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2023-03-31-accounts

Charity registration number 1102481

HOPE CHURCH OSWESTRY

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

HOPE CHURCH OSWESTRY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

J Price B Jenkins Mrs M E Smith Mr C W Shaw

(Appointed 16 May 2022)

Charity number 1102481 Independent examiner Azets Column House London Road Shrewsbury Shropshire United Kingdom SY2 6NN

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 FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their annual report and financial statements for the year ended 31 March 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 Memorandum and Articles, the Charities Act 2011 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

In July of 2023, Hope Church celebrated the opening of its new church centre in the heart of Oswestry. The new premises will greatly advance the church in its life and mission, providing not only a larger and more accessible space for worship, but also facilities to support the church in its growing engagement with the local community. Alongside its existing rooms, the new premises are also available to hire to local individuals, businesses and community groups.

The Church has moved its office to a unit adjacent to the new church centre in order to be more visible and accessible during the week, and it continues to lease some of its units to local businesses.

Worship services continue weekly on Sunday mornings with increasing numbers of both adults and children in attendance and the church looks forward to welcoming new individuals and families into membership in the near future. The church held a baptism service in July 2023 at which 1 adult and 5 young people were baptised. The church continues to stream its services online through YouTube.

In addition:

HOPE CHURCH OSWESTRY

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The Church currently employs:

The church’s part-time Community Outreach Facilitator stepped down from role in Sept 2023.

Financial review

The church has faced considerable expense in regard to the construction and completion of its new church centre. These costs have been met through the generosity of church members and grants from Trust Funds to whom the church has applied to for assistance.

Giving has remained at a strong level, and income is also received through Gift Aid claims, the leasing of the church’s units and the hiring out of rooms. Trustees have reintroduced cash giving during services to good effect (this had stopped during the COVID pandemic) and continues to encourage generosity from members in support of the Church’s mission.

The church reserves have been significantly drained as the church has met the costs of the new church centre. The trustees have agreed 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 and intend, when possible, for the reserve to be built back up to this amount.

The Trustees have 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

Hope Church Oswestry has converted from a Company Limited by Guarantee to a Charitable Incorporated Organisation (CIO).

The Trustees who served during the year and up to the date of signature of the financial statements were: J Price

B Jenkins Mrs M E Smith Mr C W Shaw (Appointed 16 May 2022)

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

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

..............................

B Jenkins

Date: .............................................

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 2023.

Responsibilities and basis of report

As the Trustees of the Charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Charity’s financial statements carried out under section 145 of 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.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by 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 now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with 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:

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

Column House London Road Shrewsbury Shropshire SY2 6NN United Kingdom

Dated: .........................

HOPE CHURCH OSWESTRY

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

Unrestricted Unrestricted
Restricted
funds
funds
funds
general
designated
2023
2023
2023
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
107,765
-
226,231
Other income
4
-
-
-
Investments
5
20,607
-
-
Other income
6
83,093
-
-
Total income
211,465
-
226,231
Expenditure on:
Raising funds
7
17,853
-
-
Charitable activities
8
94,481
-
67,459
Total resources expended
112,334
-
67,459
Net income for the year/
Net movement in funds
99,131
-
158,772
Fund balances at 1 April 2022
216,727
112,038
715,228
Fund balances at 31 March 2023
315,858
112,038
874,000
Total
2023
£
333,996
-
20,607
83,093
437,696
17,853
161,940
179,793
257,903
1,043,993
1,301,896
Total
2022
£
179,549
5,724
16,134
-
201,407
15,267
128,435
143,702
57,705
986,287
1,043,992

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

All income and expenditure derive from continuing activities.

HOPE CHURCH OSWESTRY

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
13
Investment properties
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Net assets
Income funds
Restricted funds
19
Unrestricted funds - designated
General unrestricted funds
2023
£
£
1,200,474
346,951
1,547,425
5,500
127,819
133,319
(105,443)
27,876
1,575,301
(273,405)
1,301,896
874,000
112,038
315,858
1,301,896
2022
£
£
577,278
346,951
924,229
7,857
410,761
418,618
(28,837)
389,781
1,314,010
(270,018)
1,043,992
715,228
112,038
216,726
1,043,992

The financial statements were approved by the Trustees on .........................

..............................

B Jenkins Trustee

HOPE CHURCH OSWESTRY

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

1 Accounting policies

Charity information

Hope Church Oswestry is a chairtable incorporated organisation registered with the Charity Commission of England and Wales.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's [governing document], the Charities Act 2011, 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 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 Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts 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 2023

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 the statement of financial activities.

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 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 payments 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.

