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2022-03-31-accounts

HOPE CORNER (a company limited by guarantee)

OPERATING AS

HOPE CORNER CHURCH HOPE CORNER SCHOOL

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR

THE YEAR ENDED MARCH 31 2022

Company number 7386305 Charity number 1136720

HOPE CORNER ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

I NDEX

Administrative information 1
Trustees’ and Directors’ annual report 2 – 6
Independent examiner’s report 7
Statement of financial activities 8
Balance sheet 9
Statement of cash flows 10
Notes to the financial statements 11 – 19

HOPE CORNER ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2022

DIRECTORS

Rev’d Mark B J Finch JP Mr John C Cavanagh Mr Jason K Worrall Mrs Pauline E Rushworth Mr Mathew B M Finch Mr John O Ilupeju

COMPANY SECRETARY

Mr Paul John Rushworth

PRINCIPAL STAFF Rev’d Mark B J Finch JP Senior Minister Mrs Maria Houghton School Head Teacher REGISTERED OFFICE 70 Clifton Road, Runcorn WA7 4TD PRINCIPAL PLACE OF BUSINESS 70 Clifton Road Runcorn WA7 4TD INDEPENDENT EXAMINER Peter Smith BA FCA DChA & ACCOUNTANTS HGA Accountants & Financial Consultants Ltd t/a Chittenden Horley - Chartered Accountants The Wesley Centre Royce Road, Hulme Manchester M15 5BP

1

HOPE CORNER ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2022

INTRODUCTION

The trustees present their annual report together with the financial statements of Hope Corner for the year ended March 31 2022 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 (FRS102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition – October 2019).

OUR PURPOSES AND ACTIVITIES

Objects

The objects of the charity are for the benefit of the public particularly in the areas of Christian life and general Education. Specifically, this includes;

We use the resources available to the charity for the good of people regardless of their age, background, race, religion or gender.

Our Devotion Together in the Christian faith, inspires us to support the relevant needs of those accessing Hope Corner and those of the wider community.

We support and encourage both directly and indirectly practitioners helping the wider community both in Britain and overseas particularly in the areas of Church development, education and the relief of poverty.

The Trustees oversee a wide range of activities directed to fulfilling these objects. Hope Corner Church promotes all three of the charity’s objects across a range of activities. Hope Corner School is focused exclusively on the advancement of education. The charity principally operates from its purpose-built freehold premises in Clifton Road, Runcorn.

The charity does not generally charge its beneficiaries for the services they receive and therefore the Trustees are confident that the charity is able to demonstrate its adherence to the Charity Commission’s guidance, with regard to public benefit.

Together with the provision of inspiring Church services, we run a special educational needs school, children’s work, youth work, financial management training, oversees support to Uganda and India. The Charity aims to provide programmes emphasising a holistic provision for beneficiaries that fosters; Spiritual, Physical, Mental and Social wellbeing.

We have been awarded national recognition for our work.

OUR CHARTER

We provide an inclusive service to our community by:

1) Serving and respecting all people regardless of their gender, marital status, race, ethnic origin, religion, age, sexual orientation or physical and mental capability.

2) Acknowledging the freedom of people of all faiths or none both to hold and to express their beliefs and convictions respectfully and freely, within the limits of the UK law.

3) Never imposing our Christian faith or belief on others but allowing them to view and inquire about what it means to be in relationship to Christ Jesus.

4) Developing partnerships with other churches, voluntary groups, statutory agencies and local government wherever appropriate in order to create an effective, integrated service for our clients avoiding unnecessary duplication of resources.

5) Providing and publicising regular consultation and reporting forums to client groups and the wider community regarding the effective development and delivery of our work and our responsiveness to their actual needs.

2

HOPE CORNER ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2022

ACTIVITIES

We value all individuals in a way that is consistent with our distinctive Christian ethos by:

We continually strive to develop a professional approach to management, practice and funding by:

3 ) Doing all we can to ensure that we are not over-dependent on any one source of funding.

