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2023-03-31-accounts

Charity registration number 1115631

Company registration number 5664908 (England and Wales)

WELCOME CHURCH

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

WELCOME CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Michael David Deavin
(Chairman)
Lisa Marie Green
Michael William Reid
Robin Bryan David Willison
Nicholas Kenyon Hornzee (Appointed 22 July 2022)
Melissa Clark (Appointed 17 October 2023)
Adebowale Fletcher (Appointed 16 October 2023)
Eldership Team Steve Petch Lead Elder
Dean Guy Elder
David Everitt Elder
Mike Reid Elder
Christopher Hawes Elder
Eugene Engelbrecht Elder
Robin Willison Elder
Nnamdi Anyaegbunum Elder
Secretary Vacant
Charity number 1115631
Company number 5664908
Registered office Welcome Church
Church Street West
Woking
Surrey
GU21 6DJ
Auditor Frances Wilde FCCA DChA
Warner Wilde
Chartered Certified Accountants
4 Marigold Drive
Bisley
Surrey
GU24 9SF
Bankers Barclays Bank Plc
Town Gate House
Church Street East
Woking GU21 6AE
Bank (Mortgage) CAF Bank Ltd
25 Kings Hill Ave
Kings Hill
West Malling ME19 4JQ

WELCOME CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Project Managers

Solicitors

Michael Edwards Consultants Limited Oak House Tanshire Park Elstead Surrey GU8 6LB Moore Barlow LLP Concord House 165 Church Street East Woking GU21 6HJ

WELCOME CHURCH

CONTENTS

Page
Trustees' report 1 - 7
Statement of trustees' responsibilities 8
Independent auditor's report 9 - 12
Statement of financial activities 13 - 14
Balance sheet 15 - 16
Statement of cash flows 17
Notes to the financial statements 18 - 30

WELCOME CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The charity's objects as set out in the governing document are:

T here has been no change in these during the year.

Welcome Church primarily fulfils these objectives by:

  1. Holding regular church meetings to worship God and to train, teach and care for the church members; to equip them as effective Christians.

  2. Preaching the gospel, and planning and implementing an on-going strategy of evangelism.

  3. Providing pastoral support and care (and practical support and provision where appropriate) for those who attend.

  4. Facilitating and equipping teams of volunteers to run church activities, to care for one-another and to share the gospel with others.

  5. Providing training and encouragement to all individuals to live a Christ-like lifestyle of prayer and commitment to God.

  6. Run and/or support a range of community projects that directly provide social benefit and care to the community (eg. CAP courses, a Debt Centre, Community Cafe, parent and toddler groups, Foodbank etc).

  7. Resourcing, equipping and supporting (including the provision of personnel, finance and training) of other churches and of Christian work and ministries both in the UK and overseas.

  8. 1 -

WELCOME CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

This is our first full year functioning since the Covid 19 lockdown was lifted in July 2021 and church activities returned to normal in September 2021. Since leaving lockdown our activities and attendance and involvement at Welcome Church have flourished and continued to grow in size.

Our key activities during the year have been:

The above list of activities is just a snapshot of the churches principal activities. The full list of the church’s activities would be too long to list in full and would almost certainly miss out some activities. This is particularly the case because almost all that the church does is resourced, managed and led by large teams of volunteers.

WELCOME CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The trustees have considered the guidance published by the Charity Commission regarding public benefit and the work of the charity.

Gifts to external organisations and individuals are considered by the Elders on the basis of need and fulfilment of the charitable objectives. There are no upper or lower limits of support. The Elders and Trustees aim to give away approximately 10% of received general fund income.

Welcome Church is very grateful to the countless volunteers who give their time and resources regularly to serve the church and to enable us to do all that we do. Without the regular committed involvement of hundreds of volunteers, we would not be able to function or achieve our objectives.

As well as the church’s organised teams of volunteers many members of Welcome Church are also involved in helping and supporting other members on a pastoral level, and/or are involved in supporting other social ministries connected with Welcome Church (eg, helping at Foodbank or Street Angels).

Achievements and performance

The year began with a large social event on 1 st April (delayed from earlier in the year due to Covid). It was a great way to start the year with hundreds of people gathering and celebrating after the long covid period of the previous 2 years.

