CHARITY REGISTRATION NUMBER: 1143387
Victory Church Cwmbran Unaudited Financial Statements
31 March 2024
ELLIS LLOYD JONES AUDIT LIMITED
Chartered accountants
11 Park Square Newport South Wales NP20 4EL
Victory Church Cwmbran
Financial Statements
Year ended 31 March 2024
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent examiner's report to the trustees | 10 |
| Statement of financial activities | 11 |
| Statement of financial position | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 |
Victory Church Cwmbran
Trustees' Annual Report
Year ended 31 March 2024
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2024.
Reference and administrative details
Registered charity name Victory Church Cwmbran Charity registration number 1143387 Principal office Greenforge Way Cwmbran NP44 3BA Torfaen The trustees Mr S Green Mr T Leaman Mr M Sheppard Independent examiner Kara Williams BSc BFP FCA 11 Park Square Newport South Wales NP20 4EL
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Victory Church Cwmbran
Trustees' Annual Report (continued)
Year ended 31 March 2024
Structure, governance and management
The charity was registered as a charity on 16 August 2011. The charity has a legal governing document, to which the Board of Trustees adheres. The Board of Trustees facilitates an annual members' meeting for the Partners. The Partners are people who regularly attend Victory Church or the church plants in the various locations. The Partners give of their time and commit regular financial support to fulfil the ministry of the church. At the annual meeting, Partners are presented with important proposals for their approval.
The trustees are also responsible for employment matters, risk management and the financial controls for the charity. In practice, much of this work has been delegated to the Senior Leadership Team, therefore the operational matters of the church are delegated to the Senior Leadership Team, which is led by Pastor Clyde Thomas.
The Board of Trustees meets twice a year to discuss and assess requests and ensure risk management and safeguards are in place to enable the vision of the charity to happen. The trustees give relevant input and support to enable the church to flourish. The Senior Leadership Team meets monthly to monitor and report the workings of the church accurately.
The Senior Leadership Team is made up of:
Clyde Thomas, Richard Reed, Martyn Sheppard, Rebekah Thomas, Sherard Wood and Marilyn Harry.
Victory Church Cwmbran is affiliated with Elim Foursquare Alliance (hereafter Elim), which provides minimum recommendations for minister's remuneration. Elim provides annual guidelines for Minister remuneration and minimum recommended scales, together with details relating to income tax, tax returns, National Insurance, allowances and dealing with expenses. The trustee board uses the remuneration guidance to determine salaries for all employees.
Recruitment and appointment of trustees
New trustees are recommended to the church partners by the Senior Leadership Team. Trustees must be a partner of the church. Once nominated, a trustee will be appointed after approval by the partners. New trustees are given an information pack prior to their appointment to enable them to understand the duties and responsibilities. Currently, a trustee will remain in their position until resignation; this process is reviewed annually by the Board of Trustees.
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Victory Church Cwmbran
Trustees' Annual Report (continued)
Year ended 31 March 2024
Structure, governance and management (continued)
Risk review
The Board of Trustees carries out an annual review of the risks faced by the charity and the procedures established to manage those risks. Internal risks are minimised by the implementation of effective internal control procedures, which ensure both appropriate authorisation of all transactions and projects and consistent quality of delivery for all operational aspects of the charity. These procedures are periodically reviewed for their continuing effectiveness.
During a periodical review in the year to 31 March 2024, the Board of Trustees and the Senior Leadership Team undertook a review of risks to the charity, which they believe to be income, expenditure, staff roles and responsibilities, partner commitment, and unrestricted reserves. It was agreed that partners would continue to be provided with reports showing the unrestricted income, which would inform the partners of the charity's financial status on a regular basis. The quarterly reports would also clearly show the actual expenditure for the premises, staffing and the various ministries. It was also agreed that the church would look to grant funding to enable staff recruitment and growth.
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Victory Church Cwmbran
Trustees' Annual Report (continued)
Year ended 31 March 2024
Objectives and activities
The objectives of the church are for public benefit: -
To advance the Christian faith in accordance with the statement of beliefs in such ways and in such parts of the United Kingdom or the world as the trustees from time to time may think fit;
To relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind, including the provision of counselling and support in such part of the United Kingdom or the world as the trustees from time to time may think fit;
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To advance education in such ways and in such parts of the United Kingdom or the world
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as the trustees from time to time may think fit; and
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To use the income and may use the capital of the church in promoting the objects. It is
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the intention to evangelise Wales by church planting.
The activities of the church include: -
Sunday services and mid-week services in several locations. There is a Kids' Church, crèche, coffee shop, soft play area and a program for youth and young adults. The church also has a worship team that meets weekly and takes an active part in services. The church engages in the community by supporting local families through the Victory Grocery Store and supports ex-addicts and ex-offenders.