Psalm 60 verse 12 in the Bible says ‘With God’s help, we will do great things’. This perfectly describes our experience here at Hope Corner over the last year.

As a church, school as well as all the other projects, we are grateful for the continued devotion of our staff and volunteers as well as the sustaining power of our Lord and Saviour.

We have faced the same challenges as most small charities trying to accomplish extraordinary things with the resources available, yet in these circumstances our ‘edge’ has been the amazing grace of God.

Hope Corner Church Services

All our regular church activities continue to be well attended with a rich variety of age groups, families and cultural backgrounds. The spiritual, mental and physical value of our meetings cannot be overstated! Because we have developed worship in a vibrant and relevant way, people make the effort to ‘come to church’ which is a refreshing change these days. A byproduct of people excited about church is the fact that many commit to regular financial giving to the projects Hope Corner is doing in the community. People do this freely as an expression of their faith in God and the aims of the charity.

Hope Corner School.

Our special education school continues to do outstanding work with some very vulnerable young people. Unlike many other educational establishments, our school remained open during ‘lock down’ and it was not an easy time. Following this we had an OFSTED inspection which we were expecting as part of the governments ongoing education plans. This visit confirmed the exceptional personal support given to each of our students together with excellent safeguarding.

The staff have worked hard over this last year to achieve the teaching development as required by OFSTED.

The greatest value of Hope Corner School is to see our students go on to higher education and become positively engaged with their community, which always looks like an impossible outcome with some when they arrived with us. We are extremely appreciative of our highly skilled staff, governors and those who support them from the church.

Youth and Children’s work

Sadly, Hope Corner is one of the few churches in the area providing regular youth and children’s activities. We feel privileged to have a wonderful team who volunteer an incredible amount of time and energy to young people in the Runcorn area.

The variety of activities on offer are well organised and perfectly suited to the relevant age-group.

The team are also to be commended for keeping the pastoral care and activities going through a variety of social media during the lock-down time.

3

HOPE CORNER ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2022

Oversees Support and Development.

We continue to support Church Charities in India and Uganda.

Covid has had devastating consequences in both countries. Many small village churches have lost their leaders and church members to the pandemic.

We have been privileged to help pay for vital support in these circumstances and contribute to the training of new leaders. Things are now starting to look more positive but much more still needs to be done. By the grace of God we will do our best.

Personal Note

Our Chair writres “I want to offer my personal thanks to our Church Oversight (Elders and Trustees) and our Business Manager who has supported me tirelessly in guiding this charity over the last year. Their wisdom and spiritual insight is outstanding.

Most of all I give thanks to our Lord Jesus Christ who makes ‘all things possible’. After all, Hope Corner is HIS work.”

FINANCIAL REVIEW

Preamble

For any charity of our size, this is an area that always brings great challenges. We are so grateful for the way all the community family of Hope Corner give sacrificially on a regular basis. Besides those fees paid to our school, the giving of God’s people is the backbone of our financial base and despite the pandemic has held up remarkably well. We already know that for every £1 given to Home Corner, the value is increased to around £3 due to the careful way we run the charity (Cinnamon Audit 2015). We are working to increase this value to £4 over the next two years.

Of course we have faced server restrictions on our ability to generate income from hires and the café because of the measures that the Government had to introduce to combat the pandemic.

Overview of financial accounts

This year we report a deficit of £74,787 (last year a surplus of c£45k). This is attributabkle to a number of factors including the reduction in pupil numbers and the need to replace the lift in our main building. However, we have continued to be able to make our loan repayments and are grateful for the capital repayment holiday which will hekp opur cashflow in 22/23.

We have taken the decision to sell our Church Street premises which will permit us to repay a sizeable proportion of our loan and reduce monthly outgoings. Since the year end we have also been working with the local authorities to increase the number of pupils in the school and thus the lkevel of fee income.

We continue to trust in God to see us through these difficult times and enable us to continue to do the work of the Kingdom.

Risk management summary

We acknowledge the following risks that Hope Corner faces

Throughout 21/22 and beyone we have continued to improved our financial systems.

