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2021-12-31-accounts

SALWAY EVANGELICAL CHURCH

ACCOUNTS & REPORT OF THE TRUSTEES

FOR THE YEAR ENDED

31 DECEMBER 2021

SALWAY EVANGELICAL CHURCH

CHARITY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees Mr Philip Albon, Mr Laurence Mumford, Mr Paul Norris, Dr Andrew Pople, Mr Craig Tranfield, Mr Paul Watkins and Mr Richard Williams

Mr Paul Norris resigned as a Trustee on 31 December 2021

Key Staff Ian Rees - Pastor Ann Burgess - Family and Community Worker

Treasurer Miss Lorraine Thrower

Governing Document

The Church is a Charity constituted as a Charitable Incorporated Organisation (CIO) and registered with the Charity Commission on 28 August 2015.

Charity Registration Number 1163347

Principal Address

Forest Approach Woodford Green Essex IG8 9BW

Independent Examiner

Lourens du Plessis ACA CA(SA) Stewardship 1 Lamb Passage London EC1Y 8AB

Bankers

HSBC CCLA Investment Management Ltd 20-21 Electric Parade COIF Charity Funds George Lane Senator House South Woodford 85 Queen Victoria Street London E18 2LX London EC4V 4ET

Contents Page
Charity Information 1
Trustees' Annual Report 2-5
Statement of Financial Activities 6
Balance Sheet 7
Notes to Accounts 8-20
Independent Examiner's Report 21

Page 1

SALWAY EVANGELICAL CHURCH Charity Registration Number 1163347 Forest Approach, Woodford Green, Essex IG8 9BW

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Church is a Charity constituted as a Charitable Incorporated Organisation (CIO) and registered with the Charity Commission on 28 August 2015.

The Charity is administered by Trustees who together with other key personnel comprise the Church Leadership. The current personnel, who served throughout the year, are shown on page 1. Mr Paul Norris resigned as a Trustee on 31 December 2021.

On 6 January 2017 the CIO took responsibility as Trustee for the Salway Hall Woodford Green Declaration of Trust 1932 which has freehold title for the land and buildings of the church at Forest Approach. The CIO has use of these buildings without cost in perpetuity on the proviso it adheres to various requirements in the Trust Deed and maintains and insures the property.

OBJECTIVES AND ACTIVITIES

The mission of Salway Evangelical Church is to live for Jesus Christ in accordance with the Word of God, and to proclaim Him in the power of the Holy Spirit. Its vision and objective is that local people should become part of the Christian family, worshipping God and working to extend His Kingdom in the local community and worldwide.

PUBLIC BENEFIT

In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission. The Church serves the local community through a range of practical activities across age groups and open to all, and supports others elsewhere similarly engaged in supporting their local communities. The programme of activities for the year accords with the Charity Commission’s guidance on public benefit and, in particular, the specific guidance to charities for the advancement of religion by:

To facilitate this work it is important that we maintain the fabric of the church premises.

Page 2

SALWAY EVANGELICAL CHURCH

TRUSTEES' ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENTS DURING 2021

During 2021 the activities of the Church covered an array of areas. Much activity continued to be completed online due to lockdown constraints. Core focus remained on Sunday worship and preaching, youth work and the organising of a variety of support and outreach events. Life Groups continued to enhance the support to Christian living of those attending. Work with young people continued and included many weekly activities and special events. The Church continued to support the work of several missionaries both in the UK and abroad. Ian Rees continued as Pastor and the Church continued to employ a Family & Community Worker.

The expenses of running the Church and its activities and maintaining the building are met by members and others who may wish to contribute.

LOOKING TO THE FUTURE

It continues to be the aim of Salway to be God's people, living under His Word and showing His love - seeking to grow in Christian maturity, serve others in Christian ministry and spread the good news of Jesus Christ through mission. We aim to achieve this by being Jesus focussed, bible centred and Spirit led, ready for Him to transform lives and change the world. The Church is working alongside other local churches to support the planting of a new church in Clayhall.

We aim to increase our fringe, sharpen our discipleship and invest in the next generation.

In all these plans we aim to be obedient to God’s leading and direction for His Church.

FINANCIAL REVIEW

General Fund

Incoming funds by way of regular donations and gifts were at a reduced level to the previous year. Total Resources Expended reflected the activities undertaken including the employment of workers. There has been a decrease due to lower worker costs and reduced expenses during lockdown. The General Fund balance at the year end remained at a satisfactory level.

