Charity registration number 1093931
Company registration number 4490276 (England and Wales)
KINMEL BAY CHURCH
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
KINMEL BAY CHURCH
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mrs J A Foden Mr W C Hammons Mrs G V Baker (Appointed 5 October 2021) Mrs M C Bradshaw (Appointed 5 October 2021) Mrs K H Fernandes (Appointed 5 October 2021) Mrs A J Hughes (Appointed 5 October 2021) Mr G D Hulson (Appointed 5 October 2021) Mr P D Shepherd (Appointed 5 October 2021) Secretary Mrs K H Fernandes 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 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 14 |
KINMEL BAY CHURCH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021
The trustees present their annual report and financial statements for the year ended 31 December 2021.
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.
As lockdown eased, face to face church activities gradually resumed but all covid regulations were complied with:
-
Practical support was provided by a regular Food Bank operated twice weekly. The take-up of this facility significantly increased during the pandemic.
-
The church was used by schools and the local authority to be a distribution centre for free lunches for the children in lockdown.
-
Sunday lunches were provided weekly for the elderly and vulnerable.
-
Christmas dinners were available for the community
-
Pastoral care continued with door-step visits, when possible, to families and the elderly, with deliveries of flowers, food, books and children's craft activities.
-
Youth activities and one-to-one support transferred online with relevant safeguards.
-
Sunday services and mid-week church activities transferred online with daily online provision of spiritual encouragement.
Achievements and performance
Church business
The trustees continued to review all aspects of the church's management.
In the absence of a pastor, the trustees, church employees and volunteers took responsibility for the ongoing activities of the charity.
The Children & Families Worker (full-time), Administrator (16 hours) and contracted Outreach Worker (quartertime till Easter when he resigned) continued to fulfil their roles satisfactorily.
The search for a new pastor was recommenced in July and the trustees are pleased to report that Pastor Gordon Weir was appointed on 23rd November 2021 with a start date of 1st April 2022
The Trainee Youth and Children's Worker completed her university course in June and was appointed as Youth Worker from 1st September.
- 1 -
KINMEL BAY CHURCH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 all staff plus a trainee youth worker who was then appointed as a youth worker as above.
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 2021 amounting to 17% 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.
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 (Retired 17 May 2022) Mrs J A Foden Mr W C Hammons Mrs D S Gilman (Retired 28 May 2021) Mrs G V Baker (Appointed 5 October 2021) Mrs M C Bradshaw (Appointed 5 October 2021) Mrs K H Fernandes (Appointed 5 October 2021) Mrs A J Hughes (Appointed 5 October 2021) Mr G D Hulson (Appointed 5 October 2021) Mr P D Shepherd (Appointed 5 October 2021)
None of the trustees have 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 2022 is enabling the new Pastor to settle in and take up his responsibilities.
- 2 -
KINMEL BAY CHURCH
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
The trustees' r eport was approved by the Board of Trustees.
Mrs J A Foden
Trustee
21 September 2022
- 3 -
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 2021.
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:
-
1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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
-
4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for 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 (FRS 102).
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: 21 September 2022
- 4 -
KINMEL BAY CHURCH
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income from: Donations and legacies 3 101,234 18,966 Investments 4 4,812 - Total income 106,046 18,966 Expenditure on: Charitable activities 5 20,485 16,077 Other 8 66,673 - Total expenditure 87,158 16,077 Net income for the year/ Net movement in funds 18,888 2,889 Fund balances at 1 January 2021 284,870 590,044 Fund balances at 31 December 2021 303,758 592,933 |
Total Unrestricted Restricted funds funds 2021 2020 2020 £ £ £ 120,200 117,980 20,162 4,812 5,120 - 125,012 123,100 20,162 36,562 18,490 21,394 66,673 76,346 - 103,235 94,836 21,394 21,777 28,264 (1,232) 874,914 256,606 591,276 896,691 284,870 590,044 |
Total 2020 £ 138,142 5,120 143,262 39,884 76,346 116,230 27,032 847,882 874,914 |
|---|---|---|
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.
- 5 -
KINMEL BAY CHURCH
BALANCE SHEET
AS AT 31 DECEMBER 2021
| 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 |
2021 £ 5,272 159,387 164,659 (3,402) 248,329 55,429 |
£ 735,434 161,257 896,691 592,933 303,758 896,691 |
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 |
|---|---|---|---|---|
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 2021.
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 21 September 2022
Mrs J A Foden
Trustee
Company registration number 4490276
- 6 -
KINMEL BAY CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 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.
- 7 -
KINMEL BAY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 the statement of financial activities .
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.
