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2022-07-31-accounts

REGISTERED COMPANY NUMBER: 06959400 (England and Wales) REGISTERED CHARITY NUMBER: 1132161

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 July 2022

for

The Ark Community Church

Lanham and Company Limited Chartered Accountants 9 Great Chesterford Court London Road Great Chesterford Essex CB10 1PF

The Ark Community Church

Contents of the Financial Statements for the Year Ended 31 July 2022

Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 14

The Ark Community Church (Registered number: 06959400)

Report of the Trustees for the Year Ended 31 July 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2022. The trustees have adopted the provisions of 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

Objectives and aims

The objects of the charity are to advance the Christian faith. The policies adopted were outlined in the Ark's vision statement and the activities are reviewed below.

Significant activities

The Ark continues to support Christian evangelistic and humanitarian charitable initiatives amongst the homeless and disadvantaged in the UK and abroad. Regular food parcels and a number of grants were made to relieve hardship to several families, in the community. We participated in weekly voluntary work serving the homeless, supported the welfare of people in the surrounding vicinity and ran online and in-house church services for youth and adults to advance Christian faith.

Public benefit

The Trustees believe the activities continue to comply with the Charities Act 2006 with regard to public benefit. The information about the public benefit provided is set out in this report

Volunteers

The charity receives the benefit of work carried out by volunteers. No value is attributed to this work in the accounts. The organisation has no trading subsidiaries.

Tithes and Offerings

The organisation is run through regular voluntary gifts and offerings from individuals, known and unknown and tax return benefits. No income was received from outside the UK.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Ark conducted weekly church services, on-line and in-house small group meetings, youth work and regular outreach to the homeless and disadvantaged.

The church does voluntary work with OneYMCA and New Hope homeless charities in Watford to provide pastoral support, mentoring, spiritual and educational training. It has also served the work of other churches in the UK; supplying resources and running activities that support their programmes.

The Ark runs a foodbank for a number of families who were referred to the church by local schools. The foodbank is supported by voluntary contributions of non-perishable foods, labour and monies from the church's regular voluntary gifts and offerings.

Financial gifts sent to Africa, is done so through the charity, Eagles Wings.

In all our activities no public funds were raised by the church, nor did any of our activities take part outside of the UK.

There has been some change with individuals both leaving and joining The Ark.

Serious Incidents

There were none.

FINANCIAL REVIEW

Income and Expenditure

Overall income was £83,484 for the period, an increase on the previous year, including Gift Aid and GASD payments of £11,812.

Expenditure was £79,978, this has resulted in a surplus of £3,506.

Page 1

The Ark Community Church (Registered number: 06959400)

Report of the Trustees for the Year Ended 31 July 2022

FINANCIAL REVIEW

Salaries and Expenses

We have one salaried Pastor, who receives £40,094 for the year, plus pension contributions of £3,365 and travel expenses and a Treasurer is employed at £21.31 per hour for approximately 3 hours per week.

Reserves policy

The policy is to keep a minimum of two months of primary expenditure on hand.

The Trustees recognise that the reserves in hand, whilst still significant, will provide cover for losses for a limited time only. A sum of £7000 has been set aside for possible redundancy payments in the event that the church does not grow sufficiently in the next two years to cover the salary of the Pastor beyond that time.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, the memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

The power of appointing new Trustees is vested in the Trustees, who must take into account the skills mix and balance of the Board as a whole.

Induction and training of new trustees

As part of the induction process for new Trustees it has been agreed that they should familiarise themselves with the responsibility of charity trustees, read the Charity Commission booklet on the subject and carefully read the Memorandum and Articles of Association and the latest financial statements. All Trustees are DBS checked and receive training and updates every three years about Safeguarding protocols from the Designated Person.

Risk management

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to mitigate those risks.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

06959400 (England and Wales)

Registered Charity number

1132161

Registered office

5 Butterwick Garston Watford Hertfordshire WD25 9SD

Trustees

Ms N B Dyett Mr C Lindop (resigned 3.2.23) Mrs C Reynolds (resigned 3.2.23) Miss S Clark Mr C G E Jones (resigned 18.6.22) Mrs J Evans (appointed 3.2.23) Mr N Sparks (appointed 3.2.23) Mr J Gardner (appointed 3.2.23) Mrs J Nielsen (appointed 3.2.23)

Page 2

The Ark Community Church (Registered number: 06959400)

Report of the Trustees for the Year Ended 31 July 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Independent Examiner

Lanham and Company Limited Chartered Accountants 9 Great Chesterford Court London Road Great Chesterford Essex CB10 1PF

Bankers

Santander Bank Bootle Merseyside

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The Ark Community Church for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 24 April 2023 and signed on its behalf by:

Ms N B Dyett - Trustee

Page 3

Independent Examiner's Report to the Trustees of The Ark Community Church

Independent examiner's report to the trustees of The Ark Community Church ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2022.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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 Company as required by Section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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.

