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← Neighbourhood Church

2023-12-31-accounts

Neighbourhood Church

Report and Accounts Year ended 31 December 2023

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1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk

NEIGHBOURHOOD CHURCH

COMPANY INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2023

Trustees Brian Roy Nunes
Leslie Matthews (appointed 3 April 2023)
James Webb
Ben Edge
Key Staff Simon Lang
Daniel Leeves
Governing Document Memorandum and Articles of Association dated
14 March 2012
Company Registration Number 07990543
Charity Registration Number 1146886
Registered Office The Hall
Cromwell Road
Beckenham
Kent
BR3 4LW
Independent Examiner Lourens du Plessis ACA CA(SA)
Stewardship
1 Lamb's Passage
London
EC1Y 8AB
Bankers Lloyds TSB
Contents Page
Company Information 1
Trustees' Annual Report 2-5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Accounts 9-15
Detailed Statement of Financial Activities with Comparatives 16

Page 1

NEIGHBOURHOOD CHURCH

TRUSTEES' ANNUAL REPORT (INCORPORATING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2023

The trustee, who are also directors for the purposes of company law, are pleased to present their report together with the financial statements for the year ended 31 December 2023.

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 as indicated on the charity information page.

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.

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

2023 has been another year of Neighbourhood Church growing and flourishing. There is a vitality and vibrancy to our church life as new people across the age ranges are welcomed on a regular basis; there's a depth of activities that reflect the life of the church, and the building is used by a wide range of community groups.

Page 2

NEIGHBOURHOOD CHURCH

TRUSTEES' ANNUAL REPORT (INCORPORATING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2023

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. There's a new group aimed at seniors (Tuesdays at Neighbourhood) which offers a weekly place for older folk to meet, chat, play games, do puzzles and get to know others.

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 Alpha group which enabled adults to explore and develop their Christian faith. This then led to a follow-up group for people to keep exploring the 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 our Christmas events are always well-received by the local community - Carols around the Tree, Christmas Eve Carols, and a Pop-Up Nativity aimed at younger children.

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 July, the church held another weekend away - the 2022 one had been so successful that we decided to do another. This was a wonderful time away giving opportunity for new members to integrate into the church and for relationships to be strengthened.

The church youth group offers a fun and varied programme for 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 also attended a summer youth festival. They are planning to attend this event again in 2024.

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. We did a "No-Mow May" which attracted positive comments from local residents. They have also recently successfully applied for an Eco-Audit - to explore ways of making our building and organisation more environmentally friendly.

The church Leadership Team and Trustees regularly comment on the growth in numbers and church life that we see across the board - there is a buzz and energy amongst the people.

Page 3

NEIGHBOURHOOD CHURCH

TRUSTEES' ANNUAL REPORT (INCORPORATING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2023

Financial Review

The trustees were pleased with the financial results for the year; as a result of the church's generous giving from regular attendees, donations were higher than budgeted, and rental income, the church's second main source of income after giving, was in-line with the budgeted amount for the year. Total incoming resources for the year were £128,951 (2022 - £108,967), total resources expended for the year were £137,585 (2022 - £109,269) and total free reserves (total reserves less restricted reserves and fixed assets) were £43,936 (2022 - £51,633). Further details of the financial results can be seen in the Statement of Financial Activities (SOFA) on page 7.

The church is forecasting a deficit budget for 2024. However, the trustees were conservative in the budgeting of donations, and it is now anticipated these may exceed the budget for the 2024 financial year; actual donations for the first four months of 2024 are already above the budgeted average for the year. 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.

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.

The church receives no guaranteed income. However, we have been blessed by very faithful and generous givers; at the end of 2023 we had 32 regular contributing individuals/family units (2022 - 27). However, out of that seven individuals/family units contribute approximately 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 £34,000. 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 2023 of £43,936 (2022 - £51,633) are reasonable.

