**REGISTERED COMPANY NUMBER: 07501715 (England and Wales) REGISTERED CHARITY NUMBER: 1140748**
## **Report of the Trustees and**
**Unaudited Financial Statements for the Year Ended 31 March 2023**
## **for**
## **GRACE COMMUNITY CHURCH PORTHCAWL**
Martin Waterworth Limited Chartered Accountants Bronwylfa Llangunnor Road Carmarthen Dyfed SA31 2PB
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Contents of the Financial Statements for the year ended 31 March 2023**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|3|
|**Independent Examiner's Report**||4||
|**Statement of Financial Activities**||5||
|**Statement of Financial Position**|6|to|7|
|**Notes to the Financial Statements**|8|to|13|
|**Detailed Statement of Financial Activities**|14|to|15|
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Report of the Trustees for the year ended 31 March 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 March 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 Charity's principal activities are for the public benefit: to advance the Christian faith and to fulfil such other purposes that are exclusively charitable. The main objects and activities for the period were the provision of public worship, the provision of human resources and services to the community and the alleviation of hardship through various means, as well as support for church planting.
## **Public benefit**
The activities undertaken are monitored closely by staff and trustees to ensure that the recipients of the charity's services and facilities have an experience in keeping with its Christian aims and ethos.
The Trustees have referred to the Charity Commission's guidance on public benefit when reviewing the charity's aims and objectives and planning future activities.
## **Volunteers**
Our thanks go out to all those who have volunteered their time and services to help ensure that Grace Community Church meets its aims and objectives.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
Throughout the past year the charity has continued to advance the Christian faith in Porthcawl and to provide services to the local community, including financial grants to people in Porthcawl who are undergoing hardship, and through the continued provision of services like Foodshare, Drop A Tin, Ukrainian Refugee Cafe, Mums and Toddlers and Community Cafe.
The charity has continued to support church planting, funded by specific donations and various grants.
The charity continues to have a strong involvement with schools, care homes and other community-based organisations within Porthcawl.
The organisation continues to support the work of several individuals worldwide who seek to advance the Christian faith in different parts of the world.
A more detailed overview of the Charity is available on the Charity's website.
Page 1
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Report of the Trustees**
## **for the year ended 31 March 2023**
## **FINANCIAL REVIEW**
## **Financial position**
Out of the grant of £27,520 from World Challenge received in the year to 31 March 2020, £7000 was used in the same year to assist a church plant in St Brides Minor. No further funds have been spent, and there is balance of funds of £20,520 to use in future years. This has been treated as a restricted fund.
The church plant in St Brides Minor has been treated as a restricted fund, and has built up its net funds from £23,040 to £29,808 during the year. Support has come by way of donations and grants.
Regarding the Charity's unrestricted activities, income was higher than its expenditure for the year by £6,639.
We continue to segment 13% of our income to support others whose aims and values align with those of our Charity. Amounts set aside and not yet spent are shown as separate unrestricted reserves.
Costs are continuously kept to a minimum, focusing resources on human resources and on community-orientated work and embracing as much voluntary support as possible.
## **Principal funding sources**
Funding is received mainly from supporting individuals and related gift aid claims, supplemented by grants (see note 2).
## **Reserves policy**
Reserves are held sufficiently to uphold the objects of the charity without putting it in financial jeopardy. Out of the main general reserves a percentage is set aside for Funds for Outward Giving for overseas projects, UK Support including evangelism and for Pastoral care and the Needy. It is the intention that all of these separate funds will be paid out for these causes on Christian grounds. See note11 for movements on these funds and how spent.
Any restricted funds are held in line with the conditions attached to its particular sources of funding until fully expended.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The organisation is a Christian Charity registered on 9th March 2011. The Charity is an incorporated company (registered 21st January, 2011) and is governed by Memorandum and Articles of Association.
## **Recruitment and appointment of new trustees**
Thomas Clewer, Neil Matthews, Dr Joel Morris, Mrs Christine Stables and Russell Stables are current trustees. Trustees are appointed for ongoing terms, with new trustees to be appointed at a Special Meeting of trustees.
A team of elders have been established to ensure that the charity's aims and needs are identified, and reflected through to the body of trustees.
## **Organisational structure**
The organisational structure of Grace Community Church is comprised of two parts. Firstly a team of elders, responsible for the overall vision, leadership, oversight and direction of the church including all pastoral and church leadership issues. Secondly a body of trustees who bear responsibility concerning all issues pertaining to financial policy, employment matters, good stewardship, and who seek to ensure that the charity is abiding by best practice as defined by the Charity Commission. These two elements of the organisation structure of Grace work together on many of these areas.
