Registered Charity no. 1118251 Registered Company no. 5998496
Kings People's Church (Company Limited by Guarantee)
Trustees Annual Report and Accounts
Year Ended 31st December 2020
Kings People's Church
Year Ended 31st December 2020
Contents Page
| Page | |
|---|---|
| Legal and Administrative Information | 1 |
| Trustees' Annual Report | 2 |
| Independent Examiners Report | 9 |
| Statement of Financial Activities | 10 |
| Statement of Financial Position | 11 |
| Cash Flow Statement | 12 |
| Notes to the Financial Statements | 13 |
Kings People's Church
Year Ended 31st December 2020
Legal and Administrative Information
Reference
The Charity is called “Kings People's Church". The charity is often also referred to as Kings Church. The organisation is registered with the Charity Commission for England and Wales and Companies House, registered on the 14th November 2006.
Registered Charity Number 1118251 Registered Company Number 5998496 Registered Office The Mill Bury Road Bolton BL2 6QE Website www.kingschurchlife.com The Trustees and Directors Antony Bladen Andrew Dougherty Chrstopher Jones Ian Scholes Derek Smith Robert Islip Resigned 16/06/2020 Senior Pastors Derek & Georgina Smith Company secretary Penny Clarke Primary Bankers Barclays Bank UK PLC 1 Churchill Place London E14 5HP Independent Examiner: Nigel Wyatt BSC FCA Wyatt & Co Chartered Accountants 125 Main Street Garforth Leeds LS25 1AF Solicitors: Aughton Ainsworth 2 Merchants Quay Salford M50 3XR
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Kings People's Church
Year Ended 31st December 2020
Trustees’ Annual Report
Structure, Governance and Management
Kings People’s Church (also known as Kings Church) is incorporated as a charitable company limited by guarantee and governed by its Memorandum & Articles of Association.
Governance of the organisation currently resides with the trustees who are responsible for:
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Ensuring clarity of vision, ethos and strategic direction
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Holding leaders (including the Core Team to whom leadership of the church and management of the activities is delegated) to account for performance of the organisation and the effective and efficient performance management of the staff team
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Overseeing the financial performance of the organisation and making sure money is spent well and in accordance with the vision & values of the organisation
Discussions are currently in progress around decision-making, levels of accountability, a trustees’ charter, trustee induction & ongoing training and specific focused roles as trustees. Several of our trustees have attended voluntary update training from which our knowledge gaps have been identified and this has given rise to good discussion and updates needed. We acknowledge that as the organisation grows, there is a greater need for attention to matters of governance, together with ongoing review of the fitness for purpose of the structure and a review of policies and procedures for the recruitment, appointment, induction and training of trustees.
The trustees make decisions about strategic matters e.g. buildings, finance, staff appointments, setting pay and remuneration of the charity’s key personnel. There is currently no formal benchmarking or criteria used in respect of key management personnel and the setting of their pay. It is acknowledged that some form of criteria should be set. We are affiliated to UCAN (UK Church Administrators Network) and plan to utilise their recent benchmarking data when we review pay during 2022.
The Core Team has spiritual oversight of the organisation and makes strategic decisions about church activities and direction.
Kings Church is affiliated to the Assemblies of God to whom we look for good practice in both spiritual and operating activities.
Related parties
The church has great working relationships with other churches and community outreach groups both in the area surrounding individual locations but also nationally. There is regular cooperation in pursuit of our and their charitable objectives. None of these are deemed to be related parties.
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Kings People's Church
Year Ended 31st December 2020
Trustees’ Annual Report
As noted in the accounts, there have been and will continue to be some employees who are related to members of the trustee board. We have recently reviewed our related party policy, note conflicts of interest at the beginning of meetings and understand the requirement to make adequate disclosure in the accounts for any transactions with them
Public Benefit Disclosure
All of the activities of the charity are deemed to be in the interest of the public benefit. Our governing document requires that our activities include the provision of facilities expressly for the benefit of people in the communities in which we locate. All our community engagement activities have this as the primary objective. We are working closely with The Message Trust not only on our first Community Grocery based at The Mill, Bolton, but also looking at three further locations to meet the practical needs of the community in other localities. We are hopeful that these will open in 2022.
Other examples of our commitment to meeting our public interest objectives include the ministries of Love Does, Secret Angels, Clothes Bank, Who Let the Dads Out, Community Christmas Drive- Through Santa’s grotto, Mini-Giants (parent & toddler midweek group), family fun days throughout the year, Cooking at Kings, summer holiday kids’ club (open to all the community and many more).