Shortly after this in May, our Welcome Kids group held a weekend away for about 40 children in school years 3 to 6. This was a great weekend with the children building friendships and growing in their knowledge and relationship with Jesus. This will become an annual event and is planned as a larger event in May 2023.

Our youth group has continued to meet and regularly gathers in excess of 100 young people. In August they joined thousands of others at the Newday youth festival in Norwich.

We also held a fantastic weekend away for all the church over the August bank holiday. We hired out a Scouts camping centre in the New Forest and gathered everyone who wanted to come for a long weekend of social activities, worship, teaching, fun, food and friendship.

Attendance and involvement in all activities has grown. In September 2021 we had an average weekly Sunday morning attendance of 374 adults and 166 children and youth – 540 people in total. In September 2022 this had risen to 536 adults and 202 children and youth - 738 people in total. This is an increase of 37% in the total number involved on a Sunday.

Over this report period we have continued to livestream our Sunday morning meetings (primarily for the benefit of people who would normally attend but are unable due to health or other reasons) and each meeting has remained steady with about 40 screens watching.

WELCOME CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

The increase in numbers attending on a Sunday has put pressure on all areas but most significantly on our children’s groups and the space they have. In January 2023 we split our year 1 to 6 group and launched a new group for years 5 & 6 called Welcome Kids Seniors. This has been very successful with the children in this group really responding well to a more focused group. However, to enable this and our growing youth group we have needed to borrow rooms in a nearby building. This is a good temporary solution, but we will be investigating other options over the next few years.

Over the year we also launched “Welcome Kids Plus”. This is a team of specialist children’s workers who work alongside and support our children’s groups in integrating and supporting children with additional needs. This has been a great support to our kids work and some of the families with us, with one new parent explaining that it is the first time they have been able to take their child to a church kids group and leave them there with confidence whilst the parent attends the adult meeting.

Our Welcome Café and associated CAP Courses and support groups has been very successful during the year. It is completely run by volunteers and during the last year provided approximately 3,600 meals. The Café has been a great support for our CAP services and many people have benefitted from attending these during the year. We launched several additional workshops during the year including a “Cost of Living Workshop” that was popular.

As part of our Welcome Works activities, we have actively built many links with other agencies and with Woking Borough Council and provided support and hosted activities with these groups. The importance of our social action activities has become even more significant since Woking Borough Council issued a section 114 notice in January 2023 with a deficit of £1.2bn, impacting other services that are available in the area.

In the autumn of 2022 we launched a series of events to help new people connect to us. This began with a Fun Day in September 2022, moved on to a Firework display in November, Carols in December and a guest Sunday in January 2023. These were very successful with most of the church involved in either helping to run the events or inviting friends to attend. The individual social events all had between 1,500 and 2,200 people attending and a significant number returning for the guest Sunday and other meetings since.

Staff Changes

There have been three staff changes during this financial year.

On 25 th April 2022 , Juliet joined our team as our first Comms Manager. Her role is to help us manage and improve all of our communications, website, social media etc. Just before the end of this report period Juliet informed us that she will be leaving in August 2023 to work as a volunteer for a period of time at the project we support in Brazil. We will review this role and look to appoint a replacement when that happens.

In December 2022, Luqman and his wife Kimberley moved from India for 1 year under a Certificate of Sponsorship: Minister of Religion visa. Luqman was employed for 1 year as a trainee Church Leader whilst Kimberley volunteered full time alongside him. So far Luqman and Kimberley have been involved in all areas of our churches activities and as well as us helping to training and support them, they are helping us in all that we do.

In February 2023 Mark and his family moved from India (where he had a significant role in supporting Commission India in an operations role) to Woking and joined our team as an Operations Manager in March and brings some great skills and experience to our team.

Having served with our team for many years, Dean took a period of sabbatical rest during this financial year and responsibility for our pastoral care was restructured, with Anna now leading this as a volunteer. Anna has built and supports a team of volunteers who support pastoral care across the church.

WELCOME CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Other Activities

The church continues to be part of the Commission family of churches. Welcome Church has supported Commission financially and also practically by providing leadership input to support Commission's Churches locally and overseas.

Steve has continued to have a significant role with Commission UK and has served as part of the UK Leadership Team. Darren has also taken on a new role supporting Commission UK and is leading the team that will deliver The Commission Festival in August 2023. This is the new annual festival over August bank holiday weekend for all Commission Churches in the UK and is expected to gather about 3,000 – 3,500 people.