The Board of Trustees and the Senior Leadership Team referred to the guidance contained in the general guidance of the Charity Commission on public benefit when reviewing the charity's aims and objectives and in planning future activities. In particular, the Board of Trustees and the Senior Leadership Team considered how planned activities would contribute to the aims and objectives that were set for the charity.
Purposes and Aims
The purpose and aim of Victory Church Cwmbran is to bring glory to God and hope to people. We achieve this by providing a varied church programme across multiple locations. We exist to advance the Christian faith and see lives transformed by the Gospel of Jesus Christ.
Christian community is at the heart of what we do. We seek to build an inclusive community for the 21st century, where everyone can find hope and faith for themselves, whilst discovering Biblical truth and values for their lives. Our community is open and accessible to all and centres around the person and work of Jesus Christ.
Ensuring Our Work Delivers Its Aims
We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aims, objectives and activities remained focused on our stated purposes.
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Victory Church Cwmbran
Trustees' Annual Report (continued)
Year ended 31 March 2024
Focus on Our Work
Our main objectives for the period continued to be providing a high quality church presence in the communities where we are planted, with a strong focus on engaging people who do not normally attend church, as well as our own congregation.
We focused on:
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strengthening our local church community in each location;
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developing leaders across the life of our church, strengthening our current ministries;
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building a cohesiveness in ministry across sites;
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supporting our international works in Bulgaria and the Philippines as well as third party
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works in Uganda;
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reaching out to the most vulnerable in our communities through extensive daily relief and
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charitable works; and
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redesigning our Supported Housing Ministry which has capacity to house 8 men/women
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at any one time. Many of the men/women supported have found hope and faith and discovered fresh purpose in their lives.
Volunteers
Victory Church Cwmbran volunteers are an important part of the church. The volunteers help with daily operational tasks and with the wider ministry in Cwmbran and other locations. The volunteers comply with the policies and procedures of the charity, based on Christian principles. The volunteers are dedicated and give their time and expertise to allow the vision of Victory Church to flourish.
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Victory Church Cwmbran
Trustees' Annual Report (continued)
Year ended 31 March 2024
Achievements and performance
Cwmbran Location
Our main central location has been a solid presence in Cwmbran with an extensive reach to families locally. The Victory Grocery store which launched last financial year quickly grew to a membership of over 1000 local families. This has created many challenges as demand outstrips funding so the leadership are seeking creative ways to generate income to enable the store to become self-supporting. On a daily basis, the church continued to serve families through The Ark soft play centre, Cafe Victory and various levels of community and pastoral support.
The church continues to partner with Cwmbran High School to run a PRU for local children with educational and behavioural needs. This has enabled many opportunities and due to the outstanding success the PRU has grown to educate more children. The church has been at the forefront of work within the community for families in need, offering extensive work to children and young people through strategic partnerships with Torfaen Play.
We launched a new LifeGroup and HangOut strategy to enable the church to gather outside of traditional services and meetings. This helped to re-establish strong fellowship within the life of the church. We continued to see people make the decision to follow Jesus Christ each week through the Sunday ministry.
Our online presence continues via Facebook, YouTube, Twitter and Instagram.
Swffryd Location
The church in Swffryd continues to develop and is a strong presence in a very deprived area of Wales (Swffryd in Blaenau Gwent). The church has been at the heart of the community for many years but, in recent years, has been replanted by Victory. We are pleased to report that for four years the church has continued to reach out, empower the community and engage the locality. We also do a lot of partnership work with Love Wales to address needs in Blaenau Gwent.
Caldicot Location
We stepped into an existing Elim church in Caldicot, to revitalise and reopen it. The church was stunted and imminent closure was on the horizons. We have sought to redesign and strengthen the church through building a new team and bringing a fresh wave of outreach to the area. We are pleased to report that the church has begun to see the shoots of new life.
International Locations
Our ministries in the Philippines and Bulgaria continued and partners in the United Kingdom provided financial support and continuous prayer. The local teams shared the Gospel, reached the lost and supported the most vulnerable spiritually and practically.
Baptisms and Salvations
The heartbeat of our ministry is to see lives changed, this is evidenced through salvations and baptisms. Throughout the year, we saw regular commitments to Christ through Sunday services and around 29 were baptised over the period.
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Victory Church Cwmbran
Trustees' Annual Report (continued)
Year ended 31 March 2024
Youth Ministry
Limitless Youth has continued to develop and has reached out into schools, colleges and also ran an annual camp. The team is now focusing on both in-house young people and detached youth, bringing a message of hope and faith to a new generation. A new youth team stepped in to facilitate this vital ministry during the period and are currently working on the vision for the future.