Objectives and activities
The objects of the church are to:
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Advance the Christain Faith in accordance with the Statement of Beliefs, in Bolton and in such other parts of the United Kingdom or the world as the trustees may from time to time think fit
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To provide and assist in the provision of facilities for the benefit of the community of Bolton and the surrounding neighbourhood, which facilities may without limitation include the provision of childcare services and meetings, lectures, classes and other forms of education, training in life skills, recreation and leisure-time occupation without distinction of race, sex, political, religious or other opinion and with the objective of improving the conditions of life for the said inhabitants as the trustees may from time to time think fit
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Through our Sunday services and midweek programme, training events and other activities, our aim is to bring adults, young people and children into a greater spiritual, intellectual and moral awareness and to advance the practical application of Christianity
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We seek both to mobilize the people of God and express the love of God to those within and outside our congregation through all of our church activities
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We expect to see people’s lives changed for the better as they experience God’s help in their daily lives and the companionship and practical help of others in our supportive groups and gatherings
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Kings People's Church
Year Ended 31st December 2020
Trustees’ Annual Report
- We expect people to be better equipped in life skills through our training and education. We also expect beneficial changes in the lives of those both within and outside our congregation who receive practical help or gifts of food and clothing and of those who receive help from gifts made to overseas aid and famine relief
All other charitable activities are undertaken by the church to further the attainment of the above objectives.
Volunteers
Kings People’s Church could not function without its volunteer army. Indeed, at the outset of the first lockdown, when local councils were delivering food parcels to vulnerable or high-risk housebound residents, the deputy chief executive of one of the local councils called on our volunteers to be available to assist at short notice.
Most of the midweek activities are led by volunteers, all of whom are vetted, inducted and highly appreciated. On a normal Sunday, more than 130 volunteers across all campuses are involved in service delivery. All charity and local community outreach is undertaken by volunteers and coordinated by paid staff members.
Events occur throughout the year to honour the volunteers without whom most church events would not be able to happen.
Social Investment
As the activities of the organisation continue to expand, there is greater need to consider the appropriateness of social investment. Currently debt financing is obtained via Kingdom Bank who support church and charity investments, secured against property.
We are currently exploring other grant and fund providers to help finance future and potential social investment projects.
Achievements & performance
During 2020, the landscape of church life was totally transformed by the pandemic.
Overnight, our room hire income dried up and our on-the-day offerings practically ceased as church gatherings were no longer permitted. We transitioned many of our donors to online giving. Additionally, significant resources have gone into developing an online presence for church services. This has continued even as in-person service resumed, so has enabled increased accessibility to our services to reach those in our congregation who were housebound, didn’t feel able to return or not well enough to attend, even once church reopened.
The operations team meticulously followed all restrictions and facilitated the reopening of church buildings, once permitted. Such care was taken to protect attendees that there was not a single notifiable instance of reported COVID during the whole pandemic.
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Kings People's Church
Year Ended 31st December 2020
Trustees’ Annual Report
Our biggest achievement was getting through the year with sustained donations and consistent engagement from the congregation who adapted to the changing delivery mechanisms of church services throughout the period.
External funding was sourced to begin the initial provision of CAP money management and to courses, set up a Community Grocery in partnership with The Message Trust. Other grants have facilitated the expansion of facilities, staff, infrastructure and capacity. Building development has been possible at both the Bolton/Persian and Salford campus locations.
Fundraising
Fund-raising is part of our DNA. The majority of funds have traditionally come as voluntary donations (tithes & offerings). As our community engagement is part of our core activities, we rely on voluntary donations to meet the majority of our expenditure. Whilst we have worked with a partner organisation to assist with review and submission of grant applications, there has been no professional fundraising in respect of ordinary activities.
Financial Review
2020 was an unprecedented year, one which tested the charity to its limits. As the country went into lockdown, significant sources of income disappeared e.g. room hires and offerings (our main source of income). Overnight, our income reduced by £20k per month. With some astute donor management and communication, many of our cash givers transitioned to online giving. We are pleased to note that voluntary donations have held constant throughout the period. Our business plan was based on significant commercial growth as we moved to the new building; the lack of income has proved challenging but not insurmountable.
The loss of room hires, however, might have been catastrophic but for government initiatives such as the CJRS which enabled us to retain all staff throughout 2020 and beyond. We took no bounce-back loans and only one payment holiday in respect of lease repayments. We were also able to provide our tenants with some respite in terms of negotiated payment deferrals - all of which have since been repaid.
Good stewardship and astute business management have been key throughout this period. During 2020, some of the staff team were able to concentrate on grant-based fund-raising activities which enabled us to continue with building development. We were able to bring in some significant new personnel with experience in community engagement, volunteer management and fund-raising. This has proven a vital strategic move for the ongoing preservation and development of the organisation. New operational staff have been creative with opportunities and added strength to the team, bringing external commercial experience to bolster our service provision,
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Kings People's Church
Year Ended 31st December 2020
Trustees’ Annual Report
COVID-19 has undoubtedly had an adverse effect on the financial performance of the organisation throughout this period. We have maintained our activities and our bounce-back strategy and re-engagement together with reopening church buildings has been successful.
Whilst we can identify the shortfall which has been met by non-recurring sources of funds during this period, it is our goal to replace these by cash-generating commercial activities such as a coffee shop, leasing out of the top floor of the Mill, disposal of the Wigan campus building to enable us to relocate to a more efficient purpose-built facility. The directors believe that as new business emerges over 2021 and beyond, not only will our premises continue to meet the needs of our community, but will bring together business and community in partnership such that the local church is known as a beacon of hope within the locality.
