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2020-08-31-accounts

Registered number: 06417797 Charity number: 1122900

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

Allen Mills Howard Limited Chartered Accountants & Statutory Auditors Lewis House 56 Manchester Road Altrincham Cheshire WA14 4PJ

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charity, its trustees and advisers 1
Trustees' Report 2 - 11
Independent Auditors' Report 12 - 14
Consolidated Statement of Financial Activities 15
Consolidated Balance Sheet 16
Company Balance Sheet 17
Consolidated Statement of Cash Flows 18
Notes to the Financial Statements 19 - 35

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

Trustees

Gavin White (Chair) Melanie Harkness Simon Smith Bamidele Adebisi Dami Fagade Akin Ande Mary Cameron Ema Etuk

Company secretary Gavin White

Company registered number Charity registered number 06417797 1122900

Registered office

King’s Church, Kings House, Sidney Street, Manchester. M1 7HB

Websites

www.makingjesusfamous.org www.homesofhope.co.uk www.makingjesusfamous.org/rooted www.kingshouse.co.uk

Main Church Website Homes of Hope Theological School King’s House Conference (Greater Manchester) Ltd

Email

info@makingjesusfamous.org

Phone 0161 273 2168

Auditors

Allen Mills Howard Limited Lewis House 56 Manchester Road Altrincham Cheshire WA14 4PJ

Bankers

Royal Bank of Scotland 12 Pillory Street Nantwich CW5 5BE

Page 1

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The trustees present their report and the audited group and company financial statements for the year ended 31 August 2020. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Companies Act 2006, the Charities Act 2011 and 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 United Kingdom and Republic of Ireland(FRS102) (effective 1 January 2019).

Structure, governance and management

⚫ CONSTITUTION

The King’s Church in Greater Manchester Limited Company was incorporated on the 5th November 2007 with the following objectives and aims:

⚫ METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. This states that any person, being a member of the Church and who accepts the doctrine of the Church, may be appointed to the board by the members. The members of the company are listed on Page 3 of this report.

⚫ POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES

Each of the appointed Trustees draws on specialist and professional advice for their area of responsibility. Each Trustee has received training and teaching to help them bring governance and direction to their area of responsibility.

The Trustees are aware that they are responsible for the training of any new trustee, including awareness of a trustee's responsibilities, the articles of association and memorandum of agreement.

During the year, the Trustees have reviewed this and are developing a training programme for the current Trustees based on a skills audit matrix and a governance self-evaluation exercise for the current board. The induction of the new Trustees consists of giving them a copy of the company articles of association and memorandum of agreement and the CC3 Publication: ‘ The Essential Trustee, What you need to know’ . This document was updated by the Charity Commission in May 2018 and each Trustee has signed to say they have read this.

Trustees attended briefings and seminars put on by the Charity Commission, Companies House and other community capacity building organisations in Greater Manchester over this last financial year which were beneficial to the operations and governance of the Charity.

Specific training courses are attended by Trustees & other key operational staff and personnel in the church throughout the year to help further develop their area of involvement and expertise; e.g. Key Directors, Staff members & volunteers have attended training events in the areas of Food Hygiene Safety, PAT Testing, COSHH, IOSH, Child Protection, Safeguarding, Data Protection (GDPR), Fire Risk Assessment, AutoEnrolment, VAT, Payroll, First Aid, Health and Safety and Fire Safety during this year.

Page 2

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2020

⚫ ORGANISATIONAL STRUCTURE AND DECISION MAKING

The Trustees of the Charity are as noted on page 1.

Trustees’ meetings are held periodically (at least 6 times a year) to review legal & financial strategy and financial performance but regular contact is maintained in between meetings to monitor the distribution of funds, cashflow, budgets, audit, accounts, legal / HR procedures and general governance on issues such as safeguarding across the Charity

The Trustees work together with the Spiritual Leadership (Members of the Company) of the Church, which comprises the following as of the 31[st of] August 2020 who meet at least 12 times a year as a team:

Richard Anniss Judith Anniss Kofoworola Bolarin Lukundo Fagade Oludamilola Fagade Joshua Bloor Rhian Bagley Charlotte Bloor James Bagley and all the recognised pastors within all communities of King’s Church.

The Trustees work with the leadership teams of King’s Church across its 3 Congregations and locations in Manchester Central, Salford and Wythenshawe. All these congregations remain within the Charity set-up as before and are known as King’s Church in those locations.

Details of the leadership teams in each site and location are available on our website.

In addition to the work done by Leaders & Trustees as detailed above, the Charity seeks to further its aims and objectives by utilising the volunteer capacity (approx. 200) in the membership of the Church. Some full time and part time salaried members of staff augment and bring core hours and focus to this. They help to facilitate various areas of the activity and vision of the charity as follows

These areas are as follows for this last financial year as of 31[st] August 2020:

Areas of Church Life Staff Members & Key Ministry Leaders

Manchester Central Leadership Team: Led by Richard & Judith Anniss Salford Leadership Team: Led by Tunji & Sheba Agbaje Martins Wythenshawe Leadership Team: Led by James and Rhian Bagley Administration: Dami Fagade Reception: Rachel Andrews, Edna Abreu and Bev McPherson Finance: Catherine Longson Child Protection Safety Officer : Catherine Burke Kids Club & Kids & Cake : Mel Harkness King’s Kids: Cath Burke Youth Ministry: Dami Babablola Worship Ministry: Lukundo Fagade Young Adults & Student Ministry : Lukundo Fagade Homes of Hope : Gary Stretton VIP Nights for the Homeless: Obi and Yvonne Onyekwelu Buildings and Conferencing: Graham Aves, Anthony Myers, Heather Neal, Char Bloor, Lore Sacalus, Pippa Francis, Leah Stout, Ed Johnson, Brandon Smith-Warner and Colin Wong. Health & Safety, IT & Fire Strategy : Graham Aves & Anthony Myers Media & Creative Output: Mike Burke Inspiration Arts: Char Bloor Rooted: Josh Bloor

Page 3

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2020

The Charity has sought to employ key personnel to further these areas of involvement for the Charity. The Leaders and Trustees meet with various leaders in the church to periodically review various areas of church life and activity. These reviews are key in ensuring that the Charity continues to meet its primary objectives. The Trustees work together with the Leaders and Leaders in the Church to ensure that these aims, and objectives are met throughout the activity of the company.

