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← Tees Valley Community Church

2024-08-31-accounts

TEES VALLEY COMMUNITY CHURCH

Annual Report and Audited Financial Statements for the Year Ended 31st August 2024

TEES VALLEY COMMUNITY CHURCH

ANNUAL REPORT & AUDITED FINANCIAL STATEMENTS

(A company limited by guarantee and not having a share capital)

Charity number: 1114596 Company number: 05735104

Accounts – 31st August 2024

INDEX

Page 1

TEES VALLEY COMMUNITY CHURCH

TRUSTEES ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT) for the year ended 31st August 2024

The trustees are pleased to present their annual report and financial statements of the charitable company for the year ended 31st August 2024 which are also prepared to meet the requirements for a directors’ report and accounts for Company Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing documents and the company’s Memorandum and Articles of Association.

Reference and Administration Details

The charity’s name is Tees Valley Community Church.

Charity Registration Number: 1114596 Company Number: 05735104 Registered and Principal Office: The Oakwood Centre, Cleasby Way, Eaglescliffe, Stockton-on-Tees, Teesside, TS16 0RD Bankers: HSBC 136 High Street, Stockton-on-Tees TS18 1LR

Stockton-on-Tees TS18 3TU

Trustees and Directors

The Trustees of the charitable company are the directors for the purposes of charity law. The trustees and officers who served during the year and since the year end were as follows:

Martin Dunkley Matthew Biddlecombe Steven McFarlane Julie Marley Graham Bond Janet West Andrew Malbon

Company Secretary – David Marley

Note – on 27 November 2024 two further Directors/Trustees – Gary Sharples and Olayemi Ekisola - were appointed.

Key management personnel

The day to day running of the church is delegated to the senior pastoral and operational staff. The staff are led by the senior leaders Martin Dunkley, Lynda Dunkley and the Executive staff team of Matt Biddlecombe, David Marley, Matt Horner and Steve McFarlane. The senior staff leadership team is as follows:

Martin Dunkley – Senior Leader Lynda Dunkley – Senior Leader Matthew Biddlecombe – Director of Strategic Operations Matthew Horner – Executive Pastor David Marley – Executive Pastor Sarah Glasby – Operations Manager Steven Mcfarlane – Director of Evangelism

Page 2

Objectives and Activities

The main objectives of the charity are:

The main activity is the provision of a Christian church and associated activities.

In planning the activities of the charitable company, the trustees have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.

The charitable company’s activities of advancement of the Christian faith and associated activities are available to the people of Tees Valley and the wider area to make a positive contribution to the local and wider community.

The strategies for achieving our aims include weekly Sunday services, regular meeting and activity groups, events, training and outreach activities.

Ongoing activities will continue in the short and long term. There is a long-term aspiration to develop the Enterprise Village.

The Charity provides significant financial and non-financial support to fellow Christian causes based locally, in the wider area and overseas.

Volunteers make a significant contribution to our general activities and our various activity and training groups. Approximately 300 volunteers gave their services during the year.

Achievements and performance

The Charity continued to build on and fulfil its objectives during the year. It continued to successfully advance the Christian faith through weekly Sunday meetings and through a network of mid-week small group meetings. A wide range of events, courses and working parties, focusing on the spread of the gospel, have continued. The charity continues to monitor all its activities to ensure it is on course to achieve its objectives of advancing the Christian faith.

The main measure of the Charity’s achievements is the number of people attending the weekly Sunday meetings, the mid-week small group meetings and the various other courses, events and activities run.

If there is an increase in the number of people attending the Charity’s events, this should lead to an increase in donations and therefore the Charity will be able to expand the level of activities it undertakes.

The Charity has seen a number of new people start to come to the Church with regular attendance increasing year on year.

The Charity has taken on a building and an employee for the project in South Bank, where we now run meetings most days of the week, provided hot meals and food packages and one to one mentoring, all whilst sharing the gospel.

The Charity continues to provide support for a variety of good causes both locally and internationally. In terms of overseas missions, the Charity has provided financial support to a variety of countries including Ukraine, Namibia, Kazakhstan and India. The Charity has provided significant support to church partners in Ukraine. The Charity continues to develop links with churches in Thailand, Canada and the USA as part of the plan to develop its international partnerships and has received a team of students from the USA to work into the Charity’s activities.

