## Aigburth Community Church
Report and Accounts Year ended 31 July 2021
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **AIGBURTH COMMUNITY CHURCH**
## **CHARITY INFORMATION**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **Trustees**
Stephen Palframan Jeremy Clark Richard Moss Edward Peck Tommy Farrell Paul Hewitt Maurice Kinnaird (appointed 5 September 2021) Jonathan Critchley (appointed 5 September 2021)
## **Governing Document**
Deed of Trust dated 30 March 2009
## **Charity Registration Number**
1129291
## **Principal Address**
20 Woodland Road Aigburth Liverpool L17 0AW
## **Independent Examiner**
Archie McDowall Stewardship 1 Lamb's Passage London EC1Y 8AB
|**Contents**|**Page**|
|---|---|
|Charity Information|1|
|Trustees' Annual Report|2-3|
|Independent Examiner's Report|4|
|Statement of Financial Activities|5|
|Balance Sheet|6|
|Notes to the Accounts|7-11|
|Detailed Statement of Financial Activities with Comparatives|12|
Page 1
## **AIGBURTH COMMUNITY CHURCH**
## **TRUSTEES' ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 JULY 2021**
The trustees have pleasure in submitting the Report and Accounts for the year.
## **Objects of the charity**
The charity is a trust and is governed by its Trust Deed. The objects of the charity, as set out in the governing document are:
a) the advancement of the Christian faithin the UK ands the world, through the training and development of Christian ministers, the supportof Christian mission, and church planting initiatives.
b) the relief of hardship and sicknessby provision of funds, goods and services in the UK and the world.
## **Summary of the charity's main activities and achievements**
To further the above objects and vision, the charity's main activities and achievements were as follows:
Regular public meetings on Sundays, midweek gatherings, training of staff through conferences, apprenticeships and learning, teaching of the Christian faith in a variety of contexts and meetings and events for enquirers into the Christian faith.
In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission.
## **Structure, Governance and Management**
Responsibility for setting policy and for determining the parameters within which the charity should operate rests with the trustees who meet regularly to monitor the activities of the charity New trustees are recruited and appointed by the spiritual leadership, by a majority vote].
## **Financial review**
During the year income increased by £132,903, to £319,126, and expenditure decreased by £7,678, to £158,814. As a result surplus for the year increased by £140,581, to £160,312 and the charity's net assets increased by the same amount, to £251,866. Net current assets decreased by £55,988, to £35,686.
## **Reserves policy**
The trustees have determined that the charity should aim to hold unrestricted cash of between £49,000 and £56,200 to take account of risks to future changes in fundraising, potential large items of expenditure that might be required at short notice, future needs for building maintenance and investment, and future palns to invest in staff training. At the year end, the charity held unrestricted cash of £82,945 which is in excess of the policy because members had increased their giving and expenditure had been lower because of Covid.The excess amount will be used to reduce the level of the mortgage once the ongoing effects of Covid are clearer.
## **Key risks and uncertainties**
The charity is exposed to various risks - be they operational, financial or reputational. The trustees review the charity's activities regularly to identify significant risks and, where possible, they take appropriate measures to mitigate those risks.
Page 2
## **AIGBURTH COMMUNITY CHURCH**
## **TRUSTEES' ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **Responsibilities of trustees under charity law**
The trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements, the trustees are required to:
1. select suitable accounting policies and apply them consistently;
2. observe the methods and principles in the Charities SORP;
3. make judgements and estimates that are reasonable and prudent;
4. state whether the applicable accounting standards have been followed, subject to any material
departures disclosed and explained in the financial statements; and
5. prepare the financial statements on a going concern basis unless it is inappropriate to presume
that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Approval**
This report was approved by the trustees and signed on their behalf by:
## **Paul Hewitt**
_____________________________________ Paul Thomas Hewitt
Date: 30 May 2022
Page 3
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF**
## **AIGBURTH COMMUNITY CHURCH ('the Charity')**
I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 July 2021 on pages 7 to 12 following, which have been prepared on the basis of the accounting policies set out on pages 7 to 8.
