## **TOTNES UNITED FREE CHURCH**
**FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
1
## **TOTNES UNITED FREE CHURCH**
## **FINANCIAL STATEMENTS**
## **for the year ended 31 December 2020**
|Legal and administrative information|3|
|---|---|
|Trustees’ / Directors’ report|4 to 7|
|Independent Examiner’s report|8|
|Statement of fnancial activities|9|
|Balance sheet|10|
|Notes to the fnancial statements|11 to 14|
2
## **TOTNES UNITED FREE CHURCH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Charity No:** 1147962
David Eaton (Chair) Ade Gascoyne Peter Gray (Treasurer) Rebecca Sadler John Phipps Rosemary Temple
**Trustees who served in the year:**
**Minister who served in year:** Ade Gasgoyne
**Independent Examiner:**
A P Jopson Tony Jopson & Co Ltd Chartered Accountants 246 Peverell Park Road Plymouth PL3 4QG Lloyds Bank plc PO Box 250 Delf House Southway Skelmersdale WN8 6WT
## **Bankers:**
3
## **TOTNES UNITED FREE CHURCH**
## **TRUSTEES’ REPORT**
## **For the year ended 31 December 2020**
The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 December 2020. Legal and administrative information set out on page 3 forms part of this report.
## **Structure, Governance and Management**
## _**Governing Document**_
Totnes United Free Church is an independent church. It is governed by a constitution and is a registered charity in its own right reference 1147962.
## _**Appointment of trustees**_
The trustees serving during the year and since the year end up to the date these accounts are signed off are listed on page 3.
Trustees are nominated from within the membership and elected at the Annual General Meeting. Usually 2 or 3 Trustees (depending on the size of the team) stand down each year. All members are circulated with invitations to nominate trustees prior to the AGM advising them of the retiring trustees and requesting nominations for the AGM.
Trustees must be members of the church baptised by full immersion.
## _**Trustee induction and training**_
New Trustees are provided with an orientation pack to brief them on their legal obligations under charity law, the content of the church rules and decision making processes, and recent financial performance of the church and other important documents which are contained in an induction pack. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
## _**Organisation**_
The Board of Trustees, currently called the Leadership Team (including a Secretary and a Treasurer), administers the church. The board normally meets monthly. A minister is appointed by the church to manage its day to day operations.
## **Objectives and activities**
The church exists to proclaim the gospel of Jesus Christ and to make Him known.
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Our objectives are achieved in the following ways:
## **Staf**
At the year end the church employed a full time minister, a part time operations manager and a part time youth worker..
## **Regular activities**
With the onset of the COVID-19 pandemic in March the regular activity of the church has been significantly affected. The style of corporate worship for the church is such that the whole church has not met together en masse for the majority of the year.
From difficult beginnings a Sunday worship and teaching time has been established via Zoom which is attended by the majority of the congregation.
The church has also established the ability to put on Drive In Church when regulations allow. This was run during October and November.
Mid week Mission Community groups have continued to meet on line via Zoom which has become vital for many.
The majority of youth work and children’s work has been on line with a few socially distanced meetings when regulations made this possible.
## _**Training**_
Training has been severely curtailed although there was significant time and effort put into Safeguarding training early in the year.
## **Developments over the last year**
The key developments during 2020 can be summarised as follows:
- Membership at 31 December 2020 totalled 83
## **Financial Review**
Totnes United Free Church has an operational deficit in 2020 of £7,267 (2019 £6,595). The overall net asset position of the church stands at £53,908 at 31.12.20 (2019 £61,175).
5
## **Reserves Policy**
The Trustees believe that the church should hold financial reserves (the Emergency Operating Reserve – EOR) to protect against fluctuations in funding and to have the ability to maintain its activities in the short term if funding is uncertain.
The trustees believe that the minimum level of the EOR should be the equivalent of 2 months of annual operating costs calculated and reviewed annually and built up to the desired level in stages in accordance with the church’s overall financial position and its need to maintain its activities.
## **Risk Review**
The Trustees identify and discuss risks on a monthly basis at team meetings.
One key risk identified is the church’s dependency on income sources in a recessionary economic climate and it is acknowledged that close monitoring needs to be maintained on finances and ways of improving income streams explored.
The Trustees are developing a comprehensive risk management strategy, which will comprise:
- an annual review of the risks the church may face;
- ● the establishment of systems and procedures to mitigate those risks identified and
- the implementation of procedures designed to minimise any potential
- impact on the church should those risks materialise.
## **Related Parties**
Trustees and management of the charity are required to disclose connections with any organisation applying to the church for funding or being considered as a supplier. In such circumstances, the relevant individual takes no part in the related decision making process.
## **Trustees’ responsibilities in relation to the financial statements**
Charity law requires the trustees to prepare financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice that give a true and fair view of the state of the affairs of the church at the end of the financial year and of its surplus or deficit for the financial year. In doing so the trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- ● Make judgements and estimates that are reasonable and prudent; and
● Prepare the financial statements on the going concern basis unless it is inappropriate to presume the church will continue its operations.
