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2021-12-31-accounts

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 2021

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
Mr A Moore
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 - 12

VALLEY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustee's present their annual report and financial statements for the year ended 31 December 2021.

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

Who Benefits?

How are their needs met and how do they influence the charity's developments?

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

VALLEY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustee's have 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 Mr A Moore

Organisational structure

The board of Trustees of 6 members, who meet at least every 10 weeks, administers the charity.

The Trustees' report was approved by the Board of Trustee's.

Mr J P Street Mr R Sellars Trustee Trustee

3 August 2022

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 2021.

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:

Mr Neill Currie FCA For and on behalf of Jerroms

Lumaneri House Blythe Gate Blythe Valley Park Solihull West Midlands B90 8AH

Dated: 3 August 2022

VALLEY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
2
284,035
71,837
Investments
3
4
-
Total income
284,039
71,837
Expenditure on:
Raising funds
4
4,725
50,300
Charitable activities
5
311,900
-
Total resources expended
316,625
50,300
Net (expenditure)/income for
the year/
Net movement in funds
(32,586)
21,537
Fund balances at 1 January
2021
252,603
42,816
Fund balances at 31
December 2021
220,017
64,353		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
355,872
242,195
53,079
4
5
-
355,876
242,200
53,079
55,025
1,459
11,584
311,900
273,153
-
366,925
274,612
11,584
(11,049)
(32,412)
41,495
295,419
285,015
1,321
284,370
252,603
42,816		 Total
2020
£
295,274
5
295,279
13,043
273,153
286,196
9,083
286,336
295,419

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.

VALLEY CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Investments
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
13
Unrestricted funds		 2021
£
93,239
78,227
171,466
(27,097)		 £
140,001
144,369
284,370
64,353
220,017
284,370		 2020
£
116,048
41,167
157,215
(31,797)		 £
170,001
125,418
295,419
42,816
252,603
295,419

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 2021.

The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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 3 August 2022

Mr J P Street Mr R Sellars Trustee Trustee

Company Registration No. 06271275

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

VALLEY CHURCH

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 amounts 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.

At 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 the Trustees 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.

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

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 payments 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.

1.9 Employee benefits

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.

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

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
2021
2021
£
£
Donations and gifts
259,934
13,310
Heart for the House
7,922
55,469
Coronavirus job retention
grant
16,179
-
People matter
-
3,058
284,035
71,837		 Total
Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
273,244
215,254
3,160
63,391
8,500
37,955
16,179
18,441
-
3,058
-
11,964
355,872
242,195
53,079		 Total
2020
£
218,414
46,455
18,441
11,964
295,274

3 Investments

Interest receivable
Raising funds
Unrestricted
Restricted
funds
funds
2021
2021
£
£
Fundraising and publicity
Special events expenses
4,725
-
People matter expenses
-
2,438
Staff costs
-
10,958
Trading costs
-
50,300
4,725
50,300		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
4
5
Total
Unrestricted
Restricted
Total
funds
funds
2021
2020
2020
2020
£
£
£
£
4,725
1,459
-
1,459
2,438
-
11,584
11,584
10,958
-
-
-
50,300
-
11,584
11,584
55,025
1,459
11,584
13,043		 Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
4
5
Total
Unrestricted
Restricted
Total
funds
funds
2021
2020
2020
2020
£
£
£
£
4,725
1,459
-
1,459
2,438
-
11,584
11,584
10,958
-
-
-
50,300
-
11,584
11,584
55,025
1,459
11,584
13,043
Total
2020
£
1,459
11,584
-
11,584
13,043

4 Raising funds

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

4 Raising funds

(Continued)

5 Charitable activities

Staff costs
Depreciation and impairment
Ministerial Costs
Valley kids 5+
Technical equipment
Tithe giving
People Matters expenses
Gifts for visiting speakers
Share of support costs (see note 6)
Share of governance costs (see note 6)
Support costs
Support
costs
Governance
costs
£
£
Office Rent
60,000
-
Accountancy
-
1,850
Administrative expenses
-
7,762
Legal and professional
-
-
60,000
9,612
Analysed between
Charitable activities
60,000
9,612		 2021
£
136,037
30,000
42,669
-
9,495
16,456
1,505
6,126
242,288
60,000
9,612
311,900
2021Support costs Governance
costs
£
£
£
60,000
60,000
-
1,850
-
1,809
7,762
-
10,851
-
-
1,020
69,612
60,000
13,680
69,612
60,000
13,680		 2020
£
130,609
30,000
16,034
515
7,372
13,543
(2,247)
3,647
199,473
60,000
13,680
273,153
2020
£
60,000
1,809
10,851
1,020
73,680
73,680

6 Support costs

7 Trustee's

2 of the Trustee's received remuneration during the year totalling £96,039 (2020: £83,838), 2 of them were reimbursed a total of £3,245 travelling expenses (2020 - 2 were reimbursed £5,200).

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

8 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
Employment costs
Wages and salaries
Other pension costs		 2021
Number
5
2021
£
140,936
6,059
146,995		 2020
Number
4
2020
£
118,885
11,724
130,609

There were no employees whose annual remuneration was more than £60,000.

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Fixed asset investments

Cost or valuation
At 1 January 2021 & 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
Other investments comprise:
Notes
Investments in subsidiaries
16
10
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by fellow group undertakings
Other debtors
11
Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income		 Other
investments
170,001
170,001
170,001
2021
2020
£
£
140,001
170,001
2021
2020
£
£
1,068
551
89,000
108,447
3,171
7,050
93,239
116,048
2021
2020
£
£
1,400
1,302
23,794
28,645
1,903
1,850
27,097
31,797

12 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 £6,059 (2020 - £11,724).

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

13 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
14
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
December 2021 are
represented by:
Investments
140,001
-
Current assets/(liabilities)
144,369
-
284,370
-		 Balance at
1 January
2021
Incoming
resources
Resources
expended
Balance at
31
December
2021
£
£
£
£
39,276
55,469
(36,903)
57,842
380
3,058
(2,438)
1,000
3,160
13,310
(10,959)
5,511
42,816
71,837
(50,300)
64,353
Total
Unrestricted
funds
Restricted
funds
Total
2021
2020
2020
2020
£
£
£
£
140,001
170,001
-
170,001
144,369
125,418
-
125,418
284,370
295,419
-
295,419		 Balance at
1 January
2021
Incoming
resources
Resources
expended
Balance at
31
December
2021
£
£
£
£
39,276
55,469
(36,903)
57,842
380
3,058
(2,438)
1,000
3,160
13,310
(10,959)
5,511
42,816
71,837
(50,300)
64,353
Total
Unrestricted
funds
Restricted
funds
Total
2021
2020
2020
2020
£
£
£
£
140,001
170,001
-
170,001
144,369
125,418
-
125,418
284,370
295,419
-
295,419
64,353
Total
2020
£
170,001
125,418
295,419

15 Related party transactions

There was 1 related party transaction during the year. M Carter received £15,046 as remuneration for her services. She is the spouse of E Carter, a trustee.

16 Subsidiaries

Details of the charity's subsidiaries at 31 December 2021 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
Valley Centre Developments Fourfields, Property Rental & Coffee ShopOrdinary 100.00
Bamber Bridge,
Preston