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← Way Church

2023-12-31-accounts

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

REGISTERED COMPANY NUMBER: 06993403 (England and Wales) REGISTERED CHARITY NUMBER: 1133425

REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

WAY CHURCH (A COMPANY LIMITED BY GUARANTEE)

Fairhurst Statutory Auditor Chartered Accountants Douglas Bank House Wigan Lane Wigan Lancashire WN1 2TB

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 December 2023

Page
Report of the Trustees 1 to 4
Report of the Independent Auditors 5 to 8
Statement of Financial Activities 9
Statement of Financial Position 10
Statement of Cash Flows 11
Notes to the Statement of Cash Flows 12
Notes to the Financial Statements 13 to 20

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH (REGISTERED NUMBER: 06993403)

REPORT OF THE TRUSTEES for the Year Ended 31 December 2023

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 December 2023. 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 principal activity of the charitable company in the year under review was that of allowing the space created within the church to be occupied and enjoyed for the purpose of preaching and teaching the Gospel, in addition to being used for the benefit of the borough.

The aim for 2024 is to continue in this vein and to extend the charitable activities of the church.

Vision Statement

The reason Way exists is for all people to find their way to God. Our vision, based on Isaiah 40 v3-5, is to be a place where:

All people - no matter who they are, anyone and everyone is welcome in our church community Can find their way - can engage whatever point they are at on their journey to faith

To God - we want all to become followers of Jesus, in deep relationship with Him, because He is the answer

We have set out some specific areas of focus for the next 5-10 years, as follows:

Page 1

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH (REGISTERED NUMBER: 06993403)

REPORT OF THE TRUSTEES for the Year Ended 31 December 2023

STRATEGIC REPORT Achievement and performance

Overview of activities in 2023 and plans for 2024

We have continued to see growth across all our activities in 2023. Church attendance grew by approx. 12% on average across the year, which was reflected in increased giving through church offerings and donations. The introduction in late 2022 of a new Church system has improved our ability to manage important aspects of our community, including people registering, safeguarding controls, communication and finance management. We had 27 community groups by the end of 2023 covering a range of interests and activities and we have seen growth in our children and students' activities. Towards the end of 2023 we appointed a new member of the Lead Team, Jake Isaac, who will develop the creative and worship expressions of Way. This was a significant step to help us towards the 5 in 10 Vision that was set out as part of our reframe at the end of 2022.

The Community Grocery membership has continued to grow, with over 3,200 members by the end of 2023, an increase of around 33% compared to the end of 2022. As well as regular smaller groups happening throughout the year, we also hosted a summer fun day and a Christmas Pantomime for Grocery members to enjoy, at no cost to themselves. We have also seen many grocery members engaged in other groups and gatherings.

The Corporate hire of our rooms had a steady year, following significant post-COVID growth in 2022. Graham Hogg, one of our Trustees, was appointed as Sales Manager in November 2023, with a focus on growing the business further. Postcode Coffee House had an increase of around 27% in sales, which further increased the number of opportunities for us to engage with a range of people from our community.

The heart of all we do is to reach out to people and show them the love of God. We have continued to do this through our various church gatherings, hospitality in both the corporate hires and Postcode Coffee House, Community Grocery and by continuing to invest in future leaders through our engagement with church leaders in the Czech Republic.

During 2023 we also established Way Foundation as a mechanism for giving to other causes, both locally based and further afield. Through this we have established strong links with The Deanery High School, funded a free Christmas panto for around 1,000 local primary school children, as well as providing funding for the installation of solar panels at a children's home in Kenya.

The staff and Directors have continued to work hard over the year to create welcoming environments, increase our income in the various income streams, and steward well the income that is received. We commit to this to ensure that Way Church remains at the forefront of a loving, growing, serving community that is fit for purpose now and for many future years to come. We have made some initial steps toward our 5 in 10 vision which includes a Community Video/Music studio, a Community Wellbeing Counselling Centre and other features to engage with the community in general. As we move into 2024 our focus is to strengthen our team, optimise our current activity and prepare for future growth.

Financial review

Financial position

The Trustees and management set a budget (income and expenditure) at the start of each year and this is monitored closely throughout the year with the Trustees receiving monthly written reports as well as verbal reports during Trustee meetings.

Total income for the 12 months ended 31st December 2023 was £1,295,617 (2022: £1,147,830), with expenditure of £1,205,587 (2022: £1,108,621). There are no restricted reserves and therefore £91,030 (2022: £39,209) was added to the reserves of the Church.

Total repayments of £60,209 (2022: £74,142) were made during the year against the bank loans, leaving outstanding balances of £1,370,737 (2022: £1,430,949).

