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2021-08-31-accounts

TRINITY CHURCH BRENTWOOD (a company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

Charity Number: 1112705 Company Number (England and Wales): 05642162

TRINITY CHURCH BRENTWOOD

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

CONTENTS Page
Reference and administrative details 1
2
Independent
report		 8
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14

TRINITY CHURCH BRENTWOOD

FOR THE YEAR ENDED 31 AUGUST 2022

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHURCH

Trustees/Directors Lelia Bailey
Juan Esquivel
Liviu Mercioniu
Omolade Oshunremi
Casian Sala (Chair)
Tirrian Sharp
Wesley Vaughan
Christopher Whealy
Registered office address Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Auditors Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Bankers Barclays Bank plc
Broadgate Corporate Banking Centre
155 Bishopsgate
London
EC2M 3XA
Charity registration number 1112705
Company registration number 05642162 (England and Wales)

1

TRINITY CHURCH BRENTWOOD

FOR THE YEAR ENDED 31 AUGUST 2022

The Board of Trustees present the statutory report with the accounts of Trinity Church Brentwood for the year ended 31 August 2022.

memorandum and articles of association, applicable laws and the requirements of the Statement of Recommended Practice for Charities (SORP) (Second Edition, effective 1 January 2019), the Companies Act 2006 and with FRS 102.

1. TRUSTEES

The Trustees (who are also directors of Trinity Church Brentwood for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company of its incoming resources and the application of those resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and taking any such reasonable steps to prevent and detect fraud or other irregularities.

Provision of information to auditors

So far as each of the trustees is aware at the time the report is approved:

Trustee and employee liability insurance

Trustees and employee liability insurance has been purchased by the charity as permitted by the Charity Commission

Trustee recruitment, induction and training

Trustees are nominated by the Church congregation, candidates are screened and formally approved for appointment by the Trustee Board. All new Trustees are provided with information on the duties and responsibilities of being a Trustee.

All Trustees are encouraged to undertake continuation training from time to time, including attending relevant courses and seminars held within and outside the charity. The Trustees are also kept informed on charity sector issues by professional advisors, fact sheets and newsletters from auditors.

2

TRINITY CHURCH BRENTWOOD

FOR THE YEAR ENDED 31 AUGUST 2022

Remuneration of key management personnel

The trustees recognise that as a board, they comprise the key management personnel of the charity in charge of directing, controlling, running and operating the Charity on a day to day basis. With the exception of Rev Wesley Vaughan who, as a minister of religion, is permitted by the Articles of Association to be remunerated, all trustees give their time freely and no trustee has received any remuneration in the year.

2. STRUCTURE, GOVERNANCE AND MANAGEMENT

The Board of Trustees sets the overall strategic policy framework and budget of the charity and is responsible for safeguarding its assets. The Trustees usually meet formally on a fortnightly basis. Discussions and resolutions agreed within meetings are recorded in the meeting minutes. The Trustees have also held formal meetings with the Leadership Group.

The Board has delegated responsibility for the day-to-day management to the following department heads:

Public Benefit

Charity Commission. The manner in which it fulfils this obligation is detailed in the sections below.

Principal aims and activities Mission Statement

We are a family church. We believe in people coming face to face with the reality of the living, miracle-working God. With the Bible as our touchstone, we proclaim the Gospel of Jesus Christ to all, teaching the principles of God and equipping people old and young to fulfil His purposes.

Christian values through the advancement of religion and the propagation and furtherance of the Gospel of God concerning His Son Jesus Christ and the preaching and teaching of the Word of God.

3. OBJECTIVES & ACTIVITIES

The governing document is the memorandum and articles of association last amended in March 2019. The objects of the charity are the advancement of religion and the propagation and furtherance of the Gospel of God concerning his son Jesus Christ and the preaching and teaching of the Word of God throughout the world.

Our main strategic objectives are:

The Trustees keep the activities under continual review to ensure that we are achieving our main aim of reaching people with the gospel.

