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2020-12-31-accounts

Charity Registration No. 1093931

Company Registration No. 4490276 (England and Wales)

KINMEL BAY CHURCH

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

KINMEL BAY CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dr E R Coulton Mrs J A Foden Mr W C Hammons Secretary Dr E R Coulton Charity number 1093931 Company number 4490276 Principal address Kinmel Bay Church St Asaph Avenue Kinmel Bay LL18 5EY Registered office 16 Crugan Avenue Kinmel Bay LL18 5DG Independent examiner Christopher Henderson BSc BFP FCA Unit 32, Llys Edmund Prys St Asaph Business Park St Asaph Denbighshire LL17 0JA Bankers Lloyds Bank plc 22 Mostyn Street Llandudno Conwy LL30 2RU

KINMEL BAY CHURCH

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 14

KINMEL BAY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and articles of association , the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The charity's objective continues to be the advancement of the Christian faith and the relief of need and distress in Kinmel Bay and elsewhere.

The trustees ensured that the church continued to benefit the community holistically by providing spiritual, social and practical help and advice. Regular opportunities are provided for all ages to explore the Christian faith in both formal and informal non-confrontational ways.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

From mid-March 2020 many activities were necessarily restricted in view of the coronavirus pandemic but the

following activities continued:

Achievements and performance

Church business

The trustees continued to review all aspects of the church's management.

In the absence of a pastor the Associate Pastor, trustees, church employees and volunteers took responsibility for the ongoing activities of the charity.

The Children & Families Worker (full-time), Associate Pastor (2 days), Administrator (quarter-time) and contracted Outreach Worker (quarter-time) continued to fulfil their roles satisfactorily.

The search for a new pastor was put on hold in view of the coronavirus pandemic.

The Trainee Youth and Children's Worker completed her second year university course and church placements satisfactorily.

KINMEL BAY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Financial review

The trustees are pleased to report that the performance of the charity this year has been most satisfactory. The church was able to continue to fund two and a half full-time equivalent workers plus a trainee youth worker from either on-going income or designated funds.

The employed staff continued to work throughout the pandemic and no furlough arrangements were

necessary.

The ministry teams of the Charity were able to adhere to their budget from the General Fund, set after a comprehensive review at a total of £102,000. Several were under budget because of the effects of the pandemic on their activities.

The church has made charitable donations to a variety of needy causes throughout 2020 amounting to 23% of total church income (excluding Building Fund Income).

The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels combined with an annual review of the controls over financial systems will provide sufficient resources in the event of adverse conditions.

Structure, governance and management

The charity is a company limited by guarantee and is therefore governed by a memorandum and articles of association .

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Dr E R Coulton Mrs J A Foden Mr W C Hammons Mrs D S Gilman (Resigned 28 May 2021)

The trustees will consider the appointment of new trustees as and when the need arises.

A policy to cover the recruitment and appointment of trustees was agreed 20th June 2020.

None of the trustees has any beneficial interest in the company.

The charity is organised so that the trustees meet regularly to manage its affairs. The trustees and members of the charity donate their time and efforts voluntarily.

Future developments

The main prospective issue for 2021 is advertising for then interviewing and appointing a new pastor. The timing is dependent upon the easing of coronavirus restrictions

The trustees' r eport was approved by the Board of Trustees.

Mrs J A Foden

Trustee Dated: 22 September 2021

KINMEL BAY CHURCH

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF KINMEL BAY CHURCH

I report to the trustees on my examination of the financial statements of Kinmel Bay Church (the charity) for the year ended 31 December 2020.

Responsibilities and basis of report

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

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable 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 that in any material respect:

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 financial statements to be reached.

Christopher Henderson BSc BFP FCA

Unit 32, Llys Edmund Prys St Asaph Business Park St Asaph Denbighshire LL17 0JA

Dated: 22 September 2021

KINMEL BAY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
117,980
20,162
Investments
4
5,120
-
Total income
123,100
20,162
Expenditure on:
Charitable activities
5
18,490
21,394
Other
8
76,346
-
Total resources
expended
94,836
21,394
Gross transfers
between funds
-
-
Net income/(expenditure)
for the year/
Net movement in funds
28,264
(1,232)
Fund balances at 1
January 2020
256,606
591,276
Fund balances at 31
December 2020
284,870
590,044		 TotalUnrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
138,142
109,539
23,526
5,120
4,905
-
143,262
114,444
23,526
39,884
21,179
20,926
76,346
93,787
45
116,230
114,966
20,971
-
(6,317)
6,317
27,032
(6,839)
8,872
847,882
263,445
582,404
874,914
256,606
591,276		 Total
2019
£
133,065
4,905
137,970
42,105
93,832
135,937
-
2,033
845,849
847,882

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

KINMEL BAY CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
12
Unrestricted funds
Designated funds
13
General unrestricted funds		 2020
£
5,282
138,581
143,863
(4,383)
252,129
32,741		 £
735,434
139,480
874,914
590,044
284,870
874,914		 2019
£
6,161
112,253
118,414
(5,966)
240,859
15,747		 £
735,434
112,448
847,882
591,276
256,606
847,882

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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.