We have continued to operate our Hardship Fund to support people in short term situations of need.

We have continued to support Ukrainian (and other) refugees during the year.

At the start of the year we held a special offering to support victims of the Turkey earthquake.

Building Project

We have now fully settled into our new building and growth over the last year has meant we are already filling it up with pressure on kids’ rooms. We are currently borrowing rooms in a nearby building on a Sunday and are starting to investigate other options.

Regular monthly payments were made to CAF Bank during the year to continue the repayment of the commercial mortgage.

During the year we have started to make use of the building for external hire, with a small income coming from this.

Financial review

The Trustees and Elders set a budget (income and expenditure) at the start of the year and this is monitored closely through the year with the Trustees and Elders receiving monthly written reports as well as verbal reports during Trustee meetings.

As we are all aware, the UK economy struggled during this period and costs and interest rates increased considerably. This had an effect on us and on the interest payments on our mortgage.

Total income for the 12 months ending 31st March 2023 was £1,291,820, and income to the General (unrestricted fund) were £1,133,582.

Total repayments of £69,361 were made during the year against the bank loan leaving an outstanding balance of £1,756,578.

We gave away £ 179,141 of our total income throughout the year (with £ 101,770 coming from unrestricted funds) representing 14% of total income and 8% of gifts to the unrestricted fund.

We finish the year with a general fund unallocated surplus of £217,280 before depreciation.

WELCOME CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

At the end of the financial year the church’s reserves totalled £1,793,118. £7,558 of this is restricted to Welcome Works, and £79,252 is in the hardship fund and £17,340 in the Commission India Fund.

Over the next few years, we will be looking at how these reserves are used between future growth and development costs and potential reduction of our building loan or other building project. It is the aim of the charity to keep a minimum of £100,000 in reserves to cover approximately 3 months employment needs and to act as operating capital.

The principal source of funds is the gifts and offerings that are given by those that attend and are part of Welcome Church.

All activities of the church are covered by risk assessments and actions are taken to minimise all operating risks to an acceptable level.

The largest individual risks to the church at the current time is the return of the Covid pandemic and the ongoing risk of anything that would cause loss of reputation.

Structure, governance and management

Welcome Church is an incorporated company limited by guarantee under the memorandum and articles dated 3rd January 2006, which began to operate on 1st October 2006.

The trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Michael David Deavin (Chairman) John Allan Flewitt Lisa Marie Green Michael William Reid Robin Bryan David Willison Nicholas Kenyon Hornzee Melissa Clark Adebowale Fletcher

(Resigned 17 July 2023)

(Appointed 22 July 2022) (Appointed 17 October 2023) (Appointed 16 October 2023)

WELCOME CHURCH TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Decision making structure The church 15 led by a team of Elders who sel the vision, doctrine and oversigm of the church. The day lo day work of the charity 15 managed by a small staff leadership learn (called our Exe¢utuve Team) and all decision-making authority is delegated to this team. This teams consisting of Steve, Christopher, Dub and Darren. This team also meets regularly wrth a Strategic Leadership Team (consisting of a wder group of volunteer men and women from across the ¢hur¢h}. The Executive Team reports (via the Lead Elder and Director of Operations) lo the Trustees regularly and reports on progress, issues. finances and any other relevaThl items. Vacancies are filled from wlhin the church. The Church Elders and Trustees ¥MII nominate. discuss and approve any candidate5 for the role of Trustee. The individual is then consulted l interviewed by at least one member of the Eldership and Trustee team. After feedback to the rest of the Eldership and Trustees, if everyone is in agreement the individual will be appointed. To ensure that the skills and competencies of the Trustee5 are kept up lo the required standards. training is undertaken as required. All new Trustees are given appropriate briefing and induction training by the Chair of Trustees. They will also be made aware of relevant Charity Commission publications that they can access via the Charity Commission's website. Updates on charity law and other Trustee matters are clrculaled and discussed as appropriate. Welcome Church has membership andlor Telalionship wth several wider organisations. These organisalions Include.. Welcome Church is part of the Commission family of Churches, which in turn, is part of Newfronliers. Welcome Church plays a part in the local networks of churches including Churches Together in Woking. Welcome Church is part Of the Evangelical Alliance. Welcome Church is in partnership with Compassion UK to $upport children in povety in Togo. Welcome Church works in partnership wlh Christians Against Povety lo provide courses and services to help those in need in Woking. Auditor In accordance wth the company's articles, a resolution proposing that Frances WThlde FCCA DChA be reappointed as auditor of the company ¥MII be pul al a General Meeting. The trustees, report was approved by the Board of Trustees. Michael David Deavin {Chairman) Trust00 Date..