Kids' Ministry
Our Victory kids' ministry continued to serve children throughout the year with Bible teaching, worship and opportunities to learn and grow together. The children took part in Christmas in Cwmbran as well as a special Sunday service in December. During the year, kids learnt various topics and enjoyed kids church in The Ark. We also launched a 'family Life Group' to cater for the needs of children and families during the week.
Supported Housing
During the past year, 5 men and 2 women were supported in our Victory homes to help prevent imminent homelessness and to develop growth pathways for their lives. Throughout the year, the service continued to work in partnership with external organisations, where possible.
Grocery Store
The Victory Grocery Store was supported by CBN, Awards for All, The Moondance Foundation, Welsh Government and Torfaen County Borough Council. We are very grateful for these partnerships which have enabled the regular provision of food and groceries for families locally. The store has helped families during the cost of living crisis and continues to experience huge demand. We are now looking for local businesses to help support the store and partner in helping people with a 'hand up rather than a hand out'.
Other Ministries
The money at Victory Church charity is carefully stewarded; the Senior Leadership Team prayerfully considered other ministries to be supported during the financial year, in addition to the UK locations, and the Philippines and Bulgaria.
A minimum of 10% of tithes and offerings is regularly given back to God by supporting other local and international ministries. In this financial year, £11,305 went to UK ministries and £16,676 to international ministries.
Key performance indicators
The trustees use Key Performance Indicator principles to measure outcomes against objectives e.g. number of partners, salvations, baptisms, engagement in community events. They also measure attendance at church, kids and youth, on a regular basis, all of which have seen an increase in attendance of between 20% to 35% from last year. The number of families engaging in The Ark soft play and Grocery Store ministries is monitored, both of which were open on a daily basis.
The trustees also look at financial indicators to set future plans which align with the vision and mission of the church, e.g. expenditure commitments, general giving, donations, grant
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Victory Church Cwmbran
Trustees' Annual Report (continued)
Year ended 31 March 2024
funding. The overall process undertaken measured the success and growth of each ministry and factored in the decision making for the following year.
Financial review
During the year, the charity received income totalling £573,167 (2023: £478,295) and total resources expended amounted to £532,897 (2023: £490,858). Unrestricted income was £294,724 (2023: £275,683) and unrestricted expenditure was £267,187 (2023: £280,755) resulting in an unrestricted net surplus of £27,537 (2023: deficit of £5,072). Restricted income was £278,442 (2023: £202,613) and restricted expenditure was £265,709 (2023: £210,104) resulting in a restricted net surplus of £12,733 (2023: deficit of £7,491).
Income includes tithes and offerings from regular givers; giving can be in person, direct to the bank or through other online platforms. Regular giving provides a consistent funding stream to cover the general overheads, central office, and core ministries. In addition to this income stream, the charity secured funding from external partnership the form of grants. These grants were used for the specific purpose outlined in the grant proposal and the grant provider's terms and conditions. These funds are clearly differentiated in the annual accounts under the designated ministry.
In the 2023/24 financial year, the building was upgraded, including the installation of an energy efficient system, to provide a warm community space to encourage greater footfall in community activities. The partnership with Operation Blessing and the Grocery Store continued and, along with grants from The Moondance Foundation, The Neighbourly Foundation, Torfaen Community Food Scheme, and partner donations, the ministry was able to purchase food, and fund staffing, to enable the shop ministry to continue to serve the community.
In December 2023, we secured matched funding from Love Christmas, which supported us to promote kindness and connection by putting together hampers for those in the community who benefitted from the Bag of Kindness they received at a community event. Regular giving and grant funding has enabled the charity to make a positive difference in the community, in families, and for individuals.
At the year end, the charity had unrestricted reserves of £73,418 (2023: £45,881) and restricted reserves of £73,815 (2023: £61,082). This was represented by £132,137 (2023: £95,270) net current assets and fixed assets of £15,096 (2023: £11,693).
Reserves policy
The trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets ("the free reserves") held by the charity should be between three and six months of the resources expended. We are moving toward this aspiration and the trustees are currently looking at ways to increase reserves to enable them to fall within the range as set out above.
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Victory Church Cwmbran
Trustees' Annual Report (continued)
Year ended 31 March 2024
Plans for future periods
As a church, we exist for people who have faith, and no faith. We want to see the community impacted and felt needs met. We want to empower our members to live out their Christian faith in practical ways, for the good of the community and world.
We would like to see more and more people discover the truth of Jesus' Gospel for themselves. We are intentionally working to reach every human being in the local community by demonstrating the Gospel in everyday life and working practically and spiritually to increase our reach.
