2021-08-31-accounts - Journey Communities

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Journey Communities Financial Statements Year ended 31 August 2021

Charity Number: 1163017

Journey Communities Financial Statements Year Ended August 31, 2021 1

Contents	Page
Trustees and Advisors	2
Trustee’s Annual Report	3 – 11
Independent Examiner’s Report	12
Statement of Financial Activities	13
Balance Sheet	14
Notes to the Financial Statements	15 – 22

Journey Communities Administrative Information Year Ended August 31, 2021 2

The Trustees	Jeffrey Lothamer (Chairman)
	Steven Caton (resigned August 2021)
	Ryan Murphy (resigned August 2021)
	Simon Loo
	Darin Stevens (resigned August 2021)
	Peter Sotddart (appointed September 2021)
	Helen Loo (appointed September 2021)
	Luke Hatcher (appointed September 2021)
Registered Office	2 West Circular Drive
	Ambrosden
	Bicester, OXON
	OX25 2BB
	England
Independent Examiner	Joshua Kingston Bsc ACA
	Burton Sweet Limited
	The Clock Tower
	Farleigh Court
	Old Weston Road
	Flax Bourton
	Bristol
	BS48 1UR
Bank	Barclays
	36 Market Square
	Town Centre
	Bicester
	OX26 6AQ

Journey Communities Trustees’ Annual Report Year Ended August 31, 2021 3

The Trustees have pleasure in presenting their report and the unaudited financial statements of the charity for year ended 31 August 2021.

Structure, Governance and Management

History

Journey Communities, a Charitable Incorporated Organisation, was incorporated on 5 August 2015 (charity number 1163017). On 5 August 2015, it achieved charitable status and was entered onto the Register of Charities with the Registered Charity Number 1163017.

Prior to this, Journey Communities had been meeting as a church formerly known as The Crowded House Bicester informally beginning in Spring 2011. In the Autumn of 2014, under the guidance of minister Steven Caton on behalf of the church staff, 7 members of the church met regularly to arrive at a name for the church which communicated its identity. In the winter of 2014/2015, the approved name of the church formally became Journey Communities.

In the Autumn of 2015 Journey Communities staff and elders at the time elected to join the Fellowship of the Churches in Great Britain and Scotland (simply known as FCC). FCC provides consultation, support, encouragement and is ready to assist the church should it need and ask for it. Steven Caton was ordained as a minister in the FCC October of 2016.

Recruitment and Appointment of Trustees

Upon pursuit of charity registration new trustees were (and are) selected on the basis of their experience and skills, normally from amongst the members of Journey Communities, Bicester, but also from those with skills, familiarity and goodwill towards the church who are outside the church congregation. It is seen to be desirable that the Core Leadership team (Staff) of the church should be represented on the Trustee Board and Jeff Lothamer have fulfilled this dual role during the current year.

The Core Leaders and the Trustees aim to meet together on a regular basis to ensure effective governance of the church and discuss issues of mutual concern or decision.

The practice that is employed in appointing new Trustees is that potential new Trustees are identified and approached following discussion at a Trustees’ meeting; then, and in consultation with the Core Leaders, they are offered the opportunity to meet the existing Trustees with a view to possible Trusteeship. The Trustees regularly consider the composition of the Trustee Board in order to ensure that the Board has access to the right balance, diversity and spread of expertise needed to govern the affairs of the Charitable Incorporated Organisation. New Trustees are appointed formally by the current Trustee Board of the church. At the June 2021 trustee meeting we discussed three new potential trustees, Pete Stoddart, Helen Loo, and Luke Hatcher, and agreed to send an invitation to each of them to consider the position. All accepted and Steven Caton, Darin Stevens, and Ryan Murphy all submitted by email letters of resignation as of 31[st] August 2021.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2021 4

Organisation of the Charitable Incorporated Organisation

The Trustees meet once every 6-12 months to administer the affairs of the CIO and there are no subgroups acting for them. During the year, two of the Trustees benefited financially from the operations of the CIO and clear expectations of how they participate concerning financial decisions is outlined in our Governance Policy; services provided by Trustees and other related party activities are outlined in the Governance Policy as well.

