HEXHAM COM[uNITy CHURCH Accounts- 31st December 2022
HEXHAM COMMUNITY CHURCH
Charitable Incorporated Organisation
Charity number: 1115889
Accounts – 31st December 2022
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 2022
The Trustees are pleased to present their annual report and financial statements of the Charitable Incorporated Organisation for the year ended 31st December 2022 .
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 FRS 102) issued in October 2019 and Financial Reporting Standard FRS 102.
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 Anne Jennifer Morgan David Fraser Hume (resigned 18 August 2022) Jacky Males (appointed 14 November 2022) Jenny Louise Rumsey 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 minimize this. The Church is a Charitable Incorporated Organisation and has charitable status. HCC is an active member of Hexham Churches Together.
Leadership:
HCC is spiritually led, under God’s direction, by a team of Elders who meet with the Trustees regularly. The Church is part of Taking Ground, a group of nine churches based in the Northeast of England.
Pastoral and relational activity - caring for church members:
The impact of the pandemic began to recede over the year, with more of the congregation returning to a regular pattern of attendance at both weekly services and small groups for support and encouragement.
HEXHAM COMMUNITY CHURCH
REPORT OF THE TRUSTEES
for the year ended 31st December 2022 ( Continued)
Achievements and Performance (continued)
Church Programme:
The cycle of Sunday services introduced in 2021 continued, with Betel of Hexham holding a service one Sunday a month, and Messy Church, (church aimed mainly at families), meeting once per month. The remaining Sundays were used for teaching, worship, and encouragement.
Outward focused activity - reaching out to our communities:
HCC volunteers continue to serve the older members of the community with a weekly lunch club, while adults with additional needs are supported with the bi-weekly My Time! event.
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Several Alpha courses (an introduction to the Christian faith) were held over the year, with a number of those who attended coming to faith in Christ and becoming members of HCC
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Eden Hexham – The Eden worker appointed in 2021 continued to work in a needy area of the town and became resident in the locality in May 2022.
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The Community Grocery , also in the East End of Hexham, continued to provide affordable food and reduced waste, and very popular with local residents, and also with people from further afield. As with Eden, this development is linked to the ministry of the Message Trust.
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Texan mission to Hexham – A visit from the young people from Texas was possible after a break due to the pandemic, and a team again worked in local Schools, renewing links with local young people and in the Eden Lounge.
Financial position:
The finances of the Church reflect the faithful commitment of church members, and adequate reserves are held in line with the policy of the Trustees. The Church has also received some grant income from external sources.
Conclusion:
During 2022, 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 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 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 and surrounding areas. 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 £185,953 and total expenditure on charitable activities amounted to £177,012. The balance on unrestricted funds at the year end was £260,903 and on restricted funds £44,836. 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 £128,552. This represents approximately 12 months of expenditure. The trustees policy is that free reserves should be a minimum of £68,400 which is approximately 6 months of expenditure (£11,400 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 ongoing impact on Church life, 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 2022 ( 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 continued the activities of the charity.
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 September 2023 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 2022.
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
14 September 2023
HEXHAM COMMUNITY CHURCH
STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31st December 2022
| Note Income from: Donations and grants 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 2022 £ £ £ 104,472 59,737 164,209 974 5,997 6,971 8,592 5,550 14,142 631 - 631 114,669 71,284 185,953 124,259 52,753 177,012 124,259 52,753 177,012 (9,590) 18,531 8,941 2,231 (2,231) - (7,359) 16,300 8,941 268,262 28,536 296,798 £260,903 £44,836 £305,739 |
Total Funds 2021 £ 139,931 2,139 14,592 25 |
|---|---|---|
| 156,687 | ||
| 139,518 | ||
| 139,518 | ||
| 17,169 - |
||
| 17,169 279,629 |
||
| £296,798 |
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 2022
| 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 |
2022 £ 132,351 132,351 10,697 115,650 67,804 194,151 20,763 173,388 305,739 £305,739 44,836 258,541 2,362 260,903 £305,739 |
2021 £ 135,176 |
|---|---|---|
| 135,176 | ||
| 9,136 105,018 63,207 |
||
| 177,361 15,739 |
||
| 161,622 | ||
| 296,798 | ||
| £296,798 | ||
| 28,536 | ||
| 263,751 4,511 |
||
| 268,262 | ||
| £296,798 |
These accounts were approved by the trustees and authorised for issue on 12th September 2023 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 2022
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) issued in October 2019 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 2022 (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:
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Expenditure on Charitable activities includes the cost of running the church and associated projects .