We are working strategically to develop clear pathways for growth for those who are a part of Victory Church. This includes partnering with Alpha, Freedom in Christ, CAP, and also developing our strategy to grow people through relevant course offerings.
We are working hard to develop our financial support base to enable us to grow our work and offer more outreach and ministry to people. This is particularly important as our ethos of ministry is 24/7; and not only limited to designated church services.
We would like to see every believer equipped for mission and Christian living in their workplace or places of influence. We aim to offer a range of ministry in this area over the next period.
The trustees believe that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis.
Compliance with prevailing laws and regulations
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 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 issued in October 2019.
30/01/2025 The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:
Samuel Green (Jan 30, 2025 15:32 GMT) Mr S Green Trustee
M Sheppard (Jan 30, 2025 12:18 GMT)
Mr M Sheppard Trustee
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Victory Church Cwmbran
Independent Examiner's Report to the Trustees of Victory Church Cwmbran
Year ended 31 March 2024
I report to the trustees on my examination of the financial statements of Victory Church Cwmbran ('the charity') for the year ended 31 March 2024.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since the charity’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 the 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 material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the financial statements do not accord with those records; or
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the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
Kara Williams
Kara Williams (Jan 30, 2025 15:36 GMT)
Kara Williams BSc BFP FCA Independent Examiner
11 Park Square Newport South Wales NP20 4EL
30/01/2025 Date ……………………
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Victory Church Cwmbran
Statement of Financial Activities
Year ended 31 March 2024
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 4 | 168,113 | 194,535 | 362,649 | 264,267 |
| Charitable activities | 5 | 46,247 | 78,712 | 124,959 | 135,914 |
| Other trading activities | 6 | 51,992 | – | 51,992 | 62,289 |
| Investment income | 7 | 336 | 5,175 | 5,511 | 245 |
| Other income | 8 | 28,036 | 20 | 28,056 | 15,580 |
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| Total income | 294,724 | 278,442 | 573,167 | 478,295 | |
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| Expenditure | |||||
| Expenditure on charitable activities | 9,10 | 267,187 | 265,709 | 532,897 | 490,858 |
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| Total expenditure | 267,187 | 265,709 | 532,897 | 490,858 | |
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| Net income/(expenditure) and net | |||||
| movement in funds | 27,537 | 12,733 | 40,270 | (12,563) | |
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| Reconciliation of funds | |||||
| Total funds brought forward | 45,881 | 61,082 | 106,963 | 119,526 | |
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| Total funds carried forward | 73,418 | 73,815 | 147,233 | 106,963 | |
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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 14 to 25 form part of these financial statements.
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Victory Church Cwmbran
Statement of Financial Position
31 March 2024
| 2024 | 2023 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Fixed assets | ||||
| Tangible fixed assets | 15 | 15,096 | 11,693 | |
| Current assets | ||||
| Debtors | 16 | 684 | – | |
| Cash at bank and in hand | 135,213 | 98,101 | ||
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| 135,897 | 98,101 | |||
| Creditors: amounts falling due within one year | 17 | 3,760 | 2,831 | |
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| Net current assets | 132,137 | 95,270 | ||
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| Total assets less current liabilities | 147,233 | 106,963 | ||
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| Net assets | 147,233 | 106,963 | ||
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| Funds of the charity | ||||
| Restricted funds | 73,815 | 61,082 | ||
| Unrestricted funds | 73,418 | 45,881 | ||
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| Total charity funds | 19 | 147,233══════════ |
106,963══════════ |
These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by: 30/01/2025
Samuel Green (Jan 30, 2025 15:32 GMT) Mr S Green Trustee
M Sheppard (Jan 30, 2025 12:18 GMT)
Mr M Sheppard Trustee
The notes on pages 14 to 25 form part of these financial statements.
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Victory Church Cwmbran
Statement of Cash Flows
Year ended 31 March 2024
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net income/(expenditure) | 40,270 | (12,563) |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 3,995 | 3,252 |
| Other interest receivable and similar income | (5,511) | (245) |
| Interest payable and similar charges | 60 | – |
| Accrued expenses | 929 | 431 |
| Changes in: | ||
| Trade and other debtors | (684) | – |
| Trade and other creditors | – | (149) |
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| Cash generated from operations | 39,059 | (9,274) |
| Interest paid | (60) | – |
| Interest received | 5,511 | 245 |
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| Net cash from/(used in) operating activities | 44,510 | (9,029) |
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| Cash flows from investing activities | ||
| Purchase of tangible assets | (7,398) | – |
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| Net cash used in investing activities | (7,398) | – |
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| Net increase/(decrease) in cash and cash equivalents | 37,112 | (9,029) |
| Cash and cash equivalents at beginning of year | 98,101 | 107,130 |
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| Cash and cash equivalents at end of year | 135,213══════════ |
98,101══════════ |
The notes on pages 14 to 25 form part of these financial statements.
