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← St Michael's Church Centre Limited

2023-12-31-accounts

REGISTERED COMPANY NUMBER: 08242432 (England and Wales) REGISTERED CHARITY NUMBER: 1149601

Report of the Trustees and

Audited Financial Statements

for the Year Ended 31 December 2023

for

ST MICHAEL'S CHURCH CENTRE LIMITED

ST MICHAEL'S CHURCH CENTRE LIMITED

Contents of the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2023

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 29

ST MICHAEL'S CHURCH CENTRE LIMITED (REGISTERED NUMBER: 08242432)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees present their report with the financial statements of the charity for the year ended 31 December 2023. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

St Michael's Church Centre Limited (SMCC) was established in October 2012, with the main charitable purpose being "to advance the Christian religion". In 2013, the SMCC became "Trustee for all purposes" (ie both Custodian and Managing Trustees) for all the assets of the Old School Rooms Trust.

The overall vision of SMCC is to provide quality facilities, primarily for the congregation of St Michael's Church and associated church groups as well as the wider community and corporate, regional and national organisations. The Trustees believe these objectives benefit the communities which they wish to serve.

Significant activities

The first occupational stage of the new buildings was completed in April 2015, and from that time, the Church Centre has been the venue for the 10.30am family church services and the 6.30pm informal evening services. The Church Centre has also been increasingly used to host community events as well as an expanding variety of Christian events. Practical examples of the expanding activities include hosting the Bristol-wide Bible-Study-Fellowship on a weekly basis, monthly Messy Church, and a variety of Bristol choirs, as well as expanding youth-work within the premises. Other community events include Robot Wars, Golden Oldies, over-65's lunches and Summer Club.

The Trustees confirm that they have complied with their duty under the Charities Act 2011 to have due regard to the Charity Commission's guidance on Public Benefit when planning and reviewing the objectives and activities of SMCC.

Grantmaking

As part of the Heart of the Community Project, it is the intention that 10% of the internally generated funds will be available for mission work both in the UK and overseas as the project progresses. The concept of "mission" has been extended to include the support of churches in the region who are struggling to fulfil their missionary and community outreach ambitions. Tithe funds have been set aside for charitable grants to be made during 2023.

Volunteers

Much of what happens at the Church Centre is driven by volunteers. It is not possible to quantify the contribution of volunteers except to say that the charity would not be able to carry out many of its activities without them.

Page 1

ST MICHAEL'S CHURCH CENTRE LIMITED (REGISTERED NUMBER: 08242432)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2023

ACHIEVEMENT AND PERFORMANCE

Charitable activities - review of the year

The main user of SMCC is St Michael's Church congregation and its staff and administration. When rooms are available, regular church bookings include a Men's Group, Life Groups, Messy Church, Beehive, Link Club, and Saturday Breakfast. Space is provided for youth work in the form of Sunday Club, including Teen-Central, FXG and Word and other youth-work events. There is a quarterly over 65s lunch and the Church Centre is increasingly being used regionally and nationally to host events.

The facilities are making an impact locally and regionally and there is a steady and noticeable increase in footfall. Users of the facilities include individuals, charities and larger organisations.

SMCC provides the facilities for the Coffee Shop, operated by St Michaels Church, which is open 6 days a week. The facility is used outside opening hours for marriage/wedding preparation, parenting courses, ALPHA courses, community library and student groups. The Church Centre provides space for a number of groups including several uniformed groups. Residual space is also used by a number of community groups including Music with Mummy, Men's Group, Stokes Volunteer Bureau, Keep Fit (dance class) and Link Club (senior citizens). The Church Centre is also used for commercial purposes, wedding receptions and birthday parties. The Trustees of SMCC are delighted with the increase in usage for Christian and community events that has been seen during 2023.

FINANCIAL REVIEW

Principal funding sources

The primary source of incoming funds is the sacrificial donations (both regular and one-off) from individual members of St Michael's Church congregation. The next most significant source of income is the income generated by the hiring of the facilities to a range of users from the general public, and then revenue generated by the hiring out of the facilities to St Michael's Church PCC for use by the church. The constructional development of the Church Centre is substantially complete, and the main focus of donational income in 2024 and 2025 - 2027 will be the repayment of the initial loans taken out on the project, of which £451,799 remains outstanding at the year-end (2022 - £680,680). The operational surpluses allow the continuing upgrading of the centre facilities as well as the day-to-day operation of the facility by an increasing range of non-church users.

