WAYPOINT
operating as WAYPOINT CHURCH
(a charitable incorporated organisation)
TRUSTEES’ ANNUAL REPORT
and
AUDITED FINANCIAL STATEMENTS
31 December 2020
Charity registration number: 1168433
WAYPOINT operating as WAYPOINT CHURCH
(a charitable incorporated organisation)
CONTENTS
31 December 2020
Page
Reference and administrative details 3
Trustees’ Annual Report 4 to 9
Statement of trustees’ responsibilities 10
Audited financial statements:
Independent auditor’s report 11 to 13
Balance sheet 14
Statement of financial activities 15
Statement of cash flows 16
Notes to the financial statements 17 to 33
2
WAYPOINT operating as WAYPOINT CHURCH
(a charitable incorporated organisation)
REFERENCE AND ADMINISTRATIVE DETAILS
31 December 2020
THE CHARITY
Registered name : Waypoint
Operating name : Locks Heath Free Church to August 2019/
Waypoint Church from September 2019
Legal structure : Charitable Incorporated Organisation
Operating address : 255 Hunts Pond Road, Titchfield Common,
Fareham, Hampshire, PO14 4PG
Registered charity number : 1168433 (England and Wales)
Telephone number : 01489 579669
Website : www.waypointchurch.org.uk
Email address : admin@waypointchurch.org.uk
BOARD OF TRUSTEES
Ministers
Senior Minister : Rev. Mark Madavan (1)
Associate Minister : Jim Privett (1)
Elders
Andy Banes Graham Griffiths Rachel Keen Kevin Leech Dan Richards
Chris Snook Felicity Shaw (4)
Other elected trustees
Office Manager and Church Secretary : Pauline Griffiths (1)
Church Treasurer : Graham Woodyet
Family Life Team Leader : Sarah Sawyers (1) (5)
Facilities Team Leader : Paul Warner (3)
Welcoming and Integration Team Leader : Rachel Keen
Mission Team Leader : Pete McNulty
Children’s Ministry Team Leader : Claire Johnson (1)
Discipleship & Small Groups Team Leader : Rev. Keith Foster (1) (2)
There were no changes in the membership of the Board of Trustees at the date of approval
of this report.
(1) Staff member (2) Appointed September 2020 (3) Re-elected November 2020
(4) Resigned June 2020 (5) Resigned December 2020
PROFESSIONAL ADVISERS
Bankers: CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling,
Kent, ME19 4JQ
Auditors: Wood, Hicks & Co Ltd, Chartered Accountants and Statutory
Auditors, Units 1-2 Warrior Court, 9-11 Mumby Road, Gosport,
Hampshire, PO12 1BS
Solicitors: Anthony Collins Solicitors LLP, 134 Edmund Street,
Birmingham, B3 2ES
3
WAYPOINT
(a charitable incorporated organisation)
TRUSTEES’ ANNUAL REPORT
Year ended 31 December 2020
The Trustees have pleasure in submitting their annual report and the financial statements
of Waypoint (the Church) as at and for the year ended 31 December 2020.
SECTION 1 – OBJECTIVES AND ACTIVITIES
Description of the Church’s trust
The principal objective of the Church is the advancement of the Christian Faith according
to the principles of the Baptist denomination including the advancement of education,
community service and such other general charitable purposes in such parts of the United
Kingdom and the world as the Church shall determine.
Aims
In order to achieve this objective, the Church provides a variety of activities both to
its membership and to the community. The aim is to show the love of Jesus Christ and to
bring people into a closer relationship with Him. In fulfilling this purpose, the Church
engages in a range of activities either on its own or with others. Due to the Covid-19
pandemic (the Pandemic) and the resultant lockdowns, activities were restricted and new
activities were developed to keep engaged with the congregation and community.
Strategies to achieve aims
Central to the work and witness of the Church is the provision of regular public services
of Christian worship. These services take place each Sunday at 9am and 11am and include
preaching, teaching and Communion. A programme for children and young people aged 0-16
years is available during the 11am service. There are also occasional All Age Services.
The Church has a passion for reaching the community and anybody is free to attend our
services. Church services, events and activities are advertised on our website at
www.waypointchurch.org.uk. Due to the Pandemic, Sunday services and the Sunday programme
for children and young people were reduced and adapted. Sunday services were held online
and, as restrictions eased, either pre-recorded or live services were held for a limited
congregation.
The Church runs a number of small groups aimed at developing faith and discipleship and
providing pastoral care. Due to the Pandemic, some Small Groups met online via Zoom. As
restrictions eased, some Small Groups were able to meet on Church premises. The
Gathering is an opportunity for small groups to meet together, learn together and
encourage one another and, for anyone interested in joining a small group, to find out
more.
The Church leadership places great importance on reaching the local community in a
variety of ways as can be seen from the activities undertaken set out below.