The charity has net current liabilities of £10,213 (2022: net current assets of £18,210), which is less than anticipated as the charity aims to keep this at a minimum of £150,000 to cover approximately 3 months employee costs and to act as operating capital.

Principal funding sources

The principal funding source is donations given by members of the congregation of the church.

Page 2

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH (REGISTERED NUMBER: 06993403)

REPORT OF THE TRUSTEES for the Year Ended 31 December 2023

STRATEGIC REPORT Financial review

Reserves policy

The Charity Reserves represent the unrestricted funds arising from past and current operating results.

Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

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.

Risk management

The trustees have assessed the major risks to which the charity is exposed: in particular those related to the operations and the finances of the Trust. The trustees are satisfied that the systems are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

06993403 (England and Wales)

Registered Charity number

1133425

Registered office

The Edge Riveredge Wigan Greater Manchester WN3 5AB

Trustees

Mr S Rodick Mrs A L Burton Mr D I Moore Mr G Hogg Mr B R Tarbuck Ms C Atherton (appointed 23/1/2023)

Auditors

Fairhurst Statutory Auditor Chartered Accountants Douglas Bank House Wigan Lane Wigan Lancashire WN1 2TB

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Way 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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Page 3

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH (REGISTERED NUMBER: 06993403)

REPORT OF THE TRUSTEES for the Year Ended 31 December 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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.

In so far as the trustees are aware:

AUDITORS

The auditors, Fairhurst, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by: 27 September 2024 | 12:26 BST

........................................................................ Mr B R Tarbuck - Trustee

Page 4

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WAY CHURCH

Opinion

We have audited the financial statements of Way Church (the 'charitable company') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 5

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WAY CHURCH

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 6

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF WAY CHURCH

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, The Companies Act 2006, UK Tax, employment, pension and health & safety regulations and we considered the extent to which non--compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and Charities Act.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements.

Our procedures to respond to risks identified included the following:

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspections of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 7

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

WAY CHURCH

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Dennis BA(Hons) FCA (Senior Statutory Auditor) for and on behalf of Fairhurst Statutory Auditor Chartered Accountants Douglas Bank House Wigan Lane Wigan Lancashire WN1 2TB 27 September 2024 | 12:29 BST Date: .............................................

Page 8

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 December 2023

Notes
INCOME AND ENDOWMENTS FROM
Charitable activities
5
Church activities
Other fundraising activities
Investment income
4
Other income
6
Total
EXPENDITURE ON
Charitable activities
7
Church activities
Other fundraising activities
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2023
Unrestricted
fund
£
723,213
572,216
1,188
-
1,296,617
695,702
509,885
1,205,587
91,030
3,583,050
3,674,080		 2022
Total
funds
£
567,268
574,499
63
6,000
1,147,830
615,423
493,198
1,108,621
39,209
3,543,841
3,583,050

The notes form part of these financial statements

Page 9

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH (REGISTERED NUMBER: 06993403)

STATEMENT OF FINANCIAL POSITION 31 December 2023

Notes
FIXED ASSETS
Tangible assets
13
CURRENT ASSETS
Stocks
14
Debtors
15
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
16
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
17
ACCRUALS AND DEFERRED INCOME
21
NET ASSETS
FUNDS
22
Unrestricted funds
TOTAL FUNDS		 2023
Total
funds
£
5,250,958
7,874
92,280
73,498
173,652
(183,865)
(10,213)
5,240,745
(1,339,515)
(227,150)
3,674,080
3,674,080
3,674,080		 2022
Total
funds
£
5,267,165
7,952
58,140
113,420
179,512
(161,302)
18,210
5,285,375
(1,411,725)
(290,600)
3,583,050
3,583,050
3,583,050

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 27 September 2024 | 12:26 BST

............................................. Mr B R Tarbuck - Trustee

The notes form part of these financial statements

Page 10

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

STATEMENT OF CASH FLOWS for the Year Ended 31 December 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Interest element of hire purchase payments
paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Loan repayments in year
Capital repayments on HP in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2023
£
145,513
(106,132)
(106)
39,275
(20,168)
300
1,188
(18,680)
(60,210)
(307)
(60,517)
(39,922)
113,420
73,498		 2022
£
87,321
(63,095)
(4,091)
20,135
(37,794)
-
63
(37,731)
(74,142)
(747)
(74,889)
(92,485)
205,905
113,420

