REGISTERED COMPANY NUMBER: 06211852 (England and Wales) REGISTERED CHARITY NUMBER: 1120828
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 December 2021
for
The King's Church, Boston Spa
Aysgarth Chartered Accountants Pickering House 40A York Place Leeds LS1 2ED
The King's Church, Boston Spa
Contents of the Financial Statements for the Year Ended 31 December 2021
| Page | |
|---|---|
| Report of the Trustees | 1 to 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activities | 5 |
| Balance Sheet | 6 to 7 |
| Notes to the Financial Statements | 8 to 15 |
The King's Church, Boston Spa
Report of the Trustees for the Year Ended 31 December 2021
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The objects of the charity are the advancement of the Christian religion by knowing Christ and making Him known to others and in accordance with the statement of fundamental truths set out in clause 10 of the Memorandum of Association.
The main normal activities of the charity that are undertaken in order to fulfil these objectives are: Christian worship, Bible study and prayer meetings, outreach, projects in the community and donations to other charities.
Significant activities
2021 was another year impacted by COVID-19. The main achievement of the charity in the period under review was the slow transition from online only services and gatherings to meeting face to face, always being conscious of the various rules, recommendations and people's concerns. Various technologies were utilised but as the year progressed more activities were "in person" while utilising YouTube and podcast medium to bless those unable to attend personally.
1. Church services: Prior to the Lockdown there was provision of two church services each Sunday that were open to all and where the teaching of the Christian faith played a central role. The services, like many of the meetings listed, were held at the Deepdale Community Centre. In January 2021 we were in another lockdown. In the period prior to church meetings being allowed, discussions were held with the Boston Spa Methodist church to use their chapel. This was only available to us on Sunday afternoons but accommodated a lot more people, in a socially distanced manner. This building has continued to be used by us for an increasing number of meetings.
2. Mid-week meetings There are a number of mid-week meeting: informal small groups, regular prayer and Bible studies, as well as meetings geared for younger people.
3. Grants provided: Other Christian charities and missions were supported including a missionary couple in Germany. Additionally church planting, youth work, Christian action and radio broadcasts were all supported with grants.
Public benefit
In planning the activities of the charity the Trustees have had regard to the guidance on public benefit issued by the Charity Commission.
FINANCIAL REVIEW
Financial position
The charity's performance over the last 5 years is summarised as follows:
| Year ended | Income | Expenditure | Surplus/(Deficit) |
|---|---|---|---|
| 31 December 2021 | 95,336 | 110,285 | (14,949) |
| 31 December 2020 | 93,565 | 92,050 | 1,515 |
| 31 December 2019 | 86,182 | 100,029 | (13,847) |
| 31 December 2018 | 97,789 | 101,222 | (3,433) |
| 31 December 2017 | 90,223 | 92,098 | (1,875) |
The pension review group, having engaged with Elim Foursquare Gospel Alliance [Elim] and the Elim Ministers' Pension Fund [EMPF] was disbanded early in 2022. While certainty could not be obtained without the probable need to spend large sums on legal advice, the trustees are taking on face value the reassurances from Elim that they are solely responsible for the pension deficit. It is noted that in Elim's accounts that they have a plan to remove the deficit and despite some contradictory statements, it does appear that the plan does not include seeking payments from associated employers.
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The King's Church, Boston Spa
Report of the Trustees for the Year Ended 31 December 2021
FINANCIAL REVIEW
Reserves policy
All reserves are unrestricted.
A building fund is maintained on the following basis:
Any gift to the building fund will be unrestricted but earmarked for the potential building fund. The requirement for a building funding will be reviewed by the elders no later than 31 December 2025. After which, if the fund has not been spent, the requirement will be reviewed, and any monies potentially re-purposed, at 5 year intervals.
Other non-designated reserves are kept in order to meet future expenditure, in particularly paid staff and possibly to assist the designated building fund.
FUTURE PLANS
In January 2022 Neil Newlove was appointed a trustee. During January Stephen Thompson, while continuing as an employee, stepped down as a trustee and Phil Baraniak, following his promotion to lead pastor, became a trustee.