During the period, there was significant funding of SMCC from donations and related gift aid totalling £298,783 (2022 - £362,398). During the year a contribution of £139,047 (2022 - £118,353) was made by Stoke Gifford PCC to SMCC as payment for the church use of the buildings. This has enabled the Trustees to progress the development of SMCC facilities and provide additional space for the whole range of church and community activities.

Reserves policy

At the year end, there were total reserves of £5,749,435 (2022 - £5,542,412) of which £1,188 (2022 - £1,188) was held in restricted funds and £5,620,794 (2022 - £5,396,142) in designated funds.

It is the intention that general reserves will be at least 3 months' annual operating expenditure of running the Church Centre, which currently equates to £95,446 based on 2023 operating expenditure.

At the year end, free reserves were £101,633 (2022 - £117,665). Free reserves are measured as the General Fund balance less fixed assets held within the General Fund.

A designated fund of £5,769,955 (2022 - £5,812,717) represents the net book value of the Church Centre building and can only be realised by the disposal of the fixed asset.

Funds in deficit

The Heart of the Community Fund shows a deficit of £338,689 (2022 - £445,062) as a result of loans of £451,799 (2022 - £680,680) drawn down of which £11,549 (2022 - £60,430) is secured against the property. The deficit will be eliminated as funds are raised to pay off the loans.

Page 2

ST MICHAEL'S CHURCH CENTRE LIMITED (REGISTERED NUMBER: 08242432)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL REVIEW

GOING CONCERN

The Trustees consider that the charity will continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved for the following reasons:

The Trustees therefore consider it appropriate to adopt the going concern basis of preparation of the accounts, as detailed in note 1 to the financial statements.

FUTURE PLANS

The intention is that SMCC will continue to grow, develop and flourish in the growth of the community. It is the intention of the Trustees to continue to apply surplus funds into the on-going development of the Church Centre for the benefit of all church user-groups and the wider community.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is governed by its Memorandum and Articles of Association adopted on 5 October 2012, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

During 2013, a Scheme was set up with the Charity Commission under the Charities Act 2011 to discharge the Bristol Diocesan Board of Finance Limited as custodian trustee of the assets of the Old School Rooms Trust (OSRT) and appoint St Michael's Church Centre Limited (SMCC) as "Trustee for all purposes". The Scheme also provided for the transfer of title to the land previously held by the OSRT to SMCC as custodian trustee.

The Board of SMCC meet regularly throughout the year to review the activities of the charity.

Recruitment and appointment of new trustees

The Memorandum and Articles state that there must be at least three members at all times. Not more than three trustees may be appointed by resolution of the PCC. The PCC may remove any trustee it has appointed and may fill any vacancy arising amongst the three trustees it is entitled to appoint.

All other trustees shall be appointed by resolution of the Trustees. Trustees are elected to serve for a period of three years at a time.

Induction and training of new trustees

Trustees receive a short induction which includes review of the previous minutes, an update from an existing trustee and are required to review the publication 'The Essential Trustee' issued by the Charity Commission.

Staff remuneration

All staff who work for SMCC are also jointly employed by St Michael's Church PCC. The costs of those staff are on the payroll of St Michael's PCC but shared by both charities and are re-charged by a management charge agreed annually between the Trustees of the two charities.

All St Michael's Church PCC employees are remunerated by reference to a standard salary-band matrix, which is comparative to other large churches within the Bristol area.

Page 3

ST MICHAEL'S CHURCH CENTRE LIMITED (REGISTERED NUMBER: 08242432)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT Related parties

None of the Trustees receive remuneration or other benefit from their work with SMCC. In the current year no other related party transactions took place with the Trustees.

St Michael's Church PCC is a related party of St Michael's Church Centre Limited (SMCC). SMCC is responsible for the construction and operation of the St Michael's Church Centre. The Church Centre is the continuing expression of the vision of St Michael's Church of 'Living to make a difference, by being a Christian heart at the centre of our communities'. SMCC and St Michael's Church PCC have one trustee in common. In order to deliver the Church Centre, SMCC took out low-interest loans from individuals, the Bristol Diocese (via St Michael's Church PCC), and CAF Bank. CAF Bank requested, (and the PCC of St Michael's supplied) a "letter of comfort" to signify their support of SMCC operations.

