Staplehurst Free Church Reports and Financial Statements For the year ended 31 October 2020 Company number: 06725987 Charity number: 1127205 l.:Iiiiiiiill Ll7V8X 2PJCW2tr21 COkANIES HCXJSE A15
REFERENCE AND ADMINSTRATION INFORMATION Trustees T Hawgood R Howse R Laming Mrs K Minett G Smith Address of the principal office of the charity Staplehurst Free Church Station Road Staplehursl Kent TN12 OQQ Independent Examiner Mr L.C. Seal ACCA FAIA Blain Pritchard 74 College Road Maidstone Kent ME15 6SL Treasurer Mr Roger Bashford Bankers National Westminster Bank plc Maidstone Branch 3 High Street Maidstone Kent ME14 1XU
TRUSTEES REPORT The trustees are pleased to present their report together with the financial statements for the year ended 31 October 2020. The financial ststemenls comply with current statutory requirements, the Companies Act 2006 and the Statement of Recommended Practice "Accounting and Reporting by Charities" ISORP) effective from January 2015. STRUCTURE. MANEGEMENT AND GOVERNANCE The charity is a company limrted by guarantee. with a Memorandum and Articles of Association as its governing document. It was incorporated on 16th Odober 2008. Previously Staplehurst Free Church, which began in the home of one of the founder members in 1969, was an unincorporated ¢hanty governed by a Trust Deed. There is also a Constitution of Staplehurst Free Church which applies to 311 who are in mernbership. This document sets Qui the purpose. statement of faith, vision, mission and goals. It also contains provisions regarding membership. the governan of the church through the leadership team (comprising elders and deacons) and their appointment and responsibilities, the option lo appoint a remuneraled pastor, the conduct of church meelings and reference lo the role trustees. In the event of a conflict between the constitution and the Memorandum and Articles of Association, then the Memorandum and Articles of Association have preference. A full-time pastor had been appointed in 2018 and it is acknowledged that we were challenged as a church to be more intentional about evangelism and a few members were helped through his ministry. Unfortunately. his methods caused considerable unease in Ihe church and multiple people left the church or distanced themselves from involvement. The board of Trustees became increasingly concerned al his style of leadership and the adverse effect this was having on individuals within the church, the reputation of the church in the communrty. The Trustees have a duty to protect the church and individuals participating in the activitie5 in the church especially in respect to pastoral care being dealt w>th propedy and sensitively_ Just as the Trustees were tackling these multiple issues that were arising towards the end of the previous financial year, one of the elders and then the pastor unexpectedly resigned. Shortly after. one of the deacons and her family decided to relocate to another church and they left in Dernber. Given the importance of continuity. an Interim Leadership Team was fomied at the start of this financial year. This team was made up of members with significant historic involvement in and experience of Church life and who then served for the majority of the period covered by this report.. Terence Hawgood (Eldef) Bob Howse (Deacon) Mary Howse Kate Henry Clive Jones (previous pastor) The members of the Charity may by ordinary resolution appoint a person who is willing to act as a Trustee either to fill a vacancy or as an additional Trustee at a General Meeting in accordance with the Articles of Association. As at the dale of this report the following are the charity's trustees and directors for the purposes of the Companies Act-. - Bob Howse Terence Hawgood Roy Laming
Graham Smilh Kathryn Minett The Leadership team and the Trustees constantly review the various policies of Ihe church to ensure it uses best practice across all activities. supported by having appropriate policies in place including but nol limited to the Equal Opportunrties Policy and Ethos Slalement, Safeguarding Policy for Children and Vulnerable Adults, Pastoral Care Policy, Acceptable Behaviour Policy, Mission Funding PoliGy. Health & Safety Policy induding the Food Hygiene Policy, Premises Security Policy and the Fire Safety Policy. Given the recent pastorship issues that had arisen, a governance review was jointly undertaken by the trustees and leadership team and vanous areas for enhancing governance arrangements were identified including.. Recruitment- more robust due diligence for the recruitment of any future pastor including more extensive contact with previous employers and looking at the annual accounts of any church or organisation where a candidate was previously employed. Structure - to retain the existing structure of separate leadership and trustee teams but for them to meet together more regularly and exchange Ihe minutes of routine meetings in between limes. The existing Segal structure of chanty and company status to be retained as there were no particular advantages from moving to a CIO status. Moderation- identify an independent experienced third-party outside of the ¢hurch who could be asked lo Interde should difficulties arise between the pastor. trustees, and other leadership. Policies - review and update policies as some are too heavily weighted towards Ihe infallibility of a