## **Induction and training of new trustees**
The trustees are familiar with the practical work of the Charity as they are updated on current progress in achieving the charities aims, financial reports and other information. All trustees, having been trustees upon inception, are more than familiar within the context in which the Charity operates.
Page 2
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Report of the Trustees**
## **for the year ended 31 March 2023**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Risk management**
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number**
07501715 (England and Wales)
## **Registered Charity number**
1140748
## **Registered office**
25 Hilary Way Nottage Porthcawl CF36 3SE
## **Trustees**
N Matthews T J E Clewer Dr J Morris Mrs C E Stables R Stables
## **Company Secretary**
Mrs A Milligan
## **Independent Examiner**
Martin Waterworth Limited Chartered Accountants Bronwylfa Llangunnor Road Carmarthen Dyfed SA31 2PB
Approved by order of the board of trustees on 25 September 2023 and signed on its behalf by:
T J E Clewer - Trustee
Page 3
## **Independent Examiner's Report to the Trustees of Grace Community Church Porthcawl**
## **Independent examiner's report to the trustees of Grace Community Church Porthcawl ('the Company')**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2023.
## **Responsibilities and basis of report**
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Martin Waterworth FCA
Martin Waterworth Limited Chartered Accountants Bronwylfa Llangunnor Road Carmarthen Dyfed SA31 2PB
25 September 2023
Page 4
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Statement of Financial Activities**
## **for the year ended 31 March 2023**
|Unrestricted
funds
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
99,430
Investment income
3
834
**Total**
100,264
**EXPENDITURE ON**
**Charitable activities**
Advancement of the Christian Faith
93,625
Church Planting
-
**Total**
93,625
**NET INCOME**
6,639
**RECONCILIATION OF FUNDS**
Total funds brought forward
80,005
**TOTAL FUNDS CARRIED FORWARD**
86,644|Restricted
funds
£
35,710
-
35,710
-
28,942
28,942
6,768
43,560
50,328|31.3.23
Total
funds
£
135,140
834
135,974
93,625
28,942
122,567
13,407
123,565
136,972|31.3.22
Total
funds
£
107,339
593|
|---|---|---|---|
||||107,932|
||||72,273
21,703|
||||93,976|
||||13,956
109,609|
||||123,565|
The notes form part of these financial statements
Page 5
## **GRACE COMMUNITY CHURCH PORTHCAWL**
## **Statement of Financial Position**
## **31 March 2023**
|Notes
**FIXED ASSETS**
Tangible assets
7
**CURRENT ASSETS**
Debtors
8
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
9
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
11
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|31.3.23
£
4,991
17,000
119,498
136,498
(4,517)
131,981
136,972
136,972
86,644
50,328
136,972|31.3.22
£
5,773
15,919
102,823
118,742
(950)
117,792
123,565
123,565
80,005
43,560
123,565|
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006.
## The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
Page 6
continued...
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Statement of Financial Position - continued**
## **31 March 2023**
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 25 September 2023 and were signed on its behalf by:
T J E Clewer - Trustee
The notes form part of these financial statements
Page 7
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Notes to the Financial Statements**
## **for the year ended 31 March 2023**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
- Fixtures and fittings - 20% on cost
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **2. DONATIONS AND LEGACIES**
|Unrestricted
funds
£
Donations
82,430
Gift aid
17,000
Grants
-
99,430|Restricted
funds
£
11,710
-
24,000
35,710|31.3.23
Total
funds
£
94,140
17,000
24,000
135,140|31.3.22
Total
funds
£
82,920
12,919
11,500|
|---|---|---|---|
||||107,339|
continued...
Page 8
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Notes to the Financial Statements - continued for the year ended 31 March 2023**
## **2. DONATIONS AND LEGACIES - continued**
Grants received, included in the above, are as follows:
||31.3.23|31.3.22|
|---|---|---|
||£|£|
|Howard Foundation|4,000|4,000|
|Lauderdale Trust|15,000|7,500|
|Church Network|5,000|-|
||24,000|11,500|
The grants from Howard Foundation, Lauderdale Trust and Church Network are specific funding for the Church Plant.