- 8 -
KINMEL BAY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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.
- 9 -
KINMEL BAY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
3 Donations and legacies
| Unrestricted Restricted funds funds 2021 2021 £ £ Donations and gifts 101,234 18,966 Investments Bank interest and rent |
TotalUnrestricted Restricted Total funds funds 2021 2020 2020 2020 £ £ £ £ 120,200 117,980 20,162 138,142 UnrestrictedUnrestricted funds funds 2021 2020 £ £ 4,812 5,120 |
|---|---|
4 Investments
5 Charitable activities
| Charitable activities Analysis by fund Unrestricted funds Restricted funds |
2021 £ 36,562 20,485 16,077 36,562 |
2020 £ 39,884 18,490 21,394 39,884 |
|---|---|---|
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
7 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 |
|---|---|
| Number | Number |
| 3 | 4 |
- 10 -
KINMEL BAY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
| 7 Employees Employment costs Wages and salaries Social security costs Other pension costs |
(Continued) 2021 2020 £ £ 46,060 56,226 - 244 723 721 46,783 57,191 |
|---|---|
There were no employees whose annual remuneration was more than £60,000.
8 Other
| Unrestricted | Unrestricted | |||
|---|---|---|---|---|
| funds | funds | |||
| 2021 | 2020 | |||
| Salaries | 46,783 | 57,191 | ||
| Maintenance and upkeep of assets | 12,061 | 11,299 | ||
| Office expenditure | 3,556 | 3,506 | ||
| Financing costs | 3,967 | 4,050 | ||
| Other expenditure | 306 | 300 | ||
| 66,673 | 76,346 | |||
| Tangible fixed assets | ||||
| Freehold land | Furniture and | Investment | Total | |
| and buildings | equipment | Property | ||
| £ | £ | £ | £ | |
| Cost | ||||
| At 1 January 2021 | 585,434 | 9,716 | 150,000 | 745,150 |
| At 31 December 2021 | 585,434 | 9,716 | 150,000 | 745,150 |
| Depreciation and impairment | ||||
| At 1 January 2021 | - | 9,716 | - | 9,716 |
| At 31 December 2021 | - | 9,716 | - | 9,716 |
| Carrying amount | ||||
| At 31 December 2021 | 585,434 | - | 150,000 | 735,434 |
| At 31 December 2020 | 585,434 | - | 150,000 | 735,434 |
9 Tangible fixed assets
- 11 -
KINMEL BAY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
10 Debtors
11
| Amounts falling due within one year: Trade debtors Prepayments and accrued income Creditors: amounts falling due within one year Trade creditors |
2021 £ 4,042 1,230 5,272 2021 £ 3,402 |
2020 £ 5,282 - 5,282 2020 £ 4,383 |
|---|---|---|
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:
| Movement in funds | Movement in funds | Movement in funds | Movement in funds | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Balance at | Incoming | Resources | Balance at | Incoming | Resources | Balance at | |||
| 1 | January 2020 | resources | expended | 1 |
January 2021 | resources | expended | 31 December | |
| 2021 | |||||||||
| £ | £ | £ | £ | £ | £ | £ | |||
| Mission fund | |||||||||
| reserve | 5,742 | 19,942 | (21,394) | 4,290 |
18,786 | (16,077) | 6,999 |
||
| Church | |||||||||
| building | |||||||||
| reserve | 585,534 | 220 | - | 585,754 | 180 | - | 585,934 | ||
| 591,276 | 20,162 | (21,394) | 590,044 |
18,966 | (16,077) | 592,933 |
- 12 -
KINMEL BAY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 2020 £ 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 5,129 240,859 14 Analysis of net assets between funds Unrestricted funds Restricted funds 2021 2021 £ £ Fund balances at 31 December 2021 are represented by: Tangible assets 150,000 585,434 Current assets/ (liabilities) 153,758 7,499 303,758 592,933 |
Transfers Balance at 1 January 2021 Transfers Balance at 31 December 2021 £ £ £ £ - 150,000 - 150,000 - 10,000 - 10,000 - 25,000 - 25,000 - 40,000 (1,300) 38,700 1,270 5,000 - 5,000 - 4,500 - 4,500 - 2,500 (2,500) - 10,000 15,129 - 15,129 11,270 252,129 (3,800) 248,329 TotalUnrestricted funds Restricted funds Total 2021 2020 2020 2020 £ £ £ £ 735,434 150,000 585,434 735,434 161,257 134,870 4,610 139,480 896,691 284,870 590,044 874,914 |
|---|---|
- 13 -
KINMEL BAY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
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 (2020 - none) .
- 14 -