2021-03-31-accounts

Charity number: 1096992

PATHWAYS CHURCH

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

PATHWAYS CHURCH

CONTENTS

	Page
Reference and administrative details of the charity, its Trustees and advisers	1
Trustees' report	2 - 5
Independent examiner's report	6
Statement of financial activities	7
Balance sheet	8
Notes to the financial statements	9 - 17

PATHWAYS CHURCH

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees

Darren Eagles, Trustee Dan Maudhub, Trustee David Needham, Trustee (appointed 30 March 2018)

Charity registered number

1096992

Principal office

9 Ashford Road, Maidstone, Kent, ME14 5BJ

Accountants

IT & Accounting Solutions Limited, 28 Harrow Way, Maidstone, Kent, ME14 5TU

Bankers

HSBC, 1/5 Week Street, Maidstone, Kent, ME14 1QW

Page 1

PATHWAYS CHURCH

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the financial statements of the charity for the 1 April 2020 to 31 March 2021.

The charity also trades under the former name Jubilee Church Maidstone.

Objectives and activities

l Policies and objectives

The principal objects of the charity is (a) the advancement of the Christian faith, (b) the relief of persons who are in conditions of need, hardship or distress or who are aged or sick, (c) the advancement of education on the basis of Christian principles; principally in the vicinity of Kent, but extending to national and international where deemed necessary by the trustees.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

l Strategies for achieving objectives

The heart of Pathways Church is to develop mature disciples and train leaders to see lives, communities and nations impacted and transformed to achieve their God given destiny. Pathways Church's mission statement is to be a loving family, keeping Christ at the centre as we serve our community.

l Volunteers

We rely on many in the congregation to serve and volunteer for the various church activities to function. The Trustees would like to thank all the volunteers for all their time, effort and financial resources that they have given to make this another successful year, especially given the unprecedented global challenges of the COVID pandemic throughout the whole financial year where the whole country was locked down for months on end and volunteers needed to work remotely and creatively to fulfil our mission.

l Main activities undertaken to further the charity's purposes for the public benefit

• The advancement of the Christian faith - teaching and encouraging growth in the Christian Faith. As well as regular teaching and small group work at Pathways, we work together with other churches including Pathways Church’s local Anglican church, St Mary’s, in several areas. This year the vast majority of the regular Church meetings and services were held on the Zoom communication platform.

• The prevention or relief of poverty - we have supported local families and some of our congregation with practical help and monetary support or loans. Through the COVID lockdown we continued to work together with the local councillors and Parish Council to support the community in delivering medical prescriptions, food bank collections and shopping for vulnerable individuals in the community.

Page 2

PATHWAYS CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

Strategic report

Achievements and performance

l Review of activities

Pathways Church is very much focused on being a church for the local community whilst having a global outlook and perspective. It is our aim to give those who join us the opportunity to be part of a loving, supportive, uplifting family, no matter what their background or circumstances. We encourage growth in the Christian faith and keep that central to everything we do. We work towards being a church that contributes to the life of the community that we live in. We are part of Church of the Nations (COTN) and within this, a part of ‘Acts Life Cluster’ led by Dave and Carol Cape. Our relationship with the COTN cluster churches gives us the opportunity to have a more national and international relevance, whilst enabling us to operate in our local community.

Pathways Church is very well linked with Jubilee Church in Maidstone, and enjoy a tremendous level of support from their leaders and congregation. During this year we have been planning some changes in the leadership of Pathways Church as Johnny and Estelle McCabe will be stepping down from ministry in September 2021. We welcome Ben and Kaat Doggett from Jubilee Church as they join Pathways and transition to become the new lead couple.

Despite the COVID disruptions we have still been meeting twice a month on the first and third Sundays, for a celebration service -which includes a time of fellowship, worship and teaching. Though for most of the year this was held on Zoom, apart from a few weeks in Summer 2020 when we were able to meet in Lenham Community Centre – observing social distancing and following the government guidelines on public meetings (wearing masks, no singing, no food /drinks etc)

We also meet weekly during term time in smaller groups to encourage our faith, to worship and develop a sense of belonging in a family. Usually this is in homes, but again with all the restrictions and guidelines on not interacting socially, the vast majority of these meetings were held on zoom. We have used this as an opportunity to invite global church contacts to join us for some of these meetings and share their experience and example of faith in action.