Each member of staff goes through an annual appraisal, review and performance process to help staff with development, setting objectives, achieving targets and training opportunities.

The leadership are developing this appraisal and review process for members of the leadership team too.

Areas of oversight and governance have continued to be developed this year including the full review of the full health and safety policy, fire risk assessment, fixed assets register and the ongoing development and implementation of the Child Protection Policy in line with the latest government guidance and advice. We have a Service Level Agreement with Thirtyone:Eight formerly known as the Churches’ Child Protection Advisory Service (CCPAS) to help deliver and achieve this objective.

King’s Church has also commissioned a regular safeguarding audit with Elaine Davidson from the Pioneer Network of Churches that identified areas of development for the Charity. This audit is RAG rated and will be used by the Leaders and Trustees to monitor progress against key areas such as Policy Development, Training and E-Safety. Elaine continues to provide support to the charity on areas of child protection and safeguarding.

The Leaders and Trustees set and agree financial budgets for each area of Church life. These are monitored and reviewed each month against cash flow and expenditure management.

⚫ RISK MANAGEMENT

The Trustees have conducted a review to identify the major risks to which the charity is exposed and systems, policies & procedures have been established to mitigate those risks. These policies are reviewed annually by the Directors and updated whenever necessary.

Gavin White and Dami Fagade work closely with the Building Management Team of Graham Aves, Anthony Myers and Heather Neal to ensure that sound risk management is adopted and maintained throughout the King’s House property that the charity owns and uses for charitable purposes.

Gavin White works with Dami Fagade and Catherine Longson in terms of how the financial management of the charity is conducted, managed and implemented in the Charity as a whole.

Gift Aid is continued to be given promotion and profile in the church to new people donating to the charity in this financial year. The Charity continues to use the GASDS (Gift Aid Small Donation Scheme) for giving at meetings at the King’s House Building this last financial year. Online giving continues to be enhanced and developed this year through the Church continuing to use ‘Churchsuite’ as on online database for its membership and operations.

The Trustees have continued to be involved in managing risk in this financial year with particular reference to Health and Safety, Finance, Security and Fire Strategy and Safety with Simon Smith as lead Trustee. Judith Anniss from the Church Leadership team and Mary Cameron/ Gavin White as lead Trustee have given particular oversight to the Safeguarding and Child Protection Policy with Catherine Burke.

The Charity conduced a risk analysis of the impact of GDPR (General Data Protection Regulations) on the Charity that was introduced May 25[th] , 2018. It undertook an audit of current practice to ensure compliance from May onwards, which resulted in a number of changes for how data was processed and retained. This area remains an ongoing action for our risk compliance as a church and charity.

The Charity has purchased two houses for accommodating and supporting the Homeless since 2013 with mortgages from Kingdom Bank. Risk Assessments & Policies have been developed to ensure the house is run safely and securely for all concerned. These houses are called ‘Homes of Hope’ and are based in South Manchester in Northenden and Baguley.

The Charity now has capacity to house up to 10 people who are homeless at any given time from across Greater Manchester – for more on this project; visit www.homesofhope.co.uk

Page 4

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2020

• SERIOUS INCIDENTS

There were no serious incidents or events that needed to be reported to the Charity Commission in this financial year.

• Coronavirus: Financial & Organisational Impact

The Charity similarly to most organisations and charities have been impacted by the Coronavirus Pandemic, the biggest impact to the Charity has been on the trading company owned and run by the Charity, King’s House Conference Limited.

King’s House Conference Limited had to close its premises during the Lockdown imposed by the government in March 2020. This led to a loss of significant income as all the bookings in that period were either cancelled or postponed to a future date. As Lockdown starts to ease the hospitality industry is still very restricted in it opening up and this has led to a significant reduction in the number of new bookings for the rest of the 2020/2021 Financial year. A portion of the staff have been put on the furlough scheme but as bookings reduced and the cash reserves get reduced, the management and directors of Kings House Conference Limited have had to make the difficult decision of making some staff redundant. The Charity believe that the Trading Company is a going concern for the financial year 2021/2022. As well as its current reserves and a conservatively projected bookings for 2021/22, it is being projected that the trading company will breakeven by the end of the financial year 2021/2022. The trading company have also applied for and received a Bounce Back Loan to support its cashflow.

The Charity would usually anticipate an average annual transfer of £100,000 from the trading company and as this is not forthcoming in the new financial year, The Charity has had to review it spending across the organisation. As well as a potential drop in donations from previous years, the charity is anticipating running a deficit of £30,000 in the 2021/2022 financial year. This has been approved by the Trustees as the Charity has enough unrestricted reserves to cover the deficit.

The Trustees will continue to work with the Leadership Team to monitor & ensure that the targets set in the financial budgets are being reached to and that the Charity isn’t at risk.

The Charity will also continue to explore funding and grant supports that are available.

• RISK MANAGEMENT: King’s House Conference (Greater Manchester) Ltd

King’s House Conference (Greater Manchester) Ltd (Company No: 7205595 and VAT Registered: 994668544) continues as a trading company for the Charity to continue to operate King’s House for conference use to generate funds for the work and objectives of the Charity. King’s Church in Greater Manchester is the single share-holder of the company and the Directors of the Company are appointed by and accountable to the Trustees of King’s Church in Greater Manchester for how the company is run and operated.

The Directors of King’s House Conference Ltd meet every 2 months to monitor the effectiveness & development of the Trading Company for King’s Church as a Charity. They hold the KHCL Management Team to account for the maximum use of the asset & income of King’s House for the furtherance of the objectives and aims of the King’s Church Charity.

The current board of Directors for King’s House Conference Ltd are:

Gavin White Graham Aves Roger Beattie (Resigned 22 February 2021) Paul Francis Andrew Longson Rukaya Dake

Page 5

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2020

• RISK MANAGEMENT: Child Protection and Safeguarding

Appropriate DBS checks, supported by regularly reviewed policies, are made for all those who work with children or other vulnerable groups within the operation and activity of the Charity in all the sites / churches in Manchester, Higher Blackley, Longsight, Salford and Wythenshawe.

