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2021-03-31-accounts

Company Registration Number 04310843

Charity Registration Number 1092693

KC OUTREACH, SELBY ANNUAL REPORT AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

KC OUTREACH, SELBY

(a company limited by guarantee)

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS

Pages Report of the Trustees/Directors 1 to 3 Independent Examiner’s Report to the Trustees Statement of Financial Activities/Summary Income and Expenditure Account Balance Sheet Notes to the Financial Statements 7 to 12

Page 1

KC OUTREACH, SELBY (a company limited by guarantee)

REPORT OF THE TRUSTEES/DIRECTORS FOR THE YEAR ENDED 31 MARCH 2021

The directors and trustees present their report and unaudited financial statements for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing documents, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standards applicable in the UK and Republic of Ireland published in October 2019.

Trustees of the Charity

The directors of the charitable company are its trustees for the purposes of charity law. Details of the trustees who have served during the year and since the year end can be found on page 3.

OBJECTS AND ACTIVITIES

The charity’s principal objects, as set down in its governing instrument, are:

  1. To advance the Christian faith.

  2. To relieve people in need, hardship or distress.

  3. To educate and assist young people, through their leisure time activities, so as to develop their physical, mental and spiritual capacities.

  4. To advance education in family life, marriage and family relationships.

  5. To advance Christian religious education and training.

The trustees regularly review the objectives and activities of the charity and, as part of this review, have considered the Charity Commission’s general guidance on public benefit and, in particular, its supplementary guidance on the advancement of religion for the public benefit.

ACHIEVEMENTS AND PERFORMANCE

The charity continues to operate and run a local church. The trustees consider that the activities, as summarised below, provide benefit both to active members of the church and the wider community within Selby and the surrounding area:

  1. Arranging, assisting and supporting church members in attending conferences and training events.

  2. Further development of the pastoral/care network involving individual church members on a voluntary basis.

  3. Having sole occupancy of the Selby United Reform Church building situated in Selby town centre.

  4. Participating in the Selby foodbank initiative supported by Churches Together in Selby.

  5. Operating preparation for marriage and marriage courses.

  6. Supporting two high schools and several infant/junior schools in the Selby area by providing resources and advice to enable them to follow the national curriculum in religious education.

  7. Providing an educational experience for circa 400 key stage 1 and key stage 2 pupils from several local primary schools, consisting of a dramatic enactment of the nativity, through a walk-through set and a range of appropriate craft activities.

  8. Providing individual support to primary children in a local school, in partnership with the charity TLG of Hope House, Bradford.

  9. In addition to the above, providing regular Christian assemblies and occasional Religious Education lessons at a number of local primary schools.

  10. Providing counselling and support to women and men who are facing pregnancy-related problems, including unplanned pregnancy, post-abortion, adoption, miscarriage and stillbirth. Offering impartial advice, information and support regarding pregnancy choices and pregnancy loss in conjunction with another local charity ‘Reflect’.

Page 2

KC OUTREACH, SELBY (a company limited by guarantee)

REPORT OF THE TRUSTEES/DIRECTORS FOR THE YEAR ENDED 31 MARCH 2021

  1. Adapting to Lockdown - we hosted meetings on Zoom to avoid meeting in person. We also adapted our building so that government recommendations regarding meeting in public spaces and social distancing could be observed. We also moved to two meetings on Sunday morning to allow for more space for visiting the building.

The trustees are grateful for the efforts of volunteers and are pleased with the overall outcome of the above in terms of meeting the charity’s stated objects. They hope to see further growth and development of the organisation within the foreseeable future.

FINANCIAL REVIEW

In the year under review, the charity made an overall surplus of £26,744 (2020: surplus £7,633) comprising a surplus of £947 (2020: deficit £1,552) on restricted projects, and a surplus on unrestricted activities for the year of £25,797 (2020: surplus £9,185).

The charity’s total net assets had increased from £76,179 at 31 March 2020 to £102,923 at 31 March 2021 including net liquid funds of £100,610 (31 March 2020: £73,089).

It is the aim of the trustees to maintain cash backed unrestricted funds, which are the free reserves of the charity, at the greater of £16,000 or three months average gross expenditure, excluding capital expenditure, across those funds. This objective was exceeded at both 31 March 2020 and 31 March 2021.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

KC Outreach, Selby is a company limited by guarantee and not having a share capital, incorporated in England and Wales. It is governed by a Memorandum and Articles of Association dated 25 October 2001. It is also a charity registered with the Charity Commission. The members of the charitable company guarantee to contribute an amount not exceeding £10 to the assets of the company in the event of winding up during their period of membership and within one year of their ceasing to be a member.

