**Charity number: 1148572 Company number: 07573755** ## **The Faithful Neighbourhoods Centre** **Trustees' report and financial statements** **for the year ended 31 March 2021** ## **The Faithful Neighbourhoods Centre** ## **Contents** ||**Page**| |---|---| |Legal and administrative information|**1**| |Trustees report|**2 - 5**| |Independent examiners' report|**6**| |Statement of financial activities|**7**| |Balance sheet|**8**| |Notes to the financial statements|**9 - 12**| ## **The Faithful Neighbourhoods Centre** ## **Legal and administrative information** ## **Charity number** 1148572 **Company registration number** 07573755 ## **Trustees** J Appleton G Bowman Rev D Gould Rev C Marsh Stood down as Trustee and Board Member on 16/12/19 Rev M Sermon Canon Dr A Smith ## **The Faithful Neighbourhoods Centre** ## **Report of the trustees** ## **for the year ended 31 March 2021** The trustees present their report and the financial statements for the year ended 31 March 2021. The trustees who served during the year and up to the date of this report are set out on page 1. ## **Structure, governance and management** Reference and administrative details Registered charity name The Faithful Neighbourhoods Centre Charity registration number 1148572 Company registration number 07573755 Principal office and registered The Church of England office 1 Colmore Row Birmingham B3 2BJ ## **Objectives and activities** The principal objectives of the charity are: to promote the advancement of religion. to develop the capacity and skills of socially and economically disadvantaged communities to help them meet their needs such that they are better able to participate more fully in society. the prevention of or relief from poverty. the advancement of education in relation to faith and interfaith matters, all for the public benefit. to promote Equality and Diversity by raising awareness in Equality and Diversity, promoting activities to foster understanding between people from diverse backgrounds and cultivating a sentiment of Equality and Diversity. ## Activities We achieve our objectives through building relationships for stronger communities by: providing a space where people of different faiths (and cultures) can meet one another and work together. resourcing Christians living in a multi-faith society and supporting people as they discover ways of working together to improve and strengthen their local areas. Public Benefit The directors confirm that in planning and undertaking their activities they have at all times had regard to the guidance issued by the Charity Commission on the provision of public benefit. At the end of 2017 the trustees decided that using the name The Faithful Neighbourhoods Centre gave the wrong impression of our work as we no longer run, or are based in, a static centre. We recognised that the moniker FNC was widely known and appreciated so were keen to carry on using those letters. We also recognised that the cost of changing the name legally was prohibitive for such a small charity so we looked to see how we could keep the name but change the way it's used in communications. It was agreed that for communications purposes we would mainly just use 'FNC' as a name for the charity but if asked what this stood for use 'Faiths, Neighbours, Changemakers'. This is not a formal change of name but a change in the way we communicate who we are and what we do. A new logo was commissioned and FNC has started to be used in our communications. ## **The Faithful Neighbourhoods Centre** ## **Report of the trustees for the year ended 31 March 2021** ## **Achievements and performance** The year 2019/20 was a quiet one for the FNC but was a year when substantive plans were put in place for future work, although many of these were significantly altered at the very end of the year as the national lockdown for the Covid-19 pandemic came into effect on the 23rd March. The planned Faithful Friends trip to Israel / Palestine was cancelled due to the travel restrictions, however a new on-line series of the Birmingham Conversations was initiated. It was designed, promoted and commenced by the end of March setting up a significant amount of on-line work for the coming year. We continued to support the development of a Peace and Reconciliation Centre at Holy Trinity Smethwick taking part in consultations with architects and other local stakeholders. Scoping work was done for some collaboration with local partners to develop cohesion work particularly responding to race hate crimes.The board would like to thank Jack Smith for helping with the finances and to Debbie Browning for all her admin support for the work of FNC ## Faithful Friends: On Tour The big event of 2019/20 was our planned trip to Israel. This included a number of good planning meetings