At a PCC Meeting held on 14th July 2014 it was resolved that the directors of St Michael's Church Centre Limited be supported to undertake a loan of up to £800,000 from CAF Bank (including the initial loan of £150,000) and that the St Michael's Church PCC should stand behind the directors of St Michael's Church Centre Limited and offer a "letter of comfort" to CAF Bank in support of that loan, in regard to honouring the capital and interest repayments on that loan if required. The total value of these loans outstanding at the year end was £11,549 (2022 - £60,430).

Interest payments on all loans are the liability of SMCC and are paid from SMCC funds.

Risk management

The major risks to which the charity and each trustee is exposed have been reviewed and, where appropriate, systems and procedures have been established to manage those risks.

The Trustees operate a risk management process. This involves identifying the types of risks the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of managing or mitigating the risks. The main risk to SMCC is the discontinuation of regular and one-off donations from members of the St Michael's congregation for the completion of the new facilities and the repayment of the long-term loans. However, the Trustees regularly review cash-flow projections at the Trustees' board meetings, and are satisfied that, based on the last 5 years track record and experience, SMCC remains financially healthy and solvent for the foreseeable future.

The other risks which occur within the day-to-day operation of the Church Centre are reviewed regularly by the appointed management responsible for the care of children, adults and Health and Safety within the PCC and SMCC.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 08242432 (England and Wales)

Registered Charity number

1149601

Registered office

St Michael's Church Office The Old School Rooms The Green, North Road Stoke Gifford Bristol BS34 8PD

Page 4

ST MICHAEL'S CHURCH CENTRE LIMITED (REGISTERED NUMBER: 08242432)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2023

Trustees

C Bradley Treasurer S Denning L Hitchin Acting Chair C Sweetnam R J Farrell D R Pilch

Auditors

Haines Watts (Western) Limited Chartered Accountants and Statutory Auditors Bath House 6 - 8 Bath Street Bristol BS1 6HL

Bankers

Lloyds Bank 61 Gloucester Road Patchway Bristol BS34 5JH

Web addresses

www.stmichaelsbristol.org

Page 5

ST MICHAEL'S CHURCH CENTRE LIMITED (REGISTERED NUMBER: 08242432)

Report of the Trustees FOR THE YEAR ENDED 31 DECEMBER 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees (who are also the directors of St Michael's Church Centre Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the Trustees are aware:

AUDITORS

The auditors, Haines Watts (Western) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 3 June 2024 and signed on its behalf by:

C Bradley - Trustee

Page 6

Report of the Independent Auditors to the Members of St Michael's Church Centre Limited

Opinion

We have audited the financial statements of St Michael's Church Centre Limited (the 'charitable company') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 7

Report of the Independent Auditors to the Members of St Michael's Church Centre Limited

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 8

Report of the Independent Auditors to the Members of St Michael's Church Centre Limited

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks applicable to the charitable company and the sector in which it operates. We determined that the following laws and regulations were most significant: The Companies Act 2006, UK GAAP, The Charities Act 2011 and the Charities SORP.

We obtained an understanding of how the charitable company is complying with those legal and regulatory frameworks and made enquiries to the management of known or suspected instances of fraud and non-compliance with laws and regulations. We corroborated our enquiries through our review of board minutes, other relevant meeting minutes and review of correspondence with regulatory bodies.

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included:

• Challenging assumptions and judgments made by management in its significant accounting estimates and judgments;

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 9

Report of the Independent Auditors to the Members of St Michael's Church Centre Limited

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Jordan FCA (Senior Statutory Auditor) for and on behalf of Haines Watts (Western) Limited Chartered Accountants and Statutory Auditors Bath House 6 - 8 Bath Street Bristol BS1 6HL

