ANNUAL IMPACT REPORT,-2022 IRiNiIY WELCOME... 11 s 1)tl4Trri .11) t xcitini, Vi thr ()1 r Im.i%iiiiiiK Wt Vlslon St4)leiiiv.nl. .1 Ivlno Illv to tli# liill ljy iliiiwlfiy iiii shurliia Je>'iii ¢1) ii¥iiiiluiiii rfpiii. iivlqht)()Ilf hi)c)d. tollow)d HIGHiIGHTS FROM 2022 W0h1p.. 11.1 Mid-week- Teachln8'. Included.. HongKongers Minlstry.. H05ted a UKHK Welcoiiie cotirse lor Iiboul JO Iiiilvoil IIKvr%. 01) 16 Oclober, I youtli aiid 8 iidiills woro lJill)Il i('(I Team: o New operations leam IAriiialLlsal, arid tiow l<iy ArfbS(11141t(I l)Il'. (Sam) contributed lo devplopinB <7 51roi)d of l(liini. a Hong KonÉ Adminislrotoi Islilrlevl The Hon8 Kongers workod liard in devplop a IL&am lor ihiilr ILIIFI(4 (.IiiIRfi*Rdll(Jri each other and tun underpin a determlnation lo loll()w CJQ(I diiil I Ill, and couraEe A wel¢ominE and busy buildlnB: Continued our commitment lo be open as mucli as wp ¢an1115ll4illy M(111 I Il dn(l rtlli'i riAIV ')rtl rtriil iiiiil IJliJVl¢l a warm welcorne lo anyone coming In. In Atslumn, wilh a grant Irom 'fhe Oxford Dlocese wp lonk part Ill Ilii.. ririll()Iliil Wijriii 'JPdll ¢11 l)r¢Jlv.o We completed refurbishing I he 'lounge' ai)d 'ralnhow ¥Of)m', Lli(' f.lidiif41, W()rk f.()iJiilyii Iri I lip ( i&rrl¢lr)r l)v ill kitchen. Follnwing pigeon damage Ihe solar pane15 were rppalrcid Dii(I i)IKl4{)11 Iir(11)Ii,.d Earley Help HublEHHI/Torch EaTley HublTEHI,' EHH became part of a new greater RoadinB wl(Ir network ol liplp Iiiib., In Ill??, iinil Iiliiiiy (.(&iiiliiutril Iij ijlhy very active part in lor8inE Its gradual dovL.lopmpnl. Refresh Calé and Community14An£h.. We contt-nued lo run a weekly Well-bein calè dcArlvL.d Ironi Illi. I 111 1/1 I I I Iirf)114{ l. Wt. monthly community lunches belorp thL. Ifrsl calé ol the rnorith International Café IICAFI: FollowinE the Welcome Course, we hegan a wpokly Ite¥m-Ilniel l(.Al l(Ji Inl(Irniiiliiiiol,. wAri11iiy Ifj Iifdf Ill English in an informal fun way, Thls has remhinod popular Toddlers: A weekly ioddleT term-time group contlnues to be pupular, wlth ovor 40 Llillclrt&n (&ilt.Ii tirY)i.
