## **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022**
## **THE EXCHANGE CHURCH, AYLESBURY**
**(A COMPANY LIMITED BY GUARANTEE)**
**REGISTERED CHARITY No. 1157119**
**REGISTERED COMPANY No: 08765846**
Castle View Accounting Ltd New Barn Mudberry Lane Bosham Chichester West Sussex PO18 8TS
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## **THE EXCHANGE CHURCH, AYLESBURY**
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(A COMPANY LIMITED BY GUARANTEE)
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CONTENTS
Page 3 Legal and Administrative Information
Page 4 to 6 Report of the Directors'
Page 7 Statement of Financial Activities
Page 8 Balance Sheet
Pages 9 to 14 Notes to the Financial Statements
Page 15 Independent Examiner's Report
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## **THE EXCHANGE CHURCH, AYLESBURY**
**(A COMPANY LIMITED BY GUARANTEE)**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**CHARITY NUMBER** 1157119 **COMPANY REGISTRATION NUMBER** 08765846 **DATE OF INCORPORATION** 7th November 2013 **START OF FINANCIAL YEAR** 1st September 2021 **END OF FINANCIAL YEAR** 31st August 2022 **DIRECTORS AT 31ST AUGUST 2022** Sharon Clark Timothy Speakman Trevor John Bennett Pyniarlang Shabong Jacqueline Fiona Annan
## **GOVERNING DOCUMENT**
Memorandum and Articles of Association Incorporated 7th November 2013 as Amended by Special Resolution Dated 11th April 2014.
## **OBJECTS**
The Trust is established to: **(a)** to advance Christianity, in accordance with the provisions of the basis of Faith of the Evangelical Alliance, in the county of Buckinghamshire and elsewhere; **(b)** to relieve people who are in charitable need; **(c)** to advance education (including vocational training); **(d)** to promote such other charitable objects as the trustees shall from time to time determine.
## **CORRESPONDENT ADDRESS**
Flat 4 Chiltern House Oxford Road Aylesbury Bucks HP19 8FQ
**PRIMARY BANKERS** CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Mailing Kent ME19 4JQ **SOLICITORS** Rutter & Rutter Solicitors St Audrey's Wincanton Somerset BA9 9DR **INDEPENDENT EXAMINERS** Castle View Accounting Ltd New Barn Mudberry Lane Bosham Chichester West Sussex PO18 8TS
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## **THE EXCHANGE CHURCH, AYLESBURY**
## **(A COMPANY LIMITED BY GUARANTEE)**
## **REPORT OF THE DIRECTORS' FOR THE YEAR ENDED 31ST AUGUST 2022**
The trustees, who are also directors for the purposes of company law, have pleasure in presenting their report and the financial statements of the charity for the year ended 31st August 2022.
## **Structure, Governance and Management**
The Charity was registered as a Company limited by guarantee on 7 November 2013 with a Memorandum and Articles of Association and as a Charity on 20 May 2014.
Pyniarlang Shabong, Jacqueline Fiona Annan, Trevor John Bennett, Sharon Clark and Tim Speakman have served as trustees throughout the year.
The trustees meet three times a year.
The Trust Deed authorises the Trustees to make and hold investments using the general funds of the charity. No such investments are presently held.
A child protection coordinator and a deputy child protection coordinator / child protection administrator ensure all necessary staff and volunteers are police checked. The charity is committed to delivering good practice in all regulated areas, such as Health & Safety, Child Protection, etc.
Day-to-day operation of the charity is carried out by employees and volunteer team leaders.
## **Objectives and Activities**
The trust is established to benefit the public by:
· advancing Christianity in accordance with the provisions of the basis of faith of the Evangelical Alliance.
· relieving people who are in charitable need, because of sickness or poor health, age, financial hardship or some other reason.
· advancing education (including vocational training).
- promoting such other charitable objects as the trustees shall from time to time determine.
## **Public Benefit Statement**
The charity trustees have exercised their powers with due regard to the guidance on public benefit published by the Charity Commission to promote the charity’s Objectives through our main activities, which are described below. All our charitable activities focus on the four purposes outlined above.
## **Achievements and Performance**
## **1. Overall Progress and Growth**
Church attendance has remained stable during the year. The church continued to work with the local community including providing a foodbank in the local community centre. Our own community events at Christmas saw further growth in numbers of families from the local community attending.
## _**1.1 Sunday Services**_
The church meets together each Sunday morning to worship, listen to a talk on a Bible-based subject, build friendships and to share the good news of Jesus. We have been meeting at Aston Clinton Community Centre alongside Zoom. The numbers of regular attendees as at 31 August 2021 was approx. 25 adults and 9 children and young people.
