OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-12-31-accounts

Neighbourhood Church (a company limited by guarantee)

Report and Financial Statements Year ended 31 December 2022

Neighbourhood Church

Company Information

Contents Page
Trustees' report 2
Independent examiner's report 8
Statement of financial activities 9
Balance sheet 10
Notes to the financial statements 11
Administration
Registered office The Hall
Cromwell Road
Beckenham
Kent
BR3 4LW
Charity registration number 1146886
Company registration number 7990543
Governing document Memorandum and Articles of Association
Dated 14 March 2012
Trustees and directors Ben Edge
Brian R Nunes
James Webb
Miranda Thomas_(resigned 21 April 2022)_
Leslie Matthews_(appointed 3 April 2023)_
Key management Simon Lang
Daniel Leeves
Bankers Lloyds TSB
Independent examiners Lourens du Plessis
Stewardship
1 Lamb's Passage
London
EC1Y 8AB

1

Neighbourhood Church

Trustees' report for the year ended 31 December 2022

The trustees are pleased to present their report together with the financial statements for the year ended 31 December 2022.

Status and Governing Document

Neighbourhood Church, a charitable company limited by guarantee, was constituted by Memorandum & Articles of Association on 14 March 2012.

Trustees and Directors

The trustees, who are also directors of the company, throughout the period and at the date of approval were:

Ben Edge

Brian R Nunes James Webb Miranda Thomas (resigned 21 April 2022) Leslie Matthews (appointed 3 April 2023)

The powers of appointment or removal of trustees/directors rests with the trustees/directors.

Objects

The primary objects of Neighbourhood Church, for public benefit, are to advance the Christian faith, in accordance with our Statement of Faith, in the London Borough of Bromley and in such other parts of the United Kingdom and the world as the trustees may from time to time think fit. The church will also fulfil such other purposes which are exclusively charitable, according to the law of England and Wales, and are connected to the charitable work of the charity, as the trustees may from time to time think fit.

The Church: Its Aims and Objectives

Neighbourhood Church is a small and growing local church based in Beckenham, South East London, rooted in orthodox Christian faith. We subscribe to the ancient Apostles' Creed and to the Evangelical Alliance's Statement of Faith.

With a desire to be welcoming, informal and 'real', we provide a place for people to meet at whatever stage of their faith journey. Comprising a mix of all ages, Neighbourhood Church meets every Sunday as a large gathering and also in small groups throughout the week. Encouraging people to grow in their Christian faith, we provide a variety of learning opportunities. With a heart for the local community, Neighbourhood Church seeks ways to serve people and meet needs.

Our vision is to be a church made up of a growing number of people who are seeking, sharing and living out their Christian faith in a way that brings blessing to people and communities around them. Our members live out their faith where they live, where they work and with the people they encounter, having a positive impact on wider society.

Neighbourhood Church is organised and directed by the leadership team and the trustees. The trustees administer the church in accordance with its Memorandum & Articles of Association dated 14 March 2012 and with regard to meeting the needs for which it was set up. They are also responsible for helping Neighbourhood Church to comply with applicable law and regulations. The trustees have overall financial responsibility for the church.

2

Neighbourhood Church

Trustees' report for the year ended 31 December 2022 (continued)

The Church: Its Aims and Objectives (continued)

The leadership team take on responsibility for the day-to-day outworking of the church's vision and mission. They are responsible for the spiritual oversight of the church, its activities and teaching. The leadership team is made up of the pastor and assistant pastor, along with volunteers who are committed members of Neighbourhood Church and who share in, and own, the beliefs, vision, values and ethos of the church.

The Year in Review

In 2022, due to the lifting of all covid pandemic restrictions, the church fully return to a 'normal' (pre-pandemic) level of operation and activity. The church has welcomed new members and continues to grow. There is a health and vibrancy seen in a growing spread of ages.