The budget for 2022 anticipated a £34.2k deficit, which would be funded out of reserves but will not leave the charity in a materially weaker financial position. Since approving the 2022 budget, Stephen requested his retirement date was brought forward from January 2023 to 31 August 2022. Financially this will reduce employment costs for the last 4 months of 2022.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Recruitment and appointment of new trustees
All the directors of the company are also trustees of the charity. The trustees who served during the period under review and to date are set out below. In accordance with the Articles of Association trustees stand for a period of no more than five years after which they can, if they choose, stand for re-election. All trustees, except the paid Pastor, give their time voluntarily.
Induction and training of new trustees
During the period under review one new trustee, David Faraday, was inducted. Nominations for trustees are made at the trustees' meetings and subsequently confirmed at a meeting of the members.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
06211852 (England and Wales)
Registered Charity number
1120828
Registered office
26 Sunnybank Micklefield Leeds LS25 4DQ
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The King's Church, Boston Spa
Report of the Trustees for the Year Ended 31 December 2021
Trustees
Dr S J Maw (resigned 25/11/2021) Rev S Thompson (resigned 19/1/2022) Mr S C C Young FCA Mr D A Faraday Mr P J Baraniak (appointed 19/1/2022) Mr J N Newlove (appointed 16/1/2022)
Company Secretary
Dr A D Pearlman
Independent Examiner
Mr J Farley ACA Stewardship 1 Lamb's Passage London EC1Y 8AB
Approved by order of the board of trustees on 10 August 2022 and signed on its behalf by:
Mr S C C Young FCA - Trustee
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Independent Examiner's Report to the Trustees of The King's Church, Boston Spa
Independent examiner's report to the trustees of The King's Church, Boston Spa ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2021.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 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 accounting requirements of section 396 of the 2006 Act 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; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
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.
Mr J Farley ACA Stewardship 1 Lamb's Passage London EC1Y 8AB
Date: 7 September 2022
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The King's Church, Boston Spa
Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 December 2021
| 31/12/21 | 31/12/20 | ||
|---|---|---|---|
| Unrestricted | Total | ||
| funds | funds | ||
| Notes | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Donations and legacies | 95,170 | 91,328 | |
| Other trading activities | 2 | - | 24 |
| Investment income | 3 | 166 | 2,213 |
| Total | 95,336 | 93,565 | |
| EXPENDITURE ON | |||
| Charitable activities | |||
| Church activity | 110,285 | 92,050 | |
| NET INCOME/(EXPENDITURE) | (14,949) | 1,515 | |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 146,846 | 145,331 | |
| TOTAL FUNDS CARRIED FORWARD | 131,897 | 146,846 |
The notes form part of these financial statements
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The King's Church, Boston Spa (Registered number: 06211852)
Balance Sheet
31 December 2021
| 31/12/21 Unrestricted funds Notes £ FIXED ASSETS Tangible assets 10 1,956 CURRENT ASSETS Debtors 11 1,058 Cash at bank 131,048 132,106 CREDITORS Amounts falling due within one year 12 (2,165) NET CURRENT ASSETS 129,941 TOTAL ASSETS LESS CURRENT LIABILITIES 131,897 NET ASSETS 131,897 FUNDS 13 Unrestricted funds 131,897 TOTAL FUNDS 131,897 |
31/12/20 Total funds £ 1,635 1,578 146,668 148,246 (3,035) 145,211 146,846 146,846 146,846 146,846 |
|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
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The King's Church, Boston Spa (Registered number: 06211852)
Balance Sheet - continued 31 December 2021
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 10 August 2022 and were signed on its behalf by:
Mr S C C Young FCA - Trustee
The notes form part of these financial statements
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The King's Church, Boston Spa
Notes to the Financial Statements for the Year Ended 31 December 2021
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Going concern
The accounts have been prepared on the going concern basis, as there are no material uncertainties about the charity's ability to continue. Based on the adequacy of the charity's reserves as at the balance sheet date, along with their knowledge of the charity's ability to meet bills, payments and other liabilities as they fall due, the directors have a reasonable expectation that the charity has sufficient resources to continue in operational existence for the foreseeable future.
In making this assessment the trustees have considered the impact of Covid-19 and have concluded that its impact on net income will not be material.
The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
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the requirements of Section 7 Statement of Cash Flows;
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the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c).
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
The charity has relied significantly upon volunteers in carrying out its activities during the year. In accordance with paragraph 6.18 of the SORP, the role of volunteers has not been recognised as income from donated services in the accounts.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure, including irrecoverable VAT, is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on cost Computer equipment - 33.3% on cost
All tangible fixed assets are recorded at cost, being purchase price, less accumulated depreciation.
