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2021-03-31-accounts

King’s Church Loughborough Annual Report and Financial Statements For the year ended 31[st] March 2021

Registered Charity No. 1160234

KING’S CHURCH LOUGHBOROUGH

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS

Page
Trustees’ Annual Report 3 - 11
Independent Examiner’s Report 12
Statement of Financial Activities 13
Balance Sheet 14
Statement of Cash Flows 15
Notes to the Accounts 16 - 28

Page 2

KING’S CHURCH LOUGHBOROUGH

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Reference and administrative details

The name of the Charity is King's Church Loughborough.

The Charity's registered number is 1160234.

The Charity's principal address is: Schofield Centre Greenclose Lane Loughborough Leicestershire LE11 5AS

During the year ended 31 March 2021 and up to the date of this report the following persons served as Trustees of the Charity:

Chair Mrs M Laxton Mrs S Brightman Mr A Brackett Mr P Callan Mr S Moses

The Core Leadership Team of the Church during the year ended 31 March 2021 and up to the date of this report were:

Apostle Mr G Duffty Apostle Mr A Hulley Mrs T Hulley Mr S & Mrs H Moses Mr P Callan Mr P Benest Mrs M Laxton Mr D & Mrs K Long

King’s Church is managed on a day to day basis by Mrs K Long. Small World Nursery is managed on a day to day basis by Mrs M Whitley. Both are overseen by the Trustees.

Independent Reviewer: Bankers: Solicitors: Richard Farmer CGMA Santander Bank plc Askews Legal LLP Elbus Limited Leicester Corporate 5 and 6 The Quadrant 23 Faraday Avenue Carlton Park Coventry Stretton Building 4, Level 1 CV1 2EL Burton-upon-Trent Narborough Staffordshire Leicester DE13 0FX LE19 0AL

Page 3

KING’S CHURCH LOUGHBOROUGH

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present the report and financial statements of King's Church Loughborough for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' 2019 (FRS102) in preparing the annual report and financial statements of the charity.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity was established by a Deed of Constitution as a Charitable Incorporated Organisation (CIO) on 29 January 2015.

Recruitment and Appointment of Trustees

Trustees are appointed by the existing Trustee Board. Apart from the first Charity Trustees, all Trustees must be appointed for a term of three years by a resolution passed at a properly convened meeting of the Charity Trustees. In selecting individuals for appointment as Charity Trustees, the Charity Trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO. This process would take account of the recommendations from the recognised spiritual leaders of the CIO. The senior spiritual leader automatically will be appointed as an ex-officio Charity Trustee for as long as he or she holds that office. At the end of a term of three years, any person retiring as a Charity Trustee is eligible for reappointment. Apart from the first Charity Trustees, a Charity Trustee who has served for three consecutive terms may not be reappointed for a fourth consecutive term, but may be reappointed after an interval of at least one year. All new Charity Trustees receive a copy of the Deed of Constitution, a copy of the most recent Trustees' Annual Report and Statement of accounts, and copies of the CIO Policy and Procedures documents.

Organisation

The Charity is governed in law by the Trustees and decisions may be taken either at a meeting of the Charity Trustees, or by resolution in writing or electronic form agreed by all of the Charity Trustees. The minimum number of Trustees is three, and a maximum of twelve. The spiritual welfare and direction of the Church community and its activities are the responsibility of the Core Leadership team (one of whom is an ex-officio Trustee), acting with the advice and support of the Trustees.

The Trustees remain responsible for ensuring that the Core Leadership Team activities are commensurate to the goals of the CIO as stated in the Deed of Constitution.

The CIO has powers to do anything which is considered to further its objects, or is conduce or incidental to doing so.

Risk Management

The Trustees have reviewed the major risks to which the Charity is exposed and systems have been established to mitigate those risks. Significant external risks to income are reviewed every six months to ensure that sufficient funds are in place. Internal risks are reviewed and minimised by the Trustees, by the implementation of procedures.

Page 4

KING’S CHURCH LOUGHBOROUGH

TRUSTEES' ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021

Data Protection

Our policies and procedures are written to comply with the GDPR regulations, to ensure safe handling and use of personal data, within the organisation, and are updated at least on an annual basis, or more regularly if necessary.

OBJECTIVES AND ACTIVITIES

The Deed of Constitution limits the Charity’s operation to specific objectives and purposes. The objectives of the Charity are as follows:

In shaping our objectives and planning our activities, the Trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a Charity (PB2)' and the activities we provide fully reflect the purposes for which the CIO was set up.

The vision statement is:

Following Jesus, Forming communities, Transforming the world.

The values that underpin our Church family are:

We see church as a vibrant community living as a loving family. Our vision is that everyone will understand God’s purpose, be passionately in love with Jesus and live authentic Spirit-filled lives.

We believe some of the greatest resources people have are their dreams and gifts. We believe these come from God and are His way of expressing His love for us, involving us in His plan for the whole of creation. We are committed to helping people discover and thrive in their dreams and the use of their gifts.

We desire to cultivate an environment of faith, hope and love, and express these through our joy, generosity, care and sense of adventure.

We encourage everyone to live a Jesus-centred life and, as His apprentices, respond to His commission in the context of community. We want to help people find a place to belong and experience the powerful effect of God’s love and grace.

We are motivated in every activity we do as a church family by Jesus’ love, life and mission. This shapes our very existence, knowing that just as the Father sent Him so Jesus sends us.