pastor,. also, lo determine who is best positioned to undertake line management of a pastor. Friendly connections with many of those who left the Churth were rnaintained which helped with some gradual reconciliation and healing as the year progressed. CHARITABLE OBJECTIVES & ACTIVITIES The objeds and goals of Staplehurst Free Church are set out in the Memorandum of Association and expanded in the Constitution, these being a vision being for a Spirrt filled church released into corporate praise and worship and to be an effeclive witness to the community. to serve some of the many and diverse needs of the Community of Staplehurst and to be involved in the wider mission of the church overseas. The mission statement is summed up in the key statement- "Enabling everyone lo know Jesus and grow in a personal relationship with Him.. We stn.ve to monitor the needs ofthe communty matching them to our resources and wjentifying opportunities for offering God's love to those in need. PUBLIC BENEFIT All Trustees give Iheir time voluntarily and re1ve no benefit from the charity. The trustees have Complied with the duly in section 17 of the Chanties Act 2011 to have due regard to Public Benefrt guidance published by the Charities Commission. We aim to seNe some of the many needs of our community through a diverse range of activities. As for many charities and churches, significant operational challenges but also some new opportunities came about in the period covered by this report as described below.
Sustainabili Throu h Collaboration- November'19 to March '20 Since some of the leadership team had resigned or moved away at the transition to this financial year. an Interim Leadership Team was quickly fomed as previously described. Also, the worship group. which has a key role in delivering core Sunday activities. was immediately revived as those in the group who had withdrawn or resigned during the previous pastor's tenure were Instated or felt able to participate once again. Many church members reported a renewed vibrancy in the music, singing and worship after what had been quite a toxic period. Across the church many mernbers and friends of the fellowship also fett able to tsecome more involved On again and rallied to fill gaps in activily coordination and delivery. From November 2019 to the end of March 2020 the full portfolio of activities iemained operational and continued to meet the needs of people of all ages in spiritual, health and wellbeing areas of their lives.. Sunday Services - The regular Sunday momin9 and evening services continued and included worship, communion and leaching. Different Gonlent is used across various Sundays each month to meet the needs of both young and old, their corporate worship preferences for when they are able to attend according to work, family or other commitments. Times of community and fellowship are encouraged, appreciated and well supported through providin9 refreshments after every moming service and occasional sharing lunches once each quarter. Home Groups and Prayer - This activity provides opportunities for Bible study and prayer and took place in various members, houses and benefited those who find it easier to participate in smaller groups. Prayer has an important pla in Church life in providing unity and support. espeallY for Ihose who are ur)well or facing challenging circumstances". prayer meetings were also held at the church building on Wednesday momings and also before Ihe Sunday moming and evening services. Free Bees Toddlers Group - This is a support group for parents. grandparents and carers through creating an attractive space for toddlers and pre•school children to play and interact. It is run by volunteers from the Church all of whom are eXperiend in child-care andlor family 5UPPOrt and have an up-to-date DBS certificate. Between 80 and 100 adufts and children attended each week from a wide catchment area. Care Free Families - Care Free Families is our weekly free club designed especially for families with special needs including parents and young carers, as well as the wider family. Our desire is to enable families to find mutual support and friendship whilsl enabling their hildren to have fun in a safe and happy environment. Craft and play activrties are provide along with freShMentS. Sing-a-long Club - We continued to run a sing-a-long club for local adults with learning difficulties and their carerfs one ThLSrsday aftemoon each month. Refreshrnents and home- made cakes are provided and these sessions deliver a real social inclusion benefit to those who attend. Care Homes Visits - We held frequent services at four local care homes for the elderly or those with disabilities where we sing some favourite hymns, share a short rnessage and chat and pray with residents. CarS and family members. Men's Walking Group - Our men's group provides great opportunlties for men in the church and community to connect with each other through meetings and social events. We have a weekly walking group whith walk every Monday morning (weather permitting) and ending up at a nearby Café for coffee. Men's Shed - Although not exclusively a Ghurch njn activity, several men from the church continued to help run the weekly Staplehurst Men's Shed- a place where men can come together to socialise. share ideas and skills and participate in practical projects and make new friends.
