King's Church Darlington (A company limited by guarantee) Report and Financial Statements For the Year ended 31 December 2024 Company Registration Number: 5670530 Charity Number: 1113455
King's Church Darlington Financial Ststements for the Year ended 31 December 2024 Contents Reference and Administrative Information Directors Report Independent Examiners Report to the Members Statement of Financial Activities Balance Sheet Cash Flows Notes forming part of the Financial Statements Page 10 11 12 13 14-27
King's Church Darllngton Reference and Administrative Infomiation Charity name.. King's Church Darlington Company reglstration number: 5670530 Charty registratlon number. 1113455 R•gistered Offl¢o and operatlonal address.. The King's Centre Prospect Place Whessoe Road Darlington Co Durham DL3 OQT Directors and Trustees of the Charity Mr M Coltman Mrs A Cooley Mr RP Davison Mr JC Lambert Mrs J Salt Mr MA Sowerby Mr PJ Hillsdon (appointed 21 September 2025) Chair Leadernhip Team Mr M Coltman Mrs J Coltman Mr RP Davison Lead Elder Elder (resigned 10th November 2024) Mrs M Davison Mr C Cooley Mrs A Cooley Mr PJ Hillsdon Mrs S Hillsdon Mr JC Lambert Mrs K Lambert Elder (appointed 181h May 2025) Elder Company Secretary Mrs S lancu Indep8ndont Examlner AbacusBean Limited, Level Q Offices, Surtees Business Park, Stockton-on-Tees TS18 3HR Bankers Unity Trust Bank, Nine Brindley Place, Birmingham B12HB Solicitors Close Thomton, 2 Duke Street, Darlington DL3 7AB
Klng's Church Darlington DlrectoTr' Roport for the Year ended 31 De¢ember 2024 The Directors of the charitable company are its Trustees for the purpose of charity law, and throughout the report are collectively referred to as the Trustees. The Trustees present their report, together with the independently examined financial statements for the year ended 310ecember 2024. The Trustees confirm that the report and financial statements of the charity have been prepared in accordance with the charity's governing document, the Companies Act 2006 and"Accounting and Reporting by Charities: Ststement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) {effective 1 January 2019).. structure, Governance and Management Governin Document King's Church Darlington is a company limited by guarantee and registered with the Charity Commission (No.1113455). The company was incorporated on 10 January 20C6 and its goveming document is the Memorandum and Articles of Association dated 24 November 2005. Recruitment and A ointment of Board of Trustees The Church Elders, who are responsible for the day to day running of the Church, appoint the Trustees. The Board of Trustees serving during 2024 were.. Mr M Coftman - Michael has been involved in church leadership for over 15 years, as a youth leader and, for the last 6 years, on the Eldership of a church. Michael was previously leading a church in Ontario Canada before taking the lead elder role at King's Church 2021. Prior to church employment Michael was working in Quality Assurance for EE. He is also a qualified counsellor. Mrs A Cooley- Anne has been attending Kings Church since 2015 and has been involved with the children's work, part of the team working with the ladies of the church, and is one of the organisers of the annual Kings Christrnas Craft Market. Along with her husband, she has taken out teams to Uganda from all over the UK, including from Kings Church. She is also a founder trustee of a charity working into Uganda. Anne was a school senior leader and teacher of 40 years, experien and also worked in Teacher Training with York St John University. Mr RP Davison - Paul was the Deputy Director for Health Protection North East for Public Health England until his retirement in October 2019. He now has a national role working on environmental public health, sustainabilty and climate change. He became an elder in June 2009 and his responsibilities at King's Church include leading a worship band and preachinglteaching. Paul is Chair of Trustees. Mr PJ Hillsdon - Phil started in the building industy as a carpenter and joiner where he ran his own construction business with his brother employing 40 people. Already involved in church leadership he attended Bible College in 1996 and moved to Teesside in 1999 to lead the Oakwood Centre. Phil served in employment as the Main Leader with King's Church between September 2008 and September 2021. During 2024 he returned to the Eldership team as an unpaid Elder. Mr JC Lambert- John has been involved in mission and church leadership since 1990, both in Paris, France, and in the north east of England. John and his wife, Kathie, who is a hospi nurse, have four grown up children, who now live in three different countries. John likes leaming languages, music, running and reading. He is a former Church of England minister and has been an elder at King's Church Darlington since November 2023.
