TAKING C.R04D
Accounts- 31st August 2020
## **TAKING GROUND**
_(A company limited by guarantee and not having a share capital)_
Charity number: 1150029 Company number: 8295067
Accounts – 31st August 2020
## **INDEX**
- 1-3. Report of the Trustees and General Information
4. Independent Examiner’s Report to the Trustees
5. Statement of Financial Activities
6. Balance Sheet
- 7-11. Notes to the Accounts
**Registered in England and Wales No: 8295067**
1.
## **TAKING GROUND**
## **REPORT OF THE TRUSTEES for the year ended 31st August 2020**
The Trustees are pleased to present their annual report and financial statements of the charitable company for the year ended 31st August 2020 which are also prepared to meet the requirements for a directors’ report and accounts for Company Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 the Republic of Ireland (FRS 102) (effective 1st January 2015).
## **Reference and Administration Details**
The charity’s name is Taking Ground.
Charity Registration Number: 1150029
Company Number: 8295067
Registered and Principal Office: The Oakwood Centre, Cleasby Way, Eaglescliffe, Stockton-on-Tees, TS16 0RD
## **Trustees and Directors**
The Trustees of the charitable company (the charity) are its Directors for the purposes of company law. The Trustees and officers who served during the year and since the year end were as follows:
M Dunkley Dr N Wright J Goulding S McFarlane N Strike M Biddlecombe
Secretary: D Marley
## **Objectives and Activities**
The main objectives of the charity are to advance the Christian faith in accordance with the statement of beliefs in the North East of England or other areas as the Trustees think fit.
The main activity of the Charity is the provision of religious education and ministry.
In planning the activities of the charitable company the trustees have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.
The Charitable company’s activities of advancement of the Christian faith through education and ministry are available to the people in the North East of England and wider area to make a positive contribution to the local and wider community.
2.
## **TAKING GROUND**
## **REPORT OF THE TRUSTEES**
## **for the year ended 31st August 2020 (** Continued)
## **Achievements and Performance**
Taking Ground is a family of 9 churches across the North East of England and Yorkshire – Hexham Community Church, Birtley Community Church, Sunderland Community Church, Durham Community Church, Middlesbrough Community Church, Tees Valley Community Church, Embrace Church Darlington, Easingwold Community Church and Collective Church York.
Taking Ground has supported the planting and development of Collective Church York.
## 1. **Training**
The Taking Ground family has provided financial support to the training activities within any of the individual churches within the Taking Ground family.
Specifically Taking Ground has provided both financial support and practical advice to the activities of 3-13, Academy of Ministry and Leadership (AML) and the Daniel Challenge gap year programme.
The School of Applied Theology (SAT) continued during the year providing biblical training and thinking for todays world. SAT had over 50 students on the first year, with a diverse range of ages from 15 to over 70 year olds.
Due to the Covid pandemic Taking Ground had to amend how its training took place, with SAT and AML moving to online teaching.
## 2. **Taking Ground Music**
Taking Ground Music is a group of singers and musicians from with the church families of Taking Ground, with a vision to see peoples lives changed and impacted by music as an expression of worship. During the year Taking Ground Music recorded and released new music.
## **Financial Review**
Total income for the year was £145,352 compared with £135,368 in the previous year. Total expenditure on charitable activities amounted to £128,578. The balance on unrestricted funds at the year end was £69,604 and restricted funds £18,119.
The main source of income during the year was donations.
## **Reserves Policy**
The Trustees have set a reserves policy which requires maintaining free unrestricted cash balances in the general fund amounting to between 3 and 6 months of its annual expenditure.
Reserves should be maintained at this level which ensures that the charity’s core activity could continue during a period of unforeseen difficulty. The reserves should be maintained in an easily accessible form.
The calculation of the required level of reserves is an integral part of the organisation's annual planning, budget and forecast cycle. The level of reserves is considered reasonable and it takes into account risks associated with each stream of income and expenditure being different from that budgeted, planned activity level, the Church’s commitments to its stakeholders, future spending plans and expected liabilities and anticipated building costs. It also reflects as far as possible the current economic climate and trends.