Principal funding sources and going concern

The charity presently relies on two major funding sources

The Trustees are taking action to address the causes of the deficit in the year and improve the cashflow of the charity, and are confident that the charity is a going concern

Reserves

Our free reserves (unrestricted funds not invested in fixed assets, otherwise designated or required to meet secured loans due in more than one year) stood at £160k at the year end. We are in the process of determining what the target level should be for free reserves going forward, but we remain strongly committed to ensuring that we are able to meet our loan repayments as they fall due and to have sufficient funds available to maintain our buildings to an approriate standard, as we continue to work for the Kingdom of God.

4

HOPE CORNER ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2022

FUTURE PLANS

We are heavily investing in staff and volunteer training in order to develop their skills as well asreaching all required profession standards.

We are making sure that potential leaders are ready to take on the challenges of leading this charity into future years.

We are pleased to have young people who are ready to take on various role to fulfil our vision.

We want to offer grateful thanks to the Head Teacher of our school, Maria Houghton, who has worked consistently in this capacity for the last six years and is now moving on.

Our Deputy has stepped into role of headteacher and already has introduced some very positive changes that is enhancing the curriculum and many opportunities for our students.

STRUCTURE GOVERNANCE AND MANAGEMENT

Governing document

The Charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated September 20, 2010. It is registered as a charity with the Charity Commission.

Members of the company

The initial members of the company were the five subscribers to the Memorandum. Four of these five remain in membership. There are various qualification requirements to be met before any person is admitted to membership. Furthermore, the constitution grants the Senior Minister and the majority of existing members with discretion as to whether or not to nominate persons for membership. Provided qualification requirements are met and both the Senior Minister and the majority of existing members have invited candidate members to join the company, the directors (Trustees) have no discretion to refuse admittance to membership.

Members may resign or may be removed by an Ordinary resolution of all members.

There are currently 50 members of the company.

£1 in the event of the charity being wound up.

Appointment of Directors and Trustees

The directors of the company (who are Trustees of the Charity) are appointed as follows

(a) on the nomination of the Senior Minister, or

(b) By the members in General Meeting

Directors appointed under (a) above do not retire by rotation Directors appointed under (b) only serve until the following annual general meeting

The minimum number of directors is three and there is presently no maximum number.

Trustee recruitment, induction and training

There has only been one Trustee appointed following the initial appointments on incorporation. The Senior Minister consults with the broader membership when considering nominations to the Board.

It is the intention to recruit additional Trustees in the next three years. Suitable induction and training will be devised for such recruits.

Related parties and management of conflict of interest

The Trustees are aware of the Charity Commission guidance relating to management of conflict of interest issues.

As disclosed in the notes to the accounts there are a number of related party transactions in connection with the Senior Minister. The charity has established policies to manage conflict of interest issues and these are reviewed periodically.

5

HOPE CORNER ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2022

TRUSTEES’ RESPOSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The trustees (who are also directors of the Charity for the purposes of company law) 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).

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 these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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 AND APPROVAL

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved by the Board of Trustees and signed on its behalf by:

Mark Finch

Mark Finch Chair of Trustees

Date: 7/11/22

6

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF HOPE CORNER FOR THE YEAR ENDED MARCH 31 2022

I report to the charity trustees on my examination of the accounts of the company for the year ended March 31 2021 which are set out on pages 8 to 19.

Responsibilities and basis of report

As the charity 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 company’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

Since the company’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 Institute of Chartered Accountants in England and Wales (ICAEW) 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 that in any material respect:

  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.

