## ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
## Miracle Street UK
(A company limited by guarantee) Charity registration number: 1123158 Company registration number: 06483627
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
## **MIRACLE STREET UK**
## **CONTENTS**
|Legal and Administrative Information|1|
|---|---|
|Trustees' Report|2 to 4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Financial Statements|8 to 13|
## **MIRACLE STREET UK**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Charity Registration** 1123158 **Number Company Registration** 06483627 **Number Trustees** Mr G Stupple Mr P F Kelly Dr T Maschio Dr N A Osborne Mr S Dugdale Mr W R Kennedy **Registered address** Middle Brook Centre Middle Brook Street Winchester Hampshire SO23 8DQ **Bankers** Barclays Bank plc 1 Churchill Place London E14 5HP **Independent Examiner** G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
Page 1
## **MIRACLE STREET UK**
## **TRUSTEES' REPORT**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2021.
## **Structure, governance and management**
## _**Nature of governing document**_
The company was incorporated on 25 January 2008, is registered as a charity and is constituted as a company limited by guarantee and is therefore governed by a Memorandum and Articles of Association.
## _**Recruitment and appointment of trustees**_
Appointment of the Directors is governed by the Articles of Association of the Company. The Board of Directors is authorised to appoint new directors according to the agreed guidelines for the appointment of new trustees. A new trustee would receive a copy of the previous year’s annual report and accounts and a copy of the Charity Commission leaflet ‘The Essential Trustee: What You Need to Know’.
## _**Organisational structure**_
The Board of Trustees meets quarterly to administer the charity. The trustees are also the directors of the company for charity purposes. The trustees carry the responsibility for the charity in terms of financial stability and the implementation of the charitable aims and objectives.
The board have also appointed Steve Lee who is retained on a professional basis to oversee the outworking of the charity's activities.
## _**Risk management**_
The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
## **Objectives and activities**
## _**Objects and aims**_
The objects of the company are:
(a) to advance the Christian faith in accordance with the statement of beliefs appearing in the schedule to the articles hereto attached in such parts of the United Kingdom or the world as the trustees may, from time to time, think fit and other such purposes which are exclusively charitable according to the law of England & Wales and are connected with the charitable work of the charity.
(b) To promote local communities by associating with the local authorities, voluntary organisations and inhabitants in order to advance education and provide facilities in the interests of the social welfare for recreation and leisure time occupation with the object of improving the condition of life for the said inhabitants in such parts of the United Kingdom and the world as the trustees may, from time to time, determine.
Page 2
## **MIRACLE STREET UK**
## **TRUSTEES' REPORT**
## _**Public benefit**_
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## **Achievements and performance**
## _**Review of activities**_
Over recent months we have developed the online element of our ministry significantly. We now produce evangelistic short films of various links that are used by many churches and promoted across Social Media.
The COVID-19 pandemic has presented the church with its greatest challenge and greatest opportunity in decades and Miracle Street has been well positioned to meet the opportunity.
It is envisaged that over the next year we will return to elements of the work that were suspended by the lockdown whilst continuing to grow the areas that have flourished throughout this crisis.
In addition to the media side of our work, we run regular events for men called Terrain which are focused around the battlefield sites of World War II in southern England and northern France. The gatherings create opportunities to get men together to discuss issues of ‘Life, God & Faith’ in a unique environment.
## **Financial review**
Income for the year amounted to £84,257 (2020 - £84,162) and expenditure £69826 (2020 - £75,078). The surplus of £14,431 was added to funds brought forward, resulting in a year end unrestricted fund balance of £26,913.
## _**Policy on reserves**_
We remain committed in trying to create a reserve equal to 3 months of the running expenses of the charity and are making inroads into that plan.
## _**Principal funding sources**_
There are three main sources of income:
(a) General donations: These are from individuals, churches and businesses that believe in and support the work.
(b) Events donations: These are specific donations that are made from churches that relate to events we run alongside them.
(c) Stage hire income: These are amounts we invoice for the hire of the stages that help us underwrite the costs of running the charity’s work.
The money that is donated to us and we generate from income covers the costs of running our various events and the funding the costs of our media production.
Page 3
## **MIRACLE STREET UK**
## **TRUSTEES' REPORT**
## _**Investment policy and objectives**_
The Memorandum and Articles of Association give authority for the directors/trustees to hold property and securities on behalf of the charity, including such assets as were acquired from the unincorporated charity as referred to in the accounts.
## _**Going concern**_
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of Miracle Street UK for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
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 charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The annual report was approved by the trustees of the charity on 17 November 2021 and signed on its behalf by:
......................................... Mr S Dugdale Trustee
Page 4
## **MIRACLE STREET UK**
## **INDEPENDENT EXAMINER'S REPORT**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 6 to 13.
## **Respective responsibilities of trustees and examiner**
As the charity’s trustees of Miracle Street UK (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 Miracle Street UK 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:
1. accounting records were not kept in respect of Miracle Street UK as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. 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
4. 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.
