ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 to 14 |
MIRACLE STREET UK
REFERENCE AND ADMINISTRATIVE DETAILS
Trustees Mr G Stupple (resigned 14 October 2022) Mr P F Kelly (resigned 29 March 2022) Dr T Maschio (resigned 14 October 2022) Dr N A Osborne Mr S Dugdale Mr W R Kennedy (resigned 14 October 2022) Mr Colin Collino (appointed 14 October 2022)
Charity Registration 1123158 Number Company Registration 06483627 Number The charity is incorporated in England. Registered Office Middle Brook Centre Middle Brook Street Winchester Hampshire SO23 8DQ Independent Examiner G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham, Chichester West Sussex PO18 8NF Bankers Barclays Bank plc 1 Churchill Place London E14 5HP
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 2022.
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.
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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
Throughout this last year we have emerged from the effects of the pandemic to recover much of our activity that was suspended. Miracle Street exists, once again, to communicate the message of Jesus -Indoors, Outdoors & Online. All three elements are now flourishing.
Indoors - Steve Lee has spoken in a number of churches regionally and nationally presenting the Gospel. He has also run regular programmes for people who wouldn’t normally attend church. These events and programmes have been carried out in partnership with the local churches and also a national charities that helps people in poverty and financial problems.
Outdoors - We have further developed our outdoor gatherings for men under the name of ‘Terrain’. This has involved regular monthly gatherings for men who are new to the Christian faith and many who would not typically attend a church. We have facilitated further trips to the Normandy Landing Beaches in France. We are also working to create events from our Stage Trailer in Football stadium car parks.
Online - We have produced two weekly short format videos called ‘God In 60 Seconds’ and ‘Dashcam Stories’. Additionally, we have produced many longer format films on location called Big Story and two miniseries’ called ‘Watershed’ and ‘Battlefield’. All our online material is watched by a global audience as well as helping to resource churches with the online presence.
Financial review
Income for the year amounted to £81,982 (2021: £84,257) and expenditure £89,667 (2021: £69,826). The deficit of £7,685 was added to funds brought forward, resulting in a year end unrestricted fund balance of £19,235.
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.
Page 3
MIRACLE STREET UK
TRUSTEES' REPORT
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.
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.
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MIRACLE STREET UK
TRUSTEES' REPORT
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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 the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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 proper accounting records that can 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 trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on 8 December 2022 and signed on its behalf by:
......................................... Mr S Dugdale Trustee
Page 5
MIRACLE STREET UK
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MIRACLE STREET UK
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2022 which are set out on pages 7 to 14.
Responsibilities and basis of report
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:
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accounting records were not kept in respect of Miracle Street UK as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham, Chichester West Sussex PO18 8NF
8 December 2022
Page 6
MIRACLE STREET UK
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 3 81,982 Total income 81,982 Expenditure on: Charitable activities 4 89,667 Total expenditure 89,667 Net (expenditure)/income (7,685) Net movement in funds (7,685) Reconciliation of funds Total funds brought forward 26,938 Total funds carried forward 9 19,253 |
Total 2022 £ 81,982 81,982 89,667 89,667 (7,685) (7,685) 26,938 19,253 |
Total 2021 £ 84,257 |
|---|---|---|
| 84,257 | ||
| 69,826 | ||
| 69,826 | ||
| 14,431 | ||
| 14,431 12,482 |
||
| 26,913 |
The notes on pages 9 to 14 form an integral part of these financial statements. Page 7
MIRACLE STREET UK
(REGISTRATION NUMBER: 06483627) BALANCE SHEET AS AT 31 MARCH 2022
| 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 |
2022 £ 4,601 4,601 453 15,359 15,812 (1,160) 14,652 19,253 19,253 19,253 |
2021 £ 3,487 |
|---|---|---|
| 3,487 | ||
| 218 24,048 |
||
| 24,266 (840) |
||
| 23,426 | ||
| 26,913 | ||
| 26,913 | ||
| 26,913 |
For the financial year ending 31 March 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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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
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The financial statements on pages 7 to 14 were approved by the trustees, and authorised for issue on 8 December 2022 and signed on their behalf by:
......................................... Mr S Dugdale Trustee
The notes on pages 9 to 14 form an integral part of these financial statements. Page 8
MIRACLE STREET UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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.
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MIRACLE STREET UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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 |
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MIRACLE STREET UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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.
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MIRACLE STREET UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
3 Income from donations and legacies
| Donations and legacies; Donations from companies, trusts and similar proceeds Gift aid reclaimed 4 Expenditure on charitable activities Events and activities Stage costs Travel costs Office and premises Independent examination Depreciation, amortisation and other similar costs |
Unrestricted funds General £ 76,908 5,074 81,982 Unrestricted funds General £ 65,176 6,768 7,474 7,755 960 1,534 89,667 |
Total 2022 £ 76,908 5,074 81,982 Total 2022 £ 65,176 6,768 7,474 7,755 960 1,534 89,667 |
Total 2021 £ 81,499 2,758 |
|---|---|---|---|
| 84,257 | |||
| Total 2021 £ 48,000 8,389 996 9,942 840 1,659 |
|||
| 69,826 |
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.
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MIRACLE STREET UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
6 Tangible fixed assets
| Furniture and equipment £ Main stage £ Cost At 1 April 2021 43,410 150,000 Additions 2,648 - Disposals - - At 31 March 2022 46,058 150,000 Depreciation At 1 April 2021 39,923 150,000 Charge for the year 1,534 - Eliminated on disposals - - At 31 March 2022 41,457 150,000 Net book value At 31 March 2022 4,601 - At 31 March 2021 3,487 - 7 Debtors Accrued income 8 Creditors: amounts falling due within one year Trade creditors Accruals |
Main stage £ 150,000 - - |
Mobile stage £ 20,000 - (20,000) - 20,000 - (20,000) - - - 2022 £ 453 2022 £ 200 960 1,160 |
Mobile stage £ 20,000 - (20,000) - 20,000 - (20,000) - - - 2022 £ 453 2022 £ 200 960 1,160 |
Total £ 213,410 2,648 (20,000) 196,058 209,923 1,534 (20,000) 191,457 4,601 3,487 2021 £ 218 |
|
|---|---|---|---|---|---|
| 150,000 | |||||
| 150,000 - - |
|||||
| 150,000 | - | ||||
| - | - | ||||
| - | - | ||||
| 2022 £ 453 2022 £ 200 960 1,160 |
|||||
| 2021 £ - 840 |
|||||
| 840 |
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MIRACLE STREET UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
9 Funds
| 9 Funds | ||||
|---|---|---|---|---|
| Unrestricted funds General General Funds Unrestricted funds General General Funds |
Balance at 1 April 2021 £ 26,938 Balance at 1 April 2020 £ 12,482 |
Incoming resources £ 81,982 Incoming resources £ 84,257 |
Resources expended £ (89,667) Resources expended £ (69,826) |
Balance at 31 March 2022 £ 19,253 |
| Balance at 31 March 2021 £ 26,913 |
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 £ 4,601 15,812 (1,160) 19,253 Unrestricted funds General £ 3,487 24,266 (840) 26,913 |
Total funds at 31 March 2022 £ 4,601 15,812 (1,160) |
|---|---|---|
| 19,253 | ||
| Total funds at 31 March 2021 £ 3,487 24,266 (840) |
||
| 26,913 |
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