The Charity has provided financial support for establishment and continued activities of a number of Christian churches within the North East of England. Specifically, the Charity has continued to support a new church plant in the city of York, providing both financial support and leadership training for the team heading up the new church plant.

Through our partnership with Three13 Training and Enterprise Limited the Charity has increased its work and financial giving to the most deprived people and communities in our region, supporting a number of new and existing projects and initiatives.

The Charity has a partnership with The Message Trust, a Christian charity based in Manchester. A local North East hub has been set up and the Charity is working with The Message Trust on local projects serving the most socially deprived communities in the Tees Valley area. These include setting up a Community Grocers to provide affordable shopping to the most economically deprived.

Page 3

Financial review

Financial Summary

The overall income for the year was £1,063,363 compared to £922,034 in the previous year. The main source of income was from donations and gifts and totalled £795,078.

The overall expenditure for the year was £1,106,003 compared to £902,029 in the previous year. The biggest element of expenditure was for staff pay and totalled £529,019.

The net position for the year was a deficit of £42,640 compared to a surplus of £20,005 in the previous year.

Major risks facing the Charity

Risk management

The Trustees have a duty to identify and review the risks which the Charity is exposed to. To enable the Trustees to manage risks we have systems of internal control to protect and mitigate against any reasonably foreseeable risk. The control systems include:

We regularly review the main risks faced by the church and the main risks that have been identified for a church like ours are finance, safeguarding, health and safety, building maintenance and security.

We use a variety of people from either within the church or external third parties to provide advice and guidance on the relevant areas of risk. We use people with expertise in the different areas of risk to provide specialist and expert advice.

We believe that the internal financial controls comply with the relevant Charity Commission guidance.

Cash Reserves Policy

The Trustees have set a reserves policy which requires maintaining free cash balances in the general fund amounting to three months staff salaries.

Reserves should be maintained at this level which ensures that the Charity’s core activity could continue during a period of unforeseen difficulty. The reserves should be maintained in an easily accessible form.

The calculation of the required level of reserves is an integral part of the organisation's annual planning, budget and forecast cycle.

It takes into account risks associated with each stream of income and expenditure being different from that budgeted. Planned activity level, and the Church’s commitments to its stakeholders. Unexpected shutdown of the Church. Future spending plans and expected liabilities and anticipated building costs. It also reflects as far as possible the current economic climate and trends.

The reserves policy will be reviewed by the Trustees every 12 months.

Based on August 2024 payroll, balances should have been £143,970 and were £107,330. On 1st July 2024, a new post was appointed to with responsibility for sourcing additional external funding in order to bridge this shortfall.

Based on August 2023 payroll, balances should have been £128,138 and were £156,625.

Page 4

Plans for future periods

As a church we are looking to consolidate our financial position to enable greater support for new and existing ministries. This will enable us to support new and existing ministries and charities that support people living in poverty and suffering financial hardship and to enhance the lives and opportunities of all people in the Tees Valley area, but specifically those with the greatest needs.

As we continue to grow, specifically in the numbers of people who have been attending our Sunday meetings, we are considering options should the congregation grow beyond the capacity of the building. We are also considering further staffing to meet the needs of a growing congregation.

As we look to continue to grow as a church we have re-shaped the leadership team, to help drive forward the growth of the church.

As we continue to set the vision and direction of the church in the future, we are continuing to focus on vision driven budgeting and implementing new policies and structures to enable this.

Structure, Governance and Management

Governing Document

Tees Valley Community Church is a company limited by guarantee governed by its Memorandum and Articles of Association 8th March 2006 as amended by special resolution dated 12th April 2015. It is registered as a charity with the Charity Commission. Members of the charitable company guarantee to contribute amounts not exceeding £1 to the assets of the charitable company in the event of winding up.

Appointment of Trustees/Directors

The Trustees keep the composition of the board under review and will seek to appoint additional members with appropriate skills and expertise should the need arise. Interested parties are given details of the background of the charitable company in order to make them aware of current activities.

