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2021-12-31-accounts

Charity registration number 01156053

Company registration number 08811198 (England and Wales)

NORTHWOOD CHAPEL

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

NORTHWOOD CHAPEL

LEGAL AND ADMINISTRATIVE INFORMATION

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||| |---|---| |Trustees|Mr A P Kellard| |Mr G A Peel| |Rev P D Roberts| |Secretary|Mr A P Kellard| |Charity number|01156053| |Company number|08811198| |Principal address|Northwood Chapel| |Bigdale Drive| |Northwood| |Kirkby| |Merseyside| |L33 6XG| |Registered office|Northwood Chapel| |Bigdale Drive| |Northwood| |Kirkby| |Merseyside| |L33 6XG| |Independent examiner|Jean Ellis BA FCA CTA| |DSG| |Castle Chambers| |43 Castle Street| |Liverpool| |L2 9TL|

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NORTHWOOD CHAPEL

CONTENTS

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||| |---|---| |Page| |Trustees report|1 - 3| |Independent examiner's report|4| |Statement of financial activities|5| |Balance sheet|6| |Notes to the financial statements|7 - 12|

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NORTHWOOD CHAPEL

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 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 Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The charity aims to present the Christian message of the Gospel of Jesus Christ as written in the Holy Scriptures, to men, women and children, in particular, but not limited to, those who live in Kirkby. These aims are met by reaching out to those in need, whatever those needs might be.

Our aim has been to minister to those who are in need spiritually and physically, through the preaching of God’s Word and supply of food when possible. During 2021 we were able to restart the meetings previously held through Zoom, and our services are still broadcast for all who wish to keep up with what is happening at Northwood.

The Charity was able to hold once again a Mission week in August due to the relaxation of Covid 19 Pandemic rules, however this weekly event was held conscious of the continuous needs brought about Covid 19, and was well received by the people of Kirkby and others who attended the events during the week. Also during this time the people of Kirkby were able to continue to access the Kirkby Foodbank, which is run by the charity for the local populace.

The Trustees have paid due regard to guidance issued by the Charities Commission in deciding what activities the charity should undertake.

Volunteers

The charity makes use of volunteers during the course of the year in many of its activities. These duties may include, and this list is not exhaustive – Assisting in the preparation of food, serving members of the public, helping with youth work, delivering tinned food etc. Most volunteers come from local churches in the Merseyside area, but some come from further afield.

Achievements and performance

In the last year there has been much activity with various church based activities, which have been accessed by certain areas of the community.

During the year a youth work has run on a Tuesday evening, and this has attracted a number of new children from the local populace, both primary school and high school ages. They have enjoyed games, singing, Bible teaching and craftwork. This had been curtailed somewhat by the Covid 19 Pandemic, but the meetings were able to resume during the year as Covid 19 measures were relaxed. As stated earlier, the charity also carried out the evangelistic mission in the centre of Kirkby as Covid 19 measures and rules were relaxed.

All of the activities during the year have been supported by church members and volunteers from other areas. The church also organizes a LAMB,s group, which is for Ladies and Mums with Babies. This group is primarily for ladies in the community, some who may have small children. This was well attended during the latter part of the year as meetings were restarted. The Charity were able, throughout the Pandemic, to continue with the Food Bank. For those who were unable to come out of their homes for whatever reason, deliveries were made to help and support those in need. Once the Covid 19 rules were relaxed this enabled the charity to run it’s operation from the church premises once again. This has again been a vital work amongst the community, especially when so many found themselves in need of support because of loss of wages etc. We are grateful for those who have supported this work, financially and through the donation of tins etc. It has been a privilege to see Kirkby people supporting Kirkby people throughout this time of great need.

NORTHWOOD CHAPEL

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Financial review

The charity received incoming resources of £37,324 (2020: £52,910) and expended £44,501 (2020: £35,229), resulting in a deficit of £7,177 (2020: surplus of £17,681) in the period covered by the accounts. The balance sheet of the charity remains good with a net asset value of £21,497 (2020: £28,674).

Principle funding sources over the year have been from church offerings and private gifts.

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six months’ expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

No funds were materially in deficit during the period covered by these accounts.

The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for future periods

To continue to seek out and identify a building suitable for the expansion of work amongst the community.

To continue to engage with the people of Kirkby to seek out new avenues of need.

To continue to support the local citizens through a food bank operating from the church premises.

To plan and prepare for a week long mission in the centre of Kirkby, and to provide activities for the community during the five day long “Passion for Kirkby” event.

Structure, governance and management

The Charity is a company limited by guarantee.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mr A P Kellard Mr G A Peel Rev P D Roberts

New Trustees will always be appointed following nominations and voting by existing Trustees. They must possess a good balance of skills, and be of good character.

None of the Trustees has any beneficial interest in the Company. All of the Trustees are members of the Company and guarantee to contribute £1 in the event of a winding up.

New Trustees undergo a full induction process and receive copies of key and relevant documents from both the Charity Commission and Companies House, outlining the roles and responsibilities of the Charity Trustee.

The position of Church Pastor (Remunerated) is occupied by Mr G A Peel. This is a salaried position and was approved by the Charity Commission when the charity was established.

There were three Trustees at the end of the financial year. The Trustees are responsible for the finances of the charity and employment of all staff. The Church Pastor is responsible for overseeing the pastoral and spiritual life of the Charity.

NORTHWOOD CHAPEL

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees report was approved by the Board of Trustees.

Mr A P Kellard Trustee

29 August 2022

NORTHWOOD CHAPEL

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF NORTHWOOD CHAPEL

I report to the Trustees on my examination of the financial statements of Northwood Chapel (the Charity) for the year ended 31 December 2021.