During the year five staff members were employed by Journey Communities (two full-time and three part-time). The staff leadership of the church operates pertaining to areas of expertise, ie, worship leading, congregational teaching, financial and organisational leadership, youth and children’s programs. The five staff members receive direction and leadership from the elder team. Four staff serve on this team and one staff serves as an administrator.

Qualification for membership of the church is currently expressed by virtue of Christian commitment, commitment to the Church and through the desire to be formally recognised as a member of Journey Communities. New potential members have the opportunity to know more about the church through our community groups (called Missional Communities). Decisions about the overall direction of the Church and for its care are made by the Core Leadership, with input as necessary from other persons or groups. Key issues are discussed widely within the church.

The church community gathers regularly at a worship service and in Missional Communities for spiritual discussion, encouragement, communion, meals, and recreation. Each MC leader is trained to lead a group of people practically in life. Their training is a hybrid of theological, social and practical strategies to make individuals and families strong. Each MC leader and potential leaders are trained through a process called huddling. A Huddle meets twice monthly for personal development as spiritual leaders in practical, everyday ways. These leader’s huddles are currently led by staff members.

Objects, Mission and Aims

The objects of Journey Communities are:

To advance the Christian faith in Bicester and in such other parts of the United Kingdom or the world for the benefit of the public in particular, but not exclusively through the holding of prayer meetings, lectures, public celebration of religious festivals producing and/or distributing literature on the Christian faith to enlighten others about the Christian religion.

To Promote and fulfil such other charitable purposes beneficial to the community in Bicester and in such other parts of the United Kingdom or the world as the trustees may from time to time think fit.

The Trustees confirm that in setting their objectives they have complied with their duty under the Charities Act 2011 to have a due regard to the public benefit guidance published by the Charity Commission.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2021 5

Activities, Achievements, Development

Activities

Regular Gatherings: Journey Communities met bi-weekly for a hybrid worship service on Saturday nights either online or in-person through the period of COVID restrictions. We also met for weekly prayer meetings early mornings and some mid-day online as a place of connection, grieving, and support during the stay-at-home mandate. When allowed, Journey Communities met together for a worship service and some shared meals together. These times were for Christian worship, Bible learning, and growing together in unity as a church.

YouTube Livestream: Due to the lockdown, Journey communities met online via Zoom and livestream some of our services via YouTube and Facebook.

Missional Community: Our Missional Communities continued to meet throughout the month having times of communion, celebration, meals, prayer, pastoral care, service. Missional Communities also ran events and projects to create community in their neighbourhoods.

Small groups also met together (or virtually in line with Covid restrictions) in huddles or DNAs throughout the month for Bible study, prayer, accountability, leadership development, and personal growth. DNAs saw continued majority engagement from the people connected to Journey and served as a source of hope and encouragement through the pandemic.

Youth Meetings: Journey Youth was able to maintain relationships with the youth through an online games and craft time. We also were able to engage with many new youths through this virtual space. Our youth leader organised youth small group discipleship times weekly throughout the whole year. This met a great need for community and for spiritual encouragement during the lock down. Once live meetings resumed, the youth group meet weekly for bible study, social time, and mutual encouragement.

Elder’s Meetings: Elders met regularly online and in-person to discuss day-to-day issues of pastoral needs during various stages of COVID-19 lockdown. They also met together for prayer.

Achievements

Sarah and Christie led the strategic plan of online gatherings and executed the details with the help of many volunteers to execute the teaching, worship, prayer times, readings, dialogue, reflections. We were able to meet online and in person throughout this year.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2021 6

As a church we gathered on Saturdays each week during the month. We had different offerings on these evenings ranging from Prayer and Communion, Mission equipping, Teach & Dialogue, and Worship nights. The topics explored were Hope, Rest, Philippians, Advent, Holiness, Prayer, Worship, Easter, Transformed Relationships, Gospel Planting: Apologetics, Listening to God, Emotions. We continued to make “dialogue” around teaching a key aspect of journey culture. This became an expected way to process teaching. We continue to cultivate a gathering atmosphere where the gifts of the Holy Spirit are expected, and all can engage in ministering to each other.

