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2021-08-31-accounts

ENCOUNTER TRUST WINCHCOMBE Accounts- 31st August 2021

ENCOUNTER TRUST WINCHCOMBE

Charity number: 1157308

Accounts – 31st August 2021

INDEX

ENCOUNTER TRUST WINCHCOMBE

REPORT OF THE TRUSTEES for the year ended 31st August 2021

The Trustees are pleased to present their annual report and financial statements of the charity for the year ended 31st August 2021.

The Financial Statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and complies with the Charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (Second Edition) and Financial Reporting Standard FRS102.

Reference and Administration Details

The charity’s name is Encounter Trust Winchcombe.

Charity Registration Number: 1157308

Principal and Registered Office: Gretton Road, Winchcombe, Cheltenham, Glos GL54 5EE

Trustees

The Trustees and officers who served during the year and since the year end were as follows:

Mr A C Magee Mrs B Coupe Mr M Bailey Mr M Dickie Mr A Lee Mr M Hayes

Objectives and Activities

The main objects of the charity are:

The main activity of the charity is to advance the Christian faith through the running of a church and related activities and to support mission and those in need or distress.

In planning the activities of the charitable company the trustees have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.

The charity’s activities to advance the Christian faith and support mission and those in need or distress are available to people in the Winchcombe area and elsewhere.

Achievements and Performance

1. Introduction

This past year has been unlike any year we have ever experienced before with the challenge of Covid-19 and a global pandemic. This has been true at a national level, for the wider church, as well as us as a local church based in Winchcombe. Despite the challenges of this past year we have cause to be grateful on multiple fronts. Since the end of the last lockdown we have begun to see a gradual return to what we would now call the ‘New Normal.’

ENCOUNTER TRUST WINCHCOMBE

REPORT OF THE TRUSTEES

for the year ended 31st August 2021 ( Continued)

Achievements and Performance (continued)

1. Introduction (continued)

What could have been crippling for us has proved to be a season of expansion and growth. As we have done in the previous two years, we have continued to see growth and fruitfulness at Encounter. Through this whole year, there has been an ongoing sense of focus and direction as we have given ourselves to our mission and vision. This has been supported by all those who are Trustees, on the Leadership Team, Staff, volunteers and wider church family.

This year we have continued to shift and pivot significantly, as we have given ourselves to helping people ‘Find and Follow Jesus.’ A year where our ability to be agile and flexible has continued to develop, as we have discovered new ways of serving those in the church family, as well as the immediate and wider communities that we represent.

2. Mission, Vision & Strategy

Our vision continues to combine our charitable objects, based on our Christian faith, the requirements of a growing and vibrant local church, and our desire to serve those around us in the community and beyond in the wider region. Wherever possible we seek to work in collaboration with other agencies in serving those who are vulnerable and in need as we collectively use the resources we have to make a difference in the lives of others.

Charitable Aims & Activities

To advance the Christian Faith through the running of a church and related activities in Winchcombe and the surrounding region. To support mission and those in need or distress.

Vision, Missions Beliefs and Values

At Encounter we believe that vision, mission, beliefs and values go hand in hand. Our vision and mission determine the direction and destination of the church, and our beliefs and values determine the culture.

Our Mission (What we exist for)

We want to create a church culture where together we Practice the Way of Jesus.

We want to create a church culture where we collectively help people encounter God: find freedom from the past, purpose for the present and hope for the future

Our Vision (What it will look like)

To be a community that is devoted to Jesus, irrevocably committed to loving and supporting one another, and relentlessly dedicated to serving those in the community and beyond, as we share God’s love and bring hope to those in need.

To be a community where everyone is made to feel welcome, where we recognise that nobody is perfect, but that we celebrate everyone’s significance, as well as believing that anything is possible.

Our Strategy (what will make this happen)

We believe that strategy is essentially the ‘roadmap’ that tells us how to get from where we are to where we want to be.

Our leadership has been focusing primarily on what we know and believe about God, and His purpose for us, as this is the most important dimension of who we are at Encounter. We are committed to helping people explore the spiritual side of life and the implications for the whole of life. We seek to make Encounter a place for people in every stage of their spiritual journey...a place where people can belong even before they believe. For those who are seeking, as well as those who have been part of the church for many years.

Part of our strategy is to see Encounter’s ministry become increasingly innovative, whilst remaining true to our core beliefs, that are ultimately centred in Jesus and His message as found in the Bible.