Page 5

KING’S CHURCH LOUGHBOROUGH

TRUSTEES' ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021

The Charity’s values therefore are:

Going

Growing

ACHIEVEMENTS AND PERFORMANCE

The global pandemic – Covid-19 hit the UK in March 2020 and the country went into several lockdowns over the course of the year. The activities of the CIO were impacted as individuals went on furlough, were confined to working from home, or found themselves at the front end of keeping the country and the economy going as essential workers. The finances of Kings Church were not substantially negatively affected as most givers moved to online giving however the finances of Small World Nursery were impacted as fee paying parents removed children in line with Government guidance. The Trustees decided to keep the nursery open to provide for vulnerable children and the children of key workers in line with the objectives of the CIO and at the request of local Social Services.

Income from rents on the top floor were partially affected and one tenant was given a rent holiday as their sector was completely closed down and they did not have access to Government support. Now that their sector is re-opening, rents are expected to be paid as usual. Consequently, the Trustees approved a conservative budget not reliant on their contributions. The Trustees applied for a government backed “bounce back” loan to enhance cash flow to Small World Nursery, and are currently pursuing an insurance claim.

The pandemic altered the focus of CIO activity to boost pastoral care especially to individuals who were shielding on Government advice, or were in need of assistance for essential shopping and collection of prescriptions. Extra staffing was directed to providing regular contact either by phone or doorstep to counteract loneliness.

An enhanced cleaning package was also brought in to ensure safety of those using the building during the pandemic.

Page 6

KING’S CHURCH LOUGHBOROUGH

TRUSTEES' ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021

Local Mission

As a consequence of the Pandemic and the move into lockdown, the Sunday morning gatherings of the King’s Church family changed from being “in person” to online using the Zoom platform. Safeguards were put in place to protect those attending by only offering the link to known participants. By the summer of 2020, Facebook live streaming was also introduced to allow access to a wider audience. However, the sharing of personal information was reserved until the end of the meeting once the Facebook live stream had ended. In addition, the meeting remained on “Speaker view” to protect the identity of the other participants, and there was a change from the use of pre-recorded music to live music to avoid copyright issues on Facebook. Despite these changes, the gatherings were generally well attended by those who had appropriate technology. Once the regulations began to ease, these Sunday gatherings were supplemented by outdoor garden meetings in small groups following Government guidance.

The gatherings continued to be focussed mainly on corporate worship, prayer and preaching/teaching according to various ‘themes’ that usually lasted several weeks at a time. The teaching, as usual, was carried out by a wide variety of speakers, most from within the church family with a few from outside, ranging in age from 20’s to 60’s and spread across male and female speakers. The speakers were encouraged to make their talks shorter in order accommodate being online but remain interactive, by using the “breakout room” facility on Zoom.

Provision was made to engage young people (11-18 years), through the youth group known as ‘Revolution’ and our younger children (4-11 years) through ‘Kingzone’, however attendance was reduced because of the difficulties of being online. Once restrictions eased, more informal outdoor gatherings became possible in line with Government guidance and these were often well attended with around 12 young people involved. The regular youth camps ‘Focus’ and ‘Connect’ were cancelled in line with Government guidance, as were other group activities such as ‘Playtime’, ‘Townwide Youth’, our participation in ‘Messy Church’ and the planned weekend away.

Once the schools re-opened in early July 2020 for the last week of term, we partnered with a charity to deliver food parcels known as ‘Bags of Hope’ to families who would have received free school meals but were disadvantaged by not being in school. We partnered with 5 local families through contacting local schools and continued to support them once the school holidays were ended.

We decided to upgrade the basement of the Schofield Centre to create a community pantry which could be accessed by all, including families who may be struggling with food poverty as an extension and re-development of our ‘OpporTINity’ initiative. We invested in building work to make the basement watertight by replacing an existing leaking roof, upgrading internal walls, floors and ceilings and upgrading the remaining pavement lights. The basement is now watertight and food-safe. We have recently appointed staffing to manage the Pantry. The costs were covered from gifts, grants and internal savings. The Pantry is known as ‘Cupboard on the Corner’ and at the time of writing it has 35 members and is growing fast. Regular deliveries are received from ‘FareShare’ (https://fareshare.org.uk/) and other local supermarket partners looking to redistribute food nearing end of shelf life as a means of reducing food waste.

Page 7

KING’S CHURCH LOUGHBOROUGH

TRUSTEES' ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees decided to keep Small World Nursery open to provide for vulnerable children and the children of essential workers. A bubble system was introduced in line with Government guidance to limit disruption in the event of a positive case of covid. During the first lockdown this was well contained but as the pandemic continued and especially once the Delta variant emerged, there was transmission from the community and several staff had to self-isolate. At one point the nursery closed because of the number of positive cases and staff affected. There was a significant drop in parental income but the nursery was able to access some grant funding from the Local Authority. Furlough payments were received in line with HMRC guidelines. Despite this the finances of the nursery have been adversely affected and we continue to monitor the position very closely.

Government funding continues to be received for eligible children and at the time of writing the numbers attending are slightly below expectations for the time of year. The Trustees have allocated money to be put aside to support the nursery if necessary.

Town Wide Mission

King’s Church continues to take an active role in the ‘Loughborough Churches Partnership’. Members of King’s Church support the ‘Street Pastors’, town wide prayer initiatives, however many moved online or were cancelled during the pandemic.

We organised and ran a very successful socially-distanced Christmas outreach activity for the local community ‘Winter Wonderland Walkthrough’, to offer a high-quality Christmas experience to all, including low-income families who would not normally be able to afford to take their Children to see Santa. This was managed with good social distancing and appropriate hygiene on an appointment only basis and attracted around 100 families over two days.

National Mission

The Church continues to enjoy relationships with churches in the ‘Together’ network and regular meetings continued again using the Zoom platform. As restrictions have eased, in person gatherings have slowly started to begin again.

