HEXHAM COM[uNITy CHURCH Accounts- 31st December 2020
HEXHAM COMMUNITY CHURCH
Charitable Incorporated Organisation
Charity number: 1115889
Accounts – 31st December 2020
INDEX
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1-3. Report of the Trustees and General Information 4. Independent Examiner’s Report to the Trustees 5. Statement of Financial Activities 6. Balance Sheet 7-13. Notes to the Accounts
HEXHAM COMMUNITY CHURCH
REPORT OF THE TRUSTEES for the year ended 31st December 2020
The Trustees are pleased to present their annual report and financial statements of the Charitable Incorporated Organisation for the year ended 31st December 2020 .
The Financial Statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and complies with the Charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (second edition) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland.
Reference and Administration Details
The charity’s name is Hexham Community Church.
Charity Registration Number: 1115889
Registered and Principal Office: Central Chambers, Beaumont Street, Hexham, NE46 3LS
Trustees
The Trustees and officers who served during the year and since the year end were as follows:
Catherine Judith Minto Iain Mason Catherine Anne Wraith (resigned 19th February 2020) Anne Jennifer Morgan David Fraser Hume (appointed 18th February 2020) Lewis Meadley (appointed 18th February 2020) Jenny Louise Rumsey (appointed 1st February 2021)
Secretary: Iain Mason
Objectives and Activities
The main objects of the charity are widely drawn, namely to advance the Christian religion and to pursue any other charitable purposes.
The main activity is the provision of a Christian Church and associated activities.
In planning the activities of the charity, 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 charity’s activities of advancement of the Christian faith and associated activities, are available to the people of Hexham and the wider area to make a positive contribution to the local and wider community.
Achievements and Performance
Trustees and charity management:
Hexham Community Church (HCC) has 5 Trustees, taking responsibility for legal, compliance and finance issues, assessing risk and have drawn up policies to minimise this. The work to convert the church from a Company Limited by Guarantee to a Charitable Incorporated Organisation (CIO) was completed in February 2020. HCC maintains links with the voluntary sector and is an active member of Hexham Churches Together.
Leadership:
HCC is part of Salt & Light Ministries (S&L) locally known as Taking Ground. HCC is spiritually led, under God’s direction, by a team of Elders who meet with the Trustees regularly.
HEXHAM COMMUNITY CHURCH
REPORT OF THE TRUSTEES
for the year ended 31st December 2020 ( Continued)
Achievements and Performance (continued)
Pastoral and relational activity - caring for church members:
The Coronavirus pandemic has had a significant impact on the care and support offered to the church family. Meeting virtually, both as small groups and as a congregation has become the norm for most, with other means used to maintain contact for those unable to access this. The building has remained closed since the first lockdown began in March 2020, but ministry has continued each Sunday via the church Facebook page, with significant numbers taking part, including new congregants, near and far. Prayer in small groups and as a congregation has developed as have Family Groups, which offer ways to connect with a small group of people for support and encouragement.
Outward focused activity - reaching out to our communities:
Prior to the lockdown, HCC volunteers ran a lunch club for older people, a social group for adults with learning disabilities, Messy Church and Eden Hexham, connecting with residents in the East End of Hexham. Contact has been maintained by various means, including phone calls and post, and the HCC Facebook page. Outreach activities have included:
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Eden Hexham - although it was not possible to appoint an Eden worker in early 2020, a Community Worker was employed to distribute groceries provided by local retailers. Volunteers worked with the worker to enable this to happen. This was to provide the basis for plans for a Community Grocery, due to open in March 2021, also in the East End of Hexham.
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Texan mission to Hexham – A group of Texan students again visited HCC, being welcome visitors to local schools.
Financial position
Despite the challenges posed by the pandemic over 2020, the financial position of the church has remained stable, with resources being built up because of the faithful commitment of church members, and some grant income.
Conclusion:
During 2020, HCC continued to achieve its charitable objective of advancing the Christian faith through Sunday services, week-night group activities and missional work which have all focused on enabling faith in Jesus Christ in the communities where our members live, are educated and work.
The Trustees would like to thank all the Church congregation who have given so freely of their time, talents and money to make possible the activities reported above and more that space does not allow us to mention. Without all these contributions Hexham Community Church would be unable to offer so much to the people of Hexham, the surrounding areas and beyond. The Trustees can confirm that the activities provided are available to and provided for the benefit of everyone, of any or no faith. The Trustees believe the Hexham Community Church charity is continuing to thrive and to fulfil all its charitable objectives.
