**Charity Registration No. 1125080**
**Company Registration No. 06271275 (England and Wales)**
## **VALLEY CHURCH**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020**
## **VALLEY CHURCH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustee's**|Reverend E J Carter|
|---|---|
||Mr J P Street|
||Mr D A Scholes|
||Mr R Sellars|
||Ms C Greaves|
|**Secretary**|Mr J P Street|
|**Charity number**|1125080|
|**Company number**|06271275|
|**Registered office**|Tenterhill Farm|
||Ashley Lane|
||Goosnargh|
||Preston|
||Lancashire|
||England|
||PR3 2EE|
|**Independent examiner**|Jerroms|
||Lumaneri House|
||Blythe Gate|
||Blythe Valley Park|
||Solihull|
||West Midlands|
||B90 8AH|
## **VALLEY CHURCH**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 13|
## **VALLEY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The Trustee's present their report and financial statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
To advance the Christian faith in accordance with the Statement of Beliefs appearing in the Schedule hereto Lancashire and in such other parts of the United Kingdom or the world as the Trustees may from time to time think fit and to fulfil such other purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the Charity.
To relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind, including through the provision of counselling and support in Lancashire and in such other parts of the United Kingdom or the world as the Trustees from time to time may think fit.
## **Charity Aims**
- To advance the Christian Faith
- To educate people in the Christian Faith
- To bring support and relief to persons in situations of need, hardship, distress, who are aged or sick.
## **Who Benefits?**
- The church congregation
- Preston, South Ribble, Blackpool, Blackburn, Leyland,Lancaster and Chorley communities
- The wider Christian community
- Compassion Children in Brazil
- Vision Rescue, India
## **How are their needs met and how do they influence the charity's developments?**
- Regular church meetings, training events and small groups support the individual in their Christian faith.
- Outreach projects and ministries run in Preston and the surrounding towns, including a youth program and continual development of the People Matters Team. These endeavours offer help and support to individual's physical, emotional and spiritual wellbeing.
- Sermons and messages are distributed and broadcast online for free access. Valley Interns, a one year Internship program which includes Leadership training.
- Individuals in the Church sponsor many children in and around Fortaleza, Brazil through several Compassion projects. We are heavily linked with the projects and a team from the church visited the projects, taking gifts and meeting the staff and children and we continue to support the projects financially through individual child sponsorship and wider support.
- We continue to partner with the work of a local charity in Mumbai, India, Vision Rescue, who work with children who live in the slums.
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## **VALLEY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Achievements and performance**
Achieved through church services, events, community activities, and internet distribution of sermons.
Achieved through designated giving and various community outreaches and initiatives. Joining with Compassion and Vision Rescue have helped us achieve this objective internationally.
## **Financial review**
The Trustee's has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The Trustee's, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Reverend E J Carter
Mr J P Street Mr D A Scholes Mr R Sellars Ms C Greaves
## **Organisational structure**
The board of Trustees of 4 members, who meet at least every 10 weeks, administers the charity.
The Trustees' r eport was approved by the Board of Trustee's.
## **Mr J P Street**
Trustee Dated: 23 June 2021
**Mr R Sellars** Trustee Dated:23 June 2021
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## **VALLEY CHURCH**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEE'S OF VALLEY CHURCH**
I report to the Trustee's on my examination of the financial statements of Valley Church (the charity) for the year ended 31 December 2020.
## **Responsibilities and basis of report**
As the Trustee's of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
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 that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements 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 financial statements 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).
Mr Neill Currie FCA For and on behalf of Jerroms
Lumaneri House Blythe Gate Blythe Valley Park Solihull West Midlands B90 8AH
Dated: 23 June 2021
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## **VALLEY CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**2**
242,195
41,495
Charitable activities
**3**
-
-
Investments
**4**
5
-
**Total income**
242,200
41,495
**Expenditure on:**
Raising funds
**5**
1,459
-
Charitable activities
**6**
273,153
-
**Total resources**
**expended**
274,612
-
**Net (expenditure)/income**
**for the year/**
**Net movement in funds**
(32,412)
41,495
Fund balances at 1
January 2020
285,015
1,321
**Fund balances at 31**
**December 2020**
252,603
42,816|**Total**Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
**£**
**£**
283,690
316,442
-
-
254
-
5
10
-
283,695
316,706
-
1,459
6,130
-
273,153
300,564
-
274,612
306,694
-
9,083
10,012
-
286,336
275,003
1,321
295,419
285,015
1,321|Total
2019
**£**
316,442
254
10
316,706
6,130
300,564
306,694
10,012
276,324
286,336|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 4 -
## **VALLEY CHURCH**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2020**_
|**Notes**
**Fixed assets**
Investments
**10**
**Current assets**
Debtors
**11**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**12**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**14**
Unrestricted funds|**2020**
**£**
116,048
41,167
157,215
(31,797)|**£**
170,001
125,418
295,419
42,816
252,603
295,419|**2019**
**£**
338,627
10,412
349,039
(62,704)|**£**
1
286,335
286,336
1,321
285,015
286,336|
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.
The director acknowledges her responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustee's on 23 June 2021
Mr J P Street Mr R Sellars **Trustee Trustee**
## **Company Registration No. 06271275**
- 5 -
## **VALLEY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
Valley Church is a private company limited by guarantee incorporated in England and Wales. The registered office is Tenterhill Farm, Ashley Lane, Goosnargh, Preston, Lancashire, PR3 2EE, England.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 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 UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
As stated in Note 16, the charity has utilised the available government support to mitigate the uncertain risks due to the pandemic. The charity's trading results for the year are as expected given the circumstances surrounding the pandemic, despite furloughing a number of employees. The charity also has excellent cash reserves.