HOPE CHURCH OSWESTRY

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

3 Donations and legacies

Unrestricted
Restricted
funds
funds
general
2023
2023
£
£
Donations and gifts
107,765
170,231
Grants
-
56,000
107,765
226,231
For the year ended 31 March 2022
92,407
87,142
Total
2023
£
277,996
56,000
333,996
Total
2022
£
179,549
-
179,549
179,549

4 Charitable activities

Other income Other income
2023 2022
£ £
Charitable activities income - 5,724

5 Investments

**Unrestricted ** Unrestricted
funds funds
general general
2023 2022
£ £
Rental income 20,607 16,134
Other income
Unrestricted Total
funds
general
2023 2022
£ £
Net gain on disposal of tangible fixed assets 83,093 -

6 Other income

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

7 Raising funds

Unrestricted
funds
general
2023
£
Investment management
17,853
17,853
Total
2022
£
15,267
15,267

8 Charitable activities

Activities
direct
2023
£
Staff costs
66,586
Depreciation and impairment
-
Church running costs
33,815
Mission
-
Property running costs
670
Telephone
-
Printing, postage and stationery
-
Subscriptions
-
Sundry expenses
-
Mortgage interest
15,599
116,670
116,670
Analysis by fund
Unrestricted funds - general
70,144
Restricted funds
46,526
116,670
For the year ended 31 March 2022
Unrestricted funds - general
46,651
Restricted funds
41,662
88,313
Grant
funding
2023
£
-
-
-
10,332
-
-
-
-
-
-
10,332
10,332
10,332
-
10,332
12,027
-
12,027
Support
costs
2023
£
-
20,647
-
-
2,303
859
3,034
2,590
5,505
-
34,938
34,938
14,005
20,933
34,938
28,095
-
28,095
Total
2023
£
66,586
20,647
33,815
10,332
2,973
859
3,034
2,590
5,505
15,599
161,940
161,940
94,481
67,459
161,940
Total
2022
£
54,497
8,350
30,474
12,027
6,486
699
1,175
4,415
6,970
3,342
128,435
128,435
86,773
41,662
128,435
86,773
41,662
128,435

9 Examination fee

The cost of the Indenpendent Examination for the year is £790

HOPE CHURCH OSWESTRY

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

10 Trustees

One trustee, Mr C Shaw was remunerated as pastor during the year and received salary of £31,579 (2022none). He received no remuneration for his role as trustee.

One trustee, Mr D Hughes, was remunerated as pastor during the previous year and received a salary of £21,908. He received no reimbursement of expenses for his role as trustee.

No other trustees were reimbursed for expenses during the year (2022 - none).

11 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Employees 4 3
Employment costs 2023 2022
£ £
Wages and salaries 63,393 51,037
Social security costs - 61
Other pension costs 1,917 2,372
65,310 53,470

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

12 Taxation

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

HOPE CHURCH OSWESTRY

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

13
Tangible fixed assets
Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022
14
Investment property
Fair value
At 1 April 2022 and 31 March 2023
Freehold
property
Fixtures and
fittings
£
£
650,606
6,657
785,151
-
(206,475)
-
1,229,282
6,657
74,325
6,571
20,334
86
(65,168)
-
29,491
6,657
1,199,791
-
576,281
86
Computers
£
29,199
-
-
29,199
28,288
228
-
28,516
683
911
Total
£
686,462
785,151
(206,475)
1,265,138
109,184
20,648
(65,168)
64,664
1,200,474
577,278
2023
£
346,951

Investment property comprises commercial property known as Marketgates, Oswestry.

15 Debtors

Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
2023
£
4,734
766
5,500
2022
£
6,767
1,090
7,857

HOPE CHURCH OSWESTRY

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

16 Loans and overdrafts

Bank loans
Other loans
Payable within one year
Payable after one year
Creditors: amounts falling due within one year
Notes
Bank loans
16
Other borrowings
Other creditors
Accruals and deferred income
Creditors: amounts falling due after more than one year
Notes
Bank loans
16
2023
£
284,164
10,000
294,164
20,759
273,405
2023
£
10,759
10,000
37,394
47,290
105,443
2023
£
273,405
2022
£
296,677
-
296,677
26,659
270,018
2022
£
26,659
-
-
2,178
28,837
2022
£
270,018

17 Creditors: amounts falling due within one year

18 Creditors: amounts falling due after more than one year

19 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 2021 resources expended 1 April 2022 resources expended
31
March 2023
£ £ £ £ £ £ £
Building Fund 658,656 48,822 (3,342) 704,136 191,791 (35,934) 859,993
Local
Outreach 11,092 38,320 (38,320) 11,092 34,440 (31,525) 14,007
669,748 87,142 (41,662) 715,228 226,231 (67,459) 874,000

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 2023

20
Analysis of net assets between funds
Fund balances at 31 March 2023 are represented
by:
Tangible assets
Investment properties
Current assets/(liabilities)
Long term liabilities
General
Designated
Restricted
2023
2023
2023
£
£
£
277,223
112,038
811,213
-
-
346,951
38,635
-
(10,759)
-
-
(273,405)
315,858
112,038
874,000
Total
2023
£
1,200,474
346,951
27,876
(273,405)
1,301,896
General
Designated
Restricted
2022
2022
2022
£
£
£
996
112,038
464,244
-
-
346,951
215,730
-
174,051
-
-
(270,018)
216,726
112,038
715,228
Total
2022
£
577,278
346,951
389,781
(270,018)
1,043,992

HOPE CHURCH OSWESTRY

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

21 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).