Ministry Fund

There has been no allocation to augment the reserve for future expenditure that may be incurred in connection with engaging paid pastoral and administrative support. Future allocations will be made to the fund where appropriate in order to ensure ongoing preparedness to support the accommodation capital costs of the manse.

Renovations Fund

A regular amount is allocated from the General Fund to the Renovations Fund. Renovations were required during the year. The balance in hand is held for ongoing general maintenance and refurbishment.

Legacy Fund

The funds received from a legacy have been transferred to the Legacy Fund. Although the Trustees have full discretion as to the use of the Fund, it is intended to be used for specific projects that support the objectives of the Church.

Page 3

SALWAY EVANGELICAL CHURCH

TRUSTEES' ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021

The Charity's financial and reserves policy is:-

The Trustees have determined that the Charity should aim to hold a minimum of six months' of unrestricted expenses in readily realisable reserves. As at 31 December 2021, based on the expenses incurred for that year, the minimum would be £60,000. The balance of the General Fund in realisable investments and cash balances as at 31 December 2021 is in excess of this amount and therefore the Charity is complying with its reserves policy.

In the opinion of the Trustees the balances as at 31 December 2021 and the current giving of members, were adequate for these objectives.

The Charity has arranged insurance cover which was last reviewed on 31 December 2021 for identified and insurable risks.

Since March 2020 the Charity has taken steps (in line with government advice) to help contain the outbreak of COVID-19. This has included temporary suspensions of physical gatherings and the Charity has had to change how it operates; the Charity has been able to continue many of its activities using on-line media. The Trustees are monitoring income and expenditure and, if it becomes necessary, will take measures to mitigate the impact of COVID-19 on the Charity’s free reserves. As the Charity’s fixed and current asset investments are held in a cash deposit fund, these have not suffered any diminution in value since the balance sheet date.

RISK MANAGEMENT

The Trustees recognise their responsibilities for managing risk.

Principal Risks and Uncertainties

As with many charitable organisations, the majority of the Church’s income is the result of voluntary giving, the vast majority of this comes from the generous, sacrificial and committed giving of the membership of the Church. The Trustees recognise that church membership fluctutates year-by-year and that any prolonged period of change and transition can heighten the risk of this fluctuation. To help manage and mitigate this risk, the Trustees review both income and expenditure at each quarterly meeting. Day-by-day financial management is with the Treasurer and Finance Team Leader, who tailor and adjust expenditure throughout the year to respond to any agreed financial constraints.

Operations

A programme of regular routine maintenance and decorating work is undertaken, under the supervision of the Buildings Team Leader. All obligatory regular inspections to safety, electrical and security equipment were completed. A plan is in place for evacuating the Church in the event of fire or some other emergency. Fire notices are exhibited throughout the building.

Safeguarding

Given the programme of ministry with children and young people and vulnerable adults, the health, safety and protection of these individuals is regarded as being of paramount importance. We operate a formal policy for the safeguarding of children and vulnerable adults.

Page 4

SALWAY EVANGELICAL CHURCH

TRUSTEES' ANNUAL REPORT (Continued) FOR THE YEAR ENDED 31 DECEMBER 2021

Finance

The handling of cash, whilst minimal, is subject to dual control procedures with the objective of minimising the risk of loss or fraud. Expenditure is also subject to strict monitoring and control by the Treasurer and Finance Team Leader. Income and expenditure are monitored on a monthly basis compared with budget.

Data

Handling of data is under the supervision of the Administration Team Leader. We operate a formal Data Privacy Policy.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper 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 Church Accounting Regulations 2006. 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.

In the opinion of the Trustees the accounts set out on pages 6 to 20 comply with statutory requirements, the Charity's governing document and SORP.

The Trustees have approved the above Report.

P I Albon

P I Albon For and on behalf of the Trustees Salway Evangelical Church

3 July 2022

Page 5

SALWAY EVANGELICAL CHURCH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income and endowments from:
Donations and legacies
3a
Charitable activities
3b
Investments
3c
Disposal of tangible assets
Total income and endowments
Expenditure on:
Charitable activities
4
Total expenditure
Net income/(expenditure)
Transfers between funds
2f
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
12,13		 Unrestricted
Restricted Endowment Total funds Total funds
Funds
Funds
Funds
2021
2020
£
£
£
£
£
103,503
2,278
-
105,781
111,251
3,770
-
-
3,770
2,525
125
-
-
125
1,859
500
-
-
500
-
107,898
2,278
-
110,176
115,635
129,731
55
-
129,786
132,734
129,731
55
-
129,786
132,734
(21,833)
2,223
-
(19,610)
(17,099)
7,600
(7,600)
-
-
-
(14,233)
(5,377)
-
(19,610)
(17,099)
1,183,145
243,200
11,338
1,437,683
1,454,782
1,168,912
237,823
11,338
1,418,073
1,437,683

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

All income and expenditure derive from continuing operations.