## **3. INVESTMENT INCOME**
|**INVESTMENT INCOME**|||||
|---|---|---|---|---|
||||31.3.23|31.3.22|
||Unrestricted|Restricted|Total|Total|
||funds|funds|funds|funds|
||£|£|£|£|
|Rents received|660|-|660|584|
|Deposit account interest|174|-|174|9|
||834|-|834|593|
## **4. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||31.3.23|31.3.22|
|---|---|---|
||£|£|
|Depreciation - owned assets|1,685|1,687|
## **5. TRUSTEES' REMUNERATION AND BENEFITS**
Each of the trustees are related parties, but only T Clewer received any remuneration for his services as pastor of Grace Community Church. He received a gross salary of £31,200 and the charity contributed £2,496 for his pension arrangements.
continued...
Page 9
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Notes to the Financial Statements - continued**
**for the year ended 31 March 2023**
## **5. TRUSTEES' REMUNERATION AND BENEFITS - continued**
## **Trustees' expenses**
One trustee received expenses for travel and other costs amounting to £1,506 (2022: £1,735)
## **6. STAFF COSTS**
The average monthly number of employees during the year was as follows:
||31.3.23|31.3.22|
|---|---|---|
|Pastoral|1|1|
|Ministerial support|4|3|
|Administrative support|1|1|
||6|5|
No employees received emoluments in excess of £60,000.
## **7. TANGIBLE FIXED ASSETS**
|**COST**
At 1 April 2022
Additions
At 31 March 2023
**DEPRECIATION**
At 1 April 2022
Charge for year
At 31 March 2023
**NET BOOK VALUE**
At 31 March 2023
At 31 March 2022|Fixtures
and
fittings
£
40,282
903|
|---|---|
||41,185|
||34,509
1,685|
||36,194|
||4,991|
||5,773|
As of August 2019 Hope Chapel has been transferred legally into the ownership of the company Grace Community Church Porthcawl (company number 07501715). No cost was incurred other than legal costs of £4,010 which have been included as expenditure on charitable activities in the financial statements for the year to 31 March 2020.
At the time of the transfer in August 2019, £150,000 was placed as an approximate value on the asset which consists of long-term leasehold land and buildings. This note highlights a valuable asset owned by the company, fully available and utilized for its operations. Without the requirement for a formal valuation, it is considered to be a fair approximation of its value at 31 March 2023 by the trustees.
continued...
Page 10
**GRACE COMMUNITY CHURCH PORTHCAWL**
|**Notes to the Financial Statements- continued**
**for the year ended 31 March 2023**
**8.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other debtors
**9.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Social security and other taxes
Other creditors
Accrued expenses
**10.**
**ANALYSIS OF NET ASSETS BETWEEN FUNDS**
Unrestricted
funds
£
Fixed assets
3,903
Current assets
87,258
Current liabilities
(4,517)
86,644
**11.**
**MOVEMENT IN FUNDS**
At 1.4.22
£
**Unrestricted funds**
General fund
68,044
Outward Giving
3,968
UK Support
4,231
Pastoral and Needy
3,762
80,005
**Restricted funds**
Church Planting
23,040
World Challenge
20,520
43,560
**TOTAL FUNDS**
123,565|
Restricted
funds
£
1,088
49,240
-
50,328
Net
movement
in funds
£
15,524
(7,420)
(1,080)
(385)
6,639
6,768
-
6,768
13,407|31.3.23
£
17,000
31.3.23
£
3,344
53
1,120
4,517
31.3.23
Total
funds
£
4,991
136,498
(4,517)
136,972
Transfers
between
funds
£
(12,304)
6,625
3,786
1,893
-
-
-
-
-|31.3.22
£
15,919
31.3.22
£
-
-
950
950
31.3.22
Total
funds
£
5,773
118,742
(950)
123,565
At
31.3.23
£
71,264
3,173
6,937
5,270
86,644
29,808
20,520
50,328
136,972|
|---|---|---|---|
continued...
Page 11
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Notes to the Financial Statements - continued for the year ended 31 March 2023**
## **11. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Outward Giving
UK Support
Pastoral and Needy
**Restricted funds**
Church Planting
**TOTAL FUNDS**|Incoming
resources
£
100,264
-
-
-
100,264
35,710
135,974|Resources
Movement
expended
in funds
£
£
(84,740)
15,524
(7,420)
(7,420)
(1,080)
(1,080)
(385)
(385)
(93,625)
6,639
(28,942)
6,768
(122,567)
13,407|Resources
Movement
expended
in funds
£
£
(84,740)
15,524
(7,420)
(7,420)
(1,080)
(1,080)
(385)
(385)
(93,625)
6,639
(28,942)
6,768
(122,567)
13,407|
|---|---|---|---|
||||6,639
6,768|
||||13,407|
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
Outward Giving
UK Support
Pastoral and Needy
**Restricted funds**
Church Planting
World Challenge
**TOTAL FUNDS**|At 1.4.21
£
61,408
3,274
2,006
2,109
68,797
20,292
20,520
40,812
109,609|Net
movement
in funds
£
17,378
(5,090)
(1,080)
-
11,208
2,748
-
2,748
13,956|Transfers
between
funds
£
(10,742)
5,784
3,305
1,653
-
-
-
-
-|At
31.3.22
£
68,044
3,968
4,231
3,762|
|---|---|---|---|---|
|||||80,005
23,040
20,520|
|||||43,560|
|||||123,565|
continued...