In August of 2020, often a quiet holiday month in England, Journey developed a lightweight series of learning about the bible using the materials produced by the Bible Project in a weekly Gathering for those who remained in Bicester.

Journey hosted a Good Friday Prayer Space and Large Worship service for Easter.

Journey shared with a neighbouring church a “Summer Event: Jesus is Lord” with Highway Christian Church of Marsh Gibbon with whom Journey have had a friendship with going back many years.

Jeff and Christie hosted huddles with 3 families who became key leaders and families in the church.

The Journey owned coffee shop, named FLTR Coffee, celebrated its 4th anniversary in April 2021. The founding families made intentional efforts to pass on the leadership of this enterprise to paid staff, intentionally leaving a gap for mission in the hopes that others within the church will step up and carry that in the future.

Development

Leadership and Team

The pandemic’s effect saw our apostolic leader consumed with the tasks of running the church’s enterprise. However, Christie and Sarah were able to step up, meet weekly, and carry much of the planning, development of leaders, and executing of gatherings and events with the help of the church as volunteers.

The elders called for a 10-year plan from the Lothamers, as strategic leaders during this season of stay at home. We took time to begin to learn how to discern God’s will together on matters - Upping our worship was the first task at hand. There was much success in the shifting of the leadership culture at that time from an intellectual exercise to a more spiritual exercise in leading the way forward.

Christie continued to drive forward that there were about 7 key problems facing us as a charity/organisation/church that needed resolution.

Leadership not reflective of host culture
Lack of clarity for elder leadership function
Functional tasks lack accountability structure
Centre is defined as church

Journey Communities Trustees’ Annual Report Year Ended August 31, 2021 7

Unsustainable leadership of functions
Difficult to explore and pioneer/innovate
Not seeing movement of the transformation of lives.

This led to increased discussion around how we were leading church. We debated and discerned at great lengths what form church must take to be called “church” such that where there are “two or three” gathered, Jesus would be in their midst. We concluded that both in the time of the Apostles and again in our time, church must return to the small, networked through relationships; what we are calling microchurch.

Realising the need to shift leadership structures, one of the existing elders, Darin Stevens, decided that it was a good point for him to step down from eldership to focus on shifts in his other responsibilities. It was with mutual hope and blessing that he stepped down.

The Impetus towards movement

Recognising that the idea of a network of microchurches means a significant shift in how Journey has been organised hitherto, Christie and Simon (an elder) took up the responsibility to further envision a “future” for Journey that not only sees the continued spiritual formation of her members but also a whole-church impetus towards an outward looking, Christ-centred missional movement. A church like those in the book of Acts, but a modern church, working with all the appropriate modern, web-based tools for communication and organisation, adept in engagement with the public like the apostle Paul at the Areopagus.

Church and Organisational

With the agreement of the elder team, Christie and Simon started to assess, and develop ideas based on the “the priesthood of all believers” in the form of microchurches and what the minimum requirements are that make a “church,” a church.

It was at this time that another key idea was developed for the context of Journey Communities in Bicester - The Dual Operating System or DUAL OS in short. The Dual OS is the idea that for any church organisation to be healthy, there needs to be both organic-relational system and a functional, organised system.

The organic is particularly suited to the relational and spiritual aspect of church where achieving targets and logistics play a more limited role. This OS is called the “relational” or “spiritual” OS.

On the other hand, to gather Jesus followers, to help microchurches to learn, to go on mission together, to communicate well, require a good level of executing communication plans and organisation. This is especially true given today’s far more layered and complex tools for communication. We call this the “organised” or “functional” OS.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2021 8

This required a new thinking for the staff and lay leaders of Journey Communities. Instead of a staff or leader leading both as experts in organisation and spiritual formation, a separation of functional role was needed.

If networked microchurch as an organisational principle is a re-formation of the church sociological space, then DUAL OS is the reformation of the operational/executional system. This contrasts with the hierarchical model more prevalent among traditional churches. As such, the set of tools for organisation and communication must be adapted as well. This led to the concurrent development of the technical needs of the organised OS

Technical

During this period, Journey Communities started building out more of its systems of communication, with a specific emphasis on it being web based. This meant that staff and volunteers can easily access the information and communication platforms that would become a communication glue for the entire community.