Klng's Church Darlington Directors, Report for the Year ended 31 December 2024 Structure. Governance and Management (contlnued) Mrs J Salt - Jenny has been involved at King's Church since 1998. During her time at King's Church, she h8s s8rved as a Children's group leader and in the worship band. She has worked as a primary school teacher for almost 10 years and leads the music curriculum at her school. Mr MA Sowerby - Mark has been a member of the Church, and its former Charity slnce 1993 and has held positions as the Church Accountsnt and Trustee during that period. He is 8 Chartered Accountant and works as Group Finan Director in an international Construction Consultancy. Trustee Induction and Trainin Most Trustees have previously served in positions of responsibility within churches and Charities. All are familiar with the VrkIng of King's Church Darlington, being Church members and holding various positions of responsibility. All Trustees have received a copy of the Memorandum and Articles and are familiar with their contents. M. Sowert)y has served as a Director of companies in his professional life and is familiarwith the workings of companies and reporting requirements. Trustees make use of Charity commission website to maintain their knowledge of current developments. Risk Mana ement The company inherited a valid Risk Assessment from the former Charity. Following the relocation of the Church into the King's Centre in June 2006 a review of risks associated with the propety was performed and the Risk Register updated. We were fortunate to be assisted by a Church member whose professional life is very much concerned with carrying out risk assessments for large organisations. A formal review of the risk register is performed on an annual basis. The Church is also advised by a local Insurance Brokerwho specialises in church matters and who has been able to visit and discuss our changing needs. This has proved invaluable and has enhanced our risk management prOss. Or nisational Structure The Trustees hold quarterly Board meetings. Outside of the Board Meetings a number of sub- committees exist to ensure the smooth running of the Church. These committees are chaired by members of the Board and include other members of the Church where appropriate skills are available. The key committees are: Remuneratlon Commlttaa - To review all aspects of employee terms and conditions and make recommendations to the Board for approval. Paid members of the Board are not permitted to vote on issues relating to their own remuneration. It is chaired by RP Davison and also includes M Sowerby. The Trustees receive no benefits from the Church in their capacity as Trustees and give their time voluntarily. Details of Trustee remuneration and expenses in relation to services as Elders is disclosed in note 9 to the financial ststements.
King's Church Darllngton Directors, Report for the Year ended 31 Dacember 2024 Structure, Governance and Management (contlnuedl Financ• Committee - The finance committee meets. as required, in the hvo months between board meetings. The group comprises. M Coltman, M Sowerby, JC Lambert 8nd RP Davison, and monitors the day to day finances of the Church, dealing with financial matters arising beeen Board Meetings. Related Parti08 The Church is a member of the Evangelical Alliance and is affiliated to a worldwide netsvork of churches known as Newfrontiers. Objectlves and A¢tivitie8 The charlty exists to 8dvance the Christian faith and also bring relief to persons in conditions of need, hardship or distress, or who are aged or sick. Further objectives are the advancement of educats'on on the basis of Christian principles, and to provide or assist in the provision of facilities in the interests of social welfare. The Trustees have referred to the guidance contsined in the Charity Commission's general guidan on public benefit when reviewing the charity's aims and objectives and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectlves they have set. The strategies employed to further our charitable purposes for the public benefit are: Sunday worship and other meetings, such as prayer meetings, worship nights, and Christmas and Easter events. These are held at the King's Centre, Darlington, which continues to provide an active and well-known base in an area of the town in need of social regeneration. We have a growing neOrk of midweek Life Groups. They meet in various homes and at the King's Centre, providing an environment for church members to grow in their faith and reach out to the wider community. On Sunday afternoons, we offer a discipleship Urse to help church members gain a deeper theological understanding of their faith. We also have an outreach course for anyone in Darlington and the surrounding areas interested in learning about Christian beliets. We support church plants in Cambodia, Sweden. Germany, and Romania that are part of the Christ Central neork of churches. This includes the work of Devoted to Cambodia, which teaches English to children living at the Siem Reap city dump. The church operates community youth groups on Monday and Wednesday evenings and also attends summer youth camps. The King's Centre hosts several weekly communty groups. These include Pilates classes, ukulele group, and a baby and toddler group. We also run 'Care and Share,, a group dedicated to supporting those who struggle with mental health and loneliness. The King's Café is open to the public. Monday to Friday. The church runs a furniture r6cycling scheme. We receive or collect donated furniture, renovate and store it, and then deliver it to customers. Achievements and Performance As 8 church, we are encouraged to see continued growth in attendance and Embership. We've seen an increase in those attending Sunday moming meetings and our youth and children's programmes, with our congregation becoming younger and attracting more families. We have also seen increased demand for our free Monday night youth group, which we offer to both our church members and the wider community.
King's Church Darllngton Directors. Report for tho Year ended 31 December 2024 Achievements and Performance (contlnuod) Demand for our food bank services continues to increase each year. We run this seNice alongside Taste and See, an outreach program that provides an introduction to the Christian faith and a hot meal for all who aitend. This past year, we have had the privilege of supporting church plants around the world in Gothenburg, Sweden,. Chemnitz, Germany. and Srem Reap, Cambodia. We also continue to Partner with the work of Transform Asia, which operates an orphanage in Anlong Veng, Cambodia. Across all our initiatives whether it's the fumiture scheme, café, or food bank-we are pleased to offer ample opportunities for community members and groups to volunteer at the centre. We welcome and enoourage anyone to support our work, regardless of whether thay consider themselves part of the church. In the year, we had the opportunity to host the Christ Central international conferance at the centre and this proved to be a great suss. Financial Review The results show a net expenditure of £14k compared to £150k in 2023. Unrestricted funds represent £118k of this year-on-year variance with restricted funds the balancing £18k. Net expenditure on unrestricted funds was £7k. The result is after bearing depreciation of £65k such that Unrestricted Earnings before Interest, Tax and Depreciation are £75k. Unrestricted Income increased by £88k to £642k with trading activities up by £15k, largely in the Furniture Scheme, 2nd gift8 and donations up by £67k. We remain grateful to Church members who continue to donate through uncertain economic times. Unrestricted costs reduced by £31k to £648k. This was driven by 8 £57k drop in premises costs, of which £36k relates to depreciation of leasehold improvem&nts and £18k to lower energy costs. Salary costs were up by £13k, which was largely inflation, and furniture costs by £12k, due to the higher volume. We continued to adopt a very prudent approach to discretionary expenditure. Restricted income increased by £36k on 2023 levels to £135k, with a £43k grant received to improve the energy efficiency of the premises with the focus being on the heating system. Restricted expenditure was £19k above that incurred in 2023 primarily due to costs expended against Foodbank grants received in previous periods and use of the aforementioned energy efficiency grant. £51k of funds were transferred from restricted funds to unrestricted funds representing capitalisation of assets purchased from restricted funds, the initial purpose of the grant having been achieved. Closing unrestricted funds were £80k, however this figure includes fixed assets of £246k of which £219k relates to the King's Centre and the related building improvements. The Church has a finance lease liability of £236k, essentially secured against the building. Net current assets, therefore, represent a fairer picture of the day to day health of the Church finances and availability of funds. Unrestricted net current assets are £37k which is up from £16k in 2023. Closing restricted funds, all held in cash, were £1 Ok and largely comprise unspent grant income.