A new safeguarding policy has been drafted, in consultation with Thirtyone:Eight. This policy will inform further training for all volunteers involved in working with children and young people.

• RISK MANAGEMENT: Health and Safety and Employment Law

The charity has commissioned the services of a consultancy firm who advise, conduct audits and formulate policies for the charity in relation to Health and Safety and Employment Law.

⚫ POLICIES AND OBJECTIVES

The Trustees meet annually and periodically to review budgets and policies put forward by the Leaders of King’s Church each year to ratify and agree how finances and resources are allocated in line with the objectives and vision of the Charity.

⚫ STRATEGIES FOR ACHIEVING OBJECTIVES

The Leaders meet regularly to look at strategies for achieving the key objectives of the Church. These strategies and plans are communicated regularly with the Trustees. The Trustees are asked to bring lead and input on issues such as finance, budgets, health and safety and child protection and other issues that come under their legal governance as Trustees of the Charitable Company.

⚫ ACTIVITIES FOR ACHIEVING OBJECTIVES

Some of the activities for achieving the objectives are listed in the ‘achievements and performances’ section of this report.

⚫ GRANT MAKING POLICIES

Grants and Donations were made to other charities in Greater Manchester and the UK in line with the Charity’s objectives and aims. These donations and grants were planned into the annual budget and formally agreed & ratified by the Leaders and Trustees.

Grants or Gifts are given to individuals in line with agreed budgets to relieve poverty or hardship, both in Manchester and in the rest of the World. Gifts are also given to individuals for the proclamation of the gospel of Jesus Christ in line with the Charity’s objectives, ethos and aims.

Achievements and performance

The charity trustees confirm that they complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission; the detail of this compliance is listed below in the Review of Activities.

Page 6

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2020

REVIEW OF ACTIVITIES

A printed report, with photos, is available on request which details further what we have done over the last financial year – please contact the church office for a copy.

The achievements and performance of the Charity have been summarised against the 4 objectives and aims of the Charity as follows:

1. The proclamation and furtherance of the Gospel of God concerning his Son Jesus Christ our Lord and the preaching and teaching of the Christian Faith in accordance with the Bible;

The Church continued to meet in person the last financial year till the lockdown came into place in March 2020, the average Sunday gathering attendance at March 2020 was between 370 – 450 people which included about 80 children and youth. From March 2020, we moved our gatherings to an online platform. Average Sunday attendance across the whole of King’s Church in 2019 & 2020 were:

Site 2020 2019
Manchester Central 311 264
Home 0 49
Higher Blackley 0 33
Longsight 0 56
Swinton 40 56
Wythenshawe 61 66

All our sites and communities within the charity run regular teaching and training events which are free and open and available to the public for furthering their knowledge & understanding of the Christian faith. Each church also runs meeting in homes across Manchester & Salford during the week.

The church has sent ministries to various parts of the world on mission trips and visits in this last financial year. These countries have included India, Nigeria and France where there are ongoing partnerships and ministries that we are supporting and working with.

Our website is accessed by approximately 35 - 50 different people every day, with a total number of ‘page views’ in excess of 5,000+ each month. All our resources, podcasts and videos are available free on the website and across our social media platforms too.

Our Sunday Online gatherings are viewed by an average of 500 viewers since March 2020

Various events were held in all the local communities at Christmas and Easter with many members of those local communities in attendance for various activities and events.

An outreach parent/carer and toddler group called ‘Kids & Cake’ continued to meet in King’s House in central Manchester every week during this year attracting many visitors from the community with their young children. A similar group runs every week in Longsight too with many local families in attendance from the Longsight community.

The Charity has purchased two houses for accommodating and supporting vulnerable / homeless men since April 2013. The first ‘Homes of Hope’ continued to be used for charitable and mission purposes throughout this last financial year with occupancy rates of around 85%. The second house is also running at a similar occupancy level, and a third house opened in summer 2018. These houses are called ‘Homes of Hope’ and operates within the Charity and vision of King’s Church.

Page 7

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2020

2. The relief of persons who are in conditions of need, financial hardship or who are aged and sick and in need and to relieve the distress caused thereby in Greater Manchester and in other such parts of the United Kingdom and the world as the Directors see fit;

The charity has sought to fulfil its obligation to meet the requirements for public benefit in a number of ways in this last year. In Manchester, this can be seen with the hosting of regular VIP Nights for the homeless in our central King’s House venue. We held a number of these events in this last financial year in Manchester. At these events VIP guests from local hostels or homeless men and women off the street come and receive free food, clothes, toiletries and haircuts. We have fed, clothed and met the practical needs of many homeless people through this area of ministry in the last financial year.

The Church continued to support different Christian charities in Greater Manchester in this last financial year as below for the year. This was as follows:

The Message Charity (Registered Charity No: 1081467)
£4,000		 1081467)
£4,000
Barnabus Charity (Registered Charity No: 1055993)
£1,800
Hope for Justice (Registered Charity No: 1126097)
£1,800
Boaz Trust Charity (Registered Charity No:1110344)
£1,800
The Church also gave to the following national Christian charities in the U
Pioneer (Registered Charity No: 1118766)
£21,600
Fusion (Registered Charity No: 1073572)
£3,000
Evangelical Alliance (Registered Charity No: 212325)
£1,200
Festival of Praise (Registered Charity No: 1103591)
£1,000
Visible Ministries (Registered Charity No: 1156788)
£1,200

The Church also gave to the following national Christian charities in the UK too in this year:

All of these charities that we give to have aims and objectives that are similar and aligned with King’s Church in Greater Manchester; especially in connection with the relief of poverty & hardship, the proclamation of the gospel and education / mission activities in the UK.

Overall, the church aims to commit 10% of its annual income to charities, initiatives and projects, outside of itself, every year.

The church has been involved in giving to projects and initiatives around the world to meet need and alleviate hardship in countries such as Nigeria and India.

The church was also able to financially support a number of members of the church who were experiencing poverty, hardship or need during this last financial year.

3. To advance the education of the inhabitants of Greater Manchester and other such parts of the United Kingdom and the world as the Directors see fit by providing and assisting in the provision of educational facilities and resources and in any other way that the Trustees may from time to time consider appropriate.

