## **GRACE CHURCH MILTON KEYNES**
TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31[st] MARCH 2021
Charity number: 1107588
GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
## **Contents**
|1–6|Trustees’ Annual Report|
|---|---|
|7|Independent Examiner’s Report|
|8|Statement of Financial Activities|
|9|Balance Sheet|
|10–14|Notes to the Financial Statements|
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
The Trustees present their annual report and the financial statements of the church for the period ended 31[st] March 2021
## **REFERENCE AND ADMINISTRATIVE INFORMATION**
Registered charity name:
Grace Church Milton Keynes
Charity registration number: 1107588 Principal office: Church Office Office 5 11 Winchester Circle Kingston Milton Keynes MK10 0BA Governing Documents CIO Foundation Registered 01 May 2014 Trustees: James Alastair Davies (Chair) Timothy John Gannon Leisl Hunter Donna May Kapaya Jonathan Mark Kempster David Leslie Wyatt
Independent Examiner: Mervyn Thomas 128 Putnoe Lane Bedford, MK41 8LS Principal Bankers: CAF Bank Ltd. Solicitors: Roger Snowden
## **CHARITY STATUS**
The Church is a charitable incorporated organisation (CIO) registered in 2014 becoming operational in 2019 with funds transferred from the previously registered trust.
## **AIMS AND PURPOSE**
The CIO is established to:
- Advance the Christian Faith, the preaching and proclamation of the Christian gospel and the teaching of Christian doctrine and principles and the pastoral care of Christian people.
- Relieve people who are in conditions of need, financial hardship or who are aged or sick.
- • Advance education, both general and vocational, but always on the basis of Christian principles. The Church's policy remains that of pursuing those objectives in an unrestricted manner.
As a church we are seeking to live our lives the way God intended. Simply put, our vision is to:
Love God, Love People and Love Life.
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
Grace Church operates primarily but not exclusively in Milton Keynes, Buckinghamshire and employs one full-time pastor, one full-time evangelism and outreach worker and one part-time Administrator. The staff are supported by the Trustees (in their capacity as church leaders) and many volunteers who carry out pastoral work, communication of the gospel, work with children and young people, the elderly, those in need, finance, administration and other related activities. The Trustees meet on a quarterly basis.
## **REVIEW OF ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE**
The number of people attending Sunday services has fluctuated throughout the year due to the impact of the COVID-19 Pandemic. We have successfully maintained a balanced offering of services and support to our members and to the wider community in Milton Keynes despite requirements throughout the year to pause physical meetings and to deploy social distancing.
The Trustees and the Eldership team are committed to enabling as many people as possible to worship at Grace Church and to benefit from all its ministries and activities provided by the church. When planning our activities for the year, the Trustees and Eldership team have taken on board the Commission’s guidance on public benefit and, in particular, the guidance given on charities for the advancement of religion.
The church continues to be part of a family of churches, New Frontiers, and a specific ‘sphere’ known as ‘Catalyst’ to ensure best practice is followed in all areas of church life. We have maintained our links with ‘Woodside Church’ in Bedford for friendship, input and accountability.
There were no serious incidents to report in this reporting period. Some highlights from the year are given below.
## **April 2020**
COVID-19 Lockdown began and following Government announcements that we were unable to gather physically together for meetings we successfully pivoted to an online service, initially providing an email with video links to recorded service segments.
## **May 2020**
We developed our service offering through utilising an online church platform which enabled us to stream a recorded service while facilitating live text chat interactions between those attending the service.
We donated funds to support local charity MK Money Lifeline to support the setting up of a free signposting phone service for those in the area in need of support. We also donated funds to a Catalyst COVID-19 crisis fund to support churches in West Africa as well as others struggling with poverty exacerbated by the societal impact of COVID-19.
We created a dedicated ‘Hardship Fund’ with associated process and governance in order to support people in Grace Church and people in Milton Keynes of whom we became aware were in need of critical financial help.
Throughout this period, to support people’s spiritual, emotional and mental health and well-being, we created new online groups such as ‘Emotionally Healthy Spirituality’, games nights and Zoom drop-ins to guard against social isolation.
## **June 2020**
We started a new online prayer course in order to support people grow and develop in their prayer lives.
## **July 2020**
The Grace Church website (https://gracechurchmiltonkeynes.org/) was rebranded and relaunched to be an optimised, more effective resource.