Financial Review
The total income for the year was £191,685 and total expenditure on charitable activities amounted to £122,958. The balance on unrestricted funds at the year end was £248,294 and on restricted funds £31,335. The main source of income for the year was donations.
Reserves Policy
The balance on unrestricted reserves at the balance sheet date, excluding fixed assets, was £110,293. This represents approximately 12 months of expenditure. The trustees’ policy is that free reserves should be a minimum of £51,000 which is approximately 6 months of expenditure (£8,500 per month). The level of reserves at the balance sheet date is higher than the minimum and is considered reasonable in view of working capital requirements and the major risks to the Charity. These risks include possible losses in funding and the continuing possibility of significant property and repair costs.
Also due to the Covid pandemic spending during the year has been significantly curtailed resulting in higher reserves held. Expenditure is expected to increase next year.
HEXHAM COMMUNITY CHURCH
REPORT OF THE TRUSTEES
for the year ended 31st December 2020 ( Continued)
Structure, Governance and Management
Governing Document
Hexham Community Church is registered as a charity with the Charity Commission. It is a Charitable Incorporated Organisation formed 13th February 2020.
Hexham Community Church was formerly a Company Limited by Guarantee governed by its Memorandum and Articles of Association dated 23rd April 2006. On 13th February 2020 the assets and liabilities of Hexham Community Church were transferred to Hexham Community Church Charitable Incorporated Organisation which will continue the activities of the charity.
In view of the transfer of operations of its predecessor company limited by guarantee these financial statements incorporate the income, expenditure and liabilities of both Hexham Community Church and Hexham Community Church CIO.
Appointment of Trustees
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 charity in order to make them aware of current activities.
There must be at least three Trustees.
Persons willing to be appointed as Trustees must subscribe to the Statement of Beliefs and be at least 16 years of age.
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.
Approved by the trustees on 12th July 2021 and signed on its behalf by:
A J Morgan ………………………………….. Trustee
Hexham
HEXHAM COMMUNITY CHURCH
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES
I report to the trustees on my examination of the accounts of Hexham Community Church for the year ended 31st December 2020.
Responsibilities and Basis of Report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent Examiner’s Statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
A P Williams BSc FCCA A J Carter & Co Chartered Accountants
22b High Street Witney Oxon OX28 6RB 23rd July 2021
HEXHAM COMMUNITY CHURCH
STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31st December 2020
| Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investments 6 Total incoming resources Expenditure on: Charitable activities 7 Total expenditure Net income/(expenditure) and net movement in funds for the year Transfer between funds Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward |
Unrestricted Restricted Total Funds Funds Funds 2020 £ £ £ 147,796 32,022 179,818 3,572 - 3,572 2,148 6,000 8,148 147 - 147 153,663 38,022 191,685 104,065 18,893 122,958 104,065 18,893 122,958 49,598 19,129 68,727 14 (14) - 49,612 19,115 68,727 198,682 12,220 210,902 £248,294 £31,335 £279,629 |
Total Funds 2019 £ 158,683 7,196 7,536 216 |
|---|---|---|
| 173,631 | ||
| 182,907 | ||
| 182,907 | ||
| (9,276) - |
||
| (9,276) 220,178 |
||
| £210,902 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
The notes on pages 7 to 13 form part of these financial statements
HEXHAM COMMUNITY CHURCH
BALANCE SHEET as at 31st December 2020
| Note Fixed assets Tangible assets 11 Total fixed assets Current assets Debtors 12 Investments 13 Cash at bank and in hand Total current assets Liabilities Creditors falling due within one year 14 Net current assets Total assets less current liabilities Total net assets 15 The funds of the Charity Restricted income funds 16 Unrestricted income funds 16 Designated income funds 16 Total unrestricted funds Total charity funds |
2020 £ 138,001 138,001 14,193 106,780 35,731 156,704 15,076 141,628 279,629 £279,629 31,335 247,508 786 248,294 £279,629 |
2019 £ 142,551 |
|---|---|---|
| 142,551 | ||
| 12,266 49,973 22,409 |
||
| 84,648 16,297 |
||
| 68,351 | ||
| 210,902 | ||
| £210,902 | ||
| 12,220 | ||
| 198,074 608 |
||
| 198,682 | ||
| £210,902 |
These accounts were approved by the trustees and authorised for issue on 12th July 2021 and are signed on their behalf by:
I Mason ...................................................... Trustee
The notes on pages 7 to 13 form part of these financial statements
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2020
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 Statement of Recommended Practice: Accounting and Reporting by Charities (second addition) preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The charity constitutes a public benefit entity as defined by FRS 102.