Teaching

Teaching in line with the church's beliefs and statement of faith continued to occur on Sundays and in mid-week groups. Teaching is varied, age-appropriate, and covers a range of Biblical themes, and is delivered by the teaching team of Neighbourhood Church. There are four mid-week small groups, three in person and one which meets online. There is also a well-attended, growing youth group.

Community Activities

The church engages with the community in a variety of ways:

Songbirds, a music group for young children and their carers, offers two sessions on a Monday morning. The group aims to meet a need in the community for low-cost activities for young children and a place for carers to meet.

The church rents the building to outside organisations for activities which further benefit the community. Those activities currently include the NCT Breastfeeding Café, a Bumps & Babies playgroup, a children's choir, an adult choir, a sewing class and a ukelele group. The church also rents the building to local families for children’s birthday parties, and allows the local residents to use it for their street parties.

The church is a collection centre for a local food bank which seeks to provide individuals and families in need with food and toiletries. The church is also used as a local polling station.

Neighbourhood Sessions, a community focused evening of live music, meets approximately four times per year, and offers high-quality music at low cost.

Outreach

The church offered a well-received 'post-Alpha' group which enabled adults to further explore and develop their Christian faith.

In October we held a ‘Light it Up’ event to coincide with Halloween – offering games, activities, snacks and treats from the church garden. Over a hundred adults and children stopped by.

And for the first time since covid, the church held their annual Christmas evets, including the popular ‘Carols Around the Tree’ and Christmas Eve Carols; both were well-attended by the local community. There was also a Nativity Trail around the neighbourhood that local families took part in.

3

Neighbourhood Church

Trustees' report for the year ended 31 December 2022 (continued)

The Year in Review (continued)

Church Giving

The church gave money to people in need within the community and outside it, as deemed appropriate by the trustees and the leadership team.

Church Activities

In February 2022, the leadership team and a small group of church members began the Grow Course - a year-long course put on by The Gregory Centre for Church Multiplication (CCX) to 'support leaders, church teams and diocese across London, England and beyond as they multiply disciples, churches and networks’. This course was hugely helpful in encouraging the church to think about continued growth and impact in the community. As a result, the church leadership are re-structuring the church to facilitate growth. Linked to this, the leadership team continues to explored options for increased meeting space.

In July, the church held their first weekend away since before the pandemic. This was a wonderful time away giving opportunity for new members to integrate into the church and for relationships to be strengthened. Due to its success another weekend away is planned for 2023.

The church youth group offers a fun and varied programme to 11-18 year olds. Their recent teaching has included sessions on prayer and on relationships. They had a overnight trip away to a local residential activity centre and in 2023 they are planning to attend the Satellites youth event put on by Youthscape.

The church 'Eco Team' has continued to raise awareness and challenge thinking about climate and ecological issues. They have begun developing our outside space to encourage and enable wildlife. And they continue to encourage the church leadership team to bring our love of God's creation and our commitment to being better climate stewards into the teaching and worship life of the church.

Financial Review

The trustees were pleased with the financial results for the year. Whilst donations were lower than budgeted, the church was blessed with generous giving from regular attendees, and rental income, the church's second main source of income after giving, was slightly higher than the budgeted amount for the year. Total incoming resources for the year were £108,967 (2021 - £97,499), total resources expended for the year were £109,269 (2021 - £96,989) and total free reserves (total reserves less restricted reserves and fixed assets) were £51,633 (2021 - £52,442). Further details of the financial results can be seen in the Statement of Financial Activities (SOFA) on page 9.

Due to an increase in employment costs in September 2022, the church is forecasting a deficit budget for 2023. However, regular church attendance has been growing since the end of the pandemic, and as the trustees were conservative in the budgeting of donations, it is anticipated these may exceed the budget for the 2023 financial year; actual donations for the first three months of 2023 are already above the budgeted average for the year. However, the trustees will continue to monitor the financial situation closely and are prepared to cut costs should this become necessary. The trustees are therefore satisfied that Neighbourhood Church is viable financially for the foreseeable future. Additionally, the church has reasonable reserves that can be relied upon in the short term for any unforeseeable events.