28 June 2024

Page 10

ST MICHAEL'S CHURCH CENTRE LIMITED

Statement of Financial Activities (Incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
5
Management of the Church Centre
Raising funds
3
Investment income
4
Total
EXPENDITURE ON
Raising funds
6
Charitable activities
7
Management of the Church Centre
Heart of the Community
Other
11
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
298,783
139,047
294,383
3,319
735,532
73,021
368,070
75,889
11,529
528,509
207,023
5,541,224
5,748,247		 Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
1,188
1,188		 2023
Total
funds
£
298,783
139,047
294,383
3,319
735,532
73,021
368,070
75,889
11,529
528,509
207,023
5,542,412
5,749,435		 2022
Total
funds
£
368,598
118,353
170,654
308
657,913
46,696
304,597
59,300
10,990
421,583
236,330
5,306,082
5,542,412

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 11

ST MICHAEL'S CHURCH CENTRE LIMITED (REGISTERED NUMBER: 08242432)

Balance Sheet 31 DECEMBER 2023

Notes
FIXED ASSETS
Tangible assets
17
CURRENT ASSETS
Debtors
18
Cash at bank
CREDITORS
Amounts falling due within one year
19
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
20
NET ASSETS
FUNDS
24
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
5,934,504
24,113
273,733
297,846
(221,738)
76,108
6,010,612
(262,365)
5,748,247		 Restricted
fund
£
-
-
1,188
1,188
-
1,188
1,188
-
1,188		 2023
Total
funds
£
5,934,504
24,113
274,921
299,034
(221,738)
77,296
6,011,800
(262,365)
5,749,435
5,748,247
1,188
5,749,435		 2022
Total
funds
£
5,965,166
33,103
274,111
307,214
(118,718)
188,496
6,153,662
(611,250)
5,542,412
5,541,224
1,188
5,542,412

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 3 June 2024 and were signed on its behalf by:

C Bradley - Trustee

L Hitchin - Trustee

The notes form part of these financial statements

Page 12

ST MICHAEL'S CHURCH CENTRE LIMITED

Cash Flow Statement FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2023
£
266,659
(11,943)
254,716
(28,343)
3,319
(25,024)
(228,882)
(228,882)
810
274,111
274,921		 2022
£
315,472
(11,448)
304,024
(90,194)
308
(89,886)
(240,849)
(240,849)
(26,711)
300,822
274,111

The notes form part of these financial statements

Page 13

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Cash Flow Statement FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2023 2022
£ £
Net income for the reporting period (as per the Statement of
Financial Activities) 207,023 236,330
Adjustments for:
Depreciation charges 59,006 58,071
Interest received (3,319) (308)
Interest paid 11,943 11,448
Decrease/(increase) in debtors 8,990 (18,767)
(Decrease)/increase in creditors (16,984) 28,698
Net cash provided by operations 266,659 315,472
2. ANALYSIS OF CHANGES IN NET DEBT
At 1.1.23 Cash flow At 31.12.23
£ £ £
Net cash
Cash at bank 274,111 810 274,921
274,111 810 274,921
Debt
Debts falling due within 1 year (69,430) (120,004) (189,434)
Debts falling due after 1 year (611,250) 348,885 (262,365)
(680,680) 228,881 (451,799)
Total (406,569) 229,691 (176,878)

The notes form part of these financial statements

Page 14

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The charity is a company, incorporated in England and Wales, limited by guarantee having no share capital and, in accordance with the Memorandum of Association, every member is liable to contribute £1 towards the costs of dissolution and liabilities incurred by the charity in the event of the company being wound up. The address of the registered office is given in the charity information on pages 4 to 5 of these financial statements.

The financial statements are prepared in sterling which is the functional currency of the charity and are rounded to the nearest £.

At the end of the year, the charity had net current assets of £77,296 (2022 - £188,496) and creditors falling due after one year of £262,365 (2022 - £611,250) of which £82,917 is repayable between one and two years.

Projections prepared on behalf of the Trustees indicate that whilst sufficient cash will be generated to fund external borrowings, the assumptions on which the projections are based are subject to the uncertainty of whether they will be realised and achieved. These uncertainties therefore have a potential impact on the future ability of the charity to remain a going concern. Whilst there is no impact on the current set of the financial statements Trustees believe it is appropriate to bring this to the attention to the readers of these financial statements.

The financial statements have been prepared on a going concern basis after consideration by the Trustees.