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Victory Church Cwmbran
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Greenforge Way, Cwmbran, NP44 3BA, Torfaen.
As detailed in the trustees' report, the activities of the church include Sunday services and mid-week services in several locations. There is a Kids' Church, crèche, coffee shop, soft play area and a program for youth and young adults. The church also has a worship team that meets weekly and takes an active part in services. The church engages in the community by supporting local families through the Victory Grocery Store and supports ex-addicts and ex-offenders.
2. Statement of compliance
The financial statements 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 in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are presented in sterling, which is the functional currency of the entity, and are rounded to the nearest £1.
Going concern
There are no material uncertainties about the charity's ability to continue.
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Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
3. Accounting policies (continued)
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
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Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
3. Accounting policies (continued)
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
| Fixtures and fittings | - | 20% reducing balance |
|---|---|---|
| Motor vehicles | - | 25% straight line |
| Equipment | - | 33% straight line |
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
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Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
3. Accounting policies (continued)
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
4. Donations and legacies
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2024 | |
| £ | £ | £ | |
| Donations | |||
| General donations | 135,572 | 129,820 | 265,393 |
| Gift aid claimed | 32,541 | – | 32,541 |
| Grants | |||
| Grants receivable | – | 64,715 | 64,715 |
────────── |
────────── |
────────── |
|
| 168,113 | 194,535 | 362,649 | |
══════════ |
══════════ |
══════════ |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Donations | |||
| General donations | 106,921 | 63,476 | 170,397 |
| Gift aid claimed | 1,676 | – | 1,676 |
| Grants | |||
| Grants receivable | 41,244 | 50,950 | 92,194 |
────────── |
────────── |
────────── |
|
| 149,841 | 114,426 | 264,267 | |
══════════ |
══════════ |
══════════ |
5. Charitable activities
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2024 | |
| £ | £ | £ | |
| Victory Academy | – | 1,126 | 1,126 |
| Supported housing | – | 77,586 | 77,586 |
| Grocery store income | 46,247 | – | 46,247 |
──────── |
──────── |
────────── |
|
| 46,247 | 78,712 | 124,959 | |
════════ |
════════ |
══════════ |
- 17 -
Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
5. Charitable activities (continued)
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Victory Academy | – | 3,405 | 3,405 |
| Supported housing | – | 84,677 | 84,677 |
| Grocery store income | 47,832 | – | 47,832 |
──────── |
──────── |
────────── |
|
| 47,832 | 88,082 | 135,914 | |
════════ |
════════ |
══════════ |
6. Other trading activities
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2024 | Funds | 2023 | |
| £ | £ | £ | £ | |
| Income from The Ark | 24,929 | 24,929 | 39,951 | 39,951 |
| Coffee shop income | 26,555 | 26,555 | 22,061 | 22,061 |
| Gift shop income | 508 | 508 | 277 | 277 |
──────── |
──────── |
──────── |
──────── |
|
| 51,992 | 51,992 | 62,289 | 62,289 | |
════════ |
════════ |
════════ |
════════ |
|
| Investment income | ||||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2024 | ||
| £ | £ | £ | ||
| Bank interest receivable | 336 | 5,175 | 5,511 | |
════ |
═══════ |
═══════ |
||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2023 | ||
| £ | £ | £ | ||