International Mission

A number of members of King’s Church continue to sponsor children in the Bangalore Orphanage, India. We continue to develop relationships with the church in Zambia and contributed financially to the building of the community project at Lufwanyama through the Heap Offering which was also used to financially support a family who had relocated to Canada as part of a faith based leadership programme.

Contribution of Volunteers

King’s Church relies heavily on the voluntary work of its members to sustain the church's weekly activities. Given the size of the congregation (50+ adults and over 20 children/young people) it is very difficult to name all volunteers as the essence of membership in the church is a voluntary participation by all people.

Where voluntary workers are responsible for children or vulnerable adults, each volunteer’s history is first checked with the Disclosure and Barring Service before starting.

Page 8

KING’S CHURCH LOUGHBOROUGH

TRUSTEES' ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021

Diversity and inclusion

Following the increased international focus on combatting racism and the “Black Lives Matter” protests, we have intentionally decided to report on our efforts and activities to be an inclusive community seeking to increase our diversity and be welcoming to all.

The book club continues to meet monthly and is well attended by a small group of participants (10+). A range of materials, from a variety of sources, secular and Christian have been read and discussed addressing issues related to tackling racism. This was supplemented by a dedicated Sunday gathering addressing the biblical aspects of tackling racism. The trustees approved the allocation of a small grant to be given to organisations at the front line of tackling racism. At the time of writing, attention has been turned to discussing ways in which support can be offered to refugees who might be resettled in Leicestershire from Afghanistan, and the church has signed up to the Afghan Welcome initiative which seeks to mobilise churches to support resettled individuals.

We have also decided to continue to host our meetings via Zoom for the time being in addition to any physical gathering that might take place once Covid restrictions are ended. This is to enable people to continue to participate who may have difficulty accessing the building because of illness or disability.

Safeguarding

The Trustees take their responsibilities for safeguarding very seriously and continue to review the safeguarding procedures on a regular basis at Trustee meetings. Safeguarding personnel are adequately trained and are supported by the leadership team. Safeguarding for Small World Nursery is reviewed termly and annually by Trustees in line with OFSTED requirements. A substantial amount of safeguarding training was undertaken this year through “31:8” (formally CCPAS), including; Safeguarding of Children, Safeguarding of Vulnerable Adults, and Awareness of Domestic Violence in line with new legislation. Trustees have also attended training on their responsibilities for safeguarding.

Plans for 2021 and beyond

With the easing of government restrictions, the Trustees undertook a risk assessment before the commencement of in person Sunday meetings which have slowly restarted. Safeguards have been put in place to enable people to assess their own level of risk, personal contact and participation through the use of coloured lanyards. Good hygiene and ventilation is in place and mask wearing is encouraged especially when socialising with more nervous or vulnerable people.

Mask wearing, hand disinfection and ventilation is still heavily encouraged in the common areas of the building.

The Pantry continues to thrive and provide for families at risk from food poverty and there are ideas to develop it to work with other agencies tackling other issues of deprivation, ideally in partnership with local providers.

The Trustees continue to monitor the situation on a weekly basis, to assess and understand risk, and adapt as necessary to maintain a safe working environment and to continue to support the local community in need.

Page 9

KING’S CHURCH LOUGHBOROUGH

TRUSTEES' ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW

King's Church Loughborough is dependent on donations, fees and charges to meet its operational costs. An annual budget is prepared, and actual results against this budget are reviewed quarterly by the Trustees. There are a number of factors affecting the Tithes and Offerings, including people moving away and the current economic climate, along with people passing away. Due to the regular review process any reduction in planned Tithes and Offerings mean that budgets are able to be adjusted as necessary in order to safeguard the Charity and its reserves. At 31 March 2021 the Charity had total reserves of £529,778 (2020: £503,564), of which £14,243 (2020: £12,981) was restricted, with cash at bank and in hand of £238,871 (2020: £177,804). The current cash reserves are within the allowable boundaries identified in the reserves policy.

Reserves Policy

The policy for holding some cash on reserve has been made for the following reasons:

  1. To accommodate the monthly fluctuations in income and expenditure e.g. the quarterly gift aid tax claim and the seasonal income from the Small World Nursery.

  2. To provide a buffer in the event of a significant loss of church membership and associated giving, from whom about 60% of the total Trust income is generated.

  3. To enable continuity of the Small World Nursery in the event of a sudden reduction in child attendance (30% of total income).

  4. To provide immediate funds to support the implementation of new projects in furtherance of the trust's aims as and when the opportunity arises.

  5. To provide finance for the development of the main hall as part of developing the Schofield Family Centre.

Level of Reserves

The Trustees feel that in order to fulfil the requirements noted in points 1 to 5 above, it would be appropriate to hold a minimum cash reserve of 1 month's total Trust expenditure and a maximum cash reserve of 3 month's total Trust expenditure. In 2020/2021 the total Trust expenditure was approximately £464,052 (2020: £508,713). This would equate to a minimum cash reserve of £38,671 (2020: £42,393) and a maximum cash reserve of £116,013 (2020: £127,179).

At the end of the 2020/2021 financial year the cash reserves included an amount of prepaid income of £56,108 (2020: £62,900) for the first quarter of the next financial year, and dedicated funds of £29,236, mainly in relation to the development and opening of the Community Pantry. Deducting these from the cash reserves total, the remaining cash reserves were approximately 3.9 times (2020: 2.7) above the minimum cash reserve, which the Trustees consider adequate.

In relation to point 5 above, whilst it remains a stated church objective of developing the main hall in the short term, to serve the growing church community and its associated charitable projects, it would be prudent to allow the trust reserves to exceed this maximum reserve to a figure of £1,850,000 (2020: £1,850,000).