The notes on page 8-20 form part of these accounts.

Page 6

SALWAY EVANGELICAL CHURCH

BALANCE SHEET AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
6
Investments
Total fixed assets
Current assets
Investments
7
Debtors
8
Cash at bank and in hand
9
Total current assets
Creditors
Amounts falling due within one year
10
Amounts falling due in more than one yea
10
Net current assets/(liabilities)
Net assets
FUNDS
Unrestricted Funds
12
General Fund
Ministry Fund
Renovations Fund
Legacy Fund
Restricted Funds
13
Capital Fund
Other Funds
Endowment Fund
13
Gwendoline Martin Salway Youth Fund
Total Funds		 Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Fund
2021
2020
£
£
£
£
£
295,195
235,600
-
530,795
546,283
-
-
11,338
11,338
11,338
295,195
235,600
11,338
542,133
557,621
839,655
-
-
839,655
854,555
7,749
-
-
7,749
9,129
34,471
2,224
-
36,695
28,263
881,875
2,224
-
884,099
891,947
8,158
1
-
8,159
6,885
-
-
-
-
5,000
873,717
2,223
-
875,940
880,062
1,168,912
237,823
11,338
1,418,073
1,437,683
111,352
-
-
111,352
111,625
411,537
-
-
411,537
418,925
35,372
-
-
35,372
29,694
610,651
-
-
610,651
622,901
-
235,600
-
235,600
243,200
-
2,223
-
2,223
-
-
-
11,338
11,338
11,338
1,168,912
237,823
11,338
1,418,073
1,437,683

The notes on page 8-20 form part of these accounts.

The accounts were approved by the Committee of Trustees and signed on their behalf by:

Date
P I Albon
Trustee
L J Mumford
Trustee
Signed by the Treasurer:
Date
P I Albon
L J Mumford
L P Thrower
3 July 2022
Charity number: 1163347

3 July 2022

L P Thrower

Page 7

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Statutory Information

The Charity is a charitable incorporated organisation registered with the Charity Commission in England & Wales. The Charity's registered number and principal address can be found on the Charity Information page.

2. Accounting Policies

The accounts have been prepared under the historic cost convention, 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 United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011. The Charity meets the definition of a public benefit entity as set out in FRS 102.

The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The Charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.

a) Going Concern

The accounts have been prepared on the going concern basis, as there are no material uncertainties about the Charity's ability to continue. Based on the adequacy of the Charity's reserves as at the balance sheet date, along with their knowledge of the Charity's ability to meet bills, payments and other liabilities as they fall due, the Trustees have a reasonable expectation that the Charity has sufficient resources to continue in operational existence for the foreseeable future.

The following are the accounting policies which have been applied in dealing with material items:-

b) Incoming Resources

Incoming resources are recognised gross on an accruals basis, and are allocated to the General Fund unless gifted on the basis of certain restrictions.

Legacy income is recognised when it meets the three criteria of certainty, entitlement and measurement. This is deemed to be the earlier of the cash receipt or firm notification from the Executor.

Recoverable gift aid is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.

The Church has relied significantly upon volunteers in carrying out its activities during the year. In accordance with paragraph 6.18 of the SORP the role of volunteers has not been recognised as income from donated services in the accounts.

c) Outgoing Resources

Outgoing resources are recognised gross as these are incurred, and are allocated against the General Fund unless incurred specifically for the purposes of any nominated fund.

The Charity makes donations to other institutions and individuals to further its charitable objectives.

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the Accounts, include costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the Charity.