ENCOUNTER TRUST WINCHCOMBE

REPORT OF THE TRUSTEES

for the year ended 31st August 2021 ( Continued)

Achievements and Performance (Continued)

2. Mission, Vision & Strategy (Continued)

Our Strategy (what will make this happen) (Continued)

During this year, the Pastors, Leadership Team and Trustees have sought to:

3. Spiritual Activity

The primary ways that we determine the spiritual health of Encounter are through our corporate regular worship, our prayer life, our belonging in Life Groups, our giving and serving.

During this past year, we have once again seen growth in all of these key areas.

Our new weekly patterns of worship have enabled us to gather regularly to celebrate, teach and respond. This has happened either in the building or online, depending on which stage of the lockdown cycle we found ourselves in.

We have continued to see the development of our corporate worship, with worship leaders who have played a significant role in serving in this key area of ministry. Encounter Kids has continued to grow, both with our innovative online contributions, as well as in the building. Alongside this has been the development of Encounter Youth on Sundays. We are thrilled that this summer we have been able to appoint an Intern to serve in these two key areas. We are so grateful to our volunteer teams that helped facilitate our different ministries during the lockdown seasons as well as when we returned to our buildings.

Alongside Encounter Kids, our youth initiative, Band of Believers, has continued to cater for teenagers who have an interest in the arts and creativity, especially music. Again, this has proven to be popular – both online and in the building.

Along with continued growth on Sundays we have also continued to see additions to existing Life Groups as well as being able to start new Life Groups here in Winchcombe and further afield. Firefall, our corporate prayer meeting has seen numbers increase.

No 9 Counselling continues to be offered to those in the community and beyond, who want to go on a journey of self-exploration, in the context of a safe environment. It is run by one of the Pastors who is a Person Centered Integrative Counsellor and Spiritual Director.

We have had many other encouragements during this past year:

Alongside a growing and influential online presence, which has developed an international reach, we have had the 2121 Prayer Initiative in January. Alpha online, from September onwards. The launch of Mid-Week Table Talk, Online Lent and Advent Courses, as well as Kintsugi Recovery Groups. The growing impact of Saturday Contact as well as studies resources for our Life Groups.

We have seen the impact of these initiatives in growing Sunday attendance since the final lockdown was lifted. Alongside this growth we have been blessed with increasing financial resources, both on a monthly basis, as well as with one-off gifts, as a result of our last Vision Sunday and Gift Day. We were encouraged by our last Christmas celebrations, as we doubled up to two evening Carol Celebrations. We have continued to develop our men’s and women’s ministries, as well as working hard at collaborating with many external agencies in caring for the vulnerable, lonely and needy. This has been particularly true of our work with Winchcombe Churches Together during Covd-19.

ENCOUNTER TRUST WINCHCOMBE

REPORT OF THE TRUSTEES

for the year ended 31st August 2021 ( Continued)

Achievements and Performance (Continued)

3. Spiritual Activity (Continued)

All of the above is only achievable as a result of the many volunteers who serve in all of these different areas within the life of Encounter. We are so grateful for each and every one of them. Once again, we also live with gratitude for the significant increase in revenue streams that have made much of what we’re attempting to do possible.

4. Community Benefit

We understand that our calling on our church is to go beyond just serving inside the walls of Encounter. We are constantly looking for opportunities to celebrate all that is good in our community and to honour God by serving others around us. Through our commitment to the local community and the wider region we aim to bring hope and help to those around us, as well as expressing the heart of all that matters to us at Encounter.

Over the past year we have continued to invest in our community and regional involvement. Our buildings have been used most days of the week, with many hundreds of people regularly using the facilities, many of whom are not Church members. Despite Covid-19 we have seen more people pass through our doors and engage in our activities than the year before.

The following is a list of the activities or events (Covid-19 depending) that we have run, supported or sponsored:

Events run by the Trust:

Events/activities that we have supported/sponsored:

5. Partnerships

Like many churches we recognise the importance of collaboration. We recognise that we can accomplish more through co-operation than competition. Practically working with others, where possible, helps us concentrate more of our resources on impacting the community and region around us and less on maintenance. It allows us to have a national and international engagement. It allows us to share expertise, be developed, and avoid unnecessary duplication.