Andrew Ireland FCCA

Lanham and Company Limited Chartered Accountants 9 Great Chesterford Court London Road Great Chesterford Essex CB10 1PF

25 April 2023

Page 4

The Ark Community Church

Statement of Financial Activities for the Year Ended 31 July 2022

31.7.22 31.7.21
Unrestricted Restricted Total Total
funds funds funds funds
Notes £ £ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 71,010 6,398 77,408 64,493
Charitable activities 4
Advance the Christian Faith 6,058 - 6,058 6,180
Investment income 3 19 - 19 4
Total 77,087 6,398 83,485 70,677
EXPENDITURE ON
Raising funds - - - 60
Charitable activities 5
Advance the Christian Faith 73,596 6,383 79,979 72,040
Total 73,596 6,383 79,979 72,100
NET INCOME/(EXPENDITURE) 3,491 15 3,506 (1,423)
RECONCILIATION OF FUNDS
Total funds brought forward 37,188 81 37,269 38,692
TOTAL FUNDS CARRIED FORWARD 40,679 96 40,775 37,269

The notes form part of these financial statements

Page 5

The Ark Community Church (Registered number: 06959400)

Balance Sheet 31 July 2022

31.7.22 31.7.21
Unrestricted Restricted Total Total
funds funds funds funds
Notes £ £ £ £
FIXED ASSETS
Tangible assets 11 897 - 897 1,135
CURRENT ASSETS
Debtors 12 12,328 - 12,328 4,675
Cash at bank and in hand 30,990 96 31,086 35,018
43,318 96 43,414 39,693
CREDITORS
Amounts falling due within one year 13 (3,536) - (3,536) (3,559)
NET CURRENT ASSETS 39,782 96 39,878 36,134
TOTAL ASSETS LESS CURRENT
LIABILITIES 40,679 96 40,775 37,269
NET ASSETS 40,679 96 40,775 37,269
FUNDS 14
Unrestricted funds 40,679 37,188
Restricted funds 96 81
TOTAL FUNDS 40,775 37,269

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 25 April 2023 and were signed on its behalf by:

Miss S Clark - Trustee

The notes form part of these financial statements

Page 6

The Ark Community Church

Notes to the Financial Statements for the Year Ended 31 July 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

There are no material uncertainties that would cast doubt on the charity's ability to continue as a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery - 10% on cost Fixtures and fittings - 20% on cost Computer equipment - 33% on cost

Tangible fixed assets costing more than £250 are capitalised and included at cost including any incidental expenses of acquisition.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

continued...

Page 7

The Ark Community Church

Notes to the Financial Statements - continued for the Year Ended 31 July 2022

1. ACCOUNTING POLICIES - continued

Financial instruments

Financial assets and liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

Trade debtors and creditors are classed as basic financial instruments and are initially measured at transaction price.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and short-term deposits with an original maturity date of three months or less.

2. DONATIONS AND LEGACIES

31.7.22 31.7.21
£ £
Giving and donations 65,596 55,585
Gift aid 11,812 8,908
77,408 64,493
3. INVESTMENT INCOME
31.7.22 31.7.21
£ £
Deposit account interest 4 -
HMRC interest 15 4
19 4
4. INCOME FROM CHARITABLE ACTIVITIES
31.7.22 31.7.21
Activity £ £
Stewardship Advance the Christian Faith 6,058 6,180
5. CHARITABLE ACTIVITIES COSTS
Grant
funding of
activities
Direct (see note Support
Costs 6) costs Totals
£ £ £ £
Advance the Christian Faith 60,464 17,510 2,005 79,979

continued...

Page 8

The Ark Community Church

Notes to the Financial Statements - continued for the Year Ended 31 July 2022

6. GRANTS PAYABLE
31.7.22 31.7.21
£ £
Advance the Christian Faith 17,510 17,679
The total grants paid to individuals during the year was as follows:
31.7.22 31.7.21
£ £
Various 17,510 17,679
7. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
31.7.22 31.7.21
£ £
Depreciation - owned assets 238 184
Independent Examiners Report 600 550
Accounting services 1,175 915
8. TRUSTEES' REMUNERATION AND BENEFITS
31.7.22 31.7.21
£ £
Trustees' salaries 39,899 39,170
Trustees' social security 4,434 4,189
Trustees' pension contributions to money purchase schemes 3,365 3,299
47,698 46,658
Trustees' expenses
One trustee was reimbursed for mileage and parking costs totalling £3,025 (2021: £2,033).
9. STAFF COSTS
The average monthly number of employees during the year was as follows:
Direct charitable
No employees received emoluments in excess of £60,000.
31.7.22

2
31.7.21
2

The total remuneration for key management personnel during the year was £47,893 (2021: £46,658).

continued...