Page 8

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

d) Capitalisation

Capital expenditure on buildings and improvements over £10,000 will be capitalised. Expenditure on equipment and other assets over £5,000 will be capitalised. Amounts under these levels are expensed.

e) Depreciation

The furniture and equipment has been acquired over a number of years and it is not now possible to ascertain original costs. It is carried in the Accounts at a nominal value of £1. New furniture, equipment and other assets will be depreciated over its useful life to any residual value. Donated assets in kind have been taken into account at their estimated market value.

f) Amortisation

The building extension and improvements that were completed in November 2002 are amortised on the straight line basis at a rate estimated to spread the cost evenly over the expected minimum useful life. The rate used is 2%. In respect to the building extension, an appropriate transfer is made from Capital Fund to General Fund to provide a contribution towards the amortisation costs borne by the General Fund. This is in accordance with the purpose and terms on which donations to the Capital Fund are made.

The manse and any improvements are amortised on the straight line basis at a rate estimated to spread the cost evenly over the expected minimum useful life. The rate used is 2%.

The Church has the use of Land and Buildings at Forest Approach, Woodford Green, Essex, the Freehold Title of which is vested in another Deed of Trust of which the CIO is the Trustee. There is an agreement with that Trust for the Church to use the Land and Buildings in perpetuity.

g) Pension Costs

The Charity contributes to defined contribution schemes for its employees. Pension premiums are charged as they are due. The assets of these schemes are held separately from those of the Church in independently administered funds.

h) Funds

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects. Endowment funds are donations that are retained as capital in accordance with the donor's wishes. The nature of the restriction determines whether the endowments represent permanent or expendable endowments.

i) Taxation

The Charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the Charity's income.

j) Financial Instruments

The Charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the Charity expects to pay or receive). The Charity recognises liabilities for the principal of those loans that remain outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).

Page 9

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

k) Exemption from Preparing a Cash Flow Statement

The Charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.

l) Critical Accounting Estimates and Areas of Judgment

The Trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.

Page 10

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

3. Income and endowments Unrestricted Unrestricted **Restricted ** Endowment Total Total
Funds Funds Fund 2021 2020
£ £ £ £ £
a) Donations and legacies
Donations and gifts 84,798 2,278 - 87,076 90,647
Gift Aid 18,705 - - 18,705 20,604
Legacies - - - - -
103,503 2,278 - 105,781 111,251
b) Charitable activities:
Outreach events - - - - -
Youth activities 145 - - 145 226
Teaching and pastoral work 72 - - 72 -
Parenting/Marriage courses 85 - - 85 110
Use of premises 3,441 - - 3,441 2,165
Ten of Those Commission 27 - - 27 24
3,770 - - 3,770 2,525
c) Income from investments
Interest 123 - - 123 1,835
Gwendoline Martin Salway Youth Fund interest 2 - - 2 24
125 - - 125 1,859
d) Gains on disposal of tangible fixed assets
Sale of Minibus 500 - - 500 -
500 - - 500 -

Page 11

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

4.
Expenditure
The work of the Church
Missionary and charitable giving
Missionary support
4a
Clayhall Church Plant
11b
Gifts and subscriptions
Ministry
Salaries, pensions and statutory costs
5
Youth activities
Teaching and pastoral work
Parenting/Marriage courses
Events
Outreach events
Publicity
Buildings and equipment
Depreciation
Insurance
Church building utilities
Safety and security
Cleaning services
Church building maintenance
Manse utilities
Manse maintenance
Minibus
Equipment
Administration
Stewardship Services Payroll
Stewardship Services Helpline
Examination of Accounts
Christian Music Association - Copyright Fee
Just Giving - Subscription Fee
Bank Charges
Printing
Catering/Refreshments
Sundries		 Unrestricted
Restricted Endowment
Total
Total
Funds
Funds
Fund
2021
2020
£
£
£
£
£
21,170
-
-
21,170
18,520
-
-
-
-
-
5,400
-
-
5,400
640
26,570
-
-
26,570
19,160
60,665
-
-
60,665
68,876
518
-
-
518
862
773
-
-
773
2,123
49
-
-
49
198
62,005
-
-
62,005
72,059
978
-
-
978
963
413
-
-
413
923
1,391
-
-
1,391
1,886
14,988
-
-
14,988
14,988
2,983
-
-
2,983
2,457
3,727
-
-
3,727
3,550
1,440
-
-
1,440
1,437
5,604
-
-
5,604
3,065
580
-
-
580
1,507
5,080
-
-
5,080
4,795
102
-
-
102
504
1,120
-
-
1,120
1,477
83
-
-
83
891
35,707
-
-
35,707
34,671
664
-
-
664
631
90
-
-
90
90
1,260
-
-
1,260
1,140
1,005
-
-
1,005
869
-
54
-
54
-
8
1
-
9
-
288
-
-
288
354
128
-
-
128
59
615
-
-
615
1,815
4,058
55
-
4,113
4,958
129,731
55
-
129,786
132,734

The fee payable to the independent examiner for examining the accounts was £1,200 (2020: £1,200), in addition the Charity paid £754 (2020: £721) to Stewardship for payroll bureau and consultancy services.

