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2021-03-31-accounts

Charity Registration No. 1102481

Company Registration No. 4734031 (England and Wales)

HOPE CHURCH OSWESTRY

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

HOPE CHURCH OSWESTRY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees E Bebb J Price B Jenkins Secretary R Elmitt Charity number 1102481 Company number 4734031 Registered office Laburnum Drive Oswestry Shropshire United Kingdom SY11 2QR Independent examiner Azets 5 - 7 Beatrice Street Oswestry Shropshire United Kingdom SY11 1QE

(Appointed 15 July 2020) (Appointed 15 July 2020)

HOPE CHURCH OSWESTRY

CONTENTS

Page
Trustee's report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6 - 15

HOPE CHURCH OSWESTRY

TRUSTEE'S REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report and financial statements for the year ended 31 March 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 , 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 objects are the advancement of the Christian Faith, the provision of a place or places of Worship and the promotion and provision of activities to meet social need, in Oswestry, the surrounding areas and elsewhere.

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

Achievements and performance

Hope Church Oswestry faced a severe disruption of its activities and services following the government’s social restrictions in response to the Covid pandemic. All physical meetings were stopped and most activities moved online.

Some staff were furloughed and resources were diverted towards contracting a digital and social media manager to enhance the work of the church online through Youtube, Facebook and Instagram.

Regular activities that have continued online through the year, include:

There has continued to be good progress with our plans to construct a new church building in the centre of Oswestry. A building company has been chosen and the final stages of preparation to start construction are taking place. The new community rooms at Marketplace have completed their refurbishment and are now available for church and community use.

The launch of the Compass supported housing project with four residents and a team of volunteers providing support, was challenging given social restrictions but is an exciting expansion of the community work of the Church

We currently employ: Pastor/Church Leader (full time) Children & Youth Worker (full time) Community & Outreach Facilitator (part time) Cleaner (part time)

The church has once again been active in supporting other organisations locally including CTOD, Foodbank and the School's Worker Christian Project. The church has also continued to support (financially and in prayer) overseas mission organisations plus a church member who is working overseas.

Our facilities continued to be used by other community and statutory organisations.

Financial review

HOPE CHURCH OSWESTRY

TRUSTEE'S REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Despite Sunday offerings ceasing – the successful move to more online giving has meant that the church is in a sound financial position, with sufficient funds to be able to meet our current commitments.

The trustees have concluded that an appropriate level of reserves for the Church to hold in its general fund should be £21,500 plus the value of any fixed assets held within the general fund.

The Trustees has assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The Charity is a company limited by guarantee.

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:

D Hughes E Bebb T Gray C Jones Resigned 01.03.20 J Price Appointed 15.07.20 B Jenkins Appointed 15.07.20

New Trustees are appointed from the Membership following votes by the board and membership.

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

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

R Elmitt

B Jenkins

Dated: 31 December 2021

Dated:31 December 2021

HOPE CHURCH OSWESTRY

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HOPE CHURCH OSWESTRY

I report to the Trustees on my examination of the financial statements of Hope Church Oswestry (the Charity) for the year ended 31 March 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

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.

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.

Azets

5 - 7 Beatrice Street Oswestry Shropshire SY11 1QE United Kingdom

Dated: 28 January 2022

HOPE CHURCH OSWESTRY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Unrestricted
Restricted
funds
funds
funds
general d esignated
2021
2021
2021
Notes
£
£
£
Income from:
Donations and legacies
3
111,743
-
137,292
Charitable activities
4
-
-
-
Investment income
4
5,313
-
-
Other income
4
12,265
-
-
Total income
129,321
-
137,292
Expenditure on:
Raising funds
5
12,909
-
-
Charitable activities
6
103,164
-
43,863
Total resources expended
116,073
-
43,863
Net income for the year/
Net movement in funds
13,248
-
93,429
Fund balances at 1 April 2020
191,253
112,038
576,319
Fund balances at 31 March 2021
204,501
112,038
669,748		 Total
2021
£
249,035
-
5,313
12,265
266,613
12,909
147,027
159,936
106,677
879,610
986,287		 Total
2020
£
170,060
2,687
11,664
402
184,813
8,908
126,820
135,728
49,085
830,525
879,610

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.

HOPE CHURCH OSWESTRY

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
9
Investment properties
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
14
Unrestricted funds - designated
General unrestricted funds		 2021
£
7,573
107,818
115,391
(6,937)		 £
536,034
341,799
877,833
108,454
986,287
669,748
112,038
204,501
986,287		 2020
£
9,150
85,364
94,514
(3,496)		 £
488,592
300,000
788,592
91,018
879,610
576,319
112,038
191,253
879,610

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 March 2021.

The director acknowledges her 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 31 December 2021

B Jenkins Trustee

Company Registration No. 4734031

HOPE CHURCH OSWESTRY

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

1 Accounting policies

Charity information

Hope Church Oswestry is a private company limited by guarantee incorporated in England and Wales. The registered office is Laburnum Drive, Oswestry, Shropshire, SY11 2QR, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.