The notes form part of these financial statements

Page 11

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

NOTES TO THE STATEMENT OF CASH FLOWS for the Year Ended 31 December 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
(Profit)/loss on disposal of fixed assets
Interest received
Interest paid
Interest element of hire purchase and finance lease rental payments
Decrease in stocks
Increase in debtors
Decrease in creditors
Net cash provided by operations		 2023
£
91,030
36,247
(172)
(1,188)
106,132
106
78
(34,140)
(52,580)
145,513		 2022
£
39,209
39,693
518
(63)
63,095
4,091
314
(31,628)
(27,908)
87,321

2. ANALYSIS OF CHANGES IN NET DEBT

At 1/1/23 Cash flow At 31/12/23 At 31/12/23
£ £ £
Net cash
Cash at bank and in hand 113,420 (39,922) 73,498
113,420 (39,922) 73,498
Debt
Finance leases (307) 307 -
Debts falling due within 1 year (70,000) - (70,000)
Debts falling due after 1 year (1,360,949) 60,210 (1,300,739)
(1,431,256) 60,517 (1,370,739)
Total (1,317,836) 20,595 (1,297,241)

The notes form part of these financial statements

Page 12

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Way Church is a charitable company, limited by guarantee, registered in England and Wales. The charitable company's registered number and registered office address can be found in the Report of the Trustees.

2. 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.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

The Trustees consider that there are no material uncertainties regarding the charitable company's ability to continue as a going concern.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Donations are recognised when receivable. Income from Gift Aid tax reclaims is recognised for any donations with relevant Gift Aid certificates. Any amounts of Gift Aid not received by the year-end are accounted for in income and accrued income within debtors.

Income received in advance for any future event is deferred until the criteria for income recognition is met.

Coffee shop income is recognised on point of sale.

Where income has related expenditure (as with fundraising or coffee shop income), the income and related expenditure are reported gross in the Statement of Financial Activities.

Expenditure and irrecoverable vat

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, 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.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Governance costs

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Support costs

Support costs include those relating to the finance function.

Tangible fixed assets

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

Freehold & long leasehold property

continued...

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Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets Motor vehicles - 33% on cost Office equipment - 20% on reducing balance

No depreciation has been provided on freehold property on the grounds that the depreciation charge and accumulated depreciation are not material. This is due to the high residual value of the land and building. The company performs an annual maintenance review and has a policy and practice of regular maintenance and repair, such that the asset is kept at its previously assessed standard of performance, and it is unlikely to suffer from economic or technological obsolescence.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The company is considered to pass the tests set out in Sch. 6, para1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Accordingly, the company is potentially exempt from taxation in respect of income received to the extent that such income is applied exclusively to charitable purposes.

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.

Unless stated otherwise in the notes to the financial statements, income and expenditure is unrestricted.

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.

Financial instruments

The company has elected to apply the provisions of FRS 102 Section 11 'Basic Financial Instruments' to all of its financial instruments.

The following assets and liabilities are classified as financial instruments; bank accounts, trade debtors, trade creditors, bank borrowings and accruals.

Financial instruments that are payable or receivable within one year are measured initially and subsequently at the undiscounted amount of the cash or other consideration that is expected to be paid or received.

continued...

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Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the charity's accounting policies, the trustees are required to make judgements, estimations and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources.

The estimates and underlying assumptions are reviewed on an ongoing basis.

No critical accounting estimates or judgements have been made by the trustees during the preparation of these accounts.

4. INVESTMENT INCOME

Deposit account interest
INCOME FROM CHARITABLE ACTIVITIES
Church
activities
£
Offerings and donations
595,574
Gift Aid
105,613
Fundraising events
9,013
Coffee shop income
-
Grants
1,000
Miscellaneous income
12,013
Commercial letting
-
Concerts
-
Conferencing
-
Arena (new build hire)
-
723,213		 Other
fundraising
activities
£
-
-
-
259,539
-
-
46,422
17,176
108,090
140,989
572,216		 2023
£
1,188
2023
Total
activities
£
595,574
105,613
9,013
259,539
1,000
12,013
46,422
17,176
108,090
140,989
1,295,429		 2022
£
63
2022
Total
activities
£
488,658
62,847
5,171
204,208
-
10,592
47,177
44,900
116,100
162,114
1,141,767

5. INCOME FROM CHARITABLE ACTIVITIES

6. OTHER INCOME

Other income relates to a Government COVID assistance grant that was provided during the prior year.

7. CHARITABLE ACTIVITIES COSTS

Church activities
Other fundraising activities		 Direct
Costs
£
690,095
509,885
1,199,980		 Support
costs (see
note 8)
£
5,607
-
5,607		 Totals
£
695,702
509,885
1,205,587

Page 15

continued...