6
The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the church and enables them to ensure that the financial statements comply with the Statement of Recommended Practice (SORP) issued by the Charity Commission. The trustees are responsible for safeguarding the assets of the church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
There is no relevant audit information of which the church’s independent examiner is unaware.
We as trustees have taken all steps that we ought to have taken to make ourselves aware of any relevant audit information and to establish that the independent examiner is aware of that information.
7
## **Independent Examiner**
A resolution was proposed at the Annual General Meeting that Mr A P Jopson of Tony Jopson & Co Ltd, Chartered Accountant be appointed as independent examiner for the ensuing year.
Approved by the trustees on
and signed on its behalf by:
Trustee
8
## **INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS OF TOTNES UNITED FREE CHURCH**
I report on the accounts of Totnes United Free Church for the year ended 31 December 2020, which are set out on pages 9 to 14 below.
The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (“the Charities Act”) and that an independent examination is needed.
It is my responsibility to:
● examine the accounts under section 145 of the Charities Act,
● to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
● to state whether particular matters have come to my attention.
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
In connection with my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in, any material respect, the requirements:
- to keep accounting records in accordance with section 130
- of the Charities Act; and
- to prepare accounts which accord with the accounting
- records and comply with the accounting requirements of the Charities Act
have not been met; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
.......................................................................... .......................................
.............. A P Jopson Date
9
Member of Association of Institute of Chartered Accountants in England & Wales
Tony Jopson & Co, 246 Peverell Park Road, Plymouth, PL3 4QG
10
## **TOTNES UNITED FREE CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account)**
## **for the year ended 31 December 2020**
||**UnrestrictedRestricted**|**UnrestrictedRestricted**|**UnrestrictedRestricted**|**UnrestrictedRestricted**|**Total**|**Total**||
|---|---|---|---|---|---|---|---|
|**Notes**|**Funds Funds**|**20202019**||||||
||**£**||**£**||**£**|**£**||
|**Incoming resources**||||||||
|**Incoming resources from generated funds**||||||||
|Voluntary Income|2||65,658||800|66,458|72,280|
|Investment income|3||562||0|562|391|
|**Incoming resources from**|**charitable activities**|||||||
|Other activities|3||19,495||2,000|21,495|30,632|
|**Total incoming resources**|||**85,715**||**2,800**|**88,515**|**103,303**|
|**Resources expended**||||||||
|Charitable activities|4||95,042||2,740|95,782|109,898|
|**Total resources expended**|||**95,042**||**2,740**|**95,782**|**109,898**|
|**Net incoming resources**||**(7,327) 60**||**(7,267)**||**(6,595)**||
|Prior year adjustment (*)|||0||0|0|3,837|
|Total funds at 1 January|||61,175||0|61,175|63,933|
|**Total funds at 31 December**|||**53,848**||**60**|**53,908**|**61,175**|
*The prior year adjustment is due to some creditors appearing in the 31.12.18 accounts that were not due
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## **TOTNES UNITED FREE CHURCH**
## **BALANCE SHEET**
## **at 31 December**
|**2020**
**Notes**
**FIXED ASSETS**
Tangible assets
**CURRENT ASSETS**
Debtors
Cash at bank and in hand
**CREDITORS:**amounts
falling due within one year
Creditors
Accruals
**Net current assets**
**NET ASSETS**
Unrestricted funds
**TOTAL FUNDS**|**£**
8
9
30,041
10
(552)
(200)
(850)||**£**
**£**
**24,717**
6,263
23,778
49,485
(650)
(200)
**29,191**
**53,908**
══════
═
53,908
──────
─
**53,908**
══════
═|**2019**
**£**
**12,442**
8,289
41,196
(752)
**48,733**
**61,175**
═════
61,175
─────
**61,175**
═════|
|---|---|---|---|---|
||||||
These accounts have been prepared in accordance with the financial provisions applicable to companies subject to the small companies regime and in accordance with FRS102 SORP.
The financial statements on pages 9 to 14 were approved by the Trustees on and signed on their behalf by:-
P Bray Treasurer
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## **The notes on pages 11 to 14 form part of the financial statements**
## **TOTNES UNITED FREE CHURCH**
## **NOTES ON FINANCIAL STATEMENTS**
## **For the year ended 31 December 2020** 1. **Accounting policies**
## **Basis of accounting**
The financial statements have been prepared under the historical cost convention and with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.
The accounts have been prepared in accordance with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102)
## **Going concern**
The accounts have been prepared on the going concern basis.
## **Income recognition from grants**
Income from grants is included in incoming resources when the church is legally entitled to the income and the amount can be quantified with reasonable accuracy. If the grants are received as an “up front” payment for which the conditions of payments have yet to be met then this income is deferred until the conditions are met.
## **Fund accounting**
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is shown in the notes to the financial statements.
## **Tangible fixed assets**
Depreciation of fixed assets is calculated to write off their cost on a straight line basis at the following percentage rates:Equipment 20% straight line
## **Basis of allocation of expenditure**
Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.