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
Our part-time pastor, Jonathan Kempster, handed in his notice after a significant and greatly appreciated period of service.
## **September 2020**
We launched new ‘Life Groups’ as a means of practically supporting every church member as they live out their faith and a means of developing deeper community and embodying one of our core values of ‘Family’.
## **October 2020**
Jonathan Kempster’s employment with Grace Church came to an end.
## **December 2020**
We started a new online prayer course in order to support people grow and develop in their prayer lives
We successfully celebrated Christmas through a creative offering of online services, including our ‘Christmas Kindness Adventure’.
Through a Christmas offering, we donated funds to MK Money Lifeline, The Winter Night Shelter and City of Truth Church in Liberia.
## **January 2021**
We started two new online Alpha courses.
## **FINANCIAL REVIEW**
## **Income generation**
The church’s total income for the year was £112,820 (2020: £106,452) which was generated through the voluntary giving of church members. We also received £4,768 into a restricted hardship fund to help people in need.
## **Expenditures**
Total expenditures were £120,508 (2020: £119,769). We benefited from the generosity of our venue provider who declined to charge us rent during the period of Government restrictions in which we are unable to meet physically.
## **Funds**
Overall funds are £144,879 (2020: £143,701). However, the Trustees have designated £100,000 from the general fund to the Designated Future Building Fund in line with our reserves policy which follows. The designated fund is now £108,260 (2020 £8,260)
## **Reserves policy**
The church holds unrestricted and restricted funds. Transfers are made from unrestricted to restricted funds in order to prevent restricted funds from going into deficit. Our overall policy for unrestricted funds is only to increase reserves above a minimum threshold necessary to operate the organisation (not more than 3 months expenditure) or where specific projects are being planned for subsequent years.
## **TRUSTEES’ RESPONSIBILITIES**
The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain transactions and disclose with reasonable accuracy at any time the financial position of the trust and to
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
17/12/21
enable them to ensure that the financial statements conform to the charities SORP. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ON BEHALF OF THE TRUSTEES
James Davies as Chair on behalf of the Trustees
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF GRACE CHURCH**
on the accounts for the year to 31[st] March 2021 as set out on pages 8–14 in this document
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
## **Independent examiner's statement**
It is my responsibility to:
- examine the accounts under section 145 of the Charities Act,
- to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and to state whether particular matters have come to my attention.
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that in, any material respect, the requirements:
- 1) to keep accounting records in accordance with section 130 of the Charities Act; and to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met; or
- 2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Signed:
Mervyn Thomas 128 Putnoe Lane Bedford MK41 8LS
Dated: 26/05/2021
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
## **STATEMENT OF FINANCIAL ACTIVITIES**
For the accounting period 1st April 2020 to 31st March 2021
|**Notes**
**Incoming Resources**
3
Voluntary income
Government Grants
Charitable activities
**Total Incoming Resources**
**Resources Expended**
4
Raising funds
Charitable activities
Total Charitable Resources
Expended
**Net income/(expenditure)**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Total funds carried forward|**Unrestricted** **Restricted** **Designated** **Total Funds** **Total Funds**
**Funds**
**Fund**
**Funds**
**2021**
**2020**
**£**
**£**
**£**
**£**
**£**|
|---|---|
|||
||112,820
4,768
-
117,588
106,452|
||4,000
4,000
3,000|
||98
-
98
111|
||**116,918**
**4,768**
**-**
**121,686**
**109,563**|
|||
|||
||3,549
3,549
4,237
114,268
2,691
-
116,959
115,532|
||**117,817**
**2,691**
**-**
**120,508**
**119,769**|
|||
||**(899)**
**2,077**
**-**
**1,178**
**(10,206)**|
||(100,000)
100,000
-
-|
||**(100,899)**
**2,077**
**100,000**
**1,178**
**(10,206)**|
|||
|||
||133,156
2,285
8,260
143,701
153,907|
||32,257
4,362
108,260
144,879
**143,701**|
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
## **BALANCE SHEET**
## **At 31st March 2021**
||**Notes**|**Unrestricted**||**Restricted**||**Designated**|**Total Funds**|**Total Funds**|
|---|---|---|---|---|---|---|---|---|
|||**Funds**||**Fund**||**Funds**|**2021**|**2020**|
|||**£**||**£**||**£**|**£**|**£**|
|**Current assets**|||||||||
|Debtors (less than 1 year)|5|2,696|||||2,696|
1,646|
|Debtors (New Life Church)|||||||-|
6,807|
|Cash at bank and in hand||31,395||4,362||
108,260|144,017|
137,713|
|**Total current assets**||**34,091**||**4,362**||**108,260**|**146,713**|**137,713**|
|**Short Term Liabilities**|6|(1,834)||-||
-|(1,834)|(2,465)|
|**Total assets less liabilities**||**32,257**||**4,362**||**108,260**|**144,879**|**135,248**|
|**Charity Funds**|7||||||||
|Unrestricted funds||32,257|||||32,257|
135,141|
|Restricted Funds||||4,362|||4,362|
300|
|Endowment Fund||||||108,260|108,260|
8,260|
|Total funds||**32,257**||**4,362**||**108,260**|**144,879**|**143,701**|
## **Signed on behalf of the trustees:**
James Davies as Chair on behalf of the trustees
Dated: 10 June 2021
The notes on pages 10 to 14 form part of these financial statements.
