HEXHAM COM[uNITy CHURCH
Accounts- 31st December 2020
## **HEXHAM COMMUNITY CHURCH**
_Charitable Incorporated Organisation_
Charity number: 1115889
Accounts – 31st December 2020
## **INDEX**
- 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
1.
## **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**
2.
## **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:
- **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.
- **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**
3.
## **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:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. 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
5.
## **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**
6.
## **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**
7.
## **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:
- The charity has entitlement to the funds;
- any performance conditions attached to the items of income have been met or are fully within the control of the charity;
- there is sufficient certainty that receipt of the income is considered probable; and
- 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**
8.
## **NOTES TO THE ACCOUNTS**
**for the year ended 31st December 2020** (continued)
- f) **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 includes the cost of running the church and book shop and associated projects _._
- Other expenditure represents those items not falling into any other heading.
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.
- 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 8.
**HEXHAM COMMUNITY CHURCH**
9.
## **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**
10.
## **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)
11.
## **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**
12.
## **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**
13.
## **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.