Page 4

NEIGHBOURHOOD CHURCH

TRUSTEES' ANNUAL REPORT (INCORPORATING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2023

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:

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:

RoyNunes

RoyNunes (Aug 26, 2024 19:42 GMT+1)

Roy Nunes (chair) Date: Aug 26, 2024 Trustee

Charity number: 1146886 Company number: 7990543

Page 5

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 2023 on pages 7 to 16 following, which have been prepared on the basis of the accounting policies set out on pages 9 to 10.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

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

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Lourens du Plessis

Lourens du Plessis (Aug 29, 2024 10:49 GMT+1)

Lourens du Plessis ACA CA(SA) Stewardship 1 Lamb's Passage London EC1Y 8AB

Date: Aug 29, 2024

Page 6

NEIGHBOURHOOD CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Note
INCOME AND ENDOWMENTS FROM:
Donations
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income and endowments
EXPENDITURE ON:
Charitable activities
7
Total expenditure
Net income/(expenditure)
Transfers between funds
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
13		 Unrestricted
Funds
£
96,532
13,129
16,339
384
126,384
133,887
133,887
(7,503)
-
(7,503)
333,625
326,122		 Restricted
Funds
£
2,567
-
-
-
2,567
3,698
3,698
(1,131)
-
(1,131)
3,543
2,412		 Total
Funds
2023
£
99,099
13,129
16,339
384
128,951
137,585
137,585
(8,634)
-
(8,634)
337,168
328,534		 Total
Funds
2022
£
86,001
6,612
16,328
26
108,967
109,269
109,269
(302)
-
(302)
337,470
337,168

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

All income and expenditure derive from continuing operations.

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 page 9 - 15 form part of these accounts.

Page 7

NEIGHBOURHOOD CHURCH

BALANCE SHEET

AS AT 31 DECEMBER 2023

Note
FIXED ASSETS
Tangible assets
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
10
CREDITORS: Amounts falling
due within one year
11
Net current assets / (liabilities)
Total assets less current liabilities
Net assets / (liabilities) excluding
pension asset / (liability)
TOTAL NET ASSETS
FUND BALANCES
13
Unrestricted Funds
General funds
Designated funds
Restricted Funds		 Unrestricted
Funds
£
282,185
282,185
10,283
38,436
48,719
(4,782)
43,937
326,122
326,122
326,122
22,937
303,185
326,122
-
326,122		 Restricted
Funds
£
-
-
256
2,156
2,412
-
2,412
2,412
2,412
2,412
-
-
-
2,412
2,412		 Total
Funds
2023
£
282,185
282,185
10,539
40,591
51,131
(4,782)
46,349
328,534
328,534
328,534
22,937
303,185
326,122
2,412
328,534		 Total
Funds
2022
£
281,992
281,992
9,128
52,155
61,283
(6,107)
55,176
337,168
337,168
337,168
32,633
300,992
333,625
3,543
337,168

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 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 financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors and were signed on its behalf by:

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----- Start of picture text -----
RoyNunes
RoyNunes (Aug 26, 2024 19:42 GMT+1) ---------------------------------------
Roy Nunes
Date: _______ Aug 26, 2024
Company number: 07990543 Charity number: 1146886
----- End of picture text -----

The notes on page 9 - 15 form part of these accounts.

Page 8

NEIGHBOURHOOD CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1 Statutory Information

The charity is a charitable company limited by guarantee and is incorporated in the United Kingdom. The company's 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 historical cost convention.

These 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) ("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 charity meets the definition of a public benefit entity as set out in FRS 102.

The principles adopted in the preparation of the financial statements are set out below.

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 charity 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. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

b) Income

Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from donations includes:

Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church retreats and other events and courses.

Investment income represents income generated by the charity's assets and includes income from letting the charity's property and bank interest.

c) Expenditure

Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably. The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.

d) Fund accounting

Page 9

NEIGHBOURHOOD CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

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 Equipment Over 3 to 7 years

The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.

f) Pension scheme arrangements

The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.

g) 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.

h) Financial instruments

The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).

The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.

3 Donations

Donations
Donations of cash and similar
Income tax recoverable
Income from charitable activities
Songbirds (children's music group)
Community events
Weekend away
Youth trips
Income from other trading activities
Hall rental income
Investment income
Bank interest		 2023
£
82,240
16,858
99,099
2023
£
2,194
4,682
4,905
1,348
13,129
2023
£
16,339
16,339
2023
£
384
384		 2022
£
70,106
15,895
86,001
2022
£
2,125
2,227
2,260
-
6,612
2022
£
16,328
16,328
2022
£
26
26