3

TRINITY CHURCH BRENTWOOD

FOR THE YEAR ENDED 31 AUGUST 2022

4. ACHIEVEMENTS AND PERFORMANCE

Pastoral Report

Trinity Church is a gathering of believers in Jesus Christ from the Brentwood and surrounding district. This church is aligned with the Elim denomination through its association with Elim Network.

The purposes of Trinity Church encompass a number of areas:

6) To observe th

10) To provide needs-led leadership and departments, to promote the work of God at home and abroad in preaching, teaching pastoral care and social assistance/ministries.

Review of progress and achievements:

Pastor, along with the church leadership team have provided the overall spiritual oversight of the church. The year of 2022 has seen the continuing implementation and embedding of the purposes throughout the life of the church. In summary, the purposes are to:

  1. Reach people for Jesus (Reach)

  2. Raise them to Christlike maturity (Raise)

  3. Release them for ministry in the church and the world in which they engage (Release)

Hybrid weekly online/in-person church services continue to operate, however, since Covid restrictions have been lifted, departments such as the prayer meetings, departmental meetings, leadership and trustees meetings have returned to in-person gatherings.

Pastoral care has been delivered to the congregation through attendance of those at the weekly Sunday meetings, Wednesday night prayer meetings, additional midweek departmental meetings and training opportunities for the church. In addition, the congregation has had the opportunity to meet the Pastor and leadership team individually or as a collective team. These meetings have been delivered in person, via online or by phone. Such pastoral meetings have helped to deepen the connection of trust with the Pastor/the leadership team and the congregation and provide opportunities for discipleship and pastoral care. These meetings are scheduled to continue in perpetuity.

Pastoral home and hospital visiting has also taken place upon request and has been delivered by both the pastor and the leadership team or designated other departmental leaders.

All departments in 2021/2022 have received up to date training around the purposes of the church. In 2022, a new Youth Pastor was appointed to lead and oversee the restructuring of the youth department aiming to meet the spiritual needs across the youth spectrum.

The local education charity, Brentwood Schools Christian Worker Trust have taken up residency in a Trinity Church building (the former nursery site) aiming to strengthen our connection with the district schools.

The Pastor and the leadership have also engaged with the wider Brentwood Christian community through supporting: Foodbank, Brentwood Schools Christian Workers Trust, Little Doves Christian Pre-School, Brentwood Churches Together and the minister fraternals.

4

TRINITY CHURCH BRENTWOOD

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

Trustees’ activities

With the implementation of the leadership team, the trustees have now been released to focus on their compliance and charity-driven activities in line with the spiritual purposes of the church. The trustees will continue to work on shaping the relationship between the leadership team and trustee board and continue to establish open communication and accountability through the Terms of Reference.

Together with the leadership team we have worked together to release several donations to other charities within the Brentwood community and beyond.

Considering the level of our reserves, the trustees engaged with charity specialist providers to create an investment policy, with the purpose of protecting the capital and generating surplus that we intend to use in line with the church purposes. The same provider has been retained to work with the trustees in appointing and monitoring the investment made.

The trustees, together with the leadership team, have evaluated the best use of the large, Grade II listed building in line with the church purposes. The trustees appointed planning consultants to propose plans for making the building viable, activity which is ongoing.

The church has continued to receive strong and committed donations. Church growth has also resulted in an increased amount of people giving to the church. We have updated the risk register on this matter. However, we recognise that pandemic longer-term impacts, along with the recession and energy costs increases may cause a drop in member’s income and affect the overall level of donations. We are monitoring the situation on a monthly basis and we will be able to respond in a timely manner to our expenditure as necessary.

An Operations Manager has been appointed to manage the day to day running of the Trinity Church site, including the grounds, the church and other related events, functions and resources. This role will work closely with the Trustee Board, the Church Leadership Team, the operational team, and volunteers, as well as having regular interaction with the church congregation. The Operations Manager role is therefore integral to the life and work of Trinity Church, in the advancement of the Christian faith.

In addition, an Office Administrator was appointed to support the Operations Manager in the delivery of operations relating to the Trinity Church site.

Ongoing safeguarding training for department leaders and volunteers has also taken place. Additional training in Food hygiene has been provided and training in relevant skills supported as needed.

