TAKING C.R04D
Accounts- 31st August 2021
## **TAKING GROUND**
_(A company limited by guarantee and not having a share capital)_
Charity number: 1150029 Company number: 8295067
Accounts – 31st August 2021
## **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
- 7-12. Notes to the Accounts
**Registered in England and Wales No: 8295067**
1.
## **TAKING GROUND**
## **REPORT OF THE TRUSTEES for the year ended 31st August 2021**
The Trustees are pleased to present their annual report and financial statements of the charitable company for the year ended 31st August 2021 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 the 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) issued in October 2019.
## **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.
**TAKING GROUND**
2.
## **REPORT OF THE TRUSTEES**
## **for the year ended 31st August 2021 (** 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.
## 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 Three13 Training and Enterprise Limited (formerly known as TVCP) and the Academy of Ministry and Leadership (AML). The Daniel Challenge gap year programme has stopped running due to the impact of Covid.
The School of Applied Theology (SAT) continued during the year providing biblical training and thinking for todays world. SAT had over 50 students, with a diverse range of ages from 17 to over 70 year olds.
## 2. **Taking Ground Music**
Taking Ground Music is a group of singers and musicians from within the church families of Taking Ground, with a vision to see people’s 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 £152,439 compared with £145,352 in the previous year. Total expenditure on charitable activities amounted to £122,365. The balance on unrestricted funds at the year end was £89,289 and restricted funds £28,508.
There was increased support for York Church this year. Expenditure for the year was curtailed due to the impact of the Covid restrictions.
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 3 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 reasons 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.
**TAKING GROUND**
3.
## **REPORT OF THE TRUSTEES**
**for the year ended 31st August 2021 (** 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 18th August 2022
M Dunkley
Signed on its behalf by:
………………………………………………… Director and Trustee
Eaglescliffe
## **TAKING GROUND**
## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES**
I report to the charity trustees on my examination of the accounts of the company for the year ended 31st August 2021.
## **Responsibilities and Basis of Report**
As the charity’s trustees (and also the directors of the company for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent Examiner’s Statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act 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; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
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
24th August 2022
5.
## **TAKING GROUND**
## **STATEMENT OF FINANCIAL ACTIVITIES**
_(including an income and expenditure account)_
## **for the year ended 31st August 2021**
|Note
**Income from:**
Donations
3
Charitable activities
4
**Total incoming resources**
**Expenditure on:**
Charitable activities
5
**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**
**2021**
**£**
**£**
**£**
97,523
50,258
147,781
4,658
-
4,658
102,181
50,258
152,439
82,496
39,869
122,365
82,496
39,869
122,365
19,685
10,389
30,074
-
-
-
19,685
10,389
30,074
69,604
18,119
87,723
£89,289
£28,508
£117,797|**Total**
**Funds**
**2020**
**£**
135,284
10,068|
|---|---|---|
|||145,352|
|||128,578|
|||128,578|
|||16,774
-|
|||16,774
70,949|
|||£87,723|
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 12 form part of these financial statements
Registered in England and Wales: 8295067
6.
## **TAKING GROUND**
## **BALANCE SHEET as at 31st August 2021**
|Note
**Fixed assets**
Tangible assets
10
**Total fixed assets**
**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**
**Total net assets**
14
**The funds of the Charity**
Restricted income funds
15
Unrestricted income funds
15
**Total charity funds**|**2021**
**£**
2,200
2,200
2,765
184,340
187,105
71,508
115,597
117,797
£117,797
28,508
89,289
£117,797|**2020**
**£**
-|
|---|---|---|
||||
|||3,389
89,016|
|||92,405
4,682|
|||87,723|
|||87,723|
|||£87,723|
|||18,119
69,604|
|||£87,723|
For the year ended 31st August 2021 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: 18th August 2022 and are signed on their behalf by:
M Dunkley
...................................................... Director and Trustee
The notes on pages 7 to 12 form part of these financial statements
**TAKING GROUND**
7.
## **NOTES TO THE ACCOUNTS**
## **for the year ended 31st August 2021**
## 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 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK 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 2021** (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 £1,000 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** Computer 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.
## k) **Grants**
Income from Government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probably that the income will be received and the amount can be measured reliably and is not deferred.
## 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.
**TAKING GROUND**
9.
## **NOTES TO THE ACCOUNTS**
**for the year ended 31st August 2021** (continued)
## 3. **Income from donations**
|Gifts, donations and grants|2021
£
147,781
£147,781|2020
£
135,284|
|---|---|---|
|||£135,284|
Of the £147,781 received in 2021 (2020: £135,284) £50,258 was restricted funds (2020: £41,661) and £97,523 (2020: £93,623) 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.