Measurement of attainments
Although numbers do not reflect the spiritual strength of a church, they do give an
indication of growth. During 2020, one person was received into membership and no-one
was baptised. As at 31 December 2020, the membership stood at 225. The Trustees believe
that 2020 was a positive year in the life of the Church, particularly in its response to
the Pandemic that resulted in:
(a)services and other Church meetings being successfully conducted online; and,
(b)the formation of the Waypoint Hub providing food and other welfare assistance to
those in the local community who have been adversely affected by the lockdowns.
Activities vary from time to time. Review of specific aims by the Leadership is made
throughout the year with activities being initiated, expanded, or closed, as judged
appropriate. While many churches have suffered a reduction in their congregations as a
consequence of the lockdowns, the Trustees are thankful to God that membership has
remained stable in 2020.
4
WAYPOINT
(a charitable incorporated organisation)
TRUSTEES’ ANNUAL REPORT (continued)
Year ended 31 December 2020
SECTION 2 – ACHIEVEMENTS AND PERFORMANCE
A number of activities take place during the week for children aged 0 – 11 years, young
people aged 11 – 18 years and has attendance of up to 600 per week. These include a
Parent and Toddler Group, a girls club, a boys club, a youth club and small groups for
young people’s Bible study. Due to the Pandemic, these activities were reduced and
adapted. Some activities were able to continue online via Zoom and met on church
premises as restrictions eased.
Due to Covid-19 restrictions, our annual Summer Holiday Club week for children took on a
different format. We pre-recorded five 30 minute videos to watch at home and made up
craft and activity packs which families collected on a daily basis. A small team
provided simple socially distanced activities to engage with the families when they came
to collect their packs each morning. We created a closed Facebook community page for
families to share photos and videos of what they were doing at home. 42 families took
part.
The Children’s Ministry Team Leader and the Associate Minister are involved in local
primary and senior schools in lessons and mentoring. Interns worked in the youth and
children’s ministry and with the technical and staff team to gain knowledge of all
aspects of church life.
Activities for senior citizens and a Luncheon Club are provided regularly. Due to the
Pandemic, these activities were reduced.
The Church runs a programme of parenting courses for Church and community parents. Due to
the Pandemic, these activities were reduced and some took place online.
The Family Life Team Leader worked closely with families in our community via the
Church’s Parent and Toddler Group and the Home School Link Worker based at a local
primary school.
The Family Life Team Leader and team have been able to provide one-to-one parenting and
marriage support for individuals and families as needs arise.
A seven session Marriage Course was delivered for married couples and the Church also
runs a Marriage Preparation course for engaged couples as required.
Alpha is run for people interested in discovering more about Christianity. Due to the
Pandemic, the course was held online.
Kintsugi Hope is a course designed for equipping people in their mental health and
wellbeing. The course took place online due to the Pandemic.
The Church runs a Golf Society and Football Team and encourage membership from church
attenders and non-attenders.
The ‘Grand 5’ supported three mission projects including Enable the Children in Sierra
Leone, Rocks Project in Uganda and an orphanage in China in partnership with
International China Concern.
Due to the Pandemic, all four planned short-term mission projects to Uganda, Sierra
Leone, China and Greece were cancelled. Three young people had their gap year mission
placements either cancelled or considerably shortened and altered.
The Church supported the Baptist Union’s Missionary Society and Home Mission Fund, Open
Doors (serving persecuted Christians around the world) and also supports the anti-
trafficking organization, Hope for Justice, to raise awareness. The Church also supported
Elpitha Hope in Greece working in refugee camps.
The Church supported emergency disaster appeals of International China Concern for their
Covid-19 response, Christian Aid in their Hurricane Iota appeal, Tearfund in their
Ethiopia humanitarian crisis appeal and International Rescue Committee in their Camp
Moria refugee appeal.
The Church supported a young person as they commenced their two year mission training and
placement with Youth With A Mission initially being based in Vancouver, Canada.
5
WAYPOINT
(a charitable incorporated organisation)
TRUSTEES’ ANNUAL REPORT (continued)
Year ended 31 December 2020
SECTION 2 – ACHIEVEMENTS AND PERFORMANCE (continued)
The Church has supported local mission including Medaille Trust in Southampton, schools
in the community and The Family Support Service in Fareham.
Church Members served as volunteers in other local charities and organisations. These
included reading mentors for primary school children and collecting food and household
products for Fareham and Gosport Basics Bank.
Rooms in the premises are hired by an independent Pre-school. The building is used for
community meetings but none took place during 2020 due to the Pandemic.
Waypoint Café opened for a few weeks but was forced to close again because of the renewed
lockdown restrictions.
Christmas services were held throughout December offering our congregation and community
a variety of styles. Due to the Pandemic, these were held either live with a small
congregation, outdoors or online.