Many of the local activities we generally support as a Church didn’t go ahead during this year due to COVID.

Pathways Church supports Louise Buys financially. She is part of Koinonia Church in Modimolle, South Africa and heads up a Bible teaching school.

In a normal year Pathways elders meet together with other church leaders in the Cluster several times a year. Physical meetings this year have not been possible, but we have remained connected with various Zoom calls / meetings.

Acts Life Cluster

Although a separate charity, Pathways Church donates a monthly contribution to facilitate the continued training and equipping of churches in the UK, as well as churches in Jamaica, South Africa, Ukraine and Sri Lanka.

Page 3

PATHWAYS CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Strategic report (continued)

Achievements and performance (continued)

Financial review

l Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

l Reserves policy

The trustees aim to maintain free reserves in unrestricted funds at a level which equates to approximately three months of unrestricted charitable expenditure.

l Principal funding

The primary source of income remains tithes and offerings from the local congregation.

Structure, governance and management

l Constitution

Pathways Church is a registered charity, number 1096992, and is constituted under a Trust deed.

l Methods of appointment or election of Trustees

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

l Organisational structure and decision-making policies

The trustees are currently a mix of Pathways Church and Jubilee Church Maidstone elders, reflecting the fact that Pathways Church grew out of and was planted by Jubilee Church Maidstone. The trustees all share a common vision and heart for this charity which will now be run as Pathways Church.

The eldership of Pathways Church consists of four elders who carry the government and are responsible for all decision making and normally meet fortnightly.

Page 4

PATHWAYS CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees on 12 November 2021 and signed on their behalf by:

David Needham

(Trustee)

Page 5

PATHWAYS CHURCH

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2021

Independent examiner's report to the Trustees of Pathways Church ('the charity')

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

Responsibilities and basis of report

As the Trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared the accounts 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 130 of the 2011 Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report.

Signed: Dated: 12 November 2021 Marcel Jung ICPA (Fellow), FFA/FIPA, FAIA

IT & Accounting Solutions Limited Certified Public Accountants

Page 6

PATHWAYS CHURCH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Note Income from: Donations and legacies 3 Other trading activities 4 Investments 5 Total income Expenditure on: Charitable activities 7 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2021 £ 35,004 - 7 35,011 20,558 20,558 14,453 20,083 14,453 34,536	Total funds 2021 £ 35,004 - 7 35,011 20,558 20,558 14,453 20,083 14,453 34,536	Total funds 2020 £ 29,023 112 25 29,160 31,538 31,538 (2,378) 22,461 (2,378) 20,083

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

The notes on pages 9 to 17 form part of these financial statements.

Page 7

PATHWAYS CHURCH

BALANCE SHEET AS AT 31 MARCH 2021

Note Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Net assets excluding pension asset Total net assets Charity funds Restricted funds 16 Unrestricted funds 16 Total funds	4,726 30,080 34,806 (974)	2021 £ 704 704 33,832 34,536 34,536 34,536 - 34,536 34,536	3,255 17,230 20,485 (940)	2020 £ 538
				538 19,545
				20,083
				20,083
				20,083
				- 20,083
				20,083

The financial statements were approved and authorised for issue by the Trustees on 12 November 2021 and signed on their behalf by:

David Needham

(Trustee)

The notes on pages 9 to 17 form part of these financial statements.

Page 8

PATHWAYS CHURCH

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

1. General information

Pathways Church was setup on 20 December 2002 as an unincorporated charitable trust and registered with the Charity Commission for England and Wales (charity number 1096992) on 11 April 2003. The registered address is Jubilee Resource Hub, 9 Ashford Road, Maidstone, Kent, ME14 5BJ.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Pathways Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Income

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

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Page 9

PATHWAYS CHURCH

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

2. Accounting policies (continued)

2.3 Expenditure (continued)

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.4 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

• Plant and machinery 25% straight line - Office equipment 33.3% straight line

2.7 Debtors

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

2.8 Cash at bank and in hand

Cash at bank and 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.

Page 10

PATHWAYS CHURCH

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

2. Accounting policies (continued)

2.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.10 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.11 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Investment income, gains and losses are allocated to the appropriate fund.