The Trustees have tested their cash flow analysis to take into account the impact on the charity of possible scenarios brought on by the impact of the cost of living crisis and rising energy prices, alongside the measures that they can take to mitigate the impact. The Trustees have considered the impact of these issues on the charity's current and future financial position. The charity holds free reserves of £101,633 (2022 - £117,665). The Trustees consider that the charity has sufficient cash reserves to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved.

Income

All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. The value of services provided by volunteers has not been included.

Voluntary income

Donations are recognised when received and gift aid is recognised on an accruals basis in line with the donation. Grants are also recognised on a receivable basis. Pledges are not recognised until they are received.

Grants and legacies to the charity are accounted for as soon as the charity is notified of its legal entitlement and the amount due.

Investment income

continued...

Page 15

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES - continued

Income

Investment income is recognised on an accruals basis and represents income from deposit funds, short and long term investments.

Rental income

Rental income and the provision of refreshments and other services to hirers, is recognised within other trading activities and is accounted for in the period to which the event takes place.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Raising funds

Costs of raising funds are recognised on an accruals basis in the period to which they relate.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 5 years straight line (equipment), 15 years straight line (kitchen) Freehold property (excluding land) - 50 years straight line (fit-out), 200 years straight line (construction)

All fixed assets are initially recorded at cost. The cost of construction of the church centre, including on surveying and engineering costs, has been capitalised. Depreciation has been charged for the full year on additions.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.

Designated funds form part of the unrestricted funds and have been identified as being for particular purposes by the Trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Debtors

Debtors are measured on initial recognition at settlement amount after any amounts advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.

continued...

Page 16

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES - continued

Creditors

The charity has creditors which are measured at settlement amounts.

Cash and short term investments

Cash at bank is held to meet short-term cash commitments as they fall due rather than for investment purposes and includes all cash equivalents held in the form of short-term highly liquid investments. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

Financial instruments

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the charity's contractual obligations are discharged, cancelled, or they expire.

Concessionary loans

Concessionary loans include those payable to third parties which are interest free or below market interest rates and are made to advance charitable purposes. The charity has applied S34 of FRS102 with regards to the valuation of loans to public benefit entities so that discounted present value and an associated interest charge are not recognised. All loans are measured at cost.

continued...

Page 17

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

2.
DONATIONS AND LEGACIES
Donations
Gift aid
Grants
Grants received, included in the above, are as follows:
South Gloucestershire Council
3.
RAISING FUNDS
Fundraising events
Room hire
Refreshments and other services
4.
INVESTMENT INCOME
Deposit account interest
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Contribution for Church use
Management of the Church Centre		 2023
£
241,216
57,567
-
298,783
2023
£
-
2023
£
839
184,228
109,316
294,383
2023
£
3,319
2023
£
139,047		 2022
£
292,024
70,374
6,200
368,598
2022
£
6,200
2022
£
3,579
110,070
57,005
170,654
2022
£
308
2022
£
118,353

continued...

Page 18

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

6. RAISING FUNDS

Other trading activities

Bad debts
Cost of fundraising events
Costs of refreshments and other services
CHARITABLE ACTIVITIES COSTS
Direct
Costs (see
note 8)
£
Management of the Church Centre
364,230
Heart of the Community
-
364,230
DIRECT COSTS OF CHARITABLE ACTIVITIES
Rates and water
Insurance
Light and heat
Contribution to PCC for cleaner and caretaker
Contribution to PCC for administrator
Contribution to PCC for facilities & hospitality staff
Repairs and maintenance
Cleaning
Licences
Other professional fees
Office, admin and training
Depreciation
Interest payable and similar charges		 Grant
funding of
activities
(see note
9)
£
-
75,889
75,889		 2023
£
-
359
72,662
73,021
Support
costs (see
note 10)
£
3,840
-
3,840
2023
£
4,069
8,099
88,321
976
32,724
76,432
51,420
34,964
159
13
7,633
59,006
414
364,230		 2022
£
171
2,585
43,940
46,696
Totals
£
368,070
75,889		 2022
£
171
2,585
43,940
46,696
443,959
2022
£
2,623
7,124
59,738
1,140
31,404
61,232
42,028
27,249
159
2,188
7,369
58,071
458
300,783

7. CHARITABLE ACTIVITIES COSTS

8. DIRECT COSTS OF CHARITABLE ACTIVITIES

continued...

