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2021-03-31-accounts

Charity registration number: 1153995

GRACE CHURCH HALEWOOD

Annual Report and Financial Statements for the Year Ended 31 March 2021

GRC Accountants Limited 166 Banks Road West Kirby Wirral CH48 0RH

GRACE CHURCH HALEWOOD

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 4
Statement of Trustees' Responsibilities 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 15

GRACE CHURCH HALEWOOD

Reference and Administrative Details

Trustees Mr Bryan Walsh Mr Edward Boyes Mr Jamie Robert Sparkes Mr Sydney Alexander Elliott Mr Rodney Wort Mr Mark Wesley Armstrong Mr Stephen David Wells Principal Office 9 Hedingham Close Halewood L26 6LX Charity Registration Number 1153995 Independent Examiner GRC Accountants Limited 166 Banks Road West Kirby Wirral CH48 0RH

Page 1

GRACE CHURCH HALEWOOD

Trustees' Report

The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2021.

Introduction

Grace Church Halewood was constituted in 2006, and registered with the Charity Commission as a Charitable Incorporated Organisation in 2013. This sixth Annual Report is prepared in accordance with our obligations as a CIO and relates to the period from 1st April 2020 to 31st March 2021.

Aims and Purposes

The Trustees are responsible for the objectives of the charity – specifically to advance the Christian faith for the benefit of the public in Knowsley and beyond, and to relieve distress here and elsewhere.

Achievements and performance

With the Covid-19 outbreak in March 2020 the trustees had to manage a different set of circumstances. Our aim to grow and enhance the activities that Grace Church had been running and involved in for the past number of years – namely the provision of weekly corporate public gatherings for worship and Bible teaching, had to be rethought and done creatively. The collective support and encouragement of the church community was redone and we used technology to ensure there were ways we could support and develop specific programmes for children, young people, families and the older generation.

We had to react quickly to the changing situation. In order to continue meeting regularly we recorded our Sunday morning services which went live at 11am on a Sunday morning. This meant that we could all participate together at the same time on a Sunday morning, virtually. For the older generation with limited technology a DVD of the service was prepared and delivered so that they could feel part of the church community meeting at the same time. On a Sunday evening zoom meetings were held, this was an opportunity for people to meet in small groups to chat and share. Both of these services were made accessible and available to the wider community and were very appreciated by all those who joined.

During this period of time we were unable to run our weekly Toddler groups, the older generation were unable to meet and our youth work and children’s work were all unable to run in person. To substitute this we did run a weekly meeting for our children and young people on zoom. This was an opportunity to encourage them as they were not in school or meeting with people regularly.

As trustees we were very aware that those less technically minded and those in the older generation were becoming increasingly isolated. We set up a system to ensure that each family linked to Grace Church was contacted each week to provide support. Our care group also ensured that the needs of the elderly and more vulnerable in our community were met by shopping for them, collecting prescriptions etc.

As restrictions eased slightly during the summer months we were able to encourage our small adult groups and young people’s groups to meet in gardens in groups of six. This eased the sense of isolation and was an opportunity to rebuild a sense of community.

At Halewood Leisure Centre we rent office space that has increased our involvement in the local community and gives us a central hub where people can drop in and chat to one of our staff or members. When the centre was open during this time people were able to drop in, however in continuation with Covid guidelines we were unable to hold any groups due to space and lack of ventilation.

Page 2

GRACE CHURCH HALEWOOD

Trustees' Report

Communication

We seek to communicate regularly with our membership through weekly notice sheets and email updates, and member’s meetings were held twice a year on zoom. The Trustees and Leadership Teams use email, ChurchSuite, Google docs, WhatsApp and text messaging to ensure good contacts, and this is to be further developed in future. Our church website is updated regularly with resources as well as information on past and up and coming events; this, alongside the use of social media, has improved our communication with members, congregation and the wider community.

Management

The management of Grace Church is shared by the Trustees with a group of men and women appointed as Elders and Deacons, and an ad hoc group of ‘Ministry Leaders’. One of the Trustees is specifically employed as the principal teaching elder, and offers particular pastoral care for the members, and a whole host of needs in the community which are brought to his attention. We have a team of seven elders serving in our Church management team.

In addition, we have a full time employee who focuses on supporting and mentoring young people. Also we have another part time employee who works primarily with the administration.

Membership, attendance and local impact

Grace Church in the period under review has an active membership of around 106. We have had large numbers of people watching our online services over the year, and a majority of the membership were actively involved in the services and in a range of online children’s and youth ministries. The age range of regular attenders’ spans 0 - 92 years.