3. Income from donations and legacies

Unrestricted funds 2021 £ Tithes and offerings 30,501 Gifts - Gift aid income 4,503 35,004	Total funds 2021 £ 30,501 - 4,503 35,004	Total funds 2020 £ 23,595 2,595 2,833
		29,023

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PATHWAYS CHURCH

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

4. Income from other trading activities

Income from non charitable trading activities

Hire of PA equipment Investment income Unrestricted funds 2021 £ Investment income - local cash 7 Analysis of grants Grants to Institutions 2021 £ Grants, Local charities 3,363 Grants to Institutions 2020 £ Grants, Local charities 7,880	Total funds 2021 £ - Total funds 2021 £ 7 Grants to Individuals 2021 £ 2,148 Grants to Individuals 2020 £ 5,023	Total funds 2020 £ 112
		Total funds 2020 £ 25
		Total funds 2021 £ 5,511
		Total funds 2020 £ 12,903

5. Investment income

6. Analysis of grants

The charity has made the following material grants to institutions during the year:

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PATHWAYS CHURCH

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

6. Analysis of grants (continued)

Name of institution Jubilee Resource Hub (charity no 1115331) Acts Life Cluster (charity no 1098683)	2021 £ - 3,363 3,363 3,363	2020 £ 2,600 5,280
		7,880
		7,880

7. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted funds 2021 £ Local charities 20,333 Events - Lenham Festival - Travel costs 225 20,558	Total funds 2021 £ 20,333 - 225 20,558	Total funds 2020 £ 26,488 1,256 3,794
		31,538

8. Analysis of expenditure by activities

Local charities Travel costs	Activities undertaken directly 2021 £ 13,245 225 13,470	Grant funding of activities 2021 £ 5,511 - 5,511	Support costs 2021 £ 1,577 - 1,577	Total funds 2021 £ 20,333 225
				20,558

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PATHWAYS CHURCH

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

8. Analysis of expenditure by activities (continued)

Local charities Events Resource church	Activities undertaken directly 2020 £ 11,936 1,256 3,794 16,986	Grant funding of activities 2020 £ 12,903 - - 12,903	Support costs 2020 £ 1,649 - - 1,649	Total funds 2020 £ 26,488 1,256 3,794
				31,538

9. Independent examiner's remuneration

	2021	2020
	£	£
Fees payable to the charity's independent examiner for the independent
examination of the charity's annual accounts	440	300
Fees payable to the charity's independent examiner in respect of:
All other services not included above	1,000	300

10. Staff costs

2021 £ Wages and salaries 10,060 10,060 The average number of persons employed by the charity during the year was as follows: 2021 No. Part time pastoral staff 2	2020 £ 6,292
	6,292
	2020 No. 1

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PATHWAYS CHURCH

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

10. Staff costs (continued)

No employee received remuneration amounting to more than £60,000 in either year.

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL) .

12. Tangible fixed assets

Cost or valuation At 1 April 2020 Additions At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020	Music equipment £ 836 482 1,318 747 149 896 422 89	Office equipment £ 1,207 - 1,207 758 167 925 282 449	Total £ 2,043 482
			2,525
			1,505 316
			1,821
			704
			538

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PATHWAYS CHURCH

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

13. Debtors

Due within one year Trade debtors Other debtors	2021 £ 4,503 223 4,726	2020 £ 2,833 422
		3,255

14. Creditors: Amounts falling due within one year

Trade creditors Accruals and deferred income	2021 £ 300 674 974	2020 £ 368 572
		940

15. Financial instruments

	2021	2020
	£	£
Financial assets
Financial assets measured at fair value through income and expenditure	30,081	17,230

Financial assets measured at fair value through income and expenditure comprise cash balances.

16. Statement of funds

Statement of funds - current year

				Balance at
	Balance at 1			31 March
	April 2020	Income	Expenditure	2021
	£	£	£	£
Unrestricted funds
General Funds - all funds	20,083	35,011	(20,558)	34,536

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PATHWAYS CHURCH

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

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2021 £ Tangible fixed assets 704 Current assets 34,806 Creditors due within one year (974) Total 34,536	Total funds 2021 £ 704 34,806 (974) 34,536

18. Related party transactions

Donations of £12,451.87 (2020: £4,900) were received during the year from the Trustees.

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