The methods of appointment of Trustees are set out in the Articles of Association.

Members may propose the appointment of a person as a Trustee at any general meeting by following the notice and other requirements set out in the Articles.

The charity may by ordinary resolution appoint a person who is willing to act as a Trustee.

Persons willing to be appointed as Trustees must subscribe to the Statement of Faith attached to the Articles.

In selecting individuals for appointment, the Trustees are required to have regard to the skills, knowledge and experience required for the effective administration of the charity.

The Trustees have recognised that there is a need to develop a training policy for the Trustees. Steps will be taken to finalise this in the coming months.

Statement of Responsibilities of the Trustees

The Trustees (who are also the directors for the purposes of company law) are responsible for preparing the Trustees’ Annual 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 church (the charity and company) and of the income and expenditure for that period. In preparing these financial statements, the trustees are required to:

Page 5

The Trustees are also responsible for:

As a faith-based organisation, the Trustees also recognise their responsibility to uphold the mission and values of the church in all its activities and decisions. They commit to maintaining integrity, transparency, and accountability in both spiritual and financial stewardship.

Insofar as the Trustees are aware:

Decision making and management

The Trustees meet bi-monthly to discuss finances, strategic and operational issues and the Trustees have responsibility for all legal decision making.

The church Eldership team meet twice a month to discuss church ministry activities and make decisions on the vision and direction of the church.

There is also an Executive staff team that meets weekly to make decisions on the church vision and how this will be implemented in practice.

Day to day decisions are delegated to operational staff and employed Pastors. All church staff are encouraged to make proposals and suggestions for discussion at the meeting of Trustees of the Executive Team meetings.

Key Management Personnel Pay Reviews

As with all staff, pay increases are considered annually by the Trustees. When reviewing salaries the Trustees have consideration of both the charitable and private sector as benchmarks. Any Trustee with a conflict of interest will absent themselves from any discussions on pay reviews for themselves or other parties who they have an interest in.

Related parties and collaborations

In pursuit of its objectives, the Charity supports and collaborates with a number of other charitable organisations and local churches.

Three13 Training and Enterprise Limited

Three13 Training and Enterprise Limited is a local charity that works on a variety of projects, mainly working with people from socially deprived backgrounds, providing training and job opportunities to help people gain employment.

In partnership with Three13 Training and Enterprise Limited, we have developed our site to include office space and work experience opportunities for Three13 Training and Enterprise Limited to use in their training programmes.

Three13 Training and Enterprise Limited is a close partner of the Charity, and we have been working together to see people’s lives and prospects changed, providing formal training and individual mentoring for the learners working with TVCP.

Taking Ground

This is a group of churches connected together and based in the North East of England and North Yorkshire. As a group of churches, we work together to support each other’s work, providing joint leadership and training opportunities.