WELCOME CHURCH

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

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

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

WELCOME CHURCH

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WELCOME CHURCH

Opinion

We have audited the financial statements of Welcome Church (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, 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 charity 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the 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 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.

WELCOME CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WELCOME CHURCH

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’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.

WELCOME CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WELCOME CHURCH

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the charity through discussions with trustees and other management, and from our knowledge and experience of the charity and faith sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, the Charities Act 2011,, taxation legislation, data protection, employment, environmental and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

testing controls with walk through procedures and substantive transaction testing;

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;

tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining any accounting estimates were indicative of potential bias;

investigated the rationale behind significant or unusual transactions; and

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;

reading the minutes of meetings of those charged with governance;

enquiring of management as to actual and potential litigation and claims;

reviewing correspondence with HMRC and relevant regulators such as the Charity Commisison .

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

WELCOME CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WELCOME CHURCH

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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 charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

FJ Wilde FCCA (Senior Statutory Auditor) for and on behalf of Warner Wilde Limited

18 December 2023

Chartered Certified Accountants Statutory Auditor

Warner Wilde Limited Chartered Certified Accountants 4 Marigold Drive Bisley Surrey GU24 9SF

Frances Wilde FCCA DChA is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

WELCOME CHURCH

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

Current financial year
Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income and endowments from:
Donations and legacies
3
1,074,751
140,478
Charitable activities
4
45,990
8,945
Investments
5
660
-
Other income
6
16,940
4,056
Total income
1,138,341
153,479
Expenditure on:
Charitable activities
7
899,305
201,715
Other
12
-
83,908
Total expenditure
899,305
285,623
Net incoming/(outgoing) resources before transfers
239,036
(132,144)
Gross transfers between funds
(16,103)
16,103
Net income/(expenditure) for the year/
Net movement in funds
222,933
(116,041)
Fund balances at 1 April 2022
1,558,841
3,616,490
Fund balances at 31 March 2023
1,781,774
3,500,449		 Total
2023
£
1,215,229
54,935
660
20,996
1,291,820
1,101,020
83,908
1,184,928
106,892
-
106,892
5,175,331
5,282,223		 Total
2022
£
1,039,251
4,895
63
13,202
1,057,411
845,625
49,887
895,512
161,899
-
161,899
5,013,432
5,175,331

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 activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

WELCOME CHURCH

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

Prior financial year

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income and endowments from:
Donations and legacies
3
956,620
82,631
Charitable activities
4
-
4,895
Investments
5
63
-
Other income
6
11,061
2,141
Total income
967,744
89,667
Expenditure on:
Charitable activities
7
632,184
213,441
Other
12
-
49,887
Total expenditure
632,184
263,328
Net incoming/(outgoing) resources before transfers
335,560
(173,661)
Gross transfers between funds
(27,337)
27,337
Net income/(expenditure) for the year/
Net movement in funds
308,223
(146,324)
Fund balances at 1 April 2021
1,250,618
3,762,814
Fund balances at 31 March 2022
1,558,841
3,616,490		 Total
2022
£
1,039,251
4,895
63
13,202
1,057,411
845,625
49,887
895,512
161,899
-
161,899
5,013,432
5,175,331

WELCOME CHURCH

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
17
Net assets
Income funds
Restricted funds
20
Unrestricted funds - general		 2023
£
£
6,287,723
361,013
407,063
768,076
(80,535)
687,541
6,975,264
(1,693,041)
5,282,223
3,500,449
1,781,774
5,282,223		 2022
£
£
6,398,112
172,067
534,789
706,856
(186,393)
520,463
6,918,575
(1,743,244)
5,175,331
3,616,490
1,558,841
5,175,331

