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2023-12-31-accounts

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 2023

KINMEL BAY CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs J A Foden
Mr W C Hammons
Mrs K H Fernandes
Mrs A J Hughes
Mr G D Hulson
Mr P D Shepherd
Mr S F Moore (Appointed 16 June 2024)
Secretary Mrs K H Fernandes
Charity number 1093931
Company number 4490276
Principal address Kinmel Bay Church
83 St Asaph Avenue
Kinmel Bay
LL18 5EY
Registered office Kinmel Bay Church
83 St Asaph Avenue
Kinmel Bay
LL18 5EY
Independent examiner Christopher Henderson BSc BFP FCA
Harold Smith Chartered Accountants
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 - 15

KINMEL BAY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

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 [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 ).

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.

The church continues to provide:

Achievements and performance

Church business

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

The church continues to be encouraged by growth, pastoral care and leadership development under Pastor Gordon.

The Children & Families Worker (full-time), Administrator (16 hours) continued to fulfil their roles satisfactorily. In April, a Pastoral Worker (13 hours) was appointed. All children, youth and family camps are well attended not only by church members but by families in the community.

In addition to financial support of UK and overseas missions. The church again organised a visit to a Christian social enterprise charity near Leeds (Caring for Life).

KINMEL BAY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 four members of staff.

The ministry teams of the Charity were able to adhere to their budgets from the General Fund, set after a comprehensive review at a total of £114,350.

The church has made charitable donations to a variety of needy causes throughout 2023 amounting to 28% 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.

Plans for future periods

The main development in 2024 is anticipated to be the continued growth and outreach to the community under the direction of the Pastor.

Finding a new person to take over the Coffee Shop.

A mission trip is being planned to Albania to visit both a church with which the Pastor is connected and an orphanage.

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:

Mrs J A Foden

Mr W C Hammons Mrs G V Baker (Resigned 21 February 2023) Mrs M C Bradshaw (Resigned 1 June 2024) Mrs K H Fernandes Mrs A J Hughes Mr G D Hulson Mr P D Shepherd Mr S F Moore (Appointed 16 June 2024)

Qualifying third party indemnity provisions

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.

KINMEL BAY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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

Mrs A J Hughes Trustee

22 August 2024

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 2023.

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

Harold Smith Chartered Accountants Unit 32, Llys Edmund Prys St Asaph Business Park St Asaph Denbighshire LL17 0JA

Dated: 22 August 2024

KINMEL BAY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
143,628
24,600
Investments
4
6,479
-
Total income
150,107
24,600
Expenditure on:
Charitable activities
5
30,380
25,725
Other
8
109,420
-
Total expenditure
139,800
25,725
Net income/(expenditure)
for the year/
Net movement in funds
10,307
(1,125)
Fund balances at 1 January
2023
305,704
594,025
Fund balances at 31
December 2023
316,011
592,900		 Total Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
168,228
126,334
20,242
6,479
5,049
-
174,707
131,383
20,242
56,105
16,546
19,150
109,420
112,891
-
165,525
129,437
19,150
9,182
1,946
1,092
899,729
303,758
592,933
908,911
305,704
594,025		 Total
2022
£
146,576
5,049
151,625
35,696
112,891
148,587
3,038
896,691
899,729

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 2023

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		 2023
£
7,382
169,237
176,619
(3,142)
246,837
69,174		 £
735,434
173,477
908,911
592,900
316,011
908,911		 2022
£
5,469
162,759
168,228
(3,933)
258,329
47,375		 £
735,434
164,295
899,729
594,025
305,704
899,729

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 2023.

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 August 2024

Mrs A J Hughes

Trustee

Company registration number 4490276

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

Kinmel Bay Church is a private company limited by guarantee incorporated in England and Wales. The registered office is Kinmel Bay Church, 83 St Asaph Avenue, Kinmel Bay, LL18 5EY.

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.

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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.