Page 12

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

4a. Missionary Support

Agape
Christian Education Project
International Mission to Jewish People (formerly Christian Witness to Israel)
Eurasian Ministries
European Christian Mission
Gideons
Pastor Training International
Gifts to individual missionaries
5.
Staff and Trustees
Salaries and wages
Employer's National Insurance costs
Pension costs
Other
Total staff costs		 2021
2020
£
£
3,120
4,920
2,400
2,400
600
600
5,600
600
4,650
4,800
-
400
1,200
1,200
3,600
3,600
21,170
18,520
2021
2020
£
£
51,932
57,747
417
1,765
8,316
8,464
-
900
60,665
68,876

During 2021 the Church's Key Management consisted of two employees (2020: three/two), the Pastor and the Family and Community Worker. The Pastor in Training terminated his employment on 31 March 2020. Aside from the Pastor and Family and Community Worker, its activities are carried out by volunteers.

During 2021 the Church also employed a cleaner.

No staff received salaries at a rate of more than £60,000 per annum.

No remuneration or expenses were paid to any Trustee during the year.

Donations totalling £39,217 (2020: £38,201) were received from Trustees during the course of 2021.

6. Tangible Assets

Cost
At 1 January 2021
Additions/Improvements
At 31 December 2021
Accumulated Amortisation/Depreciation
At 1 January 2021
Charge for the Year
Eliminated on Disposal
At 31 December 2021
Net book value at 31 December 2021
Net book value at 1 January 2021		 Buildings &
Manse
Minibus Furniture &
Tangible
Improvements
Equipment
Assets
£
£
£
£
£
380,043
369,420
5,500
1
754,964
-
-
-
-
-
380,043
369,420
5,500
1
754,964
136,843
66,838
5,000
-
208,681
7,600
7,388
-
-
14,988
-
-
500
-
500
144,443
74,226
5,500
-
224,169
235,600
295,194
-
1
530,795
243,200
302,582
500
1
546,283

Page 13

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

7. Investments Held in Money Funds

COIF Charities Deposit Fund
8.
Debtors and Prepayments
Tax recoverable
Other debtors
Prepayments
9.
Cash at Bank and in Hand
Bank operating accounts
Bank deposits
Petty cash
10.
Creditors
Liabilities Falling Due Within One Year
Accruals
Liabilities Falling Due In More Than One Year
Accruals		 2021
2020
£
£
839,655
854,555
839,655
854,555
2021
2020
£
£
3,347
4,134
32
10
4,370
4,985
7,749
9,129
2021
2020
£
£
15,689
10,009
20,906
18,154
100
100
36,695
28,263
2021
2020
£
£
8,159
6,885
8,159
6,885
2021
2020
£
£
-
5,000
-
5,000

11a. Pension Commitments

During the year employer's pension contributions totalling £8,316 (2020: £8,464) were payable to defined contribution personal pension schemes including payments made under salary sacrifice arrangements. No pension contributions were owing at the balance sheet date (2020: £nil).

11b. Other Commitments

In order to support the planting of a new church in Clayhall, the Trustees have the intention to make a donation of £5,000 next year to the Clayhall project. This will be allocated from the Legacy Fund.

Page 14

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

12. Unrestricted Funds

General Fund

This is the Charity's operating fund and arose from an excess of incoming resources over outgoing resources over time. The Trustees consider it adequate for its purpose.

Ministry Fund

To provide a reserve for future expenditure that may be incurred in engaging pastoral and administrative support, particularly through employment of paid workers, the Church Trustees have set aside funds from surplus General Fund balances.

Renovations Fund

This fund arises out of monies set aside on a regular basis out of the General Fund and is held to fund any repairs and improvements to the Church buildings used by the Charity and the manse. The Trustees consider this fund to be adequate for the immediately identified needs.

Legacy Fund

This fund arose from a legacy of £670,001 received in January 2018. The Trustees intend to use the fund for specific projects that support the objectives of the Church.