| Bank interest receivable | 161 | 85 | 245 | |
════ |
════ |
════ |
||
| Other income | ||||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2024 | ||
| £ | £ | £ | ||
| Rental Income | 28,036 | 20 | 28,056 | |
════════ |
════ |
════════ |
||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2023 | ||
| £ | £ | £ | ||
| Rental Income | 15,560 | 20 | 15,580 | |
════════ |
════ |
════════ |
7. Investment income
8. Other income
- 18 -
Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
9. Expenditure on charitable activities by fund type
| Unrestricted | Restricted | Total Funds | ||
|---|---|---|---|---|
| Funds | Funds | 2024 | ||
| £ | £ | £ | ||
| Church and Campus | 181,374 | 72,761 | 254,136 | |
| Outreach, missions and other ministries | – | 143,550 | 143,550 | |
| Grocery Store | 48,290 | 48,720 | 97,010 | |
| Coffee shop and others | 33,591 | 678 | 34,269 | |
| Support costs | 3,932 | – | 3,932 | |
────────── |
────────── |
────────── |
||
| 267,187 | 265,709 | 532,897 | ||
══════════ |
══════════ |
══════════ |
||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2023 | ||
| £ | £ | £ | ||
| Church and Campus | 169,472 | 56,699 | 226,170 | |
| Outreach, missions and other ministries | – | 152,559 | 152,559 | |
| Grocery Store | 83,875 | – | 83,875 | |
| Coffee shop and others | 23,103 | 846 | 23,951 | |
| Support costs | 4,305 | – | 4,303 | |
────────── |
────────── |
────────── |
||
| 280,755 | 210,104 | 490,858 | ||
══════════ |
══════════ |
══════════ |
||
| 10. | Expenditure on charitable activities by activity type |
| Activities | |||||
|---|---|---|---|---|---|
| undertaken | Support | Total funds | Total fund | ||
| directly | costs | 2024 | 2023 | ||
| £ | £ | £ | £ | ||
| Church and Campus | 254,136 | – | 254,136 | 226,170 | |
| Outreach, missions and other | |||||
| ministries | 143,550 | – | 143,550 | 152,559 | |
| Grocery Store | 97,010 | – | 97,010 | 83,875 | |
| Coffee shop and others | 34,269 | – | 34,269 | 23,951 | |
| Governance costs | – | 3,932 | 3,932 | 4,303 | |
────────── |
─────── |
────────── |
────────── |
||
| 528,965 | 3,932 | 532,897 | 490,858 | ||
══════════ |
═══════ |
══════════ |
══════════ |
||
| 11. | Net income/(expenditure) | ||||
| Net income/(expenditure) is stated after charging/(crediting): | |||||
| 2024 | 2023 | ||||
| £ | £ | ||||
| Depreciation of tangible fixed assets | 3,995 | 3,252 | |||
═══════ |
═══════ |
||||
| 12. | Independent examination fees | ||||
| 2024 | 2023 | ||||
| £ | £ | ||||
| Fees payable to the independent examiner for: | |||||
| Independent examination of the financial statements | 3,930 | 3,431 | |||
═══════ |
═══════ |
- 19 -
Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
13. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| follows: | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Wages and salaries | 144,746 | 120,472 |
| Social security costs | 7,867 | 6,176 |
| Employer contributions to pension plans | 2,696 | 4,772 |
| Other employee benefits | 934 | – |
────────── |
────────── |
|
| 156,243 | 131,420 | |
══════════ |
══════════ |
| The average head count of employees during the year was 8 (2023: | The average head count of employees during the year was 8 (2023: | 7). The average | 7). The average |
|---|---|---|---|
| number of full-time equivalent employees during the year is analysed as | |||
| follows: | 2024 | 2023 | |
| No. | No. | ||
| Full time employees | 4 | 4 | |
| Part time employees | 1 | 1 | |
──── |
──── |
||
| 5 | 5 | ||
════ |
════ |
The average number of full time employees was 4 (2023: 4). The average number of part time employees was 4 (2023: 3).
No employee received employee benefits of more than £60,000 during the year (2023: Nil).
Key Management Personnel
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £38,538 (2023: £35,667).
14. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
No trustees claimed expenses or had their expenses met by the charity during the year.