Badminton Groups- We continue to have 3 weekly badminton clubs all organised and operated by the church in the main hall. all of which benefit frorn our professional slandard badminton mal. There is junior badminton. a mixed badminton dub for all abilities and a ladies-only club on the Frrday morning. These free clubs are attended by both church members and those not othepNise involved in the church. Choir- A group mel on most Monday evenings to practice choral ple5, mainly of a devolional nature and have perfomied at certain times oflhe year such as Christmas and Easter Services and other services. All ages and abilities are included. Pastoral Care Our pasloral care team involves volunteers with an aptitude for spending time with friends going through difficult limes, helping in practical ways, praying, giving support and encouragement where possible. Third-Party Charitable Support - We have supported financially and in prayer, many organisations and missions w-rth gifts through the Missionary Fund- for details see the Note 2 under the heading 'Proiects° in the Notes to the financial stalernents. This 15 in accordance with our biblical perspective of trthing our income to at least 10°h_ The church supported and acted as a -dropping off point. for shoeboxes filled with toys as part of Samaritan Purse's Operalion Christmas Child Appeal as in previous years. Rent-free office space and funding Support is also provided to Staplehurst's Debt Advice Centre. Social and Other events- These included Carol singing in local care homes. a Christmas social, a New Yearfs Eve party and Light Party Display as a Covid-safe alternative to Halloween and our usual light party event. Positivi throu h the Pandemic- A ril '20 to October'20 The Covid-19 pandernic inrtially had a significant impact on nonnal Churth lrfe and routine with all services and activities being cancelled because of the national lockdown introduced by the Government at the end of March. However. wrthin two weeks, on-line strearning of Sunday services was started. Ihe first time ever the Church had ventured into the use of such media. Midweek telephone-based prayer meetings started shortly after wards and then a range of activities evolved as the Church pivoted to ensure the community of Church members were able to feel connected and not be isolated. Opportunities also opened up for thurth members to volunteer in community support activities and for those ading as key workers in various professions lo feel supported. Highlighls of the activities included the following: Sunday Connections Service- These Sunday morning broadcast Quickly became popular and much appreciated. Many people were able to be involved in preparing and delivering the broadcasts, viewers were able to send lext messages to say they were watching and Ihey were also able to chat and comment online as the broadcasls proceeded" this enabled the Church community to feel connected to each other even though Ihey could not meet in person. Between 50 and 80 people walched each week on YouTube including many people nol previously involved with SFC and family and friends across the country and intemalionally. Some grant funding was obtained to pay for broadcasting licences and equipment and to also fund devices for the elderfy and isolated who did not have broadband or suitable viewing devios. Virtual Prayer Meetings - These were telephone-based acknowledging that not everyone had broadband facilities or the knowledge on how to Use video plafforms. The yPaY seNice enabled people to dial in provide mutual support and prayer for each other and the wider ommunity, Communlty Support- Some Church members became involved in the work of the local Community hub, doing shopping and deliverrng food parlS to people who were elderly,