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

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

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

1.2 Going concern

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

1.3 Charitable funds

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

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

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

1.4 Income

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

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

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

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 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 property 2% on cost Fixtures and fittings 25% on cost Computers 25% on cost

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

1.6 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

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.

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 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.

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.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
general
2021
2021
£
£
Donations and gifts
111,743
137,292
For the year ended 31 March 2020
103,724
66,336		 Total
2021
£
249,035		 Total
2020
£
170,060
170,060

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Charitable Investment Other income Total Total
activities income 2021 2020
2021 2021 2021
£ £ £ £ £
Charitable activities income - 5,313 12,265 17,578 14,753

5 Raising funds

Unrestricted
funds
general
2021
£
Investment management
12,909
12,909		 Total
2020
£
8,908
8,908

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

6 Charitable activities

Activities
direct
2021
£
Staff costs
82,701
Depreciation and impairment
-
Church running costs
14,536
Mission
-
Property running costs
-
Telephone
-
Printing, postage and stationery
-
Subscriptions
-
Sundry expenses
-
97,237
97,237
Analysis by fund
Unrestricted funds - general
53,374
Restricted funds
43,863
97,237
For the year ended 31 March 2020
Unrestricted funds - general
84,127
Restricted funds
3,249
87,376		 Grant
funding
Support
costs
2021
2021
£
£
-
-
-
8,652
-
-
21,140
-
-
8,044
-
1,171
-
1,835
-
7,645
-
1,303
21,140
28,650
21,140
28,650
21,140
28,650
-
-
21,140
28,650
15,746
23,698
-
-
15,746
23,698		 Total
2021
£
82,701
8,652
14,536
21,140
8,044
1,171
1,835
7,645
1,303
147,027
147,027
103,164
43,863
147,027		 Total
2020
£
84,126
4,754
4,796
15,746
10,531
1,812
796
4,004
255
126,820
126,820
123,571
3,249
126,820
123,571
3,249
126,820

7 Trustees

One trustee, Mr D Hughes, was remunerated as pastor during the year and received a salary of £40,167 (2020 - £38,287). Mr Hughes was also reimbursed expenses as a result of his employment. He received no reimbursement of expenses for his role as trustee.

No other trustees were reimbursed for expenses during the year (2020 - none).

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

8 Employees

The average monthly number of employees during the year was:

2021
Number
Employees
4
Employment costs
2021
£
Wages and salaries
77,115
Social security costs
1,968
Other pension costs
2,972
82,055
There were no employees whose annual remuneration was £60,000 or more.
Tangible fixed assets
Freehold
property
Fixtures and
fittings
Computers
£
£
£
Cost
At 1 April 2020
544,918
6,657
29,199
Additions
56,095
-
-
At 31 March 2021
601,013
6,657
29,199
Depreciation and impairment
At 1 April 2020
58,202
6,400
27,580
Depreciation charged in the year
8,162
86
405
At 31 March 2021
66,364
6,486
27,985
Carrying amount
At 31 March 2021
534,649
171
1,214
At 31 March 2020
486,716
257
1,619		 2020
Number
4
2020
£
70,931
6,122
4,243
81,296
Total
£
580,774
56,095
636,869
92,182
8,653
100,835
536,034
488,592

9 Tangible fixed assets

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

10 Investment property

Fair value
At 1 April 2020
Additions through external acquisition
At 31 March 2021		 2021
£
300,000
41,799
341,799

Investment property comprises commercial property known as Marketgates, Oswestry.

11 Debtors

Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 2021
£
4,700
2,873
7,573		 2020
£
7,362
1,788
9,150

12 Creditors: amounts falling due within one year

Notes
Deferred income
13
Other creditors
Accruals and deferred income
Deferred income
Other deferred income		 2021
£
-
-
6,937
6,937
2021
£
-		 2020
£
1,096
869
1,531
3,496
2020
£
1,096

13 Deferred income

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

14 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 April 2019 resources expended 1 April 2020 resources expended
31		 March 2021
£ £ £ £ £ £ £
Building
Fund 503,314 63,205 (1,292) 565,227 93,429 - 658,656
Local
Outreach 9,918 3,129 (1,955) 11,092 43,863 (43,863) 11,092
513,232 66,334 (3,247) 576,319 137,292 (43,863) 669,748

The Building Fund represents funds raised to purchase new premises.

Smaller funds represent those funds raised for ongoing projects run by the church.

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

15
Analysis of net assets between funds
Fund balances at 31 March 2021 are represented
by:
Tangible assets
Investment properties
Current assets/(liabilities)		 General Designated
Restricted
2021
2021
2021
£
£
£
34,784
112,038
389,212
-
-
341,799
169,717
-
(61,263)
204,501
112,038
669,748		 Total
2021
£
536,034
341,799
108,454
986,287		 General Designated
Restricted
2020
2020
2020
£
£
£
151,442
112,038
225,112
-
-
300,000
39,811
-
51,207
191,253
112,038
576,319		 Total
2020
£
488,592
300,000
91,018
879,610

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

16 Related party transactions

There were no disclosable related party transactions during the year (2020 - loans forwarded by three members in 2019 were repaid by the Charity ) .