ENCOUNTER TRUST WINCHCOMBE

REPORT OF THE TRUSTEES

for the year ended 31st August 2021 ( Continued)

Achievements and Performance (Continued)

5. Partnerships (Continued)

During the past year we have collaborated with:

6. Conclusion

In what has been a challenging year we also recognise the opportunities that we have been given to reflect, adapt, change and pivot towards a ‘new normal’. We give thanks for all that has happened in the last year, especially the growth that we have experienced on a number of fronts. We recognise the outstanding contribution of all those who have served in so many different ways. People have given their time, their resources and their energy, in allowing us to achieve all that we have been able to achieve, in ways that we might never have imagined possible before a pandemic impacted us all.

As we look to the future, we will do so with confidence and we will continue to explore and investigate the many different ways that we believe are before us as we seek to achieve our charitable objectives, step into our mission and fulfil our vision.

Financial Review

The total income for the year was £187,733 and total expenditure on charitable activities amounted to £160,464. The balance on unrestricted funds at the year end was £51,929 and restricted funds £300.

Reserves Policy

The trustees have examined the charity’s requirements for reserves taking account of the main risks to the organisation. It has initially a policy whereby unrestricted funds not committed or invested in tangible fixed assets held by the charity should be £20,000. This represents less than 20% of all budgeted expenditure for the year. Our ability to improve this has been impacted in the last year by some loss on income streams as a result of Covid19, however, it still remains our aim to increase the reserves to £60,000 within three years if at all possible. The reserves are needed to meet the working capital requirement of the charity and the trustees are confident that at this level they would be able to continue the current activities of the charity in the event of a significant drop in funding.

ENCOUNTER TRUST WINCHCOMBE

REPORT OF THE TRUSTEES

for the year ended 31st August 2021 ( Continued)

Structure, Governance and Management

Governing Document

Encounter Trust Winchcombe is registered as a charity with the Charity Commission. It is a charitable incorporated organisation and was formed under a Deed of Trust dated 4th June 2014.

Appointment of Trustees

The trustees keep the composition of the board under review and will seek to appoint additional members with appropriate skills and expertise should the need arise. Interested parties are given details of the background of the charitable company in order to make them aware of current activities.

To be eligible for appointment trustees must be 16 years or over and subscribe to the Statement of Beliefs. Two members of the leadership team will also serve as trustees and all trustees except for the senior pastor are selected by the leadership team in consultation with existing trustees.

Signed on behalf of the trustees by:

M Bailey

………………………………….. Trustee

Winchcombe

8th November 2021

ENCOUNTER TRUST WINCHCOMBE

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

I report to the trustees on my examination of the accounts of Encounter Trust Winchcombe for the year ended 31st August 2021.

Responsibilities and Basis of Report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent Examiner’s Statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

A P Williams BSc FCCA A J Carter & Co Chartered Accountants

22b High Street Witney Oxon OX28 6RB

10th November 2021

ENCOUNTER TRUST WINCHCOMBE

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31st August 2021

Note
Income from:
Donations
3
Other trading activities
4
Investments
5
Total incoming resources
Expenditure on:
Charitable activities
6
Total expenditure
Net income/(expenditure) and net
movement in funds for the year
Transfer between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted Restricted
Total
Funds
Funds
Funds
2021
£
£
£
182,638
1,805
184,443
3,288
3,288
2
-
2
185,928
1,805
187,733
159,489
975
160,464
159,489
975
160,464
26,439
830
27,269
530
(530)
-
26,969
300
27,269
24,960
-
24,960
£51,929
£300
£52,229		 Total
Funds
2020
£
155,310
6,502
12
161,824
165,608
165,608
(3,784)
-
(3,784)
28,744
£24,960

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derives from continuing activities.

The notes on pages 10 to 15 form part of these financial statements

ENCOUNTER TRUST WINCHCOMBE

BALANCE SHEET

as at 31st August 2021

Note
Fixed assets
Tangible assets
10
Total fixed assets
Current assets
Debtors
11
Cash at bank and in hand
Total current assets
Liabilities
Creditors falling due within one year
12
Net current assets
Total assets less current liabilities
Total net assets
13
The funds of the Charity
Unrestricted income funds
14
Restricted funds
14
Total charity funds		 2021
£
2,570
2,570
2,015
50,963
52,978
3,319
49,659
52,229
£52,229
51,929
300
£52,229		 2020
£
2,093
2,093
1,913
24,752
26,665
3,798
22,867
24,960
£24,960
24,960
-
£24,960

These accounts were approved by the trustees and authorised for issue on: 8th November 2021 and are signed on their behalf by:

M Bailey

...................................................... Trustee

The notes on pages 10 to 15 form part of these financial statements

ENCOUNTER TRUST WINCHCOMBE

NOTES TO THE ACCOUNTS

for the year ended 31st August 2021

1. Accounting Policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of Preparation

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

b) Public Benefit Entity

Encounter Trust Winchcombe meets the definition of a public benefit entity as defined by FRS 102.

c) Going Concern

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

d) Income Recognition Policies

Items of income are recognised and included in the accounts when all of the following criteria are met:

Income received in advance of a specific performance or provision of other specified service is deferred until the criteria for income recognition are met.

e) Donated Services and Facilities

In accordance with the charities SORP (FRS 102) the general time of volunteers is not recognised in the accounts.

ENCOUNTER TRUST WINCHCOMBE

NOTES TO THE ACCOUNTS

for the year ended 31st August 2021 (continued)

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on the straight line basis as follows:

Asset Annual Category Rate Fixtures and fittings 25% per annum Equipment 25% per annum

j) Debtors

Trade and other debtors are recognised at the settlement amounts due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.

Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity operates a defined contribution scheme, the costs of which are held outside of the charity. The contributions in the year are detailed in note 6.

  1. Legal Status of the Charity

Encounter Trust Winchcombe is a registered charitable incorporated organisation and was formed under a Deed of Trust dated 4th June 2014.

ENCOUNTER TRUST WINCHCOMBE

NOTES TO THE ACCOUNTS

for the year ended 31st August 2021 (continued)

3. Income from donations

Tithes, offerings and grants
Gift aid tax refunds		 2021
£
155,102
29,341
£184,443		 2020
£
130,988
24,322
£155,310

Of the £184,443 received in 2021 (2020: £155,310) £1,805 was restricted funds (2020: £5,479) and £182,638 (2020: £149,831) unrestricted funds.

The charity benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102) the economic contribution of general volunteers is not recognised in the accounts.

4. Income earned from other trading activity

Church events and other income
Rental income		 Unrestricted
funds
2021
£
768
2,520
£3,288		 Unrestricted
funds
2020
£
2,630
3,872
£6,502

5. Investment Income

All of the charity investment income arises from money held in Lloyds bank.

6. Analysis of expenditure on charitable activities

Ministry support
Gift and donations
Motor, travel and entertainment
Sundry expenditure
Conferences, training and event costs
Food and drink
Book, tapes and resources
Property costs
Depreciation
Administration
Accountancy
Total		 Church
2021
activities
Total
£
£
105,599
105,599
13,301
13,301
861
861
905
905
4,753
4,753
484
484
317
317
15,790
15,790
1,422
1,422
15,532
15,532
1,500
1,500
£160,464
£160,464		 2020
Total
£
99,973
13,147
1,345
1,162
10,987
2,106
542
21,686
1,134
12,206
1,320
£165,608

Of the £160,464 expenditure in 2021 (2020: £165,608) £159,489 was charged to unrestricted funds (2020: £158,322) and £975 to restricted funds (2020: £7,286).

ENCOUNTER TRUST WINCHCOMBE

NOTES TO THE ACCOUNTS for the year ended 31st August 2021 (continued)

7. Analysis of staff costs and trustee remuneration and expenses

Salaries and wages
Employers national insurance
Employer contribution to Defined Contribution Pension Scheme		 2021
£
95,389
5,374
4,836
£105,599		 2020
£
90,685
4,687
4,601
£99,973

No employees had emoluments in excess of £60,000 (2020: Nil).

During the year the Trustees received remuneration from the charity as permitted by the Trust deed as follows:

M & K Bailey 2021
£
62,475		 2020
£
57,800

During the year the trustees and their spouses and key management personnel donated £21,963 to the charity in total (2020: £5,080).

During the year trustees were reimbursed motor and other expenses of £1,491 some of which were incurred in their role as church leader. (2020: £917)

The key management personnel of the church were paid £105,599 in total for the year (2020: £99,973).

One of the key management personnel was loaned £800 in prior years by the Trust on an interest free loan. £500 has been repaid last year end and a further £300 repaid via a gift from the church last year. This year one of the key management personnel was gifted £250 for computer use.

8. Staff numbers

The average monthly number of employees during the year was as follows:

Church management 2021
Number
3		 2020
Number
3

9. Related party transactions

Encounter Trust Winchcombe is the sole trustee of the Matilda Swinburne Trust which has legal ownership of the church building and No 9 Gretton Road both of which are used by Encounter Trust Winchcombe at no extra cost.