Page 9

The Ark Community Church

Notes to the Financial Statements - continued for the Year Ended 31 July 2022

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
funds funds funds
£ £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 63,193 1,300 64,493
Charitable activities
Advance the Christian Faith 6,180 - 6,180
Investment income 4 - 4
Total 69,377 1,300 70,677
EXPENDITURE ON
Raising funds 60 - 60
Charitable activities
Advance the Christian Faith 70,740 1,300 72,040
Total 70,800 1,300 72,100
NET INCOME/(EXPENDITURE) (1,423) - (1,423)
RECONCILIATION OF FUNDS
Total funds brought forward 38,611 81 38,692
TOTAL FUNDS CARRIED FORWARD 37,188 81 37,269
11. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£ £ £ £
COST
At 1 August 2021 and 31 July 2022 2,703 2,055 1,275 6,033
DEPRECIATION
At 1 August 2021 1,568 2,055 1,275 4,898
Charge for year 238 - - 238
At 31 July 2022 1,806 2,055 1,275 5,136
NET BOOK VALUE
At 31 July 2022 897 - - 897
At 31 July 2021 1,135 - - 1,135

All assets are used for charitable activities.

continued...

Page 10

The Ark Community Church

Notes to the Financial Statements - continued for the Year Ended 31 July 2022

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.22 31.7.21
£ £
Gift aid recoverable 11,826 4,185
Prepayments 502 490
12,328 4,675
13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.22 31.7.21
£ £
Trade creditors 663 733
Social security and other taxes 1,193 1,102
Accrued expenses 1,680 1,724
3,536 3,559
14. MOVEMENT IN FUNDS
Net Transfers
movement between At
At 1.8.21 in funds funds 31.7.22
£ £ £ £
Unrestricted funds
General fund 29,759 9,417 (5,612) 33,564
On the road 115 - - 115
Redundancy fund 7,000 - - 7,000
Hardship fund 314 (5,926) 5,612 -
37,188 3,491 - 40,679
Restricted funds
Specific gift fund 81 15 - 96
TOTAL FUNDS 37,269 3,506 - 40,775
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 76,206 (66,789) 9,417
Hardship fund 881 (6,807) (5,926)
77,087 (73,596) 3,491
Restricted funds
Specific gift fund 608 (593) 15
Foodbank 5,790 (5,790) -
6,398 (6,383) 15
TOTAL FUNDS 83,485 (79,979) 3,506

continued...

Page 11

The Ark Community Church

Notes to the Financial Statements - continued for the Year Ended 31 July 2022

14. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement At
At 1.8.20 in funds 31.7.21
£ £ £
Unrestricted funds
General fund 31,261 (1,502) 29,759
On the road 115 - 115
Redundancy fund 7,000 - 7,000
Hardship fund 235 79 314
38,611 (1,423) 37,188
Restricted funds
Specific gift fund 81 - 81
TOTAL FUNDS 38,692 (1,423) 37,269

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 58,037 (59,539) (1,502)
Hardship fund 11,340 (11,261) 79
69,377 (70,800) (1,423)
Restricted funds
Specific gift fund 1,300 (1,300) -
TOTAL FUNDS 70,677 (72,100) (1,423)

A current year 12 months and prior year 12 months combined position is as follows:

Net Transfers
movement between At
At 1.8.20 in funds funds 31.7.22
£ £ £ £
Unrestricted funds
General fund 31,261 7,915 (5,612) 33,564
On the road 115 - - 115
Redundancy fund 7,000 - - 7,000
Hardship fund 235 (5,847) 5,612 -
38,611 2,068 - 40,679
Restricted funds
Specific gift fund 81 15 - 96
TOTAL FUNDS 38,692 2,083 - 40,775

continued...

Page 12

The Ark Community Church

Notes to the Financial Statements - continued for the Year Ended 31 July 2022

14. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 134,243 (126,328) 7,915
Hardship fund 12,221 (18,068) (5,847)
146,464 (144,396) 2,068
Restricted funds
Specific gift fund 1,908 (1,893) 15
Foodbank 5,790 (5,790) -
7,698 (7,683) 15
TOTAL FUNDS 154,162 (152,079) 2,083

The General reserve represents the free funds of the charity which are not designated for particular purposes.

The restricted funds of the charity during the year were:

Specific Gift Fund

The fund was established to account for short term issues for example the Japanese earthquake relief where donations are made for specific but generally one-off causes.

Foodbank Fund

The fund is set up to support those referred to us by other organisations or persons and who require immediate assistance to help with the provision of food.

The designated funds of the charity during the year were:

Redundancy Fund

The fund was established to designate funds towards possible future redundancy costs.

On The Road Fund

The fund was set up keep gifts given to the charity when the charity took teams to other churches to cover the costs of going out next time or to use the gifts given at the time to reimburse costs of that trip.

Hardship Fund

The fund is set up to support those referred to us by other organisations or persons and who require immediate financial assistance to help with basic humanitarian needs.

Transfers between funds

The trustees transferred £5,612 from general funds to the Hardship fund to cover a shortfall.

continued...

Page 13

The Ark Community Church

Notes to the Financial Statements - continued for the Year Ended 31 July 2022

15. RELATED PARTY DISCLOSURES

Trustees made donations in the year totalling £9,541 (2021: £14,437).

16. ULTIMATE CONTROLLING PARTY

Throughout the period the charity was controlled jointly by it's trustees. There is no overall controlling party.

Page 14