Page 10

NEIGHBOURHOOD CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

7 Analysis of expenditure

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 6c)_		 Activities
undertaken
directly
£
51,705
8,402
13,691
43,817
12,749
130,364		 Support
costs
(note 6b)
£
3,610
-
722
2,888
-
7,221		 Total
2023
£
55,315
8,402
14,413
46,705
12,749
137,585		 Total
2022
£
46,743
7,075
11,288
37,139
7,024
109,269

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:

activity. The overall allocation is as follows:
Governance costs
Stationery and supplies
Insurance and memberships
Payroll administration fee		 Teaching
£
923
534
1,866
288
3,610		 Children
£
185
107
373
58
722		 Community
activities
£
738
427
1,493
230
2,888		 Total
2023
£
1,845
1,068
3,732
576
7,221		 Total
2022
£
1,033
1,650
5,994
551
9,228

Included in the total governance costs is the fee payable to the independent examiner for preparing and examining the accounts, £1,770 (2022: £990); in addition the charity paid £576 (2022: £551) to Stewardship for payroll bureau services.

c Grants payable

Grants for UK and overseas mission
Grants for the relief of poverty
Grants for support of social care
The comparatives for the previous year are as follows:
Grants for UK and overseas mission
Grants for the relief of poverty
Grants for support of social care
The charity's principal grants to institutions comprised:
InterChristian Fellowships' Evangelical Mission (IcFEM)
Christians Against Poverty (CAP)
Christian Aid
Living Well Bromley
Grants to institutions for less than £1,000 each		 Institutions
£
3,000
7,000
471
10,471
Institutions
£
3,000
2,650
-
5,650		 Individuals
£
-
2,278
-
2,278
Individuals
£
-
1,374
-
1,374
2023
£
3,000
2,240
2,000
1,830
1,401
10,471		 2023
£
3,000
9,278
471
12,749
2022
£
3,000
4,024
-
7,024
2022
£
3,000
-
-
-
2,650
5,650

Page 11

NEIGHBOURHOOD CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

8 Analysis of staff costs, the cost of key management personnel and trustee remuneration

ysis of staff costs, the cost of key management personnel and trustee remuneration
Gross wages and salaries
Social security
Pension costs
Other employment benefits		 2023
£
75,935
2,976
4,950
83,861		 2022
£
63,950
1,523
4,320
-
69,793

The average monthly number of employees during the year was 2 (2022: 2). Most of the charity's activities are carried out by volunteers.

No staff received salaries at a rate of more than £60,000 per annum.

The charity's key management comprise the key staff named on the Company Information page. The charity's key management comprise the key staff named on the Company Information page. Total employment benefits payable to key management for the year were as follows:

During the year key management received employment benefits totalling £83,861 (2022: £69,793).

No trustees received employment benefits in either the current or preceding year.

8 Tangible fixed assets

Cost (or valuation)
At 1 January 2023
Additions
Gains / (losses) on revaluation
Disposals
At 31 December 2023
Accumulated depreciation
At 1 January 2023
Charge for the year
Eliminated on disposal
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Freehold
Building
£
280,000
-
-
-
280,000
-
-
-
-
280,000
280,000		 Equipment
£
2,349
1,211
-
-
3,560
357
1,018
-
1,375
2,185
1,992		 Total
2023
£
282,349
1,211
-
-
283,560
357
1,018
-
1,375
282,185
281,992

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.

Page 12

NEIGHBOURHOOD CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

9 Debtors

ors
Falling due within one year:
Trade debtors
Tax recoverable
Prepayments and accrued income		 2023
£
1,320
9,173
47
10,539		 2022
£
719
7,959
450
9,128
10
Cash at Bank and in Hand
Cash at bank with immediate access
Petty cash
11
Creditors: liabilities falling due within one year
Accruals
Deferred income		 2023
£
40,454
137
40,591
2023
£
3,072
1,710
4,782		 2022
£
52,019
136
52,155
2022
£
4,907
1,200
6,107

12 Pension commitments

During the year employer’s pension contributions totalling £4,950 (2022: £4,320) were payable to defined contribution personal pension schemes. No pension contributions were owing at the balance sheet date (2022: £566).