ENCOUNTER TRUST WINCHCOMBE

NOTES TO THE ACCOUNTS

for the year ended 31st August 2021 (continued)

10. Tangible fixed assets

Cost:
As at 01.09.2020
Additions
As at 31.08.2021
Depreciation:
As at 01.09.2020
Charge for year
As at 31.08.2021
Net book value:
As at 31.08.2021
As at 31.08.2020
11.Debtors
Prepayments and accrued income
Other debtors
12.Creditors: amounts falling due within one year
Accruals
Other creditors
Taxation and social security costs
13.Analysis of net assets between funds
Tangible fixed assets
Cash at bank and in hand
Other net current assets/(liabilities)
Total		 General
Fund
£
2,570
50,663
(1,304)		 Fixtures
and
fittings
£
52,869
-		 Equipment
£

36,325
1,899

38,224

36,325

475

36,800

£1,424
£-
2021
£
309
1,706
£2,015
2021
£
1,500
-
1,819
£3,319

Restricted
Funds
£

-

300
-		 Total
£
89,194
1,899
91,093
87,101
1,422
88,523
£2,570
£2,093
2020
£
259
1,654
£1,913
2020
£
1,633
652
1,513
£3,798
Total
£
2,570
50,963
(1,304)
52,869
50,776
947
51,723
£1,146
£2,093
Designated
Funds
£

-

-
-
£51,929 £-
£300		 £52,229

ENCOUNTER TRUST WINCHCOMBE

NOTES TO THE ACCOUNTS

for the year ended 31st August 2021 (continued)

14. Analysis of charitable funds

Analysis of movements in restricted funds

Dorcas fund
Computer purchase
Restricted Giving:-
Kintsugi donations
Missionary work
Total		 Balance
Incoming
Resources
Funds
01.09.2020 resources
expended
Transfers
31.08.2021
£
£
£
£
£
-
500
(200)
-
300
-
1,000
-
(1,000)
-
-
130
(600)
470
-
-
175
(175)
-
-
£-
£1,805
£(975)
£(530)
£300

Description, nature and purposes of the funds

The restricted funds are for specific projects in the churches activities and pastoral care.

Transfers have been made to the restricted reserves to cover deficits on the funds in the year.

£1,000 was received in the year to fund the purchase of a computer. As a computer has now been purchased this sum has been released to General Funds

Analysis of movements in unrestricted funds

General fund
Total

Name of unrestricted fund		 Balance
Incoming
Resources
Funds
01.09.2020 resources
expended
Transfers
31.08.2021
£
£
£
£
£
24,960
185,928
(159,489)
530
51,929
£24,960 £185,928 £(159,489)
£530
£51,929
Description, nature and purposes of the fund

General fund The 'free reserves' after allowing for all designated funds.

15. Pension Commitments

The Charity operates a defined contribution scheme, the assets of which are held separately from those of the Charity in an independently administered fund. At the balance sheet date unpaid contributions of £Nil (2020: £652) were due to the fund. They are included in other creditors.

ENCOUNTER TRUST WINCHCOMBE

INCOME & EXPENDITURE ACCOUNT for the year ended 31st August 2021

for the year ended 31st
INCOME
Tithes, offerings and grants
Tax refunds
Rental income
Other income and church events
Interest
EXPENDITURE
Direct Charitable
Ministry
Ministry support and salaries
General giving

Motor, travel and entertainment
Sundry expenses and fees
Conferences, training and event costs
Food and drink
Books, tapes and resources
Property
Rent and utilities
Repairs and maintenance
Insurance
Cleaning and hygiene
Depreciation
Management and Administration
Printing, postage, stationery, advertising and
computer costs
Telephone
Accountancy
Administration services
Subscriptions and licenses
Bank charges
SURPLUS/(DEFICIT)FOR THE YEAR		 August 2021
£


105,599
13,301
861
905
4,753
484
317
126,220
5,886
3,434
2,922
3,548
1,422
17,212
8,850
2,384
1,500
2,531
1,207
560
17,032

£		 £
155,102
29,341
2,520
768
2
187,733
160,464
27,269		 31st August 2020
£
130,988
24,322
3,872
2,630
12
161,824
99,973
13,147
1,345
1,162
10,987
2,106
542
129,262
4,330
9,979
4,819
2,558
1,134
22,820
6,881
2,532
1,320
1,160
1,168
465
13,526
165,608
£(3,784)
£