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2023-03-31-accounts

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HOPE CHURCH LUTON TRUST

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDING 31ST MARCH 2023

Company number: 07131310

Charity number: 1133954

HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

Contents

Page number

1 – 6 Trustees’ Annual Report
7 Independent Examiner’s Report
8 Statement of Financial Activities
9 Balance Sheet
10 – 14 Notes to the Financial Statements

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

The Trustees present their annual report and the financial statements of the church for the period ended 31st March 2023.

AIMS AND OBJECTIVES

The church’s purposes, as more fully set out in the objects which form part of its Memorandum of Association, are:

REVIEW OF ACTIVITIES

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Church’s aims and objectives and in planning future activities.

The Church operates in association with the Catalyst Sphere of Newfrontiers. All are welcome to attend our Sunday services when activities and groups are provided for children and youth, with a crèche for babies.

Major Developments April 2022 to March 2023

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

FINANCIAL REVIEW

Income

generation

The church’s total income for the year was £206,659 ( 2022: £196,619). Donations of £119,885 have been received during the year (2022: £121,479). Activities for generating funds have increased significantly to £21,323 (2022: £8,382). Lettings income is recovering towards historical figures following the impact of COVID, although we are still slightly short of our budgeted level of £22,000 for 2022/23.

Expenditures

Total Expenditures were £201,240 (2022: £196,021). The increase is due to increased expenditure on a variety of budget areas, particularly our office services and catering budget lines. This is due to an increased number of events following the end of COVID restrictions and the re-introduction of Membership courses, Baptisms, church lunches Welcome evenings. We are also now providing international support to missionaries sent out from Hope Church.

Funds

Overall funds have increased by £5,419 throughout the year. General funds have decreased by £17,331 over the year as income decreases exceeded expenditure decreases. This is also part of our budgeted plan to employ a new assistant pastor in expectation of a change in church leadership from 2024.

The Capital fund has increased by £21,466 due to cumulative mortgage payments being recognised. Restricted funds have increased by £1,364 due to the successful accumulation of grants of the Edible High Town project. FACES funds are now removed from HCL finances, although the Church is still managing the FACES staff function by secondment.

Reserves policy

The church holds unrestricted and restricted funds. Transfers are made from unrestricted to restricted funds in order to prevent restricted funds from going into deficit. Our overall policy for unrestricted funds is only to increase reserves above a minimum threshold necessary to operate the organisation (not more than 3 months expenditure) or where specific projects are being planned for subsequent years.

Trustees anticipate a review of this policy, providing more clarity on minimum and maximum level of reserves required for both restricted and unrestricted funds.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Hope Church Luton Trust is a company limited by guarantee, incorporated on 20th January 2010 and registered as a charity on 1st February 2010. The church previously operated as an unincorporated charity. The company was established by a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Appointment of responsible individuals and elders

The Church is governed by its responsible individuals, who are appointed according to the Articles of Association.

The responsible individuals and elders, who are Directors for the purpose of company law and Trustees for the purpose of charity law, who served during the period up to the date of this report are set out on page 5. Responsible Individuals and Elders are closely involved in the church’s operations prior to appointment and are appointed according to their ability to lead the church and the skills they bring to the post. Existing Responsible Individuals, Elders and new appointees have a good knowledge of the operation of the Church prior to appointment.

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

Responsible Individuals and Elders are aware of the legal requirements in connection with the charitable company. New appointees are supported in their posts by existing appointees. New appointees are also provided with copies of the Memorandum and Articles of Association, latest financial statements and guidance from the Charity Commission, including the Charity Commission guide ‘The Essential Trustee’.

Risk management

The Trustees have assessed the major risks to which the church is exposed, in particular those relating to the operations and finances of the church. The Trustees are satisfied that systems are in place to mitigate their exposure to major risk.