Page 10

KING’S CHURCH LOUGHBOROUGH

TRUSTEES’ ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2021

I report on the accounts of the Charity for the year ended 31 March 2021 which are set out on pages 13 to 28.

Respective responsibilities of trustees and examiner

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’) which give a true and fair view. The Charity's Trustees consider than an audit is not required for the year to 31 March 2020 under section 144(2) of the Charities Act 2011 and that an independent examination is needed. Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 124 of the Act. I confirm that I am qualified to undertake the examination being a member of the Chartered Institute of Management Accountants, which is one of the listed bodies.

It is my responsibility to:

Basis of Independent Examiner’s Report

My examination was carried out in accordance with the 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 you as Trustees concerning 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.

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. the accounting records were not kept in respect of the charity as required by section 130 of the 2011 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.

Richard Farmer CGMA Elbus Limited 23 Faraday Avenue ________ Stretton Richard Farmer CGMA Burton-upon-Trent Staffordshire DE13 0FX Dated: Jan

Dated: 21st Jan 2022_

Page 12

KING'S CHURCH LOUGHBOROUGH

STATEMENT OF FINANCIAL ACTIVITIES 31 MARCH 2021

Income
16
Income from charitable activities
Small World Centre
17
Cupboard on the Corner
18
Other charitable projects
Other income
Conference income
Bank interest
Investments
Rental income
Other
Other income
Total Incoming Resources
Expenditure
Charitable activities
3/16
3/17
3/18
3/16
Total Expenditure
Reconciliation of Funds
Total funds brought forward at
31 March 2020
Total funds carried forward at
31 March 2021
Transfers
Net movements in funds
Note
Net income/(expenditure)
before transfers
Gross transfers between funds
Main Church
Small World Nursery
Other charitable projects
Donations & gift aid
Cupboard on the Corner
Note Unrestricted
/ designated
Funds
2021
£
85,245
316,152
28,125
227
-
322
19,788
2,022
Restricted
Funds
2021
£
10,350
14,431
7,295
6,149
-
-
-
160
Total
Funds
2021
£
95,595
330,583
35,420
6,376
-
322
19,788
2,182
Unrestricted
Funds
Restricted
Funds
Total
Funds
2020
2020
2020
£
£
£
91,690
23,012
114,702
350,658
6,653
357,311
-
-
-
5,722
404
6,126
1,525
-
1,525
665
-
665
20,919
-
20,919
4,352
-
4,352
451,881 38,385 490,266 475,531
30,069
505,600
110,637
314,639
150
3,210
12,294
13,816
2,978
6,328
122,931
328,455
3,128
9,538
147,660
14,880
162,540
333,027
6,653
339,680
-
-
-
6,148
345
6,493
428,636 35,416 464,052 486,835
21,878
508,713
23,245 2,969 26,214 (11,304)
8,191
(3,113)
206 (206) - 25
(25)
-
23,451
492,084
515,535
2,763
11,480
14,243
26,214
503,564
529,778
(11,279)
8,166
(3,113)
503,363
3,314
506,677
492,084
11,480
503,564

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 16 to 28 form part of these financial statements

Page 13

KING'S CHURCH LOUGHBOROUGH BALANCE SHEET AS AT 31 MARCH 2021 xed A￿ets 361,674 380,511 rrent Assets Debtors Cash at bank and in hand 19,799 177,805 197,604 238J71 264,(KB Creditor5- amounts falling due withln one year 75.905 74,551 NEf CURREKf ASSErs 188.104 123.053 Creditors- amounts falling due after more than one year 20.CIXI NET ASSETS 529,778 503,564 THE FUNDS OF THE CHARrrY: Restrirted Funds Special Offerings & other restricted funds 14 14243 11,480 Unrestrirted Funds Capital Fund Designated Funds General Fund 14 14 14 361,674 29,236 124,625 380,511 1,651 109.922 TOTAL CHARITY FUNDS 529,778 503,564 The accounts on pages 12 to 21 were approved by the Trustees, on 12 October 2021 and were signed on their behalf by: MRS M LAxfoN MRS S BRIGHTMAN The notes on pages 16 to 28 forni part of these financial statements Page 14

KING'S CHURCH LOUGHBOROUGH

STATEMENT OF CASH FLOWS AS AT 31 MARCH 2021

2021 2020
£ £ £ £
Cash flows from operating activities
Net movement in funds for the year 26,214 (3,113)
Depreciation 18,837 18,986
Investment income (20,110) (21,584)
(Increase)/decrease in debtors (5,339) (4,423)
Increase/(decrease) in creditors 21,354 (8,651)
Net cash provided by/(used in)
operating activities 40,956 (18,785)
Cash flow from investing activities
Rental income 19,788 20,919
Bank interest 322 665
Purchase of tangible fixed assets - -
Net cash provided by/(used in)
investing activities 20,110 21,584
Net increase/(decrease) in cash and cash equivalents 61,066 2,799
Cash and cash equivalents at 1 April 2020 177,805 175,006
Cash and cash equivalents at 31 March 2021 238,871 177,805
Cash and cash equivalents consists of:
Cash at bank an in hand 238,871 177,805

The notes on pages 16 to 28 form part of these financial statements

Page 15

KING'S CHURCH LOUGHBOROUGH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Basis of Preparation

The charity constitutes a public benefit entity as defined by FRS102. The financial statements have been prepared under the historical cost convention and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019 (Charities SORP FRS102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. The financial statements are prepared on a going concern basis under the historical cost convention, and are presented in sterling (see note 13). Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Fixed Assets

Fixed assets are stated at cost less depreciation. Assets introduced from the previous Trust have been included at net book value. Depreciation is calculated to write down the cost or valuation of tangible fixed assets to their estimated residual values over their estimated useful lives at the following annual rates :

Freehold property 2% of cost
Improvements to freehold property 10% of cost
Office fixtures and fittings 20% of cost
Computer equipment 20% of cost

Income recognition

All income is recognised once the charity has legal entitlement to the income, when there is sufficient certainty of receipt and the amount of income receivable can be measured reliably.