## _**1.2 Prayer Meetings**_
We hold monthly Wednesday night prayer meetings, at which the average attendance has been around 5 adults during the course of the year.
## _**1.3 Outreach**_
In conjunction with Aylesbury Foodbank ran a Foodbank in Buckingham Park, which was started in September 2019.
## **2. Working with the Local Community**
We were able to give our normal support to the Buckingham Park Church of England Primary School Christmas fayre.
4
**THE EXCHANGE CHURCH, AYLESBURY (A COMPANY LIMITED BY GUARANTEE)**
## **REPORT OF THE DIRECTORS' (Continued) FOR THE YEAR ENDED 31ST AUGUST 2022**
## **3. Working with Other Churches**
## _**3.1 Catalyst Network of Churches**_
We continue to build friendships with a number of churches in this relational network. In particular, we are receiving help from a local Catalyst church New Life Church Milton Keynes, in terms of preaching support on a Sunday and regular meetings with the senior leader Richard Wightman. Sharon Clark who is employed by New Life Church Milton Keynes is a trustee. We are also part of the regional Hub based in Bedford run by Kings Arms Church.
This year we gave a grant of £2,500 to the Catalyst network to help fund their work in the UK and Overseas. We provide a oneoff donation of £1,000 to the Catalyst Network Ukraine Emergency appeal. We also gave £500 to Kings Arms Church in Bedford and £600 to New Life Church, Milton Keynes to contribute to the costs of running Hubs which supports churches and leaders that relate to them.
## _**3.2 Aylesbury Church Network (ACN)**_
We continue to build relationships with other churches in Aylesbury, attending events and meetings for local leaders.
## _**3.3 Evangelical Alliance**_
The charity has been a member of the Evangelical Alliance since August 2016 (Membership No 239984).
## **4. Working Overseas**
## _**4.1 Greece**_
We helped support missionary work in Greece by the church's former leaders with a donation of £600. This is continuing at a rate of £100 per month.
## **5. Discipleship and Pastoral Care**
## _**5.1 Community Groups**_
Our weekly daytime and evening discipleship groups, have been able to take place in person following the lifting of covid 19 restrictions.
## _**5.2 Youth**_
We have a group of 11–18-year-olds that met the first 2 Sundays of each month. We have been able to use a separate hall adjacent to the main church meeting place to facilitate this.
## _**5.3 Children**_
We have one children’s group on a Sunday for 5–10-year-olds. These activities have been provided on a limited basis due to a lack of facilities. However, we have been able to secure the same hall as used by the youth group for the 3rd and 4th Sundays of the month starting from September 2022.
## **Financial Review**
The charity is financially dependent on the voluntary support of the general public making donations. Total voluntary income receipts for the year, including Gift Aid receivable and miscellaneous income, amounted to £52,395 (2020-21 £58,205). The church’s total expenditure was £44,987 (2020-21 £43,002) The financial position of the church at 31 August 2022 is very healthy having reserves of £86,365.
Management and administration costs relate to staff costs, office supplies, photocopying, insurance, and professional fees. Trustee indemnity insurance is in place.
The trustees approve an annual budget and give regular attention to financial results, variance from budgets and non-financial indicators.
As required by government, the church set up an occupational pension scheme for employees through The Peoples Pension in August 2017.
During the year, the church had two part-time employees (one senior leader and one graphics/ admin support worker).
The average number of staff during the year was 2 and the total remuneration for 12 months came to £26,571.
The cost of the end of year independent examination was £600.
5
Timothy Speakman
## **THE EXCHANGE CHURCH, AYLESBURY (A COMPANY LIMITED BY GUARANTEE)**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST AUGUST 2022**
## **(Incorporating Income & Expenditure Account)**
|**Notes**
**INCOMING RESOURCES**
**Income Resources from Generated Funds**
Donations & Legacies
**3a**
Investment Income
**3b**
**TOTAL INCOMING RESOURCES**
**RESOURCES EXPENDED**
**Cost of Generating Funds**
Cost of Charitable Activities
**4a**
Governance Costs
**4b**
**TOTAL RESOURCES USED**
**NET INCOMING/(OUTGOING) RESOURCES**
Balance Brought Forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
Designated
Restricted
**TOTAL**
**TOTAL**
Funds
Funds
Funds
**2021/22**
**2020/21**
£
£
£
£
£
52,342
-
-
52,342
58,198
53
-
-
53
7
**52,395**
**-**
**-**
**52,395**
**58,205**
43,678
-
-
43,678
42,058
1,309
-
-
1,309
945
**44,987**
**-**
**-**
**44,987**
**43,003**
**7,408**
**-**
**-**
**7,408**
**15,202**
78,957
-
-
78,957
63,755
**86,365**
**-**
**-**
**86,365**
**78,957**|
|---|---|
Movements on all reserves and all recognised gains and losses are shown above. All of the charity's operations are classed as continuing.