## 4. **Income from charitable activities**
|Contribution to trips and events
Course fees|2021
£
1,250
3,408
£4,658|2020
£
431
9,637|
|---|---|---|
|||£10,068|
Of the £4,658 received in 2021 (2020: £10,068) £Nil was restricted funds (2020: £Nil) and £4,658 (2020: £10,068) unrestricted funds
## 5. **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
2021
work
Training
Establishment
Total
£
£
£
£
69,048
-
31,141
100,189
551
-
17
568
-
-
1,724
1,724
181
1,088
149
1,418
2,160
-
-
2,160
7,874
883
4,914
13,671
451
-
268
719
1,916
-
-
1,916
£82,181
£1,971
£38,213£122,365|2020
Total
£
99,285
5,347
-
641
3,750
14,417
3,238
1,900|
|---|---|---|
|||£128,578|
Of the £122,365 expenditure in 2021 (2020: £128,578), £82,496 was charged to unrestricted funds (2020: £88,087) and £39,869 to restricted funds (2020: £40,491).
## 6. **Net income/(expenditure) for the year**
|_This is stated after charging:_
Depreciation
Accountancy and Independent examiner's fees|2021
£
174
1,916|2020
£
-
1,900|
|---|---|---|
10.
## **TAKING GROUND**
## **NOTES TO THE ACCOUNTS**
**for the year ended 31st August 2021** (continued)
## 7. **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.|2021
£
32,635
£32,635|2020
£
32,937|
|---|---|---|
|||£32,937|
No employees had emoluments in excess of £60,000 (2020: 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|2021
£
62,769|2020
£
62,957|
|---|---|---|
Expenses paid to other Trustees in the year for travel and subsistence amounted to £Nil (2020: two Trustees £302).
The charity considers its key management personnel comprise the Trustees.
During the year the trustees and their spouses and the key management personnel donated £13,610 (2020: £11,910) to the charity in total.
## 8. **Staff numbers**
The average monthly number of employees during the year was as follows:
|Ministry work
Church Establishment|2021
Number
1
1
2|2020
Number
1
1|
|---|---|---|
|||2|
## 9. **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.
**TAKING GROUND**
11.
## **NOTES TO THE ACCOUNTS**
**for the year ended 31st August 2021** (continued)
## 10. **Tangible fixed assets**
|Cost:
As at 01.09.2020
Additions
As at 31.08.2021
Depreciation:
As at 01.09.2020
Charge for year
As at 31.08.2021
Net book value:
As at 31.08.2021
As at 31.08.2020
**Debtors**
Prepayments and accrued income
Other debtors
**Creditors: amounts falling due within one year**
Trade creditors
Accruals
Other creditors
Deferred income||Computer
Equipment
£
-
2,374
2,374
-
174
174
£2,200
£-
2021
£
1,111
1,654
£2,765
2021
£
1,200
1,955
66,578
1,775
£71,508|Total
£
-
2,374|
|---|---|---|---|
||||2,374|
||||-
174|
||||174|
||||£2,200|
||||£-|
||||2020
£
925
2,464|
||||£3,389|
||||2020
£
409
1,935
313
2,025|
||||£4,682|
## 11. **Debtors**
## 12. **Creditors: amounts falling due within one year**
## 13. **Deferred income**
Deferred income consists of income received in advance for grants, course fees and events. The deferred income from the previous year has been released to the income and expenditure account.
12.
## **TAKING GROUND**
## **NOTES TO THE ACCOUNTS**
**for the year ended 31st August 2021** (continued)
## 14. **Analysis of net assets between funds**
|Tangible fixed assets
Cash at bank and in hand
Other net current assets/(liabilities)
**Total**|General
Restricted
Fund
Funds
Total
£
£
£
1,350
850
2,200
91,481
92,859
184,340
(3,542)
(65,201)
(68,743)|
|---|---|
||£89,289
£28,508
£117,797|
The charity received £66,578 during the year in respect of the Daniel Challenge project. This project did not proceed and the funds are repayable and included in other creditors.
## 15. **Analysis of charitable funds**
## **Analysis of movements in restricted funds**
|T Gray leaving fund
Churches - York
**Total**|Balance
Incoming
Resources
Funds
01.09.2020
resources
expended
Transfers
31.08.2021
£
£
£
£
£
-
1,655
(1,655)
-
-
18,119
48,603
(38,214)
-
28,508|
|---|---|
||£18,119
£50,258
£(39,869)
£-
£28,508|
## **Name of restricted fund and 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
01.09.2020
resources
expended
Transfers
31.08.2021
£
£
£
£
£
69,604
102,181
(82,496)
-
89,289|
|---|---|
||£69,604
£102,181
£(82,496)
£-
£89,289|
## **Name of unrestricted fund Description, nature and purposes of the fund**
General fund The 'free reserves' after allowing for all designated funds.