Klng's Church Darllngton Dlr•ctors' Report for the Year ended 31 December 2024 Financial Revlew (cont.) Ke Activities Outside of nomial meetings and activities the Church is investing in four initiatives: the Furnlture Scheme, the Café, King's Sports and the Foc*lbank. The table below summarises the running costs of these activities and how these costs have been funded: Furniture Schome £'ooo Café Klng's Sports £'ooo Foodbank £'ooo Costs: Salary Costs Other Direct Costs Allocated Overheads £'ooo 61 151 35 247 42 22 12 76 107 20 14 Funded by.. Voluntary Gifts Benefits in Kind Grant income Trading Income Church Funds Restricted Funds 122 15 126 (1) 66 10 (2) 58 141 247 Allocated overheads represent a share of accommodation costs, based upon space usage and other overhead as relevant. Voluntary gifts are amounts received for the specific activity. Church Funds represents the shortfall in funding from sources of income specific to the activity and is therefore the amount required to be funded from unrestricted Church funds. Outlook Generally speaking, the outlook for 2025 remains posits've with income levels relatively robust and expenditure under control. We continue to be well supported by a mixture of committed employees and volunteers and we remain vigilant to changes in incom8 and cost levels. However, through 2024 and early 2025 we have seen the volume of available funding for our foodbank reduce. As such we have taken the decision to streamline our operation. which is now run by a single staff member and a team of volunteers. The food bank is now a referral- only service, ensuring our food parcels reach those most in need in Darlington. Princi l Fundin Sources The main source of income to the Church is through gifts and donations received from Church members. We are also able to sublet some offices at the Church premises. Incidental income is received through reimbursement for some specific, and more costly Church events. Major capital projects are usually funded from gift days and grants. Investment Polic The Church aims to hold minimal levels of cash reserves 8nd thus surplus funds are retained in higher interest deposit accounts.
King's Church Darllngton Directors, Rèport for th& Year ended 31 December 2024 Financlal Review (cont.) Reserves Poli The Church Trustees have established a policy of ensuring that the Charity retains a minimum level of cash equivalent to betsveen 2 and 3 months normal expenditure. At 31 December 2024 this target was estimated at between £60k and £80k. Closing unrestricted cash funds at December 2024 were £98k. although this benefitted from abnormalty hher trade creditors at the year-end such that a more normalised position is closer to £70k. Plans for Future Periods The last bNelve rnonths has continued to be a time of encouragement, as the church continues to grow in attendance and memtership. Our focus on the y8ar ahead is to 'Love God, Love Others and Make Disciples, by: Continuing to see growth and sustainability in all of the projects mentioned above. To grow the outreach of our youth work and see growth in attendance to all our youth and children's work. Running a Bible focused kids club during the summer holHlays. Use of our facilities to provide groups and services to care for the community around us. Raising the finance to accomplish this with the desire of gifting money to worthwhile causes in both the U.K and Overseas. To continue to support Christ Central church plants, including Gothenburg (Sweden), Chemnitz {Germany), Siem Reap (Cambodia), and a new church plant in Romania. To preach the good news of Jesus, through prcgrammes like the Alpha course, and see people join the church family.