The financial out-turn of the organisation shows an excess of income over expenditure for the period, resulting in an increase of the charity’s funds since the previous year which is remarkable.
The organisation has owned assets, fixed assets and contingent assets (by way of the Salford building). Once the transfer of the charity is complete, the assets of the organisation will exceed £1.5m.
Reserves Policy
Most of the charity’s funds are spent within a short time period with a prudent amount being kept in a current account to maintain cash flow.
We have previously stated our aim to build sufficient free reserves to cover three month’s average overheads to allow the charity to react to changes in funding in a constructive manner.
At the reporting date, the total funds of the charity were £706,902, with £87,179 restricted funds, £16,282 designated funds, £350,000 held in a revaluation reserve and £253,411 unrestricted.
During the pandemic, there was need to utilise the majority of our cash reserves to sustain ongoing activities. As at the date of signing, we are currently in a relatively healthy cash position due to a recent vision offering. These funds are designated towards outreach activities, and we are building back up our general reserves to meet the covenanted required reserves figure within the next couple of years.
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Kings People's Church
Year Ended 31st December 2020
Trustees’ Annual Report
Key risks and uncertainties disclosures
The trustees acknowledge that at the point of signing the accounts, there are material uncertainties regarding the charity’s ability to continue operating as a going concern.
The material uncertainties facing the charity include:
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Unknown timing of the sale of the Wigan building which will result in a significant cash inflow
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Unknown timing of when conferencing facilities and building premises rentals will operate at full capacity due to the ongoing effects of COVID-19.
Following the purchase of the Blackpool building and its subsequent mortgage, a bank covenant is in place which has a six-month grace period from the point of the purchase. Uncertainty remains whether the bank covenant will be breached should the Wigan disposal not proceed.
The risks of the long-term impact of COVID on church attendance and consequent giving might affect future offerings, although we see minimal evidence of this to date.
Plans for future periods
The trustees have identified the need to create a 3-year strategic plan for ministry, finance and governance which sets us up to support our people and the wider community in each of our locations and beyond.
There are other ongoing building acquisitions/disposals as follows:
The acquisition of the Springfield Methodist building has completed in December 2021. This is a new home for our Blackpool campus who have had no permanent home for several years. Much work is required to bring this to Kings standard, but the team are keen and already working on it.
We are in ongoing conversation in respect of the sale of the building at Wigan. It has been one of our stated aims to relocate this campus to a better location which is more fit-forpurpose. We envisage completion of the sale in early to mid 2022.
The final transfer of the assets of Pendlebury Evangelical Church is scheduled for 1 January 2022 at which point, KPC will take legal responsibility for the building to be used for the furtherance of the gospel in the local area. We have obtained funding for a community Grocery, the work on which is scheduled to start early 2022, subsequent to the final transition of the building.
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Kings People's Church
Year Ended 31st December 2020
Trustees’ Annual Report
Other Community Groceries are planned for Gateshead and Blackpool campuses. We have identified the need and are happy to promote these community outreach activities as part of the life of the church. Funding is required for both of these, so they might take a little longer before commencement.
Our Persian campus continues with outreach to Farsi-speaking communities, both in Bolton and beyond. They have developed an International Ministry which is gaining strength and bringing together believers in other European countries.
Summer 2021 saw the inaugural Community summer Holiday club outreach funded by Bolton Council. We have already been asked to replicate this for our local community in other holiday periods. We hope we can reach as many children or more and provide for their families in the summer holidays, both in respect of childcare, activity and nutritional needs.
In 2022, we plan to finish the development of the Mill Coffee shop - this is part of our strategy to make facilities available to the local community and beyond. We plan a meeting space, learning space, connection space and family space.
Approved by the Trustees
Ian Scholes Name of Trustee: _____ Signed on behalf of the Trustees: _____ 20/12/2021 Date of approval: ________
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Kings People's Church
Year Ended 31st December 2020
Independent Examiners Report
I report to the trustees on my examination of the financial statements of Kings People's Church ('the charity') for the year ended 31st December 2020.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements 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 confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.
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 financial statements do not accord with those records; or
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the financial statements 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.
Emphasis of matter
I would like to draw the reader of accounts attention to the fact that there are material uncertainties regarding the Charity's ability to continue operating as a going concern at the point of the accounts being signed. The details of these uncertainties have been outlined in the notes accompanying the financial statements and the trustees report.
