2021-03-31-accounts - King's Church (Milton Keynes)

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KING'S CHURCH (MILTON KEYNES Accounts- 31. March 211211

KING’S CHURCH (MILTON KEYNES)

A company limited by guarantee and not having a share capital

Charity number: 1102341 Company number: 5014713

Accounts – 31[st] March 2020

INDEX

1-3. Report of the Directors and General Information 4. Independent Examiner’s Report to the Directors 5. Statement of Financial Activities 6. Balance Sheet
7-11. Notes to the Accounts

Registered in England and Wales No: 5014713

KING’S CHURCH (MILTON KEYNES)

REPORT OF THE DIRECTORS for the year ended 31[st] March 2020

The Directors are pleased to present their annual report and financial statements of the charitable company for the year ended 31[st] March 2020 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 the Republic of Ireland (FRS 102) (effective 1st January 2015).

Reference and Administration Details

The charity’s name is King’s Church (Milton Keynes).

Charity Registration Number: 1102341 Company Number: 5014713 Registered Office: King’s Church Community Centre Creed Street Wolverton Milton Keynes MK12 5LY

Directors and Trustees

The Directors of the charitable company are its Trustees for the purposes of charity law. The Trustees and officers who served during the year and since the year end were as follows:

A N Cusdin A M Forbes C J Clare

Objectives and Activities

The main objects of the charity are:

a) The advancement of the Christian faith in the UK and overseas.
b) To relieve persons in conditions of need, hardship and who are aged or sick.
c) To advance education in accordance with Christian principles.
d) To promote other charitable objects as decided by the Trustees from time to time.

In planning the activities of the charitable company the directors have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.

Achievements and Performance

The charity continues to run a local Church seeking to serve the community of Milton Keynes and the surrounding area. Regular Sunday meetings are held, together with additional mid week events for various groups within the Church.

During this financial period the charity has continued to run a number of initiatives which positively impact the local community, including Lunch Drop In (providing meals for more vulnerable members of society), Here to Help (providing support in applying for benefits and signposting to other agencies), and being a very busy member of the local Food Bank.

KING’S CHURCH (MILTON KEYNES)

REPORT OF THE DIRECTORS

for the year ended 31[st] March 2020 ( Continued)

The charity hired its building to local groups, businesses and for functions. Proceeds of this activity are used to maintain the buildings, cover associated overheads and support the wider activities of the charity.

The community centre suffered significant vandalism during June 2019, with the cellars being flooded. The cost of remediating this damage was covered by the charity’s buildings insurance policy and the building was fully functional again in early 2020.

A new full-time caretaker was employed as at the beginning of December 2019, providing maintenance services for both buildings owned by the charity, and supporting the day-to-day operation of the charity.

COVID-19:

The impact of this pandemic on the charity started to be seen during March 2020:

Regular renters of Kings Community Centre stopped hiring the halls, leading to this source of income almost ceasing completely from mid-March.
King’s Church have been unable to meet since mid-March, resulting in a reduction in cash offerings. The impact of furloughing on some church members is likely to see a reduction of income in regular giving.
Social outreach activities have been adapted, with Lunch Drop In changing to Lunch Take Away. Food Bank demand and activity has increased significantly, with King’s Church now being one of the main providers for Milton Keynes.
The 3 employees of King’s Church have been furloughed with effect from 1[st] April 2020, with the charity utilising the HMRC Coronavirus Job Retention scheme. The social outreach activity has been managed by Andy and Shaaron Forbes, with support from volunteers.
The directors have introduced a weekly review of cashflow, planning and forecasting to identify actions and initiatives to try and safeguard the future of the charity.
The charity has been successful in applying for grant support from various bodies to continue to serve the community during this challenging time.
The charity has also benefitted from sizeable donations from individual donors and local businesses to advance the cause of the charity.

In summary, the impact of the COVID-19 pandemic and social restrictions introduced across the country as a result leave the charity in an uncertain position during 2020. The directors are taking all necessary steps to generate income, realise cash and reduce overheads to maintain the ongoing viability of the charity.

Financial Review

The total income for the year was £186,480 and total expenditure on charitable activities amounted to £183,455.

Reserves Policy

The directors seek to keep 2 months’ regular expenses and costs (increased to £20,000 during the year in light of the increase in expenses during this financial period) in reserve as cash or near cash (e.g money claimable from HM Revenue & Customs in respect of gift aid). As at 31[st] March 2020 the directors regard that sufficient funds were held to meet this policy.