In addition, the Trustees also consider the establishment of future church plants which involves significant financial support. For this reason, the Trustees aim to increase free cash reserves modestly in the short to medium term.
The reserves policy will be reviewed by the Trustees every 12 months.
3.
## **TAKING GROUND**
## **REPORT OF THE TRUSTEES**
**for the year ended 31st August 2020 (** Continued)
## **Structure, Governance and Management**
## **Governing Document**
Taking Ground is a company limited by guarantee governed by its Memorandum and Articles of Association dated 15th November 2012. It is registered as a charity with the Charity Commission. Members of the charitable company guarantee to contribute amounts not exceeding £1 to the assets of the charitable company in the event of winding up.
## **Appointment of Trustees**
The Trustees keep the composition of the board under review and will seek to appoint additional members with appropriate skills and expertise should the need arise. Interested parties are given details of the background of the charitable company in order to make them aware of current activities.
The methods of appointment of Trustees are set out in the Articles of Association.
Members may propose the appointment of a person as a Trustee at any general meeting by following the notice and other requirements set out in the Articles.
The charity may by ordinary resolution appoint a person who is willing to act as a Trustee.
Persons willing to be appointed as Trustees must subscribe to the Statement of Faith attached to the Articles.
In selecting individuals for appointment, the Trustees are required to have regard to the skills, knowledge and experience required for the effective administration of the charity.
This report has been prepared in accordance with the special provisions relating to companies subject to the Small Companies Regime within part 15 of the Companies Act 2006.
This Report was approved by the Board on 27th April 2021
M Dunkley Signed on its behalf by: ………………………………….. Director and Trustee
Eaglescliffe
## **TAKING GROUND**
## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES**
I report to the trustees on my examination of the accounts of Taking Ground for the year ended 31st August 2020.
## **Responsibilities and Basis of Report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent Examiner’s Statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
A P Williams FCCA A J Carter & Co Chartered Accountants
22b High Street Witney Oxon OX28 6RB
18th May 2021
5.
## **TAKING GROUND**
## **STATEMENT OF FINANCIAL ACTIVITIES**
_(including an income and expenditure account)_
## **for the year ended 31st August 2020**
|Note
**Income from:**
Donations
3
Charitable activities
4
Other trading activities
5
**Total incoming resources**
**Expenditure on:**
Charitable activities
6
**Total expenditure**
**Net income/(expenditure) and net**
**movement in funds for the year**
**Transfer between funds**
15
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**|**Unrestricted Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**2020**
**£**
**£**
**£**
93,623
41,661
135,284
10,068
-
10,068
-
-
-
103,691
41,661
145,352
88,087
40,491
128,578
88,087
40,491
128,578
15,604
1,170
16,774
-
-
-
15,604
1,170
16,774
54,000
16,949
70,949
£69,604
£18,119
£87,723|**Total**
**Funds**
**2019**
**£**
123,923
11,150
295|
|---|---|---|
|||135,368|
|||143,051|
|||143,051|
|||(7,683)
-|
|||(7,683)
78,632|
|||£70,949|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
The notes on pages 7 to 11 form part of these financial statements
Registered in England and Wales: 8295067
6.
## **TAKING GROUND**
## **BALANCE SHEET as at 31st August 2020**
|Note
**Current assets**
Debtors
11
Cash at bank and in hand
**Total current assets**
**Liabilities**
Creditors falling due within one year
12
**Net current assets**
**Total assets less current liabilities**
Provisions for liabilities
**Total net assets**
14
**The funds of the Charity**
Restricted income funds
15
Unrestricted income funds
15
**Total charity funds**|**2020**
**£**
3,389
89,016
92,405
4,682
87,723
87,723
£87,723
18,119
69,604
£87,723|**2019**
**£**
3,068
77,111|
|---|---|---|
|||80,179
9,230|
|||70,949|
|||70,949|
|||£70,949|
|||16,949
54,000|
|||£70,949|
For the year ended 31st August 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
## **Directors’ Responsibilities**
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
The directors acknowledge their responsibilities for complying with the requirements of the act with respect to the accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the special provisions relating to companies subject to the Small Companies Regime within part 15 of the Companies Act 2006.