Appointment of Trustees

New trustees are appointed from time to time at the discretion of the existing trustees, such that the number of trustees is not less than three.

Trustees’ Induction and Training

Trustees are already familiar with the work of the charity as they are drawn from within the church membership/ congregation or from other similar churches within the regional church network. The trustees have induction procedures to ensure that new trustees understand their roles and obligations. As part of these procedures, trustees are encouraged to attend appropriate internal/external training events to facilitate the understanding of their roles.

Organisation

The management and administration of the charity is under the control of the trustees who meet two to three times per year. Day to day operational matters are delegated to the church leader.

Related Parties

The church operates under the oversight/direction of Regions Beyond (a charitable organisation which oversees church formation and training initiatives). There are also close links with other churches in the region who are members of the Regions Beyond family of churches.

Risk Management

The trustees continue to consider and review the major financial, operational and compliance risks borne by the charity and have systems in place to monitor those risks and to take action where necessary to mitigate them.

Page 3

KC OUTREACH, SELBY (a company limited by guarantee)

REPORT OF THE TRUSTEES/DIRECTORS FOR THE YEAR ENDED 31 MARCH 2021

REFERENCE AND ADMINISTRATIVE INFORMATION

Registered Name: KC Outreach, Selby is the registered name of Kings Church Selby.
Company Registration No: 04310843
Charity Registration No: 1092693
Registered Office: 41-45 Yarm Lane
Stockton-on-Tees
TS18 3EA
Church Address: New Lane
Selby
YO8 4QB
Trustees: Mr. J. Lester
Mr. B. Luckins
Mr. H. Clarke
Mr. R.R. Gill (resigned 30.11.20)
Mr. P. Gray
Mr. C.P. Seel (appointed 30.11.20)
Company Secretary: Mr. J. Lester
Church Leader: Mr. D.J. Ward
Independent Examiner: Mrs. L. Dickson FCA
JBC Accountants Limited
3B Lockheed Court
Preston Farm
Stockton-on-Tees
TS18 3SH
Bankers: Virgin Money
16 Market Cross
Selby
North Yorkshire
YO8 0NU
Solicitors: Lawson Lewis & Co.
37 Brassey Avenue
Hampden Park
Eastbourne
BN22 9QD

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the trustees on 12 November 2021 and signed on their behalf by:

J. LESTER Trustee

Page 4

Independent Examiner’s Report to the Trustees of KC Outreach, Selby

Independent examiner’s report to the trustees of KC Outreach, Selby

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

Responsibilities and basis of report

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

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

Independent examiner’s statement

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

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.

L. Dickson

Mrs Lynne Dickson FCA JBC Accountants Limited Chartered Accountants 3B Lockheed Court Preston Farm Stockton on Tees TS18 3SH

Date: 16 November 2021

Page 5

KC OUTREACH, SELBY

(a company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (incorporating Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Funds Unrestricted Funds Restricted Funds Total Funds
Notes 2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
INCOME
Charitable activities:
Operation of a local church 2 93,816 85,175 4,853 9,496 98,669 94,671
Other income 445 1,845 - 315 445 2,160
___ ___ __ _ ___ ___
TOTAL INCOME 94,261 87,020 4,853 9,811 99,114 96,831
======== ======== ======= ====== ======== ========
EXPENDITURE
Charitable activities 3 68,464 77,835 3,906 11,363 72,370 89,198
___ ___ _ __ ___ ___
TOTAL EXPENDITURE 68,464 77,835 3,906 11,363 72,370 89,198
======== ======== ====== ======= ======== ========
Net income/(expenditure)
for the year 4 25,797 9,185 947 (1,552) 26,744 7,633
Transfer between funds (110) - 110 - - -
___ _ _ __ __ _
Net movement in funds 25,687 9,185 1,057 (1,552) 26,744 7,633
Reconciliation of funds:
Total funds brought forward 11 75,910 66,725 269 1,821 76,179 68,546
____ ___ _ _ ____ ___
Total Funds Carried Forward 11&12 101,597 75,910 1,326 269 102,923 76,179
========= ======== ====== ====== ========= ========

The Statement of Financial Activities includes all gains and losses recognised in the year.

All incoming resources and resources expended derive from continuing activities.