including conversations with a local Rabbi. This project was run with Women First and we had great support from Rev Jessica Foster and we were all ready with tickets bought and accommodation arranged so it was huge disappointment when Israel was one of the first countries to lock down. However, we do now have a wider group ready to go when we can and are hoping to make the trip in 2021 if possible. Our thanks to Andrew for juggling the flights and refunds and to those who supported us financially to make the trip possible including private donors. We continue to maintain our links with Coventry Cathedral and the Together for Hope team and look forward to growing the profile of that with Coventry Cathedral and the chaplaincy team from St Barts in London. We've continued our links with local schools and the good name of Faithful Friends continues to have resonance with the political and civic leadership of Sandwell borough.The Faithful Friends Income is restricted income which will be used for this event when it is able to take place,or will be refunded if the trip is unable to proceed. ## Presence and Engagement The FNC along with the Church of England Birmingham marked the 550th anniversary of the birth of Guru Nanak in November 2019 by producing commemorative plaques that were given to each gurdwara in Birmingham. This was launched at Holy Trinity Smethwick with Bishop David Urquhart and the unveiling of a commemorative plaque and tree planting with members of the Guru Nanak Gurdwara. This current year has, inevitably been dominated by the COVID-19 pandemic and the limitations and restrictions that has placed on the work of FNC along with the rest of the country. The Faithful Friends and Women First trip to Israel and Palestine due to take place at the end of March 2021 had to be cancelled and after much work virtually all the money paid for flights was refunded enabling us to plan to re-run the trip when the situation allows. Despite the restrictions on meeting and movement there was actually an increase in FNC activity during the year. The Birmingham Conversations moved on-line and ran a weekly series of conversations from the end of March-July 2020 and then two other shorter series of conversations in autumn and winter. These used the video conferencing platform Zoom and were well attended with higher numbers than when events were held face-to-face. There was a lot of learning about how to lead dialogue on-line which led to an academic journal being published in the Journal of Dialogue studies. Videos from the dialogues and a link to the journal article are available on-line. ## SAVI FNC was instrumental in the creation of a consortium of organisations that was created in Autumn 2021 in response to an initiative from West Midlands Violence Reduction Unit (WMVRU) to create a Smethwick based pilot project to address and prevent violence. When approached by WMVRU, FNC led work to create a proposal involving nine consortium partners. The proposal was successful and the Smethwick Anti- Violence initiative (SAVI) was formed to deliver a series of projects between January and March 2021. Shortly afterwards, a further WMVRU opportunity to deliver work to support the Smethwick Community through the COVID-19 pandemic was taken up and was also successful. FNC took up the programme management, coordination and monitoring roles along with some capacity ## **The Faithful Neighbourhoods Centre** ## **Report of the trustees for the year ended 31 March 2021** ## **Financial review** Risk Management The systems of internal control are designed to provide reasonable but not absolute assurance against material misstatement or loss. Where necessary further systems of and procedures will be introduced as and when new risks are identified. Risk will be re-examined on at least an annual basis. During 2020/21, insurance premiums were increased to take account of increased risks due to new project work undertaken. ## Reserves It is the directors' intention that the Project should hold reserves to allow it to maintain its activities for nine months. At present the reserves exceed this level but since the majority of income received is now for specific projects the accumulated funds are required to fund normal administrative and support expenditure. Consequently, the directors do not intend taking action to reduce the reserves to the above level. ## **Statement of trustees' responsibilities** 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). Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 1993 and the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other ## **The Faithful Neighbourhoods Centre** **Report of the trustees for the year ended 31 March 2021** On behalf of the board ## **Chair** ## **The Faithful Neighbourhoods Centre** ## **Independent examiner's report to the trustees on the unaudited financial statements of The Faithful Neighbourhoods Centre.