WI Let the D•¢Js ct. Coniin4Jed monthly on firsl Saturdw iiiornin8. Yth.. . artivth'es: ahemate Sunday morning aiid evenings al Trinity. lo Thursday at Brookside- approx. 70 malnly unchurched youth. Fridass in Maiden Erleigh School. Ith pmvigion post-covid is a UnIveal challenge. Your4 Adults12540 ish): Began lo see sonie youn8 adults comli)8 to 11am and committing. Potential for development. A¥Yatrled 8roiize and want to work for Silver. Vork ui)derway developiryg a wildlife 8arden oil the bank IASDA endl. Mission Support.. Ve gave away £ 16.137.601IO% of our tithable income) to a variety of charities and appeals, including: Christian Aid. Water Aid and the DEC Ukrdine.. nationally - A, The Children's Society,. and locally, CIRDIC, TORCH and REinspired. MANAGEMENTILEADERSHIP Chlirch Council atid Twstees mel as qUId and worked well together. Sou8hi to focus Increasing on our mi55ion with elfective and efficlent mana8emenllleadership supporhng this rather than dominatin8 joint Church Meett"118slworship continued - model developing, Con8te8attonal teanis worked hard Need to develop su51ainable leadership given signs of growth. Safe8uardin8 mana8ed effects'vety. including many HK volunteer DBSS. Denoniinational links Inaintairied - challenge is to PTovide enough reps Jon and Othe involved in leadership ol TEHITorch and Transform Readin8. FINANCE 2022 was thallen8in8. but excltin8... Total incomè (not Including any HK income)" £177,896 72% 01 thls came from donanons- we have 8enerous people, and we need to celebrate them, even though donattons had dropth frtmn the previous year. Total expendilure14aln without any HK expenses). ÉIXI,306 67% 01 this went on parent church assessments and staflin8 Costs. OWEVER- we'd budgeted for a defitit of £24k in the year to August 2022. but ended with this only being £12.4k Idesplte some unexpèctèd expenses). Lots of uncertainties. but we believe God is leadlng us and will provide lor our need5. Let's encourage and celebrate our generous givers and go forward in faithl key verses. Isaiah 7..4 Be careful, keep calm and don't lose heart... James 1.2-3 - Consider it pure joy, my brother5, whenever you face trsals of many klnds. because you know that the testing of your faith develops perseverance. 0 2 Cor 9-.6-8 . Whoevgr sows generously will also reap generously.. God loves a cheerful giver. Malachi 3'10- 8ring the whole nthe in... Test me in this. and see it I will not open the windows of heaven and pour out so much blessing that you will not have room enough for it. Luke 6=38- Give, and 1t will be given to youl NyEAR.2O23 Continue: re-imagining on all fronts- trusting in God's th'mlng and In His wav. listenlng and obeying. keeping our vision statement central to have impact. balancing wise management and leadership with stepping out courageously in faith. pursin8 partnership with local nei8hbourhood churche5- 5eekin8 'one' church. Exploring UCC frontlines and 'whole life discipleship., o Developing integrdtton with HKers. Nurturing 'family'. Rernembering to do a few things well! NURTURING LOVE, GRACE, PEACE, FUN. www trinit 0118 9313124 iearle .or
Thi5 docunnt I44aÉ pseId Io Al Ipted by thè chiiNth Aiim lield i)i) 14 May )02.4 Si8ne R6&Pa<es Ch47ir Church Coiincil ani4 Tru.%leos
CHARITY COMMISSIO FOP ENGLAND AND WALf Trlth Chur¢h Earley 1147601 Receipts and payments accounts CC16a Forthe pertod from 01109Q1 3110Bf22 Section A Receipts and payments Unrtrstrlcted funds Restrlcted lund8 Endowmont funds Tot31 funds Last year io vA•r••l ttslh• n•aro4lt lo thè n•are¥l £ toth• £ 10 th• ngarn*t£ A1 Recel ts 141,491 361 23.171 23.300 11,9Se 153A49 361 23.171 3• JS2 156,362 4,883 32,489 15,052 Sub totslfGffjss income for AR) 1B8J22 2711 215.332 193.845 A2 A55et and Investment sales, (See table). 160 Sub totsl 180 188 322 215.332 194025 A3Pa ments PaTr1 church asse5smwts MISS giwng Repar5 knd Ubirt IrJrJwJinu builLling Insuran IrbearneS 66,102 16,136 26.183 6.103 70.638 GG,102 16,138 26,183 6,103 93,101 67.498 17,092 12,71B 4,091 $9.935 22,463 dlo pass&l1hfOJ the thurdj bank Sub total 162135 A4 Asset and Inv85tsnent ur¢hase8, l$ee table 2.664 2,664 13,016 Sub total 187828 210 291 17SISO Net olreceiptsl(paymentsJ A5 Transfers betsvoen funds A6 Cash funds last year end Cash funds th15 year end 493 8.900 105464 110505 CCXX R1 accounts ISSI 31105r2023
Section B Statement of assets and liabilities at the end of the period Unrestricted funds Restricted funds no•r•st £ EndowTnènt funds to nlartrsi £ lo noarq•tÉ 81 Cash funds Current 14,012 1,735 Deposi nI 65.758 22.QOO Total cash lunds 79.no 30.735 (wro• bc•i [ry¢EI5 8Thd p8ymwns Unrestrlcted funds Restrfcted funds EndowTnent fvnds Details to nearp¥i£ noavest É to IMTrBrost £ Fundio whlch Current value iorTral Dètails Cwl (opiiolFl Fundtowhich ssel bek)fj Dotails Cost loptlona Currgnt valts B4 Assets retsined for th8 chartty's own use Fund towhleh relatss Amourt d Whers d DotÈi1s BS Liabilities SvJned by Me or trvste teh? d all the truslees snature Prml Name Date ol rowdl 2oi2 CCXX R2 a¢cwnts ISSI 31n5ft022
TRINITY CHURCH
INDEPENDENT EXAMINER’S REPORT
Accounts for Church Financial Year September 2021 to August 2022
Summary
The church’s accounts are in good order. Scrutiny of the payments showed that all were appropriate to the activities of the church[1] . Almost all the payments are now done and recorded online, and incoming paper invoices are also recorded in the computer files.
