**REGISTERED CHARITY NUMBER: 1142391** ## **REPORT OF THE TRUSTEES AND** ## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **FOR** ## **WALSALL INDEPENDENT EVANGELICAL CHURCH** Crombies Accountants Limited Chartered Accountants 34 Waterloo Road Wolverhampton West Midlands WV1 4DG **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ||**Page**|| |---|---|---| |**Report of the Trustees**|1 to|2| |**Statement of Financial Activities**|3|| |**Balance Sheet**|4|| |**Notes to the Financial Statements**|5 to|10| |**Detailed Statement of Financial Activities**|11|| **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** The trustees present their report with the financialstatements of the charity for the year ended 31 December 2019. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicableto charities preparing their accounts in accordance with the FinancialReporting Standard applicablein the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** The primary aims of the trust are to fulfil the role of a Christian church in the Walsallarea and to provide help to others in promoting the Christian faith in the United Kingdom and overseas. The church is not a buildingbut a gathering of ordinary people of different ages and backgrounds whose lives have been changed by Jesus Christ, the Son of God. The New Testament reveals the church as a community of people, properly taught and cared for, who by loving and serving Jesus Christ, were also committed to love and care for each other and to bring a blessing to the area in which they lived. The Walsall Independent Evangelical Church, its trustees, elders and members are committed to the restoration of those New Testament principles. It is not alone in this, it is one of many churches in the area, country and all over the world that is re-discovering the excitement of knowing Jesus Christ. The vision is to see the people of Walsall come into this experience of knowing Jesus as their Lord, Saviour and friend. ## **Grantmaking** Gifts to external organisations and individuals are considered by the trustees on the basis of need and fulfilment of the charitable objectives. There are no upper or lower limits of support. ## **FINANCIAL REVIEW** ## **Reserves policy** The trustees have set a policy of retaining reserves sufficient for the foreseeable needs of the church. Where there is specific capital expenditure foreseen amounts are set aside into designated funds so the free reserves (general reserves excluding amounts invested in assets for the churches use) are available to meet the costs of normal running and expansion of the church and to ensure the church can meet the commitments that have been entered into. The level of free reserves is not set as a specific formula but is anticipated to be between two and twelve months of the level of fixed expenditure over committed income. This policy is reviewed each year to determine if surplus funds have been generated and what action will be undertaken to use these to the greatest effect. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. ## **Recruitment and appointment of new trustees** Trustees are selected by the members from the Elders of the church. ## **Wider network** The church is a member of the Fellowship of Independent EvangelicalChurches and has a longstanding relationship with this organisation that pursues similar objectives in the UK and overseas. The church works within the fraternity of West Midlands FIEC churches assisting other churches and receives voluntary help itself where needed. During the year grants have been made to help the objectives which can best be done on a larger scale than the WalsallIndependent Evangelical Church could do independently. Page 1 **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **REPORT OF THE TRUSTEES** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Risk management** The trustees have a duty to identify and review the risks to which the church is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. All major insurable risks are subject to normal churches and employers' insurance. Contractual risks are reviewed before being entered into to assess that they could not significantlyimpact upon the churches ability to fulfil its objectives. A review of all risk areas will be undertaken by the trustees in conjunction with staff and volunteers responsible for the area of activity. The scope of this assessment covers financial risk, insurance and health and safety. The areas that this will impact