REFERENCE AND ADMINISTRATIVE INFORMATION

Company Registration No: 07131310 Charity Registration No: 1133954 MANAGING TRUSTEES/DIRECTORS Trustees/Directors: Tony Thompson John Telford Michael Reynolds REGISTERED ADDRESS Hope Church Luton Villa Road Off Old Bedford Road Luton Bedfordshire. LU2 7NT England INDEPENDENT EXAMINER Mervyn Thomas (Coopted to attend Board meetings) 128 Putnoe Lane Bedford, MK41 8LS PRINCIPAL BANKERS NatWest Bank 501 Silbury Boulevard Milton Keynes. MK9 3ER

TRUSTEES’ RESPONSIBILITIES

The Trustees/Directors are responsible for preparing the Trustees’ Annual Report and financial statements in accordance with applicable laws and regulations.

Company law requires the Trustees/Directors to prepare financial statements for each financial year. Under that law, the Trustees/Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

The Trustees/Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and 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.

SMALL COMPANY PROVISIONS

This report has been prepared in accordance with the 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 United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011 and in accordance with the small companies regime under the Companies Act 2006.

ON BEHALF OF THE TRUSTEES

his mark !!!

Dated: 6th June 2023

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF HOPE CHURCH LUTON

TRUST

on the accounts for the year to 31[st] March 2023 as set out on pages 8 – 14 in this document.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

Independent examiner's statement

It is my responsibility to:

My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently, no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that in, any material respect, the requirements:

Signed:

Mervyn Thomas 128 Putnoe Lane Bedford MK41 8LS

Dated: 24/05/2023

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

STATEMENT OF FINANCIAL ACTIVITIES

At 31st March 2023

At 31st March 2023
Notes Unrestricted Restricted Endowment Total Funds Total Funds
Funds Fund Funds 2023 2022
£ £ £ £ £
Incoming Resources
Voluntary income 132,765 13,991 - 146,756 149,348
Activities for generating funds 19,963 1,360 - 21,323 8,382
Charitable activities - Grants 1,000 37,580 - 38,580 38,889
Total Incoming Resources 3 153,728 52,931 - 206,659 196,619
Resources Expended
Raising funds - - - - 225
Charitable activities 149,593 51,647 - 201,240 195,796
Total Resources Expended 4 149,593 51,647 - 201,240 196,021
Net income/(expenditure) 4,135 1,284 - 5,419 598
Transfers between funds (21,466) 80 21,386 - -
Net movement in funds (17,331) 1,364 21,386 5,419 598
Reconciliation of funds:
Total funds brought forward 32,465 23,006 396,098 451,569 450,971
Total funds carried forward 15,134 24,370 417,484 456,988 451,569

(Continued)

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

BALANCE SHEET

At 31st March 2023

BALANCE SHEET
At 31st March 2023
Notes Unrestricted Restricted Endowment Total Funds Total Funds
Funds Fund Funds 2023 2022
£ £ £ £ £
Fixed assets 5 596,948 596,948 596,948
Current assets
Debtors (less than 1 year) 6 2,972 - - 2,972 4,219
Cash at bank and in hand 12,162 24,370 - 36,533 51,609
Total current assets 15,134 24,370 - 39,505 55,828
Short Term Liabilities 7 - - - - (357)
Long term liabilities -
Mortgage (179,465) (179,465) (200,850)
Total assets less liabilities 15,134 24,370 417,483 456,988 451,569
Charity Funds 8
Unrestricted funds 15,134 15,134 32,465
Restricted Funds 24,370 24,370 23,006
Endowment Fund 417,484 417,484 396,098
Total funds 15,134 24,370 417,484 456,988 451,569

For the year ending 31st March 2023, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime under the Companies Act 2006 and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011.

ON BEHALF OF THE TRUSTEES

Dated:

Trustee/Director

The notes on pages 10 to 14 form part of these financial statements.

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

NOTES TO THE FINANCIAL STATEMENTS

1 BASIS OF PREPARATION

1.1 Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The accounts 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

and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). and with the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

1.2 Going concern

The Charity is a going concern. Income generation through members’ donations is maintaining adequate reserves

1.3 Change of accounting policy

The accounts present a true and fair view and the accounting policies adopted are those outlined in note 2.