Page 15

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

12. Unrestricted Funds (continued)

12.
Unrestricted Funds (continued)
Notes
Income and endowments from:
3
Donations and legacies
Charitable activities
Investments
Disposal of tangible fixed assets
Total income and endowments
Expenditure on:
4
Missionary and charitable giving
Ministry
Events
Buildings and equipment
Administration
Total expenditure
Net income/(expenditure) before transfers
Transfers between funds:
General Fund to Renovations Fund
Capital Fund to General Fund
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Notes General Fund
2021
2020
£
£
103,503
111,251
3,770
2,525
125
1,859
500
-
107,898
115,635
14,320
19,160
62,005
72,059
1,391
1,886
26,197
23,835
4,058
4,958
107,971
121,898
(73)
(6,263)
(7,800)
(7,800)
7,600
7,600
(273)
(6,463)
111,625
118,088
111,352
111,625		 Ministry Fund
2021
2020
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,388
7,388
-
-
7,388
7,388
(7,388)
(7,388)
-
-
-
-
(7,388)
(7,388)
418,925
426,313
411,537
418,925		 Unrestricted Funds
Renovations Fund
2021
2020
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,122
3,448
-
-
2,122
3,448
(2,122)
(3,448)
7,800
7,800
-
-
5,678
4,352
29,694
25,342
35,372
29,694		 Legacy Fund
2021
2020
£
£
-
-
-
-
-
-
-
-
-
-
12,250
-
-
-
-
-
-
-
-
-
12,250
-
(12,250)
-
-
-
-
-
(12,250)
-
622,901
622,901
610,651
622,901		 Total
2021
£
103,503
3,770
125
500		 2021
£
-
-
-
-		 2021
£
-
-
-
-		 2021
£
-
-
-
-		 2021
£
103,503
3,770
125
500		 2020
£
111,251
2,525
1,859
-
107,898 - - - 107,898 115,635
14,320
62,005
1,391
26,197
4,058		 -
-
-
7,388
-		 -
-
-
2,122
-		 12,250
-
-
-
-		 26,570
62,005
1,391
35,707
4,058		 19,160
72,059
1,886
34,671
4,958
107,971 7,388 2,122 12,250 129,731 132,734
(73)
(7,800)
7,600		 (7,388)
-
-		 (2,122)
7,800
-		 (12,250)
-
-		 (21,833)
-
7,600		 (17,099)
-
7,600
(273)
111,625		 (7,388)
418,925		 5,678
29,694		 (12,250)
622,901		 (14,233)
1,183,145		 (9,499)
1,192,644
111,352 411,537 35,372 610,651 1,168,912 1,183,145

Page 16

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

SALWAY EVANGELICAL CHURCH

13. Restricted and Endowment Funds

a) Restricted Fund

Capital Fund

This fund arose out of resources received to improve the property used by the Charity by extending the Church building. The funds are restricted by virtue of having been invested into the Church building concerned and therefore not separately realisable. The Trustees consider this fund to be adequate for its purpose.

Other Funds

These funds arise out of giving specifically for the support of nominated activities. Disbursements are at the discretion of the Church Trustees in line with any conditions of the gifts made. Currently there are funds awaiting to be utilised for the installation of a defibrillator available to the community.

b) Endowment Fund

Gwendoline Martin Salway Youth Fund

The Gwendoline Martin Salway Youth Fund was donated under the will of a deceased Church member and from gifts in her memory on the basis that capital is retained and the income thereon is paid directly into the General Fund for the support of church youth work. Although the Trustees consider this fund to be adequate for its purpose, the fund remains open to further donations for youth work on terms consistent with the original bequest.

Church Buildings

On 6 January 2017 the CIO took responsibility as Trustee for the Salway Hall Woodford Green Declaration of Trust 1932 which has freehold title for the land and buildings of the church at Forest Approach. The CIO has use of these buildings without cost in perpetuity on the proviso it maintains and insures the property.