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
## **NOTES TO THE FINANCIAL STATEMENTS**
## **1 BASIS OF PREPARATION**
## **1.1 Basis of accounting**
These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The accounts 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 and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
## **1.2 Going concern**
The Charity is a going concern. Income generation through members’ donations is maintaining adequate reserves and restrictive funds are adequate.
## **1.3 Change of accounting policy**
The accounts present a true and fair view and the accounting policies adopted are those outlined in note 2.
## **1.4 Changes to accounting estimates**
No changes to accounting estimates have occurred in the reporting period (3.46 FRS 102 SORP).
## **2. ACCOUNTING POLICIES**
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period.
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared under the historical cost convention with items recognized at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011.
## **2.2 Fund accounting**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the church. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal. Transfers are made from unrestricted to restricted funds as necessary to prevent restricted funds from going into deficit. Transfers are made from unrestricted to designated funds in accordance with the Churches strategy and reserves policy.
## **2.3 Incoming resources**
All incoming resources are included in the Statement of Financial Activities (SoFA) when the church becomes entitled to the income and it is more likely than not that it will receive the resources and the amount can be quantified with reasonable accuracy. Voluntary income is received by way of donations and gifts and is included in full in the SoFA when receivable. Grants are included in the SoFA when the general income recognition criteria above are met and in the case of performance-related grants income is recognized to the extent that the specified goods or services have been provided. Donated services and facilities are included at the value to the church where this can be measured reliably. The value of services provided by volunteers has not been included in these accounts. Investment income is included when received.
## **2.4 Resources expended**
Expenditure is recognized on an accrual basis as a liability is incurred. Expenditure includes any VAT that cannot be recovered, which is reported as part of the expenditure to which it relates.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the church (as a charitable company) and include the audit fees and costs linked to the church’s legal constitution.
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
## **2.6 Pension costs**
Employees of the church are entitled to join a defined contribution pension scheme. The church contribution is limited to the contributions disclosed in note 3.
## **2.7 Debtors**
Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.
## **2.8 Creditors**
Creditors (including accruals) are recognized when due at the balance sheet date.