The Church continues to develop teaching and educational resources which are all offered free of charge on its website and through various training events and courses accordingly

4. To promote and fulfil such other charitable purposes beneficial to the community in Greater Manchester and such other parts of the United Kingdom and the world as the Directors see fit.

The church across all its sites in Manchester and Salford continued to invest and develop its website and online ministries during this financial year. All materials and resources are made available free of charge on all our online platforms.

The King’s House building continued to be invested in and developed as a base for the charity with ongoing renovation and refurbishment planned each year to improve facilities.

The building, when not being used by the church, has continued to be utilised fully as a conference venue to generate additional finances and resources for the charity to meet its aims and objectives.

Page 8

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2020

⚫ RESERVES POLICY

There are a number of reasons why the charity may require reserves:

  1. Supporting personnel to further the work of the charity

  2. To maintain and expand current facilities as deemed necessary.

  3. To fund initiatives which meet the objectives of the charity, in particular publishing and media projects.

The Trustees have reviewed the reserves of the Charity, in particular the nature of the income and expenditure streams and the need to match variable income with fixed commitments. The Trustees are confident that future income will enable the Charity to meet its foreseeable needs on the basis of planned activity and consequently are satisfied with the current level of reserves.

The charity’s available reserves (defined as unrestricted funds not invested in fixed assets) at the balance sheet date were £296,051 deficit (2019: £363,724 deficit).

At 31 August 2020, the charity had resources freely available for its general purposes amounting to £1,686,236 (2019: £1,653,709).

Cash reserves are maintained at a minimum level of £100,000 for the Charity as a whole; which includes the bank balances for all the sites in Manchester, Salford as well as the King’s House Conference Ltd bank balances.

• MONITORING AND REVIEW

The church finance and admin team on behalf of the Leaders and Trustees monitors funds & cash flow, ensuring an appropriate level of reserves is maintained.

The level of giving income was at a similar level to the previous financial year across the Charity in the last financial year in terms of:

King’s Church continued to receive housing benefits from Manchester City Council to help with the support and accommodation of the residents at Homes of Hope. Exempt Accommodation Status has been applied and the result of that decision was successfully granted in December 2014 following a first-tier tribunal appeal. This enabled the amount of benefits we received to increase over this last financial year to help with the running and operation of Homes of Hope.

Forecasts and Budgets are carefully prepared and reviewed at regular monthly intervals by the Church Leaders and every other month by Trustees in terms of income, expenditure and cash-flow analysis.

Page 9

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2020

⚫ FUTURE DEVELOPMENTS

The Church and Charity plans to continue its work of the furtherance of its aims and charitable objectives in this coming financial year.

The work into France and French speaking Nations will continue with various mission and teaching trips planned for the future.

Mission and ministry trips to Nigeria and India are also planned for the next financial year.

The Church is continuing to develop its relationship with the Pioneer Network and will be part of the annual leaders conference for over 500 people once again in March 2022.

Other church plants / congregations are planned for the next few years. These congregations will come under the legal umbrella and governance of King’s Church in Greater Manchester.

The Charity purchased its first house for the homeless in April 2013, the second house in August 2015 and the third house, for rent, in the summer of 2018.

Homes of Hope which is the ministry area which runs the houses will be becoming a charity in its own right as soon as it gets approval from the charity commission. King’s Church still intends to provide support to Homes of Hope as part its charitable objectives.

The use of King’s House as a venue for external bookings and conferences has been reviewed and King’s House Conference (Greater Manchester) Ltd has been set-up by the charity to operate, manage & develop this aspect of the Charity. This new trading company for the charity started trading from September 1st 2010 and continues to trade as a company where all the profits are ‘gift aid’ donated back to the Charity for the furtherance of the aims and objectives of the Charity.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 10

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2020

In so far as the trustees are aware:

• there is no relevant audit information of which the company's auditors are unaware, and

• that trustees have taken all the steps that ought to have been taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

TRUSTEES’ INDEMNITY ARRANGEMENTS

Individual indemnities have been provided to the trustees, under which the company has agreed to indemnify the trustees to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, their execution of their powers, duties and responsibilities as trustees of the company. These indemnities are Qualified Third Party Indemnity Provisions as defined in Section 236 of the Companies Act 2006 and copies are available for inspection in the office during normal office hours.

AUDITORS

The auditors, Allen, Mills, Howard & Company have indicated their willingness to continue in office. The Designated Trustees will propose a motion re-appointing the auditors at a meeting of the Trustees.

This report was approved by the Trustees on the 25[th] May 2021 & signed on their behalf by

Gavin White

Dami Fagade

Page 11

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KING’S CHURCH IN GREATER MANCHESTER

OPINION

We have audited the financial statements of King’s Church in Greater Manchester (the 'parent charitable company') and its subsidiaries (the ‘charitable group’) for the year ended 31st August 2020 which comprise the consolidated Statement of Financial Activities, the consolidated Balance Sheet, the company Balance Sheet, the consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charitable group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

OTHER INFORMATION

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Page 12

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KING’S CHURCH IN GREATER MANCHESTER

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the charitable group and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Statement of Trustees Responsibilities, the trustees (who are also the directors of the charitable group for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable group or to cease operations, or have no realistic alternative but to do so.