The notes on pages 9 to 14 form part of these financial statements.
7
Timothy Speakman
**THE EXCHANGE CHURCH, AYLESBURY (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2022**
## **Basis of Preparation & Assessment of Going Concern**
## **Basis of Preparation**
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP - FRS102) and the Charities Act 2011.
The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.
## **Assessment of Going Concern**
Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.
## **Incoming Resources**
## _**Recognition of Incoming Resources**_
These are included in the Statement of Financial Activities (SOFA) when:
▪ the charity becomes entitled to the resources;
▪ the trustees are virtually certain they will receive the resources; and
▪ the monetary value can be measured with sufficient reliability
## _**Incoming Resources with Related Expenditure**_
Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resource and related expenditure are reported gross in the SOFA.
## _**Grants and Donations**_
Grants and Donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
## _**Tax Reclaims on Donations and Gifts**_
Incoming resources from tax reclaims are included in the SOFA at the same time as the gift to which they relate.
## _**Contractual Income and Performance Related Grants**_
This is only included in the SOFA once the related goods or services has been delivered.
## _**Gifts in Kind**_
Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SOFA as incoming resources when receivable.
## _**Donated Services and Facilities**_
These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received.
## _**Volunteer Help**_
The value of any voluntary help received is not included in the accounts but is described in the trustees' annual report.
## _**Investment Income**_
This is included in the accounts when receivable.
## _**Investment Gains and Losses**_
This included any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.
9
**THE EXCHANGE CHURCH, AYLESBURY (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST AUGUST 2022**
## **1. ACCOUNTING POLICIES (Continued)**
## **Expenditure and Liabilities**
## _**Liability Recognition**_
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
## _**Governance Costs**_
Include costs of the preparation and examination of statutory accounts, the costs of the trustees' meetings and cost of any legal advice to trustees on governance or constitutional matters.
## _**Grants with Performance Conditions**_
Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specified service or output.
## _**Grants Payable without Performance Conditions**_
These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to a grant which remain in control of the charity.
## _**Support Costs**_
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of the resources, eg allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## _**Pensions**_
The Charity operates a define contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the financial period. Pension contributions are charged to the Statement of Financial Activities as they become payable.
## _**Taxation**_
The charity is exempt from tax on its charitable activities.
## _**Legal Status of the Charity**_
The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
## _**Fixed Tangible Assets**_
Tangible fixed assets for use by the charity, these are capitalised if they can be used for more than one year, and cost at least £1,500. They are valued at cost or, if gifted, at the value to the charity on receipt.
## _**Investments**_
Investments quoted on a recognised stock exchange are valued at market value at the year end. Other investment assets are included at trustees' best estimate of market value.
There has been no change to the accounting policies (valuation rules and methods of accounting) since last year.
## _**Depreciation Expense**_
Depreciation is calculated at a rate to write off the cost of tangible fixed assets on a reducing balance basis over their estimated useful lives. The rates applied per annum are as follows:
Fixtures and Fittings 25%
## **2. TANGIBLE FIXED ASSETS**
The Charity held no fixed assets investments during this or the previous financial period.
There are no annual commitments under non-cancelling operating leases and no capital commitments. (2020/21:None)
10
## **THE EXCHANGE CHURCH, AYLESBURY (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST AUGUST 2022**
## **3. INCOMING RESOURCES**
|**Notes**
**a) Donations & Legacies**
Gifts & Donations
Gift Aid Tax Recoverable
**b) Investment Income**
Interest
**4. RESOURCES EXPENDED**
**Note**
**a) Costs of Charitable Activities**
Advertising & Publicity
Books & Publications
Catering Costs
Children's Work
Community Events
Gifts & Donations
Insurance Costs
Office Costs
PA Music
Rent & Rates
Small Groups
Staff Costs
**13**
Training Costs
Travel & Subsistence
**b) Governance Costs**
Independent Examiners Fee
**9**
Legal & Professional Fees|Unrestricted
Designated
Restricted
**TOTAL**
**TOTAL**
Funds
Funds
Funds
**2021/22**
**2020/21**
£
£
£
£
£
42,380
-
-
42,380
48,003
9,962
-
-
9,962
10,195
**52,342**
**-**
**-**
**52,342**
**58,198**
53
-
-
53
7
**53**
**-**
**-**
**53**
**7**
Unrestricted
Designated
Restricted
**TOTAL**
**TOTAL**
Funds
Funds
Funds
**2020/21**
**2020/21**
£
£
£
£
£
330
-
-
330
195
38
-
-
38
139
1,438
-
-
1,438
-
465
-
-
465
484
886
-
-
886
137
7,000
-
-
7,000
12,908
474
-
-
474
453
398
-
-
398
230
1,148
-
-
1,148
567
3,300
-
-
3,300
600
92
-
-
92
188
26,571
-
-
26,571
25,804
410
-
-
410
90
1,128
-
-
1,128
263
**43,678**
**-**
**-**
**43,678**
**42,058**
600
-
-
600
575
709
-
-
709
370
**1,309**
**-**
**-**
**1,309**
**945**|
|---|---|
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## **THE EXCHANGE CHURCH, AYLESBURY (A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST AUGUST 2022**
## **5. RESTRICTED FUNDS**
The Charity held no restricted funds during this or the previous financial period.