Page 12
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Notes to the Financial Statements - continued for the year ended 31 March 2023**
## **11. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
Outward Giving
UK Support
**Restricted funds**
Church Planting
**TOTAL FUNDS**|Incoming
resources
£
83,481
-
-
83,481
24,451
107,932|Resources
Movement
expended
in funds
£
£
(66,103)
17,378
(5,090)
(5,090)
(1,080)
(1,080)
(72,273)
11,208
(21,703)
2,748
(93,976)
13,956|
|---|---|---|
Outward Giving paid out during the year to 31 March 2023 ministry gifts totalling £7,420 (2022: £5,090); UK Support paid out £1,080 (2022: £1,080) to Waleswide and the Pastoral and Needy Fund paid out gifts totalling £385 (2022: £0).
## **12. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 March 2023.
Page 13
## **GRACE COMMUNITY CHURCH PORTHCAWL**
## **Detailed Statement of Financial Activities for the year ended 31 March 2023**
|**Detailed Statement of Financial Activities**
**for the year ended 31 March 2023**|||||
|---|---|---|---|---|
||||31.3.23|31.3.22|
||Unrestricted|Restricted|Total|Total|
||funds|funds|funds|funds|
||£|£|£|£|
|**INCOME AND ENDOWMENTS**|||||
|**Donations and legacies**|||||
|Donations|82,430|11,710|94,140|82,920|
|Gift aid|17,000|-|17,000|12,919|
|Grants|-|24,000|24,000|11,500|
||99,430|35,710|135,140|107,339|
|**Investment income**|||||
|Rents received|660|-|660|584|
|Deposit account interest|174|-|174|9|
||834|-|834|593|
|**Total incoming resources**|100,264|35,710|135,974|107,932|
|**EXPENDITURE**|||||
|**Charitable activities**|||||
|Pastor's wages|31,200|-|31,200|28,915|
|Pastor's pension|2,496|-|2,496|2,313|
|Pastor's expenses|1,545|-|1,545|1,859|
|Evangelism|2,051|1,634|3,685|2,298|
|Other ministry|27,550|22,728|50,278|35,484|
|Visiting ministry|150|-|150|500|
|Ministry giving paid from funds set aside|8,885|-|8,885|6,170|
|Special events|4,771|-|4,771|1,815|
|Non-tithe receipts|(1,327)|-|(1,327)|(230)|
|Hospitality|1,217|-|1,217|537|
|Youth work and events|916|-|916|1,387|
|Other pastoral and charitable support|4,091|-|4,091|300|
|Utilities|4,149|-|4,149|2,584|
|Maintenance|589|-|589|536|
|Legal costs|900|1,138|2,038|300|
|Training and development|-|248|248|2,208|
|Venue hire|-|2,360|2,360|1,600|
|Publicity|-|-|-|466|
|Subscriptions|610|-|610|189|
|Insurances|1,102|430|1,532|914|
|Stationery and office|124|-|124|836|
|Accountancy & examination|1,325|-|1,325|1,308|
|Carried forward|92,344|28,538|120,882|92,289|
This page does not form part of the statutory financial statements
Page 14
**GRACE COMMUNITY CHURCH PORTHCAWL**
## **Detailed Statement of Financial Activities**
## **for the year ended 31 March 2023**
|**Detailed Statement of Financial Activities**
**for the year ended 31 March 2023**|||||
|---|---|---|---|---|
||||31.3.23|31.3.22|
||Unrestricted|Restricted|Total|Total|
||funds|funds|funds|funds|
||£|£|£|£|
|**Charitable activities**|||||
|Brought forward|92,344|28,538|120,882|92,289|
|Depreciation of tangible fixed assets|1,281|404|1,685|1,687|
||93,625|28,942|122,567|93,976|
|Total resources expended|93,625|28,942|122,567|93,976|
|**Net income**|6,639|6,768|13,407|13,956|
This page does not form part of the statutory financial statements
Page 15