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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.
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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.
- m) Grants
Income from Government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probably that the income will be received and the amount can be measured reliably and is not deferred.
HEXHAM COMMUNITY CHURCH 9.
NOTES TO THE ACCOUNTS
for the year ended 31st December 2022 (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, legacies and grants Tax reclaim |
2022 £ 142,601 21,608 £164,209 |
2021 £ 117,750 22,181 |
|---|---|---|
| £139,931 |
Of the £164,209 received in 2022 (2021: £139,931) £59,737 was restricted funds (2021: £32,169) and £104,472 (2021: £107,762) 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
| Events Other income |
2022 £ 5,433 1,538 £6,971 |
2021 £ 1,410 729 |
|---|---|---|
| £2,139 |
Of the £6,971 received in 2022 (2021: £2,139) £5,997 was restricted funds (2021: £996) and £974 (2021: £1,143) unrestricted funds.
5. Income earned from other trading activity
| Rental income | 2022 £ 14,142 £14,142 |
2021 £ 14,592 |
|---|---|---|
| £14,592 |
Of the £14,142 received in 2022 (2021: £14,592) £5,550 was restricted funds (2021: £6,000) and £8,592 (2021: £8,592) unrestricted funds.
6. Investment income
All of the Charity investment income arises from money held in Co-operative bank deposit fund and United Trust Bank Bonds.
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2022 (continued)
7. Analysis of expenditure on charitable activities
| Ministry costs Community and out reach External giving Church Family Premises costs Administration costs Accountancy Total |
Church 2022 Total £ £ 46,509 46,509 41,192 41,192 23,613 23,613 4,067 4,067 29,153 29,153 29,598 29,598 2,880 2,880 £177,012 £177,012 |
2021 Total £ 45,213 24,873 16,849 4,298 17,958 27,531 2,796 |
|---|---|---|
| £139,518 |
Of the £177,012 expenditure in 2022 (2021: £139,518), £124,259 was charged to unrestricted funds (2021: £97,461) and £52,753 to restricted funds (2021: £42,057).
8. Analysis of staff costs and trustee remuneration and expenses
| Salaries and wages Social security costs Employer contribution to defined contribution pension scheme |
2022 £ 87,740 1,889 577 £90,206 |
2021 £ 77,058 908 377 |
|---|---|---|
| £78,343 |
No employees had emoluments in excess of £60,000 (2021: Nil). Pension costs are allocated to activities in proportion to the related staffing costs incurred.
No trustees were remunerated during the year (2021: Nil)
In 2021 the wife of one of the trustees was employed by the charity and received payment during the year relating to their administrative work. This trustee resigned on 10th January 2022.
| C Meadley ( part recharged on to another organisation) Salaries and wages Employers National Insurance Employer contribution to defined contribution pension scheme |
2022 £ 524 - 6 £530 |
2021 £ 9,338 122 93 |
|---|---|---|
| £9,553 |
They are remunerated in respect of their capacity 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 £41,710 (2021: £45,873).
One trustee J Rumsey was paid £nil (2021: £39) in the year for cleaning work.