## **3. ANALYSIS OF INCOME**
|**3. ANALYSIS OF INCOME**||||||
|---|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Designated**|**Total Funds**|**Total Funds**|
||**Funds**|**Funds**|**Fund**|**2021**|**2020**|
|**Voluntary Income**|**£**|**£**|**£**|**£**|**£**|
|Donations|95,629|
2,939|
-|
98,568|
88,111|
|Gift Aid|17,191|
-|
-|
17,191|
18,341|
|Salary Adjustment||1,829|
**-**|1,829|
**-**|
|**Total Voluntary Income**|**112,820**|**4,768**|**-**|**117,588**|**106,452**|
|**Activities for generating funds**||||||
|HMRC Employment Allowance|4,000|
-|
-|
4,000|
3,000|
|**Total Activities for generating**||||||
|**Funds**|**4,000**|**-**|**-**|**4,000**|**3,000**|
|**Charitable Activities**||||||
|Interest|98|
-||98|
**111**|
|**Grand Total Incoming**||||||
|**Resources**|**116,918**|**4,768**|**-**|**121,686**|**109,563**|
## **3. 1 ANALYSIS OF INCOME Accounting Change disclosure.**
The practice of offsetting income against expenditure accounts has been discontinued in 2021
## **4 ANALYSIS OF EXPENDITURE**
|Expenditure on raising funds|**Unrestricted**
**Funds**
**£**|**Restricted**
**Designated**
**Funds**
**Fund**
**£**
**£**|**Total Funds**
**2021**
**£**|**Total Funds**
**2020**
**£**|
|---|---|---|---|---|
||3,549||3,549|
4,327|
|Website and Publicity|||||
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
|**Total expenditure on raising**||||||
|---|---|---|---|---|---|
|**funds**|**3,549**|||**3,549**|**4,237**|
|**Expenditure on Charitable Activities**||||||
|Employee Salaries|65,675|||65,675|
69,726|
|Employer's National Insurance|7,881|||7,881|
6,108|
|Pension Contributions|6,527|||6,527||
|Salary Adjustment|1,829|||1,829||
|Expenses|-|||-|
886|
|Visiting Speakers|-|||-|
400|
|Training and Discipleship|190|||190|
939|
|**Total Staff Costs**|**82,102**|**-**|**-**|**82,102**|**78,059**|
|Venue Hire|-|||-|
14,041|
|Meeting Expenses|642|||642|
639|
|Music License|743|||743|
661|
|Office|4,880|||4,880|
4,167|
|Office Services and Supplies|922|||922|
1,612|
|Safeguarding|162|||162|
136|
|Legal and professional|585|||585|
650|
|Equipment|1,381|||1,381|
684|
|**Total Establishment Costs**|9,315|
**-**|**-**|**9,315**|**22,590**|
|Children|-|||-|
250|
|Youth|-|||-|
1,237|
|Evangelism|1,463|
240||1,703|
2,042|
|Meeting Expenses|868|||868|
3,179|
|Resources|164|||164|
80|
|Hardship Support|1,577|
292||1,869|
29|
|Debt Advice|9,999|||9,999|
5,602|
|**Total Ministry Costs**|**14,071**|**532**||**14,603**|**12,419**|
|International|-|
789|
-|
789||
|To other charities|8,780|
1,370||10,150|
2,464|
|**Total Donations**|**8,780**|**2,159**|**-**|**10,939**|**2,464**|
|**TOTAL EXPENDITURE**|**117,817**|**2,691**|**-**|**120,508**|**119,769**|
## **4.1 Staff**
The number of paid employees is 3 (Previous year 4)
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
**Disclosures**
## **4.2**
## **Trustees**
Mr T Gannon, a Trustee, receives remuneration as Pastor of the Church including pension. His salary is set by a remuneration committee composed of unremunerated trustees.
.
No other trustee or persons related to trustees are employed.
No trustee has received expenses in connection with trustee-related matters.
|**5 DEBTORS AND PREPAYMENTS**|**5 DEBTORS AND PREPAYMENTS**|
|---|---|
||**2021**
**2020**|
||**£**
**£**|
|Prepayments re Newday|2,696
1,646|
|||
|||
|**6 CREDITORS AND ACCRUALS**||
|Short term creditors and accruals|**2020**
**2019**|
||**£**
**£**|
||1,834
2,465|
|||
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GRACE CHURCH MILTON KEYNES TRUSTEES REPORT and FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31[st] MARCH 2021
## **7. CHARITY FUNDS**
**Details of All Funds with movements during the reporting period 2020-2021**
||**Brought**
**Carried**|
|---|---|
||**Forward**
**Income**
**Expenditure**
**Transfers**
**Forward**|
|**Unrestricted General Fund**|**135,141**
117,418
(116,240)
(100,000)
**36,319**|
||**-**|
|**Restricted Funds**||
|Hardship Fund|1,829
(1,829)
**-**|
||-
240
(240)
**-**|
|Evangelism||
|Christmas Offering|-
1,097
(1,097)
**-**|
||789
(789)
**-**|
|Foreign Mission||
||300
313
(313)
**300**|
|Other Charities||
|**Total Restricted Funds**|300
4,268
(4,268)
-
300|
||8,260
-
-
100,000
**108,260**|
|**Designated Fund**||
|**Total Funds**|**143,701**
**121,686**
**(120,508)**
**-**
**144,879**|
|||
|||
## **7.1 Fund Transfers**
**Amount From To Comment** £100,000 Unrestricted Designated Building Fund
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