- 20 -
Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
| 15. | Tangible fixed assets | |||
|---|---|---|---|---|
| Fixtures and | ||||
| fittings | Equipment | Total | ||
| £ | £ | £ | ||
| Cost | ||||
| At 1 April 2023 | 50,379 | 32,151 | 82,530 | |
| Additions | 7,398 | – | 7,398 | |
──────── |
──────── |
──────── |
||
| At 31 March 2024 | 57,777 | 32,151 | 89,928 | |
════════ |
════════ |
════════ |
||
| Depreciation | ||||
| At 1 April 2023 | 40,043 | 30,794 | 70,837 | |
| Charge for the year | 3,547 | 448 | 3,995 | |
──────── |
──────── |
──────── |
||
| At 31 March 2024 | 43,590 | 31,242 | 74,832 | |
════════ |
════════ |
════════ |
||
| Carrying amount | ||||
| At 31 March 2024 | 14,187 | 909 | 15,096 | |
════════ |
════════ |
════════ |
||
| At 31 March 2023 | 10,336 | 1,357 | 11,693 | |
════════ |
════════ |
════════ |
||
| 16. | Debtors | |||
| 2024 | 2023 | |||
| £ | £ | |||
| Other debtors | 684 | – | ||
════ |
════ |
|||
| 17. | Creditors: amounts falling due within one year | |||
| 2024 | 2023 | |||
| £ | £ | |||
| Accruals and deferred income | 3,760 | 2,831 | ||
═══════ |
═══════ |
18. Pensions and other post-retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £2,696 (2023: £4,772).
- 21 -
Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
19. Analysis of charitable funds
Unrestricted funds
| At | |||||
|---|---|---|---|---|---|
| At | 31 March 20 | ||||
| 1 April 2023 | Income | Expenditure | Transfers | 24 | |
| £ | £ | £ | £ | £ | |
| General funds | 43,163 | 244,973 | (218,896) | (7,300) | 61,940 |
| Grocery store | |||||
| designated fund | 2,718 | 49,751 | (48,291) | 7,300 | 11,478 |
──────── |
────────── |
────────── |
─────── |
──────── |
|
| 45,881 | 294,724 | (267,187) | – | 73,418 | |
════════ |
══════════ |
══════════ |
═══════ |
════════ |
|
| At | |||||
| At | 31 March 20 | ||||
| 1 April 2022 | Income | Expenditure | Transfers | 23 | |
| £ | £ | £ | £ | £ | |
| General funds | 50,953 | 189,090 | (196,880) | – | 43,163 |
| Grocery store | |||||
| designated fund | – | 86,593 | (83,875) | – | 2,718 |
──────── |
────────── |
────────── |
──── |
──────── |
|
50,953════════ |
275,683══════════ |
(280,755)══════════ |
–════ |
45,881════════ |
Grocery store designated fund - Victory Grocery Store was established to help local families that are being adversely affected by the rise in the cost of living. All can register as a member for an annual fee of £5, which allows them to shop twice a week. The £4 shop includes 5 fresh fruit/veg, 1 bakery item, 2 dairy/chilled items, 5 cupboard items, 1 frozen item, and 1 personal care item. Grants were submitted to support the delivery of the store. The grants either covered the store salaries or contributed towards the purchase of the items needed for the £4 shop.
Transfer from unrestricted to grocery store designated fund - The transfer of £7,300 from the unrestricted fund to the grocery store designated fund was to support the delivery of the ministry of the grocery store. The leadership believed in the vision and the model, but realised the ministry required an initial investment.
Restricted funds
| Restricted funds | |||||
|---|---|---|---|---|---|
| At 1 | At 31 | ||||
| April 2023 | Income | Expenditure | Transfers | March 2024 | |
| £ | £ | £ | £ | £ | |
| Missions | 25,865 | 41,542 | (39,953) | – | 27,454 |
| Youth Development | |||||
| Fund | 2,877 | 10,708 | (6,600) | – | 6,985 |
| The Ark capital fund | 3,391 | – | (678) | – | 2,713 |
| Campus and church | |||||
| planting fund | 6,459 | 41,652 | (28,286) | – | 19,825 |
| Supported housing | |||||
| fund | 4,304 | 77,646 | (74,991) | – | 6,959 |
| Miscellaneous | |||||
| restricted donations | – | 900 | (900) | – | – |
- 22 -
Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
19. Analysis of charitable funds (continued)
| Helping Hands food | |||||
|---|---|---|---|---|---|
| bank | 217 | 73 | (272) | – | 18 |
| Vision Appeal | 6,212 | 6,632 | (6,817) | – | 6,027 |
| Mission Appeal | 43 | 34,207 | (32,588) | – | 1,662 |
| Academy Fund | 1,714 | 1,265 | (1,851) | – | 1,128 |
| External Grant Funding | 10,000 | 2 | (10,000) | – | 2 |
| Joseph Frank Trust | – | 12,500 | (11,458) | – | 1,042 |
| Torfaen County | |||||
| Borough Council | |||||
| Resilience Fund | – | 13,495 | (13,495) | – | – |
| Food 4 Growth | – | 14,000 | (14,000) | – | – |
| Torfaen County | |||||
| Borough Council | – | 7,500 | (7,500) | – | – |
| Operation Blessing | – | 14,820 | (14,820) | – | – |
| Love Christmas | – | 1,500 | (1,500) | – | – |
──────── |
────────── |
────────── |
──── |
──────── |
|
| 61,082 | 278,442 | (265,709) | – | 73,815 | |
════════ |
══════════ |
══════════ |
════ |
════════ |
|
| At 1 | At 31 | ||||
| April 2022 | Income | Expenditure | Transfers | March 2023 | |
| £ | £ | £ | £ | £ | |
| Missions | 26,113 | 21,103 | (21,351) | – | 25,865 |
| Youth Development | |||||
| Fund | 2,939 | 1,771 | (1,833) | – | 2,877 |
| The Ark capital fund | 4,239 | – | (848) | – | 3,391 |
| Campus and church | |||||
| planting fund | 10,233 | 19,639 | (23,413) | – | 6,459 |
| Supported housing | |||||
| fund | 1,145 | 85,097 | (81,938) | – | 4,304 |
| Miscellaneous | |||||
| restricted donations | 190 | – | (190) | – | – |
| Helping Hands food | |||||
| bank | 1,241 | 326 | (1,350) | – | 217 |
| Vision Appeal | 3,348 | 7,860 | (4,996) | – | 6,212 |
| Mission Appeal | 2,823 | 11,889 | (14,669) | – | 43 |
| Academy Fund | 1,515 | 3,937 | (3,738) | – | 1,714 |
| External Grant Funding | 14,787 | 50,991 | (55,778) | – | 10,000 |
──────── |
────────── |
────────── |
──── |
──────── |
|
| 68,573 | 202,613 | (210,104) | – | 61,082 | |
════════ |
══════════ |
══════════ |
════ |
════════ |
- 23 -
Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
19. Analysis of charitable funds (continued)
Restricted funds are as follows:
Missions - to support international missions work of Victory Church Philippines, Victory Church Sofia and other ministries in Uganda, Romania and USA.
