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2022-12-31-accounts

Charity registration number 1125080

Company registration number 06271275 (England and Wales)

VALLEY CHURCH

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022

The Trustee's present their annual report and financial statements for the year ended 31 December 2022.

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

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.

VALLEY CHURCH

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

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

18 August 2023

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 2022.

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:

Jerroms

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

Dated: 18 August 2023

VALLEY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and
legacies
2
390,023
153,761
Investments
3
200
-
Total income
390,223
153,761
Expenditure on:
Raising funds
4
4,152
74,755
Charitable activities
5
348,496
-
Total expenditure
352,648
74,755
Net income/(expenditure)
for the year/
Net movement in funds
37,575
79,006
Fund balances at 1 January
2022
220,016
64,354
Fund balances at 31
December 2022
257,591
143,360		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
543,784
284,035
71,837
200
4
-
543,984
284,039
71,837
78,907
4,725
50,300
348,496
311,900
-
427,403
316,625
50,300
116,581
(32,586)
21,537
284,370
252,603
42,816
400,951
220,017
64,353		 Total
2021
£
355,872
4
355,876
55,025
311,900
366,925
(11,049)
295,419
284,370

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 2022

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		 2022
£
84,819
196,969
281,788
(5,838)		 £
125,001
275,950
400,951
143,360
257,591
400,951		 2021
£
93,239
78,227
171,466
(27,097)		 £
140,001
144,369
284,370
64,353
220,017
284,370

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 2022.

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 18 August 2023

Mr J P Street Trustee

Mr R Sellars Trustee

Company registration number 06271275

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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. The principal accounting policies adopted are set out below.

1.2 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.

1.3 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.

1.4 Expenditure

Expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all cost related to the category.

1.5 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.

1.6 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.

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.7 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.

1.8 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.

1.9 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

2 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
368,008
18,640
Heart for the House
22,015
134,496
Coronavirus job retention
grant
-
-
People matter
-
625
390,023
153,761		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
386,648
259,934
13,310
156,511
7,922
55,469
-
16,179
-
625
-
3,058
543,784
284,035
71,837		 Total
2021
£
273,244
63,391
16,179
3,058
355,872

3 Investments

Interest receivable
Raising funds
Unrestricted
Restricted
funds
funds
2022
2022
£
£
Fundraising and publicity
Special events expenses
4,152
-
People matter expenses
-
14
Staff costs
-
27,772
Trading costs
-
74,755
4,152
74,755		 Unrestricted Unrestricted
funds
funds
2022
2021
£
£
200
4
Total
Unrestricted
Restricted
Total
funds
funds
2022
2021
2021
2021
£
£
£
£
4,152
4,725
-
4,725
14
-
2,438
2,438
27,772
-
10,958
10,958
74,755
-
50,300
50,300
78,907
4,725
50,300
55,025		 Unrestricted Unrestricted
funds
funds
2022
2021
£
£
200
4
Total
Unrestricted
Restricted
Total
funds
funds
2022
2021
2021
2021
£
£
£
£
4,152
4,725
-
4,725
14
-
2,438
2,438
27,772
-
10,958
10,958
74,755
-
50,300
50,300
78,907
4,725
50,300
55,025
Total
2021
£
4,725
2,438
10,958
50,300
55,025

4 Raising funds

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

5 Charitable activities

Staff costs
Depreciation and impairment
Ministerial Costs
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)		 2022
£
148,177
15,000
65,463
18,450
18,310
600
10,805
276,805
60,000
11,691
348,496		 2021
£
136,037
30,000
42,669
9,495
16,456
1,505
6,126
242,288
60,000
9,612
311,900

6 Support costs

Support costs
Office Rent
Accountancy
Administrative expenses
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
60,000
-
-
1,686
-
10,005
60,000
11,691
60,000
11,691		 2022
£
60,000
1,686
10,005
71,691
71,691		 Support
costs
Governance
costs
£
£
60,000
-
-
1,850
-
7,762
60,000
9,612
60,000
9,612		 2021
£
60,000
1,850
7,762
69,612
69,612

7 Trustee's

2 of the Trustee's received remuneration during the year totalling £89,440 (2021: £96,039), 2 of them were reimbursed a total of £4,724 travelling expenses (2021 - 2 were reimbursed £3,245).

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

8 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Other pension costs		 2022
Number
5
2022
£
169,987
5,962
175,949		 2021
Number
5
2021
£
140,936
6,059
146,995

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

9 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

10 Fixed asset investments

Other
investments
Cost or valuation
At 1 January 2022 & 31 December 2022 140,001
Carrying amount
At 31 December 2022 140,001
At 31 December 2021 140,001
2022 2021
Other investments comprise: Notes £ £
Investments in subsidiaries 17 125,001 140,001

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

11 Debtors

Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by fellow group undertakings
Other debtors		 2022
£
-
77,000
7,819
84,819		 2021
£
1,068
89,000
3,171
93,239

12 Creditors: amounts falling due within one year

Trade creditors
Other creditors
Accruals and deferred income		 2022
£
-
3,988
1,850
5,838		 2021
£
1,400
23,794
1,903
27,097

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 £5,962 (2021 - £6,059).

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:

Movement in funds Movement in funds
Balance at Incoming Resources Balance at
1 January 2022 resources expended 31 December
2022
£ £ £ £
Heart of the house 57,842 134,496 (46,969) 145,369
People matter 1,000 625 (14) 1,611
Through money 5,512 18,640 (27,772) (3,620)
64,354 153,761 (74,755) 143,360

VALLEY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

15
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 31
December 2022 are
represented by:
Investments
125,001
-
Current assets/(liabilities)
275,950
-
400,951
-		 Total Unrestricted
funds
Restricted
funds
2022
2021
2021
£
£
£
125,001
140,001
-
275,950
144,369
-
400,951
284,370
-		 Total
2021
£
140,001
144,369
284,370

16 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

Valley Centre Developments Limited Rent
2022
£
60,000
60,000		 2021
£
60,000
60,000

There was 1 related party transaction during the year.

M Carter received £15,739 as remuneration for her services. She is the spouse of E Carter, a trustee.

17 Subsidiaries

Details of the charity's subsidiaries at 31 December 2022 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