The Ministers regularly meet with Ministers from UK and local Churches. A Team attended a
training conference for large UK churches which impacted the training and direction for
Trustees.
The Trustees confirm they have complied with the duty imposed by the Charities Act 2011
and have given due regard to the guidance in respect of public benefit.
The Church is dependent on its membership serving as volunteers in all aspects of the
Church’s activities.
In March 2020, in response to the Pandemic which was sweeping the world, we wanted to
bless and serve our local community. To do this we set up Waypoint Hub with the support
of Fareham Borough Council. During the first national lockdown a team of 50 volunteers
from the church and community provided three essential services – Food Parcel deliveries,
Boredom Packs for isolated adults, Helps – such as shopping, prescription collection.
Grant funding and donations of food and finances from Trusts, local organisations,
businesses and individuals in our church and community have sustained this ministry. In
2020 we carried out 2,247 Helps. Waypoint Hub is now well known in our community and we
have a dedicated room within the church building to store food and run our twice weekly
drop-in sessions from.
SECTION 3 - FINANCIAL REVIEW
The financial results for the year, together with a summary of the accounting policies
adopted are set out in the accompanying financial statements. The Church had a surplus on
General Fund operations of £73,253 compared with a deficit of £7,754 in 2019 (excluding
the exceptional credit arising from the reduction in the defined benefit pension
liability of £23,435 explained in Note 29).
The Church continues to raise the funds which it needs to carry on its activities and
provide for additional fitting out costs for both buildings from within its own
membership and congregation. Wider appeals were made and grants towards this project
totalling £18,000 (2019: £62,000) were gratefully received. In addition, further grants
totalling £12,225 were received from the local authority and community organisations in
2020 in support of Waypoint Hub. See Note 13 for further details.
The Church’s total reserves at 31 December 2020 were £4,197,542 (2019: £4,105,368) of
which the Waypoint Hub restricted fund was £18,921 (2019: nil) and designated funds for
functional and investment properties totalled £3,820,433 (2019: £3,957,893). Going
forward, the functional freehold properties fund will be reduced by an amount equal to
the capital repayments of the mortgage loan and the buildings depreciation charge each
year. The investment property fund will increase or decrease according to the variation
in fair value adjustment recorded in the SOFA each year. These funds can only be
realised by the disposal of the properties to which they relate.
6
WAYPOINT
(a charitable incorporated organisation)
TRUSTEES’ ANNUAL REPORT (continued)
Year ended 31 December 2020
SECTION 3 - FINANCIAL REVIEW (continued)
The Church’s reserves on general fund at the balance sheet date amounted to £357,838
compared with £147,125 at 31 December 2019. Liquid resources increased from £39,072 in
2019 to £313,527 at 31 December 2020 largely as a result of not being able to fully
engage in established Church activities and the delay in finalising the building and
fitting out projects as a consequence of the Covid-19 lockdowns.
The Waypoint Café opened on 3 November 2020 and traded until 23 December 2020 when it
closed because of lockdown restrictions (see Notes 14 and 17, and section 4 below).
It is the policy of the Church to hold a cash reserve equivalent to six months’ general
running costs (including salaries and mortgage payments) to cover unforeseen emergencies.
In the previous year, in order to complete the new church building and basic fit-out, the
Trustees agreed for cash reserves to be temporarily reduced to three months’ operating
costs. However, the lockdowns have resulted in a build-up of liquid resources such that
the six-month operating reserves level has temporarily been restored. Once the Covid
operating restrictions are lifted, in an effort to complete the build and fit-out, it is
possible that the Trustees may consider the reduction of its reserves policy to three
months for a limited period not expected to exceed 18 months.
The Trustees have made an assessment of the major risks facing the Church, and are
satisfied that there are policies in place to minimise these risks.
The Church is dependent on its membership serving as volunteers in all aspects of the
Church’s activities. The Trustees consider that it is impractical to place an economic
value on such service.
SECTION 4 – PLANS FOR FUTURE PERIODS AND SUBSEQUENT EVENTS
Future commitments
Completion of the South Building was confirmed by Building Control inspectors in 2019.
Certain finishing works outside the scope of Building Control regulations continued
throughout 2020. The Church is continuing to fundraise for further fitting out works
that are expected to cost around £280,000 but no firm timetable has been set for when
these works are to be carried out. Completion of these works will enable the Church to
provide further activities, courses and services for the Church congregation and for the
community on its premises.
Waypoint Café
It is intended, subject to government regulations and guidance, to resume and develop
this activity in the spring of 2021 as part of the Church’s community outreach.
Since the café is a trading activity to be carried on by the Church, the Trustees plan to
disclaim the Church’s full entitlement to VAT zero-rating on the construction of the
South Building for the proportion of the premises that is to be used by the Waypoint Café
activity. The building contractors have been notified and a VAT charge, expected to
amount to around £40,000, is to be invoiced by them on certified completion of the
building works.