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The King's Church, Boston Spa
Notes to the Financial Statements - continued for the Year Ended 31 December 2021
1. ACCOUNTING POLICIES - continued
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
Principal staff, who are ordained Elim Ministers, are eligible for membership of the Elim Minister's Pension Fund [EMPF], administered on behalf of the Elim Pentecostal Churches. Therefore, the charity is probably a participating employer in the Elim Foursquare Gospel Alliance Pension Scheme which is established as a multiemployer defined benefit pension scheme. The charity is unable to identify its share of this scheme's assets and liabilities therefore, as permitted by FRS 102, the entire scheme is being treated as if it were a defined contribution scheme.
The last actuarial valuation at 31 December 2018 indicated that the obligation to provide defined benefits gives rise to a funding deficit of £11.8m. Senior members of Elim Foursquare Gospel Alliance's National Leadership Team have provided the charity with reassurances that we have no obligation towards clearing the deficit of the EMPF. These assurances have been accepted at face value and so any potential share of the EMPF deficit has not been included as a recognised liability in these financial statements.
As at 30 September 2021 the multi-employer pension scheme operated by Elim Foursquare Gospel Alliance (charity number 251549) had an accounting valued deficit of £30m. This has been fully provided for in Elim's accounts and they have a payment plan to 1 December 2035 to make good the funding deficit. Further information about this defined benefits scheme are explained in the published consolidated accounts of that entity.
Other defined contribution pension schemes are made available to all other staff.
2. OTHER TRADING ACTIVITIES
| OTHER TRADING ACTIVITIES | ||
|---|---|---|
| 31/12/21 | 31/12/20 | |
| £ | £ | |
| Book buying commission | - | 24 |
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The King's Church, Boston Spa
Notes to the Financial Statements - continued for the Year Ended 31 December 2021
| 3. | INVESTMENT INCOME | ||
|---|---|---|---|
| 31/12/21 | 31/12/20 | ||
| £ | £ | ||
| Deposit account interest | 166 | 2,213 | |
| 4. | GRANTS PAYABLE | ||
| 31/12/21 | 31/12/20 | ||
| £ | £ | ||
| Church activity | 15,000 | 15,000 | |
| The total grants paid to institutions during the year was as follows: | |||
| 31/12/21 | 31/12/20 | ||
| £ | £ | ||
| Arab World Ministries | 7,500 | 7,500 | |
| Elim Foursquare Gospel Alliance | 2,000 | 2,500 | |
| Caring For Life | 2,000 | 2,500 | |
| Grace Church, Boroughbridge | 2,000 | - | |
| Good News Broadcasting Association | 750 | 1,500 | |
| Yorkshire Camps | 750 | - | |
| Geoff Bowell pastor at Elim Scarborough | - | 1,000 | |
| 15,000 | 15,000 | ||
| 5. | SUPPORT COSTS | ||
| 31/12/21 | 31/12/20 | ||
| £ | £ | ||
| Church activity | 984 | (2,249) | |
| The total support costs during the year was as follows: | |||
| 31/12/21 | 31/12/20 | ||
| £ | £ | ||
| Finance: Bank charges | 6 | (3,299) | |
| Governance costs: Accountancy and legal fees | 978 | 1,050 | |
| 984 | (2,249) |
The following payments, including VAT, have been accrued or made to the independent examiner Stewardship in respect of their examination £978 (2020: £960).
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The King's Church, Boston Spa
Notes to the Financial Statements - continued for the Year Ended 31 December 2021
6. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 31/12/21 | 31/12/20 | ||
|---|---|---|---|
| £ | £ | ||
| Depreciation - owned assets | 1,342 | 873 | |
| 7. | TRUSTEES' REMUNERATION AND BENEFITS | ||
| 31/12/21 | 31/12/20 | ||
| £ | £ | ||
| Trustees' salaries | 40,550 | 39,689 | |
| Trustees' pension contributions to defined benefit schemes | 5,379 | 5,184 | |
| 45,929 | 44,873 |
Stephen Thompson was paid a salary in his capacity as a Pastor of the church, and not as a trustee, as permitted by clause 5.3 Memorandum of Association.
Trustees' expenses
Stephen Thompson has had expenses reimbursed to him as part of his role as the senior pastor of the church and not as a trustee of the charity that operates the church.