4

Trustees' report for the year ended 31 December 2022 (continued)

Neighbourhood Church

Risk Management

The church is exposed to various risks - be they operational, financial or reputational. The trustees review the church's activities regularly to identify significant risks and, where possible, they take appropriate measures to mitigate those risks. All major insurable risks are mitigated with normal church's and employer's liability insurance.

Public Benefit

In planning the activities of the church, the trustees have applied the guidance on public benefit issued by the Charity Commission. To ensure the church remains compliant, the objectives and aims of the church are reviewed annually in light of the Commission's two key principles of public benefit:

  1. there must be an identifiable benefit or benefits, and

  2. that benefit must be for the public, or a section of the public.

The trustees believe the church has fulfilled their public benefit by:

Reserves Policy

The trustees of Neighbourhood Church along with the leadership team have formed a reserves policy which they believe reflects wise stewardship of the generosity of the congregation and of the church's other income, and is in accordance with the charity law requirement that income received by a charity must be spent within a reasonable timeframe and that trustees should be able to justify holding income as reserves.

There are three components to the church's reserves: one being money set aside to cover ongoing church costs in the event of an unexpected loss of income or an unexpected increase in regular running costs, the second component is money set aside for a specific future project and the third is a more general amount set aside to safeguard the church against unforeseen events.

5

Neighbourhood Church

Trustees' report for the year ended 31 December 2022 (continued)

Reserves Policy (continued)

The church receives no guaranteed income. However, we have been blessed by very faithful and generous givers; at the end of 2022 we had 27 regular contributing individuals/family units (2021 - 28). However, out of that seven individuals/family units contribute over 50% of our average monthly giving. Therefore, as our giving is not spread as widely as it may be in other churches and we are more reliant on specific monthly donations, the trustees and leadership team have agreed that it's reasonable to strive to keep in our general reserves three months of our average monthly expenses, approximately £32,000. We also anticipate that at sometime in the future the roof of the building will need to be repaired- with this in mind we plan to set aside £2,000-£3,000 per year as funds will allow, to help with the cost of this repair when it is needed. And finally, it was agreed that the reserves should also include a lump sum to cover any unforeseen events; this amount was agreed at £5,000. Therefore, the trustees and the leadership team have agreed that the total free reserves at the year end 31 December 2022 of £51,633 (2021 - £52,442) are reasonable.

Responsibilities of Trustees Under Company Law

The trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements, the trustees are required to:

6

Neighbourhood Church

Trustees' report for the year ended 31 December 2022 (continued)

Responsibilities of Trustees Under Company Law ( continued)

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the information included on the church website.

Small Company Provisions

This report has been prepared in accordance with the special provisions for small companies under part 15 of the Companies Act 2006.

Signed on behalf of the trustees:

Brian Nunes

B Nunes (chair) Date: 02 August 2023 Trustee

Charity number: 1146886 Company number: 7990543

7

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

NEIGHBOURHOOD CHURCH

('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2022 on pages 9 to 17 following, which have been prepared on the basis of the accounting policies set out on pages 11 and 12.

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

  1. the accounts do not accord with those records; or

  2. 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

  3. 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.

Lourens du Plessis

Lourens du Plessis ACA CA(SA)