## **Responsibilities and basis of report**
As the charity’s trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 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 the Institute of Chartered Accountants of Scotland, 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:
1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Archie McDowall Institute of Chartered Acciuntants of Scotland
Stewardship 1 Lamb's Passage London EC1Y 8AB
Date: 31 May 2022
Page 4
## **AIGBURTH COMMUNITY CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 JULY 2021**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Charitable activities
4
Investments
6
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities
5
**Total expenditure**
**Net income/(expenditure)**
**Transfers between funds**
14
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
14|Unrestricted
Funds
£
153,102
8,189
8
161,299
118,908
118,908
42,391
(14,658)
27,733
54,725
82,458|Restricted
Funds
£
157,827
-
-
157,827
39,906
39,906
117,921
14,658
132,579
36,849
169,428|Total
Funds
2021
£
310,929
8,189
8
319,126
158,814
158,814
160,312
-
160,312
91,574
251,886|Total
Funds
2020
£
171,267
14,934
22|
|---|---|---|---|---|
|||||186,223|
|||||166,492|
|||||166,492|
||||||
|||||19,731
-|
|||||19,731
71,843|
|||||91,574|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing operations.
The notes on page 7-12 form part of these accounts.
Page 5
## **AIGBURTH COMMUNITY CHURCH**
## **BALANCE SHEET**
## **AS AT 31 JULY 2021**
|Note
**FIXED ASSETS**
Tangible assets
7
**CURRENT ASSETS**
Debtors
8
Cash at bank and in hand
9
**CREDITORS: Amounts falling**
**due within one year**
10
**Net current assets / (liabilities)**
**Total assets less current liabilities**
**CREDITORS: Amounts falling due**
11
**after more than one year**
**TOTAL NET ASSETS**
**FUND BALANCES**
14
Unrestricted Funds
Restricted Funds|Unrestricted
Funds
£
162,382
162,382
259
82,945
83,204
(59,957)
23,248
185,630
(103,172)
82,458
82,458
-
82,458|Restricted
Funds
£
156,989
156,989
-
12,438
12,438
-
12,438
169,427
-
169,427
-
169,427
169,427|Total
Funds
2021
£
319,371
319,371
259
95,384
95,643
(59,957)
35,686
355,058
(103,172)
251,886
82,458
169,427
251,886|Total
Funds
2020
£
-|
|---|---|---|---|---|
|||||-|
|||||-
91,574|
|||||91,574
-|
|||||91,574|
||||||
|||||91,574
-|
|||||91,574|
|||||91,574
-|
|||||91,574|
The financial statements were approved by the Board of Trustees and were signed on its behalf by:
## **Paul Hewitt**
--------------------------------------Date: 30 May 2022 Paul Hewitt
Charity number: 1129291
The notes on page 7-12 form part of these accounts.
Page 6
## **AIGBURTH COMMUNITY CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **1 Statutory Information**
The charity is Trust registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.
## **2 Accounting Policies**
These financial statements are prepared on a going concern basis, under the historical cost convention.
These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.
The previous year's accounts were prepared using the receipts and payments basis but, this year, the charity was obliged to prepare its accounts using the accruals basis. The charity did not have any significant assets or liabilities at 31 July 2020 and 31 July 2019 and the charity has not had to re-state the results reported previously.
The principles adopted in the preparation of the financial statements are set out below.
## a) Going concern
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## b) Income
Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations and legacies includes recoverable gift aid, which is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church retreats and other events and courses and from letting the charity's facilities for the benefit of the local community.
## c) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
Page 7
## **AIGBURTH COMMUNITY CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 JULY 2021**
## d) Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
## e) Tangible fixed assets
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £1,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Freehold property Over 100 years Furniture and equipment Over 5 years
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
## f) Pension scheme arrangements
The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.
## g) Taxation
The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
## h) Financial instruments
The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).
## i) Exemption from preparing a cashflow statement
The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.
j) Critical accounting estimates and areas of judgement The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.