Page 17

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

13. Restricted and Endowment Funds (continued)

Income and endowments from:
Donations and legacies
Charitable activities
Investments
Disposal of tangible fixed assets
Total income and endowments
Expenditure on:
Misionary and charitable giving
Ministry
Events
Buildings and equipment
Administration
Total expenditure
Net income/(expenditure) before transfers
Transfers between funds:
Capital Fund to General Fund
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Notes
3
4		 Capital Fund
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
(7,600)
(7,600)
250,800
243,200		 Other Funds
2021
2020
£
£
2,278
-
-
-
-
-
-
-
2,278
-
-
-
-
-
-
-
-
-
55
-
55
-
2,223
-
-
-
2,223
-
-
-
2,223
-
Restricted Funds		 Total
2021
2020
£
£
2,278
-
-
-
-
-
-
-
2,278
-
-
-
-
-
-
-
-
-
55
-
55
-
2,223
-
(7,600)
(7,600)
(5,377)
(7,600)
243,200
250,800
237,823
243,200		 Gwendoline Martin
Salway Youth Fund
Endowment Fund		 Gwendoline Martin
Salway Youth Fund
Endowment Fund
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
(7,600)
(7,600)
243,200
235,600		 2021
£
2,278
-
-
-
2,278
-
-
-
-
55
55
2,223
-
2,223
-
2,223		 2021
£
2,278
-
-
-
2,278
-
-
-
-
55
55
2,223
(7,600)
(5,377)
243,200
237,823		 2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,338
11,338		 2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,338
11,338

Page 18

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

14. Fund Movements

During the year the movements in the charity's funds were as follows:

Unrestricted Funds
General Fund
Ministry Fund
Renovations Fund
Legacy Fund
Restricted Funds
Capital Fund
Other Funds
Endowment Fund
Aggregate of Funds		 Opening
Incoming
Outgoing
Transfers
Gains and
Closing
Balance
Resources
Resources
in the Year
Losses
Balance
2021
2021
2021
2021
2021
2021
£
£
£
£
£
£
111,625
107,898
(107,971)
(200)
-
111,352
418,925
-
(7,388)
-
-
411,537
29,694
-
(2,122)
7,800
-
35,372
622,901
-
(12,250)
-
-
610,651
1,183,145
107,898
(129,731)
7,600
-
1,168,912
243,200
-
-
(7,600)
-
235,600
-
2,278
(55)
-
-
2,223
243,200
2,278
(55)
(7,600)
-
237,823
11,338
-
-
-
-
11,338
1,437,683
110,176
(129,786)
-
-
1,418,073

In the previous year the movements in the charity's funds were as follows:

Unrestricted Funds
General Fund
Ministry Fund
Renovations Fund
Legacy Fund
Restricted Funds
Capital Fund
Other Funds
Endowment Fund
Aggregate of Funds		 Opening
Incoming
Outgoing
Transfers
Gains and
Closing
Balance
Resources
Resources
in the Year
Losses
Balance
2020
2020
2020
2020
2020
2020
£
£
£
£
£
£
118,088
115,635
(121,898)
(200)
-
111,625
426,313
-
(7,388)
-
-
418,925
25,342
-
(3,448)
7,800
-
29,694
622,901
-
-
-
-
622,901
1,192,644
115,635
(132,734)
7,600
-
1,183,145
250,800
-
-
(7,600)
-
243,200
-
-
-
-
-
-
250,800
-
-
(7,600)
-
243,200
11,338
-
-
-
-
11,338
1,454,782
115,635
(132,734)
-
-
1,437,683

Page 19

SALWAY EVANGELICAL CHURCH

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

15. Analysis of Net Assets Between Funds

The assets and liabilities of the various funds were as follows:

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities		 Unrestricted
Restricted Endowment
Total
Funds
Funds
Fund
2021
£
£
£
£
295,195
235,600
-
530,795
-
-
11,338
11,338
881,875
2,224
-
884,099
(8,158)
(1)
-
(8,159)
1,168,912
237,823
11,338
1,418,073

In the previous year the assets and liabilities of the various funds were as follows:

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities		 Unrestricted
Restricted Endowment
Total
Funds
Funds
Fund
2020
£
£
£
£
303,083
243,200
-
546,283
-
-
11,338
11,338
891,947
-
-
891,947
(11,885)
-
-
(11,885)
1,183,145
243,200
11,338
1,437,683

Page 20

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

Salway Evangelical Church Trust

I report to the trustees on my examination of the accounts of Salway Evangelical Church Trust (the charity) for the year ended 31 December 2021 on pages 6 to 20, which have been prepared on the basis of the accounting policies set out on page 8.

Responsibilities and basis of report

As the charity 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 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.

L du Plessis

Lourens du Plessis ACA CA(SA)

5 July 2022

For and on behalf of: Stewardship 1 Lamb's Passage London EC1Y 8AB

Page 21