The church’s income fell from £190K in 2020/21 to £178K in 2021/22, but this was mainly due to exceptionally high one-off donations in 2020/21.
Expansion of the church’s activities involved an increase in employment and correspondingly increased costs, resulting in a modest excess of expenditure over income. This used up some of the extra reserve accumulated during the Covid pandemic. The deficit of £12K was less than the £25K planned in the budget for 2021/22.
The final accounts are a fair view for the church’s accounting year 2021/22 (all funds). I have found no reportable matter of material significance[2] .
Recommendation
Earley Help Hub and Torch, and the Hong Kong activities if not amalgamated with Trinity, should make arrangements to have their own financial accounts and bank accounts, and to be responsible for their own payments. This need not stop Trinity accepting donations in support of these activities into its own account and passing them on, as it has done for many charity collections and fundraising events.
.
Observation
The organisation and labelling of invoice and payment files have been improved and they are now much easier to identify, pair up and examine. {No response required}
1 These include some activities of other organisations which the church has been supporting. 2 See Reference 2 for an official interpretation of this statement.
1
Examination Method
The method is described in Ref.1. In line with common practice to examine at least one aspect in more depth, an examination was made of the newly associated activities of ‘Torch’ and the Hong Kong church.
Findings
Independent Examination Requirements
The church’s trustees consider that an audit is not required for the church’s accounting year 2021/22 and that an independent examination by an unqualified person is adequate, on the grounds that the church’s gross income was less than £250,000. I confirm that the church’s gross income (turnover) of £218K[3] is in that range.
Treasurer’s Summary of Accounts
This is a fair summary for the financial year. The accounts have been prepared using payments and receipts, as is appropriate to the church’s turnover. The use of more complex accrual accounting would not alter my view on the accounts. Although the finances of the associated activities are included in the turnover stated above, the accounts clearly identify them under separate headings.
Payments
All expenditure was properly incurred in the church’s activities (including associated activities – see below) or as donations to charities. In addition, money collected directly for charities was passed on without deductions and, in many cases, supplemented from the church’s ‘Mission Giving’ fund.
The organisation and labelling of invoice and payment files has been improved and they are now much easier to identify, pair up and examine. {Observation – no response required.}
Receipts
Inspection of the income records showed that all income had been transferred to the appropriate accounts and ‘restricted’ where donors specified this. The former youth worker was re-employed as an associate pastor and the restricted ‘youth worker’ funding has been re-allocated to that role with the consent of the donors. The new role largely includes the previous youth worker role.
Most of the income from church members now comes through regular standing orders or through the new Parish Giving Scheme. Both enable the church to recover an additional 25% tax rebate on donations from standard rate taxpayers. Over the whole year, 55% of the regular donations were made through the PGS.
Receipts from room rentals and the Manse rental have fully recovered from the Covid stoppages.
Solar Panels
This was the eighth year of operation of the solar panels. All repayments of interest-free loans were completed in this year. Solar income (feed-in tariff and export sales) at £4.8K slightly exceeded the final annual repayments (£4.45K) and will in future become an effective additional income for the church. However, it should be noted that the first major expenditure (£1.8K) on maintenance was required and that £5.3K was needed for pigeon proofing[4] .
3 This figure is the turnover and differs from the church income because £40K of income is also handled by the church for the Hong Kong church activities, Torch, the Earley Help Hub and earmarked donations. 4 Prevention of pigeons nesting under the panels.
2
Mission Giving and other Charitable Donations
The long standing policy of giving 10% of the church’s ‘voluntary income’ has been maintained. The donations are entirely voluntary and do not create any legal obligations to make future donations.
Some special collections were made and passed on directly to charities, sometimes with supplements from the general Mission Giving funds.