A t the time of approving the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he Trustee s continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustee's in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
## **1.5 Expenditure**
Expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all cost related to the category.
- 6 -
## **VALLEY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.6 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
## **1.7 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.8 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
- 7 -
## **VALLEY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Donations and gifts
215,254
3,160
Heart for the House
8,500
37,955
Coronavirus job retention grant
18,441
-
People matter
-
380
242,195
41,495|**Total**Unrestricted
funds
**2020**
2019
**£**
£
218,414
262,039
46,455
54,403
18,441
-
380
-
283,690
316,442|
|---|---|
## **3 Charitable activities**
||**2019**|
|---|---|
||**£**|
||**2019**|
||**£**|
|Hillsong|254|
- 8 -
## **VALLEY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**4**
**5**
**6**|**Investments**
**Unrestricted**Unrestricted
**funds**
funds
**2020**
2019
**£**
£
Interest receivable
5
10
**Raising funds**
**Unrestricted**Unrestricted
**funds**
funds
**2020**
2019
**£**
£
Fundraising and publicity
Special events expenses
1,459
6,130
1,459
6,130
**Charitable activities**
**2020**
**2019**
**£**
**£**
Staff costs
130,609
110,914
Depreciation and impairment
30,000
-
Ministerial Costs
16,034
32,947
Valley kids 5+
515
1,713
Technical equipment
7,372
5,092
Tithe giving
13,543
14,332
People Matters expenses
(2,247)
3,624
Gifts for visiting speakers
3,647
7,030
Heart for the house
-
53,244
Repairs
-
483
199,473
229,379
Share of support costs (see note 7)
60,000
60,000
Share of governance costs (see note 7)
13,680
11,185
273,153
300,564|
|---|---|
- 9 -
## **VALLEY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **7 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Office Rent
60,000
-
Accountancy
-
1,809
Administrative expenses
-
10,851
Legal and professional
-
1,020
60,000
13,680
Analysed between
Charitable activities
60,000
13,680|**2020**
**£**
60,000
1,809
10,851
1,020
73,680
73,680|Support
costs
Governance
costs
£
£
60,000
-
-
2,311
-
8,874
-
-
60,000
11,185
60,000
11,185|2019
£
60,000
2,311
8,874
-
71,185
71,185|
|---|---|---|---|
## **8 Trustee's**
2 of the Trustee's received remuneration during the year totalling £83,838 (2019: £81,908) , 2 of them were reimbursed a total of £ 5,200 travelling expenses (201 9 - 2 were reimbursed £ 5,500 ).
## **9 Employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Other pension costs|**2020**
**Number**
4
**2020**
**£**
118,885
11,724
130,609|**2019**
**Number**
4
**2019**
**£**
100,684
10,230
110,914|
|---|---|---|
- 10 -
## **VALLEY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **10 Fixed asset investments**
|**Cost or valuation**
At 1 January 2020
Valuation changes
At 31 December 2020
**Impairment**
At 1 January 2020
Impairment losses
At 31 December 2020
**Carrying amount**
At 31 December 2020
At 31 December 2019
Other investments comprise:
**Notes**
Investments in subsidiaries
**18**
**11**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Amounts owed by fellow group undertakings
Other debtors|**Other**
**investments**
1
200,000
200,001
-
30,000
30,000
170,001
1
**2020**
**2019**
**£**
**£**
170,001
1
**2020**
**2019**
**£**
**£**
551
5,880
108,447
332,747
7,050
-
116,048
338,627|
|---|---|
- 11 -
## **VALLEY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **12 Creditors: amounts falling due within one year**
|Trade creditors
Other creditors
Accruals and deferred income|**2020**
**£**
1,302
28,645
1,850
31,797|**2019**
**£**
7,359
35,495
19,850
62,704|
|---|---|---|
## **13 Retirement benefit schemes**
## **Defined contribution schemes**
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £11,724 (2019 - £10,230).
## **14 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|Heart of the house
People matter
Through money
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2020**
**2020**
**£**
**£**
Fund balances at 31
December 2020 are
represented by:
Investments
170,001
-
Current assets/
(liabilities)
125,418
-
295,419
-|**Movement**
**in funds**
**Balance at**
**1 January 2020**
**Incoming**
**resources**
**Balance at**
**31 December**
**2020**
**£**
**£**
**£**
1,321
37,955
39,276
-
380
380
-
3,160
3,160
1,321
41,495
42,816
**Total**Unrestricted
funds
Restricted
funds
Total
**2020**
2019
2019
2019
**£**
£
£
£
170,001
1
-
1
125,418
286,335
-
286,335
295,419
286,336
-
286,336|
|---|---|
## **15 Analysis of net assets between funds**
- 12 -
## **VALLEY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **16 Events after the reporting date**
The Trustees have considered the effect of the Covid-19 outbreak. Clearly this has continued to cause a disruption to the Charities business. However, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operation for the foreseeable future, and are confident that the Charity can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.
## **17 Related party transactions**
There w as 1 related party transaction during the year .
M Carter received £14,842 as remuneration for her services. She is the spouse of E Carter, a trustee.
## **18 Subsidiaries**
Details of the charity's subsidiaries at 31 December 2020 are as follows:
|**Name of undertaking**|**Registered**|**Nature of business**|**Class of**|**% Held**|
|---|---|---|---|---|
||**office**||**shares held**|**Direct Indirect**|
|Valley Centre|Fourfields,|Property Rental & Coffee|Ordinary|100.00|
|Developments|Bamber Bridge,|Shop|||
||Preston||||
- 13 -