Donations are recognised upon receipt and classified at that point as either unrestricted or restricted if they donation is for a specific purpose. No amounts are included in the financial statements for services donated by volunteers.

Interest on funds held on deposit is included upon notification of the interest paid or payable by the Bank.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is accounted for on an accruals basis and has been listed under headings that aggregate all the costs related to that activity, including support and governance costs. For more information on this allocation refer to the note "allocation of governance and support costs" below. Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with the use of resources.

Charitable activity expenditure are those costs incurred in attracting voluntary income, and include expenditure directly associated with individual projects and support costs relating to those activities.

Page 16

KING'S CHURCH LOUGHBOROUGH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (continued)

Allocation of governance and support costs

Governance costs are those incurred in connection with the management of the charity and its assets, organisational administration and compliance with constitutional and statutory requirements.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with their use of resources.

The allocation of governance and support costs is analysed in note 4.

Church Activities

Church activities include the costs incurred in holding Church meetings, outreach mission and other activities of a similar nature.

Lease and Hire Purchase Contracts

Tangible fixed assets acquired under finance leases and hire purchase contracts are capitalised at the estimated fair value at the date of inception of each lease or contract. The total finance charges are allocated over the period of the lease in such a way to give a reasonably constant charge on the outstanding liability.

Operating Leases

Rentals paid under operating leases are charged against income on a straight line basis over the term of the lease.

Taxation

Taxation has not been provided for on the result for the year of the Charity on the grounds that Section 505 of the Income and Corporation Taxes Act 1988 applies (exemption of Charities from taxation).

Restricted Funds

Restricted funds are accounted for in accordance with the particular terms of trust arising from the express or implied wishes of donors in so far as these are intended to be binding on the Trustees.

Capital Fund

In order that funds available for general purposes are not overstated in the accounts, the Capital Fund represents that part of the Church's funds which are tied up in fixed assets purchased out of unrestricted income, adjusted for depreciation. This is because such funds could only be realised by the sale of the assets concerned.

General Fund

Free reserves that are those available for the general purposes of the Church, after deduction of restricted funds, designated funds, and the Capital Fund.

Page 17

KING'S CHURCH LOUGHBOROUGH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

2. GRANTS RECEIVED
Small World Nursery
Coronavirus Job Retention Scheme / SSP grants
Unrestricted
Restricted
Restricted
Charnwood Borough Council Discretionary Grant
Unrestricted
Cupboard on the Corner
National Grid ESO Grant
Restricted
LCC Community Fund (1)
LCC Community Fund (2)
2021
2020
31,096
2,404
4,154
846
5,000
-
3,500
-
7,265
-
51,015
3,250

The above includes government grants of £43,750 (2020: £3,250) in relation to Covid19 support. £31,096 (2020: £2,404) of this was specifically in relation to Coronavirus Job Retention Scheme and SSP reclaims.

Small World Nursery

Coronavirus Job Retention Scheme (CJRS) / Covid SSP grants

During the year the Nursery remained open but with very limited numbers due to Covid restrictions, and most of the staff were placed on furlough. The nursery did close for a short period in February 2021 due to the number of staff needing to self-isolate. The staff were slowly brought back as Covid guidelines and child numbers changed. CJRS was claimed in proportion of the parental income to government funded places as per the guidelines.

LCC Community Fund (1)

This grant was received towards the cost of wages. Although the CJRS was able to be claimed for some of the wages, more staff were needed to be furloughed than the amount the nursery was able to claim for. Funding was sought to help with the cost of the furloughed staff whose wages were unfunded.

LCC Community Fund (2)

This grant was received towards the cost of consumables and wages, as per the initial fund (1) above.

Charnwood Borough Council Discretionary Grant

This was an unrestricted grant towards the general running of the nursery during the pandemic.

Cupboard on the Corner

National Grid ESO Grant

During the year the Trustees decided to set up a Community Pantry aiming to reduce food waste and tackle food poverty across Loughborough. Funding was successfully sought from the National Grid towards the set-up costs which started during the year. The project is called Cupboard on the Corner, and opened in June 2021.

Page 18

KING'S CHURCH LOUGHBOROUGH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

3. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Note
a) Analysis of expenditure on
Charitable activities - unrestricted/designated funds
Main Church
16
Small World Nursery
17
Cupboard on the Corner
18
Other charitable projects
Total unrestricted expenditure
2020 unrestricted
Analysis of expenditure on
Charitable activities - restricted funds
Main Church
16
Small World
17
Cupboard on the corner
18
Other charitable projects
Total restricted expenditure
2020 restricted
Total resources expended
b) Analysis of support
costs
Staff Costs
Office Costs
£
£
Main Church
43,559
3,854
Small World Nursery
-
-
Total support costs
43,559
3,854
Total support costs 2020
48,915
4,958
Note
a) Analysis of expenditure on
Charitable activities - unrestricted/designated funds
Main Church
16
Small World Nursery
17
Cupboard on the Corner
18
Other charitable projects
Total unrestricted expenditure
2020 unrestricted
Analysis of expenditure on
Charitable activities - restricted funds
Main Church
16
Small World
17
Cupboard on the corner
18
Other charitable projects
Total restricted expenditure
2020 restricted
Total resources expended
b) Analysis of support
costs
Staff Costs
Office Costs
£
£
Main Church
43,559
3,854
Small World Nursery
-
-
Total support costs
43,559
3,854
Total support costs 2020
48,915
4,958
Activities
undertaken
directly
Governance &
support costs
Total
2021
£
£
£
19,993
90,644
110,637
306,915
7,724
314,639
150
-
150
3,210
-
3,210
Total
2020
£
147,660
333,027
-
6,148
330,268
98,368
428,636
486,835
374,689
112,146
12,134
160
12,294
13,816
-
13,816
2,978
-
2,978
6,328
-
6,328
486,835
14,880
6,653
-
345
35,256
160
35,416
21,878
21,878
-
21,878
365,524
98,528
464,052
508,713
Premises costs
Depreciation
Total
2021
£
£
£
19,510
17,856
84,779
3,443
981
4,424
Total
2020
£
97,226
5,455
43,559
3,854
22,953
18,837
89,203
102,681
48,915
4,958
29,822
18,986
102,681