The Effects of the SARS-Cov-2 (‘Coronavirus’) Pandemic
The finances for the previous two years were strongly affected by the pandemic although the net result was an increase in balances caused by the large reduction in activity and expenditure while the members’ donations were largely maintained. In 2021/22 the residual pandemic effects were minimal and the church’s activities have expanded relative to the pre-pandemic levels.
Manse Finances
Normal operation of the manse was restored before the start of 2021/22. The manse is managed by the Methodist church as equal partner and the costs deducted from the annual rental income are reasonable and fully documented. The Trinity half share of net income was £8.4 K and this level can reasonably be expected to continue.
Associated Activities
For many years the church has had minor associated activities, reported in previous independent examination reports under the title (Financially) Minor Activities, amounting to less than 5% of the total church finances. These activities were run by individual church members with their own mini-accounts (including some bank accounts) but reported annually to the church treasurer and occasionally donated surpluses to the church funds. Two of these minor activities, Chalfont Club and Thursday Toddlers closed in this year and transferred residual balances to the church funds. Ladies Club and Monday Toddlers remain active.
However, several new activities have been added and the scale of the associated activities is no longer financially minor. The activities at the end of 2021/22, with approximate turnovers (£K), were:
| Hong Kong Ministry and Fellowship | 30 (for a part year: May to August) |
|---|---|
| Torch | 6 |
| Earley Help Hub | 2 |
| Previous activities | 4 (including the two recently closed) |
The first three organisations are not run solely by Trinity church, although the incorporation of the Hong Kong activities with Trinity is being considered. However, the nature of Earley Help Hub and Torch is such that they will continue to be responsible to several organisations. Use of the Trinity bank account for these purpose is not sensible in the long term as Trinity payments should be under its control. Therefore it is recommended that:
Earley Help Hub and Torch, and the Hong Kong activities, if not amalgamated with Trinity, should make arrangements to have their own financial accounts and bank accounts, and to be responsible for their own payments. This need not interfere with Trinity accepting designated donations to its own account and passing them on, as it has done for many charity collections and fundraising events.
Income and Expenditure
The church’s income fell from £190K in 2020/21 to £178K in 2021/22, but this was mainly due to exceptionally high one-off donations in 2020/21. Recently, though, there have been several large ‘one-
3
off’ items in both income and expenditure, so the income and expenditure for the year 2021/22 should not be presumed accurate predictors for next year.
Expansion of the church’s activities involved an increase in employment and correspondingly increased costs, resulting in a modest excess of expenditure over income. This used up some of the extra reserve accumulated during the Covid pandemic. The deficit of £12K was less than the £25K planned in the budget for 2021/22. Although planning for a deficit is not normally to be recommended, the substantial increase in the reserves during the pandemic meant that the planned deficit was a reasonable way to promote the expansion in activities.
Financial Reserves
| Financial Reserves | ||
|---|---|---|
| The end of year position for 2021/22 is: | (£) {with last year’s figures for comparison} | |
| 31 August 2022 | 31 August 2021 | |
| Bank accounts | 110,504 | 105,463 |
| Solar project loans (owed) | (0) | (4.450) |
| Balance attributable to ‘associates’5 | (19,354) | N/A |
| ----------- | ----------- | |
| Net balance attributable to Trinity | 91,150 | 101,013 |
The Trinity net balance was 48% of the annual expenditure (£190K). This is reduced from the 57% on 31 August 2021. The working reserve is the same, now that the fixed term solar loans have been repaid The working reserve is still well above the recommended minimum of 25% and very close to the recommended ‘norm’ of 50% which is usually regarded as fully sufficient for all reasonable contingencies. Given that the pandemic related uncertainties have reduced in the last year, this level of reserve is very satisfactory.
Matters of Material Significance Reportable to UK Charity Regulators
In the course of my independent examination I have found no matter of material significance reportable to UK charity regulators. {See Reference 2 Section 5 for the relevant criteria}.
References
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1 Trinity Church, Independent Examination of Accounts, FY September 2021 to August 2022. Examination Method. [Nigel Holloway, December 2021.]
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2 Independent Examination of Charity Accounts: Directions and Guidance for Examiners. Charity Commission document CC32 (as amended).
INDEPENDENT EXAMINER’S FORMAL STATEMENT
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:
-
1 proper accounting records were not kept or,
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2 the accounts do not accord with those records.
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.
5 Hong Kong Ministry (£10.005), Hong Kong Fellowship (£2,763), Torch (£5,081), Earley Help Hub (£1,505).
4