Page 6 WorkSn8 tO8ethef wlth Takln8 Ground. the Charlty has established a bible School at our centre and the rnaln teachlng on the blble school has been provlded by members of the Charity. Taklne Ground Music serve5 not only our church, but all the thurthes together In Takln8 Ground provldlng creatlve5 ie50uros and creatin8 new music and worshSp event5 for the wlder communlty to take part In. CAP Is a Chrlstlan tharltable company In the Unlted Kln8dom founded in Bradford, West yO￿$h￿re by John Kirkby In 1996. It Is a natlonal organlsatlon speclallsln8 In debt ￿unsellIn8 for people In flnandal dlfflculty. Ineludlng those In need of bankruptcy or Insolvency. It also provldes Job Clubs for thosè soekln8 employment and Fresh Start Courses for people lookln8 to overcome addl¢tlons and dependencles. We have an employed worker based In our prem15e5 providin8 the full debt and ad¥lce servlce to Customers based In the Stockton area and helpln8 With wartlcal needs suth as food hampers and findln8 furnlture and clothes for peoplè. The m￿age Trust Is a Chrlstlin charlty worklTha to Improve the Ilves of youn8 people In the UK and beyond thr￿Sh work In schools. prlson5 and cornrnunltle5. Worklng In partnershlp wlth churches and other or8anlsatlons, The Message Trust Is In Mntact wSth around ICQ,OIJO young people each year. The Mess4e Tiust hweset up a North East hub b￿ed In our cent￿. and we are wofklnq In partnershlp to help people from the rn05t sodolly deprfved area$ of the Tees Valley. We work closety wlth The Message Trusl to run a Communlty Grocers to provlde affordable food to lo￿1 communltles and also to run Eden Projects, whlch are almed at brln8ln8 transfoimatlon to local communltles, Junctlon 42 works In prlsons and Cornmunltles acro￿ north easl En8land •nd central Scotland, supportlng people throu8hout the lourney of stody and rehabllltatlon. Thelr vlslon Is to see the Il¥es of offender$ and thelr communltles ¥lslbly transformed throu8h supporL empowerment and opportunlty. The support Is la5tin8 and is bullt around. Employabllity & Entrepreneurshlp. bulldln8 up conlldence and experlence to develop work-readv sklllsets and entrepreneurlal mlndsets. We work together lo provlde suppor¢ mentorln8 and asslstan¢e to reconnect people wlth the world and to help them back l1)to￿b5. We also run a weekly church ser¥lce Jolntly wlth Junctlon 42 and ihe Moses Project and In Mlddlesbrou8h where we are the lead church supportln£ the event. This report has been prepared In accordan¢e wlth the spedal pro¥lslons relat1￿ to cornpanles subject to the Small Companle5 Re8lme wlthln part 15 of the Companles Act 2006. This Report was approved by the Board on .......￿9........￿1￿.Y.......- 2025 Slgned on Its behalf by:........ Matthew Biddlecombe- Trustee and Dlrector

Page 7

TEES VALLEY COMMUNITY CHURCH AUDITOR’S REPORT TO THE TRUSTEES for the year ended 31st August 2024

Opinion

We have audited the financial statements of Tees Valley Community Church (the ‘charitable company’) for the year ended 31 August 2024 which comprise the Statement of Financial Activities including Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements including 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. Our responsibilities under those standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Financial Statements’ section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have 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

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in 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 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 regard to going concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the Trustees’ annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinion on Other Matter Prescribed by the Companies Act 2006

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

Page 8

Matters on which we are Required to Report by Exception

In the light of our 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 directors’ report included within the Trustees’ report.

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

As explained more fully in the Trustees’ responsibilities statement set out on page 11, the Trustees (who are also the directors of the charitable company for the purposes of charity 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.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for 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 misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our 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, we identified that the principal risks of non-compliance with laws and regulations related to Company and Charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements.

We evaluated management’s opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team include:

Page 9

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely it is that we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

Mrs A L Cowley FCA (Senior Statutory Auditor) for and on behalf of Baines Jewitt Limited Statutory Auditors Spitfire House 19 Falcon Court Preston Farm Industrial Estate STOCKTON ON TEES TS18 3TU

21 May 2025

Page 10

TEES VALLEY COMMUNITY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES (including an income and expenditure account) for the year ended 31st August 2024

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Total incoming resources
Expenditure on:
Charitable activities
6
Total expenditure
Net income/(expenditure)
Transfer between funds
Net movement in funds
7
Reconciliation of funds
Total funds brought forward
16
Total funds carried forward		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2024
2024
2024
£
£
£
756,115
38,963
795,078
89,990
154,449
244,439
23,846
-
23,846
869,951
193,412
1,063,363
909,634
196,369
1,106,003
909,634
196,369
1,106,003
(39,683)
(2,957)
(42,640)
(5,034)
5,034
-
(44,717)
2,077
(42,640)
1,623,567
78,683
1,702,250
1,578,850
80,760
1,659,610		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2023
2023
2023
£
£
£
667,381
28,976
696,357
61,573
112,867
174,440
42,086
9,151
51,237
771,040
150,994
922,034
813,048
88,981
902,029
813,048
88,981
902,029
(42,008)
62,013
20,005
-
-
-
(42,008)
62,013
20,005
1,665,575
16,670
1,682,245
1,623,567
78,683
1,702,250

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

All income and expenditure derive from continuing activities.