The directors also seek to review this policy every 12 months to ensure this amount remains appropriate.

Structure, Governance and Management

Governing Document

King’s Church (Milton Keynes) is a company limited by guarantee governed by its Memorandum and Articles of Association dated 14[th] January 2004. It is registered as a charity with the Charity Commission. Members of the charitable company guarantee to contribute amounts not exceeding £10 to the assets of the charitable company in the event of winding up.

KING’S CHURCH (MILTON KEYNES)

REPORT OF THE DIRECTORS for the year ended 31[st] March 2020 ( Continued)

This report has been prepared in accordance with the special provisions relating to companies subject to the Small Companies Regime within part 15 of the Companies Act 2006.

Approved by the directors on 31st July 2020 and signed on its behalf by:

A N Cusdin - Director

Milton Keynes

KING’S CHURCH (MILTON KEYNES)

INDEPENDENT EXAMINER’S REPORT TO THE DIRECTORS

I report to the trustees on my examination of the accounts of King’s Church (Milton Keynes) for the year ended 31st March 2020.

Responsibilities and Basis of Report

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

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

Independent Examiner’s Statement

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

accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
the accounts do not accord with those records; or
the accounts 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
the accounts have not been prepared in accordance with 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 accounts to be reached.

M D A Gyde FCA DChA A J Carter & Co Chartered Accountants

22b High Street Witney Oxon OX28 6RB

24th August 2020

KING’S CHURCH (MILTON KEYNES)

STATEMENT OF FINANCIAL ACTIVITIES

(including an income and expenditure account) for the year ended 31[st] March 2020

Note Income from: Donations and legacies 3 Investments 4 Total incoming resources Expenditure on: Charitable activities 5 Total expenditure Net income/(expenditure) and net movement in funds for the year Transfer between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward	Unrestricted Restricted Total Funds Funds Funds 2020 £ £ £ 88,654 - 88,654 97,826 - 97,826 186,480 - 186,480 183,455 - 183,455 183,455 - 183,455 3,025 - 3,025 - - - 3,025 - 3,025 467,544 - 467,544 £470,569 £- £470,569	Total Funds 2019 £ 99,816 73,070
		172,886
		150,572
		150,572
		22,314 -
		22,314 445,230
		£467,544

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

All income and expenditure derives from continuing activities.

The notes on pages 7 to 11 form part of these financial statements

Registered in England and Wales: 5014713

KING’S CHURCH (MILTON KEYNES)

BALANCE SHEET as at 31[st] March 2020

Note Fixed assets Tangible assets 11 Total fixed assets Current assets Debtors 12 Cash at bank and in hand Total current assets Liabilities Creditors falling due within one year 13 Net current assets Total assets less current liabilities Creditors:falling due after more than 1 year 14 Provisions for liabilities Total net assets 15 The funds of the Charity Restricted income funds Unrestricted income funds 16 Total charity funds	2020 £ 631,813 631,813 16,051 34,803 50,854 8,829 42,025 673,838 203,269 £470,569 - 470,569 £470,569	2019 £ 629,191
		629,191
		16,911 39,093
		56,004 7,676
		48,328
		677,519 209,975
		£467,544
		- 467,544
		£467,544

For the year ended 31[st] March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors Responsibilities

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the act with respect to the accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the special provisions relating to companies subject to the Small Companies Regime within part 15 of the Companies Act 2006.

These accounts were approved by the board of directors and authorised for issue on: 31st July 2020 and are signed on their behalf by:

A N Cusdin – Director

The notes on pages 7 to 11 form part of these financial statements

KING’S CHURCH (MILTON KEYNES)

NOTES TO THE ACCOUNTS

for the year ended 31[st] March 2020

1. Accounting Policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of Preparation

The Financial Statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Reporting Financial Standard applicable in the UK and the Republic of Ireland (FRS 102) (effective 1st January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

b) Public Benefit Entity

King’s Church (Milton Keynes) meets the definition of a public benefit entity under FRS 102.

c) Going Concern

The Directors consider that there are no material uncertainties about the Charity’s ability to continue as a going concern

d) Income Recognition Policies

Items of income are recognised and included in the accounts when all of the following criteria are met:

The charity has entitlement to the funds;
any performance conditions attached to the items of income have been met or are fully within the control of the charity;
there is sufficient certainty that receipt of the income is considered probable; and
the amount can be measured reliably.
e) 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 bank.