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2022 (continued)
9. Staff numbers
The average monthly number of employees during the year was as follows:
| Ministry Administration Outreach |
2022 Number 1 3 1 5 |
2021 Number 1 3 - |
|---|---|---|
| 4 |
10. Related party transactions
During the year the trustees, their spouses and key management personnel donated £20,835 to the charity in total (2021: £15,529).
Expenses of £205 were reimbursed to the trustee C Minto and expenses of £57 were reimbursed to the trustee J Males, during the year (2021: Nil).
11. Tangible fixed assets
| Cost: As at 01.01.22 Additions As at 31.12.22 Depreciation: As at 01.01.22 Charge for year As at 31.12.22 Net book value: As at 31.12.22 As at 31.12.21 |
Land Buildings Equipment £ £ £ 80,000 95,700 20,400 - - - 80,000 95,700 20,400 - 40,525 20,399 - 2,825 - - 43,350 20,399 £80,000 £52,350 £1 £80,000 £55,175 £1 |
Total £ 196,100 - |
|---|---|---|
| 196,100 | ||
| 60,924 2,825 |
||
| 63,749 | ||
| £132,351 | ||
| £135,176 |
12. Debtors
| Tax reclaims Prepayments and accrued income Other debtors |
2022 £ 5,376 5,051 270 £10,697 |
2021 £ 4,393 4,733 10 |
|---|---|---|
| £9,136 |
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2022 (continued)
13. Current asset investments
| Current asset investments | ||
|---|---|---|
| Cash on deposit | 2022 £ 115,650 £115,650 |
2021 £ 105,018 |
| £105,018 |
14. Creditors: amounts falling due within one year
| Trade creditors Accruals and other creditors Taxation and social security costs |
2022 £ 4,851 14,483 1,429 £20,763 |
2021 £ 2,896 12,107 736 |
|---|---|---|
| £15,739 |
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 £ £ £ £ £ - - 132,351 - 132,351 18,956 2,362 - 46,486 67,804 107,234 - - (1,650) 105,584 |
|---|---|
| £126,190 £2,362 £132,351 £44,836 £305,739 |
16. Analysis of charitable funds
Analysis of movements in restricted funds
| Leadership Eden project Church Family Outreach Total |
Balance Incoming Resources Funds 01.01.2022 resources expended Transfers 31.12.22 £ £ £ £ £ - 4,973 - 3,340 8,313 17,809 54,678 (39,295) - 33,192 8,000 1,238 (4,067) (5,171) - 2,727 10,395 (9,391) (400) 3,331 |
|---|---|
| £28,536 £71,284 £(52,753) £(2,231) £44,836 |
Name of restricted fund
Restricted giving for redistribution Eden project Church Family
Outreach
Description, nature and purposes of the fund
Funds donated for specific causes which are then redistributed. 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.
HEXHAM COMMUNITY CHURCH
NOTES TO THE ACCOUNTS
for the year ended 31st December 2022 (continued)
Analysis of charitable funds (continued)
Analysis of movements in unrestricted funds
| General fund Building fund Designated Funds Agape Outreach Total |
Balance Incoming Resources Funds 01.01.22 resources expended Transfers 31.12.22 £ £ £ £ £ 128,575 114,669 (107,533) (9,521) 126,190 135,176 - (2,825) - 132,351 3,725 - (13,684) 11,752 1,793 786 - (217) - 569 |
|---|---|
| £268,262 £114,669£(124,259) £2,231 £260,903 |
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 - Agape Designated funds for the support of good causes. Designated fund - Outreach Designated funds for the support of Outreach projects.
A transfer has been made to the Agape fund in the year at the Trustees discretion to fund work on good causes.
17. Other financial commitments
The charity signed a lease in September 2020 to rent premises at a cost of £690 per month. As at 31st December 2022 £19,320 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 2022 £950 remains outstanding.
18. Pension commitments
The charity operates a defined contribution scheme the assets of which are held separately from those of the charity in an independently administered fund. At the balance sheet date unpaid contributions of £Nil (2021: £Nil) were due to the fund.