1.4 Changes to accounting estimates

No changes to accounting estimates have occurred in the reporting period

2. ACCOUNTING POLICIES

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period.

2.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. and in accordance with the Companies Act 2006 and the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) and with the Charities Act 2011.

2.2 Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the church. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal. Transfers are made from unrestricted to restricted funds as necessary to prevent restricted funds from going into deficit. The Endowment or Capital fund is to hold the Church Property.

2.3 Incoming resources

All incoming resources are included in the Statement of Financial Activities (SoFA) when the church becomes entitled to the income, it is more likely than not that it will receive the resources and the amount can be quantified with reasonable accuracy. Voluntary income is received by way of donations and gifts and is included in full in the SoFA when receivable. Grants are included in the SoFA when the general income recognition criteria above are met and in the case of performance-related grants income is recognised to the extent that the specified goods or services have been provided. Donated services and facilities are included at the value to the church where this can be measured reliably. The value of services provided by volunteers has not been included in these accounts. Investment income is included when received.

2.4 Resources Expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT that cannot be fully recovered, which is reported as part of the expenditure to which it relates. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the church (as a charitable company) and include the audit fees and costs linked to the church’s legal constitution.

2.5 Fixed assets

No depreciation is provided on freehold land or buildings, following a change in accounting policy implemented in the Accounts for the period ended 31st March 2018.

2.6 Pension costs

Employees of the church are entitled to join a defined contribution pension scheme. The church contribution is limited to the contributions disclosed in note 3.

2.7 Debtors

Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amounts advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.

2.8 Creditors

Creditors (including accruals) are recognised when due at the balance sheet date.

3. ANALYSIS OF INCOME

Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
Voluntary Income
£
£
£
£
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
Voluntary Income
£
£
£
£
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
Voluntary Income
£
£
£
£
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
Voluntary Income
£
£
£
£
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
Voluntary Income
£
£
£
£
Donations 107,853 12,032 119,885 121,479
Gift Aid 24,912 1,959 26,871 27,869
Total Voluntary Income 132,765 13,991 146,756 149,348
Activities for generating funds
Building Hire 16,962 - 16,962 5,417
Car Park 2,390 - 2,390 1,410
Sales (Books, Courses and Events) 111 1,360 1,471 1,555
Bank Compensation 500 - 500
Total Activities for generating Funds 19,963 1,360 21,323 8,382
Charitable Activities
Grants 1,000 37,580 38,580 38,889
Grand Total Incoming Resources 153,728 52,931 206,659 196,619

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

4.1 ANALYSIS OF EXPENDITURE

Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
Expenditure on raising funds
£
£
£
£
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
Expenditure on raising funds
£
£
£
£
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
Expenditure on raising funds
£
£
£
£
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
Expenditure on raising funds
£
£
£
£
Unrestricted
Restricted
Total Funds
Total Funds
Funds
Funds
2023
2022
Expenditure on raising funds
£
£
£
£
Total expenditure on raising funds - - - 225
Expenditure on Charitable Activities
Employee Salaries 83,091 22,096 105,187 103,707
Employer's National Insurance 24,012 - 24,012 23,619
Pension Contributions 10,360 - 10,360 9,608
Sub Contractors - - - 300
Expenses 350 3,399 3,749 10,068
Visiting Speakers 170 2,187 2,357 250
Training - - - 495
Total Staff Costs 117,983 27,682 145,665 148,047
Utilities 6,491 - 6,491 5,536
Maintenance 3,803 - 3,803 6,586
Insurance 2,314 - 2,314 2,051
Office Services and Supplies 2,895 2,144 5,039 2,551
Subscriptions 1,749 - 1,749 2,582
Legal and professional - - - 724
Equipment - - - 824
Catering 762 6,763 7,525 4,126
Mortgage Interest 8,511 - 8,511 9,494
Governance 305 - 305
Bank Charges 304 - 304 273
Total Establishment Costs 27,134 8,907 36,041 34,747
Children 26 - 26 -
Youth 517 295 812 189
Conferences and Events 651 1,820 2,471 164
Resources (34) 319 285 28
Total Ministry Costs 1,160 2,434 3,594 381
International 2,134 9,524 11,658 6,816
Faces Charity - - - 5,408
Local Donations 1,182 3,100 4,282 397
Total Donations
TOTAL EXPENDITURES
3,316
149,593
12,624
51,647
15,940
201,240
12,621
196,021