Page 13

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KING’S CHURCH IN GREATER MANCHESTER

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

USE OF OUR REPORT

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr David Allen FCCA (Senior Statutory Auditor) For and on behalf of Allen Mills Howard Limited

Chartered Accountants and Statutory Auditors Lewis House 56 Manchester Road Altrincham Cheshire WA14 4PJ

25[th] May 2021

Page 14

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
INCOME FROM:
Donations
2
554,342
56,299
Charitable activities
17,821
62,340
Other trading activities
3,4
419,077
5,870
Investments
5
134
-
Other
6
63,032
-
_
_
TOTAL INCOME
1,054,406
124,509
_
_
EXPENDITURE ON:
Raising funds
4
486,779
-
Charitable activities
7, 8, 9
522,213
155,109
_
_
TOTAL EXPENDITURE
1,008,992
155,109
_
_
45,414
(30,600)
NET INCOME / (EXPENDITURE) BEFORE
TAX
Taxation
13,706
-
_
_
NET INCOME / (EXPENDITURE) AFTER
TAX
31,708
(30,600)
Transfer between funds
16
397
(397)
_
_
NET MOVEMENT IN FUNDS
32,105
(30,997)
RECONCILIATION OF FUNDS:
Total funds brought forward
1,695,525
91,094
_
_
TOTAL FUNDS CARRIED FORWARD
1,727,630
60,097

 Total
funds
2020
£
610,641
80,161
424,947
134
63,032
_
1,178,915
_
486,779
677,322
_
1,164,101
_
14,814
13,706
_
1,108
-
_
1,108
1,786,619
__
1,787,727
 Total
funds
2019
£
643,424
78,202
596,912
184
-
_
1,318,722
_
541,301
852,607
_
1,393,908
_
75,186
-
_
75,186
-
_
(75,186)
1,861,805
__
1,786,619

The statement of financial activities includes all gains and losses recognised in the current or previous period. All incoming resources and resources expended above relate to continuing operations.

The notes on pages 20 to 35 form part of these financial statements.

Page 15

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2020

Notes
£
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Debtors
13
27,335
Cash at bank and in hand
192,263
_
219,598
CREDITORS: amounts falling due within
one year
14
96,308
_
NET CURRENTS ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS:amounts falling due after
more than one year
15
PROVISION FOR LIABILITIES
NET ASSETS
CHARITY FUNDS
Restricted funds
16
Unrestricted funds
16
Revaluation
16
TOTAL FUNDS		 2020
£
£
1,982,287
22,376
155,876
_
178,252
100,727
_
123,290
_
2,105,577
304,148
13,702
_
1,787,727
_
60,097
1,686,236
41,394
_
1,787,727
__		 2019
£
2,017,433
77,525
_
2,094,958
308,339
-
_
1,786,619
_
91,094
1,653,709
41,816
_
1,786,619
__

The financial statements were approved and authorised for issue by the Trustees on 25[th] May 2021 and signed on their behalf, by:

Gavin White

Dami Fagade

The notes on pages 20 to 35 form part of these financial statements.

Page 16

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2020
2020
Notes
£
£
£
FIXED ASSETS
Tangible assets
12
1,868,537
Investment in subsidiary undertaking
23
1
_
1,868,538
CURRENT ASSETS
Debtors
13
99,042
139,367
Cash at bank and in hand
136,901
84,463
_
_
235,943
223,830
CREDITORS: amounts falling due within
one year
14
33,548
34,542
_
_
NET CURRENTS ASSETS
202,395
_
TOTAL ASSETS LESS CURRENT LIABILITIES
2,070,933
CREDITORS:amounts falling due after
more than one year
15
298,238
_
NET ASSETS
1,772,695
_
CHARITY FUNDS
Restricted funds
60,097
Unrestricted funds
1,671,204
Revaluation
41,394
_
TOTAL FUNDS
1,772,695
_		 2019
£
1,897,698
1
_
1,897,699
189,288
_
2,086,987
308,339
_
1,778,648
_
91,094
1,645,738
41,816
_
1,778,648
_

The financial statements were approved and authorised for issue by the Trustees on 25[th] May 2021 and signed on their behalf, by:

Gavin White

Dami Fagade

The notes on pages 20 to 35 form part of these financial statements.

Page 17

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Notes
Cash flows from operating activities
Net cash provided by operating activities
18
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowings
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
19		 2020
£
55,565
_
(9,577)
-
_
(9,577)
_
(9,601)
_
(9,601)
_
36,387
155,876
_
192,263
__		 2019
£
3,057
_
(18,362)
39
_
(18,323)
_
(9,101)
_
(9,101)
_
(24,367)
180,243
_
155,876
__

The notes on pages 20 to 35 form part of these financial statements.

Page 18

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES

STATUTORY INFORMATION

King’s Church in Greater Manchester is a private company limited by guarantee registered in England and Wales. The company's registered number and registered office address can be found on the reference and administrative details page. The currency adopted for the preparation of the financial statements is pounds sterling.

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing the accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (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 costs convention as modified by the revaluation of freehold land and buildings. The charity is a public benefit entity.

1.2 Going Concern

The trustees have considered all available information including financial forecasts. Based on these forecasts, the trustees believe that the charitable group can continue in operational existence for at least the next twelve months albeit at a reduced level.

1.3 Basis of consolidation

The financial statements of the charitable company incorporate those of all funds as required by the Charities SORP on a line by line basis.

The group financial statements consolidate those of the charitable company and of its subsidiary undertakings drawn up to 31 August 2020 on a line by line basis. The subsidiary is King’s House Conference (Greater Manchester) Limited.

The company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income and expenditure account.

The income and expenditure account for the year dealt with in the accounts of the company was £33,673 surplus (2019: £ 62,099 deficit) .

The charity has taken advantage of the paragraph 1.11 Section 1, Cash flows, of FRS102 and as such has not shown an individual charity cash flow statement within these financial statements on the basis that it is a qualifying entity and the Consolidated Statement of Cash Flows included within those financial statements include the charity’s own cash flows.

1.4 Company status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

Page 19

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

1.5 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

All monetary donations and gifts are included in full in the statement of financial activities when receivable, provided there are no donor imposed restrictions as to the timing of the related expenditure, in which case recognition is deferred until the precondition has been met.

Donations made under Gift Aid together with the associated income tax recoveries are credited as income when the donations are received.

Income from charitable activities comprises rental income and service charges.

Income from trading activities consist of organising conferences and venue hire. Income relating to conferences is deferred until the conference had taken place.

Investment income comprises interest receivable on cash balances held in interest bearing accounts and is recognised on an accrual basis.

Income from grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been, or are expected to be met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

1.6 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at centrally. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

Page 20

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

1.7 Tangible fixed assets and depreciation

The company has adopted a revaluation model to revalue freehold property whose fair value can be measured reliably. The revaluations are made with sufficient regularity to ensure that the carrying value does not differ materially from that which would be determined using fair value at the end of the reporting period.

The fair value of land and buildings is usually determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity.