08 August 2023

Stewardship 1 Lamb's Passage London, EC1Y 8AB

8

Neighbourhood Church

Statement of Financial Activities for the year ended 31 December 2022

----- Start of picture text -----
2022 2021
Unrestricted Restricted Total Total Unrestricted Restricted
funds funds funds funds
Notes £ £ £ £ £ £
Incoming Resources
Incoming resources from generated funds:
Voluntary income 3a 83,000 3,001 86,001 88,634 86,259 2,375
Activities for generating funds 3b 16,328 - 16,328 6,798 6,798 -
Investment income 26 - 26 5 5 -
Incoming resources from charitable activities 4 6,612 - 6,612 2,062 2,062 -
Total incoming resources 105,966 3,001 108,967 97,499 95,124 2,375
Resources Expended
Charitable activities 5a (105,404) (3,865) (109,269) (96,989) (95,703) (1,286)
Total resources expended (105,404) (3,865) (109,269) (96,989) (95,703) (1,286)
Net (Outgoing)/Incoming Resources for the Year 562 (864) (302) 510 (579) 1,089
Funds at 1 January 2022 333,063 4,407 337,470 336,960 333,642 3,318
Funds at 31 December 2022 333,625 3,543 337,168 337,470 333,063 4,407
----- End of picture text -----

The statement of financial activities includes all gains and losses in the year.

All incoming resources and resources expended derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account required by the Companies Act 2006.

The notes on pages 11 to 18 form part of these financial statements.

9

Neighbourhood Church

Balance Sheet as at 31 December 2022

----- Start of picture text -----
2022 2021
Notes £ £
Fixed Assets
Tangible assets 8 281,992 280,621
Current Assets
Debtors 9 9,128 7,028
Cash at bank and in hand 52,155 53,724
343,275 341,373
Current Liabilities
Sundry creditors 10 (6,107) (3,903)
Net Assets 337,168 337,470
Unrestricted Funds
General funds 12 32,633 35,442
Designated funds 12 300,992 297,621
Restricted Funds 12 3,543 4,407
Total Funds 337,168 337,470
----- End of picture text -----

These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities.

For the year ending 31 December 2022, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006, however, in accordance with Section 145 of the Charities Act 2011, the accounts have been examined by an independent examiner and their report has been included in these financial statements.

The directors (who are the charitable company's trustees for the purposes of charity law) acknowledge their responsibilities for:

These financial statements were approved by the trustees on 02 August 2023 and signed on their behalf by:

Brain Nunes

B Nunes (chair) Trustee

Charity number: 1146886 Company number: 7990543

The notes on pages 11 to 18 form part of these financial statements.

10

Notes forming part of the financial statements for the year ended 31 December 2022

Neighbourhood Church

1 Statutory Information

The church is a charitable company limited by guarantee and is incorporated in the United Kingdom; the registered number and registered office address can be found on the Company Information page.

2 Accounting Policies

These financial statements are prepared on a going concern basis, under the historic cost convention (unless otherwise stated in the notes to the accounts), and 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) (''the Charities SORP''), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (''FRS 102''), with the Companies Act 2006 and with the Charities Act 2011. The church meets the definition of a public benefit entity as set out in FRS 102.

The following are the accounting policies which have been applied in dealing with material items:

a) Going concern

The trustees (who are the charitable company's directors for the purposes of company law) have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the church to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. Based on the adequacy of the church’s reserves as at the balance sheet date, along with their knowledge of the church’s ability to meet bills, payments and other liabilities as they fall due, the trustees have a reasonable expectation that the church has sufficient resources to continue in operational existence for the foreseeable future. The accounts have therefore been prepared on the going concern basis, as there are no material uncertainties about the church’s ability to continue.

b) Cash flow statement

The trustees have taken advantage of the exemption in FRS 102 (section 1A Small Entities) and in the Charities SORP (FRS 102) from including a cash flow statement in the financial statements on the grounds that the company is small (by the definition stated in the Charities SORP (FRS 102)).

c) Company status

Neighbourhood Church is a company limited by guarantee. The members of the company are the trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

d) Fund accounting

Restricted funds are those received for use on specified purposes. Expenditure which meets those criteria is allocated to that fund.

Unrestricted funds are those received or generated that can be used for the general purposes of the church. Designated funds are unrestricted funds which have been designated for specific purposes by the trustees, for necessary work in connection with the on-going provision of services.

e) Incoming resources

Donated (voluntary) income without conditions attached is taken into account when received by the church.