Nigel Wyatt BSC FCA Date: 20/12/2021 Independent Examiner 125 Main Street Garforth Leeds LS25 1AF
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Kings People's Church
Year Ended 31st December 2020
Statement of Financial Activities
| Statement of Financial Activities | |||||
|---|---|---|---|---|---|
| 2020 | 2019 | ||||
| Unrestricted | Restricted | Total | |||
| Funds | Funds | Funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income | |||||
| Donations and legacies | 758,656 | 67,870 | 826,526 | 818,263 | |
| Charitable activities | 2 | 8,667 | - | 8,667 | 17,882 |
| Trading Activities | 115,526 | - | 115,526 | 64,228 | |
| Other | - | - | - | - | |
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| Total Income | 882,850 | 67,870 | 950,720 | 900,373 | |
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| Expenditure | |||||
| Expenditure on charitable activities | 3 | 891,772 | 20,205 | 911,977 | 869,808 |
| Governance costs | 4 | 2,982 | - | 2,982 | 4,352 |
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| Total Expenditure | 894,754 | 20,205 | 914,959 | 874,160 | |
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| Net income / (expenditure) | (11,904) | 47,665 | 35,761 | 26,213 | |
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| Net income and net movement in funds | |||||
| Total funds brought forward | 14 | 631,627 | 39,514 | 671,141 | 644,928 |
| Transfers | 14 | - | - | - | - |
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| Total funds carried forward | 14 | 619,723 | 87,179 | 706,902 | 671,141 |
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All income and expenditure derive from continuing activities.
The statement is a combined Statement of Financial Activities and Income and Expenditure Account for the purposes of meeting both companies act and charity SORP reporting requirements.
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Kings People's Church
Year Ended 31st December 2020
Statement of Financial Position
| Statement of Financial Position | |||
|---|---|---|---|
| Restated | |||
| 2020 | 2019 | ||
| Note | £ | £ | |
| Fixed Asets | |||
| Tangible Assets | 9 | 927,514 | 912,676 |
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| 927,514 | 912,676 | ||
| Current assets | |||
| Debtors | 10 | 107,572 | 158,467 |
| Cash at bank and in hand | 61,455 | 43,499 | |
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| 169,027 | 201,966 | ||
| Creditors: amounts falling due within one year | 11 | 74,565 | 63,315 |
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| Net current assets | 94,462 | 138,651 | |
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| Creditors: amounts falling after one year | 315,074 | 380,186 | |
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| Net assets | 15 | 706,902 | 671,141 |
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| Funds of the charity | |||
| Restricted funds | 14 | 87,179 | 39,514 |
| Unrestricted funds | |||
| Unrestricted General | 14 | 253,441 | 271,010 |
| Revaluation Reserve | 350,000 | 350,000 | |
| Designated funds | 16,282 | 10,617 | |
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| 619,723 | 631,627 | ||
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| Total charity funds | 706,902 | 671,141 | |
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Directors Responsibilities
The Directors are satisfied that for the year ended on 31st December 2020 the charitable company was entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 and that no member or members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Act. However, in accordance with section 145 of the Charities Act 2011, the accounts have been examined by an Independent Examiner.
The Directors acknowledge their responsibility for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. These Financial Statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and with FRS 102 (effective January 2019).
Name of Trustee:
Ian Scholes
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Signed on behalf of the Trustees:
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Date of approval:
20/12/2021
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Kings People's Church
Year Ended 31st December 2020
Statement of cash flows
| Statement of cash flows | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Cash flows from operating activities: | ||
| Net cash provided by (used in) operating activities | 206,428 | (25,168) |
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| 206,428 | (25,168) | |
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| Cash flows from investing activities: | ||
| Dividends and interest | - | |
| Purchase of tangible fixed assets | (127,229) | (606,615) |
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| Net cash provided by (used in) investing activities | (127,229) | (606,615) |
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| Cash flows from financing activities: | ||
| Repayments on borrowing | (61,242) | 244,534 |
| Cash inflows from new borrowing | - | - |
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| Net cash provided by (used in) financing activities | (61,242) | 244,534 |
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| Change in cash and cash equivalents in the reporting period | 17,956 | (387,249) |
| Cash and cash equivalents at the beginning of the reporting period | 43,499 | 430,748 |
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| Cash and cash equivalents at the end of the reporting period | 61,455 | 43,499 |
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| Reconciliation of net movement in funds to net cash flowfrom operating activities | ||
| 2020 | 2019 | |
| £ | £ | |
| Net movement in funds for the reporting period (as per the statement of financial activities) |
35,761 | 26,213 |
| Adjustments for: | ||
| Depreciation charges | 112,392 | 90,238 |
| Dividends and interest from investments | - | - |
| (Increase) / decrease in debtors | 50,895 | (122,322) |
| Increase / (decrease) in creditors | 7,380 | (19,297) |
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| Net cash provided by (used in) operating activities | 206,428 | (25,168) |
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|
| Analysis of cash and cash equivalents | ||
| 2020 | 2019 | |
| £ | £ | |
| Cash in hand | 61,455 | 43,499 |
| Notice deposits (less than 30 days) | - | - |
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| Total cash and cash equivalents | 61,455 | 43,499 |
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Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
1 Accounting Policies
Legal Status
The Charity is a company limited by guarantee and has no share capital. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per trustee.