Tangible fixed assets are carried at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold property - 1% straight line Plant & machinery - 15% reducing balance Fixtures & fittings - 10% reducing balance Computer equipment - 33% reducing balance Motor vehicles - 25% reducing balance

An amount equal to the excess of the depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the unrestricted fund.

1.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.9 Cash at Bank and in hand

Cash at bank and 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.

1.10 Creditors

Creditors are recognised where the charity has a present obligation from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligations can be measured or estimated reliably.

Page 21

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

1.11 Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.12 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.13 Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year.

1.14 Taxation

The charity is entitled to certain tax exemption in respect of income tax, corporation tax and capital gains tax, but not value added tax. Irrecoverable value added tax is included in the cost of those items to which it relates.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted by the year end and that are expected to apply to the reversal of the timing differences.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that these will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

1.15 Operating leases

Rentals under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

1.16 Government Grants

Government Grants are accounted for on an accrual basis. They are applied to the year in which they relate and in which the expenditure has incurred.

Page 22

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

1.17 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions.

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are detailed below.

Useful list of fixed assets.

In making decisions regarding the depreciation of the tangible fixed assets, management must estimate the useful life of said assets. A change in estimate would result in a change in the depreciation charged to the statement of total comprehensive income in each year. The carrying value of tangible fixed assets is £1,982,287 (2019: £2,017,433) with depreciation of £42,627 (£2019: £46,242) being the charge during the year.

Critical accounting judgements

The trustees believe that critical judgments do not pose a significant risk of causing a material difference to the carrying amounts of assets a liabilities within the next financial year.

2. INCOME FROM DONATIONS

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations
469,171
19,416
Gift aid receivable
85,171
1,624
Grants
-
35,259
_
________
554,342
56,299
_
_
_Total 2019
636,588
6,836

 Total
funds
2020
£
488,587
86,795
35,259
_
610,641
_
643,424
 Total
funds
2019
£
557,394
86,030
-
_
643,424
_

Page 23

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

3. FUNDRAISING INCOME

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Rents & service charges received
-
5,870
USMM income
-
-
_
________
-
5,870
_
_
_Total 2019
-
16,555
_
_
TRADING ACTIVITIES
Unrestricted
funds
2020
£
Trading income
Conference centre income
419,077
Other
-
_
419,077
_
Building Expenses
Conference centre running costs
456,792
Environment, waste & recycling costs
9,959
Fire, alarms & security
3,081
Furnishings & equipment
254
Utilities
8,793
Miscellaneous building costs
976
Service & repairs
3,206
Catering supplies
3,718
_
486,779
_
Net income from trading activities
(67,702)
__		 Total
funds
2020
£
5,870
-
_
5,870
_
16,555
_
Total
funds
2020
£
419,077
-
_
419,077
_
456,792
9,959
3,081
254
8,793
976
3,206
3,718
_
486,779
_
(67,702)
_		 Total
funds
2019
£
6,648
9,907
_
16,555
_
Total
funds
2019
£
580,341
16
_
580,357
_
498,441
10,537
6,093
1,197
8,775
840
3,662
11,756
_
541,301
_
39,056
__

4. TRADING ACTIVITIES

Page 24

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

5. INVESTMENT INCOME

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Interest receivable
134
-
_
________
_Total 2019
184
-
__
_
6.
OTHER INCOME
Group
Group
2020
2019
£
£
Grants received
63,017
-
Other income
15
-
_
_
63,032
-

________
7.
DIRECT COSTS
Church Life Leadership
Mission
£
£
£
Administration expenses
-
-
3,857
Books & media
1,096
-
-
Catering
2,144
-
-
Youth & Big Church Weekend
2,117
-
570
Conference & hospitality
7,768
-
2,221
Leaders’ expenses
2,421
7,070
-
Multimedia costs
-
-
6,276
Mission & outreach
14,566
-
124,645
Homes of Hope expenses
-
-
128,539
Miscellaneous
481
-
2,161
Leadership salaries
-
177,611
-
_
_
__
30,593
184,681
268,269
_
_
__
_Total 2019
77,488
207,212
272,710
_
_
__
Unrestricted funds
30,593
184,681
113,160
Restricted funds
-
-
155,109
__
__
__
30,593
184,681
268,269


 Total
funds
2020
£
134
_
_184
_
Company
2020
£
4,571
15
_
4,571
_
Total
2020
£
3,857
1,096
2,144
2,687
9,989
9,491
6,276
139,211
128,539
2,642
177,611
_
483,543
_
557,410
_
328,434
155,109
__
483,543
 Total
funds
2019
£
184
_
Company
2019
£
-
-
_
_
Total
2019
£
2,130
2,936
7,537
17,029
19,298
4,484
6,684
161,210
128,344
6,328
201,430
_
557,410
__
_
_

Included in Homes of Hope expenses is mortgage interest of £16,084 (2019: £16,625).

Page 25

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. SUPPORT COSTS

Administration expenses
Car parking fees
Telephone
Publicity & flyers
Multi-media costs
Legal & professional fees
Miscellaneous
Bank charges
Staff salaries
National insurance
Pension cost
Depreciation
Site costs
Governance costs (see note 9)
Printing, post & stationery
Loss on disposal of fixed assets		 2020
£
14,524
63
7,590
-
7,701
-
817
4,404
91,648
3,206
2,618
28,065
11,888
10,375
8,784
2,096
_
193,779
_		 2019
£
11,945
256
11,182
7,582
9,323
2,641
3,129
5,656
151,280
9,142
3,623
30,052
25,868
13,490
9,989
39
_
295,197
_

9. GOVERNANCE COSTS

Unrestricted
funds
2020
£
Auditors’ remuneration
5,610
Auditors’ remuneration: other services
4,404
Legal & professional fees
361
_
10,375
_		 Total
funds
2020
£
5,610
4,404
361
_
10,375
_		 Total
funds
2019
£
5,346
5,094
3,050
_
13,490
_

Page 26

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

10. STAFF COSTS

Staff costs were as follows:

Wages & salaries
Termination payments
Social security costs
Other pension costs		 Group
2020
£
602,370
2,786
36,888
14,614
__
656,658
 Group
2019
£
674,037
2,428
34,744
14,317
__
725,526
 Company
2020
£
323,056
-
19,016
9,561
__
351,633
 Company
2019
£
397,064
2,428
28,648
11,337
__
439,477

The average number of persons employed by the company during the year was as follows:

Pastoral team and administration 2020
No.
56
 2019
No.
52

No employee received remuneration mounting to more than £60,000 in either year.