Support costs are all allocated on the basis of usage/time spent.

Page 19

KING'S CHURCH LOUGHBOROUGH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

3. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES (continued)

c) Analysis of governance
Legal & professional fees
Independent review fees
Accountancy fees - Main Church
Accountancy fees - Small World Nursery
Apportionment of support costs
d) Analysis of other resources expended
Conference costs
4. NET INCOME/(EXPENDITURE)
Net income/(expenditure) for the year is stated after charging:
Independent Review/Auditors' remuneration
Depreciation
Operating leases
5. ANALYSIS OF STAFF COSTS
Employee costs during the year were:
Ministerial support
Salaries
Social Security
Pension
Agency staff
2021 2020
£
-
700
2,670
3,300
2,495
£
-
700
2,630
3,300
2,835
9,165 9,465
2021 2020
£
-
£
-
2021 2020
£
700
18,837
2,059
£
700
18,986
2,812
2021 2020
£
9,700
313,182
13,305
5,007
-
£
21,911
321,549
13,980
4,851
372
341,194 362,663

The average head count of employees during the year was 25 (2020: 25)

The aggregate remumeration of key management personnel during the year was £58,455 (2020: £52,174)

There were no employees who received emoluments of more than £60,000 during the year (2020: £nil). Redundancy and termination payments made during the year were £nil (2020: £nil)

6. INDEPENDENT REVIEWER'S REMUNERATION

The independent reviewer's remuneration consisted of independent examination costs £700 (2020: £700).

Page 20

KING'S CHURCH LOUGHBOROUGH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

7. TANGIBLE FIXED ASSETS

Cost or Valuation :
As at 1 April 2020
Additions
Disposals
As at 31 March 2021
Depreciation :
As at 1 April 2020
Charge for year
Disposals
As at 31 March 2021
Net book value :
As at 31 March 2020
At 31 March 2021
Freehold
Property
£
409,687
-
-
Improvements
to Freehold
Property
£
53,481
-
-
Improvements
to Freehold
Property
£
53,481
-
-
Fixtures
and Fittings
£
13,667
-
-
Computer
Equipment
£
3,223
-
-
Total
£
480,058
-
-
409,687 53,481 13,667 3,223 480,058
59,375
11,875
-
24,461
5,923
-
12,546
981
-
3,165
58
-
99,547
18,837
-
71,250 30,384 13,527 3,223 118,384
350,312 29,020 1,121 58 380,511
338,437 23,097 140 - 361,674

All material assets are held for the Charity's own use.

8. DEBTORS

DEBTORS
Income tax recoverable on Gift Aid
Other debtors
CREDITORS : Amounts falling due within one year
Deferred income
Accruals
Bank loans
Taxation and social security
Other creditors
CREDITORS : Amounts falling after more than one year
Bank loans
2-5 years
2021 2020
£
10,870
14,268
£
6,151
13,648
25,138 19,799
2021 2020
£
56,108
2,840
5,000
3,010
8,947
£
62,900
2,845
-
3,711
5,095
75,905 74,551
2021 2020
£
20,000
£
-

9. CREDITORS : Amounts falling due within one year

10. CAPITAL COMMITMENTS AND POST BALANCE SHEET EVENTS

There were no capital commitments at 31 March 2021.

Page 21

KING'S CHURCH LOUGHBOROUGH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

11. RELATED PARTY TRANSACTIONS

REMUNERATION:

None of the Trustees have been paid any remuneration in their role as a Trustee. However, the following have been paid remuneration or received other benefits from an employment with the charity or as a worker/supplier for the charity in accordance with the Deed of Incorporation of the CIO:

Mrs S Brackett, CIO employee (spouse of Trustee) - gift
Mrs S Brightman, Trustee - special occasion gift
Mr S Moses, Trustee - special occasion gift
Mr A Hulley, ex-officio Trustee
Self-employed ministerial duties, ceased July 2019.
Mrs T Hulley, CIO employee (spouse of Trustee)
Employment ceased July 2019.
Mrs S Brackett, CIO employee (spouse of Trustee)
2021
2020
£
£
-
13,411
-
1,004
7,175
5,176
35
-
42
-
40
-

Neither trustee Mr A Hulley or trustee Mr A Brackett took any part in discussions regarding the setting of remuneration in regards to their spouses.

No other Trustee or related party received any remuneration in respect of the years ended 31 March 2021 and 31 March 2020.

REIMBURSED EXPENSES:

No Trustees received any reimbursed expenses in the year to 31 March 2021 or 31 March 2020.

OTHER RELATED PARTY TRANSACTIONS:

During the year Mr A Hulley and Mrs T Hulley moved to Canada to continue Apostolic ministry. Various payments were made in the year to 31 March 2020 to Mr & Mrs Hulley in order to bless into this new work. During the year to 31 March 2021 Mr & Mrs Hulley were no longer related parties.