on are particularly child protection, fire safety, health and safety and tax and other legislativecompliance together with the "knock on" impact on reputational risk. Risk management is aimed at ensuring the church achieves its objectives in the most effective way and that resources are directed at those objectives. ## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 1142391 ## **Principal address** Bath Street Centre Bath Street Walsall West Midlands WS1 3DB ## **Trustees** Pastor M Webb Elder D Prew Elder J Daniel Approved by order of the board of trustees on ............................................. and signed on its behalf by: ..................................................................... Trustee Page 2 **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020** |Unrestricted
funds
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
71,540
**Charitable activities**
Fellowship and catering
60
Children and young people
72
Evangelism
906
Contribution to building running costs
2,605
Leadership training
-
Almshouses
3,897
Investment income
2
-
Other income
16
**Total**
79,096
**EXPENDITURE ON**
**Charitable activities**
Fellowship and catering
323
Children and young people
-
Evangelism
5,921
Administration and resources
2,223
Property
11,541
Salaries and national insurance
44,427
Pastoral care/gifts
741
Visiting speakers
280
Almshouses
4,786
Service Activities
1,263
Governance costs
4,540
**Total**
76,045
**NET INCOME/(EXPENDITURE)**
3,051
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
254,622
**TOTAL FUNDS CARRIED FORWARD**
257,673|Restricted
funds
£
8,589
-
-
-
-
-
-
16
-
8,605
-
-
10,000
-
-
-
-
-
-
-
-
10,000
(1,395)
45,264
43,869|2020
Total
funds
£
80,129
60
72
906
2,605
-
3,897
16
16
87,701
323
-
15,921
2,223
11,541
44,427
741
280
4,786
1,263
4,540
86,045
1,656
299,886
301,542|2019
Total
funds
£
82,812
-
370
2,728
4,760
216
2,831
31
1,278
95,026
414
449
19,562
2,379
15,160
42,370
1,115
250
4,582
2,075
4,587
92,943
2,083
297,803
299,886| |---|---|---|---| The notes form part of these financial statements Page 3 **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **BALANCE SHEET 31 DECEMBER 2020** |Unrestricted
funds
Notes
£
**FIXED ASSETS**
Tangible assets
5
259,282
**CURRENT ASSETS**
Debtors
6
500
Cash at bank and in hand
(1,083)
(583)
**CREDITORS**
Amounts falling due within one year
7
(1,026)
**NET CURRENT ASSETS**
(1,609)
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
257,673
**NET ASSETS**
257,673
**FUNDS**
9
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
funds
£
-
10,000
38,668
48,668
(4,799)
43,869
43,869
43,869|2020
Total
funds
£
259,282
10,500
37,585
48,085
(5,825)
42,260
301,542
301,542
257,673
43,869
301,542|2019
Total
funds
£
259,282
10,500
30,929
41,429
(825)
40,604
299,886
299,886
254,622
45,264
299,886| |---|---|---|---| The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: ............................................. Trustee The notes form part of these financial statements Page 4 **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements of the charity, 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 applicablein the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The FinancialReporting Standard applicablein the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention. ## **Income** All income is recognised in the Statement of FinancialActivities 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. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. ## **Taxation** The charity is exempt from 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. INVESTMENT INCOME** |**INVESTMENT INCOME**||| |---|---|---| ||2020|2019| ||£|£| |Deposit account interest|16|31| continued... Page 5 **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020** ## **3. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019. ## **4. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** |Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
69,978
**Charitable activities**
Children and young people
370
Evangelism
2,728
Contribution to building running costs
4,760
Leadership training
216
Almshouses
2,831
Investment income
-
Other income
1,278
**Total**
82,161
**EXPENDITURE ON**
**Charitable activities**
Fellowship and catering
414
Children and young people
449
Evangelism
9,747
Administration and resources
2,379
Property
15,160
Salaries and national insurance
42,370
Pastoral care/gifts
1,115
Visiting speakers
250
Almshouses
4,582
Service Activities
2,075
Governance costs
4,587