isolated or shielding. Several church members were Key workers in the NHS. local care homes and working in supermarkets and these were encouraged and supported through interniews in the weekly broadcasts. The Zoom platform was used extensively to enable the leadership team. home groups and other friendship groups to meet online for the likes of business meetings and play quizzes. Socially Distanced In-Person ServiGes and Activities- As Covid-related restrictions became slightly relaxed in the Autumn of 2020. in-person meetings became possible again. The Chair of Trustees led on risk assessmerrt work. the Church building was able to safely accommodate 40 people for Sunday services with them being broadcast online at the same time to those nol wanting lo meet corporately. A new support group was started for isolated new mums bLrt most other activities were not possible due to their nature or because volunteers or participants were vulnerable to the risks of Covid. FUTURE PLANS The Church has remained very active. sustainable and vibrant through the unprecedented challenge5 il has faced over an 18-month period from firstly leadership issues and then the impact of the Covid virus. The immediate focus for the coming year is on continuity of activities for community SUPPOrt and benefit. whether in person or online, as the pandemic continues. The Church leadership is also looking ahead to towards future developments and enhancements to the work of the Church as and when they become possible. Plans include." Commencement of new activities including midweek bubble online meetings, a food parcel service. a community fridge scheme and mid-week chal-show style programme. Recommencement of all previous activities as and when restrictions allow, and the leadership feel it is safe to do so, given the number of vulnerable people involved in some of those activities. To enhance the govemance and prOdureS to ensure best possible practice Gontinues to be used. To ensure the Church remains financially sustainable including continuing to service the mortgage and paying off the annual target interest free loans related to the previous rebuilding projec*. To maximise use of the church premises for our own activities and fundions and for Ihe benefit of the wider community. To discem the Lord's will in the future direction of the church includin9 the employment of any fLrture pastor if and when appropriale.
FINANCIAL REVIEW Cash at hand in the bank account at 3151 October 2020 were £24.357. An amount of £10.000 is ringfend as reserves which covers 6 months of fixed expenditure which the trustees consider to be adequate. The remainder is available for projects and actrvities as needed. The Buildln Pro ect All income to the building fund was prioritised towards the monthly mortgage payments and repayment of interest fe loans resulting from the complete redevelopment of the Church srte culminating with the opening of the new building in Dernber 2013. The Èargel is to repay all interest free loans by the end of October 2024 and an action plan is in hand to achieve this. {See Notes 3 and 4 of the Notes to the financial statements). Trustees, re5 nsibilities Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity at the year end and of its income and expenditure during the year. In preparing these financial statements, the trustees are required to.. select suilable accounting policies and apply them consistently., make judgments and estimales that are reasonable and pruderrt., state whether applicable accounting standards and statements of recommended practi have been followed subject lo any material departures disclosed and explained in the financial statements; and prepare the financial statements on a going concem basis unless it is inappropriale lo presume thal the charity will continue in business. The trustees are required to keep proper accounting records which disclose with reasonable accuracy at any time the financial position of the charrty and enable them to ensure that the financial statemenls comply with the Companies Act 2006. They are also spOnsible for safeguarding the assets of the chartty and for taking reasonable steps for the prevention and delection of fraud and other irregularities. Approved by the managing trustee5 and signed on their behaFf by R Laming Date..