The Ark capital fund - relates to donations received to purchase capital equipment for The Ark Play Centre
Campus and church planting fund - to provide funds to plant new Churches in different areas
Supported housing fund - to provide housing and a support package for males transitioning from homelessness or rehabilitation.
Miscellaneous restricted donations - from time to time, donations are given to the church with a specific purpose. These are then spent in accordance with the donor's wishes
Helping Hands - to provide food hampers for the most needy families during the Christmas period.
Vision Appeal - to support the vision of the church to multiply the ministry in more communities.
Mission Appeal - to support the local and international outreach ministry.
Academy Fund - Victory Church Academy is a theology and leadership training programme. Students enrol for the academic course which runs from September to July.
External Grant Fund
-
to develop the grocery store to help local families to eat well at an affordable price, giving people a hand-up.
-
to create a warm, safe and accessible space to enable the community to connect with others, build friendships, and receive support during the cost of living crisis.
-
to produce Bags of Kindness to spread the joy of Christmas; for the most vulnerable to experience the joy and hope that Christmas promises.
Joseph Frank Trust - Grant to part fund a Personal Assistant role
Torfaen County Borough Council Resilience Fund - Grant received to fund the installation of a hive heating system, purchase outdoor furniture, and to create an outdoor eating area to extend the cafe.
Food 4 Growth - to part fund the staffing costs of the grocery store manager.
Torfaen County Borough Council - to part fund the staffing costs of the grocery store manager
Operation Blessing - to purchase food for the £4/£5 shop initiative
Love Christmas - to part fund bags of hope, Christmas food hampers for those in need.
- 24 -
Victory Church Cwmbran
Notes to the Financial Statements (continued)
Year ended 31 March 2024
20. Analysis of net assets between funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2024 | |
| £ | £ | £ | |
| Tangible fixed assets | 10,250 | 4,846 | 15,096 |
| Current assets | 66,928 | 68,969 | 135,897 |
| Creditors less than 1 year | (3,760) | – | (3,760) |
──────── |
──────── |
────────── |
|
| Net assets | 73,418 | 73,815 | 147,233 |
════════ |
════════ |
══════════ |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2023 | |
| £ | £ | £ | |
| Tangible fixed assets | 5,465 | 6,228 | 11,693 |
| Current assets | 43,247 | 54,854 | 98,101 |
| Creditors less than 1 year | (2,831) | – | (2,831) |
──────── |
──────── |
────────── |
|
| Net assets | 45,881 | 61,082 | 106,963 |
════════ |
════════ |
══════════ |
|
| Analysis of changes in net debt | |||
| At | At | ||
| 1 Apr 2023 | Cash flows | 31 Mar 2024 | |
| £ | £ | £ | |
| Cash at bank and in hand | 98,101 | 37,112 | 135,213 |
════════ |
════════ |
══════════ |
21. Analysis of changes in net debt
22. Operating lease commitments
The total future minimum lease payments under non-cancellable operating leases are as follows:
| follows: | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Not later than 1 year | 48,250 | 46,750 |
| Later than 1 year and not later than 5 years | 189,750 | 198,750 |
| Later than 5 years | 137,500 | 187,500 |
────────── |
────────── |
|
| 375,500 | 433,000 | |
══════════ |
══════════ |
23. Related parties
The total amount of donations received from trustees without conditions, during the year, was £8,421 (2023: £6,914).
During the year, the charity leased properties from Newport Furnishers Limited. Mr M Sheppard, a trustee of the charity, is also a director of Newport Furnishers Limited. The rent is based on market value and totalled £36,316 during the year (2023: £31,264).
No purchases were made with companies controlled by trustees during 2024 (2023: £10,540).
- 25 -