Income received in circumstances where a claim for repayment of tax has been or will be made to the HM Revenue & Customs is grossed up for the tax recoverable. Any amount of tax not yet reclaimed from HM Revenue & Customs is shown within the church's debtors.

11

Neighbourhood Church

Notes forming part of the financial statements for the year ended 31 December 2022 (continued)

2 Accounting Policies (continued)

e) Incoming resources (continued)

Revenue grants are credited as incoming resources when they are receivable provided conditions for receipt have been complied with.

All other income is included in the SOFA when the church is legally entitled to the income.

Facilities, services and goods donated for the charity's own use are recognised as income when receivable at their value to the charity. Donated fixed assets are capitalised.

The charity has relied significantly upon volunteers in carrying out its activities during the year. In accordance with paragraph 6.18 of the SORP, the role of volunteers has not been recognised as income from donated services in the accounts.

f) Resources expended

Expenditure directly related to the charitable activities shown in note 5a is recognised on an accruals basis as the liability is incurred.

Church giving is recognised as expenditure at the earlier of when it is paid or when it is committed to the recipient in a manner which is intended to be acted upon.

g) Governance costs

The governance costs are those costs which related to the general running of the church as opposed to the direct management functions inherent in generating funds. These activities provide the governance infrastructure which allows the church to operate and to generate the information required for public accountability.

h) Support costs

Support costs are costs which whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity.

i) Fixed assets

Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £500 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:

Freehold land Is not depreciated (because it is not consumed by use) Freehold buildings Over 50 years after taking account of the building's residual value, unless both the annual depreciation charge and the accumulated depreciation are immaterial to the financial statements Equipment Over 3 to 7 years

j) Pension costs

The company operates a defined contribution scheme. Pension premiums are charged to the SOFA as they become payable. The assets of the scheme are held separately from those of the church in an independently administered fund.

k) Taxation

The company is a registered charity; it has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

12

Neighbourhood Church

Notes forming part of the financial statements for the year ended 31 December 2022 (continued)

3
4		 Incoming Resources from Generated Funds
a) Voluntary income
These comprise:
Offerings and other gifts
b) Activities for generating funds
Hall rental income
Incoming Resources from Charitable Activities
Songbirds (children's music group)
Coffee shop
Community events
Weekend away		 Total
Total
Unrestricted
Restricted
2022
2021
£
£
£
£
83,000
3,001
86,001
88,634
16,328
-
16,328
6,798
Total
Total
Unrestricted
Restricted
2022
2021
£
£
£
£
2,125
-
2,125
897
-
-
-
85
2,227
-
2,227
970
2,260
-
2,260
110
6,612
-
6,612
2,062

5 Resources Expended

a) Charitable activities

An analysis of the charitable activities and their expenditure is as follows:

Teaching and pastoral work
Outreach_(including Alpha & other courses)
Children's work
Community activities and church gatherings
Church giving (to institutions and individuals see Note 5d)_		 Activities
Support
undertaken
costs
Total
Total
directly
(note 5b)
2022
2021
£
£
£
£
42,129
4,614
46,743
41,964
7,075
-
7,075
6,457
10,365
923
11,288
8,225
33,448
3,691
37,139
30,393
7,024
-
7,024
9,950
100,041
9,228
109,269
96,989

13

Neighbourhood Church

Notes forming part of the financial statements for the year ended 31 December 2022 (continued)

5 Resources Expended (continued)

b) Support costs

The allocation of support costs has been based on the estimated time the church spends on any given activity. The overall allocation is as follows:

Governance costs
Stationery and supplies
Insurance and memberships
Payroll administration fee		 Community
Total
Total
Teaching
Children
activities
2022
2021
£
£
£
£
£
517
103
413
1,033
1,063
825
165
660
1,650
1,675
2,997
599
2,398
5,994
4,384
276
55
220
551
540
4,614
923
3,691
9,228
7,662

c) Governance costs

Included in the total governance costs of £1,033 (2021 - £1,063) is the payment of £990 (2021 - £960) to Stewardship for the independent accounts examination.