Journey, as a registered charity was able to obtain many web-based services for much reduced price or free.

Simon Loo, an elder, was able to obtain Google Workspace through the charity therefore providing free email, shared calendar, document sharing, domain hosting, YouTube channel among Google’s many other services.

Other services also obtained for much reduced cost for the purpose of building out Journey Communities’ communication tool stack included Notion, an advanced note sharing app, Canva, a graphic creation tool, charity Zoom account, and Davinci Resolve, a professional quality video editing software.

One significant investment Journey made during this time was subscribing to a community platform app - Mighty Networks. It is akin to a private Facebook app allowing independent church communities such as Journey to be able to start developing a digital network with all interested party without some of the distracting issues related to more public social media apps.

Apart from evaluating or integrating new software-based services, Journey Communities also started evaluating needed hardware investment with a specific view that portability and flexibility is key. This was proposed against the possibility of a grant to further facilitate growing of new disciples which Journey was successful in obtaining.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2021 9

COVID-19 Impact

Covid-19 has had a significant impact on our charity.

Decrease in attendance at events and gatherings spaces due to pressures caused by pandemic caused a real pruning of our core group. Time to rethink the why and how we do church life led to a “let’s do the basics” whilst rethinking where we want to go for the future.

It also continued to impact how we meet together in the physical space. Due to the pandemic and the social distancing measure that we all adhere to, we primarily met virtually (unless the guidelines allowed for physical gatherings). We initially moved our worship gatherings, prayer meetings, small group Bible studies, and youth activities all online. We used platforms such as Zoom, Facebook and WhatsApp. While there is an impact on meeting virtually verses meeting in person, we actually saw an increase in attendance and participation in all of our activities.

Our giving continued to be healthy during the pandemic. As a result of our church’s generosity, and low expenses such as renting facilities to meet physically, our financial situation is healthy and strong. In fact, we have been able to increase our save some financial resource to assist in the process of coming out of the pandemic and reengaging with our constituency.

As a result of the pandemic, our church continued to be involved in responding to some of the new needs around us.

So, concerning our ability to continue as a going concern, we are confident we will continue to carry out our objectives as a church and as a charity.

Financial Performance

Funds held by the charity are:

Unrestricted general funds - that can be used in accordance with the charitable objects at the discretion of the Trustees.
Restricted funds - that can only be used for restricted purposes within the objects of the charity; restrictions arise when donations or grants are received for particular restricted purposes.

Financial Activities

The Trustees are grateful to the members and regular donors within the church for the (often) sacrificial way in which they contribute to meet the financial needs of the church. Many of the donors are family or young people, so limited in their ability to give. The gifts given for unrestricted general funds were similar to the previous fiscal year and met the needs of the budget and community projects. However, the trustees continue to dream about greater impact in our community. Therefore, the Trustees are committed to encouraging a continued commitment to increase giving so that the church can develop its local community work in the future and also its financial support to Christian workers and organisations in the UK and abroad alongside its other activities. We are convinced that we will have the sufficient resources through the faithful giving of our members to continue to meet our objectives.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2021 10

We continued our relationship with Greater Europe Mission (North American) who provides substantial funding which allows us to employ pastoral staff.

Reserves

The Trustees have reviewed the Charity’s needs for reserves in line with the guidance issued by the Charity Commission. The Trustees believe that the Charity should hold financial reserves equivalent to 6 months operating costs (exc staff costs) which equates to £5,848. At the end of our fiscal year, 31st August 2021, the charity had total funds of £66,779. Of the total funds £39,624 are considered to be unrestricted free reserves this is currently above the target level. Due to the Covid pandemic restrictions, our charity expenses were decreased, and our community projects were limited, although our donations continued to be strong. As a result of the surplus in the reserves, we will be considering various future projects in the year to come.