King's Church Darlington Directors, Report for the Yèar ended 31 December 2024 Trustees. responsibllltles statoment The trustees (who are also directors of King's Church Darlington for the purposes of cornpany law) are responsible for preparing the Trustees. Annual Report and the financial statements in accordance with applicable law and Unrted Kingdom Accounting Standards (Uniied Kingdom Generally Accepted Accounting Practice). Company and charty law requires the trustees to prepare financial statements for each financial year, which give a true and far view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the ino)me and expenditure, of the charitable company for that perrod. In preparing these financial statements, the trustees are required to: select suitable accounting polrcies and then appty ttrEm consistenty," observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent. prepare the fin8ncial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue in operation. state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in th8 financial statements. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial Fosition of the charitable company and enable them to ensure that the financFal statements compty with the Companies Act 20C6. They are also responsible for safeguarding the assets of the charitable company and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement of disclosure to Independent Examiner In so far as the trustees are aware: there is no relevant infonnation of which the charitable company's independent examiner is unaware" the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant InforThtion and to establish that the independent examiner is aware of that infonnation. In preparing this report, the trust888 have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. This report was approved by the trustees on 261h September 2025 and is signed on their behalf by: Mr RP Davison Chair of Trustee
King's Church Darlington Independont Examinerfs report to the trustses of King's Church Darlington I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2024 which are set out on pages 11 to 27. Responsibllltlos and basis of report As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2008 ('the 2006 Act,). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company's accounts as Garried out under section 145 of the Charities Act 2011 ('the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145{5)(b) of the 2011 Act. Independent examine9 ststement Since the company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of ths 2011 Act. I confirm that l am qualified to undertake the examination because l am a member of ICAEWwhich is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: accounting records were not kept in respect of the company as required by section 386 of the 2006 Act. or the accounts do not accord with those records,. or the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view, which is not a matter considered as part of an independent examination., or the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102>. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Beverley Goodall BA BFP FCA AbacusBean Limited Level Q Offices Surtees Business Park Stockton-on-Tees TS18 3HR Date.. 26th September 2025 10-
Klng's Church Darllngton statement of Financial Activities (including Income & Expenditure Account) for the Year ended 31 December 2024 Year ended 31 December 2024 Unrestricted Restricted Total Funds Funds Funds Year ended 31 December 2023 Notes Income and endowments from: Donation and legacies Rental income InvestrrEnt income 418.821 11.4 2,805 135,454 554,275 11,496 2,805 442,261 12,700 3,691 Charitable activit188 Church events 208,668 208,668 194.484 Total income and endowments 641,790 135,454 777,244 653.136 Expendlture on: Raising funds Costs of generating rental income Charitable activities Governance costs 3,447 5,792 3,447 5,792 3,410 7,567 634,909 4,151 142,964 777,873 4,151 786,550 5,760 Total expendlture 648.299 142,984 791,263 803,287 Net (expenditure)lincome {6,509) (7,510) (14,019) (150.151) Transfer between funds 50,637 (50,637) Net movement in funds 44,128 58,147 14,019 150.151 Reconciliation of fund8 Funds brought forward 35,487 68,496 103,983 254,134 Total funds carried forward 79,615 10,349 89,964 103 983 The notes on pages 14 to 27 form part of the financial staternents. The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activitie5 also complies with the requirements for an income and expenditure account under the Companies Act 2006. 11
King's Church Darlington Balance Sheet as at 31 December 2024 31 December 2024 31 December 2023 Notes Tangible Flxed Assets 12 245,580 254.825 Current Assets Debtors Cash at bank and in hand 13 34,981 108,519 143,480 (96,56n 14,113 126,442 140,555 (56,147) Creditors.. amounts falling due within one year 14 Net Current Assets 46,913 84,408 Totsl Assets less Current liabilltles 292.493 339.233 Creditors: amounts falling due after one year 15 (202,529) (235,250) N•t Assets 89,964 103,983 Charity Funds Unrestrided fund8 Restricted funds 17 17 79,615 10,349 35.487 68,496 Totsl Funds 89,964 103,983 The notes on pages 14 to 27 form part of the financial statements. The company is entitled to the exemption from the audit requirement contained in s8Ction 477 oftheComp8niesAcl 2006, forthe yearended 31 December2024. No member ofthe company has deposited a notlce, pursu8nt to sectron 476. requiring an audit of these accounts. The trustees acknowledg8 their responsibilities for ensuring that the charty keeps accounting records which comply with section 386 of th8 Act and for preparing financi81 statements which give a true and fair view of the slate of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income aTh expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 rating to financial statements, so far as applicable to company. The financial statements have been prepared in accordan with the provisions applicable to cL¥npanies subjed to the sm811 companies, regime. The financial statements W8re approved and authorised for issue by the Board of Trustees on 26th September 2025 and signed on their behalf by.. Mr MA Sowerby Trustee Company Reglstration number: 5670530 Charity registration number: 1113455 12-