Peter Smith

Peter Smith BA FCA DChA

For and on behalf of:

HGA Accountants & Financial Consultants Ltd t/a Chittenden Horley Chartered Accountants

The Wesley Centre Royce Road, Hulme Manchester M15 5BP Date: 11/11/22

7

HOPE CORNER STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED MARCH 31 2022

Notes
INCOME
Donations
2
Charitable activities
3
Other trading income
4
Other income - surplus on disposal pf property
TOTAL INCOME
EXPENDITURE
Costs of raising funds
5
Expenditure on charitable activities
6
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
Transfers between funds
Other recognised gains
NET MOVEMENT IN FUNDS
TOTAL FUNDS BROUGHT FORWARD
14
TOTAL FUNDS CARRIED FORWARD
14		 Unrestricted
Funds
£
77,311
148,553
12,450
5,362		 Restricted
Funds
£
2,280
-
-
-		 Total
Total
2022
2021
£
£
79,591
91,040
148,553
224,232
12,450
14,075
5,362
-
243,676 2,280 245,956
329,347
6,779
311,684		 -
2,280		 6,779
12,647
313,964
271,495
318,463 2,280 320,743
284,142
(74,787)
-
-		 -
-
-		 (74,787)
45,205
-
-
-
-
(74,787)
707,656		 -
-		 (74,787)
45,205
707,656
662,451
632,869 - 632,869
707,656

The notes on pages11 to 19 form part of these financial statements.

8

HOPE CORNER BALANCE SHEET AS AT MARCH 31 2022

Notes
FIXED ASSETS
Tangible Assets
10
CURRENT ASSETS
Assets held for resale
11
Debtors
11
Cash at Bank and in Hand
CREDITORS
Amounts falling due in one year
12
NET CURRENT ASSETS
CREDITORS
Amounts falling due in more than one year
13
NET ASSETS		 2022
£
146,362
1,213
39,853		 2022
2021
2021
£
£
£
924,974
1,088,058
-
2,506
121,440
123,946
32,077
160,450
91,869
1,085,424
1,179,927
452,555
472,271
632,869
707,656
187,428
26,978
FUNDS
Unrestricted
General fund
14
Revaluation reserve
Restricted
14
TOTAL FUNDS		 560,360
72,509		 470,042
237,614
632,869
707,656
-
-
632,869
707,656

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

For the year ending March 31 2022, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies and no notice has been deposited under section 476 requiring the company to obtain an audit of its accounts for the year in question.

Directors’ responsibilities

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

The notes on pages 11 to 19 form part of these financial statements.

Approved by the Board and authorised for issue on 7/11/22

And signed on their behalf by:

Mark Finch

Mark Finch - Director

Company registration number 7386305

9

HOPE CORNER STATEMENT OF CASH FLOWS FOR THE YEAR ENDED MARCH 31 2022

notes
Cash used in operating activities
16
Cashflows from investing activities
Purchase of tangible fixed assets
Cash provided by/(used in) investing activities
Cashflows from financing activities
Proceeds from new borrowings - secured loan
Repayment of borrowing - finance lease
Repayment of borrowing - mortgage creditor
Repayments of borrowing - unsecured loans
Cash used in financing activities
Increase/(decrease) in cash & cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand		 2022
2021
£
£
(51,130)
76,520
(4,211)
(549)
(4,211)
(549)
-
45,000
-
(5,090)
(26,246)
(11,139)
-
(49,515)
(26,246)
(20,744)
(81,587)
55,227
121,440
66,213
39,853
121,440
39,853
121,440
39,853
121,440

10

HOPE CORNER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

1 ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared: under the historic cost convention; 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 (FRS102) effective January 1 2019 (second edition – October 2019); FRS102; and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS102.

The accounts are prepared in £ sterling, which is the functional currency.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The principal accounting estimate that affects these accounts relates to:

The estimated useful lives of fixed assets

Income recognition

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following applies to particular types of income:

Grants , whether of a capital or revenue nature, are recognised when the Charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.

Donations from individuals and other bodies (not being of the nature of a grant) are recognised when receivable. Where a donation is contingent upon the performance by the charity of a significant obligation the donation is not recognised until the obligation has been performed.

Donated facilities are recognised on receipt at the value that the charity would be willing to pay to obtain facilities of equivalent economic benefit on the open market, a corresponding amount is then recognised as expenditure in the period of the receipt.

Earned income is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts.

Deferred income

Income is only deferred and included in creditors when:

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 the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds

Charitable activities

including those associated with fundraising activities, managing investments and commercial trading by the subsidiary company.

costs of undertaking the work of charity.