The total emoluments and employee benefits of the key management personnel were £180,448 (2019: £201,430). The key management personnel of the charity comprise the members of the leadership team.

Details of remuneration and benefits received by the trustees are disclosed more fully in note 22.

11. TRUSTEES' REMUNERATION

During the year retirement benefits were accruing to 1 Trustee (2019: 3) in respect of defined contribution pension schemes.

The pension contributions with respect to the trustees amounted to £860 (2019: £1,933).

Page 27

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

12.
TANGIBLE FIXED ASSETS
Freehold
Plant and
Fixtures
Computer
property
machinery and fittings
equipment
Group
£
£
£
£
Cost or valuation
At 1 September 2019
1,830,000
136,974
536,708
81,976
Additions
-
-
8,577
-
Disposals
-
-
(6,767)
-
_
________
________
________
At 31 August 2020
1,830,000
136,974
538,518
81,976
_
_
_
_
Depreciation
At 1 September 2019
18,300
123,067
354,135
72,723
Charge for the year
18,300
2,086
18,906
3,085
Disposals
-
-
(4,671)
-
_
_
_
_
At 31 August 2020
36,600
125,153
368,370
75,808
_
_
_
_
Net book value
At 31 August 2020
1,793,400
11,821
170,148
6,168
_
_
_
_
_At 31 August 2019
1,811,700
13,907
182,573
9,253
_
________
________
________
Freehold
Plant and
Fixtures
Computer
property
machinery and fittings
equipment
Company
£
£
£
£
Cost or valuation
At 1 September 2019
1,830,000
136,974
340,910
63,813
Additions
-
-
-
-
Disposals
-
-
(6,767)
-
_
_
_
_
At 31 August 2020
1,830,000
136,974
334,143
63,813
_
_
_
_
Depreciation
At 1 September 2019
18,300
123,067
270,654
61,978
Charge for the year
18,300
2,086
6,817
612
Disposals
-
-
(4,671)
-
_
_
_
_
At 31 August 2020
36,600
125,153
272,800
62,590
_
_
_
_
Net book value
At 31 August 2020
1,793,400
11,821
61,343
1,223
_
_
_
_
_At 31 August 2019
1,811,700
13,907
70,256
1,835



 Motor
Vehicles
£
-
1,000
-
_
1,000
_
-
250
-
_
250
_
750
_
-
_
Motor
Vehicles
£
-
1,000
-
_
1,000
_
-
250
-
_
250
_
750
__
-
 Total
£
2,585,658
9,577
(6,767)
_
2,588,468
_
568,225
42,627
(4,671)
_
606,181
_
1,982,287
_
2,017,433
_
Total
£
2,371,697
1,000
(6,767)
_
2,365,930
_
473,999
28,065
(4,671)
_
497,393
_
1,868,537
__
1,897,698

King’s House was revalued on a “fair value” basis at £1,350,000 by Messrs. Jonathan Harrison BSc (Hons) MRICS and Paul Lowe BA Hons PGCertSurv MRICS on behalf of Roger Hannah Chartered Surveyors on 13th May 2019.The properties at Ford Lane and Bowland Road were valued by Bergins Estate Agents on 7[th] May 2019 at an estimated value of £315,000 and £165,000 respectively. The historical cost of land and buildings included in the above at a valuation is £4,267,727 (2019: £4,267,727).

Page 28

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

13. DEBTORS

DEBTORS
Group Group Company Company
2020 2019 2020 2019
£ £ £ £
Trade debtors 4,042 4,660 - -
Amounts owed by group undertaking - - 86,027 126,027
Other debtors 2,299 4,046 2,083 4,046
Prepayments & accrued income 20,994 13,670 10,932 9,294
__ __ __ __
27,335 22,376 99,042 139,367
__ __ __ __

Included within other debtors due within one year is a cycle to work scheme loan to Dami Fagade, a Trustee, amounting to £205 (2019: £nil).

Also included in other debtors are amounts due from church members of £233 (2019: £2,970) which are provided on concessionary terms with no fixed terms of repayment and no interest.

14. CREDITORS: amounts falling due within one year

Group Group Company Company
2020 2019 2020 2019
£ £ £ £
Bank loan 9,601 9,100 9,601 9,100
Trade creditors 425 - - -
Other taxation & social security 33,708 45,914 4,838 6,479
Other creditors 1,908 5,146 1,199 4,048
Accruals & deferred income 50,666 40,567 17,910 14,915
__ __ __ __
96,308 100,727 33,548 34,542
__ __ __ __
Deferred income
Brought forward at 1stSeptember 2019 11,929
Utilised in the year (11,747)
Received in the year 15,143
__
Carried forward at 31stAugust 2020 15,325

__ Deferred income consists of deposits paid for hire of conference centre.

15. CREDITORS: amounts falling due after more than one year

Group Group Company Company
2020 2019 2020 2019
£ £ £ £
Bank loan 273,238 283,339 273,238 283,339
Other loan 25,000 25,000 25,000 25,000
Other taxation and social security 5,910 - - -
__ __ __ __
304,148 308,339 298,238 308,339
__ __ __ __

Page 29

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

15. CREDITORS: Amounts falling due after more than one year (continued)

Creditors include amounts not wholly repayable within 5 years as follows:

£
Repayable by instalments		 Group
2020
£
250,270
 Group
2019
£
246,938
 Company
2020
£
250,270
 Company
2019
246,938

The charity has a mortgage for the purchase of the property at 21 Ford Lane, Northenden, M22 4WE. At 31 August 2020 the balance on the mortgage is £166,302 (2019: £171,809).

A further advance on the mortgage facility was drawn down in August 2015 to purchase the property at Bowland Road, M23 1LE. At 31 August 2020 the balance on the mortgage is £116,537 (2019: £120,631).

The mortgage loans are secured on the charity's property at King's House, Sidney Street, Manchester, M1 7HB and repayable over 25 years.