d) Church giving

The church gave money throughout the year in the following way, as deemed appropriate by the leadership team or when gifts were given for specific people/charities:

2022
Institutions
Individuals
Total
Institutions
£
£
£
£
Missionary Support
3,000
-
3,000
5,500
Relief of Poverty
2,650
1,374
4,024
2,170
Support of Social Care
-
-
-
1,000
5,650
1,374
7,024
8,670
The church's principal grants to institutions comprised:
InterChristian Fellowships' Evangelical Mission (IcFEM)		 2021
Individuals
Total
£
£
-
5,500
1,280
3,450
-
1,000
1,280
9,950
2022
2021
£
£
3,000
5,500

e) Staff costs

There were two employees during the year and their gross remuneration amounted to £63,950 (2021 - £58,192). Employers' national insurance costs amounted to £1,523 (2021 - £1,186) and contributions to the employees' pension plans were £4,320 (2021 - £3,924). Neither employee received employee benefits of more than £60,000; both employees were considered to be key management personnel of the charity.

14

Neighbourhood Church

Notes forming part of the financial statements for the year ended 31 December 2022 (continued)

6 Acting as Agent

On occasion the charity receives money on behalf of other charities or individuals, which it banks and then pays out to these charities or individuals. This income is received as agent for these other charities or individuals and the income, and the related payments, are excluded from the Statement of Financial Activities; any money that has not been distributed by the year end is recognised as a creditor.

During the year the charity acted as agent for an individual and, in that capacity, received and paid out £nil (2021 - £232).

7 Trustee Expenses

No remuneration or expenses was paid to any trustee, nor to any person connected to them, either during the year or the preceding year.

8 Fixed Assets

During 2019, The Hall Evangelical Church Trust donated the Hall Evangelical Church building to Neighbourhood Church. The church has had sole use, rent free, of the land and building since 2011. The trustees of Neighbourhood Church have been unable to obtain a reasonable historic cost value of the land and building as the original purchase was in 1925 and no records can be found.

The land has little commercial value due to the schedule of restrictive covenants held on the Register of Title. Since 2011 Neighbourhood Church has made multiple applications for planning permission to extend the building which have been denied by the council. Taking this into consideration the trustees have decided that it would be inappropriate to include a value for the land in these accounts, as without any developmental potential the land is virtually worthless.

The trustees have agreed not to have the building professionally valued as they do not believe the benefit of the valuation would outweigh the cost. The SORP states that donated facilities should be measured at their value to the charity. Neighbourhood Church uses the building for meeting on Sundays, mid-week gatherings, church-run groups which benefit the community and for rental purposes which raise funds for the church. The trustees, after taking into account that the local planning authorities have not granted any of the formal planning requests made to extend the building, have made an assessment of the value of the building to be £280,000 and have insured it for this amount.

The trustees plan to keep the building in good working order and therefore anticipate a high residual value. No depreciation is provided on the building as the currently estimated residual value of the property is not less than its carrying value and the remaining useful life of the building currently exceeds 50 years, so that any annual depreciation charge and the accumulated depreciation would be immaterial.

An impairment review will be carried out at each year-end by the trustees and any resultant loss identified included in expenditure for the year.