The Charity is not registered for VAT and cannot recover any input tax charged. Costs are stated inclusive of VAT were charged.

Allocation of support costs

Support costs are those functions which assist the work of the Charity either by supporting the delivery of charitable activities or by supporting the generation of funds. They include back office functions, staff costs and professional fees. The basis of allocations is set out in note 5.

11

HOPE CORNER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

1 ACCOUNTING POLICIES (continued)

Tangible fixed assets and depreciation

Individual fixed assets costing more than £250 are capitalised at cost and are depreciated over their estimated useful lives (after deducting any residual value) on a straight-line basis as set out below.

Depreciation rates are as follows: Freehold buildings – Over 50 years Leasehold buildings – Over 50 years or the period of the lease if shorter Property fixtures and fittings – Over 20 years Furniture – Over 10-15 years Kitchen equipment 7 years Computer and IT equipment – 4 years

Debtors

Trade and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Financial instruments

The Charity has only basic financial instruments which are initially recorded at cost, and with the exception of investments (as set out above) subsequently measured at their settlement value.

12

HOPE CORNER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

Unrestricted
£
2 DONATIONS
Freewill offerings
46,578
Gift Aid
11,416
Other donations
2,213
Grants
-
HMRC - CJRS
17,104
Restricted donations
-
77,311
3 INCOME FROM CHARITABLE ACTIVITIES
Church
718
School
147,835
148,553
Income is analysed as follows:
Church
Grants for Souper Heroes
-
Other income
718
718
School
Local authority fees
147,835
147,835
4 OTHER TRADING INCOME
Catering income
615
Room hire
11,835
12,450		 Unrestricted 2022
Restricted		 Total Unrestricted 2021
Restricted
Total
£
46,578
11,416
2,213
-
17,104
-		 £
-
-
-
-
-
2,280		 £
46,578
11,416
2,213
-
17,104
2,280		 £
43,585
10,809
3,734
-
32,812
-		 £
£
-
43,585
-
10,809
-
3,734
-
-
-
32,812
100
100
77,311 2,280 79,591 90,940 100
91,040
-
-		 718
147,835		 62
221,670		 2,500
2,562
-
221,670
148,553 - 148,553 221,732 2,500
224,232
-
718		 -
-		 -
718		 -
62		 2,500
2,500
-
62
718 - 718 62 2,500
2,562
147,835 - 147,835 221,670 -
221,670
147,835 - 147,835 221,670 -
221,670
615
11,835		 -
-		 615
11,835		 7,358
6,717		 -
7,358
-
6,717
12,450 - 12,450 14,075 -
14,075

13

HOPE CORNER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

5 COSTS OF RAISING FUNDS
Direct costs
Support costs
6 CHARITABLE EXPENDITURE
Church
School
Expenditure is analysed as follows:
2021/22
Church
School
2020/21
Church
School
7 SUPPORT & GOVERNANCE COSTS
2021/22
Property costs
Payroll costs
Administration costs
Depreciation/disposal gains
Finance costs
Governance costs
2020/21
Property costs
Payroll costs
Administration costs
Depreciation/disposal gains
Finance costs
Governance costs		 Unrestricted 2022
Restricted		 Total Unrestricted 2021
Restricted
Total
£
1,879
4,900		 £
-
-		 £
1,879
4,900		 £
7,649
4,998		 £
£
-
7,649
-
4,998
6,779 - 6,779 12,647 -
12,647
120,801
190,883		 2,280
-		 123,081
190,883		 89,307
179,588		 2,600
91,907
-
179,588
311,684 2,280 313,964 268,895 2,600
271,495
Direct
Costs
£
1,238
18,968		 Direct
Salaries
£
36,660
123,191		 Support
Costs
Total
£
£
85,183
123,081
48,724
190,883
20,206 159,851 133,907
313,964
4,097
6,814		 36,906
127,261		 50,904
91,907
45,513
179,588
10,911 164,167 96,417
271,495
Fundraising
£
-
2,113
1,738
1,049
-
-		 Church
£
42,986
4,226
3,475
18,840
14,718
938		 Total
School
2022
£
£
10,746
53,732
14,790
21,129
12,163
17,376
6,406
26,295
3,680
18,398
939
1,877
4,900 85,183 48,724
138,807
-
1,320
1,828
1,200
650
-		 16,835
2,641
3,657
8,522
16,644
2,605		 1,870
18,705
9,241
13,202
12,797
18,282
19,000
28,722
-
17,294
2,605
5,210
4,998 50,904 45,513
101,415