**2. Voluntary income Unrestricted Restricted Total Total 2020 2020 2020 2019 £ £ £ £** Committed giving / offerings 65,658 800 66,458 72,280 ────── ────── ────── ────── **65,658 800 66,458 72,280** ══════ ══════ ══════ ══════
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## **TOTNES UNITED FREE CHURCH**
## **NOTES ON FINANCIAL STATEMENTS**
**For the year ended 31 December 2020**
|**3.**
**Charitable Activities - Other activities income**|**3.**
**Charitable Activities - Other activities income**||||
|---|---|---|---|---|
|**Unrestricted**|**Restricted**|**Total**|**Total**||
|**2020**|**2020**|**2020**|**2019**||
|**£**|**£**|**£**|**£**||
|Building room hire|630|0|630|1,850|
|Grants|0|2,000|2,000|0|
|Lee Abbey|0|0|0|2,825|
|Gift Aid Recovered|16,686|0|16,686|19,252|
|Totnes Christian / Brite Festival|260|0|260|6,070|
|Other income|1,919|0|1,919|635|
|──────|──────|──────|──────||
|**19,495**|**2,000**|**21,495**|**30,632**||
|══════|══════|══════|══════||
|**Investment & bank interest**|**562 0**|**562391**|||
|──────|──────|──────|──────||
|**TOTAL INCOME**|**85,715**|**2,800**|**88,515**|**103,303**|
|══════|══════|══════|══════||
|**4.**
**Charitable activities – resources expended**|||||
|**Unrestricted**|**Restricted**|**Total**|**Total**||
|**2020**|**2020**|**2020**|**2019**||
|**£**|**£**|**£**|**£**||
|Staf costs|52,723|0|52,723|39,303|
|Totnes / Brite Christian Festival|0|0|0|8,083|
|Outreach, training, fund raising|3,633|0|3,633|7,121|
|Premises hire costs during lockdown|1,455|0|1,455|0|
|Lee Abbey|0|0|0|12,601|
|Designated giving - mission|15,366|740|16,106|17,071|
|Motor expenses|893|0|893|0|
|Establishment costs`|3,820|2,000|5,840|10,528|
|Repairs & maintenance|2,856|0|2,856|2,478|
|Manse costs|4,410|0|4,410|5,406|
|Cofee bar expenses|222|0|222|778|
|Printing postage & stationery|305|0|305|295|
|Subscriptions|877|0|877|3,073|
|Legal & professional|1,160|0|1,160|1,446|
|Telephone & website|2,082|0|2,082|0|
|Resources|444|0|444|0|
|Bank charges|170|0|170|(126)|
|Depreciation|2,826|0|2,826|1,463|
|Accounts & book keeping|0|0|0|178|
|Independent Examiner’s fee|200|0|200|200|
|──────|──────|──────|──────||
|**TOTAL RESOURCES EXPENDED**|**93,042**|**2,740**|**95,782**|**109,898**|
|══════|══════|══════|══════||
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## **TOTNES UNITED FREE CHURCH**
## **NOTES ON FINANCIAL STATEMENTS**
## **For the year ended 31 December 2020**
## **6. Trustees and related parties**
The trustees received remuneration during the year totalling £19,827 (2019: £19,827).
There were no other transactions with related parties, which are required to be disclosed in these accounts.
## **7. Staf costs**
|**7.**
**Staf costs**||||
|---|---|---|---|
||**2020**|**2019**||
||**£**|**£**||
|Wages & salaries||52,723|39,303|
||──────|──────||
||**52,723**|**39,303**||
||══════|══════||
No employee emoluments amounted to over £60,000 in the year (2019: nil).
The average number of employees, calculated on a full time equivalent basis, analysed by function was:-
||**2020**|**2019**||
|---|---|---|---|
||**No.**|**No.**||
|Furtherance of objectives, including support||2.0|1.5|
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## **TOTNES UNITED FREE CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **For the year ended 31 December 2020**
## **8. Tangible fixed assets**
|**VehiclesEquipment**
**TOTAL**
**£**
**£**
**£**
**Cost**
At 1 January 2020
0
33,736
Additions
4,794
10,307
Disposal
0
0
At 31 December 2020
4,794
44,043
**Depreciation**
At 1 January 2020
0
21,294
Charge for year
0
2,826
Disposal
0
0
At 31 December 2020
0
24,120
**Net book amount**
As at 31 December 2020
4,794
19,923
As at 31 December 2019
0
12,442
**9.**
**Debtors** **& Prepayments**
**2020**
**£**
**£**
Gift Aid Debtor
6,263
Other debtors
0
6,263
8,289
**10. Creditors:** **amounts falling due within one year**
**£**
**£**
Trade creditors
22
HMRC
385
Pension
243
Accruals & deferred income
200
**Total creditors & provisions**
**850**|33,736
15,101
0
48,837
21,294
2,826
0
24,120
24,717
12,442
**2019**
8,139
150
**2020**
**2019**
0
552
0
200
**752**|
|---|---|
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