Mission and Evangelism

Grace Church offers opportunities for the wider community to engage with us, however this was harder to do during this year. We were able to support the work of New Hutte neighbourhood centre at Torrington Drive by delivering hot meals three times a week to those in our local community who were isolated and in specific need. At Christmas we were able to form some small carol singing groups around local neighbourhoods and we produced an online Christmas nativity. During this time an online Christianity Explored Course ran on zoom and a Marriage course was held virtually, where a number of people from the community joined in.

As mentioned earlier our face to face /outreach ministries had to be suspended due to covid restrictions and we held our children’s and youth works online.

Grace Church allocates 10% of our income to Mission outside of Halewood; in the past year this has included financial help to students attending Gospel Partnership and Bible College Training, support for a couple engaged in world mission based in South Carolina, as well as regular support for a missionary couple working in Papua New Guinea. We also have supported the work of Open Air Mission and Faith in Kids. Members of Grace Church have also chosen to help support other nationwide churches that are financially struggling. We would normally partner with a local Church for our children’s summer camp (Bridge Camp) sending both children and adult workers. However due to Covid restrictions the camps were unable to take place during this period.

Page 3

GRACE CHURCH HALEWOOD

Trustees' Report

Inter-church support and affiliations

Historically we have partnered with other churches in particular in South Liverpool in furthering the teaching and education aims of the charity, through inter-church meetings, providing speakers for church meetings, supporting the work of Liverpool Homeless outreach and the city-wide Barnabas Bible Class; we have also provided helpers for an annual Kids camp, which takes 60 children from different parts of the city region to a week-long holiday camp in Wales. Unfortunately when Covid restrictions were introduced much of this was put on pause and transferred online until spring 2021. Grace Church is a member of the Fellowship of Independent Evangelical Churches www.fiec.org.uk, which provides legal and professional support, training, and networking to more than 617 churches mainly in the UK. We also partner with the North West Partnership, which provides training, conferences and networking support for churches in the Region. www.northwestpartnership.com

Financial Review

Grace Church relies entirely on the freewill giving of members and others sympathetic with our aims and objectives. No public appeals for money are made. The restricted funds shown in the Accounts refer to monies donated towards the ‘Footprint Fund’ to provide premises in the neighbourhood to further the aims of the Charity; the original project did not come to fruition, and the funds remain completely available for disposal by the Trustees. It remains our wish to identify a ‘footprint’ building in the community of Halewood.

The Trustees acknowledge the generous giving of the fellowship, and the hard work of the Finance Team in accounting for, and expending these funds over the period in question. The modest balance in all accounts is entirely in line with the Trustees expectations and wishes for the Charity.

Trustees

The Trustees have remained the same during the period under review.

The annual report was approved by the trustees of the charity on 10 January 2022 and signed on its behalf by:

......................................... Mr Jamie Robert Sparkes Trustee

Page 4

GRACE CHURCH HALEWOOD

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees of the charity on 10 January 2022 and signed on its behalf by:

......................................... Mr Jamie Robert Sparkes Trustee

Page 5

CRACE CHURCH HALEWOOD Independent Examiner's Report to the trustees of GRACE CHURCH HALEWOOD I report to the cliarity tl'U5tee5 on my ¢xaminotion of the account5 of the charity for the year et)ded 31 Mairh 2021 which are set out on po8¢s 7 to 15. Respective iesponslbilities of t￿￿te¢S •nd exnmln¢i' As the ¢harity's trustees of GRACE CHURCH HALEWOOD you al'e Jrsponsible for the preparntion of the accounts in accordance with the requirements of the Ch*Jriti¢s A¢t 2011 I'th¢ Act'j. I report in respect of n)y examination of tlie GRACE CHURCH HALEWOOD'S accounts carried out under section 145 of the 201 l Act and in cairying out iiiy exaniination I liave followed all tli¢ appli¢abl¢ Directions 8iv¢n by the Charity CLTrinnii5sion under se¢tioi1 14515}Ibl of the Act, Ind¢p¢ndent exnminer s stgt¢m¢iit Since ORACB CHURCH 14ALEWOOD's 8ross income exc¢¢ded £250.000 yoiii. ¢xwniin¢r must be o n)ember of a body listed in Section 145 Ol'the 2011 Acl. l ¢onfinii thni l am qualifiod to undertake the expininotioii becaiis¢ l am a member of ACCA, wliibh is oiie of tlie listed b¢xties. I have eompleted my ¢xaniination. I confimi that 110 material mattel'5 hpve come to Iny attenlioii in ¢onnedion with tlie Exaii)inaLion givi178 m¢ cause to believe iliat in aiiy Inat¢rial respect.. l. Accounting records were not kcpl iii respect of GRACE CHURCH HALEWOOD as required by section 130 of ¢li¢ A¢l', or 2. the accoiints do not accord with those Ircords; or 3. the atsLuunls do not Coinply with ilic #cL'ountIn￿ reqiiireiheiits coi1ceinin￿ th¢ foi'm and content Df acGouiI15 set oiit in tlie Cliai'ilies IA¢coiiiits &nd Rewrtsl Rugulati01i5 2008 oiliei. than tiny rcquir¢m¢iil tliat tlie accouiitl give a 'tr￿ and fair view. whicli is n t a matter considered as part of pn independent ¢Xdmiiiatioi?. have no coiiccim5 aiid have coine Dcross no otlier In&lt¢rs 111 coiinection with tli¢ cxarnination to whicli &tlention should be drawn in thi¥ repoit ii) order lo onable a pi'op¢r understanding ofilie ac¢ouiits to be Irached. Gfi￿th Looper ACCA 166 Banks Road West Icirby Wirral CH48 ORH D&tc'. £7/01 /2022 Pag¢ 6