Page 19

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

9. GRANTS PAYABLE

Heart of the Community
The total grants paid to institutions during the year was as follows:
Axe Valley Christian Trust
The Brickworks
Bridges for Communities
CMS - Rocks Family
Embrace the Middle East Charity
The Epaphras Trust
inHope Bristol
Kintsugi Hope
The Leprosy Mission England
Moldova Mission
The George Muller Charitable Trust
Network Counselling
SIITA Nest
St Mary's and St James Church, Lockleaze
Univida
The total grants paid to individuals during the year was as follows:
Sarah Sutton - Clwb Coffi		 2023
£
75,889
2023
£
2,000
-
-
-
6,000
15,000
6,500
6,000
6,774
9,115
-
-
-
20,000
-
71,389
2023
£
4,500		 2022
£
59,300
2022
£
500
1,000
500
1,000
-
4,000
500
-
-
4,300
10,000
15,500
1,000
-
19,000
57,300
2022
£
2,000

In accordance with the expressed desire to tithe at least 10 per cent of donations to the the Heart Of The Community project £147,915 (2022 - £60,240) has been set aside in the Tithe Fund (designated) to be available for grant funding and £94,889 was expended during the year (2022 - £59,300).

continued...

Page 20

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

10. SUPPORT COSTS

10. SUPPORT COSTS
Governance
costs
£
Management of the Church Centre 3,840
Support costs, included in the above, are as follows:
Governance costs
2023 2022
Management
of the
Church Total
Centre activities
£ £
Auditors' remuneration 2,175 2,229
Auditors' remuneration for non audit work 1,665 1,585
3,840 3,814
11. OTHER
2023 2022
£ £
Interest payable and similar charges 11,529 10,990
12. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2023 2022
£ £
Depreciation - owned assets 59,005 58,071
13. AUDITORS' REMUNERATION
2023 2022
£ £
Fees payable to the charity's auditors for the audit of the charity's financial
statements 2,175 2,229
Accounts preparation 1,665 1,585
Total fees payable 3,840 3,814

continued...

Page 21

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

14. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.

15. STAFF COSTS

Staff costs of £110,132 (2022 - £93,776) were incurred by Stoke Gifford PCC for staff who are jointly employed by Stoke Gifford PCC and SMCC. The contributions that have been made by SMCC are included in charitable activities expenditure.

The Acting Operations Director and the Trustees comprise the key management personnel of the charity. No Trustee received any remuneration during the current or previous year. No Trustees were reimbursed for expenses in the current or previous year. Key management personnel received total employment benefits of £24,194 (2022 - £23,292).

16. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Management of the Church Centre
Raising funds
Investment income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Management of the Church Centre
Heart of the Community
Other
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward		 Unrestricted
funds
£
368,248
118,353
170,654
308
657,563
46,696
304,297
59,300
10,990
421,283
236,280
5,304,944		 Restricted
fund
£
350
-
-
-
350
-
300
-
-
300
50
1,138		 Total
funds
£
368,598
118,353
170,654
308
657,913
46,696
304,597
59,300
10,990
421,583
236,330
5,306,082

continued...

Page 22

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

16.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued
Unrestricted
Restricted
funds
fund
£
£
TOTAL FUNDS CARRIED FORWARD
5,541,224
1,188
17.
TANGIBLE FIXED ASSETS
Fixtures
Freehold
and
property
fittings
£
£
COST
At 1 January 2023
5,940,976
231,118
Additions
-
28,343
At 31 December 2023
5,940,976
259,461
DEPRECIATION
At 1 January 2023
128,259
78,669
Charge for year
42,762
16,243
At 31 December 2023
171,021
94,912
NET BOOK VALUE
At 31 December 2023
5,769,955
164,549
At 31 December 2022
5,812,717
152,449		 Total
funds
£
5,542,412
Totals
£
6,172,094
28,343
6,200,437
206,928
59,005
265,933
5,934,504
5,965,166

The asset value of freehold property of £5,769,955 in the Balance Sheet represents the cumulative expenditure on the acquisition of the land, all construction costs and associated professional fees incurred to date less depreciation.

18. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors - room hire
owing
Income tax recoverable		 2023
£
22,724
1,389
24,113		 2022
£
31,883
1,220
33,103

continued...

Page 23

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other loans (see note 21)
Trade creditors
Accrued expenses		 2023
£
189,434
4,457
27,847
221,738		 2022
£
69,430
23,080
26,208
118,718

The analysis of the maturity of the CAF loan reflects the intent to repay the loan rather than the legal terms of the loan agreement.

20. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Other loans (see note 21)
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Other loans - individuals
Other loans - Bristol Diocese
Other loans - CAF
Amounts falling between one and two years:
Other loans - 1-2 years - individuals
Other loans 1-2 years - Bristol Diocese
Amounts falling due between two and five years:
Other loans 2-5 years - individuals
CONCESSIONARY LOANS
Amount of concessionary loans received		 2023
£
262,365
2023
£
62,635
115,250
11,549
189,434
81,660
-
81,660
180,705		 2022
£
611,250
2022
£
9,000
-
60,430
69,430
330,000
281,250
611,250
-
2023 2022
£ £
Loans from individuals 325,000 339,000
Amounts payable after less than 1 year 62,635 9,000
Amounts payable in more than 1 year 262,365 330,000

21. LOANS

continued...

Page 24

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

21. LOANS - continued

Loans from individuals have been provided at nil rate of interest.

The analysis of the maturity of the loans from individuals reflects the agreements with the individuals this year to repay the loans over the next 4 years, with repayments starting in June 2024.

22. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2023 2022
£ £
Within one year 345 -

23. SECURED DEBTS

The following secured debts are included within creditors:

Other loans -
CAF		 2023
£
11,549
11,549		 2022
£
60,430
60,430

The amounts due under the loan to CAF Bank are secured on the assets that they relate to.

The bank holds a Legal Mortgage and Charge over land and a Fixed Charge over tangible assets.

24. MOVEMENT IN FUNDS

Unrestricted funds
General Fund
Heart of the Community Fund
(designated)
Church Centre Property Fund (designated)
Tithe Fund (designated)
Fabric Fund (designated)
Church Refurbishment Fund (designated)
Restricted funds
Library Fund
TOTAL FUNDS		 At 1.1.23
£
145,082
(445,062)
5,812,717
2,931
25,556
-
5,541,224
1,188
5,542,412		 Net
movement
in funds
£
52,371
273,288
(42,762)
(75,874)
-
-
207,023
-
207,023		 Transfers
between
funds
£
(70,000)
(166,915)
-
147,915
12,000
77,000
-
-
-		 At
31.12.23
£
127,453
(338,689
5,769,955
74,972
37,556
77,000
5,748,247
1,188
5,749,435

continued...

Page 25

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

24. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General Fund
Heart of the Community Fund
(designated)
Church Centre Property Fund (designated)
Tithe Fund (designated)
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General Fund
Heart of the Community Fund
(designated)
Church Centre Property Fund (designated)
Tithe Fund (designated)
Fabric Fund (designated)
Restricted funds
Library Fund
TOTAL FUNDS		 At 1.1.22
£
146,540
(719,881)
5,855,478
1,991
20,816
5,304,944
1,138
5,306,082		 Incoming
resources
£
434,154
301,378
-
-
735,532
735,532
Net
movement
in funds
£
10,542
335,059
(42,761)
(59,300)
(7,260)
236,280
50
236,330		 Resources
expended
£
(381,783)
(28,090)
(42,762)
(75,874)
(528,509)
(528,509)
Transfers
between
funds
£
(12,000)
(60,240)
-
60,240
12,000
-
-
-		 Movement
in funds
£
52,371
273,288
(42,762)
(75,874)
207,023
207,023
At
31.12.22
£
145,082
(445,062)
5,812,717
2,931
25,556
5,541,224
1,188
5,542,412

continued...

Page 26

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

24. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General Fund
Heart of the Community Fund
(designated)
Church Centre Property Fund (designated)
Tithe Fund (designated)
Fabric Fund (designated)
Restricted funds
Library Fund
TOTAL FUNDS
Funds		 Incoming
resources
£
295,736
361,827
-
-
-
657,563
350
657,913		 Resources
Movement
expended
in funds
£
£
(285,194)
10,542
(26,768)
335,059
(42,761)
(42,761)
(59,300)
(59,300)
(7,260)
(7,260)
(421,283)
236,280
(300)
50
(421,583)
236,330

Heart of the Community Fund (designated)

This represents the Heart of the Community Project asset value excluding the value of the Church Centre building. The negative fund includes loans of £451,799 (2022 - £680,680) outstanding at the year end of which £11,549 (2022 - £60,530) is secured against the property.