The notes on pages 13 to 23 form part of these financial statements

Pagp 11 TEES VALLEY COMMUNITY CHURCH BALANCE SfrKEET As o13tst August 2024 Note 20Z4 Flxed asgels Tanoble assets Total flmd 4gsets 12 1552,280 1.552.280 1.545.625 1.545.625 Cwrent •Mets Debtors falllng due wllhin one year Debtors fallln8 due after more than one yvar cash at bank and In hand Total ¢urrent •ss•ts 13 18,710 32.353 13 124.724 144.434 169,41 201,759 U•bllltles Credltors falllni due wlthln one year N•t ¢uNent •ssets Total assets lem currnnt Ilibllltlei 14 37,104 107,330 1.659,610 4S.134 156,625 1.702,250 T•tal n•t •swts 15 1,6S9.610 1,702,250 Th• lunds ol th th•rfty Re51ri¢ted Income funds Unreslrlrted In¢ome funds Tot•1 <￿rfty ￿nd$ 16 80,760 1578 850 1,659,610 78,683 1623 $67 1,702.250 16 These accounts were approved by the board of dlrertors and authorlsed for issue on .......... and are sl8ned on thelr behalf by: Matthew BIddle￿rnbe- Dlrertor and Trustee Company Numbef: 05735104 The noies on page$ 13 to 23 form part of these financlal statements

Page 12

TEES VALLEY COMMUNITY CHURCH

CASH FLOW STATEMENT
for the year ended 31st August 2024
2024 2023
£ £
Cash flows from operating activities:
Net cash provided by (used in) operating activities (21,633) (8,920)
Cash flows from investing activities:
Interest 1,722 673
Purchase of tangible assets (24,771) -
Net cash provided by (used in) investing activities (44,682) (8,247)
Change in cash & cash equivalents in the year (44,682) (8,247)
Cash & cash equivalents at the beginning of the year 169,406 177,653
Cash & cash equivalents at the end of the year 124,724 169,406
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
for the year ended 31st August 2024
Net income/ (expenditure) for the reporting period (as per the statement of financial
activities)
Adjustments for:
Depreciation
Interest
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by (used in) operating activities
Analysis of Cash
Cash and cash equivalents		 2024
£
(42,640)
18,116
(1,722)
12,643
(8,030)
(21,633)
124,724
124,724		 2023
£
20,005
26,525
(673)
4,856
(59,633)
(8,920)
169,406
169,406

Page 13

TEES VALLEY COMMUNITY CHURCH

NOTES TO THE ACCOUNTS for the year ended 31st August 2024

1. Accounting Policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of Preparation

The financial statements have been prepared in accordance with the Charities: Statement of Recommended Practice (applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The charitable company constitutes a public benefit entity as defined by FRS 102.

b) Going concern

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

c) Income Recognition Policies

Items of income are recognised and included in the accounts when all of the following criteria are met:

For legacies entitlement is taken as the earlier of the date:

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the Charity has been notified of the Executors intention to make a distribution.

Where legacies have been notified to the Charity, or the Charity is aware of the granting of the probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income received in advance of a specific performance or provision of other specified service is deferred until the criteria for income recognition are met.

d) Donated Services and Facilities

In accordance with the Charities SORP (FRS 102) the general time of volunteers is not recognised in the accounts.

e) Interest Receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.

Page 14

f) Fund Accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Charity.

Designated funds are unrestricted funds of the Charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations which the donor has specified are to be solely used for the particular areas of the Charity’s work or for specific projects being undertaken by the Charity.

g) Expenditure and Irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

Expenditure is classified under the following activity headings:

• Expenditure on Charitable activities include the cost of running the church, café and associated projects.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Tangible Fixed Assets

Individual fixed assets costing £5,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows:

i) Debtors

Trade and other debtors are recognised at the settlement amounts due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.

j) Cash at Bank and in Hand

Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

k) Creditors and Provisions

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

l) Pensions

The Charity operates a defined contribution scheme, the assets of which are held outside the Charity. The contributions by the Charity in the year are detailed in note 9.

m) Grants

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, and any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

n) Operating Leases

The Charity classifies the lease of photocopying equipment as operating leases, the title to the equipment remains with the lessor. Rental charges are charged on a straight-line basis over the term of the lease.