GRACE CHURCH HALEWOOD

Statement of Financial Activities for the Year Ended 31 March 2021

Note
Income and Endowments from:
Donations and legacies
Charitable activities
Total income
Expenditure on:
Raising funds
Other expenditure
6
Total expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
12
Note
Income and Endowments from:
Donations and legacies
Charitable activities
Total income
Expenditure on:
Raising funds
Other expenditure
6
Total expenditure
Net income
Gross transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
12		 Unrestricted
funds
£
27,337
123,129
150,466
(116,236)
(3,869)
(120,105)
30,361
78,638
108,999
Unrestricted
funds
£
47,698
130,398
178,096
(162,082)
(3,869)
(165,951)
12,145
(13,978)
(1,833)
80,471
78,638		 Restricted
funds
£
26,767
114,215
140,982
-
-
-
140,982
15,509
156,491
Restricted
funds
£
-
1,531
1,531
-
-
-
1,531
13,978
15,509
-
15,509		 Total
2021
£
54,104
237,344
291,448
(116,236)
(3,869)
(120,105)
171,343
94,147
265,490
Total
2020
£
47,698
131,929
179,627
(162,082)
(3,869)
(165,951)
13,676
-
13,676
80,471
94,147

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 12.

Page 7

GRACE CHURCH HALEWOOD

(Registration number: 1153995) Balance Sheet as at 31 March 2021

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: Amounts falling due within one year
Net current assets
Net assets
Funds of the charity:
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
12		 2021
£
7,113
28,478
230,715
259,193
(816)
258,377
265,490
156,491
108,999
265,490		 2020
£
10,982
2,380
81,601
83,981
(816)
83,165
94,147
15,509
78,638
94,147

The financial statements on pages 7 to 15 were approved by the trustees, and authorised for issue on 10 January 2022 and signed on their behalf by:

......................................... Mr Jamie Robert Sparkes Trustee

Page 8

GRACE CHURCH HALEWOOD

Notes to the Financial Statements for the Year Ended 31 March 2021

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

GRACE CHURCH HALEWOOD meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Page 9

GRACE CHURCH HALEWOOD

Notes to the Financial Statements for the Year Ended 31 March 2021

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £2,000.00 or more are initially recorded at cost.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Equipment and Furniture 20% straight line basis

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Page 10

GRACE CHURCH HALEWOOD

Notes to the Financial Statements for the Year Ended 31 March 2021

2 Income from donations and legacies

Donations and legacies;
Donations from individuals
Gift aid reclaimed
3
Income from charitable activities		 Unrestricted
funds
General
£
-
27,337
27,337
Unrestricted
funds
General
£
123,129		 Restricted
funds
£
-
26,767
26,767
Restricted
funds
£
114,215		 Total
2021
£
-
54,104
54,104
Total
2021
£
237,344		 Total
2020
£
18,349
29,349
47,698
Total
2020
£
131,929

4 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries		 2021
£
74,964		 2020
£
79,443

No employee received emoluments of more than £60,000 during the year

5 Expenditure on raising funds

a) Investment management costs

Note
Allocated support costs
7		 Unrestricted
funds
General
£
41,272
41,272		 Total
2021
£
41,272
41,272		 Total
2020
£
82,639
82,639