Basis of Preparation
The financial statements have been prepared in accordance with the Charities Statement of Recommended Practice (FRS 102), FRS 102, and the Companies Act 2006. After due consideration of available information about the future, the accounts have been prepared on a going concern basis.
The financial statements are prepared in sterling, which is the functional currency of the company.
Monetary amounts in these financial statements are rounded to the nearest £. The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are recognised at historical cost.
Fund Accounting
Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have set aside resources for a specific purpose.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or the term of specific appeal, often know as a ‘special offering’ in the church.
Further explanation of the nature and purpose of each fund is included in the notes to the accounts.
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Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
Incoming Resources
All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability.
• All voluntary income from members of the church are recognised as donations and are included in full, with associated Gift Aid receivable in the Statement of Financial Activities.
• Grants where entitlement is not conditional on the delivery of specific performance by the charity are recognised when the charity becomes unconditionally entitled to the grant.
• Income resources from charitable trading activities such as the letting of the building are accounted for when invoices are drawn up (as the point of entitlement).
• Donated services and facilities are included at the value to the charity where this can be quantified.
- Gifts in Kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised.
• Volunteer time, the value of voluntary support for the work of the church is not included in the accounts but is described in the Trustees annual report.
- Investment Income is included in the accounts when receivable.
Resources expended
Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.
Governance Costs
Include costs of the preparation and examination of statutory accounts, the costs of the trustees' meetings and cost of any legal advice to trustees on governance or constitutional matters.
Liability Recognition
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
Pensions
The charity operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.
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Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
Tangible Fixed Assets
Tangible fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of the revolution less any subsequent accumulated depreciation and subsequent accumulated impairment losses. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other recognised gains and losses.
Tangible fixed assets costing more than £750 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows:
Land and Buildings 2% Straight line Fixtures and Fittings 25% Straight line Equipment 25% Straight line Leasehold Improvements Depreciated over the life of the leasehold
Operating Leases
Rental charges payable under operating leases are charged on a straight line basis over the terms of the lease.
Taxation
The charity is exempt from tax on its charitable activities.
Going concern
The financial statements have been prepared on a going concern basis accounting for assets and liabilities as if the charity will continue to operate into the foreseeable future. However, the Trustees outline that there are material uncertainties regarding the organisation's ability to operate as a going concern. For full details of these uncertainties please refer to the relevant note in the accounts and section of the trustees report.
Finance Leases
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of liability.
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Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
| **2 ** | Analysis of Income | |||
|---|---|---|---|---|
| Unrestricted | Restricted | Total |
||
| Funds | Funds | Funds 2021 | ||
| £ | £ | £ | ||
| Donations and legacies | ||||
| Donations | 549,987 | 11,320 | 561,307 | |
| Gift Aid | 126,193 | - | 126,193 | |
| Grants | 82,476 | 56,550 | 139,026 | |
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| 758,656 | 67,870 | 826,526 | ||
| Charitable activities | ||||
| Hospitality and café income | 3,512 | - | 3,512 | |
| Events and activities income | 3,498 | - | 3,498 | |
| Courses and training | 1,656 | - | 1,656 | |
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| 8,667 | - | 8,667 | ||
| Trading Activities | ||||
| Room hire and rental income | 115,526 | - | 115,526 | |
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| 115,526 | - | 115,526 | ||
| Investment income | ||||
| Bank Interest | - | - | - | |
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| - | - | - | ||
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| Total Income | 882,850 | 67,870 | 950,720 | |
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During the year the charity received government grants through the Covid-19 job retention scheme. The total amount received during the year was £82,476. All conditions of the grants were met.
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Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
| tes to the Financial Statements | |||
|---|---|---|---|
| Unrestricted | Restricted | Total |
|
| Funds | Funds | Funds 2019 | |
| £ | £ | £ | |
| Donations and legacies | |||
| Donations & Fundraising | 785,372 | - | 785,372 |
| Grants | - | 32,891 | 32,891 |
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| 785,372 | 32,891 | 818,263 | |
| Charitable activities | |||
| Hospitality and café income | 17,882 | - | 17,882 |
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────────── |
|
| 17,882 | - | 17,882 | |
| Trading Activities | |||
| Room hire and rental income | 64,228 | - | 64,228 |
────────── |
────────── |
────────── |
|
| 64,228 | - | 64,228 | |
| Investment income | |||
| Bank Interest | - | - | - |
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────────── |
────────── |
|
| - | - | - | |
────────── |
────────── |
────────── |
|
| Total Income | 867,482 | 32,891 | 900,373 |
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────────── |
17
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
3 Expenditure on charitable activities by fund type
| Unrestricted | Restricted | Total |
|
|---|---|---|---|
| Funds | Funds | Funds 2020 | |
| £ | £ | £ | |
| Premises costs | 404,819 | 17,002 | 421,821 |
| Administration costs | 153,858 | 750 | 154,608 |
| Mission expenses | 326,313 | 79 | 326,392 |
| Training and Development | 6,783 | 2,374 | 9,157 |
────────── |
────────── |
────────── |
|
| 891,772 | 20,205 | 911,977 | |
────────── |
────────── |
────────── |
|
| Unrestricted | Restricted | Total |
|
| Funds | Funds | Funds 2019 | |
| £ | £ | £ | |
| Premises costs | 277,590 | 1,157 | 278,747 |
| Administration costs | 115,790 | - | 115,790 |
| Mission expenses | 451,584 | 7,565 | 459,149 |
| Training and Development | 16,122 | - | 16,122 |
────────── |
────────── |
────────── |
|
| 861,086 | 8,722 | 869,808 | |
────────── |
────────── |
────────── |
Due to a change in the way the statutory accounts are prepared and how expenditure is categorised, it is likely that some items of expenditure are not categories in the same way to the prior year. For full details of the detailed expenditure breakdown for 2020 please see note 20.