These accounts were approved by the board of directors and authorised for issue on: 27th April 2021 and are signed on their behalf by:
M Dunkley ...................................................... Director and Trustee
The notes on pages 7 to 11 form part of these financial statements
**TAKING GROUND**
7.
## **NOTES TO THE ACCOUNTS**
**for the year ended 31st August 2020**
## 1. **Accounting Policies**
The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## a) **Basis of Preparation**
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006.
The charitable company constitutes a public benefit entity as defined by FRS 102.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concerning.
## b) **Income Recognition Policies**
Items of income are recognised and included in the accounts when all of the following criteria are met:
- The charity has entitlement to the funds;
- any performance conditions attached to the items of income have been met or are fully within the control of the charity;
- there is sufficient certainty that receipt of the income is considered probable; and
- the amount can be measured reliably.
Income received in advance of a specific performance or provision of other specified service is deferred until the criteria for income recognition are met.
## c) **Donated Services and Facilities**
In accordance with the Charity SORP (FRS 102) the general time of volunteers is not recognised in the accounts.
- d) **Interest Receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.
- e) **Fund Accounting**
- Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are unrestricted funds of the Charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for the particular areas of the Charity’s work or for specific projects being undertaken by the Charity.
**TAKING GROUND**
8.
## **NOTES TO THE ACCOUNTS**
**for the year ended 31st August 2020** (continued)
- f) **Expenditure and Irrecoverable VAT**
- Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Expenditure on Charitable activities includes the cost of – provision of religious education and ministries _._
- Other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
g) **Tangible Fixed Assets** Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives on the straight line basis as follows:
|**Asset**|**Annual**|
|---|---|
|**Category**|**Rate**|
|Equipment|25%|
- h) **Debtors**
Trade and other debtors are recognised at the settlement amounts due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
- i) **Cash at Bank and in Hand** Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
- j) **Creditors and Provisions** Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## 2. **Legal Status of the Charity**
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
## 3. **Income from donations**
|Gifts, donations and grants|2020
£
135,284
£135,284|2019
£
123,923|
|---|---|---|
|||£123,923|
Of the £135,984 received in 2020 (2019: £123,923) £41,661 was restricted funds (2019: £33,068) and £93,623 (2019: £90,855) unrestricted funds.
The charity benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102) the economic contribution of general volunteers is not recognised in the accounts.
9.
## **TAKING GROUND**
## **NOTES TO THE ACCOUNTS**
**for the year ended 31st August 2020** (continued)
## 4. **Income from charitable activities**
|Contribution to trips and events
Course fees|2020
£
431
9,637
£10,068|2019
£
7,087
4,063|
|---|---|---|
|||£11,150|
Of the £10,068 received in 2020 (2019: £11,150) £Nil was restricted funds (2019: £Nil) and £10,068 (2019: £11,150) unrestricted funds.
## 5. **Income earned from other trading activity**
|Music sales|2020
£
-
£-|2019
£
295|
|---|---|---|
|||£295|
Of the £Nil received in 2020 (2019: £295) £Nil was restricted funds (2019: £Nil) and £Nil (2019: £295) unrestricted funds.
## 6. **Analysis of expenditure on charitable activities**
|Personnel/Human Recourses
Motor and travel
Premises costs and trainee accommodation
Training materials, fees and conferences
Charitable grant
Other activity costs
Depreciation and assets not capitalised
Accountancy
**Total**|Education
Ministry
and
Church
2020
work
Training
Establishment
Total
£
£
£
£
68,116
-
31,169
99,285
3,425
100
1,822
5,347
-
-
-
-
-
416
225
641
3,750
-
-
3,750
7,546
2,123
4,748
14,417
21
691
2,526
3,238
1,900
-
-
1,900
£84,758
£3,330
£40,490£128,578|2019
Total
£
99,157
12,817
334
2,415
4,450
21,124
984
1,770|
|---|---|---|
|||£143,051|
Of the £128,578 expenditure in 2020 (2019: £143,051), £88,087 was charged to unrestricted funds (2019: £103,896) and £40,491 to restricted funds (2019: £39,155).