Support costs are allocated on the following basis:

Area Basis

Property costs Proportional use of property Administrative costs Allocation based on staff allocation Depreciation and finance costs

Allocation of depreciated or financed assets

14

HOPE CORNER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

8 STAFF INFORMATION
a Employees
Salaries and wages
Employer's pension contributions
Employer's NI contributions		 2022
2021
£
£
168,881
165,625
3,378
3,282
8,721
8,462
180,980
177,369

No employees earned more than £60,000 p.a. in either year.

b Key management personnel

The key management of the charity comprise the trustees and senior staff (as set out on page1).

The trustees do not receive any remuneration for their services as Trustees. The Senior Minister, Mark Finch also serves as an employee of the charity and is one of the two key management personnel.

The total employee benefits, including employer pension and Employers' NI contributions, of the employed key management personnel were as follows:

Average staff numbers
The average number of employees was as follows:-
NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)
This is stated after charging/(crediting):
Independent examiners & accountants fees:
Examination
Accountancy fees
Depreciation of fixed assets
Trustees remuneration
Trustees claiming expenses in relation to Trustee duties		 65,036
65,526
Average
Average
number
number
9
9
£
£
717
700
795
776
26,295
28,772
-
-
Number
Number
-
-

c Average staff numbers The average number of employees was as follows:-

9 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)

15

HOPE CORNER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

10 TANGIBLE FIXED ASSETS
Cost or valuation
As at April 1 2021
Additions
Disposals
As at March 31 2022
Depreciation
As at April 1 2021
Charge for the year
Eliminated on disposals
As at March 31 2022
Net Book Value
As at March 31 2022
As at March 31 2021		 Freehold
Land &
Buildings
£
950,000
-
-		 Leasehold
Land &
Buildings
£
150,000
-
(150,000)		 Furniture
& fittings
£
15,108
-
-		 Instruments
equipment
& computers
£
41,421
4,211
-		 Motor
vehicles
Total
£
£
16,700
1,173,229
-
4,211
-
(150,000)
950,000 - 15,108 45,632 16,700
1,027,440
48,000
16,000
-		 9,000
-
(9,000)		 3,334
1,209
-		 16,821
6,414
-		 8,016
85,171
2,672
26,295
-
(9,000)
64,000 - 4,543 23,235 10,688
102,466
886,000 - 10,565 22,397 6,012
924,974
902,000 141,000 11,774 24,600 8,684
1,088,058

The freehold and leasehold property was valued at August 1 2018 by Anthony Chadwick MRICS of Hardie Brack Chartered Surveyors.

11 ASSETS HELD FOR RESALE

Leasehold property

2022 2021
£ £
146,362 -

The charity has taken the decision to dispose of its leasehold property at Church St, Runcorn. The value above is the Trustees' best estimate of the net sale proceeds after all expenses.

11 DEBTORS
Trade debtors
Income receivable
Sundry debtors and prepayments
12 CREDITORS falling due within one year
Trade creditors
Other taxes and social security
Accruals
Other creditors
Finance lease creditor due in one year
Mortgage repayable in one year
Unsecured loans repayable in one year
13 CREDITORS falling due in more than one year
Mortgage payable within 2 - 5 years
Mortgage repayable in more than 5 years		 -
-
1,213
2,506
-
-
1,213
2,506
4,392
2,689
-
-
2,192
2,453
735
746
-
-
19,659
26,189
-
-
26,978
32,077
114,494
117,722
338,061
354,549
452,555
472,271

The mortgage is secured by a charge on the freehold and leasehold properties of the Charity. The loan is due to be repaid by 2035. After the year end a capital repayment holiday was agreed for September, October November 2022. Interest is charged at 4.25% (rising from 3.75%.at the start of the year).