Other achievements

We continue to make the ‘Fellowship Hall’ available to various social outreach initiatives. We have also allowed other church congregations to use the main church for funerals, Christian comedian, concerts etc.

The swimming pool was reopened in 2022 and used along with the outdoor grounds throughout the summer by Trinity church attendees and their guests.

5. FINANCIAL REVIEW

The charity recorded a deficit for the year of £793,975 compared with a surplus of £4,489,687 in 2021, mainly driven by the gain on disposal from the sale of Brizes Park in 2021. Total income from church activities was £338,996, a fall of £22,932 (ignoring Brizes Park).

Expenditure increased from £613,790 in 2021 to £668,071. The Trustees will continue to review the costs of its activities with the aim of increasing efficiency and focusing on those areas that maximise the public benefit.

5

TRINITY CHURCH BRENTWOOD

FOR THE YEAR ENDED 31 AUGUST 2022

Reserves policy

At the year end, the charity had free reserves, defined as unrestricted funds less those tied up in fixed assets, restricted and designated funds, of £4,579,759 (2021: £5,396,737). During the financial year, the charity made various donations totalling £272,207 towards Christian education and other charitable causes. The other significant reduction in reserves was attributed to the loss of £464,900 on the investments made.

The trustees continually review their working capital needs and will continue to monitor the free reserves position to ensure that the charity continues to have a firm base from which to pursue its objectives.

Principal Risks and uncertainties

Risk management

The Board of Trustees has ensured that the process of identifying, assessing and mitigating risk is linked to the objectives of Trinity Church Brentwood and assessed regularly. The process covers key risk areas, and risk management is ongoing and embedded within its management and operating procedures. The process covers all areas of risk - financial, governance, operational and reputational, and is focused primarily on major risks.

The Trustees are satisfied that systems are in place to mitigate any exposure to major risks but recognise the need to review and make appropriate changes to its governance arrangements. The principal risks and uncertainties identified by the charity are as follows:

1. Church site

There has been restricted investment into the Church estate over a sustained period, resulting in operational limitations and raising the risk profile associated with health and safety and security. The Church continues to maintain a register of operational works required. Health and safety is monitored by the Operations Manager and continues to be a priority. An external Health and Safety Advisor provides external monitoring of Health and Safety as well as to provide advice on new legislation and promote better adherence to safe working practices. An external advisor provides HR support to ensure employment legislation and procedures are up to date and complied with.

2. Investment portfolio

The Board has a legal duty to ensure the funds held by the Charity are invested wisely and in line with the vision and purposes of the Church. Epoch Consulting was engaged and the ethical investment policy is now in place to safeguard the long term investment strategy. The Board will continue to monitor the portfolio against peer group benchmark and based on the advice provided by the investment managers.

6. FUTURE PLANS

We are committed to being a welcoming church, serving both its congregation and also seeking appropriate opportunities to serve those in the local and wider community.

We will continue to strengthen and develop links with other local churches for the mutual benefit of spiritual edification, and to combine efforts to support the needs of our community, either providing direct support or through partnering with associated charities.

Together with our Senior Pastor and leadership team, the trustees will be seeking to set in place a clear governance structure, defining the church ministry and trusteeship roles and responsibilities and the mutual accountability between them.

6

TRINITY CHURCH BRENTWOOD

FOR THE YEAR ENDED 31 AUGUST 2022

THANKS

Our divine purposes and seeking to fulfil His will in what we do.

APPROVAL

In preparing this report the Trustees have taken advantage of the exemptions available to small companies by the Companies Act.

This report was approved by the Trustees on

2023 and signed on their behalf, by:

Casian Sala

Trustee

7

Opinion

We have audited the financial statements of Trinity Church Brentwood for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. cial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the . Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

has been prepared in accordance with applicable legal requirements.

