## **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST** TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021 Charity number: 1124266 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** ## **Contents** Page number |1 – 6|Trustees’ Annual Report| |---|---| |7|Independent Examiner’s Report| |8|Statement of Financial Activities| |9|Balance Sheet| |10 – 13|Notes to the Financial Statements| Page: 2 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** The Trustees present their annual report and the financial statements of the church for the period ended 31st March, 2020 ## **REFERENCE AND ADMINISTRATIVE INFORMATION** |**Registered charity name:**|Hope Church South Bedfordshire Trust| |---|---| |**Charity registration number:**|1124266| |**Principal office:**|PO Box 4355| ||Dunstable| ||Beds| ||LU6 9EJ| |**Trustees:**|Mr T Thompson| ||Mr N Taylor| ||Mr A Hubbock| ||Mr H Sproson| |**Independent Examiner:**|Mervyn Thomas| ||128 Putnoe Lane| ||Bedford, MK41 8LS| |**Principal Bankers:**|CAF Bank Ltd.| |**OBJECTIVES AND ACTIVITIES**|| **Advancement of Christianity in Bedfordshire and elsewhere. Relief of people in charitable need. To advance education both general and vocational for children and adults within the principles of the Christian faith.** We long to see the area saturated with vibrant Christianity and all people enjoying the benefit and blessing of this. We believe the primary tool in this is building a local church is to be a blessing to its local community, Nation and World. The ‘fuel’ for this is a strong belief in biblical values and the mighty power of the Holy Spirit. A church that reaches out to others and encourages its members in local community engagement. The ultimate out-workings of this should affect every level of society and people from all backgrounds. This year our activities have been greatly affected by government lockdown and managing the risks around Covid for the organisation. This has affected our usual activities but we have worked hard towards our objectives where possible. This includes the following: **Advancement of Christianity.** Sunday meetings online and in person where possible, smaller midweek meetings online, social action, and community outreaches, engaging with other churches online with leaders. **Relief of people in need.** Running the Christians Against Poverty (CAP) training in basic budgeting. Building community to help each other and others-through teaching and in small groups. Representation on Local Council Equalities Forum, active Street Pastors, strong support for the Food Bank, activities and events for the elderly in the community and assisting the council Severe Weather Emergency Provision for people who find themselves homeless. Praying for the sick. Teaching our people, a biblically based, loving concern for our surrounding area and World **Education.** Evangelism, school assemblies - online harvest, CAP money course (helping people budget better), youth programme, teaching each Sunday, training for staff and various courses, marriage courses, and Alpha courses. All the above events are facilitated by staff and several volunteers, many giving time, money, skills, energy and resources to help contribute to their success. We are very grateful for their contribution. Page: 3 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** ## **ACHIEVEMENTS AND PERFORMANCE** ## **Summary of achievements** A lot of what we do is a balance of building structure, encouraging people in our church and reaching out into the community to help others. Some of our activities are for people in our church and their primary goal is to equip and encourage people to go out into the community to help others whereas other activities are directly helping people around us. ## **Major Developments** In October 2020 we moved out of the building we were renting and we are currently holding our Sunday morning meetings in All Saints Church, Tilsworth and online. ## **Ongoing activities** **SUNDAY MORNINGS.** On 22 March 2020 we stopped meeting in person until October 2020 and our meetings were streamed from peoples homes until we moved buildings in October and started broadcasting from there. Through our online meetings and in person meetings our Sunday meetings have continued to encourage people to reach out to others and engage with their neighbourhoods and local community. This was especially shown in Food Bank initiatives and also the number of stories of people praying for people in need. We have found that through streaming our meetings online the number of people who accessed our meetings has increased dramatically and we are now reaching people internationally. This is something we plan to continue. **SMALL GROUPS.** Key elements are to Love God, Love one another and Love others. This year we have started meeting daily for online Bible studies and prayer meetings, as well as continuing our 18-30s group online. We also relaunched our ladies and mens breakfasts as an online meeting, which enabled us to pick up more people than we were before. The WhatsApp groups for the ladies and mens breakfasts have enabled people to share concerns and prayer requests more openly. **PRAYER MEETINGS.** Prayer is vital to what we do. In March 2020 we initiated daily online prayer meetings which continue to date. In these prayer meetings we have prayed for many people and situations as well as praying for Covid related issues in the wider community. **BAPTISMS.