** I report on the accounts of The Faithful Neighbourhoods Centre for the year ended 31 March 2021 set out on pages 2 to 12. ## **Respective responsibilities of trustees and independent examiner** As the charity's trustees you are responsible for the preparation of the accounts, you consider that the audit requirement of section 43(2) of the Charities Act 1993 (the Act) does not apply and that an independent examination is needed. It is my responsibility to examine the accounts under section 43(3)(a) of the Act, to follow the procedures laid down in the General Directions given by the Charity Commission under section 43(7)(b) of the Act, and to state whether particular matters have come to my attention. ## **Basis of independent examiner's statement** My examination was carried out in accordance with the 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 you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. ## **Independent examiner's statement** In connection with my examination, no matter has come to my attention: (i) which gives me reasonable cause to believe that in any material respect the requirements: - to keep proper accounting records in accordance with section 41 of the Act; and - to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the Act have not been met; or - (ii) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. ........................................................... ## **Sylvanus Dzotsi- BA(Hons) FCCA** ## **Independent examiner** **Yevs House 130 Capehill Smethwick** **B66 4PH** ## **The Faithful Neighbourhoods Centre** ## **Statement of financial activities** ## **For the year ended 31 March 2021** |**Unrestricted**
**Restricted**
**funds**
**funds**
**Notes**
**£**
**£**
**Incoming resources**
Incoming resources from generating funds:
Income
2
-
67,956
Activities for generating funds
3
17
-
**Total incoming resources**
17
67,956
**Resources expended**
Charitable activities
4
-
59,460
Governance costs
6
-
335
**Total resources expended**
-
59,795
Total funds brought forward
3,186
8,403
**Total funds carried forward**
3,203
16,564|**2021**
**Total**
**£**
67,956
17
67,973
59,460
335
59,795
11,589
19,767|**2020**
**Total**
**£**
13,784
-| |---|---|---| |||13,784| |||-
5,685| |||5,685| |||3,490| |||11,589| The statement of financial activities includes all gains and losses in the year and therefore a separate statement of total recognised gains and losses has not been prepared. All of the above amounts relate to continuing activities. **The notes on pages 9 to 12 form an integral part of these financial statements.** ## **The Faithful Neighbourhoods Centre** ## **Balance sheet** ## **as at 31 March 2021** |**Notes**
**Current assets**
Cash at bank and in hand
**Creditors: amounts falling**
**due within one year**
8
**Net current assets**
**Net assets**
**Funds**
Restricted income funds
Unrestricted income funds
**Total funds**|**2021**
**£**
**£**
20,577
20,577
)
(810
19,767
19,767
16,564
3,203
19,767|**2020**
**£**
**£**
12,399
12,399
)
(810
11,589
11,589
8,403
3,186
11,589|**2020**
**£**
**£**
12,399
12,399
)
(810
11,589
11,589
8,403
3,186
11,589| |---|---|---|---| ||||11,589| ||||8,403
3,186| ||||11,589| The financial statements were approved by the trustees on and signed on its behalf by ## **J Appleton Trustee** **The notes on pages 9 to 12 form an integral part of these financial statements.** ## **The Faithful Neighbourhoods Centre** ## **Notes to financial statements for the year ended 31 March 2021** ## **1. Accounting policies** The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year. ## **1.1. Basis of accounting** The financial statements are prepared under the historical cost convention and in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities' issued in March 2005 (SORP 2005) and the Charities Act 1993. ## **1.2. Cashflow** The charity has taken advantage of the exemption in FRS1 from the requirement to produce a cashflow statement because it is a small charity. ## **1.3. Incoming resources** All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included. Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold. Grants, including grants for the purchase of fixed assets, are recognised in full in the statement of financial activities in the year in which they are receivable. Income from the charity shop is included in the year in which it is receivable. ## **1.4. Resources expended** Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity's shop. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management. ## **1.5. Research and development** Research expenditure is written off to the profit and loss account in the year in which it is incurred. ## **The Faithful Neighbourhoods Centre** ## **Notes to financial statements for the year ended 31 March 2021** |**2.**