Page 15

2. Legal Status of the Charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

3. Income from donations & legacies

Donations, Legacies, Gifts & Grants Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
Funds
Funds
Funds
Funds
Funds
Funds
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
756,115
38,963 795,078
667,381
28,976 696,357

The charity benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102) the economic contribution of general volunteers is not recognised in the accounts.

4. Income earned from charitable activities

Income earned from charitable activities
Coffee Shop
Performance related grants & donations
Other Income		 Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
Funds
Funds
Funds
Funds
Funds
Funds
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
66,706
-
66,706
60,574
-
60,574
13,867
142,353
156,220
999
112,867
113,866
9,417
12,096
21,513
-
-
-
89,990
154,449 244,439
61,573
112,867 174,440

5. Income earned from other trading activity

2023 restated to exclude netting off charges to/from Three13 Training & Enterprise Limited and Taking Ground

Income from use of premises
Other Income
Interest		 Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
Funds
Funds
Funds
Funds
Funds
Funds
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
7,475
-
7,475
7,091
-
7,091
14,649
-
14,649
34,322
9,151
43,473
1,722
-
1,722
673
-
673
23,846
-
23,846
42,086
9,151
51,237

Page 16

6. Analysis of expenditure on charitable activities

Unrestricted Unrestricted Unrestricted Restricted Restricted Total
Funds Funds Funds Funds Funds Funds
Church Coffee Shop Community
& Outreach		 Church Community
& Outreach
2024 2024 2024 2024 2024 2024
£ £ £ £ £ £
Staff Pay 371,602 49,762 57,191 4,743 45,721 529,019
Staff Travel & Subsistence 6,773 787 4,364 6,597 7,745 26,266
Buildings Costs 131,338 248 1,152 4,724 8,110 145,572
Other Direct Costs 38,707 38,236 8,575 15,367 39,475 140,360
Overheads 62,296 419 956 3,633 10,477 77,781
Missions / Gifts 118,398 2 1,450 37,593 11,446 168,889
Depreciation 17,078 300 - - 738 18,116
746,192 89,754 73,688 72,657 123,712 1,106,003
2023 Unrestricted Unrestricted Unrestricted Restricted Restricted Total
Funds Funds Funds Funds Funds Funds
Church Coffee Shop Community
& Outreach		 Church Community
& Outreach
2023 2023 2023 2023 2023 2023
£ £ £ £ £ £
Staff Pay 296,291 44,774 104,819 - 25,010 470,894
Staff Travel & Subsistence 9,942 483 3,964 - 3,481 17,870
Buildings Costs 101,235 55 7,611 - 678 109,579
Other Direct Costs 38,311 36,195 1,624 - 18,622 94,752
Overheads 44,918 598 4,670 288 3,986 54,460
Missions / Gifts 82,424 - 9,347 33,747 2,431 127,949
Depreciation 25,487 300 - - 738 26,525
598,608 82,405 132,035 34,035 54,946 902,029
7. Net income/(expenditure) for the year
This is stated after charging: 2024 2023
£ £
Property Leases 4,000 -
Equipment Leases 4,298 2,302
Depreciation 18,116 26,525
Audit Fees (2023 restated to exclude payroll services) 8,220 3,120

Page 17

8. Analysis of Staff Costs and Trustee Remuneration, expenses and related transactions

Salaries and Wages
Social Security
Employer contribution to Defined Contribution Pension Scheme		 2024
2023
£
£
486,658
482,898
30,850
30,562
11,511
11,505
529,019
524,965

(The above recharges include employers’ national insurance and employers defined pension contributions)

No employees had emoluments in excess of £60,000

Pension costs are allocated to activities in proportion to the related staffing costs incurred.

2024 2023
£ £
Restricted 1,396 737
Unrestricted 10,115 10,768

Trustee remuneration

The company's Memorandum and Articles of Association specifically prohibits them from receiving any remuneration or benefit in respect of their role as directors of the company or Trustees of the charity. They are remunerated in their capacity as employees of the company as expressly permitted.