All expenditure incurred is attributable to the charity's main activity of running a multi campus church. The charity does let out some of its premises and buildings for generating additional income. This is a secondary activity of which minimal spend is attributable during the year.
4 Governance costs
| Governance costs | |||
|---|---|---|---|
| Unrestricted | Restricted | Total |
|
| Funds | Funds | Funds 2020 | |
| £ | £ | £ | |
| Governance Costs | 2,982 | - | 2,982 |
────────── |
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────────── |
|
| 2,982 | - | 2,983 | |
────────── |
────────── |
────────── |
|
| Unrestricted | Restricted | Total |
|
| Funds | Funds | Funds 2019 | |
| £ | £ | £ | |
| Governance Costs | 4,352 | - | 4,352 |
────────── |
────────── |
────────── |
|
| 4,352 | - | 4,352 | |
────────── |
────────── |
────────── |
18
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
5 Volunteers
The charity benefits from the voluntary contributions of time and money in helping run the charitable activities during the year. Please refer to the trustees' report for further detail about volunteer contributions in the organisation.
6 Independent examination fees
Fees payable to the independent examiner for:
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Independent examination and preparation of the financial statements |
2,400 | 2,220 |
7 Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 263,055 | 301,304 |
| Social security costs | 15,201 | 17,201 |
| Employer contributions to pension plans | 8,610 | 9,958 |
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────────── |
|
| 286,866 | 328,463 | |
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────────── |
The average head count of employees during the year was as follows:
| 2020 | 2019 | |
|---|---|---|
| Number of staff members | 18 | 14 |
Number of employees who received benefits of more than £60,000 during the year was as follows:
| 2020 | 2019 | |
|---|---|---|
| More than £60,000 | 0 | 0 |
Key Management Personnel
The key management personnel of the charity are Operations Director, Senior Pastor and Associate Pastor. The total employment remuneration received during the year by the key management personnel was £92,991.
19
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
8 Trustee remuneration, expenses and donations
One trustee received remuneration from employment with the charity during the year.
Payment was made to Mr D Smith under the terms of Kings People's Church standard terms of employment for his role as Senior Pastor. The amount of the remuneration paid during the year was £46,714 (2019: £46,626) together with pension contributions of £5,044 (2019: £4,828).
One trustee was remunerated under a self employed basis during the year.
Payment was made to Mr C Jones for services as a campus pastor. The amount of remuneration paid during the year was £1,540.
Two trustees received reimbursement for out of pocket expenses for work carried out for charitable activities and not for responsibilities undertaken as a trustee. The total expenses repaid during the year for travel costs and day to day running costs of the church was £3,296.
9 Tangible assets
| Land and | Fixtures and | |||
|---|---|---|---|---|
| Buildings | Fittings | Equipment | Total | |
| £ | £ | £ | £ | |
| Costs | ||||
| At 1 January 2020 | 675,415 | 113,367 | 394,876 | 1,183,658 |
| Additions | 84,305 | 33,881 | 9,044 | 127,229 |
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────────── |
|
| At 31 December 2020 | 759,720 | 147,248 | 403,920 | 1,310,887 |
| Depreciation | ||||
| At 1 January 2020 | 11,957 | 113,367 | 145,658 | 270,982 |
| Charge | 39,356 | 8,470 | 64,565 | 112,392 |
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|
| At 31 December 2020 | 51,313 | 121,837 | 210,223 | 383,374 |
| Net Book Value | ||||
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────────── |
────────── |
|
| At 31 December 2020 | 708,407 | 25,411 | 193,696 | 927,514 |
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|
| At 1 January 2020 | 663,458 | - | 249,218 | 912,676 |
The charity's building at Tyldesley church was revalued as at 31st December 2019 and post year end in August 2021 by an independent valuer. The historical cost of the property was £nil.