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023

8. SUPPORT COSTS

Auditors remuneration
Fees paid to 3rd party in relation to accountancy support
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets
Surplus/(deficit) on disposal of fixed assets		 2023
£
4,617
990
2023
£
4,617
36,247
(172)		 2022
£
4,856
20,582
2022
£
4,856
39,693
518

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

10. TRUSTEES' REMUNERATION AND BENEFITS

No remuneration or benefits are paid to the trustees in respect of their duties as trustees.

Further details of these transactions are reported under Related Party Transactions.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.

11.
STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Paid employees		 2023
£
554,494
33,857
8,014
596,365
2023
55		 2022
£
496,979
24,565
5,933
527,477
2022
37

No employees received emoluments in excess of £60,000.

Page 16

continued...

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Charitable activities
Church activities
Other fundraising activities
Investment income
Other income
Total
EXPENDITURE ON
Charitable activities
Church activities
Other fundraising activities
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
fund
£
567,268
574,499
63
6,000
1,147,830
615,423
493,198
1,108,621
39,209
3,543,841
3,583,050

13. TANGIBLE FIXED ASSETS

COST
At 1 January 2023
Additions
Disposals
At 31 December 2023
DEPRECIATION
At 1 January 2023
Charge for year
Eliminated on disposal
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Freehold
& long
leasehold
property
£
5,082,157
-
-
5,082,157
-
-
-
-
5,082,157
5,082,157		 Motor
vehicles
£
11,266
-
-
11,266
1,599
1,933
-
3,532
7,734
9,667		 Office
equipment
£
387,323
20,168
(300)
407,191
211,982
34,314
(172)
246,124
161,067
175,341		 Totals
£
5,480,746
20,168
(300)
5,500,614
213,581
36,247
(172)
249,656
5,250,958
5,267,165

continued...

Page 17

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023

14. STOCKS

2023
£
Stocks
7,874
15.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023
£
Trade debtors
68,882
Other debtors
4,701
Prepayments and accrued income
18,697
92,280
16.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023
£
Bank loans and overdrafts (see note 18)
70,000
Hire purchase (see note 19)
-
Trade creditors
36,690
Social security and other taxes
19,980
VAT
14,796
Other creditors
14,768
Accruals and deferred income
27,631
183,865
17.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023
£
Bank loans (see note 18)
1,300,739
Other creditors
38,776
1,339,515
18.
LOANS
An analysis of the maturity of loans is given below:
2023
£
Amounts falling due within one year on demand:
Bank loans
70,000
Amounts falling between one and two years:
Bank loans - 1-2 years
70,000
Amounts falling due between two and five years:
Bank loans - 2-5 years
184,167
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal
1,046,572		 2022
£
7,952
2022
£
43,090
2,560
12,490
58,140
2022
£
70,000
307
20,614
15,255
21,000
15,559
18,567
161,302
2022
£
1,360,949
50,776
1,411,725
2022
£
70,000
70,000
194,167
1,096,782

continued...

Page 18

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023

19. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

Net obligations repayable:
Within one year		 2023
£
-		 2022
£
307

20. SECURED DEBTS

The following secured debts are included within creditors:
2023 2022
£ £
Bank loans 1,370,739 1,430,949

Lloyds Bank PLC holds a fixed and floating charge (dated 17th March 2016) over all the property or undertakings of the company.

The charge was extended on 25th March 2016 to cover the land that had been transferred to the company by Wigan Borough Council.

21. ACCRUALS AND DEFERRED INCOME

Accruals and deferred income
22.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS		 At 1/1/23
£
3,583,050
3,583,050
Incoming
resources
£
1,296,617
1,296,617

continued...

Page 19

Docusign Envelope ID: E45F5AC8-50DD-4D3C-B764-0710B2ADE2C1

WAY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2023

22. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
TOTAL FUNDS
Comparative net movement in funds, included in the above are a
Unrestricted funds
General fund
TOTAL FUNDS		 At 1/1/22
£
3,543,841
3,543,841
s follows:
Incoming
resources
£
1,147,830
1,147,830		 Net
movement
in funds
£
39,209
39,209
Resources
expended
£
(1,108,621)
(1,108,621)		 At
31/12/22
£
3,583,050
3,583,050
Movement
in funds
£
39,209
39,209

23. RELATED PARTY DISCLOSURES

Salary shown as trustees remuneration includes an amount paid to Annette Burton in respect of services as Corporate Manager.

Salary shown as trustees remuneration includes an amount paid to Ben Tarbuck in respect of services as Senior Leader of the Church.

Salary shown as trustees remuneration includes an amount paid to Graham Hogg in respect of services as Corporate Sales Manager.

24. ULTIMATE CONTROLLING PARTY

The company is limited by guarantee and therefore is controlled by the board of trustees.

Page 20