King's Church Darlington Cash Flow Statement for the Year ended 31 December 2024 Year ended 31 December 2024 Unrestricted Restricted Total Funds Funds Funds Year ended 31 Decembor 2023 Notes Not cash provlded byl(used in) operating activities: 20 140.309 (58,147) 82,162 (34,675) Cash flow8 from other sources: Proceeds from sale of fixed assets Applicatlon of cash: Purchase of fixed assets Sale of fixed 8ssets Payment of interest on borrowing Repayment of borrowing (55,800) 215 (55,800) 215 {20,702) 2,419 (13,663) (30,837) (13,663) (30,837) (15,548) (28,953) Net Increasel(decrease) in cash: 40,224 {58,147) (17,923) (97,459) Cash at the beginning of the year 57,946 68,496 126,442 223,901 Cash at the end of the year 98,170 10,349 108,519 126,442 The notes on pages 14 to 27 form part of the financial statements. 13-
Klng's Church Darfington Notes fomilng part of the Financlal Statements for the Year ended 31 December 2024 Accounting policies The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding financial year. Basis of accounting (a) The financial statements have been prepared under the historical cost convention and in accordance with the Companies Act 2006 and 'Accounting and Reporting by Charrties: Statement of Recommended practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS102) (effective 1 January 2019)°. The charity is a Public Benefit Entity as defined by FRS102. The accounts are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £1. {b) Company status The Charty is a company limited by guarantee. The members of the company are the trustees named on page 2. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charty. Fund accountlng Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the Church. Restricted funds are subject to restrictions on their expenditure imposed by the donor or through the terms of an appeal. en the restrictions plad on restricted funds have been removed. a transfer is made from restricted funds to unrestricted funds. (d> Incoming resources All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to the particular categorres of income.. Voluntsry income is reiVed by way of grants, donations and glfts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific perfomance by the Church, are recognised when the charity becomes unconditionally entitled to the grant Donated services and faciliti&s are included at the value to the Church where this can be quantified. The value of services provided by volunteers has not been included in these finanaal statements. The value of food and fumiture received and subsequently donated have not been included in these financial ststements. Rentsl income is accounted for when it becomes receivable. Investment income is included when receivable. 14-
King's Church Darlington Notes fomiing part of the Financlal Statements for the Year ended 31 December 2024 Accountlng policles (cont.) Incomlng resources (cont.) (d) Incoming resources for charitable trading activlty are accounted for when they are earned. Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the Church earns the right to consideration by its performance. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. Where legacies have been notified to the charity however it is not possible to measure the amount expected to be distributed, the legacy is treated as a contingent asset and disclosed. (0) Resourcos expended Expenditure is recognised on an accruals basis as a liability is incurr8d. Expenditure includes any VAT which cannot be recovered, and is reported as part of the expendrture to which it relates.. Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of generating rental income. Charitable expenditure comprises those costs incurred by the Church in the delivery of its activities and SeNiS for its beneficiaries. It includes both costs that can be allocated directly to such activitles and those costs of an indirect nature necessary to support them. Governance costs include the costs associated with meeting constitutional and statutory requirements of the Church and include the independent 8xaminer fees and costs linked to the strategic management of the Church. All costs are allocated between the expenditure categories of the Statement of Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly. others are apportioned on an appropriate basis e.g. estimated building usage or estimated time committed as set out in note Grants p8yable are accounted for when paid. Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. Flxed assets Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off each asset over their expected useful life.. Music and sound systems offi furniture and equlpment Computer equipment Motor vehicles Leasehold improvements Propety 250/9 reducing balance. 250/0 reducing balan. 500/0 reducing balance. 25 % reducing balance. 10 years straight line from completion. straight line over the term of the18ase. Assets costing less than £250 are not capitalised. 15-
Klng's Church Darlington Notes fomiing part of the Flnancial Statements for the Year ended 31 December 2024 Accounting policies ¢¢ont.) (fj Fixed ass8ts (cont.) Depreciation is not provided on assets under construction until the asset is completed. After completion, periodic impairment revieyts of the leasehold improvements will be performed. (g) Gifts in kind The value of gifts in kind is recognised as income within the financial statements at the point at which the Church is deemed to realise a benefit ft)r the gift. Such incorre is valued at the estimated market value of the benefrt where this can be quantified. Leases {h) Assets obtained under finan leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities so as to produce a constsnt periodic rate of charge on the net obligation outstanding in each period. Rentals payable under operating leases are charged against income on a straight4ine basis over the lease term. (i) Format of flnancial statements The trustees have ad8Pted the formats for financial statements set out in The s11 Companies and Groups (Accounts and Directors, Report) Regulation8 2008, to suit the nature of the company's activiti&s. This fomiat remains consistent with SORP (FRS102) ti) Critical accountlng pollcles The accounting policies which have the most material impact on the financial statements of the charity relate to fund accounting and tatment of fixed assets. In particular: The Church has acquired a property under a long-term lease. See notes 1 {fj and 17. This has the effect of introducing a material asset and loan into the balance sheet. The Church has expended signrficant funds in developing the property. These leasehold improvements are being depreciated over a 10-year period as per note 1(Q. Details of restricted funds operated by the Church can be ft)und at note 17. (k) Going concern The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of fvnds held and the expected level of income or expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reseNes for the charity to be able to continue as a going concern. 16-