## **6. DESIGNATED FUNDS**
The Charity held no designated fund during this or the previous financial year.
## **7. DEBTORS AND PREPAYMENTS**
|Gift Aid Tax Recoverable
**8. CASH AT BANK AND IN HAND**
Cash at Bank and in Hand
**9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Independent Examiners Fee|Unrestricted
Restricted
**Total**
**Total**
Funds
Funds
**31-Aug-22**
**31-Aug-21**
£
£
£
£
2,132
-
2,132
2,288
**2,132**
**-**
**2,132**
**2,288**
Unrestricted
Restricted
**Total**
**Total**
Funds
Funds
**31-Aug-22**
**31-Aug-21**
£
£
£
£
84,833
-
84,833
77,219
**84,833**
**-**
**84,833**
**77,219**
Unrestricted
Restricted
**Total**
**Total**
Funds
Funds
**31-Aug-22**
**31-Aug-21**
£
£
£
£
600
-
600
550
**600**
**-**
**600**
**550**|
|---|---|
## **10. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR**
The Charity held no long term liabilities during this or the previous financial year.
## **11. NET ASSETS BETWEEN FUNDS**
|Fixed Asset Investments
Net Current Assets
Long Term Liabilities|Unrestricted
Restricted
**Total**
**Total**
Funds
Funds
**31-Aug-22**
**31-Aug-21**
£
£
£
£
-
-
-
-
86,365
-
86,365
78,957
-
-
-
-
**86,365**
**-**
**86,365**
**78,957**|
|---|---|
12
## **THE EXCHANGE CHURCH, AYLESBURY**
**(A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST AUGUST 2022**
## **12. RECONCILIATION OF MOVEMENT ON CAPITAL AND RESERVES**
The Company is Limited by Guarantee and is a Charity registered with the Charity Commission number 1157119 and is not, therefore, subject to Corporation Tax and does not have a Share capital.
|Profit / Deficit for the financial year
Other Recognised Gains
Balances Brought Forward
Closing Funds at 31st August 2022
**13. STAFF COSTS AND NUMBERS**
Gross Wages and Salaries
Employer's National Insurance Costs
Pension Contributions
Employees who were engaged in each of the following activities:
Activities in furtherance of organisation's objects|**TOTAL**
**2021/22**
**£**
7,408
-
**7,408**
78,957
**86,365**
**TOTAL**
**2021/22**
**£**
23,344
1,668
1,559
**26,571**
**TOTAL**
**2021/22**
2|**TOTAL**
**2020/21**
**£**
15,202
-
**15,202**
63,755
**78,957**
**TOTAL**
**2020/21**
**£**
22,511
1,775
1,518
**25,804**
**TOTAL**
**2020/21**
2|
|---|---|---|
The Charity operates a PAYE scheme to pay all members of employed staff. The Charity also employs self employed staff and no employees received emoluments in excess of £60,000. (2020/21:None)
13
## **THE EXCHANGE CHURCH, AYLESBURY**
## **(A COMPANY LIMITED BY GUARANTEE)**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31ST AUGUST 2022**
## **14. PAYMENTS TO DIRECTORS AND RELATED PARTIES**
During the financial year Director Pyniarlang Shabong received £22,483 (2020/21:£21,612) in salary related payments and £1,559 (2020/21:£1,518) in Pension contributions in furtherance of the Charity's objects.
During the financial year The Exchange Church, Aylesbury made charitable donations of £600 (2020/21:£250) to New Life Church Milton Keynes (Registered Charity Number 1119167) in furtherance of the Charity's object. Director Mrs Sharon Clark is also a Trustee of New Life Church Milton Keynes and all conflicts of interest have been identified, documented and managed accordingly.
No other payments were made to directors or any persons connected with them during this financial period. No other material transaction took place between the charity and a director or any person connected with them.
## **15. RISK ASSESSMENT**
The Directors actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The Directors have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.
## **16. RESERVES POLICY**
The Directors have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The Directors aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The directors will endeavour not to set aside funds unnecessarily.
## **17. PUBLIC BENEFIT**
The Charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.
14
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