Independent Examinevs Report to the Trustees of Staplehurst Free Church I report on the financial statements of Staplehurst Free Church for the year ended 31 October 2020, which are set out on pages 10 to 15. Respective responsibilities of trustees and examiner The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the financial statemenls in accordance with the requirements of the Companies Act 2006 ('the 2006 Act,). Having satisfied mysew 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 resped of my examination of the chanty's financial statements as carried out under section 145 of the Charities Act 2011 Ilhe 2011 Act). In carying out my examination I have followed the Directions given by the Charity Commission under section 145(bl of the 2011 Act This report, including my statement. has been prepared for and only for Ihe charrty's trustees as a body. My work has been undertaken so thal I might stale to the charity s trustees those matters I am required lo slate to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the harity and the charity's trustees as a body for my examination work, for Ihis POrt, or for the statements I have made. Basis of independent examinerfs report My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination indudes a review of the accounting records kept by the charity and comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeking explanations from you as Iruslees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audrt. and consequently no opinion is given as to whether the financial statements present a 'true and fair view. and the report is limited to those matters set out in the statement below. Independent examlnevs statement In connection with my examination. which is complete, no matters have come to my attention which give me reasonable cause to believe that in any material respect.. accounting records were not kept in respect of Staplehurst Free Church in accordance with section 386 of the 2006 Acl" or the financial statements do not accord with those records". or the financial statements do nol comply wrth the accounting requirements of section 396 of the 2006 Acl other than any requirement that the financial statements give a 'true and fair, view which is nol a matter considered as part of an independent examination.. or the financial statements have not been prepared in accordance with the Methods and principals of the Statement of Recommended Practice for accounting and reporting by charities lapplicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102}1. I have no conrnS and have come across no other matters in connection with the examination to which, in my opinion. attention should be drawn in order to enable a proFer understanding of the financial statements lo be reached. Signed.. r L. C. Seal ACCA FAIA Blain Pritchard, Chartered Certffied Accountants 74 College Road, Maidstone, Kent ME16SL Date..
Staplehurst Free Church Statement of financlal activities for the year ènded 31 October 2020 General Misslonary Youth Bulldrng Total 202Q Total Not¢ Fund Fund Fund Fund 2019 Income Donatws 36,249 4.225 1,8ce 27 26,953 229 65,038 4.454 31 ,382 3,176 92 Sundry in¢ome Bank interest 31 Inland Revenue 11.484 13,587 Total income 51,958 27 27.213 81.(KI7 107.236 Expenditure Events 111 Projects Sundry expen$es Professional and legal fees Salaries and wages It)land Revenue 7.259 IC 11,747 24,976 11.704 31,491 6.1C6 25.208 17.092 6,887 16.037 3.611 17,192 12,957 16.037 3,611 25.208 6.045 Depreciation 25.208 Totsl *xpendltu 44.083 7,359 25 31.253 82,720 111,232 Net Incomellexpendifvre) before transfers 7.875 -1.713 -3.995 Transfers between fvnds -15.694 7.750 Net incomellexpendityrel after transfer5 -7.819 2.394 3.710 -1,713 -3,995 8alan¢e brou9ht forward at l November 31,6 1.282 829,171 863,209 867,204 8al8rtce carrled forward at 31 October 23,846 1.285 832,881 861,496 863,209 10
Stsplehurst Free Church Balance sheet at 31 October 2020 General Missionary Fund Fund Youth Building Fund Fund Total Total 2019 2020 Flxed assets Buikling ¢osl 1.260.4(Q 1,260.4CK) 1.260.400 Depreciation for the year Accumulated depreciation -25,208 -25.208 -25.208 -1TI,195 -177.195 -151.987 Net building value 1.057,997 1,057.997 1.083,205 Current assets Cash at bank and in hand 19,588 1.285 24,357 31.662 Debtors Gift Aid reeoverable Holiday pay Liabilities: amounts falling due within one year Accruals Holiday pay accrua Loans Mortgage 5.938 5.938 8.175 1.159 521 1.159 521 1,569 2,003 133.333 4.478 1(.867 4.707 1(6.£67 4,707 Net current asset51(liabilities) 23,846 1.285 -111.374 42.759 -101.547 Long-lenn Liabilities Mortgage 113,743 113,743 111,450 1.285 832.881 861,496 863,209 Net assets 23,846 Funds: General Fund Missionary Fund Youth Fund Building Fund House party Fund 23.846 23.B46 31,666 1,091 1,282 829,171 1,285 1,285 832,881 832.881 Total funds 23,846 1.285 832.881 861,496 863,209