** We believe in Believer’s Baptism, we had no baptisms this year due to Covid. **YOUTH GROUP.** Due to Covid restrictions our youth group was not able to meet together this year but as restrictions are lifted we are looking at how we start these meetings again. **CATALYST FESTIVAL.** Did not occur in person this year due to Covid restrictions but there was an online festival **COUNCIL EQUALITIES FORUM.** We continued to give input to the council from a Christian perspective. Helping give voice to some of the neediest minorities in Central Bedfordshire and give compassionate input to the decision making process. These meetings were online due to Covid restrictions. ## **Special initiatives** **TRAINING.** We have spent time training people in using equipment and software to help with streaming meetings and for people to join in with online meetings. Encouraging Christians to engage in activity in their day to day life. Also received leadership input in regional Catalyst hubs. Page: 4 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** ## **Joint work with other organisations** This has been a significant way forward in reaching out; it enables us to do more together than we can apart. We have given a strong lead in the following involving staff and volunteers. **STREET PASTORS.** This year street pastors did not operate locally but the team met online. **DUNSTABLE FOODBANK.** We continue to help to financially support Foodbank. **DUNSTABLE PASTORS PRAYER.** Continued to give leadership to this meeting which gathers leaders from 12 different churches and is focussed on Church Leaders supporting each other’s initiatives through prayer. During this year these meetings moved to online meetings and during lockdown changed from monthly to weekly. **SEVERE WEATHER EMERGENCY PROVISION.** We continued to join council meetings regarding homelessness online throughout the year. In addition to this we provided equipment and food to homeless people housed in the first lockdown. A member of our congregation was awarded the Sheriff of Bedfordshire Citizens Award for this work. ## **FINANCIAL REVIEW** ## **Income generation** The church’s total income for the year was £52,711 (2020: £60,795). From March 2020 we lost £4,605 income from room hire and also we lost income from Sunday cash and cheque collections, however our income from people giving online increased, this is due to new people joining our church and some people moving from giving cash to giving online. In total there was a reduction of £4,694 in the total of donations we received in comparison to the year before. We also received £2525 into a restricted hardship fund to help people in need ## **Expenditures** Total expenditures were £50,996 (2020: £65,507). We had some rent free months due to our landlord which enabled us to save £8,132. We also furloughed one member of staff for 2 months. This year extra expenditure has included: storage after moving building, computer equipment and software for online meetings ## **Funds** Overall funds are £11,095(2020: £9,380) We are confident the Charity remains a going concern ## **Reserves policy** The church holds unrestricted and restricted funds. Transfers are made from unrestricted to restricted funds in order to prevent restricted funds from going into deficit. Our overall policy for unrestricted funds is only to increase reserves above a minimum threshold necessary to operate the organisation (not more than 3 months expenditure) or where specific projects are being planned for subsequent years. ## **Future Developments in Light of Covid19** At the end of the financial year we were faced with UK lock down restrictions from 16/3/20. Trustees faced with a lengthy period of uncertainty made the difficult decisions to lighten financial pressures: - 1) to move out of our building in October following a notice period. A local Anglican Church has since offered us use of their building in the future with far less overheads 2) We decided to furlough one member of staff (May and June) - 3) Plus purchase of additional equipment and software to enable online meetings and services Page: 5 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** We also had a break in rent payments by our landlord from 26 March to September which enabled us to manage financially. Our main losses were regular room hire and weekly cash and cheque giving ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** We are part of the CATALYST NETWORK OF CHURCH (which is Part of NEWFRONTIERS) this links us with churches nationally and internationally. CATALYST is a network of Churches Internationally with a common set of values. This association helps us as a local church through training events and regular leadership meetings to be focused on reaching out to our community and the wider World. As a Trust, we operate our child protection policy through thirtyone:eight (formally known as CCPAS) and this involves training for trustees and also those involved in direct work with children, young people and vulnerable adults and advice should it be required. ## **Governing document** Hope Church South Bedfordshire Trust has a foundational trust document dated 17th December 2006. ## **Appointment of responsible individuals and elders** The Church is governed by its responsible individuals and Elders Responsible Individuals and Elders are closely involved in the church’s operations prior to appointment and are appointed