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 2023

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
143,628
24,600
Investments
Rental income
Interest receivable
Charitable activities
Charitable activities
Analysis by fund
Unrestricted funds
Restricted funds		 TotalUnrestricted
Restricted
Total
funds
funds
2023
2022
2022
2022
£
£
£
£
168,228
126,334
20,242
146,576
UnrestrictedUnrestricted
funds
funds
2023
2022
£
£
5,490
4,950
989
99
6,479
5,049
2023
2022
£
£
56,105
35,696
30,380
16,546
25,725
19,150
56,105
35,696

4 Investments

5 Charitable activities

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 2023

7 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
4
2023
£
86,089
1,812
1,565
89,466		 2022
Number
4
2022
£
77,685
158
1,273
79,116

There were no employees whose annual remuneration was more than £60,000.

8 Other

Unrestricted Unrestricted
funds funds
2023 2022
Salaries 89,466 79,115
Maintenance and upkeep of assets 11,735 27,160
Office expenditure 4,142 3,268
Financing costs 2,990 2,688
Other expenditure 1,087 660
109,420 112,891

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

9
Tangible fixed assets
Freehold land
and buildings
Furniture and
equipment
Investment
Property
£
£
£
Cost
At 1 January 2023
585,434
9,716
150,000
At 31 December 2023
585,434
9,716
150,000
Depreciation and impairment
At 1 January 2023
-
9,716
-
At 31 December 2023
-
9,716
-
Carrying amount
At 31 December 2023
585,434
-
150,000
At 31 December 2022
585,434
-
150,000
10
Debtors
2023
Amounts falling due within one year:
£
Other debtors
7,382
Prepayments and accrued income
-
7,382
11
Creditors: amounts falling due within one year
2023
£
Other taxation and social security
817
Trade creditors
715
Accruals and deferred income
1,610
3,142		 Total
£
745,150
745,150
9,716
9,716
735,434
735,434
2022
£
5,369
100
5,469
2022
£
1,591
632
1,710
3,933

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 2022 resources expended
1		 January 2023 resources expended 31 December
2023
£ £ £ £ £ £ £
Mission fund
reserve 6,999 20,242 (19,150)
8,091		 24,600 (25,725)
6,966
Church
building
reserve 585,934 - - 585,934 - - 585,934
592,933 20,242 (19,150)
594,025		 24,600 (25,725)
592,900

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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:

Movement in funds
Balance at Incoming Resources Balance at
Resources		 Transfers Balance at
1 January 2022 resources expended
1		 January 2023
expended		 31 December
2023
£ £ £ £
£		 £ £
Revaluation
reserve 150,000 - - 150,000
-		 - 150,000
Manse
upgrade
reserve 10,000 - (10,000)
-
-		 - -
Contingency
reserve 25,000 5,000 - 30,000
-		 - 30,000
Youth worker
reserve 38,700 - (13,500)
25,200
(25,200)		 - -
Capital
assets
reserve -
general 5,000 - - 5,000
-		 - 5,000
Capital
assets
reserve -
kitchen 4,500 - (1,500)
3,000
-		 - 3,000
Transport
reserve 15,129 - - 15,129
(992)		 - 14,137
Staff salaries
reserve - 30,000 - 30,000
-		 14,700 44,700
248,329 35,000 (25,000)
258,329
(26,192)		 14,700 246,837
14 Analysis of net assets between funds
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Fund balances at 31
December 2023 are
represented by:
Tangible assets 150,000 585,434 735,434 150,000 585,434 735,434
Current assets/
(liabilities) 166,011 7,466 173,477 155,704 8,591 164,295
316,011 592,900 908,911 305,704 594,025 899,729

KINMEL BAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 Manse upgrade reserve To cover future remedial works in the investment property Staff salaries reserve A fund set aside to cover staff salary commitments Transport reserve A fund set aside to cover transport costs incurred on charitable activities Revaluation reserve The reserve created by the revaluation of the investment property Youth worker reserve A fund set aside to cover the costs of a youth worker 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 (2022 - none) .