Responsibilities and basis of report

As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the Charity 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 the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable 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 that in any material respect:

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 financial statements to be reached.

Jean Ellis BA FCA CTA DSG Castle Chambers 43 Castle Street Liverpool L2 9TL

Dated: 29 August 2022

NORTHWOOD CHAPEL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Restricted Restricted Total Unrestricted Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
Notes £ £ £ £ £ £
Income from:
Donations and legacies 2 15,698 21,624 37,322 17,686 35,219 52,905
Investments 3 2 - 2 5 - 5
Total income 15,700 21,624 37,324 17,691 35,219 52,910
Expenditure on:
Charitable activities 4 12,743 31,758 44,501 10,707 24,522 35,229
Net income/(expenditure) for
the year/
Net movement in funds 2,957 (10,134) (7,177) 6,984 10,697 17,681
Fund balances at 1 January
2021 17,977 10,697 28,674 10,993 - 10,993
Fund balances at 31
December 2021 20,934 563 21,497 17,977 10,697 28,674

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

NORTHWOOD CHAPEL

BALANCE SHEET

AS AT 31 DECEMBER 2021

2021 2020
Notes £ £ £ £
Current assets
Debtors 8 561 -
Cash at bank and in hand 21,860 29,593
22,421 29,593
Creditors: amounts falling due within
one year 9 (924) (919)
Net current assets 21,497 28,674
Income funds
Restricted funds 10 563 10,697
Unrestricted funds 20,934 17,977
21,497 28,674

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 29 August 2022

Mr A P Kellard Trustee

Company registration number 08811198

NORTHWOOD CHAPEL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Northwood Chapel is a private company limited by guarantee incorporated in England and Wales. The registered office is Northwood Chapel, Bigdale Drive, Northwood, Kirkby, Merseyside, L33 6XG.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006 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 Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

Income and expenses are included in the financial statements as they become receivable or due.

Expenses include VAT where applicable as the company cannot reclaim it.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

NORTHWOOD CHAPEL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.7 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 in the Charity's balance sheet 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

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 creditors and bank loans 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. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

NORTHWOOD CHAPEL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Donations and legacies

Donations and legacies
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Donations and gifts 12,476 21,624 34,100 14,205 35,219 49,424
Covid-19 Job Retention
Scheme Grant 3,222 - 3,222 3,481 - 3,481
15,698 21,624 37,322 17,686 35,219 52,905

3 Investments

Investments
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 2 5

NORTHWOOD CHAPEL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

4 Charitable activities

2021 2020
£ £
Staff costs 14,744 13,403
Passion for Kirby 7,633 960
Affiliation 3,000 3,000
Utilities 1,899 2,717
Missionary giving 900 900
Insurance 1,187 1,084
Speaker expenses 250 215
Books and CD's 652 127
Outreach/Evangelism 996 699
Easter gift 600 1,100
Consumables 212 108
Building and equipment costs 2,312 1,446
Foodbank 8,910 8,233
43,295 33,992
Share of governance costs (see note 5) 1,206 1,237
44,501 35,229
Analysis by fund
Unrestricted funds 12,743 10,707
Restricted funds 31,758 24,522
44,501 35,229
Support costs
Support
Governance		 2021 2020
costs costs
£ £ £ £
Legal and professional - 301 301 349
Independent examination fees - 905 905 888
- 1,206 1,206 1,237
Analysed between
Charitable activities - 1,206 1,206 1,237

5 Support costs

Governance costs includes payments to the independent examiner of £905 (2020: £888) for examination fees.

NORTHWOOD CHAPEL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

6 Trustees

Other than as noted below, none of the Trustees (or any persons connected with them) received any remuneration,expenses or benefits from the Charity during the year.

The position of Church Pastor (Remunerated) is occupied by Mr G A Peel, a Trustee of the charity. This is a salaried position and was approved by the Charity Commission when the charity was established. Salary and pension contributions of of £14,744 (2020: £13,403) were paid in the year.

7 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2021 2020
Number Number
Church pastor and support 1 1
Employment costs 2021 2020
£ £
Wages and salaries 14,514 13,205
Other pension costs 230 198
14,744 13,403

There were no employees whose annual remuneration was more than £60,000.

There were no employees whose annual remuneration was more than £60,000.
8
Debtors
2021 2020
Amounts falling due within one year: £ £
Prepayments and accrued income 561 -
9
Creditors: amounts falling due within one year
2021 2020
£ £
Accruals and deferred income 924 919

NORTHWOOD CHAPEL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Incoming Resources Balance at Incoming Resources Balance at
resources expended 1 January 2021 resources expended 31 December
2021
£ £ £ £ £ £
Donations 26,359 (17,863) 8,496 14,633 (23,129)
-
Evangelism 3,860 (1,659) 2,201 6,991 (8,629)
563
National Lottery Awards for
All 5,000 (5,000) - - - -
35,219 (24,522) 10,697 21,624 (31,758)
563

Donations - this represents gifts given towards the Pastor's salary, foodbank, books and CDs, and Easter gifts.

Evangelism - this represents gifts given towards Passion for Kirby and The Vine project.

National Lottery Awards for All - this represents a grant given towards the Kirkby Foodbank service.

11 Analysis of net assets between funds

Unrestricted
Restricted
Total		 Unrestricted
Restricted
Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Fund balances at 31
December 2021 are
represented by:
Current assets/(liabilities) 20,934 563 21,497 17,977 10,697 28,674
20,934 563 21,497 17,977 10,697 28,674

12 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2021 2020
£ £
Aggregate compensation 14,744 13,403