Apart from the above, there were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.
Donations by Trustees
The total amount of donations made by trustees (either directly or via companies controlled by them) was £19,277 (2020: £20,586). In addition services were received free of charge by the charity from a company controlled by a trustee.
8. STAFF COSTS
| STAFF COSTS | ||
|---|---|---|
| 31/12/21 | 31/12/20 | |
| £ | £ | |
| Wages and salaries | 70,903 | 64,021 |
| Other pension costs | 9,871 | 8,785 |
| 80,774 | 72,806 | |
| The average monthly number of employees during the year was as follows: | ||
| 31/12/21 | 31/12/20 | |
| Pastors | 2 | 2 |
Key management salaries.
Phil Baraniak, as the associate pastor, is deemed to be part of key management and as such attends trustees' meetings even though he is not a trustee.
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The King's Church, Boston Spa
Notes to the Financial Statements - continued for the Year Ended 31 December 2021
8. STAFF COSTS - continued
| Key management salaries Key management pension contributions to defined contribution schemes No staff received salaries at a rate of more than £60,000 per annum. Most of the charity's activities are carried out by unpaid volunteers. 9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES INCOME AND ENDOWMENTS FROM Donations and legacies Other trading activities Investment income Total EXPENDITURE ON Charitable activities Church activity NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
31/12/21 31/12/20 £ £ 30,353 24,332 4,492 3,601 34,845 27,933 Unrestricted funds £ 91,328 24 2,213 93,565 92,050 1,515 145,331 146,846 |
|---|---|
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The King's Church, Boston Spa
Notes to the Financial Statements - continued for the Year Ended 31 December 2021
10. TANGIBLE FIXED ASSETS
| 10. | TANGIBLE FIXED ASSETS | |||
|---|---|---|---|---|
| Fixtures | ||||
| and | Computer | |||
| fittings | equipment | Totals | ||
| £ | £ | £ | ||
| COST | ||||
| At 1 January 2021 | 2,025 | 1,399 | 3,424 | |
| Additions | - | 1,663 | 1,663 | |
| Disposals | - | (500) | (500) | |
| At 31 December 2021 | 2,025 | 2,562 | 4,587 | |
| DEPRECIATION | ||||
| At 1 January 2021 | 956 | 833 | 1,789 | |
| Charge for year | 422 | 920 | 1,342 | |
| Eliminated on disposal | - | (500) | (500) | |
| At 31 December 2021 | 1,378 | 1,253 | 2,631 | |
| NET BOOK VALUE | ||||
| At 31 December 2021 | 647 | 1,309 | 1,956 | |
| At 31 December 2020 | 1,069 | 566 | 1,635 | |
| 11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |||
| 31/12/21 | 31/12/20 | |||
| £ | £ | |||
| Other debtors | 1,047 | 1,496 | ||
| Prepayments and accrued income | 11 | 82 | ||
| 1,058 | 1,578 | |||
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | |||
| 31/12/21 | 31/12/20 | |||
| £ | £ | |||
| Social security and other taxes | 1,042 | 1,014 | ||
| Accruals and deferred income | 1,123 | 2,021 | ||
| 2,165 | 3,035 |
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The King's Church, Boston Spa
Notes to the Financial Statements - continued for the Year Ended 31 December 2021
13. MOVEMENT IN FUNDS
| Unrestricted funds General fund Building Fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Building Fund TOTAL FUNDS |
Net movement At At 1/1/21 in funds 31/12/21 £ £ £ 139,471 (14,949) 124,522 7,375 - 7,375 146,846 (14,949) 131,897 146,846 (14,949) 131,897 Incoming Resources Movement resources expended in funds £ £ £ 95,336 (110,285) (14,949) 95,336 (110,285) (14,949) Net movement At At 1/1/20 in funds 31/12/20 £ £ £ 137,956 1,515 139,471 7,375 - 7,375 145,331 1,515 146,846 145,331 1,515 146,846 |
|---|---|
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 93,565 | (92,050) | 1,515 |
| TOTAL FUNDS | 93,565 | (92,050) | 1,515 |
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The King's Church, Boston Spa
Notes to the Financial Statements - continued for the Year Ended 31 December 2021
14. RELATED PARTY DISCLOSURES
Except as disclosed in note 7 Trustees' remuneration and benefits there were no related party transactions for the year ended 31 December 2021 or 31 December 2020
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