## 7. **Net income/(expenditure) for the year**
|_This is stated after charging:_
Depreciation
Accountancy and Independent examiner's fees|2020
£
-
1,900|2019
£
-
1,770|
|---|---|---|
**TAKING GROUND**
10.
## **NOTES TO THE ACCOUNTS**
**for the year ended 31st August 2020** (continued)
## 8. **Analysis of staff costs and trustee remuneration, expenses and related transactions**
|Total emoluments (including employers national insurance and employers
defined pension contributions) recharged from another charity.|2020
£
32,937
£32,937|2019
£
34,281|
|---|---|---|
|||£34,281|
No employees had emoluments in excess of £60,000 (2019: Nil). Pension costs are allocated to activities in proportion to the related staffing costs incurred.
During the year the trustees and officers received remuneration from the charity as permitted by the Memorandum and articles of association and expenses as follows. This is paid to them in respect of their employment.
|M and Mrs L Dunkley - fees and expenses|2020
£
62,957|2019
£
63,709|
|---|---|---|
Expenses paid to another two Trustees in the year for travel and subsistence amounted to £302 (2019: two trustees £337).
The charity considers its key management personnel comprise the Trustees.
During the year the trustees and their spouses and the key management personnel donated £11,910 (2019: £6,595) to the charity in total.
## 9. **Staff numbers**
The average monthly number of employees during the year was as follows:
|Ministry work
Education and Training
Church Establishment|2020
Number
1
-
1
2|2019
Number
1
1
1|
|---|---|---|
|||3|
## 10. **Corporation tax**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
## 11. **Debtors**
|Prepayments and accrued income
Other debtors|2020
£
925
2,464
£3,389|2019
£
489
2,579|
|---|---|---|
|||£3,068|
11.
## **TAKING GROUND**
## **NOTES TO THE ACCOUNTS**
**for the year ended 31st August 2020** (continued)
## 12. **Creditors: amounts falling due within one year**
|Trade creditors
Accruals
Other creditors
Deferred income|2020
£
409
1,935
313
2,025
£4,682|2019
£
1,830
1,915
-
5,485|
|---|---|---|
|||£9,230|
## 13. **Deferred income**
Deferred income consists of income received in advance for grants, course fees and events.
## 14. **Analysis of net assets between funds**
|Cash at bank and in hand
Other net current assets/(liabilities)
**Total**|General
Restricted
Fund
Funds
Total
£
£
£
71,225
17,791
89,016
(1,621)
328
(1,293)|
|---|---|
||£69,604
£18,119
£87,723|
## 15. **Analysis of charitable funds**
## **Analysis of movements in restricted funds**
||Balance|Incoming|Resources||Funds|
|---|---|---|---|---|---|
||01.09.2019|resources|expended|Transfers|31.08.2020|
||£|£|£|£|£|
|Churches - York|16,949|41,661|(40,491)|-|18,119|
|**Total**|£16,949|£41,661|£(40,491)|£-|£18,119|
|**Name of restricted**|**fund**|**Description, nature and purposes of the fund**||||
The restricted funds are for specific projects in the charity's activities and pastoral care.
## **Analysis of movements in unrestricted funds**
|General fund
**Total**|Balance
Incoming
Resources
Funds
01.09.2019
resources
expended
Transfers
31.08.2020
£
£
£
£
£
54,000
103,691
(88,087)
-
69,604|
|---|---|
||£54,000
£103,691
£(88,087)
£-
£69,604|
**Name of unrestricted fund Description, nature and purposes of the fund**
General fund The 'free reserves' after allowing for all designated funds.