f) Fund Accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are unrestricted funds of the Charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for the particular areas of the Charity’s work or for specific projects being undertaken by the Charity.

g) Expenditure and Irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

KING’S CHURCH (MILTON KEYNES)

NOTES TO THE ACCOUNTS

for the year ended 31[st] March 2020 (continued)

h) Tangible Fixed Assets

Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on the straight line basis as follows:

Asset Annual Category Rate

Furniture and equipment 20% per annum

i) Stock
Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised in income when the items are sold.
j) Debtors
Trade and other debtors are recognised at the settlement amounts due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
k) Cash at Bank and in Hand Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
l) Creditors and Provisions Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2. Legal Status of the Charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

3. Income from donations

Gifts and donations Other gifts and income Income from investments Rental income Interest	2020 £ 75,163 13,491 £88,654 2020 £ 97,787 39 £97,826	2019 £ 78,973 20,843
		£99,816
		2019 £ 73,050 20
		£73,070

4. Income from investments

KING’S CHURCH (MILTON KEYNES)

NOTES TO THE ACCOUNTS

for the year ended 31[st] March 2020 (continued)

5. Analysis of expenditure on charitable activities

Ministry support Motor and travel Telephone Gifts and donations Equipment repairs and maintenance Youth and children Stationery, post and advertising Outreach and church events Light and heat Property renovation and repairs Insurance Refund rent deposit Sundry Bank charges and interest Loan interest Depreciation Professional fees Accountancy Total 6. Net income/(expenditure) for the year This is stated after charging: Depreciation Loan interest payable Accountancy services 7. Analysis of staff costs and trustee fees Staff costs and fees No employees had emoluments in excess of £60,000 (2019: Nil). The charity trustees were paid as follows: A Forbes Fees Expenses S Forbes Fees	2020 Total £ 89,816 1,881 2,735 3,878 3,885 390 1,587 8,078 16,133 31,547 6,557 1,145 3,210 99 10,252 944 88 1,230 £183,455 2020 £ 944 10,252 1,230 2020 £ 90,979 £90,979 2020 £ 36,221 4,956 31,632 £72,809	2019 Total £ 76,129 2,069 3,174 4,466 7,801 640 1,243 8,138 15,065 7,834 5,884 1,020 2,539 652 11,585 290 843 1,200 £150,572
		2019 £ 290 11,585 1,200
		2019 £ 80,577
		£80,577
		2019 £ 36,221 5,528 30,513 £72,262

KING’S CHURCH (MILTON KEYNES)

NOTES TO THE ACCOUNTS

for the year ended 31[st] March 2020 (continued)

8. Staff numbers

The average monthly number of employees during the year was as follows:

2020	2019
Number	Number
4	4

9. Related party transactions

From December 2019 the charity employed a Mr S Forbes, brother of the trustee Mr A Forbes. During the year the charity paid Mr A Forbes £8,333.

During the year under review trustees and close relatives made unrestricted donations totalling £38,145 (2019: £44,168).

10. Corporation tax

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

11. Tangible fixed assets

Freehold Property £ 628,030 -	Equipment £ 37,288 3,566	Total £ 665,318 3,566
628,030	40,854	668,884
- -	36,127 944	36,127 944
-	37,071	37,071
£628,030	£3,783	£631,813
£628,030	£1,161	£629,191
	2020 £ 7,611 5,065 3,375 £16,051	2019 £ 8,268 5,403 3,240 £16,911

KING’S CHURCH (MILTON KEYNES)

NOTES TO THE ACCOUNTS

for the year ended 31[st] March 2020 (continued)

13. Creditors: amounts falling due within one year

one year General Designated Fund Funds £ £ 631,813 - 12,169 22,634 7,222 - (203,269) -	2020 £ 5,372 3,457 £8,829 2020 £ 203,269 £203,269 Restricted Funds £ - - - -	2019 £ 4,286 3,390 £7,676 2019 £ 209,975
		£209,975
		Total £ 631,813 34,803 7,222 (203,269)
£447,935 £22,634	£-	£470,569

14. Creditors: amounts falling due after more than one year

15. Analysis of net assets between funds

16. Analysis of charitable funds Analysis of movements in unrestricted funds

General fund Designated Fund Total	Balance Incoming Resources Funds 31.03.19 resources expended Transfers 31.03.20 £ £ £ £ £ 450,627 180,763 (183,455) - 447,935 16,917 5,717 - - 22,634
	£467,544£186,480 £(183,455) £-£470,569

The designated fund represents the Wesley Building Fund.