One of the Trustees of the charitable company is also a pastor within the church and has received the following amounts from the charitable company relating to their pastoral activities:

Matthew Biddlecombe
Salary
Social security costs
Employer contribution to Defined Contribution Pension Scheme		 2024
2023
£
£
49,500
47,670
5,608
5,443
1,485
1,430
56,593
54,543

A husband of one of the Trustees is employed within the church and has received the following amounts from the charitable company relating to their services:

David Marley
Salary
Social security costs
Employer contribution to Defined Contribution Pension Scheme		 2024
2023
£
£
39,816
38,490
4,239
4,116
1,194
1,155
45,249
43,761

Page 18

2024 2023
£ £
The total employment benefits of the Trustees in the year were: 101,842 98,304

A daughter of one of the Trustees is employed within the church and has received the following amounts from the charitable company relating to their services:

Abi Horner (nee Dunkley)
Salary
Social security costs
Employer contribution to Defined Contribution Pension Scheme		 2024
2023
£
£
10,480
10,234
191
159
314
307
10,985
10,700

The son-in-law of one of the Trustees is employed within the church and has received the following amounts from the charitable company relating to their services:

Matthew Horner
Salary
Social security costs
Employer contribution to Defined Contribution Pension Scheme		 2024
2023
£
£
38,806
36,450
4,133
3,864
1,164
1,093
44,103
41,407

A daughter of one of the Trustees was employed within the church and received the following amounts from the charitable company relating to their services:

Emma Biddlecombe 2024 2023
£ £
Salary 1,265 144
2024 2023
£ £
Expenses paid to Trustees and their family members in the year amounted to: 11,154 10,393
Expenses reimbursed covered IT Equipment, Other Equipment, Travel & Subsistence and Food for events.
Four Trustees and five family members received reimbursements.
2024 2023
£ £
Donations to the charity from Trustees, family members & key management staff: 50,608 31,281

Page 19

9. Staff numbers

The average monthly number of employees during the year was as follows:

Administration
Coffee Shop
Community and outreach
Ministerial		 2024
2024
2023
2023
Headcount
FTE
Headcount
FTE
12
6.1
11
5.8
7
1.8
5
1.4
4
3.9
5
4.3
5
3.4
5
3.4
28
15.2
26
14.9

10. Related Party Transactions

Martin Dunkley, Matthew Biddlecombe and Steven Mcfarlane are Trustees of both Tees Valley Community Church and Three13 Training & Enterprise Limited, a charitable company that runs projects in the community.

Details of transactions during the year and balances at the year-end date are as follows:

Details of transactions during the year and balances at the year-end date are as follows:
2024 2023
£ £
Expenditure:
Gifts to Three13 Training & Enterprise Limited 34,000 6,000
Contributions to Three13 Training & Enterprise Limited for employees on its payroll 5,954 5,720
Income:
Contributions from Three13 Training & Enterprise Limited for employees on the payroll 4,982 8,615
Included in debtors:
Owed by Three13 Training & Enterprise Limited 166 1,051
Included in creditors:
Owed to Three13 Training & Enterprise Limited 56 5,061

Three13 Training & Enterprise Limited occupies a building owned by Tees Valley Community Church on a rent-free basis.

Page 20

Martin Dunkley, Matthew Biddlecombe and Steven Mcfarlane are Trustees of both Tees Valley Community Church and Taking Ground, a charitable company whose aims and objectives are to advance the Christian faith in the North East and other areas as the Trustees see fit.

Details of transactions during the year and balances at the year-end date are as follows:

2024 2023
£ £
Expenditure:
Support to Taking Ground 59,719 49,416
Income:
Contributions from Taking Ground for employees on the payroll 3,322 38,348
Included in debtors:
Owed by Taking Ground - 15,083
Included in creditors:
Owed to Taking Ground - 754