Statement of trustees’ responsibilities

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2021 11

General Conclusion

The Trustees look forward to the future with confidence and continue to see much need for the Church's charitable activities in seeking to fulfil its aims, mission and objects. We will remain committed to our social and spiritual investment in young people and families in our community. The Trustees consider that the Charity is on a proper footing both organisationally and financially. They welcome any enquiries in respect of clarification of the Charity's work or its future plans or financial and organisational arrangements.

Enquiries should be directed to the Chairman - Mr Jeff Lothamer, c/o the registered office.

2 West Circular Road Ambrosden Bicester, Oxfordshire OX25 2BB

Jun 16 2022

Signed by order of the Trustees on …………………………

Jeff Lothamer Chairman of Trustees

Journey Communities Independent Examiner’s Report Year Ended August 31, 2021 12

Independent examiner’s report to the trustees of Journey Communities

I report to the trustees on my examination of the accounts of Journey Communities (the Charity) for the year ended 31 August 2021.

Responsibilities and basis of report

As the charity trustees of the Charity 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:

accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
the accounts do not accord with those records; or
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.

Joshua Kingston Bsc ACA Burton Sweet Limited The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Date: …………………………

Jun 16 2022

JOURNEY COMMUNITIES

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 AUGUST 2021

Unrestricted Funds £ 157,208 - 3	Restricted Funds £ - - -	Total Funds 2021 £ 157,208 - 3	Total Funds 2020 £ 137,597 663 13
157,211	-	157,211	138,273
138,928	22	138,950	131,692
138,928	22	138,950	131,692
18,283 -	(22) -	18,261 -	6,581 -
18,283 48,192	(22) 100	18,261 48,292	6,581 41,711
66,475	78	66,553	48,292

The Charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing.

The notes on pages 15 to 22 form part of these financial statements See note 8 for fund-accounting comparative figures

JOURNEY COMMUNITIES

BALANCE SHEET

AS AT 31 AUGUST 2021

2021 Note £ Fixed assets Tangible assets 9 259 Investments 10 26,682 26,941 Current assets Cash at bank and in hand 41,292 41,292 Liabilities Creditors : amounts falling due within one year 11 (1,680) Net current assets 39,612 Total assets less current liabilities 66,553 Net assets 66,553 FUNDS Unrestricted funds General funds 13 66,475 Designated funds 13 - Restricted funds 13 78 Total funds 66,553 Jun 16 2022	2020 £ 395 26,682
	27,077 22,805
	22,805 (1,590)
	21,215
	48,292
	48,292
	48,192 - 100
	48,292

These financial statements were approved by the Trustees on …......... and are signed on their behalf by:

Jeff Lothamer Trustee

The notes on pages 15 to 22 form part of these financial statements

JOURNEY COMMUNITIES NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Accounting convention

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 (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The charity is a public benefit entity as defined under FRS102. There are no material uncertainties about the charity’s ability to continue as a going concern, despite the significant uncertainty being caused by the worldwide COVID-19 crisis. Whilst the Trustees expect there to be a significant impact on the charity’s operations and reserves in the coming months and years, the charity has sufficient reserves to be able to meet these challenges.

Income

Income from donations is included in income when these are receivable, except as follows:

I. When donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods; II. When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred until the pre-conditions have been met.

Legacies are included on a receivable basis where charity is entitled to the income, it can be measured reliably and receipt is probable. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is not included in income but is treated as a contingent asset and disclosed if material.

Investment income is included on a receivable basis.

Donations in kind comprise donated services where the costs are measurable and the services would otherwise have to be paid for to maintain operational effectiveness.

Expenditure

Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered.

Charitable Activities

Grants awarded are allocated to charitable activities.

Grants awarded are treated as expenditure and a liability in the accounts as soon as they become legal or constructive obligations. In the case of multi-year grant awards, the funding for all years is immediately recognised unless there are conditions which need to be met by the recipient to enable the release of subsequent years’ funding.

JOURNEY COMMUNITIES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2021

1 Accounting policies (continued)

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. Governance costs are included within support costs.