The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.
b) Income Recognition Policies
Items of income are recognised and included in the accounts when all of the following criteria are met:
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The charity has entitlement to the funds;
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any performance conditions attached to the items of income have been met or are fully within the control of the charity;
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there is sufficient certainty that receipt of the income is considered probable; and
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the amount can be measured reliably.
Income received in advance of a specific performance or provision of other specified service is deferred until the criteria for income recognition are met.
c) Donated Services and Facilities
In accordance with the Charities SORP (FRS102) the general time of volunteers is not recognised in the accounts.
- d) 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.
e) 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.
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2020 (continued)
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f) Expenditure and Irrecoverable VAT
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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:
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Expenditure on Charitable activities includes the cost of running the church and book shop and associated projects .
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Other expenditure represents those items not falling into any other heading.
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Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
- g) Operating Leases
The Charity classifies the lease of the photocopier 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.
- 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 the straight line basis as follows:
Asset Annual Category Rate No depreciation Freehold buildings Over 40 years Freehold equipment Over 10 years Other equipment Over 3 years
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.
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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.
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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 8.
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2020 (continued)
2. Legal Status of the Charity
The charity is a registered Charitable Incorporated Organisation formed 13th February 2020. It took over the charitable activities of Hexham Community Church a Company Limited by Guarantee on this date.
3. Income from donations
| Gifts, donations and grants Tax reclaim |
2020 £ 153,340 26,478 £179,818 |
2019 £ 136,869 21,814 |
|---|---|---|
| £158,683 |
Of the £179,818 received in 2020 (2019: £158,683) £32,022 was restricted funds (2019: £44,664) and £147,796 (2019: £114,019) unrestricted funds.
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 from charitable activities
| Bookshop income Events Other income |
2020 £ - 2,070 1,502 £3,572 |
2019 £ 597 5,422 1,177 |
|---|---|---|
| £7,196 |
Of the £3,572 received in 2020 (2019: £7,196) £Nil was restricted funds (2019: £335) and £3,572 (2019: £6,861) unrestricted funds.
5. Income earned from other trading activity
| Rental income | 2020 £ 8,148 £8,148 |
2019 £ 7,536 |
|---|---|---|
| £7,536 |
Of the £8,148 received in 2020 (2019: £7,536) £6,000 was restricted funds (2019: £7,536) and £2,148 (2019: £Nil) unrestricted funds.
6. Investment income
All of the Charity investment income arises from money held in COIF Charities deposit fund.
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2020 (continued)
7. Analysis of expenditure on charitable activities
| Bookshop purchases and salaries Ministry costs Community and out reach External giving Church Family Premises costs Administration costs Profit on disposal of fixed assets Accountancy Total |
Church 2020 Total £ £ - - 33,582 33,582 15,366 15,366 19,598 19,598 4,345 4,345 18,686 18,686 28,273 28,273 - - 3,108 3,108 £122,958 £122,958 |
2019 Total £ 138 47,041 41,077 20,144 18,604 23,430 30,929 (1,300) 2,844 |
|---|---|---|
| £182,907 |
Of the £122,958 expenditure in 2020 (2019: £182,907), £104,065 was charged to unrestricted funds (2019: £131,417) and £18,893 to restricted funds (2019: £51,490).
8. Analysis of staff costs and trustee remuneration
| Salaries and wages Employers National Insurance Employer contribution to defined contribution pension scheme |
2020 £ 55,674 717 149 £56,540 |
2019 £ 70,992 980 166 |
|---|---|---|
| £72,138 |
No employees had emoluments in excess of £60,000 (2019: Nil). Pension costs are allocated to activities in proportion to the related staffing costs incurred.
No trustees were remunerated during the year (2019: Nil)
The wife of one of the trustees was employed by the charity and received payment during the year relating to their administrative work.
| C Meadley ( part recharged on to another organisation) Salaries and wages Social security costs Employer contribution to defined contribution pension scheme |
2020 £ 8,936 37 81 |
|---|---|
| £9,054 |
They are remunerated in respect of their capacities as stated above.