Heap Offering from the congregation (restricted donations)
International Mission - Apostolic Ministry gift
Leaving gift & flowers
2021
2020
£
£
-
11,405
-
2,000
-
292

In addition, in the year to 31 March 2020 a restricted donation was received for Mr A Hulley through CAF and paid to him in line with the donors restriction.

OTHER RELATED PARTY TRANSACTIONS:

Trustee Mrs M Laxton commenced a room lease with King's Church for business purposes not in connection with King's Church. This was at a rate equivalent to other non-related parties. Rental income received by King's Church from Mrs M Laxton during the year amounted to £2,401 (2020: £1,558).

Page 22

KING'S CHURCH LOUGHBOROUGH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

11. RELATED PARTY TRANSACTIONS (continued)

OTHER RELATED PARTY TRANSACTIONS (continued) :

During the year the Trustees and Related Parties have made donations to the Charity without attached conditions of £24,834 (2020: £16,010). Donations made with conditions attached (i.e. Restricted funding special offerings) amounted to £6,104 (2020: £7,748).

12. OPERATING LEASE COMMITMENTS

At 31 March 2021, the Charity had annual commitments under non-cancellable operating leases on

Operating leases which expire :
Within one year
Two to five years
2021
2020
£
£
-
351
1,169
1,169

13. GOING CONCERN

The Trustees have assessed the risk to the Charity in relation to going concern and the impact the Coronavirus has had, both in the short and medium term. At the time of approving the financial statements, the Trustees have a reasonable expectation that the CIO has adequate resources to continue in operational existence for the foreseeable future, thus the going concern basis continues to remain appropriate.

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted funds
- Special offerings &
other restricted funds
Unrestricted funds
- Capital funds
- Designated funds
- General funds
At 31 March 2020
Note
15
Fixed
Assets
-
361,674
-
-
Current
Assets
14,243
-
29,236
220,530
Liabilities
-
-
-
(95,905)
(95,905)
Total
14,243
361,674
29,236
124,625
361,674 264,009 529,778

Page 23

KING'S CHURCH LOUGHBOROUGH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

15. RESTRICTED FUNDS MOVEMENT ANALYSIS

King's Church
Bangalore Orphanage
Zambia
Ministry support
OpporTINity
Covid food shop
Coronavirus Job Retention Scheme/SSP
Individuals / small funds
Small World Nursery
Government funding
Charity fundraising
Leicestershire Community Fund
Cupboard on the Corner
Set-up donations
National Grid ESO grant
Balance at
31/03/2020
416
5,920
4,712
226
-
-
206
-
-
Income
1,396
2,000
6,000
2,693
3,436
160
974
5,253
24
9,154
30
7,265
Expenditure
1,428
5,041
4,712
2,872
3,436
160
974
4,638
24
9,154
-
2,978
Transfers
(206)
(206)
Balance at
31/03/2021
384
2,880
6,000
47
-
-
-
-
615
-
-
30
4,287
-
11,480 38,385 35,417 14,243

King's Church

Ongoing project support in Bangalore, Zambia, Ministry support and local food poverty. During the year there has been a significant amount of support with shopping for people self-isolating and shielding. This money was repaid to the church.

Small World Nursery

Coronavirus Job Retention/SSP

Government funding

Leicestershire Community Fund

Government support for nursery staff on furlough or isolating due to Covid, in accordance with guidelines for entities receiving government funding.

Pupil premium, special educational needs and disability access fund funding.

Grants to help cover additional consumables during the pandemic and to cover wages costs not covered by the Coronavirus Job Retention Scheme.

Cupboard on the Corner National Grid ESO grant

Grant towards the set-up costs for the community food pantry.

Page 24

KING'S CHURCH LOUGHBOROUGH

KING'S CHURCH INCOME & EXPENDITURE 31 MARCH 2021

Income
Tithes
Offerings
Gift Aid
Heap Offering
Special Offerings
Other projects
Playtime
Revolution
Kingzone
Messy Church
Breakfast with Santa
Connect
Support fund
Rental income
Room rents
Other income
Covid SSP grants
Conference income
Events
Electric Feed in Tariff
Easyfundraising/Amazon Smile
Sundry income
Bank interest
Total Income
16.
Unrestricted
/ Designated
Funds
2021
£
64,537
6,155
14,553
-
-
-
-
-
-
227
-
-
19,788
-
-
-
1,636
11
375
221
Unrestricted
/ Designated
Funds
2021
£
64,537
6,155
14,553
-
-
-
-
-
-
227
-
-
19,788
-
-
-
1,636
11
375
221
Restricted
Funds
2021
£
-
-
-
8,000
2,350
-
-
-
20
-
-
6,129
-
160
-
-
-
-
-
-
Total
Funds
2021
£
64,537
6,155
14,553
8,000
2,350
-
-
-
20
227
-
6,129
19,788
160
-
-
1,636
11
375
221
Unrestricted
Funds
Restricted
Funds
Total
Funds
2020
2020
2020
£
£
£
66,122
-
66,122
9,957
-
9,957
15,611
-
15,611
-
18,907
18,907
-
4,105
4,105
1,877
-
1,877
-
-
-
-
-
-
-
42
42
320
-
320
675
-
675
-
362
362
20,919
-
20,919
-
1,525
-
1,525
2,850
-
2,850
1,678
-
1,678
37
-
37
2,638
-
2,638
429
-
429
107,503 16,659 121,919 124,638
23,416
148,054