8

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the (which incorporat

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

2, the trustees (who are also the directors

of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

e

as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

r the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material ur opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to Charity law, employment law, health and safety regulations, safeguarding and GDPR, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the reporting requirements under the Charities SORP and FRS 102, the Companies Act 2006, the Charities Act 2011 and payroll taxes.

financial statements (including

the risk of override of controls), and determined that the principal risks were related to improper recognition of income and management bias in accounting estimates and judgements. Audit procedures performed by the engagement team included:

9

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Counc www.frc.org.uk/auditorsresponsibilities.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Askew (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London EC1R 4AG

3

10

TRINITY CHURCH BRENTWOOD

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted Designated Restricted Total Total
Funds Funds Funds 2022 2021
Notes £ £ £ £ £
INCOME FROM:
Charitable activities: -
Donations 295,905 - 24,154 320,059 286,181
Investment income 3,607 - - 3,607 4,178
Lettings income 10,414 - - 10,414 21,299
Other income 4,916 - - 4,916 4,406
Surplus on sale of fixed assets - - - - 4,787,413
------------------- ---------------- ------------------ ------------------- -------------------
Total income 2 314,842 - 24,154 338,996 5,103,477
-------------------- ---------------- ----------------- ------------------- -------------------
EXPENDITURE ON:
Charitable activities:-
Church 605,502 36,460 24,285 666,247 591,309
Conferences and Events 1,779 - - 1,779 1,498
Book Shop 45 - - 45 20,983
-------------------- ----------------- -------------------- -------------------- --------------------
Total expenditure 2 607,326 36,460 24,285 668,071 613,790
-------------------- ---------------- --------------------- -------------------- --------------------
Net (expenditure)/income (292,484) (36,460) (131) (329,075) 4,489,687
Losses on investments 5 (464,900) - - (464,900) -
--------------------- ---------------- ----------------- -------------------- --------------------
(757,384) (36,460) (131) (793,975) 4,489,687
Transfers between funds 9,10 (24,683) 24,683 - - -
--------------------- ---------------- ----------------- -------------------- --------------------
Net movement in funds (782,067) (11,777) (131) (793,975) 4,489,687
Funds brought forward 6,986,004 39,117 6,173 7,031,294 2,541,607
--------------------- ---------------- ----------------- ------------------- -------------------
Funds carried forward 6,203,937 27,340 6,042 6,237,319 7,031,294
=========== ======== ======== ========= =========

There were no recognised gains and losses other than those included above.

The accompanying accounting policies and notes form an integral part of these financial statements.

Full comparatives are shown in note 14.

All the activities above relate to continuing activities.

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COMPANY NUMBER: 05642162

TRINITY CHURCH BRENTWOOD

BALANCE SHEET

FOR THE YEAR ENDED 31 AUGUST 2022

2022 2021
Notes £ £ £ £
FIXED ASSETS
Tangible assets 4 1,627,178 1,589,267
Investment assets 5 4,035,100 -
------------------- -------------------
5,662,278 1,589,267
CURRENT ASSETS
Debtors 6 19,727 13,703
Cash at bank and in hand 688,764 5,567,213
----------------- -----------------
708,491 5,580,916
CREDITORS: amounts falling due
within one year 7 (133,450) (138,889)
----------------- -----------------
NET CURRENT ASSETS 575,041 5,442,027
------------------- -------------------
NET ASSETS 6,237,319 7,031,294
========== ==========
RESERVES
Unrestricted funds 8 6,203,937 6,986,004
Designated funds 9 27,340 39,117
Restricted funds 10 6,042 6,173
-------------------- --------------------
6,237,319 7,031,294
========== ==========

The financial statements are prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the Board of Trustees on 2023 and were signed below on its behalf by:

Casian Sala

Trustee

The accompanying accounting policies and notes form an integral part of these financial statements.