King's Church Darlington Notes forming part of the Financlal Statements for the Yoar ended 31 December 2024 Accounting policles (cont.) (i) Exceptions to SORP (FRS102) The nature of the charity means that Church members will regularly provide the church with their ServIS on a voluntary basis. Examples of the contribution made by volunteers include organisation of events and meetings. and support to the café, food banK sports facilities and fumiture scheme to augment the work of paid employees. As per note 1 (d), these serrfices have not been valued and included as income as the trustees believe that it is impossible to quantify the value of these services and that the inclusion of such an estimate would not add to the understanding of the financial performance of the charity. The Church operates a Furnitu recycling scheme which receives donated second- hand furniture. The fumiture is then sold to the community at a nominal fee intended to cover operating costs only. Valuation of the donated goods is not POS5ible and so the Church recognises the gfft income and associated cost at the same value as the income actually recetved when sold. Vthilst the Church holds a level of stock at a given time the trustees have chosen not to include the value of the stock in ts balance sheet on the basis that it is not possible to value the st¢xk until it has been sold and on the basis that the value is not material to the understanding of the financial statements. The Church operates a food bank which reiVeS donated food. The food is then gifted to the community for no fee. The donated food is high volume and low value which makes it impractical to value and so the Church does not recognise gift income, the associated cost or stock. Income from donations and legacies Year ended 31 December 2024 Unrestricted Restricted Total Funds Funds Funds Year ended 31 December 2023 Gifts and donations Grants (see note 17) Grfts in kn'nd 292,534 4,166 122,121 418.821 64,087 71.367 356,621 75.533 122.121 554,275 306,444 17.680 118,137 442,261 135,454 Year ended 31 December 2023 343,371 98,890 442.261 Restricted income repSents income gifted for the purposes to support the work of the Foodbank, and grants to support the work of the activities undertaken at the King's Centre notably the Foodbank and the Fumiture Scheme. The £4.167 of unrestricted grant income was a grant reiVed from a charitable organisation towards the general running of the King's Centre. Gifts in kind represent the value of donated fumiture that was sold during the year. 17-
King's Church Darlington Notes formlng part of the Flnancial Statements for the Year ended 31 December 2024 Rental income Year endod 31 Decembèr 2024 Unrestricted Restricted Total Funds Funds Funds Year ended 31 December 2023 Letting of Offi facilities 11,496 11,496 12,700 11,496 11,496 12.700 Year ended 31 December 2023 12,700 12,700 Investment income Year onded 31 December 2024 Unrestricted Rostricted Total Funds Funds Funds Year ended 31 December 2023 Bank interest receivable 2,805 2,805 3,691 2,805 2.805 3,691 Year ended 31 Dember 2023 3,691 3,691 Income from charitable activities - church •vents Year onded 31 Dec•mber 2024 Unrestrlcted Restricted Total Funds Funds Funds Year ended 31 December 2023 Relmbursements for: Youth Activities Events and Training Furniture Scheme Café Income King's Sports other Income 645 11,628 645 11,628 174 8,649 126,493 65,781 3,290 831 208 668 126,493 65,781 3.290 831 208,668 119,540 62,446 3,220 455 194,484 Year ended 31 Deomber 2023 194.484 194,484 18-
King's Church Darfington Notes fomiing part of the Flnancial Statements for the Year anded 31 December 2024 Total oxpenditure Year ended 31 Docember 2024 Church Meetings Direct Extemal Events Direct Evangelism & Training Direct Youthlchildren's Work Direct Grants to Organisations Grants to Individuals Independent Examiners Fees Furniture Recycled Café Foodbank King's Sports 7,461 7,461 641 4,803 12,246 8,935 200 985 9,279 3,436 12,246 1,367 Direct Direct 26,644 1,533 26,644 1,533 32,576 3,748 Direct Direct Direct Direct Direct 704 704 3,076 151,083 252 22,649 19,736 19,815 2,350 138,437 23,073 24,474 148,007 22,397 79 222,444 704 24,431 247,459 244,057 Staff Costs Premises Costs Administration Costs Time Usage Time 2.942 1,471 3,659 252 256,942 2,942 106,889 371,186 339,450 118,283 11,464 133,406 179,898 23,987 180 25,429 24,334 505 505 Interest on Finance Usage Lease 410 13,253 13,663 15,548 3,447 5,792 634,909 4,151 142,964 791,263 803,287 Year ended 31 Dernber 2023 3,410 7,567 662,098 5,760 124,452 803.287 Elder and Administrators Staff Costs and Administration Costs have been allocated on the basi5 of an estimate of time spent by the Elders, Administrator, Furniture Scheme Manager, Foodbank Staff, and Café Manager. Premises costs and the interest on the loan to fund the building purchase have been allocated on the basis of usage of the building. Premises costs include depreciation of Building Improvements of £35,852 (2023.. £71,330) and £20,000 for Propety (2023.. £20,000). The balance of depreciation costs of £8,619 {2023.' £8.032) is within administrative costs. 19-