The notes on pages 8 to 12 form part of these financial statements

Page 6

KC OUTREACH, SELBY (a company limited by guarantee) Company Registration Number 04310843

BALANCE SHEET 31 MARCH 2021

2021 2020
Notes £ £ £ £
FIXED ASSETS
Tangible assets 8 2,313 3,090
CURRENT ASSETS
Debtors 9 18,604 17,784
Cash at bank and in hand 92,761 67,521
_____ ___
111,365 85,305
CREDITORS: Amounts falling due
within one year 10 (10,755) (12,216)
_____ ___
NET CURRENT ASSETS 100,610 73,089
_____ ___
TOTAL ASSETS LESS CURRENT LIABILITIES 102,923 76,179
========== ========
FUNDS 11 & 12
Unrestricted funds 101,597 75,910
Restricted funds 1,326 269
_____ ___
102,923 76,179
========== ========

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

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

The trustees acknowledge their responsibilities for:

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

These financial statements were approved by the trustees on 12 November 2021 and are signed on their behalf by:

J. LESTER

Trustee

The notes on pages 8 to 12 form part of these financial statements

Page 7

KC OUTREACH, SELBY (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

(a) General Information and Basis of Preparation

KC Outreach, Selby is a private company limited by guarantee registered in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page 3 of these financial statements. The nature of the charity’s operations and principal activities are the operation of a local church.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Income Recognition

All income is recognised once the charity has entitlement to income, there is sufficient certainty of receipt and it is probable that the income will be received, and the amount of income can be measured reliably.

Grants and Donations

Where donors specify that grants or donations are for a particular restricted purpose, which does not amount to pre-conditions regarding entitlement, the income is included in incoming reserves within restricted funds when received.

(c) Resources Expended

Resources expended are recognised in the Statement of Financial Activities on an accruals basis, inclusive of VAT. Individual costs are allocated between the various headings in the Statement of Financial Activities by reference to their underlying nature or reason for which those costs were incurred, on an estimated percentage basis.

(d) Unrestricted and Restricted Funds

Unrestricted funds comprise income received or generated by reference to the general objects of the charity without further specified purpose. Such funds may however be designated by the trustees for specific purposes from time to time.

Restricted funds are those donated for a specified purpose as laid down by the donor or as the result of a specific appeal or application. Such funds are kept separate from the unrestricted funds of the charity and only related expenditure is charged against them.

Page 8

KC OUTREACH, SELBY (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (Continued)

(e) Tangible Fixed Assets and Depreciation

Tangible fixed assets are capitalised and depreciated at the following rates, so as to write off each asset over its estimated useful life:

Fixtures and equipment - 25% reducing balance

(f) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(g) Cash at Bank and in Hand

Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(h) Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(i) Pension Costs

Contributions, which are payable into the personal pension plans of individual members of staff, are charged to the Statement of Financial Activities in the period to which they relate.

(j) Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with levels of reserves for the charity to be able to continue as a going concern.

2. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted Funds Unrestricted Funds Restricted Funds Total Funds
2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
Gift aid offerings 80,101 69,198 3,153 7,088 83,254 76,286
Non-gift aid offerings 13,715 15,977 1,700 2,408 15,415 18,385
___ ___ _ _ ___ ___
93,816 85,175 4,853 9,496 98,669 94,671
======== ======== ====== ====== ======== ========

Page 9

KC OUTREACH, SELBY (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. EXPENDITURE ON CHARITABLE ACTIVITIES

Unrestricted Funds Unrestricted Funds Restricted Funds Restricted Funds Total Funds
2021 2020 2021 2020 2021 2020
Costs directly allocated to activities £ £ £ £ £ £
Staff costs 45,036 41,501 - - 45,036 41,501
Staff expenses 2,084 4,270 - - 2,084 4,270
Room hire 4,050 6,900 - - 4,050 6,900
Light and heat 2,453 2,902 - - 2,453 2,902
Evangelism and outreach 1,628 3,045 995 115 2,623 3,160
Conferences and training (440) 1,552 - - (440) 1,552
Speaker and guest gifts - 490 - - - 490
Other giving 4,200 4,604 2,911 11,084 7,111 15,688
Insurances and licences 2,303 1,896 - - 2,303 1,896
Children’s work 355 988 - - 355 988
Office administration and stationery 770 397 - - 770 397
Repairs and renewals 185 367 - - 185 367
Sundry expenses 287 334 - 95 287 429
Depreciation 777 1,035 - - 777 1,035
___ ___ _ ___ __ ___
63,688 70,281 3,906 11,294 67,594 81,575
Governance costs
Accountancy and independent examination 4,776 7,410 - - 4,776 7,410
(including £120 over-provision re prior year
(2020: £1,980 under-provision))
Bank charges - - - 69 - 69
Trustee expenses - 144 - - - 144
___ ___ _ ___ ___ ___
Total Expenditure on Charitable Activities 68,464 77,835 3,906 11,363 72,370 89,198
======== ======== ====== ======== ======== ========

4. NET INCOMING RESOURCES

This is stated after charging:

2021 2020
£ £
Staff costs (note 5) 45,036 41,501
Trustees’ expenses - 144
Depreciation (note 8) 777 1,035
Independent Examiner’s fees 336 330
========= =========

5. STAFF AND STAFF COSTS

Throughout the year under review, the charity employed three members of staff (2020: three) with aggregate emoluments of £45,036 (2020: £41,501) as follows:

emoluments of £45,036 (2020: £41,501) as follows:
2021 2020
£ £
Gross salaries 43,040 39,560
Employer’s national insurance contributions - -
Employer’s pension contributions 1,996 1,941
___ ___
45,036 41,501
======== ========

Total remuneration paid in respect of Key Management Personnel during the year was £43,996 (2020: £40,649).

Page 10

KC OUTREACH, SELBY (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. PENSION COSTS

The pension costs of £1,996 (2020: £1,941) in the year represent payments due to the defined contribution pension schemes operated in the names of the church leader and his wife. At the balance sheet date, contributions of £116 (2020: £83) were outstanding.

7. TAXATION

The company is exempt from corporation tax on income derived from its charitable activities.

8. TANGIBLE FIXED ASSETS

8. TANGIBLE FIXED ASSETS
Fixtures and
Equipment
£
COST
At beginning of year 26,366
Additions -
Disposals -
___
At end of year 26,366
========
DEPRECIATION
At beginning of year 23,276
Charge for year 777
Adjustment on disposal -
___
At end of year 24,053
========
NET BOOK VALUE
At beginning of year 3,090
=======
At end of year 2,313
=======
9. DEBTORS
2021 2020
£ £
Gift Aid tax recoverable 18,129 17,218
Other debtors and prepayments 475 566
___ ___
18,604 17,784
======== ========
10. CREDITORS: Amounts falling due within one year
2021 2020
£ £
Sundry creditors and accruals 10,755 10,848
Taxation and social security - 1,368
___ ___
10,755 12,216
======== ========

Page 11

KC OUTREACH, SELBY (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11. STATEMENT OF FUNDS

STATEMENT OF FUNDS
Transfer
At between At
1.4.20 Income Expenditure Funds 31.3.21
£ £ £ £ £
Unrestricted Funds 75,910 94,261 68,464 (110) 101,597
======== ======== ======== ===== ==========
Restricted Funds
Regions Beyond Church,
Pakistan 269 3,868 2,911 - 1,226
Regions Beyond - 100 - - 100
Laptops for Schools - 885 995 110 -
______ __ __ ______ __
Total Restricted Funds 269 4,853 3,906 110 1,326
===== ======= ======= ===== =======
Total Funds 76,179 99,114 72,370 - 102,923
======== ======== ======== ===== ==========

Restricted Funds

Regions Beyond Church, Pakistan - Danish, the Pastor of a Regions Beyond Church in Lahore, Pakistan, as a Christian, was repeatedly denied promotion in his work, which was at a very basic pay level. He was then made redundant and became a full-time Church Pastor and church members have pledged to support him financially by covering his ongoing wages costs.

Regions Beyond - Regions Beyond is a diverse family of churches joined in apostolic partnership. The organisation is committed to planting and strengthening churches across the nations. A gift from a church member in March 2021 was still due to be paid across at the year end.

Laptops for Schools - church members made donations which were for the purchase of laptops to support a local school during the Coronavirus pandemic. The balance of the costs was met from general funds of the church.

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Restricted
Funds Funds Total
£ £ £
Tangible fixed assets 2,313 - 2,313
Cash at bank and in hand 91,435 1,326 92,761
Other net current assets 7,849 - 7,849
_____ __ _____
101,597 1,326 102,923
========== ======= ==========

13. CONTROLLING PARTY

Throughout the current and previous year, the charity was under the control of the Board of Trustees.

Page 12

KC OUTREACH, SELBY (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. TRANSACTIONS WITH TRUSTEES AND CONNECTED PERSONS

The following payments to trustees have been made in accordance with the governing document of the charitable company:

J. Lester is a director in Baines Jewitt, the firm of accountants which provide accountancy, payroll, trustee and secretarial services to the charity. The financial statements reflect annualised charges of £4,440 (2020: £7,080) for the provision of such services, including £nil (2020: £480) for special/non-recurring work and an overprovision in the sum of £120 (2020: under-provision £1,980) by reference to work completed in the prior year.

R. Gill was reimbursed expenses of £nil (2020: £71) and B. Luckins was reimbursed expenses of £nil (2020: £74) for attendance at trustees’ meetings.

During the year under review, trustees and other related parties made unrestricted gifts to the charity totalling £15,785 (2020: £15,170).