12

TRINITY CHURCH BRENTWOOD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2022

Note 2022 2021
£ £
Cash flows from operating activities A (294,200) (450,938)
------------------- -------------------
Cash flows from investing activities
Interest income 3,607 4,178
Interest paid (1,897) (2,254)
Purchase of tangible fixed assets (85,401) (85,267)
Purchase of investment assets (4,500,000) -
Sale of tangible fixed assets - 6,083,179
------------------- -------------------
Cash flows from investing activities (4,583,691) 5,999,836
Cash flows from financing activities
Repayment of bank loans (558) (107,797)
------------------- -------------------
(Decrease)/increase in cash and cash equivalents in the year (4,878,449) 5,441,101
------------------- -------------------
Cash and cash equivalents at the beginning of the year 5,567,213 126,112
------------------- -------------------
Total cash and cash equivalents at the end of the year 688,764 5,567,213
========== ==========
A: RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING FLOW FROM OPERATING
ACTIVITIES
2022 2021
£ £
Net (expenditure)/income for the reporting period (793,975) 4,489,687
Adjustments for:
Investment income (3,607) (4,178)
Interest paid 1,897 2,254
Depreciation charge 47,490 38,668
Surplus of sale of fixed assets - (4,787,413)
Losses on investment assets 464,900
Decrease in stock - 19,068
(Increase)/decrease in debtors (6,024) (1,595)
Increase/(decrease) in creditors (4,881) (207,429)
------------------- -------------------
Cash flows from operating activities (294,200) (450,938)
========= ==========
B: ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)
At start Cash At end
of year Flows of year
Bank accounts 5,567,213 (4,878,449) 688,764
Loans < 1 year (4,841) 559 (4,282)
------------------ ------------------ ------------------
5,562,372 (4,877,890) 684,482
========= ========= =========

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TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES

BASIS OF PREPARATION

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Statement of Recommended Practice for Charities (SORP) (Second Edition, effective 1 January 2019) and the Companies Act 2006.

The accounting policies set out below have been applied in preparing these financial statements. The financial statements are drawn up under the historical cost convention.

The Charity is a Public Benefit Entity registered as a charity and company in England and Wales, it was registered on 1 December 2005 (charity number 1112705 and company registration number 05642162).

Going concern

Having reviewed the funding facilities available to the Charity together with the future projected cash flows, the Trustees have a reasonable expectation that the Charity has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the Charity to adopt the going concern basis in preparing the financial statements.

Donations and gifts

All monetary donations and gifts are included in full in the statement of financial activities when receivable, provided that there are no donor-imposed restrictions as to the timing of the related expenditure, in which case recognition is deferred until the pre-condition has been met.

Legacies are included in the statement of financial activities when the charity is advised by the personal representative of an estate that payment will be made and the amount involved can be quantified.

Donations under Gift Aid together with the associated income tax recoveries are credited as income when the donations are receivable.

Investment income

Investment income, including associated income tax recoveries, is recognised when receivable.

Expenditure

Expenditure is accounted for on an accruals basis. The irrecoverable element of VAT is included with the item of expense to which it relates.

iciaries. Governance costs comprise the costs of running the charity, including strategic planning for its future development, internal and external audit, and costs of complying with constitutional and statutory requirements.

Fund accounting

Restricted funds are funds used for purposes as specified by the donor. Related expenditure is charged direct to the fund.

Unrestricted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the charity. Designated funds are unrestricted funds earmarked by the Trustees for specific projects.

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TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES (continued)

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost net of depreciation. Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets other than freehold land over their estimated useful economic lives.

The rates generally applicable are:

Freehold properties 2% straight line Freehold improvements 2-10% straight line Plant and equipment 10% straight line Furniture and fittings 10% straight line Motor vehicles 25% reducing balance Computer equipment 33.3% straight line

Leased assets

Assets held under finance leases and hire purchase contracts are capitalised in the balance sheet and depreciated over their expected useful lives. The interest element of leasing payments represents a constant proportion of the capital balance outstanding and is charged to the statement of financial activities over the period of the lease.

All other leases are regarded as operating leases and the payments made are charged to the statement of financial activities on a straight line basis over the lease term.

Taxation

By virtue of its charitable status, Trinity Church Brentwood is not liable for corporation tax on its charitable activities under the Corporation Taxes Act 2010.

Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Investments are valued at their market value on the balance sheet date. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

Debtors

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

Creditors

Creditors 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 are normally recognised at their settlement amount after allowing for any trade discounts due.

