,014**
**-**
**8,014**
**-**| |---|---| * During the financial year, a prudent estimate of net salaries payable each month had to be made in advance, whilst the banking mandate was being updated, and before the payroll for each month had been calculated. This meant that on occasions, small discrepancies occurred. At the end of the financial year, employee net salaries had been overpaid by a total of £332.66. This amount was repaid to the charity during the following financial year. ## **8. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Note
Trade Creditors
Other Creditors
Accruals and Deferred Income
VAT Liability
Backdated pay outstanding|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Dec-21**
**31-Dec-20**
£
£
**£**
**£**
9,828
-
9,828
18,904
1,572
-
1,572
1,009
870
-
870
5,610
-
-
-
23
66,832
-
66,832
-
**79,102**
**-**
**79,102**
**25,546**| |---|---| ## **9. DONATED SERVICES AND FACILITIES** The Trust received the following donated services during the year: |Paid by CEL on behalf of the Charity:
Premises upkeep and maintenance
Staff time (reception and caretaking services)
Executive leadership|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Dec-21**
**31-Dec-20**
£
£
**£**
**£**
-
**-**
-
3,000
-
**-**
-
12,000
-
**-**
-
12,000
**-**
**-**
**-**
**27,000**| |---|---| 13 ## **FOLLY'S END FELLOWSHIP TRUST (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021** ## **10. STAFF COSTS** **----- Start of picture text -----**
|||| |---|---|---| |2021|2020| |TOTAL|TOTAL| |£|£| |Gross Wages & Salaries|59,654|296,504| |Social Security|1,815|23,994| |Social Security (2020 liability)|438|-| |Pension Contributions|1,270|879| |63,177|321,377| **----- End of picture text -----**
Included in wages and salaries is £0 (2020: £19,154) paid in respect of redundancy payments to four individuals who were employees of the pre-school which closed operations in 2020. The average monthly head count of full-time equivalent employees (including casual and part-time staff) during the year were as follows: **----- Start of picture text -----**
|||| |---|---|---| |2021|2020| |Project Staff|1|7| |Administrative Support|2|1| **----- End of picture text -----**
No employees received emoluments in excess of £60,000 (2020: None). Staff are paid through the PAYE system and some contractors are also paid on a self employed basis. ## **Key Management Personnel** The key management personnel are considered to be the Trustees, the CEO and Ministry Leaders. Some key management personnel are paid through the PAYE system and some are self employed contractors engaged for finance and ministry leadership work. The aggregate remuneration (which includes employer national insurance and employer pension contributions) and self employed contractor fees of the key management personnel of the charity (including payments to Trustees, which are detailed in note 11 below) amounted to £194,282. This also includes a liability for unpaid backdated pay for the sum of £66,832 as explained below. **----- Start of picture text -----**
|||| |---|---|---| |Amounts paid through the PAYE system|60,325| |Amounts paid as Self employed contractors|133,957|see breakdown below| |194,282| |Subcontractors paid on a self employed basis| |Amount paid to Key Management Personnel|27,125|for financial services rendered| |Amount paid to Key Management Personnel|40,000|for leaders fees| |Amount paid to Key Management Personnel|66,832|for leaders fees (accrued amount outstanding)| |133,957| |Amounts paid to Other Subcontractors|11,950|for project work| **----- End of picture text -----**
The founders of the charity, David and Rosina Markee, either did not receive a salary or had a reduced payment for over a decade for their role as the founders and pastors of the church. This was because the church had insufficient funds. David and Rosina both played a significant and vital part in enabling the Trust to continue It's mission during this period and it is the firm view of The Trustees, that without their input the Trust would not have survived; The Trust remain incredibly grateful to David and Rosina for their sacrifices and dedication over many years. The Estate of Rosina Markee received a salary back-payment that was approved by the Trustees, following legal advice, to reflect the years of non-payment or reduced salary. The total underpayment covering this period that was paid in 2021 amounted to £40,000. At the end of this financial year, the amount outstanding to the Estate of Rosina Markee in respect of unpaid and backdated pay was £66,832. This is shown as a creditor in note 8. 14 ## **FOLLY'S END FELLOWSHIP TRUST (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021** ## **11. TRUSTEES AND OTHER RELATED PARTIES** During the year, one or more Trustees has been paid remuneration or has received other benefits from an employment or contract for services with the Company. The remuneration relates to the administrative and financial services provided to the charity and not for acting as trustee. The value of Trustees' remuneration, contract for services and other benefits was as follows: |Name of trustee