according to their ability to lead the church and the skills they bring to the post. Existing Responsible Individuals, Elders and new appointees have a good knowledge of the operation of the Church prior to appointment. Responsible Individuals and Elders are aware of the legal requirements in connection with the charity.. New appointees are supported in their posts by existing appointees. New appointees are also provided with latest financial statements and guidance from the Charity Commission, including the Charity Commission guide ‘The Essential Trustee’. ## **Risk management** The Trustees have assessed the major risks to which the church is exposed, in particular those relating to the operations and finances of the church. The Trustees are satisfied that systems are in place to mitigate their exposure to major risk. ## **TRUSTEES’ RESPONSIBILITIES** The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The Trustees/Directors are responsible for keeping adequate accounting records that are sufficient to show and explain transactions and disclose with reasonable accuracy at any time the financial position of the trust and to enable them to ensure that the financial statements comply with the charities SORP They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ON BEHALF OF THE TRUSTEES Nigel Taylor **Nigel Taylor** **Dated: 29 May 2021** Page: 6 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** ## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF HOPE CHURCH South Bedfordshire TRUST** on the accounts for the year to **31[ st ] March 2021** as set out on pages 8 – 13 in this document ## **Respective responsibilities of trustees and examiner** The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. ## **Independent examiner's statement** It is my responsibility to: - examine the accounts under section 145 of the Charities Act, - to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and to state whether particular matters have come to my attention. My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below. In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that in, any material respect, the requirements: - 1) to keep accounting records in accordance with section 130 of the Charities Act; and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met; or - 2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. I wish to state that I am independent of the Trustees/Directors of the company having resigned that role recently. I have sought advice from the Charity Commission who have confirmed I can serve as the Independent Examiner, having no other declaration of interest. Signed: Mervyn Thomas 128 Putnoe Lane Bedford MK41 8LS Dated: 25/05/2021 Page: 7 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** ## **STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31st. March 2021** |**Note**
**Income from:**
Voluntary Income
Activities for generating
funds
Total
**3**
**Expenditures**
Expenditure on raising
funds:
Charitable Expenditure
**Total Expenditure**
4
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
6|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Capital**
**fund**
**2021**
**2020**
**£**
**£**
**£**
**£**
**£**| |---|---| ||| ||48,928
2,896
51,824
53,342| ||887
-
-
887
7,455| ||**49,815**
**2,896**
**-**
**52,711**
**60,797**| ||| ||| ||30
-
-
30
464| ||50,473
83
410
50,966
65,043| ||**50,503**
**83**
**410**
**50,996**
**65,507**| ||| ||**(688)**
**2,813**
**(410)**
**1,715**
**(4,710)**| ||336
(336)
-
-
-| ||**(352)**
**2,477**
**(410)**
**1,715**
**(4,710)**| ||| ||| ||8,204
766
410
9,380
14,090| ||**7,852**
**3,243**
**-**
**11,095**
**9,380**| ||| Page: 8 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** ## **BALANCE SHEET at 31st. March 2021** |Note
s
**Fixed assets**
5
Tangible assets
**Total fixed assets**
**Current assets**
Cash at bank and in hand
**Total current assets**
**Total net assets**
**Charity Funds**
Capital fund
Restricted income funds
Unrestricted funds
**Total funds**
6|
**Unrestricted**
**funds**
**Restricted**
**income funds**
**Endowment**
**funds**
**2021**
**2020**
**£**
**£**
**£**
**£**
**£**| |---|---| ||-
-
-
-
410| ||**-**
**-**
**-**
**-**
**410**
7,852
3,243
-
11,095
8,970
**7,852**
**3,243**
**-**
**11,095**
**8,970**
**7,852**
**3,243**
**-**
**11,095**
**9,380**| ||-
-
410| ||3,243
3,243
336| ||7,852
7,852
8,634
**7,852**
**3,243**
**-**
**11,095**
**9,810**| ||| ## **Signed on behalf of the trustees:** Nigel Taylor Dated: 29 May 2021 The notes on pages 10 to 13 form part of these financial statements. Page: 9 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **1 BASIS OF PREPARATION** ## **1.1 Basis of accounting** These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The accounts have been prepared in accordance with: the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). and with the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. ## **1.2 Going concern** The Charity is a going concern. Income generation through members’ donations is maintaining adequate reserves and restrictive funds are adequate. ## **1.3 Change of accounting policy** The accounts present a true and fair view and the accounting policies adopted are those outlined in note 2. ## **1.4 Changes to accounting estimates** No changes to accounting estimates have occurred in the reporting period (3.46 FRS 102 SORP). ## **2. ACCOUNTING POLICIES** The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period. ## **2.1 Basis of preparation of financial statements** The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011. ## **2.2 Fund accounting** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the church. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal. Transfers are made from unrestricted to restricted funds as necessary to prevent restricted funds from going into deficit. The Endowment or Capital fund is to hold Church Property. ## **2.3 Incoming resources** All incoming resources are included in the Statement of Financial Activities (SoFA) when the church becomes entitled to the income, it is more likely than not that it will receive the resources and the amount can be quantified with reasonable accuracy. Voluntary income is received by way of donations and gifts and is included in full in the SoFA when receivable. Grants are included in the SoFA when the general income recognition criteria above are met and in the case of performance related grants income is recognised to the extent that the specified goods or services have been provided. Donated services and facilities are included at the value to the church where this can be measured reliably. The value of services provided by volunteers has not been included in these accounts. Investment income is included when received. ## **2.4 Resources expended** Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT that cannot be fully recovered, which is reported as part of the expenditure to which it relates. Page: 10 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** 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. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the church (as a charitable company) and include the audit fees and costs linked to the church’s legal constitution. ## **2.5 Fixed assets** Depreciation is provided at rates calculated to write off the cost of fixed assets less their estimated residual value, over their expected useful lives on the following bases: Equipment and fittings: 15% per annum on cost ## **2.6 Pension costs** Employees of the church are entitled to join a defined contribution pension scheme. The church contribution is limited to the contributions disclosed in note 3. ## **2.7 Debtors** Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received. ## **2.8 Creditors** Creditors (including accruals) are recognised when due at the balance sheet date. |**3 ANALYSIS OF INCOME**|| |---|---| ||**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Capital**
**Funds**
**Total Funds**
**2021**
**Total Funds**
**2020**
**£**
**£**
**£**
**£**
**£**
43,621
2,896
46,517
45,722
5,307
5,307
7,620| |**Voluntary Income**|| |Donations|| |Gift Aid|| |**Total Voluntary Income**|**48,928**
**2,896**
**-**
**51,824**
**53,342**| |**Activities for generating funds**|| |Room Hire|-
7,455| |Government Grants|887
887| |**Total Activities for generating**
**Funds**|**887**
**-**
**-**
**887**
**7,455**| |**Grand Total Incoming Resources**|**49,815**
**2,896**
**-**
**52,711**
**60,797**| Page: 11 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** ## **4 ANALYSIS OF EXPENDITURE** |**Expenditure on raising funds**|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Capital**
**Funds**
**Total Funds**
**2020**
**Total Funds**
**2019**
**£**
**£**
**£**
**£**
**£**
30
-
-
30
464| |---|---| ||| |Website and Publicity|| |**Total expenditure on raising funds**|| |**Expenditure on Charitable**
**Activities**|**30**
**-**
**-**
**30**
**464**| |Employee Salaries|31,222
-
-
31,222
36,355
2,752
-
-
2,752
2,752
5,908
-
-
5,908
-
6,340
-
-
6,340
16,951
2,434
-
-
2,434
678
-
410
410
432
557
83
-
640
6,615
1,260
-
-
1,260
1,260| |Pension Contributions|| |Employer NI|| |Premises|| |Administration Costs|| |Depreciation|| |Church Ministry|| |Donations|| |**Total charitable activities**|**50,473**
**83**
**410**
**50,966**
**65,043**| ## **4.3 Trustees Disclosures** Mr Taylor, a Trustee, receives remuneration as Pastor of the Church. One other person was employed by the Trust.. No trustee has received expenses in connection with trustee related matters. ## **5. Fixed Assets** ||**Equipment**
**Total**| |---|---| |**Cost**|**£**
**£**| |Brought Forward|3,179
3,179| |**Carried Forward**|**3,179**
**3,179**| ||| |**Depreciation**|| |Brought Forward|2,769
2,337| |Depreciation in the year|410
410| |**Carried Forward**|**3,179**
**2,747**| ||| |**Net Fixed Assets**|| |Net Book Value at March 2020|410
842| |**Net Book Value at March 2021**|**-**
**432**| Page: 12 **HOPE CHURCH SOUTH BEDFORDSHIRE TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2021** ## **6. CHARITY FUNDS** ## **6.1 Details of All Funds with movements during the CURRENT reporting period 2020** ||**Fund**||||**Fund**| |---|---|---|---|---|---| ||**balances**||||**balances**| ||**brought**||||**carried**| |**Fund names**|**forward**|
**Income**|**Expenditure**|
**Transfers**|
**forward**| |**Unrestricted Funds**|**£**|
**£**|
**£**|
**£**|
**£**| |General Church|8,204|
49,815|
(50,503)|
336|
7,852| |**Restricted Funds**|-|
-|
**-**|
**-**|
-| |Building Fund|336|
-|
-|
(336)|
-| |Youth|-|
370|
-||370| |Hardship|430|
2,526|
**(83)**||2,873| |**Capital Fund**|410|
**-**|
**(410)**||-| |**Total Funds**|**9,380**|
**52,711**|
**(50,996)**|
**-**|
**11,095**| ## **6.2 Transfers between funds in the CURRENT reporting period.** |**From**|**To**|**Amount**|
**Reason**| |---|---|---|---| ||||Residual used general| |Building Fund|General Fund|336|
property| Page: 13