Employee benefits

Pensions

The charity contributes into a Defined Contribution Pension Scheme on behalf of its paid employees. The pension costs charged against incoming resources are the employer's contributions to employee's own private pension scheme in the accounting period. Other than these contributions, the Charity has no liability to these schemes.

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TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES (continued)

Critical judgements and estimates

In the application of the accounting policies, the Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. The trustees consider that the only critical estimate or judgement relate to the estimation of the useful economic lives of fixed assets.

2. ANALYSIS OF INCOME AND EXPENDITURE

Conferences Book Total
Church and Events Shop Designated Restricted Total 2022 2021
£ £ £ £ £ £ £
Income
Donations and legacies 295,905 - - - 24,154 320,059 279,946
Furlough Receipts - - - - - - 6,235
Investment income 3,607 - - - - 3,607 4,178
Lettings income 10,414 - - - - 10,414 21,299
Other income 2,348 - 2,568 - - 4,916 4,406
Surplus on sale of fixed
assets - - - - - - 4,787,413
------------------ ------------------ ----------------- ------------------- --------------------- -------------------- --------------------
Total income 312,274 - 2,568 - 24,154 338,996 5,103,477
Expenditure
Staff costs 118,682 - - - - 118,682 173,821
Premises and equipment 128,771 - - - - 128,771 80,315
Operating costs 56,319 - 45 - - 56,364 83,768
Depreciation 47,491 - - - - 47,491 38,668
Finance costs 1,897 - - - - 1,897 2,254
Governance 30,841 - - - - 30,841 51,195
Other costs 10,039 1,779 - - - 11,818 5,146
------------------ ------------------ ---------------- ---------------- ------------------ -------------------- --------------------
394,040 1,779 45 - - 395,864 435,167
Grants and donations 211,462 - - 36,460 24,285 272,207 178,623
------------------- ------------------- ----------------- ------------------- -------------------- -------------------- --------------------
Total expenditure 605,502 1,779 45 36,460 24,285 668,071 613,790
------------------ ------------------ ----------------- ------------------ ------------------- -------------------- --------------------
Net (expenditure)/
income (293,228) (1,779) 2,523 (36,460) (131) (329,075) 4,489,687
========= ========= ======== ========= ========= ========= =========

16

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

2. ANALYSIS OF INCOME AND EXPENDITURE (continued)

Conferences Book
Church and Choir Shop Designated Restricted Total 2021
£ £ £ £ £ £
Income
Donations and legacies 279,946 - - - - 279,946
Furlough Receipts 6,235 - - - - 6,235
Investment income 4,178 - - - - 4,178
Lettings income 21,299 - - - - 21,299
Other income 728 - 3,678 - - 4,406
Surplus on sale of fixed
assets 4,787,413 - - - - 4,787,413
------------------ ------------------ ----------------- ------------------- --------------------- --------------------
Total income 5,099,799 - 3,678 - - 5,103,477
Expenditure
Staff costs 173,821 - - - 173,821
Premises and equipment 80,315 - - - 80,315
Operating costs 62,785 20,983 - - 83,768
Depreciation 38,668 - - - 38,668
Finance costs 2,254 - - - 2,254
Governance 51,195 - - - 51,195
Other costs 3,648 1,498 - - - 5,146
------------------ ------------------ ---------------- ---------------- ------------------ --------------------
412,686 1,498 20,983 - - 435,167
Grants and donations 150,130 - - 28,362 131 178,623
------------------- ------------------- ----------------- ------------------- -------------------- --------------------
Total expenditure 562,816 1,498 20,983 28,362 131 613,790
------------------ ------------------ ----------------- ------------------ ------------------- --------------------
Net income/
(expenditure) 4,536,983 (1,498) (17,305) (28,362) (131) 4,489,687
========= ========= ======== ========= ========= =========

17

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

3. TRUSTEES AND EMPLOYEES 2022 2021
£ £
Staff costs during the period were as follows:
Gross salaries and wages 97,628 129,258
Social security costs 4,780 8,185
Pension costs 4,335 5,573
Benefits 959 1,146
Redundancy and termination payments - 17,170
Contract staff 10,980 12,489
------------------ --------------------
118,682 173,821
======== =========
2022 2021
Number Number
Ministry and ministry support 1 2
Administration 1 2
Premises and Other 1 1
------------ -----------
3 5
====== ======

No employees received emoluments exceeding £60,000 during the year (2021: None).