**Income**
Faithful Friends Income
Simply Eat Income
West Midland Voilence Reduction Unit(WMVRU)
National Lottery
**3.**
**Activities for generating funds**
book sales
**4.**
**Costs of charitable activities - by fund type**
Charitable Activities
**5.**
**Costs of charitable activities - by activity**
**Activities**
**undertaken**
**directly**
**£**
Charitable Activities
6,403
6,403|**Restricted**
**funds**
**£**
6,014
-
53,750
8,192
67,956
**Unrestricted**
**funds**
**£**
17
17
**Restricted**
**funds**
**£**
59,460
59,460
**Grant**
**funding**
**Support**
**activities**
**costs**
**£**
**£**
52,532
525
52,532
525|**2021**
**Total**
**£**
6,014
-
53,750
8,192
67,956
**2021**
**Total**
**£**
17
17
**2021**
**Total**
**£**
59,460
59,460
**2021**
**Total**
**£**
59,460
59,460|**2020**
**Total**
**£**
13,416
368
-
-| |---|---|---|---| ||||13,784| ||||**2020**
**Total**
**£**
-| ||||-| ||||**2020**
**Total**
**£**
-| ||||-| ||||**2020**
**Total**
**£**
-| ||||-| ## **The Faithful Neighbourhoods Centre** ## **Notes to financial statements for the year ended 31 March 2021** ## **6. Governance costs** |**Restricted**
**funds**
**£**
Establishment - Insurance
-
Other motor & travel expenses
-
Professional - Accountancy fees
300
Office expenses - Communication & IT
-
Office expenses - Other
-
Other governance costs
35
335|**2021**
**Total**
**£**
-
-
300
-
)
(1
35
334|**2020**
**Total**
**£**
281
4,891
300
178
-
35
5,685| |---|---|---| ## **7. Analysis of support costs** |||||||**2021**|**2021**|||**2020**|**2020**| |---|---|---|---|---|---|---|---|---|---|---|---| |||||||**Total**||||**Total**|| ||||**£**||||**£**||||**£**| ||Insurance||347|||347|||||-| ||Communication and information technology||178|||178|||||-| ||||525|||525|||||-| |**8.**|**Creditors: amounts falling due**||||||||||| ||**within one year**|||||**2021**||||**2020**|| |||||||**£**||||**£**|| ||Trade creditors|||||510||||510|| ||Accruals and deferred income|||||300||||300|| |||||||810||||810|| |**9.**|**Unrestricted funds**||**At**|||||||**At**|| |||**1 April**||**Incoming**||||**31**||**March**|| ||||**2020**|**resources**||||||**2021**|| ||||**£**|||**£**||||**£**|| ||Description for Unrestricted Fund 1||3,186|||17||||3,203|| ## **The Faithful Neighbourhoods Centre** ## **Notes to financial statements for the year ended 31 March 2021** |**10.**|**Restricted funds**|**At**||||**At**| |---|---|---|---|---|---|---| |||**1 April**|**Incoming**|**Outgoing**||**31 March**| |||**2020**|**resources**|**resources**||**2021**| |||**£**|**£**|**£**||**£**| ||Description for Restricted Fund|8,403|67,956|(59,795|)|16,564| ## **The Faithful Neighbourhoods Centre** **The following pages do not form part of the statutory accounts.** ## **The Faithful Neighbourhoods Centre** ## **Detailed statement of financial activities** ## **For the year ended 31 March 2021** |||**2021**|**2021**||**2020**|**2020**| |---|---|---|---|---|---|---| ||**£**||**£**|**£**||**£**| |**Incoming resources**||||||| |**Incoming resources from generating funds:**||||||| |_Income_||||||| |Faithful Friends Income|||6,014|||13,416| |Simply Eat Income|||-|||368| |West Midland Voilence Reduction Unit(WMVRU)|||53,750|||-| |National Lottery|||8,192|||-| ||||67,956|||13,784| |_Activities for generating funds_||||||| |book sales|||17|||-| ||||17|||-| |**Total incoming resources from generating funds**|||67,973|||13,784| |**Total incoming resources**|||67,973|||13,784| |**Resources expended**||||||| |**Costs of generating funds:**||||||| |**Fundraising trading:**||||||| |**cost of goods sold and other costs**||||||| ## **The Faithful Neighbourhoods Centre** ## **Detailed statement of financial activities** ## **For the year ended 31 March 2021** |**Charitable activities**
**Activity 6**
_Activities undertaken directly_
Repayment of Charitable Grant
_Grant funding activities_
Faithful Friends On Tour
Covid-19 relief
Developing Community Cohesion
_Support costs_
Insurance
Communications and IT
**Activity 6 total expenditure**
**Total charitable activity expenditure**
**Governance costs**
_Activities undertaken directly_
Establishment - Insurance
Other motor & travel expenses
Professional - Accountancy fees
Office expenses - Communication & IT
Office expenses - Other
Other governance costs
**Total governance costs**
**Net incoming/(outgoing) resources for the year**|**2021**
**£**
6,403
6,403
5,259
9,946
37,327
52,532
347
178
525
59,460
59,460
-
-
300
-
)
(1
35
334
334
8,179|**2020**
**£**
-
-
-
-
-
-
-
-
-
-
-
281
4,891
300
178
-
35
5,685
5,685
8,099|**2020**
**£**
-
-
-
-
-
-
-
-
-
-
-
281
4,891
300
178
-
35
5,685
5,685
8,099| |---|---|---|---| ||||-| ||||-| ||||5,685| ||||5,685| ||||8,099|