## **3 Donations and legacies**
|**3**
**Donations and legacies**|||
|---|---|---|
|Donations of cash and similar
Grants receivable
**4**
**Income from charitable activities**
Church retreats and other activities
Letting of facilities to benefit the local community|2021
£
262,198
48,730
310,929
2021
£
-
8,189
8,189|2020
£
155,683
15,584|
|||171,267|
|||2020
£
3,753
11,182|
|||14,934|
Page 8
## **AIGBURTH COMMUNITY CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 JULY 2021**
|**5**
**Charitable expenditure**
**a**
**Costs incurred directly on specific activities**
Staff costs
Staff accommodation
Travel and subsistence (including mission travel and visa expenses)
Training
Events and retreats
Other ministry expenses
Small items of equipment
Repairs and maintenance
Venue hire
Utilities
Grants payable (note 5c)
**b**
**Costs incurred on support & administration**
Governance costs
Independent examiner's fee for preparing and examining the accounts
Administrative expenses
Subcriptions payable to FIEC
Legal and professional fees
Depreciation of tangible fixed assets
Mortgage interest
**Total expenditure**|2021
91,500
23,809
365
4,175
236
3,181
3,758
4,293
479
4,824
136,621
15,166
151,787
1,500
683
1,845
1,007
948
1,045
7,027
158,814|2020
92,236
17,420
8,725
4,455
4,485
4,255
2,219
1,387
5,658
5,626|
|---|---|---|
|||146,465
15,276|
|||161,741|
|||-
658
2,179
1,914
-
-|
|||4,751|
|||166,492|
The fee payable to the independent examiner for preparing and examining the accounts was £1,500; in addition the charity paid £2,051 to Stewardship for payroll bureau and mortgage services.
## **c Grants payable**
The charity paid the following grants to institutions to promote UK and overseas mission:
|charity paid the following grants to institutions to promote UK and overseas mission:|||
|---|---|---|
|Radstock Ministries
Trinity Church Everton
UFM
Holy Foundation Baptist Church, Mongolia
Grants to institutions for less than £1,000 each|2021
£
10,318
2,200
1,360
1,288
-
15,166|2020
£
11,841
2,000
1,360
-
75|
|||15,276|
## **6 Analysis of staff costs, the cost of key management personnel and trustee remuneration**
The average monthly number of employees during the year was 5. Most of the charity's activities are carried out by volunteers.
No staff received salaries at a rate of more than £60,000 per annum.
The charity's key management comprise the trustees named on the Charity Information page. Total employment benefits payable to key management for the year were as follows:
|Employer
Wages &
pension
salaries
contributions
Trustees:
Stephen Palframan
25,340
3,734
Tommy Farrell
27,231
2,723|2021
£
29,074
29,954|
|---|---|
||59,028|
Stephen Palframan and Tommy Farrell served as church leaders and received the above payments for serving in that capacity, not for serving as trustees; these payments are permitted by the charity's governing document.
In addition the charity made payments totalling £12,000 to Stephen Palframan for a property that he owns and uses as a manse. The provision of manse to church leaders is customary and allows then to better perform their duties.
Page 9
## **AIGBURTH COMMUNITY CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **7 Tangible fixed assets**
|Cost
At 1 August 2020
Additions
At 31 July 2021
Accumulated depreciation
At 1 August 2020
Charge for the year
At 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020
**8**
**Debtors**
Other debtors
**9**
**Cash at Bank and in Hand**
Cash at bank with immediate access
**10**
**Creditors: liabilities falling due within one year**
Trade creditors
Accruals
Mortgage
**11**
**Creditors: amounts falling due after more than one year**
Mortgage|Freehold
Property
£
-
307,251
307,251
-
512
512
306,739
-|Furniture &
Equipment
£
-
13,068
13,068
-
436
436
12,632
-
2021
£
259
259
2021
£
95,384
95,384
2021
£
12,768
1,500
45,689
59,957
2021
£
103,172
103,172|Total
2021
£
-
320,319|
|---|---|---|---|
||||320,319|
||||-
948|
||||948|
||||319,371|
||||-|
||||2020
£
-|
||||-|
||||2020
£
91,574|
||||91,574|
||||2020
£
-
-
-|
||||-|
||||2020
£
-|
||||-|
## **12 Loans and finance leases**
The liabilities for the mortgage referred to in notes 10 and 11 fall due for repayment as follows:
|Repayable:
Within one year
Between one and five years
After five years|Otherwise
than by
instalments
40,000
-
-
40,000|By
instalments
5,689
23,660
79,512
108,861|2021
2020
£
£
45,689
-
23,660
-
79,512
-
148,861
-
Mortgage|2021
2020
£
£
45,689
-
23,660
-
79,512
-
148,861
-
Mortgage|
|---|---|---|---|---|
|||||-|
The mortgage referred to in the above notes is secured on the charity's property, which has been pledged as security for the mortgage. Interest is payable at a variable rate, which at the balance sheet date was 3.8%. The charity repaid £40,000 shortly after the year end and the remainder of the loan is being repaid in monthly instalments and must be repaid in full by 2038.