Page 25

KING'S CHURCH LOUGHBOROUGH

KING'S CHURCH INCOME & EXPENDITURE 31 MARCH 2021

Expenditure
Going
Mission
Special offerings discharged
Messy Church
Church Catering
Events
Church Travel
Playtime
Heap Offering
Support fund
Grants
Growing
Kingzone
Revolution
Leadership Development
Church Partnerships
Training
Ministry Expenses
Running costs
Heat & Light
Rates
Insurance
Building Maintenance &
Cleaning
Office
Professional Fees
Independent Examination
Music Licenses
Publicity
Bank charges
Salaries
Ministry Support &
Tithe of Tithes
Depreciation
Total Expenditure
Net Surplus/(Deficit)
16.
Unrestricted
/ Designated
Funds
2021
£
1,382
-
980
-
51
44
32
-
1,739
500
2,192
6
100
750
1,638
-
6,769
2,506
4,581
9,097
4,056
5,495
700
1,092
170
614
45,852
9,700
17,856
Unrestricted
/ Designated
Funds
2021
£
1,382
-
980
-
51
44
32
-
1,739
500
2,192
6
100
750
1,638
-
6,769
2,506
4,581
9,097
4,056
5,495
700
1,092
170
614
45,852
9,700
17,856
Restricted
Funds
2021
£
-
2,709
20
-
-
-
-
9,426
6,308
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
160
-
-
Total
Funds
2021
£
1,382
2,709
1,000
-
51
44
32
9,426
8,047
500
2,192
6
100
750
1,638
-
6,769
2,506
4,581
9,097
4,056
5,495
700
1,092
170
614
46,012
9,700
17,856
Unrestricted
Funds
Restricted
Funds
Total
Funds
2020
2020
2020
£
£
£
4,097
150
4,247
-
3,176
3,176
958
42
1,000
870
-
870
9,006
-
9,006
189
-
189
2,561
-
2,561
11,405
11,405
1,656
302
1,958
500
-
500
1,894
-
1,894
735
-
735
1,182
-
1,182
375
-
375
645
-
645
150
-
150
8,617
-
8,617
2,685
-
2,685
4,788
-
4,788
13,733
-
13,733
5,218
-
5,218
4,843
-
4,843
700
-
700
838
-
838
154
-
154
633
-
633
51,489
-
51,489
21,911
-
21,911
18,004
-
18,004
117,902 18,623 136,525 158,431
15,075
173,506
(10,399) (1,964) (14,606) (33,793)
8,341
(25,452)

Page 26

KING'S CHURCH LOUGHBOROUGH

SMALL WORLD INCOME & EXPENDITURE 31 MARCH 2021

Income
Parental income
Government funded places
Charity fundraising
Grant income
Coronavirus Job Retention /
Covid SSP grants
Other income
Bank interest
Total Income
Expenditure
Salaries
Agency staff
Food
Consumables
Heat & Light
Waste Disposal
Equipment
Resources & Toys
Small Equipment
Training
Advertising
ICT
Office
Gifts (children & staff)
Building Maintenance
Health & Safety
Charity Fundraising
Professional Fees & Insurance
Bank charges
Hardship fund
Sundry expenses
Bad Debts
Bad Debts Recovered
Depreciation
Total Expenditure
Net Surplus/(Deficit)
17.
Unrestricted
/ Designated
Funds
2021
£
95,374
180,922
-
8,500
31,096
260
101
Unrestricted
/ Designated
Funds
2021
£
95,374
180,922
-
8,500
31,096
260
101
Restricted
Funds
2021
£
-
5,253
24
9,154
-
-
-
Total
Funds
2021
£
95,374
186,175
24
17,654
31,096
260
101
Unrestricted
Funds
Restricted
Funds
Total
Funds
2020
2020
2020
£
£
£
160,265
-
160,265
188,120
3,220
191,340
-
184
184
-
-
-
-
3,249
3,249
2,272
-
2,272
236
-
236
316,253 14,431 330,684 350,893
6,653
357,546
270,730
-
6,385
3,635
1,751
2,227
1,418
511
352
903
217
4,219
2,135
924
1,504
232
-
12,489
472
49
210
372
(520)
981
12,816
-
-
686
-
-
-
-
268
-
-
-
-
-
-
22
24
-
-
-
-
-
-
-
283,546
-
6,385
4,321
1,751
2,227
1,418
511
620
903
217
4,219
2,135
924
1,504
254
24
12,489
472
49
210
372
(520)
981
280,999
6,470
287,469
133
-
133
8,787
-
8,787
4,153
-
4,153
1,931
-
1,931
2,946
-
2,946
851
-
851
973
77
1,050
1,002
-
1,002
850
-
850
448
-
448
4,278
-
4,278
3,126
-
3,126
209
-
209
2,007
-
2,007
295
-
295
-
106
106
12,288
-
12,288
602
-
602
119
-
119
665
-
665
1,435
-
1,435
(524)
-
(524)
982
-
982
311,196 13,816 325,012 328,555
6,653
335,208
5,057 615 5,672 22,338
-
22,338

Page 27

KING'S CHURCH LOUGHBOROUGH

CUPBOARD ON THE CORNER INCOME & EXPENDITURE 31 MARCH 2021

Income
Donations
Grant funding
Total Income
Expenditure
Set-up costs
Total Expenditure
18.
Unrestricted
/ Designated
Funds
2021
£
28,125
-
Unrestricted
/ Designated
Funds
2021
£
28,125
-
Restricted
Funds
2021
£
30
7,265
Total
Funds
2021
£
28,155
7,265
Unrestricted
Funds
Restricted
Funds
Total
Funds
2020
2020
2020
£
£
£
-
-
-
-
-
-
28,125 7,295 35,420 -
-
-
150 2,978 3,128 -
-
-
150 2,978 3,128 -
-
-

Page 28