The loan of £25,000 provided by the James McNabb Trust is secured on the property at 21 Ford Lane. The loan is interest free and repayable on the sale of the property.

16. STATEMENT OF FUNDS

STATEMENT OF FUNDS – CURRENT YEAR

Balance at
1 September
2019
£
Unrestricted funds
General
1,653,709
Revaluation
41,816
_
1,695,525
_
Restricted funds
Homes of Hope
49,488
Building fund
41,606
Revolution Youth
-
_
91,094
_
Total of funds
1,786,619
 Expenditure/
Income
taxation
£
£
1,054,406
(1,022,698)
-
-
_
_
1,054,406
(1,022,698)
_
_
74,447
(128,538)
-
-
50,062
(26,571)
_
_
124,509
(155,109)
_
_
1,178,915
(1,164,101)

 Balance at
Transfers
31 August
in/(out)
2020
£
£
819
1,686,236
(422)
41,394
_
_
397
1,727,630
_
_
4,603
-
(5,000)
36,606
-
23,491
_
_
(397)
60,097
_
_
-
1,787,727

Page 30

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16. STATEMENT OF FUNDS (continued)

STATEMENT OF FUNDS – PRIOR YEAR

Balance at
1 September
2018
£
Unrestricted funds
General
1,747,610
Revaluation
42,237
_
1,789,847
_
Restricted funds
Homes of Hope
27,620
Salford building fund
780
Healing conference
1,952
Longsight & Swinton building
41,606
Big Church Weekend
-
USMM
-
KCFC
-
_
71,958
_
Total of funds
1,861,805
 Income Expenditure
£
£
1,230,637 (1,327,282)
-
-
_
_
1,230,637 (1,327,282)
_
_
76,159
(54,291)
-
-
-
-
-
-
1,488
(2,419)
9,923
(9,401)
515
(515)
_
_
88,085
(66,626)
_
_
1,318,722 (1,393,908)

 Balance at
Transfers 31 August
in/(out)
2019
£
£
2,744
1,653,709
(421)
41,816
_
_
2,323
1,695,525
_
_
-
49,488
(780)
-
(1,952)
-
-
41,606
931
-
(522)
-
-
-
_
_
(2,323)
91,094
_
_
-
1,786,619

Page 31

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS – CURRENT YEAR

Unrestricted Restricted Total
funds funds funds
2020 2020 2020
£ £ £
Tangible fixed assets 1,982,287 - 1,982,287
Current assets 159,501 60,097 219,598
Creditors due within one year (96,308) - (96,308)
Creditors due in more than one year (304,148) - (304,148)
Provision for liabilities (13,702) - (13,702)
__ __ __
1,727,630 60,097 1,787,727
__ __ __

Analysis of net assets between funds – prior year

Unrestricted Restricted Total
funds funds funds
2018 2018 2018
£ £ £
Tangible fixed assets 2,017,433 - 2,017,433
Current assets 87,158 91,094 178,252
Creditors due within one year (100,727) - (100,727)
Creditors due in more than one year (308,339) - (308,339)
__ __ __
1,695,525 91,094 1,786,619
__ __ __

Page 32

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

18. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Group Group
2020 2019
£ £
Net (expenditure)/income for the year (as per Statement of Financial
Activities) 1,108 (75,186)
Adjustment for:
Depreciation charges 42,627 46,242
Loss on disposal of fixed assets 2,096 -
Decrease/(increase) in debtors (4,959) 50,052
Increase/(decrease) in creditors 991 (18,051)
Increase in provision for liabilities and charges 13,702 -
__ __
55,565 3,057
__ __
19. ANALYSIS OF CASH AND CASH EQUIVALENTS
Group Group
2020 2019
£ £
Cash at bank & in hand
192,263 155,876
__ __
Total 192,263 155,876
__ __

20. Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £14,614 (2019: £14,317).

Page 33

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

21. OPERATING LEASE COMMITMENTS

At 31 August 2020 the total of the group’s future minimum lease payments under non-cancellable operating leases was:

2020 2019
Group £ £
Amounts payable:
Within 1 year 5,655 6,071
Between 1 and 5 years 6,900 12,420
__ __
Total 12,555 18,491
__ __

At 31 August 2019 the company had annual commitments under con-cancellable operating leases as follows:

2020 2019
Company £ £
Amounts payable:
Within 1 year 5,520 5,790
Between 1 and 5 years 6,900 12,420
__ __
Total 12,420 18,210
__ __

22. TRANSACTIONS WITH TRUSTEES AND RELATED PARTIES

During the year one of the trustees (2019: 3) were engaged in spiritual leadership and ministry in the church and, in accordance with the Memorandum & Articles of Association, were paid salaries during the year as follows:

2020 2019
Salary Employer NI Pension Total Total
£ £ £ £ £
David Emmett - - - - 30,652
Gavin White - - - - 9,674
Dami Fagade (incl. spouse) 41,226 2,459 1,237 44,922 44,758
__ __ __ __ __
41,226 2,459 1,237 44,922 85,084
__ __ __ __ __

During the year the charity received donations from all trustees and their spouses amounting to £84,266 (2019: £85,938).

Two trustees were reimbursed catering expenses of £518 (2019: £nil) during the year.

Page 34

KING’S CHURCH IN GREATER MANCHESTER

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

23. INVESTMENT IN SUBSIDIARIES

Cost At 1 September 2019 and 31 August 2020

----- Start of picture text -----
Company Company
2020 2019
1 1
__ ____
----- End of picture text -----

King’s House Conference (Greater Manchester) Ltd

Subsidiary name King’s House Conference (Greater Manchester) Ltd Country of incorporation England Company registration number 07205595 Basis of control Ownership of the share capital of the company Equity shareholding % 100% Total assets as at 31 August 2020 £ 183,433 Total liabilities as at 31 August 2020 £ 154,698 Total equity as at 31 August 2020 £15,033 Income for the year ended 31 August 2020 £477,557 Expenditure for the year ended 31 August 2020 £456,791 Taxation £13,706 Profit for the year ended 31 August 2020 £7,060

King’s House Conference (Greater Manchester) Ltd

24. APB ETHICAL STANDARD – PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other entities of our size and nature, we use our auditors to assist in the preparation of the financial statements.

Page 35