WELCOME CHURCH BALANCE SHEET ICONTINUED) ASAT31 MARCH 2023 The company is entitled to the exemption from the audit requirement ￿ntaIned in section 477 of the Companies Act 2006, for the year ended 31 Mareh 2023, although an audit has been carried out under section 144 of th¢ Charib'es Act 2011. The directors acknowledge their responsibilities for complying w(th the requirements of the Companies Act 20C6 wrth respect lo accounting records and the P￿paratIOn of financial statements. The member5 have not required the company lo obtain an audit of ils financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476. These financial statements have been prepared in accordance wi(h the provisions applicable to companies subject to the small companies regime. /#tL 2oz3 The financial statements were approved by the Trustees on ......................... Michael David Deavin {Chalmanl Trustee Company r•gi$tration number $664908 16-

WELCOME CHURCH

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
23
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from/(used in)
investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
2022
£
£
£
£
(59,026)
353,974
-
(114,436)
660
63
660
(114,373)
(69,360)
(79,985)
(69,360)
(79,985)
(127,726)
159,616
534,789
375,173
407,063
534,789

WELCOME CHURCH

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

1 Accounting policies

Charity information

Welcome Church is a private company limited by guarantee incorporated in England and Wales. The registered office is The Welcome Centre, Church Street West, Woking, Surrey, GU21 6DJ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

A liability is recognised when either a legal or constructive obligation is identified. Irrecoverable VAT is allocated to the same expense heading as the cost to which it relates.

WELCOME CHURCH

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

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

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

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

The Welcome Centre 2% (excluding land value) Plant and machinery 20% straight line Fixtures, fittings & equipment 20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

Tangible fixed assets acquired for below £1,000 are treated as an expense in the year of acquisition and not capitalised.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

WELCOME CHURCH

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

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
general general
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Donations and gifts 1,074,751 140,478 1,215,229 956,620 82,631 1,039,251

WELCOME CHURCH

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

3
Donations and legacies
Donations and gifts
Offerings and Gifts
896,513
-
Missionary and Wider
Gifts (inc tax refund)
-
124,212
Tax Refunds
178,238
16,266
1,074,751
140,478
4
Charitable activities
Activities Income
Analysis by fund
Unrestricted funds - general
Restricted funds
5
Investments
Interest receivable
6
Other income
Unrestricted
Restricted
funds
funds
general
2023
2023
£
£
Other income
16,940
4,056		 (Continued)
896,513
799,460
52,120
851,580
124,212
-
16,385
16,385
194,504
157,160
14,126
171,286
1,215,229
956,620
82,631
1,039,251
Activities
Activities
2023
2022
£
£
54,935
4,895
45,990
-
8,945
4,895
54,935
4,895
UnrestrictedUnrestricted
funds
funds
general
general
2023
2022
£
£
660
63
TotalUnrestricted
Restricted
Total
funds
funds
general
2023
2022
2022
2022
£
£
£
£
20,996
11,061
2,141
13,202

WELCOME CHURCH

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

7 Charitable activities

Charitable
Activities
Missionary
& Wider
Gifts
2023
2023
£
£
Staff costs
425,722
-
Depreciation and
impairment
110,388
-
Premises Costs
119,978
-
Equipment
38,673
-
Evangelism and Outreach
6,272
-
Training and Conferences
14,936
-
Refreshments and
Catering
14,024
-
Children's Work
1,911
-
YP and Impact
44,423
-
Deaf Ministry
7,279
-
Money Ministries
10,183
-
Professional Fees
6,053
-
Development
12,175
-
Sundries
63,141
-
875,158
-
Grant funding of activities
(see note 8)
-
179,141
Share of support costs
(see note 9)
40,516
-
Share of governance costs
(see note 9)
6,205
-
921,879
179,141
Analysis by fund
Unrestricted funds -
general
797,535
101,770
Restricted funds
124,344
77,371
921,879
179,141		 Total
2023
Charitable
Activities
Missionary
& Wider
Gifts
2022
2022
£
£
£
425,722
343,757
-
110,388
109,801
-
119,978
89,500
-
38,673
29,981
-
6,272
11,806
-
14,936
9,006
-
14,024
5,068
-
1,911
2,879
-
44,423
11,658
-
7,279
9,340
-
10,183
13,302
-
6,053
4,768
-
12,175
2,789
-
63,141
32,221
-
875,158
675,876
-
179,141
-
143,155
40,516
19,811
-
6,205
6,783
-
1,101,020
702,470
143,155
899,305
558,628
73,556
201,715
143,842
69,599
1,101,020
702,470
143,155		 Total
2022
£
343,757
109,801
89,500
29,981
11,806
9,006
5,068
2,879
11,658
9,340
13,302
4,768
2,789
32,221
675,876
143,155
19,811
6,783
845,625
632,184
213,441
845,625