The Trustees consider that the charity is entitled lo exemption from the requirement lo have an audit under the provisions of Section 477 of the Companies Act 20061'The Acri and members have not required the Charity lo obtain an audit for the year in question In accordance with sectron 476 of the Act. The Trustees acknowledge their responsibilities lor ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparin9 financial statements which gNe a true and fair view of the slate of affairs of the charity as al 31 October 2019 and of its deficit for the year then ended in accordance with the requirements of section 396 of the Act and which othetwise comply with the qUIrementS of the Companies Act 2006 relatin9 lo the financial stslemenls so far as appluble to the charity. Approved ty the ging Trustees on and SKJned on their behatf ty Roy Laming 12
Staplehurst Free Church Notes to the financial statements for the year ended 31 October 2020 Accounting policies Basis of accounting The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom accounting standards and the Companies Act 2006. In preparing the financial statements the trust follows best practice as laid down in the Statement of Recommended Practice 'Accounting and Reporting by Charities" issued by the Charity Commission effective from January 2015. Income Donalions and interest received are accounted for in the year in which the trust is entitled to receive thern. Expenditure All expenditure is accounted for on an accruals basis and, in accordance with the requirement of the SORP, and has been classified under headings that aggregate all costs related lo that category. In accordan with the requirements of the Statement of Recommended Practice "Accounting and Reporting by Charities. all expenditure has been classified under standard headings - [the Charity has taken advantage of concessions provided by SORP and prepared headings to suit the charity as opposed to by activity categories which would apply to larger charities subjected to an auditl. Depreciation on the building is depreciated on a straight-line basis over 50 years. Funds The general fund is available for use at the discretion of the trustees in furtherance of the general objectives ofthe charity. Designated fvnds are unrestricted funds eamarked by the Trustees for particular purposes. Details of designated funds are as follows.. Missionary fund- used for the support of missionaries overseas and in the UK and charitieslmission organisations as approved by the Leadership Team. Youth fund - used to subsidise youth activities. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor_ Details of restricted funds a as follows.- Building fund - specifically for the repayment of the loans taken out to complete the onstruction of the church building. 13
Proje¢ts Total 2020 Total 2019 Barnabus Fund Children in Need Children's Trust Communty Centre for Debt Advice - Staplehurst Emmanuel Press UK Falconer Trust Farnily Trust Gideons Maidslone Churches Winter Shelter Maidstone Street Pastors Mission Aviation Fellowship Open Doors Orphaids UK Pancreatic Cancer UK Project Ecuador Release International Samaritan's Purse SASFiA Smethurst Ministries Tearfund Torch Trust Weald Family Hub Others 500 100 300 325 200 900 1,200 200 500 100 200 632 800 750 260 200 100 100 6¢)0 930 225 300 352 815 1,200 432 800 1.085 620 1250 800 1,175 7.604 11,747 Loans Loans totalling £311.000 have been made by Church members since March 2012. Over the past year £26,667 has been repaid using funds from the building fund. The balance of £106,666 has been requested by the lender to be repaid within 4 years and an action plan is in hand to fulfil this. Mortgage A loan of £150.000 was Gompleted on 3 April 2012 from the Childs Charitable Trust at the rale of 5.5% {variable) repayable over 25 years payable by monthly instalmenls of capital and interest of £876.89 the firsl payment having been made on 1 June 2012. The loan is secured on the land and building at Station Road. Staplehurst. Analysis of staff costs, trustee remuneration and expenses 2020 2019 Salaries and wa es Social securit costs Pension costs 16,037 3.611 1.592 31.491 6.106 2,994 14
No employees had employee beneffts in excess of £60.000 (2019.. £nili The adminislralor role continued to be filled on a part time basis throughout the whole year. The charity trustees were not paid or received any other benefils in the year for undertaking this voluntary role {2019= £nil). Any expenses incurred were reimbursed in the same way as with other church members. No charity trustee received payment for professional or other ServIS supplied to the charity (2019.. £nil). Related Party Transactions There have been no related party transactions in the year (2019_' £nil). 15