11. Corporation Tax

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

12. Tangible Fixed Assets

Cost as at 01.09.23
Additions in year
Disposals in year
Cost as at 31.08.2024
Depreciation as at 01.09.2023
Disposals in year
Charge for year
Depreciation as at 31.08.2024
Net book value as at 01.09.2023
Net book value as at 31.08.2024		 Freehold
Land and
IT
Office
Other
Total
Buildings
Equipment
Equipment
Equipment
£
£
£
£
£
1,512,773
88,427
29,036
87,977
1,718,213
-
-
-
24,771
24,771
-
(64,977)
(27,896)
-
(92,873)
1,512,773
23,450
1,140
112,748
1,650,111
-
87,202
29,036
56,350
172,588
-
(64,977)
(27,896)
-
(92,873)
-
784
17,332
18,116
-
23,009
1,140
73,682
97,831
1,512,773
1,225
-
31,627
1,545,625
1,512,773
441
-
39,066
1,552,280

Page 21

13. Debtors

Trade debtors
Prepayments
Accrued Income
Other debtors
Long Term Debtors
14.
Creditors: amounts falling due within one year
Trade creditors
Income In Advance
Accrued Costs
Taxation and Social Security
Other creditors
15.
Analysis of net assets between funds
Tangible fixed assets
Cash at bank and in hand
Other net current assets/(liabilities)
Total		 General
£
1,551,634
43,964
(17,394)		 2024
2023
£
£
1,335
750
7,446
6,586
9,763
8,883
166
16,134
18,710
32,353
1,000
-
1,000
-
2024
2023
£
£
15,767
12,911
-
4,158
21,056
13,176
-
8,774
281
6,115
37,104
45,134
Restricted
Total
£
£

646
1,552,280

80,760
124,724
-
(17,394)
1,578,204
81,406
1,659,610

Page 22

16. Analysis of charitable funds

Analysis of charitable funds
General Fund
Restricted Funds
Enterprise Projects
Leadership Development
Youth Trips
Hardship Fund
Community & Outreach
Ukraine
National Lottery Community Fund
Restricted Funds Total
Total funds
General Fund
Restricted Funds
Leadership Development
Hardship Fund
Community & Outreach
Ukraine
Restricted Funds Total
Total funds		 Opening
Incoming
Resources
Closing
Balance
Resources
Expended
Transfers
Balance
2024
2024
2024
2024
2024
£
£
£
£
£
1,623,567
869,951
(909,634)
(5,034)
1,578,850
-
21,530
(990)
-
20,540
5,000
-
-
-
5,000
-
19,011
(15,750)
-
3,261
5,612
959
(1,436)
-
5,135
44,659
92,988
(106,413)
5,034
36,268
23,412
23,721
(36,577)
-
10,556
-
35,203
(35,203)
-
-
78,683
193,412
(196,369)
5,034
80,760
1,702,250
1,063,363
(1,106,003)
-
1,659,610
Opening
Incoming
Resources
Closing
Balance
Resources
Expended
Transfers
Balance
2023
2023
2023
2023
2023
£
£
£
£
£
1,665,575
771,040
(813,048)
-
1,623,567
5,000
-
-
-
5,000
3,662
2,475
(525)
-
5,612
4,122
95,483
(54,946)
-
44,659
3,886
53,036
(33,510)
-
23,412
16,670
150,994
(88,981)
-
78,683
1,682,245
922,034
(902,029)
-
1,702,250

Name of fund

Description, nature and purposes of the fund

General Fund

The 'free reserves' are after allowing for all designated funds.

Restricted Funds

Enterprise Projects

Leadership Development Youth Trips Hardship Fund

Community & Outreach

Ukraine National Lottery Community Fund

Enterprise projects to provide training and work experience for the most socially and economically deprived communities in the Tees Valley area.

To provide funds for training Church Leaders.

Events for young people to provide opportunities for them to grow in their faith.

To provide assistance to people facing financial difficulties.

To provide local projects serving the most socially and economically deprived communities in the Tees Valley area.

To provide resources for the Christian and wider community in Ukraine. Community Organisations Cost of Living Fund

Page 23

17. Commitments

Commitments
£
Lease payments due not later than one year 10,392
Lease payments due within two and five years 10,058
Lease payments due beyond five years 94

18. Pension commitments

The charity operates a defined contribution scheme the assets of which are held separately from those of the charity in an independently administered fund.

At the balance sheet date unpaid contributions of £nil were due to the fund.