WELCOME CHURCH

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

8 Grants payable

Missionary
Missionary &
& Wider
Wider Gifts
Gifts
2023
2022
£
£
Grants to institutions (16 grants):
Commission Apostolic Trust Ltd 73,000
66,000
Zimbabwe Project 17,025
2,753
Dwaar Church - Delhi 3,375
3,375
Emergency Relief Ukraine 7,454
33,386
Your Sanctuary -
2,000
Turkey Earthquake 28,719
-
Turkey Church 2,000
3,860
Woking Street Angel -
2,000
Brazil Church Project 13,818
11,275
Woking Food Bank -
2,000
Welcome Church, Austin USA -
825
Lebanon Church Project 5,170
6,702
New Life Church 10,000
-
Commission India 3,565
350
Hope Church Guildford 2,000
-
Shaftesbury Society 1,200
-
Other 1,278
1,210
168,604
135,736
Grants to individuals (15 grants) 10,537
7,419
179,141
143,155

WELCOME CHURCH

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

9 Support costs

Support
costs
Governance
costs
£
£
Staff Travel
4,333
-
Office Expenses
6,352
-
Printing and Stationery
5,731
-
Telephone and Postage
2,339
-
ITC/PIC/Commission
294
-
Other staff costs
21,467
-
Audit fees
-
6,205
40,516
6,205
Analysed between
Charitable activities
40,516
6,205		 2023
£
4,333
6,352
5,731
2,339
294
21,467
6,205
46,721
46,721		 Support
costs
Governance
costs
£
£
1,504
-
5,784
-
2,947
-
2,763
-
211
-
6,602
-
-
6,783
19,811
6,783
19,811
6,783		 2022
£
1,504
5,784
2,947
2,763
211
6,602
6,783
26,594
26,594

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

11 Employees

The average monthly number of employees during the year was:

Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
8
2023
£
360,816
37,289
27,617
425,722		 2022
Number
6
2022
£
291,888
28,958
22,911
343,757

WELCOME CHURCH

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

11 Employees (Continued)
The number of employees whose annual remuneration was more than
£60,000 is as follows:
2023 2022
Number Number
60,001 - 70,000 - 1
70,001 - 80,000 1 -

Contributions totalling £5,202 (2022: £5,028) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000.

12 Other

Financing costs
Tangible fixed assets
The Welcome
Centre
£
Cost
At 1 April 2022
6,617,371
At 31 March 2023
6,617,371
Depreciation and impairment
At 1 April 2022
251,221
Depreciation charged in the year
100,104
At 31 March 2023
351,325
Carrying amount
At 31 March 2023
6,266,046
At 31 March 2022
6,366,150		 Plant and
machinery
£
42,132
42,132
12,671
8,426
21,097
21,035
29,461		 Restricted
funds
2023
83,908
83,908
Fixtures,
fittings &
equipment
£
13,107
13,107
10,607
1,858
12,465
642
2,501		 Restricted
funds
2022
49,887
49,887
Total
£
6,672,610
6,672,610
274,499
110,388
384,887
6,287,723
6,398,112

13 Tangible fixed assets

WELCOME CHURCH

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

14
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
15
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2023
£
2
361,011
-
361,013
2023
£
1,756,578
63,537
1,693,041
1,394,639		 2022
£
2
168,140
3,925
172,067
2022
£
1,825,939
82,695
1,743,244
1,318,306

The long-term loans are secured by first fixed charges over the land and buildings, The Welcome Centre, Church Street West, Woking, Surrey, GU21 6JD.

The charity has a long term loan of £2,000,000 from CAF Bank Ltd for the purpose of building the Auditorium. The term of the loan is 20 years from the date of the first drawdown and interest is charged at 2.5% above Bank of England base rate. The loan is repaid in instalments monthly.

There would be prepayment fees should the loan be repaid early and the charity must maintain a debt service ratio of 1:1.