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

The financial statements were approved by the Trustees on 22 September 2021

Mrs J A Foden Trustee

Company Registration No. 4490276

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Kinmel Bay Church is a private company limited by guarantee incorporated in England and Wales. The registered office is 16 Crugan Avenue, Kinmel Bay, LL18 5DG.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and "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)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Expenditure

Resources expended are included in the Statement of Financial Activities on an accrual basis, inclusive of any VAT which cannot be recovered. Expenditure which is directly attributable to specific activities has been included in these cost categories. Where costs are attributable to more than one activity they have been apportioned across the cost categories on a basis consistent with the use of these resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings Nil Furniture and equipment 25% straight line basis Investment Property Nil

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12 Fund raising costs

Fund raising expenditure comprises costs incurred in inducing people and organisations to contribute financially to the charity's work. Theses include the cost of advertising for donations and the staging of special fund raising events.

1.13 Expenditure on management and administration of the charity

Administration expenditure includes all expenditure not directly related to the charitable activity or fund raising ventures. This includes costs and maintenance of the charity's properties together with office and other administrative expenditure.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
117,980
20,162
Investments
Bank interest and rent		 TotalUnrestricted
Restricted
Total
funds
funds
2020
2019
2019
2019
£
£
£
£
138,142
109,539
23,526
133,065
UnrestrictedUnrestricted
funds
funds
2020
2019
£
£
5,120
4,905

4 Investments

5 Charitable activities

Charitable activities
Analysis by fund
Unrestricted funds
Restricted funds		 2020
£
39,884
18,490
21,394
39,884		 2019
£
42,105
21,179
20,926
42,105

6 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Employees

The average monthly number of employees during the year was:

2020 2019
Number Number
4 4
Employment costs 2020 2019
£ £
Wages and salaries 56,226 67,464
Social security costs 244 1,159
Other pension costs 721 1,089
57,191 69,712
Other
Unrestricted Unrestricted Restricted Total
funds funds funds
£
2020 2019 2019 2019
Salaries 57,191 69,713 - 69,713
Maintenance and upkeep of assets 11,299 16,151 - 16,151
Office expenditure 3,506 3,776 - 3,776
Financing costs 4,050 3,847 45 3,892
Other expenditure 300 300 - 300
76,346 93,787 45 93,832

8 Other

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9
Tangible fixed assets
Freehold land
and buildings
Furniture and
equipment
Investment
Property
£
£
£
Cost
At 1 January 2020
585,434
9,716
150,000
At 31 December 2020
585,434
9,716
150,000
Depreciation and impairment
At 1 January 2020
-
9,716
-
At 31 December 2020
-
9,716
-
Carrying amount
At 31 December 2020
585,434
-
150,000
At 31 December 2019
585,434
-
150,000
10
Debtors
2020
Amounts falling due within one year:
£
Trade debtors
5,282
11
Creditors: amounts falling due within one year
2020
£
Trade creditors
4,383		 Total
£
745,150
745,150
9,716
9,716
735,434
735,434
2019
£
6,161
2019
£
5,966

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January 2019

£
Mission fund reserve
3,396
Church building reserve
579,008
582,404		 Movement in funds
Incoming
resources
Resources
expended
£
£
22,989
(20,643)
538
(329)
23,527
(20,972)		 Movement in funds
Transfers
Balance at
1 January 2020
Incoming
resources
Resources
expended
Balance at
31 December
2020
£
£
£
£
£
-
5,742
19,942
(21,394)
4,290
6,317
585,534
220
-
585,754
6,317
591,276
20,162
(21,394)
590,044

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

13 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 January 2019
£
Revaluation reserve
150,000
Manse upgrade reserve
10,000
Contingency reserve
25,000
Staff salaries reserve
40,000
Capital assets reserve - general
3,730
Capital assets reserve - kitchen
4,500
Quinta reserve
2,500
Minibus reserve
2,229
237,959
14
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2020
2020
£
£
Fund balances at 31
December 2020 are
represented by:
Tangible assets
150,000
585,434
Current assets/
(liabilities)
134,870
4,610
284,870
590,044		 Transfers
Balance at
1 January 2020
Transfers
Balance at
31 December
2020
£
£
£
£
-
150,000
-
150,000
-
10,000
-
10,000
-
25,000
-
25,000
-
40,000
-
40,000
-
3,730
1,270
5,000
-
4,500
-
4,500
-
2,500
-
2,500
2,900
5,129
10,000
15,129
2,900
240,859
11,270
252,129
TotalUnrestricted
funds
Restricted
funds
Total
2020
2019
2019
2019
£
£
£
£
735,434
150,000
585,434
735,434
139,480
106,606
5,842
112,448
874,914
256,606
591,276
847,882

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

15 Fund Details

Contingency reserve A proportion of annual overheads to cover a potential reduction in income Capital asset reserve Funds set aside to cover future requirements for capital assets Quinta reserve To meet the shortfall in costs where attendees cannot afford the full amount to attend the weekend retreat Manse upgrade reserve To cover future remedial works in the investment property Staff salaries reserve A fund set aside to cover staff salary commitments Minibus reserve A fund set aside for the purchase of a minibus Revaluation reserve The reserve created by the revaluation of the investment property Mission fund reserve Funds set aside for mission and humanitarian expenditure Church building reserve £585,434 is represented by the freehold property

16 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).