The Trust considers its key management personnel comprise the trustees and the leaders. The total employment benefits of the key management personnel in the year was £32,874 (2019: £42,265)
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2020 (continued)
9. Staff numbers
The average monthly number of employees during the year was as follows:
| Ministry Outreach Premises Administration |
2020 Number 1 - - 3 4 |
2019 Number 2 1 1 3 |
|---|---|---|
| 7 |
10. Related party transactions
During the year the trustees, their spouses and key management personnel donated £18,376 to the charity in total (2019: £14,046).
There were no expenses reimbursed to the trustees during the year (2019: Nil).
11. Tangible fixed assets
| Cost: As at 01.01.20 Additions As at 31.12.20 Depreciation: As at 01.01.20 Charge for year As at 31.12.20 Net book value: As at 31.12.20 As at 31.12.19 12.Debtors Tax reclaims Prepayments and accrued income Other debtors |
Land Buildings £ £ 80,000 95,700 - - |
Equipment £ 20,400 - 20,400 18,674 1,725 20,399 £1 £1,726 2020 £ 7,812 4,750 1,631 £14,193 |
Total £ 196,100 - |
|---|---|---|---|
| 80,000 95,700 |
196,100 | ||
| - 34,875 2,825 |
53,549 4,550 |
||
| - 37,700 |
58,099 | ||
| £80,000 £58,000 |
£138,001 | ||
| £80,000 £60,825 |
£142,551 | ||
| 2019 £ 5,148 4,015 3,103 |
|||
| £12,266 |
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2020 (continued)
13. Current asset investments
| Current asset investments | ||
|---|---|---|
| Cash on deposit | 2020 £ 106,780 £106,780 |
2019 £ 49,973 |
| £49,973 |
14. Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| Trade creditors Accruals and other creditors Taxation and social security costs |
2020 £ 2,997 11,226 853 £15,076 |
2019 £ 3,559 11,751 987 |
| £16,297 |
15. Analysis of net assets between funds
Unrestricted funds
| Tangible fixed assets Cash at bank and in hand Other net current assets/(liabilities) Total |
General Designated Building Restricted Fund Fund Fund Funds Total £ £ £ £ £ - - 138,001 - 138,001 2,322 786 - 32,623 35,731 107,185 - - (1,288) 105,897 |
|---|---|
| £109,507 £786£138,001 £31,335 £279,629 |
16. Analysis of charitable funds
Analysis of movements in restricted funds
| Restricted giving Individual Daniel Challenge support Eden project Church Family Outreach Total Name of restricted fund Restricted giving for redistribution Individual Daniel Challenge support Eden project Church Family Outreach |
Balance Incoming Resources Funds 01.01.2020 resources expended Transfers 31.12.20 £ £ £ £ £ 87 1,162 (1,162) - 87 130 497 (613) (14) - 9,649 23,661 (15,096) - 18,214 707 10,000 - - 10,707 1,647 2,702 (2,022) - 2,327 £12,220 £38,022 £(18,893) £(14) £31,335 Description, nature and purposes of the fund Funds donated for specific causes which are then redistributed. Funds for support of an individual re the Daniel Challenge. Funds for support of a local community project. Funds for support of church family activities like children's work, Sunday school etc. Funds for support of outreach, including one off activities and regular events like MyTime etc. |
|---|---|
As there is no Daniel Challenge income for the coming year the balance on the fund at the year end has been transferred to General funds.
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2020 (continued)
16. Analysis of charitable funds - continued
Analysis of movements in unrestricted funds
| General fund Building fund Designated Funds Outreach Total |
Balance Incoming Resources Funds 01.01.20 resources expended Transfers 31.12.20 £ £ £ £ £ 55,523 152,880 (98,910) 14 109,507 142,551 - (4,550) - 138,001 - 608 783 (605) - 786 |
|---|---|
| £198,682 £153,663£(104,065) £14 £248,294 |
Name of unrestricted fund
Description, nature and purposes of the fund
General fund The 'free reserves' after allowing for all designated funds. Building fund Funds representing the depreciated cost of the fixed assets. Designated fund - Outreach Designated funds for the support of Outreach projects.
17. Other financial commitments
The charity signed a 2 year lease in September 2020 to rent premises at a cost of £690 per month. As at 31st December 2020 £13,800 remains outstanding.
The charity signed a 5 year lease in July 2019 for the rental of a photocopier at a cost of £158 per quarter. At 31st December 2020 £2,218 remains outstanding.