16 Creditors: amounts falling due within one year

Notes
Bank loans
15
Deferred income
18
Trade creditors
Other creditors
Accruals and deferred income		 2023
£
63,537
-
7,042
610
9,346
80,535		 2022
£
82,695
13,662
15,181
880
73,975
186,393

WELCOME CHURCH

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

17
Creditors: amounts falling due after more than one year
Notes
Bank loans
15
18
Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 April 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2023		 2023
£
1,693,041
2023
£
-
2023
£
-
13,662
(13,662)
-
-		 2022
£
1,743,244
2022
£
13,662
2022
£
13,662
-
-
13,662
13,662

19 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees in accordance with the requirement to provide a workplace pension scheme . The assets of the scheme would be held separately from those of the charity in an independently administered fund. However, all employees currently opt out of the workplace scheme and have chosen instead to have contributions made to other personal schemes of their choice as is permitted under workplace pensions legislation.

The charge to profit or loss in respect of payments to defined contribution schemes was £27,617 (2022: £22,911).

WELCOME CHURCH

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

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Missionary and Wider Gifts
Activities Income
Buildings Fund
Welcome Church Buildings
Welcome Works
Hardship fund		 Balance at
1 April 2021
£
518
-
2,578,669
1,118,506
-
65,121
3,762,814		 Movement in funds
Incoming
resources
Resources
expended
Transfers
£
£
£
63,140
(63,147)
-
5,568
(14,470)
-
10,854
(148,653)
-
-
-
-
3,242
(30,579)
27,337
6,863
(6,479)
-
89,667
(263,328)
27,337		 Balance at
1 April 2022
£
511
(8,902)
2,440,870
1,118,506
-
65,505
3,616,490		 Movement in funds
Incoming
resources
Resources
expended
Transfers
31
£
£
£
90,475
(73,646)
-
8,902
-
-
18,567
(184,086)
-
-
-
-
18,059
(24,162)
16,103
17,476
(3,729)
-
153,479
(285,623)
16,103		 Balance at
March 2023
£
17,340
-
2,275,351
1,118,506
10,000
79,252
3,500,449

Missionary and Wider Gifts

Income received and associated tax credits for missionary and wider gifts were paid out in the year as grants,

Activities Income

This relates to income generated from events/youth activities.

Buildings fund

The fund was established by the Trustees for the following purpose:

To provide for the redevelopment and maintenance of the current properties and site; the purchase, development and maintenance of a new building and site; and any ancillary costs. Preparatory costs of developing the site, including legal costs and the employment of a project manager, have been and are continuing to be paid form this fund.

WELCOME CHURCH

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

21 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
TotalUnrestricted
funds
2023
2023
2023
2022
£
£
£
£
Fund balances at 31
March 2023 are
represented by:
Tangible assets
2,893,866
3,393,857
6,287,723
2,838,736
Current assets/
(liabilities)
580,949
106,592
687,541
463,349
Long term liabilities
(1,693,041)
-
(1,693,041) (1,743,244)
1,781,774
3,500,449
5,282,223
1,558,841		 Restricted
funds
Total
2022
2022
£
£
3,559,376
6,398,112
57,114
520,463
-
(1,743,244)
3,616,490
5,175,331

22 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023 2022
£ £
Aggregate compensation 325,628 305,032

For the purposes of this note, Key Management Personnel has been defined as the Elders. Compensation includes salary plus additional costs of employment such as employer's national insurance and employer's pension contributions.

Mr M Deavin, who is a trustee, is also a trustee of The Really Useful Wood Company which received £nil (2022: £2,500) from the church during the year, and the use free of charge of property to operate from. Mr Deavin has declared his interest and does not vote on decisions regarding grants made to The Really Useful Wood Company.

23 Cash generated from operations

Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in debtors
(Decrease)/increase in creditors
(Decrease)/increase in deferred income
Cash (absorbed by)/generated from operations		 2023
£
106,892
(660)
110,388
(188,946)
(73,038)
(13,662)
(59,026)		 2022
£
161,899
(63)
109,801
(9,022)
77,697
13,662
353,974

WELCOME CHURCH

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

24
Analysis of changes in net (debt)/funds
At 1 April 2022
£
Cash at bank and in hand
534,789
Loans falling due within one year
(82,695)
Loans falling due after more than one year
(1,743,244)
(1,291,150)		 Cash flows At 31 March 2023
£
£
(127,726)
407,063
19,158
(63,537)
50,203
(1,693,041)
(58,365)
(1,349,515)