F Stonelake
D Williams *|Legal authority
Governing document
Governing document|Remuneration
Contract
2021
2020
for services
TOTAL
TOTAL
£
£
£
£
5,000
0
5,000
6,000
0
27,125
27,125
0
5,000
27,125
32,125
6,000
Amounts paid or benefit value| |---|---|---| * Payments were made to Avron Limited, a company of which Trustee D Williams is a director. At the start of the year there were loans outstanding of £1,203 from Conference Events Limited, a company of which Trustee D Williams is a director. A total amount of £497 was repaid against the loan during 2021, leaving a balance of £706 owing to Conference Events Limited at 31st December 2021. A related party to the CEO was paid £8,750 for their services rendered in relation to project work undertaken. Office rental for 2021 totalling £4,200 was also paid following thorough research undertaken by the Trustees regarding available office space, whereby they deemed this arrangement financially advantageous and in the charity's best interests. ## **12. STATEMENT OF FUNDS** ## **Statement of Funds - current year** |General funds
Designated funds
Education Fund
Restricted funds
Church Centre, Complex Fund
Reachout Project|Balance
Balance
01-Jan-21
Income
Expenditure
Transfers
Gain/Loss
31-Dec-21
£
£
£
£
£
£
3,003,679
43,011
(271,003)
300,000
-
3,075,687
300,000
-
-
(300,000)
-
-
1,150
-
-
-
-
1,150
1,828
-
-
-
-
1,828| |---|---| ||**3,306,657**
**43,011**
**(271,003)**
**-**
**-**
**3,078,665**| |**Statement of Funds - prior year**
General funds
Designated funds
Education Fund
Restricted funds
Church Centre, Complex Fund
Reachout Project
Preschool Fund|Balance
Balance
01-Jan-20
Income
Expenditure
Transfers
Gain/Loss
31-Dec-20
£
£
£
£
£
£
1,284,800
3,100
(821,578)
(984)
2,538,341
3,003,679
300,000
-
-
-
-
300,000
1,150
-
-
-
-
1,150
1,828
-
-
-
-
1,828
14,495
37,325
(59,804)
984
7,000
-| ||**1,602,273**
**40,425**
**(881,382)**
**-**
**2,545,341**
**3,306,657**| 15 ## **FOLLY'S END FELLOWSHIP TRUST** ## **(A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021** ## **13. SUMMARY OF FUNDS** ## **Summary of funds - current year** ||Balance|||||Balance| |---|---|---|---|---|---|---| ||01-Jan-21|Income|Expenditure|Transfers|Gain/Loss|31-Dec-21| ||£|£|£|£|£|£| |General funds|3,003,679|43,011|(271,003)|300,000|-|3,075,687| |Designated funds|300,000|-|-|(300,000)|-|-| |Restricted funds|2,978|-|-|-|-|2,978| ||**3,306,657**|**43,011**|**(271,003)**|**-**|**-**|**3,078,665**| |**Summary of funds - previous year**||||||| |General funds|Balance
01-Jan-20
£
1,284,800|Income
£
3,100|Expenditure
£
(821,578)|Transfers
£
(984)|Gain/Loss
£
2,538,341|Balance
31-Dec-20
£
3,003,679| |Designated funds|300,000|-|-|-||300,000| |Restricted funds|17,473|37,325|(59,804)|984|7,000|2,978| ||**1,602,273**|**40,425**|**(881,382)**|**-**|**2,545,341**|**3,306,657**| ## **14. ANALYSIS OF NET ASSETS BETWEEN FUNDS Analysis of net assets between funds - current year** |Tangible Fixed Assets
Current Assets
Creditors due within one year|Unrestricted
Designated
Restricted
**TOTAL**
Funds
Funds
Funds
**2021**
£
£
£
£
17,645
-
-
17,645
3,137,144
-
2,978
3,140,122
(79,102)
-
-
(79,102)
**3,075,687**
**-**
**2,978**
**3,078,665**| |---|---| ## **Analysis of net assets between funds - prior year** |Tangible Fixed Assets
Current Assets
Creditors due within one year|Unrestricted
Designated
Restricted
**TOTAL**
Funds
Funds
Funds
**2020**
£
£
£
£
25,207
-
-
25,207
3,004,018
300,000
2,978
3,306,996
(25,546)
-
-
(25,546)
**3,003,679**
**300,000**
**2,978**
**3,306,657**| |---|---| ## **15. POST BALANCE SHEET EVENT** The charity completed the purchase of a property located in Woodcote Valley Road, Purley to house a new Christian nursery. The purchase price paid by the charity was £966,500 and the sale completed in June 2022. 16 ## **INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS** I report to the trustees on my examination of the accounts of the above charity for the year ended 31st December 2021. As the charity's trustees (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 Charities Act 2011 (“the Act”). ## **Responsibilities and basis of report** I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect: - the accounting records were not kept in accordance with section 130 of the Charities Act; or - · the accounts did not accord with the accounting records; or - the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. > Signed: FCIE > Date: 11th January 2023 Independent Examiners Ltd Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF 17