Page 11

GRACE CHURCH HALEWOOD

Notes to the Financial Statements for the Year Ended 31 March 2021

6 Other expenditure

Depreciation, amortisation and other similar costs Unrestricted
funds
General
£
3,869
3,869		 Total
2021
£
3,869
3,869		 Total
2020
£
3,869
3,869

7 Analysis of support costs

Support costs allocated to charitable activities

Support costs allocated to charitable activities
Premises/Video conferencing
Mission
Caring
Training, Children & Youth work
New congregation setup
Outreach
Weekend away
Support ministries
Accountancy		 Administration
costs
£
6,056
16,614
10,757
4,099
-
377
-
1,932
1,437
41,272		 Total
2021
£
6,056
16,614
10,757
4,099
-
377
-
1,932
1,437
41,272		 Total
2020
£
24,038
16,177
2,936
10,374
5,064
5,447
14,580
2,436
1,587
82,639

8 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

9 Taxation

The charity is a registered charity and is therefore exempt from taxation.

Page 12

GRACE CHURCH HALEWOOD

Notes to the Financial Statements for the Year Ended 31 March 2021

10 Tangible fixed assets

Cost
At 1 April 2020
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
11 Debtors
Other debtors
12 Funds
Unrestricted funds
General
General
Designated
Footprint
Total unrestricted funds
Restricted funds
Footprint
Total funds		 Balance at 1
April 2020
£
53,638
25,000
78,638
15,509
94,147		 Incoming
resources
£
150,466
-
150,466
140,982
291,448		 Furniture and
equipment
£
Total
£
44,461
44,461
44,461
44,461
33,479
33,479
3,869
3,869
37,348
37,348
7,113
7,113
10,982
10,982
2021
£
2020
£
28,478
2,380
Resources
expended
£
Balance at 31
March 2021
£
(120,105)
83,999
-
25,000
(120,105)
108,999
-
156,491
(120,105)
265,490		 Furniture and
equipment
£
Total
£
44,461
44,461
44,461
44,461
33,479
33,479
3,869
3,869
37,348
37,348
7,113
7,113
10,982
10,982
2021
£
2020
£
28,478
2,380
Resources
expended
£
Balance at 31
March 2021
£
(120,105)
83,999
-
25,000
(120,105)
108,999
-
156,491
(120,105)
265,490		 Total
£
44,461
44,461
33,479
3,869
37,348
7,113
10,982
2020
£
2,380
44,461
33,479
3,869
37,348
7,113
10,982
2021
£
28,478
Resources
expended
£
(120,105)
-
(120,105)
-
(120,105)
Balance at 31
March 2021
£
83,999
25,000
108,999
156,491
265,490

Page 13

GRACE CHURCH HALEWOOD

Notes to the Financial Statements for the Year Ended 31 March 2021

Balance at
Balance at 1 Incoming Resources 31 March
April 2019 resources expended Transfers 2020
£ £ £ £ £
Unrestricted funds
General
General 41,493 178,096 (165,951) - 53,638
Designated
Footprint 38,978 - - (13,978) 25,000
Total unrestricted funds 80,471 178,096 (165,951) (13,978) 78,638
Restricted funds
Footprint - 1,531 - 13,978 15,509
Total funds 80,471 179,627 (165,951) - 94,147
13 Analysis of net assets between funds
Unrestricted funds
Restricted
General Designated funds Total funds
£ £ £ £
Tangible fixed assets 7,113 - - 7,113
Current assets 77,702 25,000 156,491 259,193
Current liabilities (816) - - (816)
Total net assets 83,999 25,000 156,491 265,490
Unrestricted funds
Total funds at
Restricted 31 March
General Designated funds 2020
£ £ £ £
Tangible fixed assets 10,982 - - 10,982
Current assets 43,472 25,000 15,509 83,981
Current liabilities (816) - - (816)
Total net assets 53,638 25,000 15,509 94,147

Page 14

GRACE CHURCH HALEWOOD

Notes to the Financial Statements for the Year Ended 31 March 2021

14 Analysis of net funds

14 Analysis of net funds
At 1 April 2020
£
Cash at bank and in hand
81,601
Net funds
81,601
At 1 April 2019
£
Cash at bank and in hand
57,621
Net funds
57,621		 Cash flow
£
149,114
149,114
Cash flow
£
23,980
23,980		 At 31 March
2021
£
230,715
230,715
At 31 March
2020
£
81,601
81,601

Page 15