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← Hope Church Oswestry

2024-03-31-accounts

Charity registration number 1102481

HOPE CHURCH OSWESTRY

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

HOPE CHURCH OSWESTRY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Christopher Shaw Mary Smith Benjamin Jenkins Johanne Price Temitope Olusi Philip Green Robert Buckeridge

(Appointed 17 January 2024) (Appointed 17 January 2024) (Appointed 17 January 2024)

Charity number 1102481

Independent examiner

Border Accountants 5 Lower Brook Street Oswestry Shropshire SY11 2HG

HOPE CHURCH OSWESTRY

CONTENTS

Page
Trustees' 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

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2024

The Trustees present their annual report and financial statements for the year ended 31 March 2024.

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)" (effective 1 January 2019).

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.

Public benefit

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

Achievements and performance

Significant activities and achievements against objectives

Hope Church celebrated the opening of its new church centre in July 2023. The new premises, in the heart of Oswestry, will greatly advance the church in its life and mission, and have provided a larger and more accessible space for worship, alongside modern facilities to support the church in its growing engagement with the local community. The new premises and the church’s other existing rooms are also available to hire to local individuals, businesses and community groups.

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 two baptism services in the period July 2023 – June 2024, baptising 6 adults and 5 young people. The church continues to stream its services online through YouTube and to maintain its online presence and witness through its website and social media platforms.

In addition:

HOPE CHURCH OSWESTRY

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

The Church currently employs:

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

Financial review

The Church appointed a new Treasurer, Anne Green, on January 17 2024, and created a new Finance Management Team to manage and oversee Church finances in consultation with the Trustees.

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 for assistance. The church also has a mortgage due to complete in December 2037. The church has seen growth in the size of the congregation and an increase in regular giving from members and attenders. The church also receives income through Gift Aid claims, the leasing of the church’s units and the hiring out of rooms. The Church held a successful Gift Day on March 17 2024.

The donations and income received have stabilised overall finances. Costs have been carefully controlled and the trustees plan to restore the reserves to £21,500 over the first half of the financial year commencing April 1 2024.

Reserves policy

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Structure, governance and management

The Charity is constituted as a Charitable Incorporated Organisation.

The Trustees who served during the year and up to the date of signature of the financial statements were: Christopher Shaw Mary Smith Benjamin Jenkins Johanne Price Temitope Olusi (Appointed 17 January 2024) Philip Green (Appointed 17 January 2024) Robert Buckeridge (Appointed 17 January 2024)

Recruitment and appointment of trustees

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.

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

.............................. Benjamin 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 2024.

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 the Institute of Chartered Accountants in England and Wales, 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.

J M Ollier FCA

Border Accountants 5 Lower Brook Street Oswestry Shropshire SY11 2HG

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

HOPE CHURCH OSWESTRY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income and endowments from:
Donations and legacies
3
190,134
116,139
Investments
4
25,694
-
Other income
5
-
-
Total income
215,828
116,139
Expenditure on:
Raising funds
6
12,274
-
Charitable activities
7
152,106
24,716
Total expenditure
164,380
24,716
Net income and movement in
funds
51,448
91,423
Reconciliation of funds:
Fund balances at 1 April 2023
427,896
874,000
Fund balances at 31 March
2024
479,344
965,423		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
306,273
107,765
226,231
25,694
20,607
-
-
83,093
-
331,967
211,465
226,231
12,274
17,853
-
176,822
94,481
67,459
189,096
112,334
67,459
142,871
99,131
158,772
1,301,896
328,764
715,228
1,444,767
427,895
874,000		 Total
2023
£
333,996
20,607
83,093
437,696
17,853
161,940
179,793
257,903
1,043,992
1,301,895

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 2024

Notes
Fixed assets
Tangible assets
13
Investment property
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 excluding pension liability
Net assets
The funds of the Charity
Restricted income funds
20
Unrestricted funds		 2024
£
£
1,320,977
346,951
1,667,928
5,040
63,775
68,815
(35,985)
32,830
1,700,758
(255,991)
1,444,767
1,444,767
965,423
479,344
1,444,767		 2023
£
£
1,200,474
346,951
1,547,425
5,500
127,818
133,318
(105,443)
27,875
1,575,300
(273,405)
1,301,895
1,301,895
874,000
427,895
1,301,895

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

.............................. Benjamin Jenkins

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

Charity information

Hope Church Oswestry is a Charitable 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 Articles and Memorandum, 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 or grantors 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 2024

1 Accounting policies

(Continued)

1.5 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 are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 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.

1.7 Investment property

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.

1.8 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).

1.9 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.

1.10 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.

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

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.

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.

1.11 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.