Allocation and apportionment costs

Certain expenditure is directly attributable to specific activities and this has been included in those cost categories. Other costs, which are attributable to more than one category, are apportioned across cost categories on the basis of an assessment of workload carried out from time to time.

Pension costs and other post-retirement benefits

The charity contributes to defined contribution pension schemes. Contributions payable to the charity's pension schemes are charged to the Statement of Financial Activities in the period to which they relate.

Tangible fixed assets

Fixed assets are held at cost less accumulated depreciation. Assets costing less than £500 are not capitalised. Depreciation is calculated so as to write off the cost of an asset, less its estimated ultimate residual value, over the useful life of that asset as follows:

Fixtures, fittings and equipment

over 4 years; straight line

Fixed asset investments

Investments are included at cost at 31 August. The SOFA includes the net gains and losses arising on revaluations and disposals during the year.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

2 Income from: Donations and legacies

Donations & Gifts Grants Greater Europe Mission (North American) FLTR	Unrestricted Funds £ 25,381 10,845 118,553 2,429	Restricted Funds £ - - - -	Total Funds 2021 £ 25,381 10,845 118,553 2,429
	157,208	-	157,208

JOURNEY COMMUNITIES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2021

2 Income from: Donations and legacies

For the year ended 31 August 2020 Donations & Gifts Grants Greater Europe Mission (North American)	Unrestricted Funds £ 22,749 - 114,200	Restricted Funds £ 148 500 -	Total Funds 2020 £ 22,897 500 114,200
	136,949	648	137,597

3 Charitable activities expenditure

Direct Costs Church resources Church retreat Learning community Denominations/networks Special projects Gathering/events GC Support/mission Mission mobilisation Payroll services Salaries and staff costs Youth activities Benevolent giving FLTR Generosity Investment Support Costs Office costs Bank charges Website and technology Depreciation Insurance Governance Costs (Note 4)	Unrestricted Funds £ 434 841 358 4,084 - 1,988 145 206 90 117,260 2,942 66 2,468 1,244 84 4,341 136 354 1,887	Restricted Funds £ - - - - 22 - - - - - - - - - - - - - -	Total Funds 2021 £ 434 841 358 4,084 22 1,988 145 206 90 117,260 2,942 66 2,468 1,244 84 4,341 136 354 1,887	Total Funds 2020 £ 50 756 540 742 555 2,202 214 240 90 117,941 2,886 1,000 - 1,227 72 864 136 352 1,825
	138,928	22	138,950	131,692

Included within prior year special projects is £555 relating to restricted expenditure. All remaining expenditure in prior year was unrestricted.

JOURNEY COMMUNITIES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2021

4 Governance costs

Independent Examiners Fees: - for independent examination services - for other services	Unrestricted Funds £ 1,680 207	Restricted Funds £ - -	Total Funds 2021 £ 1,680 207	Total Funds 2020 £ 1,590 235
	1,887	-	1,887	1,825

Governance costs in the prior year were unrestricted.

5 Net income/(expenditure) for the year

This is stated after charging:	2021	2020
	£	£
Independent Examiners Fees:
- for independent examination services	1,680	1,590
- for other services	207	235
Trustees' travel, meeting and training expenses	-	-
Depreciation	136	136

No trustees have been reimbursed for expenses in respect of carrying out their duties as a Trustee (2020: £Nil).

Aggregate donations from Trustees, key management personnel, and other related parties was £Nil (2020: £7,500).

6 Staff costs and numbers

The aggregate payroll costs were:

Wages & salaries Social security costs Pension contributions	2021 £ 118,597 4,600 3,832	2020 £ 105,885 3,749 3,085
	127,029	112,719

No employee received emoluments of more than £60,000.

The average weekly number of employees during the year was 5 (2020: 5), calculated on the basis of average headcount. The total employment benefits received by key management personnel including employer national insurance and employer pension were £116,207 (2020: £112,719).

7 Taxation

The charity is exempt from corporation tax on its charitable activities.