20
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
10 Debtors
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Trade Debtors | 5,327 | 2,671 |
| Accrued Income | 24,310 | - |
| Other Debtors | 77,936 | 155,796 |
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────────── |
|
| 107,572 | 158,467 | |
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────────── |
|
| Creditors: amounts falling due within one year | ||
| Restated | ||
| 2020 | 2019 | |
| £ | £ | |
| Trade Creditors | 10,739 | 7,093 |
| Accruals | 2,400 | - |
| Bank Overdrafts and Credit Cards | 5,028 | 2,433 |
| Obligations under finance leases and hire purchase contracts | 54,996 | 53,722 |
| Deferred income | 1,401 | - |
| Other Creditors | - | 67 |
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────────── |
|
| 74,565 | 63,315 | |
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────────── |
|
| Creditors: amounts falling after one year | ||
| Restated | ||
| 2020 | 2019 | |
| £ | £ | |
| Bank Loans | 141,570 | 145,011 |
| Obligations under finance leases and hire purchase contracts | 173,504 | 235,175 |
────────── |
────────── |
|
| 315,074 | 380,186 | |
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────────── |
11 Creditors: amounts falling due within one year
12 Creditors: amounts falling after one year
21
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
13 Creditors: Bank Loans and Finance Leases
The total obligation under mortgage and hire purchases commitments for the charity was:
| Restated | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Bank loan mortgage commitments | 144,003 | 147,444 |
| Obligations under finance leases and hire purchase contracts | 228,500 | 290,037 |
────────── |
────────── |
|
| 372,504 | 437,481 | |
────────── |
────────── |
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
| Restated | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Not later than 1 year | 54,996 | 54,996 |
| Later than 1 year and not later than 5 years | 173,504 | 235,041 |
────────── |
────────── |
|
| 228,500 | 290,037 | |
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────────── |
22
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
14 Analysis of Charitable Funds
Unrestricted Funds
| Unrestricted Funds | |||||
|---|---|---|---|---|---|
| 1 Jan 20 | Income | Expenditure | Transfers | 31 Dec 20 | |
| £ | £ | £ | £ | £ | |
| Unrestricted | |||||
| General | 271,010 | 866,788 | (884,357) | - | 253,441 |
| Revaluation Reserve | 350,000 | - | - | - | 350,000 |
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────────── |
────────── |
────────── |
|
| 621,010 | 866,788 | (884,357) | - | 603,441 | |
| Designated Funds | |||||
| Projects, Missions and Events | 10,617 | 16,062 | (10,397) | - | 16,282 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| 10,617 | 16,062 | (10,397) | - | 16,282 | |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| Total Unrestricted | 631,627 | 882,850 | (894,754) | - | 619,723 |
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────────── |
────────── |
────────── |
|
| Restricted Funds | |||||
| Awards For All | - | 9,665 | (2,117) | - | 7,548 |
| All Churches Trust | - | 25,000 | (8,281) | - | 16,719 |
| Blackpool Building | - | 10,000 | (145) | - | 9,856 |
| Community Grocery | - | 10,100 | - | - | 10,100 |
| Other small immaterial funds | 39,514 | 13,105 | (9,662) | - | 42,958 |
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────────── |
────────── |
────────── |
────────── |
|
| Total | 39,514 | 67,870 | (20,205) | - | 87,179 |
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────────── |
────────── |
────────── |
|
| Total Funds | |||||
────────── |
────────── |
────────── |
────────── |
────────── |
|
| Total | 671,141 | 950,720 | (914,959) | - | 706,902 |
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23
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
Fund Descriptions
Unrestricted Funds
Revaluation Reserve Fund held for the revaluation of the Tyldesley church building.
Designated Funds
Projects, Missions and Funds earmarked by the trustees for specific projects, missions and events. Events
Restricted Funds
Awards For All Grant received to help with coronavirus community projects. All Churches Trust Grant received to help with community building at The Mill, Bolton. Blackpool Building Donations and grants received towards the Blackpool campus building. Community Grocery Grants and donations received to help establish and maintain the Community Grocery and food provision at The Mill, Bolton.
Other small immaterial funds
Other smaller immaterial funds received during the year.
15 Analysis of net assets between funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Fixed Assets | 927,514 | - | 927,514 |
| Current Assets | 81,847 | 87,179 | 169,027 |
| Creditors less than 1 year | (74,565) | - | (74,565) |
| Creditors greater than 1 year | (315,074) | (315,074) | |
────────── |
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────────── |
|
| 619,723 | 87,179 | 706,902 | |
────────── |
────────── |
────────── |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2019 | |
| £ | £ | £ | |
| Fixed Assets | 912,676 | - | 912,676 |
| Current Assets | 162,452 | 39,514 | 201,966 |
| Creditors less than 1 year | (63,315) | - | (63,315) |
| Creditors greater than 1 year | (380,186) | - | (380,186) |
────────── |
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|
| 631,627 | 39,514 | 671,141 | |
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24
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
16 Related party transactions
There were a number of related party transactions which took place during the year.
Ian Scholes is a trustee of Kings People's Church and a director of Spacious Place. Spacious Place provides the charity with phone line services. The total expenditure incurred during the year was £1,760.