4.2 Remuneration

No employees received salaries or employee benefits (excluding employer pension costs) for the reporting period of more than £60,000

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

4.3 Average headcount in the year 2023
2022
Functional Department
Charitable Activities
Governance
Total
6
6
-
-
6
6
6

4.4 Trustees Disclosures

Mr Tony Thompson receives remuneration as Pastor of the Church. Mr Jonathan Adams receives remuneration as Pastor of the Church. No trustee has received expenses in connection with trustee-related matters.

5.

Tangible

fixed assets

The Church holds freehold land and buildings valued at £596,948 at the historic purchased value plus £18,507 of fully depreciated equipment and fittings used in the conversion of the building to its present use.

6 DEBTORS AND PREPAYMENTS
Debtors less than 1 year 2023 2022
£ £
Gift Aid Receivable 2,972 4,219
Total 2,972 4,219
7 CREDITORS AND ACCRUALS
2023 2022
£ £
Short term creditors and accruals - 357
Long term creditors - Mortgage loan 179,465 200,850

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

8. CHARITY FUNDS

8.1 Details of all funds with movements during the current reporting period 2022-2023

Opening Gains/ Closing
Fund Balance Income Expenditure Transfers Losses Balance
General Church 32,465 153,728 (149,593) (21,466) 15,134
Total Unrestricted 32,465 153,728 (149,593) (21,466) 15,134
Debt Advice 3 - (3) - -
Understanding Islam 595 250 (925) 80 -
Children Project 1,224 - (943) - 281
Newday 2,277 3,430 (4,703) - 1,004
Social Fund 1,971 3,857 (3,874) - 1,954
Open House Lounge 12,931 17,492 (20,245) - 10,178
The FEAST - - - - -
High Town Community Projects 3,820 17,768 (11,114) - 10,474
FACES 316 - (316) -
Toby & Heather Johnson (131) 10,134 (9,524) - 479
Total Restricted 23,006 52,931 (51,647) 80 - 24,370
Endowment 396,098 - - 21,386 417,484
TOTAL FUNDS 451,569 206,659 (201,240) - - 456,988

8.2 Details of all funds with movements during the previous reporting period 2021-2022

Fund Opening
Balance
Income Expenditure Transfers Closing
Balance
General Church 41,579 149,680 (138,458) (20,335) 32,466
41,579 149,680 (138,458) (20,335) 32,466
Debt Advice 3 - - - 3
Understanding Islam - 695 (100) - 595
Children Project 1,224 - - - 1,224
Newday 1,467 810 - - 2,277
Social Fund 2,033 - (62) - 1,971
Open House Lounge 7,965 33,398 (28,432) - 12,931
The FEAST - - - - -
High Town Community Projects 10,686 5,630 (12,496) - 3,820
FACES 10,251 1,321 (11,256) 316
Toby & Heather Johnson - 5,085 (5,216) - (131)
Total Restricted 33,629 46,939 (57,562) - 23,006
Endowment 375,763 - - 20,335 396,098
TOTAL FUNDS 450,970 196,619 (196,020) - 451,569

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HOPE CHURCH LUTON TRUST TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST MARCH 2023

8.3 Transfers of funds in the current reporting perion 2022-2023

The Transfer of £21,386 from the Unrestricted fund to the Endowment fund represents the reduction in the mortgage outstanding

A transfer of £80 was made from the General Fund to the ‘Understanding Islam Fund’ to prevent this project to be in arrears.

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