16

HOPE CORNER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

14 STATEMENT OF FUNDS

2021/22
Income
Expenditure
transfers
31/03/2022
£
£
£
£
243,676
(312,493)
159,135
560,360
-
(5,970)
(159,135)
72,509		 632,869 -
-
-		 - 632,869
159,135 -
-
-		 - 159,135 141,000
18,135		 159,135
(318,463) (2,280) (2,280) (320,743)
243,676 2,280
-
-		 2,280 245,956
b/f and c/f
31/03/2021
01/04/2021
£
470,042
237,614		 707,656 -
-
-		 - 707,656
2020/21
01/04/2020
Income
Expenditure
transfers
£
£
£
£
420,588
326,747
(277,293)
-
241,863
-
(4,249)
-		 - -
-		 - -
(281,542) -
(100)
(2,500)		 (2,600) (284,142)
326,747 -
100
2,500		 2,600 329,347
662,451 -
-
-		 - 662,451

17

HOPE CORNER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

15 ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Company fund balances at March 31 2022
are represented by:-
Tangible fixed assets
Net current assets
Creditors due in more than one year
Free Reserves:
Net current assets
Company fund balances at March 31 2021
are represented by:-
Tangible fixed assets
Net current assets
Creditors due in more than one year		 Unrestricted
Funds
£
924,974
160,450
(452,555)		 Restricted
Total
Funds
£
£
-
924,974
-
160,450
-
(452,555)
632,869 -
632,869
160,450 Restricted
Total
Funds
£
£
-
1,088,058
-
91,869
-
(472,271)
Unrestricted
Funds
£
1,088,058
91,869
(472,271)
707,656 -
707,656

16 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net income/(expenditure)
Add back depreciation
Deduct Gain on disposal of fixed assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors (Exc. Loans))
Net cash generated from/(used in) operating activities		 2022
2021
£
£
(74,787)
45,205
26,295
28,722
(5,362)
-
1,293
5,635
1,431
(3,042)
(51,130)
76,520

17 NET MOVEMENT IN DEBT

NET MOVEMENT IN DEBT
Cash and cash equivalents
Cash at bank and in hand
Debt
Mortgage loans
Cash and cash equivalents net of debt		 At 31/3/20
£
121,440		 cashflows
£
55,341
-		 Loans repaid
£
(26,246)		 loan
received
At 31/03/21
£
£
-
39,853
(498,460) - 26,246 -
(472,214)
(498,460) - 26,246 -
(472,214)
(377,020) (432,361)

18

HOPE CORNER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2022

18 TAXATION

The company is a registered charity and is entitled to claim annual exemption from UK corporation tax under sections 466 to 477 of the Corporation Tax Act 2010.

19 CAPITAL COMMITMENTS

The company had no capital commitments at the year end (2021- none)

20 RELATED PARTY TRANSACTIONS

The Chair of Trustees (Revd. Mark Finch) is also the Senior Minister of the Church and is remunerated in this capacity (but not for acting as Trustee). The charity's constitution permits this arrangement. Mr Finch is also closely related to other employees of the charity. During the year his employment benefits were £36,906 (2021 - £33,388).

In 2018/19, Mr and Mrs Finch loaned the charity £45,000 on an interest free basis in order that the charity could repay loans made by an unconnected third party, and this was outstanding as at March 31 2020. During 20/21 this loan was repaid in full as the charity obtained an advance from its existing secured lender.

Mr Matthew Finch, a trustee, is also the Deputy Head of the School, and is remunerated in this capacity but not for acting as a trustee. The Charity's constitution permits this. His wife is employed by the charity and he is the son of the Chair. His employment benefits were £24,446 (2021 - £23,734 ).

His wife received employment benefits of £ 14,008 (2021 - £13,916).

19