A transfer of £19,000 has been made in the year from the Heart of the Community Fund to the General Fund in recognition of a refund of the PCC contribution for church use of the Church Centre. Please see note 24 for more details.

Church Centre Property Fund (designated)

Representing the net book value of the Church Centre building.

Tithe fund (designated)

A transfer was made into this fund of £147,915 (2022 - £60,240) to represent the total amounts which have been designated for mission payments.

Fabric fund (designated)

Created to set aside a fund for current and future provisions for maintaining the fabric of the Church Centre. During the year, a transfer was made into this fund of £12,000 (2022 - £12,000).

Library fund (restricted)

This represents funding provided specifically for the development of the community library, a joint initiative with South Gloucestershire Council.

Church Refurbishment Fund (Designated)

This represents funds set aside from the General Fund to reflect the Trustees' decision to earmark £77,000 for the refurbishment of the church building in the future. A transfer of £77,000 has been made to reflect this.

continued...

Page 27

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

24. MOVEMENT IN FUNDS - continued

Funds - continued

Comparative analysis of net assets between funds, are as follows:

Fund balances as at 31 December 2022 Unrestricted Unrestricted Restricted
Total		 Restricted
Total		 Restricted
Total
funds funds
funds
£ £
£
Fixed assets 5,965,166 -
5,965,166
Current assets 306,026 1,188 307,214
Current liabilities (118,718) - (118,718)
Non-current liabilities (611,250
)		 - (611,250
)

Total net assets 5,541,224 1,188
5,542,412

25. RELATED PARTY DISCLOSURES

On 30 June 2014, Stoke Gifford PCC received a loan of £375,000 from the Diocese of Bristol in support of the construction of the Church Centre. This loan was at an interest rate of 0.55% over the CCLA base rate (0.25% at the start of the year, increasing throughout the year to 3.50% on 16 December 2022), and it is required to be repaid by 30 June 2024 as funds allow. On 16 July 2014, these monies were onward loaned to SMCC on the same basis as Stoke Gifford PCC received the loan from the Diocese.

At the year end, the balance outstanding was £115,250 (2022 - £281,250). Interest payments of £10,150 (2022 - £5,065) were paid by SMCC to the Diocese during the year.

During 2014, it was agreed that Stoke Gifford PCC should stand behind the Directors of St Michael's Church Centre Limited (SMCC) and offer a "letter of comfort" to CAF Bank in support of that loan of £800,000, in regard to honouring the capital and interest repayments on that loan if required. Whilst this letter of comfort does not form a legal guarantee, it does represent the commitment of the PCC to support the charitable purpose of SMCC. At the year end, the balance outstanding was £11,549 (2022 - £60,530) and is due to be repaid within 12 months.

During the year, a contribution of £139,047 (2022 - £118,245) was received from Stoke Gifford PCC in recognition of the use of the Church Centre and Old School Rooms for church activities. This is net of a donation of £19,000 (2022 - £nil) made by SMCC to Stoke Gifford PCC from the Heart of the Community Fund following the May Gift Day and the Trustees' decision to refund a value equivalent to approximately 10 per cent of gross pledges.

Contributions of £32,724 (2022 - £31,404) and £77,408 (2022: £62,372) have been paid to Stoke Gifford PCC in recognition of work carried out by employees who are jointly employed by the PCC and SMCC, for administration and building maintenance of the Church Centre respectively.

Donations from Trustees and related parties

The aggregate donations received from the Trustees were £21,010 (2022 - £43,370).

Other related party transactions

continued...

Page 28

ST MICHAEL'S CHURCH CENTRE LIMITED

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 DECEMBER 2023

25. RELATED PARTY DISCLOSURES - continued

During the previous year grants of £1,000 were paid to The Brickworks. SMCC and The Brickworks had one trustee in common at the start of the previous year.

Page 29