The charity contributed to a Defined Contribution Pension Scheme on behalf of the above employee during the prior financial year.

In 2022 and 2021 all key management members were Trustees and were unremunerated.

18

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

4. TANGIBLE FIXED ASSETS Land and Plant and Furniture Motor
Buildings Equipment and fittings Vehicles Total
£ £ £ £ £
Cost
At 1 September 2021 2,108,515 159,236 73,280 23,126 2,364,157
Additions - 42,625 42,776 - 85,401
---------------------- ----------------- ------------------ ----------------- ---------------------
At 31 August 2022 2,108,515 201,861 116,056 23,126 2,449,558
-------------------- ----------------- ----------------- ----------------- ---------------------
Depreciation
At 1 September 2021 616,065 69,589 66,534 22,702 774,890
Charge for the year 24,572 17,427 5,067 424 47,490
-------------------- ----------------- ----------------- ----------------- ---------------------
At 31 August 2022 640,637 87,016 71,601 23,126 822,380
-------------------- ------------------ ----------------- ----------------- --------------------
Net Book Value
At 31 August 2022 1,467,878 114,845 44,455 - 1,627,178
========== ======== ======== ======== ==========
At 31 August 2021 1,492,450 89,647 6,746 424 1,589,267
========== ======== ======== ======== ==========
5. INVESTMENT ASSETS 2022
£
At 1 September 2021 -
Additions 4,500,000
Losses during year (464,900)
------------------
At 31 August 2022 4,035,100
=========
Investments consist of quoted investments held on UK Stock Exchanges.
6. DEBTORS 2022 2021
£ £
Trade debtors 1,624 2,013
Prepayments and accrued income 15,603 8,690
Other debtors 2,500 3,000
---------------- ----------------
19,727 13,703
======== ========
7. CREDITORS: amounts falling due 2022 2021
within one year £ £
Trade creditors 8,238 15,383
Grants payable 100,000 100,000
Accruals 20,930 18,665
Bank loans 4,282 4,841
------------------ ------------------
133,450 138,889
========= ========

19

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

8. NET ASSETS BETWEEN FUNDS 2022 Unrestricted Designated Designated Restricted Restricted
Total
£ £ £ £
Fixed assets 1,627,178 - - 1,627,178
Investment assets 4,035,100 - - 4,035,100
Current assets 675,109 27,340 6,042 708,491
Current liabilities (133,450) - - (133,450)
------------------- ---------------- ------------------ --------------------
6,203,937 27,340 6,042 6,237,319
========= ======== ======== =========
NET ASSETS BETWEEN FUNDS 2021 Unrestricted Designated Restricted Total
£ £ £ £
Fixed assets 1,589,267 - - 1,589,267
Current assets 5,535,626 39,117 6,173 5,580,916
Current liabilities (138,889) - - (138,889)
------------------- -------------- -------------- --------------------
6,986,004 39,117 6,173 7,031,294
========= ======= ======= ==========
9. DESIGNATED FUNDS 2022 Opening Closing
Balance
Income		 Expenditure
Transfers
Balance
£ £ £ £
£
Special Projects fund 32,794 - (8,500) -
24,294
Mission Fund 6,323 - (27,960) 24,683
3,046
---------------
----------------		 ----------------- ---------------
---------------
39,117 - (36,460) 24,683
27,340
=======
==========		 ========= =========
========
10% of donations were transferred to the Mission Fund in 10% of donations were transferred to the Mission Fund in 2022 to be used for worthy causes 2022 to be used for worthy causes at the discretion of the
year-end balance is held in cash.
DESIGNATED FUNDS 2021 Opening Closing
Balance
Income		 Expenditure Transfers Balance
£ £ £ £ £
Special Projects fund 40,969 - (2,000) (6,175) 32,794
Mission Fund - - (22,962) 29,285 6,323
SNW Support - - (3,400) 3,400 -
--------------- ---------------- ----------------- --------------- ---------------
40,969 - (28,362) 26,510 39,117
======= ========== ========= ========= ========