King's Church Darlington Noies fom)ing part of the Flnancial Statements for th• Year ended 31 D•cembor 2024 6 Total exponditure (cont.) Year Ended 31 December 2023 Church Meetings Extemal Events Evangelism & Training Youthlchildren's Work Grants to Organisations Direct Direct Direct Direct 8,671 200 985 9,279 264 8,935 200 985 9,279 Direct Direct 25,083 2,248 Grants to Individuals Independent Examiners Fees Furniture Recyded Café Foodbank King's Sports 7,493 1,500 32,576 3,748 Direct Direct Direct Direct Direct 2,350 2.350 138.437 23,073 24,474 136,468 22,381 1,969 692 24,474 205,315 2,350 36,392 244,057 staff Costs PMiseS Costs Administration Costs Time Usage Time 2,923 1,461 5,397 243 244,083 174,501 23,117 2,923 88,060 339,450 179,898 24,334 487 487 Interest on Finan Lease Usage 15,082 662,098 15,548 124,452 803.287 3,410 7,567 5,760 7 Net Incoming resources Net incoming resources are stated after charging: Y8ar ended 31 December 2024 Year onded 31 December 2023 Depreciation Independ8nt Examiners Fees 64,471 704 99,362 2,350 -20-
Klng's Church Darllngton Notes fomiing part of the Financial Statements for the Year ended 31 Docomber 2024 8 Staff costs Stsff costs were as follows.. Year ended 31 December 2024 Year ended 31 December 2023 Salaries and wages Social security costs Pension costs 327,725 22,544 23,274 373,543 303,035 18,941 20,337 342,313 No employee earned emoluments of more than £60,000 in a year (2023.. none). The Church operates a defined contribution pension scheme which requires the Church to make contributions of 80A, provided that the employees match the 8 /0 contributions. The contributions made by the Church for the year were £23,274 (2023: £20,337). Total termination payments amount to £Nil (2023: £9,000) and relate to settlement agreements for employments terminated in the current year. No amounts are outstanding at the year end (2023: £Nil). The average number of employees during the year, calculated on the basis of full-time equivalents was as follows: Year ended 31 December 2024 Year ended 31 December 2023 Church Elder Church Administrator Youth Worker Furniture Scheme Worker Café Worker Cleaner Foodbank Staff 12.4 11.4 21
King's Church Darflngton Notes forniing part of tho Flnanclal Statements for the Year ended 31 D8mber 2024 Trustse8 remunoration and related party transactions There were trwo trustees who received remuneration in the year (2023: three) for their services as Elders, as permitted by the Memorandum and Articles of Association. These were the only key management person who received remuneration in the Cuent or previous year. Total emoluments were £79,473 (2023: £96,223), induding pension contributions of £5,887 (2023: £6,151). The highest paid trustee, Mike Coltman, received emoluments in the year of £53,203 (2023: £50,875) including pensron contributions of £3,941 (2023.. £3,626). The trustees mentioned above were reimbursed for expenses totslling £1,606 (2023.. £2,657). These expenses were incurred perfomiing their duties as Elders, and mainly comprised travelling, hospttality and telephone costs. No other Director or other person related to the management of the Church had any personal interest in any contract or transaction entered into by the Charity during the year. 10 Grants made by tho Charity In the year, the Church made charitable grants from unrestricted funds of £28,177 (2023: £27,311) which comprised £26,644 to organisations (2023: £25.083) and £1,533 to individuals (2023: £2,248). The largest gifts were £6,000 towards th& works of Christ Central, being the organisation which co-ordinates the subgroup of NewFrontiers to which the Church is affiliated and gifts of £6,780 to Gud Forst Christcentral, Newfrontiers church plant in Sweden, and £6,664 to Centrul Crestin Brasov, Newfrontiers church In Romania. In all cases gifts were made to further the aims of the charity being to further Christian faith and also bring relief to persons in conditions of need, hardship or distress, or who are aged or sick. 11 Taxatlon As a charity, King's Church Darlington is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tsx charges have ansen in the Charity. -22-
Klng's Church Darlington Notss fomiing part of th• Financlal Statoments for th• Year ended 31 Decèmber 2024 12 Tangible fixed assets Cost At 1 January 2024 Additions Disposals At 31 December 2024 55,864 77,138 5,144 1,301 11,658 54,563 80.624 43,129 1,128,229 500,000 50,656 695 1,178,190 500,000 1,804,360 55,800 3,654 1,856,508 43,129 Depreciation At 1 January 2024 Charge for the year Disposals At 31 Dernber 2024 51,140 67.181 1,179 3.610 1,290 1,489 51,029 69,282 27,808 3.830 1,048,426 355.000 35,852 20.000 301 1.083.977 375,OCK) 1,549,535 64,471 3,080 1,610.926 31,638 Net Book Value At 31 Docember 2024 3,534 11,342 11N91 94,213 125,000 245,580 At 31 December 2023 4,724 9,977 15,321 79,803 145.000 254,825 The net book value of assets held under finance lease amounted to £125,000 (2023: £145,000). 13 Debtors 31 December 2024 31 December 2023 Other debtors Prepayments 26,724 8,237 34,961 6,614 7.499 14,113 14 Creditors: Amounts falllng due within one yoar 31 December 2024 31 December 2023 Trade creditors Taxation and social security Accruals Flnance lease 41,076 9,091 13,679 32,721 96,567 8,629 8,587 8,094 30,837 56,147 Amounts owed under finance lease are secured by the assets to whrch they relate. -23-
Klng's Church Darllngton Notes fomiing part of tho Financial Statements for the Year ended 31 December 2024 15 Credltors.. amounts falling due after one year 31 December 2024 31 December 2023 Finance lease 202,529 235,250 On 18th January 2007. the wmpany entered an arrangement to purchase a propety. The temis of the arrangement were to pay monthly instslments of £3,708 over a 25- year period, at which point the company has the option to purchase the freehold for a nominal amount. The agreement was backdated to 1 April 2006. Amounts owed under finance lease are secured by the assets to which they relate. Analysis of net assets between funds 16 Year ended 31 December 2024 Unrestrlct•d Funds Restricted Funds Total Funds Fixed assets Current assets Current liabilities Long-term liabilities Net assets at 31 December 2024 245,580 130,131 (96,567) 202.529 79,615 245,580 143,480 (96.567) 202.529 89,964 10,349 10,349 Year ended 31 December 2023 Unrestricted Funds Restrict Funds Total Funds Fixed assets Current assets Current liabilities Long-term liabilities Net assets at 31 December 2023 254,825 72,059 {56,147) 235,250 35,487 254,825 140,555 (56,147) 235,250 103,983 68,496 68,496 -24-