Page 10
## **AIGBURTH COMMUNITY CHURCH**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 JULY 2021**
## **13 Pension commitments**
During the year employer’s pension contributions totalling £7,846 were payable to defined contribution personal pension schemes. No pension contributions were owing at the balance sheet date (2020: £nil).
## **14 Funds**
During the year the movements in the charity's funds were as follows:
|_Restricted funds_
Building fund
Missionary support fund
Minstry training fund
Ministry staff fund
_Unrestricted Funds_
Aggregate of funds|Opening
balance
2021
£
20,692
-
6,726
9,431
-
36,848
54,726
91,574|Incoming
resources
2021
£
131,171
1,452
7,780
17,423
157,827
161,299
319,126|Outgoing
resources
2021
£
(891)
(9,400)
(9,006)
(20,608)
(39,906)
(118,908)
(158,814)|Transfers
in the year
2021
£
6,017
8,641
-
-
14,658
(14,658)
-|Closing
balance
2021
£
156,989
693
5,500
6,245
-|
|---|---|---|---|---|---|
||||||169,427
82,458|
||||||251,886|
During the year, the trustees transferred funds from the general fund to:
a) the **Building** fund to meet a shortfall between the cash paid on the completion of the property purchase and the donations received.
- b) the **Ministry** training fund to clear a deficit that would have been reported otherwise.
## **Analysis of net assets by fund**
The assets and liabilities of the various funds were as follows:
|Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year
Creditors falling due after one year|General
funds
£
162,382
259
82,945
(59,957)
(103,172)
82,458|Restricted
funds
£
156,989
-
12,438
-
-
169,427|2021
£
319,371
259
95,384
(59,957)
(103,172)|
|---|---|---|---|
||||251,886|
The **Building** fund was created from donations received to help purchase a building for use in the charity's activities. This building was purchased during the year from the donations recevied and a mortgage. The carried forward balance on the building fund is represented by the portion of the purchase price funded by donations less the restricted fund's share of the annual charge for depreciation.
The **Missionary support** fund was created from donations received to help support UK and overseas mission. The **Ministry training** fund was created from donations received to help train ministers.
The **Ministry staff** fund was created from donations received to help employ a minister.
## **16 Transactions with related parties**
Except for the reimbursement of expense incurred when acting as agent for the charity, or incurred when undertaking employment duties, no expenses were paid to (or for) the trustees.
Except as disclosed in note 6 'Analysis of staff costs', there have been no other transactions with related parties during the year.
Page 11
## **AIGBURTH COMMUNITY CHURCH**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES**
## **FOR THE YEAR ENDED 31 JULY 2021**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Charitable activities
4
Investments
6
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities:
5
**Total Expenditure**
**Net income/(expenditure)**
**Transfers between funds**
14
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
14||General
Designated
2021
2021
£
£
153,102
-
8,189
-
8
-
161,299
-
118,908
-
118,908
-
42,391
-
(14,658)
14,658
27,733
14,658
54,725
-
82,457
14,658
Unrestricted funds|Restricted
2021
£
157,827
-
-
157,827
39,906
39,906
117,921
-
117,921
36,849
154,770|Total
2021
£
310,929
8,189
8
319,126
158,814
158,814
160,312
-
160,312
91,574
251,886|||General
Designated
2020
2020
£
£
110,228
-
14,934
-
22
-
125,184
-
132,502
-
132,502
-
(7,318)
-
-
-
(7,318)
-
62,043
-
54,725
-
Unrestricted funds|Restricted
2020
£
61,039
-
-
61,039
33,990
33,990
27,049
-
27,049
9,800
36,849|Total
2020
£
171,267
14,934
22
186,223
166,492
166,492
19,731
-
19,731
71,843
91,574|
|---|---|---|---|---|---|---|---|---|---|
Page 12