...................................... G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
17 November 2021
Page 5
## **MIRACLE STREET UK**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021**
|**Note**
**Unrestricted**
**funds**
**£**
**Income and Endowments from:**
Donations and legacies
3
84,257
Total income
84,257
**Expenditure on:**
Charitable activities
4
69,826
Total expenditure
69,826
Net income
14,431
Net movement in funds
14,431
**Reconciliation of funds**
Total funds brought forward
12,482
Total funds carried forward
9
26,913|**Total**
**2021**
**£**
84,257
84,257
69,826
69,826
14,431
14,431
12,482
26,913|**Total**
**2020**
**£**
84,162|
|---|---|---|
|||84,162|
|||75,078|
|||75,078|
|||9,084|
|||9,084
3,398|
|||12,482|
The notes on pages 8 to 13 form an integral part of these financial statements. Page 6
## **MIRACLE STREET UK**
## **REGISTERED NUMBER: 06483627**
## **BALANCE SHEET AS AT 31 MARCH 2021**
|**Note**
**Fixed assets**
Tangible assets
6
**Current assets**
Debtors
7
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
8
**Net current assets**
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
9|**2021**
**£**
3,487
218
24,048
24,266
(840)
23,426
26,913
26,913
26,913|**2020**
**£**
497
441
12,384|
|---|---|---|
|||12,825
(840)|
|||11,985|
|||12,482|
|||12,482|
|||12,482|
For the financial year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 6 to 13 were approved by the trustees, and authorised for issue on 17 November 2021 and signed on their behalf by:
......................................... Mr S Dugdale Trustee
The notes on pages 8 to 13 form an integral part of these financial statements. Page 7
## **MIRACLE STREET UK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **1 Charity status**
The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
Miracle Street UK meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Income and endowments**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Page 8
## **MIRACLE STREET UK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## _**Donations and legacies**_
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
## _**Gift aid**_
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Tangible fixed assets**
Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
|**Asset class**|**Depreciation method and rate**|
|---|---|
|Furniture and equipment|25% on cost|
|Main stage|25% on cost|
|Mobile stage|10% on cost|
Page 9
## **MIRACLE STREET UK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **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.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Liabilities**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.
## **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.
## **3 Income from donations and legacies**
|Donations and legacies;
Donations from companies, trusts and
similar proceeds
Gift aid reclaimed|**Unrestricted**
**funds**
**General**
**£**
81,499
2,758
84,257|**Total**
**2021**
**£**
81,499
2,758
84,257|**Total**
**2020**
**£**
80,432
3,730|
|---|---|---|---|
||||84,162|
Page 10
## **MIRACLE STREET UK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **4 Expenditure on charitable activities**
|Events and activities
Stage costs
Travel costs
Office and premises
Trustee meetings
Independent examination
Depreciation, amortisation and other
similar costs|**Unrestricted**
**funds**
**General**
**£**
48,000
8,389
996
9,942
-
840
1,659
69,826|**Total**
**2021**
**£**
48,000
8,389
996
9,942
-
840
1,659
69,826|**Total**
**2020**
**£**
48,891
6,676
8,949
8,507
206
840
1,009|
|---|---|---|---|
||||75,078|
## **5 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
Page 11
## **MIRACLE STREET UK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **6 Tangible fixed assets**
|**6 Tangible fixed assets**||||||
|---|---|---|---|---|---|
|**Furniture**
**and**
**equipment**
**£**
**Main stage**
**£**
**Cost**
At 1 April 2020
38,761
150,000
Additions
4,649
-
At 31 March 2021
43,410
150,000
**Depreciation**
At 1 April 2020
38,264
150,000
Charge for the year
1,659
-
At 31 March 2021
39,923
150,000
**Net book value**
At 31 March 2021
3,487
-
At 31 March 2020
497
-
**7 Debtors**
Accrued income
**8 Creditors: amounts falling due within one year**
Accruals|**Main stage**
**£**
150,000
-||**Mobile**
**stage**
**£**
20,000
-||**Total**
**£**
208,761
4,649
213,410
208,264
1,659
209,923
3,487
497
**2020**
**£**
441|
||150,000||20,000|||
||150,000
-||20,000
-|||
||150,000||20,000|||
||-||-|||
||-||-|||
||||**2021**
**£**
218
**2021**
**£**
840|||
||||||**2020**
**£**
840|
Page 12
## **MIRACLE STREET UK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR YEAR ENDED 31 MARCH 2021**
## **9 Funds**
|**9 Funds**|||||
|---|---|---|---|---|
|**Unrestricted funds**
General
**Unrestricted funds**
General|**Balance at**
**1 April**
**2020**
**£**
12,482
**Balance at**
**1 April**
**2019**
**£**
3,398|**Incoming**
**resources**
**£**
84,257
**Incoming**
**resources**
**£**
84,162|**Resources**
**expended**
**£**
(69,826)
**Resources**
**expended**
**£**
(75,078)|**Balance at**
**31 March**
**2021**
**£**
26,913|
|||||**Balance at**
**31 March**
**2020**
**£**
12,482|
## **10 Analysis of net assets between funds**
|**10 Analysis of net assets between funds**|||
|---|---|---|
|Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets|**Unrestricted**
**funds**
**General**
**£**
3,487
24,266
(840)
26,913
**Unrestricted**
**funds**
**General**
**£**
497
12,825
(840)
12,482|**Total funds**
**at 31**
**March**
**2021**
**£**
3,487
24,266
(840)|
|||26,913|
|||**Total funds**
**at 31**
**March**
**2020**
**£**
497
12,825
(840)|
|||12,482|
Page 13