King's Church Darllngton Notes fomiing part of the Financial Statements for the Year ended 31 December 2024 17 Movement in funds Year ended 31 Decfrmber 2024 As at 1 January 2023 Incoming Resources Outgoing Resources Transfer between funds As at 1 January 2024 Incoming Resources Outgoing Resources Transfer beeen funds As at 31 December 2024 141,9C6 554,246 {678,835) 18,170 35,487 641,790 (648.299) 50,637 79.615 61,268 48,926 254,134 81,335 17.555 653,136 (83,403) {1,500) (39.549) (803,287) 18,170 8,762 103,983 71,367 777.244 {19,677) (791,263) 50.637 9,815 2,034 59,200 64,087 (123,287) 534 534 89,964 Pur ose of the Foodbank Fund formerl Gift Da Fund This fund is built up from donations to support the activities of the Fo¢)dbank. At 1 January 2024 the brought forward fund was £59.2(Y). Further gifts of £64,087 were reiVed in the year. Expenditure was £123,287 such that closing funds were £nil. Pastoral Hel Fund This fund is av8ilable to meet the needs of those in financial difficulties. A balance of £534 was brought forward. There was no movement in the year. Grant Income Foodbank.. A brought for4vard grant to support clients of the Foodbank who were in need of £6 was added to by a fvrther£3,000 grant in the year. All £3,OC6 of funds were expended in the year. Grants of4,000 towards salary costs, £4,000 towards food costs and £1,000 towards the running of vehicles were received in the year. Only £3,000 for food costs remained unspent at the end of the year. A grant of £1,088 for the establishment and upkeep of a food bank garden facility was brought forward. A further £121 of grant income was received in the yearand £1,115 spent, leaving a closing fund of £54. -25-
Klng's Church Darlington Notes forming part of tho Flnancial Statements for the Year ended 31 December 2024 17 Movement In funds (cont.) Grant Income cont Fumiture Scheme.. The Church holds grantfunding designated to fund the running and replacement costs of a Furniture Recycling Scheme van. The opening balance was £2,451. An additional £148 was re1Ve in the year and £2,450 was spent on maintenance costs, leaving a closing balan of £149. An unspent grant of £326 towards establishment of workshops was brought forward. This was expended in the year. Other.. A number of other grants were utilised as follows. £950 towards the funding of a Soup Kitchen wa5 brought forward of which £199 was expended in the year leaving a closing balance of £751. £139 to fund equipment for King's Sports was brought forward and remained unspent at the year end. An unspent grant to replace the floor in one of the halls in the King's Centre of £941 was brought forward and utilised in the year. This expenditure was capitalised and transferred to unrestricted funds. Grants of £1,368 towards the support of overseas mission workwas brought forward. A further £1,020 was reiVed and £1,367 was spent, leaving a closing balance of £1,030. Grants of £1,262 to support the work of Soul Hope Uganda We brought forward and remained unspent at the year end. £A brought fOard grant of £21 to allow the purchase of books was brought forward and remained unspènt at the year end. Brought forward grants funds of £210 towards the funding of new furniture for the café was fully utilised in the year. A number of grant funds were received in the year to improve the King's Centre. Funding to improve energy efficiency of £42,552. to replace a boiler of £1,700, to improve the wi-fi capacity of £1,492. and to improve kitchen equipment of £2,000 were all received and spent in the year. A further grant of £3,725 for centre equipment was largely spent with £109 carried fOard, and a grant of £3,300 to procure IT equipment remained unspent at the year end. In totsl £49,696 of this expenditure was capitalised and the associated assets transferred to unrestricted funds, the terms of the grant funding having been fully met. Year ondod 31 Decomber 2023 As at 1 January 2022 Incoming Resources Outgoing Resources Transfer between funds As at 1 January 2023 Incoming Resources Outgoing Resources Transfer beeen funds As at 31 December 2023 223,936 515,120 (599,370) 2,220 141,906 554,246 (678,835) 18.170 35.487 39,545 78,528 {56,805) 2,834 16,866 283,181 53,957 647,605 (800) (19,677) (676,652) 2,220 61,268 48,926 254,134 81,335 17,555 653,136 (83,403) (1,500) (39,549) {803.287) 18,170 59,200 534 8,762 2,034 103,983 -26-
King's Church Darlington Notes formlng part of the Flnancial Statements for the Year ended 31 December 2024 Leases a) Finance leases- lessee The only finance lease relates to the purchase of Land and Buildings. The terms of the lease require quarterly instalments of £11,125 to be paid over a 25-year period commencing on 1 April 2006. The building has been valued at £S00.000 and interest of £612,500 has been allocated on a sum of digits basis. The capital payment of the lease is due: 31 December 2024 31 December 2023 Within 1 Year Within 2 to S Years After 5 Years 32.721 149,731 52,798 30.837 142.192 93,058 235,250 266,087 b) Operating leases -1ossee Totsl future minimum lease payments under non-cancellabl6 operating leases are as follows.. Pa able 31 December 2024 31 December 2023 Not later than one year Later than one and not later than five years Later than five years 682 682 1,877 2.559 2,559 3,241 19 Share capital The company does not have a share capital. In the event of a winding up, every member at that time is required to contribute £1. 20 Reconclliation of nat oxpendiiure to not cash flow from oporating activltles Y•ar ended 31 Dec•mb•r 2024 Year ended Total 31 Funds December 2023 Unrestricted Restrlcted Funds Funds Net (expenditure)lincome Depreciation charges Interest charge Loss on disposal of fixed assets Decreasel{increase) in debtors (Increase)Idecrease in creditors Net cash providedl(used in) operating activities 44.128 64.471 13,663 359 (20,848) 38,536 140,309 (58,1471 (14,019) (150,151) 64,471 99,362 13,663 15,548 359 (1,771) (20,848) {141) 38,536 2.478 (34,675) (58.147) 82,162 Year ended 31 December 2023 9,057 (43,732) (34,675) -27-