15

Neighbourhood Church

Notes forming part of the financial statements for the year ended 31 December 2022 (continued)

8 Fixed Assets (continued)

Cost (or valuation)
Opening balance 1 January 2022
Additions
Disposals
Closing balance at 31 December 2022
Depreciation
Opening balance 1 January 2022
Charge for the year
On disposals
Closing balance at 31 December 2022
Net book value
At 31 December 2021
At 31 December 2022
Debtors
Debtors comprise the following amounts receivable:
Gift aid recoverable
Trade debtors
Prepayments
Creditors
Short term creditors comprise the following amounts payable:
Accruals
Deferred income		 Freehold
Building
£
280,000
-
-
280,000
-
-
-
-
280,000
280,000		 Equipment
Total
£
£
699
280,699
1,650
1,650
-
-
2,349
280,621
78
78
279
279
-
-
357
357
621
280,621
1,992
281,992
2022
2021
£
£
7,959
5,967
719
1,015
450
46
9,128
7,028
2022
2021
£
£
4,907
2,198
1,200
1,705
6,107
3,903

9 Debtors

10 Creditors

11 Related Parties

In total, the trustees, their related parties and the church's key management personnel contributed £19,810 (2021 - £19,355) to the church during the year. Fees payable to Stewardship, other than for the independent examination, were for payroll bureau services and totalled £551 (2021 - £540).

16

Neighbourhood Church

Notes forming part of the financial statements for the year ended 31 December 2022 (continued)

12 Funds

During the year the movements in the church's funds were as follows:

Restricted Funds
Welfare fund
Giving		 Opening
Incoming
Outgoing
Transfers
Closing
balance
resources
resources
in the year
balance
2022
2022
2022
2022
2022
£
£
£
£
£
2,988
1,188
(1,374)
-
2,802
1,419
1,813
(1,671)
(820)
741
4,407
3,001
(3,045)
(820)
3,543

The Welfare fund is used to help individuals and families who are struggling financially on a short-term basis. Members of the church give specifically into this fund and money is paid out to recipients as and when it's deemed appropriate by the leadership team. The restricted giving received during the year related to donations received specifically for youth work. The transfer in the year of £820 is to correct the fund's brought forward value; a 2021 payment from the youth fund for the youth weekend away was not deducted from this restricted fund in 2021, as the weekend away was delayed until 2022.

Designated Funds

Roof maintenance
Unforeseen events
Fixed assets
General Funds
Total Funds		 12,000
-
-
2,000
14,000
5,000
-
-
-
5,000
280,621
-
-
1,371
281,992
297,621
-
-
3,371
300,992
35,442
105,966
(105,404)
(3,371)
32,633
337,470
108,967
(108,449)
(820)
337,168

The assets and liabilities represented by the various funds are as follows:

Fixed assets
Debtors
Cash at bank and in hand
Creditors		 Unrestricted
Unrestricted
General
Designated
Restricted
Total
funds
funds
funds
2022
£
£
£
£
-
281,992
-
281,992
9,128
-
-
9,128
29,612
19,000
3,543
52,155
(6,107)
-
-
(6,107)
32,633
300,992
3,543
337,168

17

Neighbourhood Church

Notes forming part of the financial statements for the year ended 31 December 2022 (continued)

12 Funds (continued)

In the previous year the movements in the church's funds were as follows:

Restricted Funds
Welfare fund
Giving
Designated Funds
Roof maintenance
Unforeseen events
Fixed assets
General Funds
Total Funds		 Opening
Incoming
Outgoing
Transfers
Closing
balance
resources
resources
in the year
balance
2021
2021
2021
2021
2021
£
£
£
£
£
3,318
750
(1,080)
-
2,988
-
1,625
(206)
-
1,419
3,318
2,375
(1,286)
-
4,407
10,000
-
-
2,000
12,000
5,000
-
-
-
5,000
280,000
-
-
621
280,621
295,000
-
-
2,621
297,621
38,642
95,124
(95,703)
(2,621)
35,442
336,960
97,499
(96,989)
-
337,470

In the previous year, the assets and liabilities of the various funds were as follows:

Fixed assets
Debtors
Cash at bank and in hand
Creditors		 Unrestricted
Unrestricted
General
Designated
Restricted
Total
funds
funds
funds
2021
£
£
£
£
-
280,621
-
280,621
7,028
-
-
7,028
32,317
17,000
4,407
53,724
(3,903)
-
-
(3,903)
35,442
297,621
4,407
337,470

18