**Total**
83,128
**NET INCOME/(EXPENDITURE)**
(967)
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
255,589|Restricted
funds
£
12,834
-
-
-
-
-
31
-
12,865
-
-
9,815
-
-
-
-
-
-
-
-
9,815
3,050
42,214|Total
funds
£
82,812
370
2,728
4,760
216
2,831
31
1,278
95,026
414
449
19,562
2,379
15,160
42,370
1,115
250
4,582
2,075
4,587
92,943
2,083
297,803| |---|---|---| continued... Page 6 **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020** |**4.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES -**
Unrestricted
funds
£
**TOTAL FUNDS CARRIED FORWARD**
254,622
**5.**
**TANGIBLE FIXED ASSETS**
Freehold
property
£
**COST**
At 1 January 2020 and 31 December 2020
259,282
**DEPRECIATION**
At 1 January 2020 and 31 December 2020
-
**NET BOOK VALUE**
At 31 December 2020
259,282
At 31 December 2019
259,282
**6.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other debtors
**7.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Bank loans and overdrafts (see note 8)
Trade creditors
Other creditors
**8.**
**LOANS**
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank overdrafts|**continued**
Restricted
funds
£
45,264
Motor
vehicles
£
5,250
5,250
-
-
2020
£
10,500
2020
£
7,179
1
(1,355)
5,825
2020
£
7,179|Total
funds
£
299,886
Totals
£
264,532
5,250
259,282
259,282
2019
£
10,500
2019
£
2,179
1
(1,355)
825
2019
£
2,179| |---|---|---| continued... Page 7 **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020** ## **9. MOVEMENT IN FUNDS** |**Unrestricted funds**
General fund
**Restricted funds**
Mission Legacy
Grant fund
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**Restricted funds**
Grant fund
**TOTAL FUNDS**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
**Restricted funds**
Mission Legacy
Grant fund
**TOTAL FUNDS**|At 1.1.20
£
254,622
8,885
36,379
45,264
299,886
Incoming
resources
£
79,096
8,605
87,701
At 1.1.19
£
255,589
8,885
33,329
42,214
297,803|Net
movement
At
in funds
31.12.20
£
£
3,051
257,673
-
8,885
(1,395)
34,984
(1,395)
43,869
1,656
301,542
Resources
Movement
expended
in funds
£
£
(76,045)
3,051
(10,000)
(1,395)
(86,045)
1,656
Net
movement
At
in funds
31.12.19
£
£
(967)
254,622
-
8,885
3,050
36,379
3,050
45,264
2,083
299,886| |---|---|---| continued... Page 8 **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020** ## **9. MOVEMENT IN FUNDS - continued** Comparative net movement in funds, included in the above are as follows: |Incoming
resources
£
**Unrestricted funds**
General fund
82,161
**Restricted funds**
Grant fund
12,865
**TOTAL FUNDS**
95,026
A current year 12 months and prior year 12 months combined position is as follows:
At 1.1.19
£
**Unrestricted funds**
General fund
255,589
**Restricted funds**
Mission Legacy
8,885
Grant fund
33,329
42,214
**TOTAL FUNDS**
297,803|Resources
Movement
expended
in funds
£
£
(83,128)
(967)
(9,815)
3,050
(92,943)
2,083

Net
movement
At
in funds
31.12.20
£
£
2,084
257,673
-
8,885
1,655
34,984
1,655
43,869
3,739
301,542| |---|---| A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |**Unrestricted funds**|Incoming
Resources
Movement
resources
expended
in funds
£
£
£| |---|---| |General fund|161,257
(159,173)
2,084| |**Restricted funds**|| |Grant fund|21,470
(19,815)
1,655| |**TOTAL FUNDS**|182,727
(178,988)
3,739| continued... Page 9 **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020** ## **10. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 31 December 2020. Page 10 **WALSALL INDEPENDENT EVANGELICAL CHURCH** ## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020** |**FOR THE YEAR ENDED 31**|**DECEMBER 2020**|| |---|---|---| ||2020|2019| ||£|£| |**INCOME AND ENDOWMENTS**||| |**Donations and legacies**||| |Gifts|-|(1)| |Donations|80,129|82,813| |**Investment income**|80,129|82,812| |Deposit account interest|16|31| |**Charitable activities**||| |Charitable activities|7,540|10,905| |**Other income**||| |Other income|16|1,278| |**Total incoming resources**|87,701|95,026| |**EXPENDITURE**||| |**Charitable activities**||| |Activities with an outreach aim|2,920|6,032| |Teaching and church services|400|250| |Fellowship and catering|944|1,529| |Property expenses|17,184|20,521| |Social concern|3,289|5,675| |Grants to institutions|11,116|10,511| |**Support costs**|35,853|44,518| |**Management**||| |Wages|47,849|44,971| |Admin & office supplies|2,271|3,454| |**Finance**|50,120|48,425| |Bank charges|72|-| |Total resources expended|86,045|92,943| |**Net income**|1,656|2,083| |||| This page does not form part of the statutory financial statements Page 11