Robert Islip was a trustee during the year until the end of March 2020. During the financial year the charity employed Robert's sons Adam and Ben Islip and daughters in law Susie and Nicola. The total remuneration received by each individual including employer's national insurance and employer's pension is as follows:
| 2021 | |
|---|---|
| £ | |
| Ben Islip | 29,429 |
| Adam Islip | 38,937 |
| Susie Islip | 5,137 |
| Nicola Islip | 13,807 |
Derek Smith is a trustee of Kings People's Church. During the financial year the charity employed Georgina Smith, Derek's spouse. The total remuneration received including employer's National Insurance and employer's pension is as follows:
| 2021 | |
|---|---|
| £ | |
| Georgina Smith | 12,134 |
17 Operating Lease
The total future minimum lease payments under non-cancellable operating leases are as follows:
| 2021 | |
|---|---|
| £ | |
| No later than 1 year | 277,461 |
| Later than 1 year but less than 5 years | 1,169,844 |
| Later than 5 years | 3,651,382 |
────────── |
|
| 5,098,687 | |
────────── |
The operating lease is held for the charity's building premises.
25
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
18 Events after the reporting period
After the year end a number of non adjusting post balance sheet events took place.
During December 2021 the charity purchased a building for its Blackpool campus costing £280,000 of which £210,000 was financed through a mortgage facility and £56,000 through an unsecured loan.
In November 2021 as part of the Church's vision Sunday, a material value of donations and future donation pledges were made by the church members. Donations of £85,000 including gift aid was donated and a further £60,000 of donations where pledged as recurring future donations over the next year.
19 Contingent Assets and Liabilities
At the year end the charity held a contingent asset. The asset relates to a building previously used by Pendlebury Evangelical Church. During the 2019 financial year the activities undertaken by Pendlebury Evangelical Church transferred over to Kings People Church. The timing of the legal transfer of the building and the attached mortgage is uncertain and is deemed likely to take place late in 2021 or early 2022.
The estimated value of the building is £315,000 and the mortgage value as at the 31st of December 2020 is £52,768.
20 Material Going Concern Uncertainties
The trustees acknowledge that at the point of signing the accounts material uncertainties regarding the charity's ability to continue operating as a going concern exist.
The material uncertainties facing the charity include:
1) unknown timing of the Wigan building sale that would result in a significant cash inflow.
2) unknown timing of when conference facilities and building premises rentals will operate at full capacity due to the on going effects of Covid-19.
Following the purchase of the Blackpool building and its subsequent mortgage a bank covenant is in place which has a six month grace period from the point of purchase. Uncertainty remains whether the bank covenant will be breached if the Wigan building remains unsold.
26
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
21 Prior Period Adjustment
In the accounts year ending 31st of December 2019 the designated funds held by the charity were not disclosed separately in the accounts. Outlined below is the prior period adjustment taking the designated funds out of the general unrestricted fund balance.
| Original | Restated | |
|---|---|---|
| 2019 | 2019 | |
| £ | £ | |
| Unrestricted Funds | ||
| General | 281,627 | 271,010 |
| Designated Funds | ||
| Projects, Missions and Events | - | 10,617 |
The accounts for the year ending 31st of December 2019 have been updated for an understated hire purchase creditor of £36,842. The accounts did not reflect the full balance owing to the hire purchase creditor, the VAT debtor due on the purchase of the equipment and an adjustment to the Fixed Asset value of the equipment.
| Original | Restated | |
|---|---|---|
| 2019 | 2019 | |
| £ | £ | |
| Creditors: amounts falling after one year | 343,344 | 380,186 |
| Other Debtors | 122,520 | 155,796 |
| Fixed Assets: Equipment | 245,652 | 249,218 |
27
Kings People's Church
Year Ended 31st December 2020
Notes to the Financial Statements
22 Detailed Expenditure Breakdown
| Unrestricted | Restricted | Total |
|
|---|---|---|---|
| Funds | Funds | Funds 2020 | |
| £ | £ | £ | |
| Premises costs | |||
| Building and premises | 390,032 | 17,002 | 407,034 |
| Finance costs | 14,787 | - | 14,787 |
| 404,819 | 17,002 | 421,821 | |
| Administration costs | |||
| Administration | 15,163 | 750 | 15,913 |
| Depreciation | 112,392 | - | 112,392 |
| Operations | 8,141 | - | 8,141 |
| 135,696 | 750 | 136,446 | |
| Mission expenses | |||
| Events, projects and mission | 13,993 | - | 13,993 |
| Giving & mission | 6,321 | - | 6,321 |
| Hospitality | 4,025 | - | 4,025 |
| Media and publicity | 10,435 | 79 | 10,514 |
| Salary costs | 286,866 | - | 286,866 |
| Worship and production | 2,850 | - | 2,850 |
| Youth and Children | 1,822 | - | 1,822 |
| Ministry and training | 6,783 | 2,374 | 9,157 |
| Staff related costs | 18,162 | - | 18,162 |
| 351,258 | 2,453 | 353,711 | |
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|
| 891,772 | 20,205 | 911,977 | |
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28