JOURNEY COMMUNITIES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2021

Unrestricted Funds £ 136,949 663 13	Restricted Funds £ 648 - -	Total Funds 2020 £ 137,597 663 13
137,625	648	138,273
131,137	555	131,692
131,137	555	131,692
6,488 (7)	93 7	6,581 -
6,481 41,711	100 -	6,581 41,711
48,192	100	48,292
	Fixtures, fittings and equipment £ 542 -	Total £ 542 -
	542	542
	147 136	147 136
	283	283
	259	259
	395	395

JOURNEY COMMUNITIES NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2021

10 Investments

During the 2017 accounting period the Charity set up a wholly owned trading subsidiary, FLTR Coffee Ltd, in which it owns 100% of the £26,682 issued share capital.

The subsidiary's first period of accounts were made up to 31 December 2017.

In the 2018 year a further loan to FLTR Coffee was extended by the Charity totalling £2,616. This increased the balance owed to the charity to £3,382 at the year-end. On 31 October 2018 this loan was converted to additional shares in FLTR Coffee Ltd.

Share capital Creditors: amounts falling due within one year Accruals and deferred income	2021 £ 26,682	2020 £ 26,682
	26,682	26,682
	2021 £ 1,680	2020 £ 1,590
	1,680	1,590

11 Creditors: amounts falling due within one year

12 Movement in funds

For the year ended 31 August 2021

At 1 Sep 2020 £ 100	Income £ -	Expenditure £ (22)	Transfers £ -	At 31 Aug 2021 £ 78
100	-	(22)	-	78
48,192	157,211	(138,928)	-	66,475
48,192	157,211	(138,928)	-	66,475

48,292	157,211	(138,950)	-	66,553

NOTES TO THE FINANCIAL STATEMENTS

JOURNEY COMMUNITIES

YEAR ENDED 31 AUGUST 2021

12 Movement in funds ( continued )

For the year ended 31 August 2020

At 1 Sep 2019 £ - -	Income £ 100 548	Expenditure £ - (555)	Transfers £ - 7	At 31 August 2020 £ 100 -
-	648	(555)	7	100
- 41,711	- 137,625	(1,000) (130,137)	1,000 (1,007)	- 48,192
41,711	137,625	(131,137)	(7)	48,192

41,711	138,273	(131,692)	-	48,292

Restricted funds

Hardship Fund represents monies donated towards neighbourhood aid for those at risk and in need during COVID-19 lockdown.

Good Neighbour Scheme represents money raised towards neighbourhood aid for those at risk and in need during the COVID-19 lockdown.

Designated funds

Hardship Fund was established by Trustees in order to reflect the desire to help those in financial trouble.

13 Analysis of net assets between funds

As at 31 August 2021 Tangible fixed assets Investments Other net assets	Restricted Funds £ - - 78	Designated General Funds Funds £ - 259 - 26,682 - 39,534 - 66,475 Unrestricted	Designated General Funds Funds £ - 259 - 26,682 - 39,534 - 66,475 Unrestricted	Total 2021 £ 259 26,682 39,612
	78	-	66,475	66,553

JOURNEY COMMUNITIES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2021

13 Analysis of net assets between funds (continued)

As at 31 August 2020 Tangible fixed assets Investments Other net assets	Restricted Funds £ - - 100	Designated General Funds Funds £ - 395 - 26,682 - 21,115 - 48,192 Unrestricted	Designated General Funds Funds £ - 395 - 26,682 - 21,115 - 48,192 Unrestricted	Total 2020 £ 395 26,682 21,215
	100	-	48,192	48,292

14 Related party transactions

Transactions with Trustees

Stephen Caton, a Trustee received a salary of £16,800 (2020: £16,800) in the current year for duties carried out as an employee of the Charity. The spouse of Stephen Caton was also employed by the Charity and received a salary of £20,300 (2020: £16,100).

Jeff Lothamer, a Trustee received a salary of £14,750 (2020: £14,800) in the current year for duties carried out as an employee of the Charity. The spouse of Jeff Lothamer was also employed by the Charity and received a salary of £14,750 (2020: £14,000).

These transactions were authorised and agreed by the Trustee body, in the absence of the named individuals. Further to this the Charity's constitution permits such transactions. In taking this decision the Trustees believe they have acted in the best interests of the Charity and its beneficiaries.