1.12 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 2024

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations and gifts
190,134
110,139
Grants
-
6,000
190,134
116,139		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
300,273
107,765
170,231
6,000
-
56,000
306,273
107,765
226,231		 Total
2023
£
277,996
56,000
333,996

4 Income from investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Rental income 25,694 20,607
5 Other income
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Net gain on disposal of assets - 83,093
6 Expenditure on raising funds
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Investment management 12,274 17,853

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

7
Expenditure on charitable activities
Activities
direct
Grant
funding
Total
Activities
direct
2024
2024
2024
2023
£
£
£
£
Direct costs
Staff costs
71,973
-
71,973
66,586
Depreciation and
impairment
38,999
-
38,999
20,647
Church running costs
33,366
-
33,366
36,849
Property running costs
3,527
-
3,527
2,973
Telephone
331
-
331
859
Subscriptions
2,744
-
2,744
2,590
Mortgage interest
17,644
-
17,644
15,599
Sundry expenses
-
-
-
5,505
168,584
-
168,584
151,608
Mission
-
8,238
8,238
-
168,584
8,238
176,822
151,608
Analysis by fund
Unrestricted funds -
general
143,868
8,238
152,106
84,149
Restricted funds
24,716
-
24,716
67,459
168,584
8,238
176,822
151,608
8
Grants payable
Mission
-
9
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Depreciation of owned tangible fixed assets		 Grant
funding
2023
£
-
-
-
-
-
-
-
-
-
10,332
10,332
10,332
-
10,332
Grant
funding
2024
£
8,238
2024
£
38,999		 Total
2023
£
66,586
20,647
36,849
2,973
859
2,590
15,599
5,505
151,608
10,332
161,940
94,481
67,459
161,940
Grant
funding
2023
£
10,332
2023
£
20,648

10 Trustees

One trustee, Mr C Shaw was remunerated as pastor during the year and received a salary of £35,657 and employer pension contributions of £3,908 (2023 - Salary of £31,579 and pension contributions of £1,358). He received no remuneration for his role as trustee.

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

11 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Other pension costs		 2024
Number
3
2024
£
66,997
4,976
71,973		 2023
Number
4
2023
£
64,669
1,917
66,586

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

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

13 Tangible fixed assets

Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 1 April 2023
1,229,282
6,657
Additions
113,668
44,462
At 31 March 2024
1,342,950
51,119
Depreciation and impairment
At 1 April 2023
29,491
6,657
Depreciation charged in the year
37,974
-
At 31 March 2024
67,465
6,657
Carrying amount
At 31 March 2024
1,275,485
44,462
At 31 March 2023
1,199,791
-		 Computers
£
29,199
1,372
30,571
28,516
1,025
29,541
1,030
683		 Total
£
1,265,138
159,502
1,424,640
64,664
38,999
103,663
1,320,977
1,200,474

14 Investment property

2024
£
Fair value
At 1 April 2023 and 31 March 2024 346,951

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

(Continued)
14
Investment property
(Co
Investment property comprises commercial property known as Market Gates, Oswestry.
15
Debtors
2024
Amounts falling due within one year:
£
Other debtors
3,495
Prepayments and accrued income
1,545
5,040
16
Loans and overdrafts
2024
£
Bank loans
268,866
Other loans
-
268,866
Payable within one year
12,875
Payable after one year
255,991		 ntinued)
2023
£
4,734
766
5,500
2023
£
284,164
10,000
294,164
20,759
273,405

The long-term loans are secured by fixed charges over the property of Hope Church Oswestry.

17 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		 2024
£
12,875
-
20,000
3,110
35,985
2024
£
255,991		 2023
£
10,759
10,000
37,394
47,290
105,443
2023
£
273,405

18 Creditors: amounts falling due after more than one year

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

19 Retirement benefit schemes
2024 2023
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes 4,976 1,917

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

20 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 April Incoming Resources At 31 March
2023 resources expended 2024
£ £ £ £
Building fund 859,993 110,761 (19,338) 951,416
Smaller funds 14,007 5,378 (5,378) 14,007
874,000 116,139 (24,716) 965,423
Previous year: At 1 April Incoming Resources At 31 March
2022 resources expended 2023
£ £ £ £
Building fund 704,136 191,791 (35,934) 859,993
Smaller funds 11,092 34,440 (31,525) 14,007
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 2024

21 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

Building designated fund
General funds
Previous year:
Building designated fund
General funds		 At 1 April
2023
Incoming
resources
Resources
expended
At 31 March
2024
£
£
£
£
112,038
-
(2,241)
109,797
315,858
215,828
(162,139)
369,547
427,896
215,828
(164,380)
479,344
At 1 April
2022
Incoming
resources
Resources
expended
At 31 March
2023
£
£
£
£
112,038
-
-
112,038
216,726
211,465
(112,334)
315,857
328,764
211,465
(112,334)
427,895

22 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
At 31 March 2024:
Tangible assets
426,514
894,463
Investment properties
-
346,951
Current assets/(liabilities)
52,830
(20,000)
Long term liabilities
-
(255,991)
479,344
965,423
Unrestricted
Restricted
funds
funds
2023
2023
£
£
At 31 March 2023:
Tangible assets
389,261
811,213
Investment properties
-
346,951
Current assets/(liabilities)
38,634
(10,759)
Long term liabilities
-
(273,405)
427,895
874,000		 Total
2024
£
1,320,977
346,951
32,830
(255,991)
1,444,767
Total
2023
£
1,200,474
346,951
27,875
(273,405)
1,301,895

HOPE CHURCH OSWESTRY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

23 Related party transactions

There were no disclosable related party transactions during the year (2023 - none).