13 Funds

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

Designated Funds
Roof maintenance fund
Unforeseen events fund
Fixed Assets fund
General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
Welfare fund
Giving fund
Aggregate of funds		 Opening
balance
2023
£
14,000
5,000
281,992
300,992
32,633
333,625
2,802
741
3,543
337,168		 Incoming
resources
2023
£
-
-
-
-
126,384
126,384
1,000
1,567
2,567
128,951		 Outgoing
resources
2023
£
-
-
-
-
(133,887)
(133,887)
(2,278)
(1,420)
(3,698)
(137,585)		 Transfers
in the year
2023
£
2,000
-
193
2,193
(2,193)
-
-
-
-
-		 Gains and
losses
2023
£
-
-
-
-
-
-
-
-
-
-		 Closing
balance
2023
£
16,000
5,000
282,185
303,185
22,937
326,122
1,524
888
2,412
328,534

Page 13

NEIGHBOURHOOD CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

The transfers referred to above were made for the following reasons:

Analysis of net assets by fund

The assets and liabilities of the various funds were as follows:

General
Designated
funds
funds
£
£
Tangible fixed assets
-
282,185
Debtors
10,283
-
Cash at bank and in hand
17,436
21,000
Creditors falling due within one year
(4,782)
-
22,937
303,185
In the previous year the movements in the charity's funds were as follows:
Opening
Incoming
Outgoing
Transfers
balance
resources
resources
in the year
2022
2022
2022
2022
£
£
£
£
Designated Funds
Roof maintenance fund
12,000
-
-
2,000
Unforeseen events fund
5,000
-
-
-
Fixed Assets fund
280,621
-
-
1,371
297,621
-
-
3,371
General Unrestricted Funds
35,442
105,966
(106,224)
(2,551)
Total Unrestricted Funds
333,063
105,966
(106,224)
820
Restricted Funds
Welfare fund
2,988
1,188
(1,374)
-
Giving fund
1,419
1,813
(1,671)
(820)
4,407
3,001
(3,045)
(820)
Aggregate of funds
337,470
108,967
(109,269)
-
Unrestricted Funds		 Restricted
funds
£
-
256
2,156
-
2,412
Gains and
losses
2022
£
-
-
-
-
-
-
-
-
-
-		 2023
£
282,185
10,539
40,591
(4,782)
328,534
Closing
balance
2022
£
14,000
5,000
281,992
300,992
32,633
333,625
2,802
741
3,543
337,168

Analysis of net assets by fund

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

Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year		 General
Designated
funds
funds
£
£
-
281,992
9,128
-
29,612
19,000
(6,107)
-
32,633
300,992
Unrestricted Funds		 Restricted
funds
£
-
-
3,543
-
3,543		 2022
£
281,992
9,128
52,155
(6,107)
General
funds
£
-
9,128
29,612
(6,107)
32,633
337,168

Page 14

NEIGHBOURHOOD CHURCH

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Restricted Funds

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 Giving Fund represents donations received specifically for youth work.

14 Transactions with related parties

During the year the charity:

Except as disclosed in note 7 'Analysis of staff costs', there have been no other transactions with related parties during the year.

15 Members

Each member of the company commits to contribute if the charity is wound up an amount of £1.

Page 15

NEIGHBOURHOOD CHURCH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE YEAR ENDED 31 DECEMBER 2023

Note
INCOME AND ENDOWMENTS FROM:
Donations
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income and endowments
EXPENDITURE ON:
Charitable activities:
7
Total Expenditure
Net income/(expenditure)
Transfers between funds
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
13		 General
Designated
2023
2023
£
£
96,532
13,129
16,339
384
126,384
-
133,887
133,887
-
(7,503)
-
(2,193)
2,193
(9,696)
2,193
32,633
300,992
22,937
303,185
Unrestricted funds		 Restricted
2023
£
2,567
2,567
3,698
3,698
(1,131)
-
(1,131)
3,543
2,412		 Total
2023
£
99,099
13,129
16,339
384
128,951
137,585
137,585
(8,634)
-
(8,634)
337,168
328,534		 General
Designated
2022
2022
£
£
83,000
6,612
16,328
26
105,966
-
106,224
106,224
-
(258)
-
(2,551)
3,371
(2,809)
3,371
35,442
297,621
32,633
300,992
Unrestricted funds		 Restricted
2022
£
3,001
3,001
3,045
3,045
(44)
(820)
(864)
4,407
3,543		 Total
2022
£
86,001
6,612
16,328
26
108,967
109,269
109,269
(302)
-
(302)
337,470
337,168

Page 16