20

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

10. RESTRICTED FUNDS 2022 Opening Closing
Balance Income Expenditure Transfers Balance
£ £ £ £ £
Medical Fund 3,709 - - - 3,709
Athletes in Action Fund 1,096 - (131) - 965
Choir Funds 1,368 - - - 1,368
Project Funds - 24,154 (24,154) - -
--------------- ---------------- ----------------- --------------- ---------------
6,173 24,154 (24,285) - 6,042
======== ======== ======== ======== ========

The Medical Fund represents donations received to be attributed to those who attend the church and are in need of financial assistance towards their medical bills.

The Athletes in Action Fund represents donations received to provide organised sporting activities to young people in the local community. Such activities to be regular, affordable and supported by adults from this and other local churches. Where the teaching and sharing of the Christian faith and lifestyle is integral to each sports session.

The Choir Fund represents donations received to help support the choir.

Project funds represent donations received towards specific projects each year,

The Bursary Fund (closed 2021) represented donations received from members of the church to provide financial assistance to parents who wish to send their children to the Trinity School. The Trustees work alongside a Bursary Committee to award the bursaries.

The School Nursery fund (closed 2021) represents donations received to be attributed to the work of the school nursery. The nursery was transferred to the Trinity Community Nursery (a charity) in 2019.

The Trinity Grounds Fund (2021) represents £1,000 received specifically for maintaining the Church grounds.

RESTRICTED FUNDS 2021
Opening Closing
Balance Income Expenditure Transfers Balance
£ £ £ £ £
Bursary Fund 9,323 - - (9,323) -
School Nursery 110 - - (110) -
Medical Fund 3,709 - - - 3,709
Athletes in Action Fund 1,227 - (131) - 1,096
Restricted Book Shop Funds (410) - - 410 -
Choir Funds 1,979 - - (611) 1,368
Trinity Grounds Fund 716 - - (716) -
--------------- ---------------- ----------------- --------------- ---------------
16,654 - (131) (10,350) 6,173
======== ======== ======== ======== ========

21

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

11. CAPITAL COMMITMENTS

There were £Nil capital commitments as at 31 August 2022 (2021 £Nil).

12. INDEMNITY INSURANCE

The trustees have taken up indemnity insurance to cover losses arising from any claims made against them by reason of any wrongful act in their capacity of trustees.

13. TRANSACTIONS WITH TRUSTEES AND OTHER RELATED PARTIES

The aggregate of donations received from trustees in the year was £28,620 (2021: £32,910).

No remuneration was paid to trustees during the year (2021: £Nil). Trustees were not reimbursed for any expenses incurred during the year (2021: £Nil).

22

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

14. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Designated Restricted Total
Funds Funds Funds 2021
£ £ £ £
INCOME FROM:
Charitable activities: -
Church 308,208 - - 308,208
Book Shop 3,678 - - 3,678
Investment income 4,178 - - 4,178
Surplus on sale of fixed assets 4,787,413 - - 4,787,413
------------------- ---------------- ------------------ -------------------
Total income 5,103,477 - - 5,103,477
-------------------- ---------------- ----------------- -------------------
EXPENDITURE ON:
Charitable activities:-
Church 562,816 28,362 131 591,309
Conferences and Choir 1,498 - - 1,498
Book Shop 20,983 - - 20,983
-------------------- ----------------- -------------------- --------------------
Total expenditure 585,297 28,362 131 613,790
-------------------- ---------------- --------------------- --------------------
Net income/expenditure 4,518,180 (28,362) (131) 4,489,687
Transfers between funds (16,160) 26,510 (10,350) -
--------------------- ---------------- ----------------- --------------------
Net movement in funds 4,502,020 (1,852) (10,481) 4,489,687
Funds brought forward 2,483,984 40,969 16,654 2,541,607
--------------------- ---------------- ----------------- -------------------
Funds carried forward 6,986,004 39,117 6,173 7,031,294
=========== ======== ======== =========

23