SECTION 5 – STRUCTURE, GOVERNANCE AND MANAGEMENT
Legal structure
This CIO was formed as Locks Heath Free Church on 26 July 2016 for the sole purpose of
absorbing the charitable business of an unincorporated charitable trust (the Trust) with
the same name. Following this incorporation, the entire charitable activities of the
Trust together with all the Trust’s assets and liabilities were transferred to the CIO
effective 1 January 2017. The legal title to the premises and land occupied by the church
are held by the Baptist Union Corporation Ltd on Trusts which are entirely compatible
with its objects.
7
WAYPOINT
(a charitable incorporated organisation)
TRUSTEES’ ANNUAL REPORT (continued)
Year ended 31 December 2020
SECTION 5 – STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)
Legal structure (continued)
At a Church Meeting in November 2018 the members voted to change the name from Locks
Heath Free Church to Waypoint. This change was registered by the Charity Commission on 12
December 2018 but the operating name of Locks Heath Free Church continued to be used
until 31 August 2019 while other administrative matters concerning the name change were
concluded. Further, on 3 April 2019 the Church obtained the permission of the Charity
Commission to operate as Waypoint Church and this name has been used instead of Locks
Heath Free Church from 1 September 2019.
The CIO is governed by a Constitution that was filed with the Charity Commission as part
of the incorporation process. This constitution follows the model agreed by The Baptist
Union Corporation of Great Britain and approved by the Church members in Special meeting.
The Trustees are elected by a Special Church Members’ Meeting on a three-year rotation.
The board of the elected Trustees is known as the Full Leadership Team and all operating
decisions are made by them.
Governance concerning Church membership
Members of the Church are accepted in accordance with the Governing Constitution which
requires them:
-
to be or to have been publicly baptised on the profession of faith in Jesus Christ; or,
-
following other modes of baptism to renew their public profession of faith in Jesus Christ; or,
-
who may be considering baptism.
Members’ Meetings normally take place five timesper year. Due to the Pandemic, Church
Meetings were reduced during 2020 and a Church Meeting, which included the AGM and a
Special Church Meeting, was held online. The members’ meeting has responsibility for the
overall policy of the Church. In accordance with the Constitution, the members appoint
Trustees who, together with the Ministers, Church Secretary and Treasurer, and
collectively known as the Full Leadership Team, are responsible for the day-to-day
running of the Church’s work and witness and for the financial and legal aspects of the
Church. The Trustees meet regularly. Due to the Pandemic, Trustees’ Meetings were
reduced during 2020 and held online. The Staff Team meet weekly and work on the premises
and are available for enquiries from the community.
All members are encouraged to take an appropriate part in the spiritual and practical
tasks involved in furtherance of the Church’s aims.
Relevant matters may be submitted to the Church Meeting by the Trustees for guidance, or
may be raised by members in Church Meetings for further consideration by the Trustees.
Though the Governing Document permits decisions to be made at quorate Church Meetings by
appropriate majorities, the Church seeks to work by consensus wherever possible.
Other governance matters
The Church is affiliated to the Baptist Union of Great Britain (the BU) and receives
guidance from them on a range of regulatory matters which the Church implements as
appropriate. However, the BU has no direct influence upon the operating policies of the
Church.
All decisions are taken by Trustees who are accountable to the Church Meeting and work
within agreed budgets.
The Church follows the Charity Commission guidance concerning the induction and training
of Trustees.
Staff salaries including Ministers’ stipends are reviewed annually by a pay review
committee formed of unremunerated Trustees and other Church Members and their
deliberations are reported to the Trustees.
8
WAYPOINT
(a charitable incorporated organisation)
TRUSTEES’ ANNUAL REPORT (continued)
Year ended 31 December 2020
SECTION 5 – STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)
Other governance matters ( continued )
The Church operates a Safe to Grow policy and systems to ensure that all people working
with those under 18 are appropriately vetted, and undertakes the necessary Disclosure and
Barring Service (DBS) checks. The Church operates a Safe to Belong policy and system to
ensure that all people working with adults at risk are similarly vetted and DBS checked.
The Church ensures good practice in First Aid, Food Safety and Food Hygiene by making
training available.
The Church holds Insurance with the Baptist Insurance Companyincluding Employer’s
Liability Insurance.
By order of the Board of Trustees,
……………………………………………………………………………
P Griffiths (Mrs)
Church Secretary
12 May 2021
9
WAYPOINT
(a charitable incorporated organisation)
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
Responsibilities relating to the financial statements
Law applicable to charities in England and Wales requires the Trustees to prepare
financial statements for each accounting period which give a true and fair view of the
Charity’s financial activities during the period and of its financial position at the end
of the financial period. In preparing financial statements giving a true and fair view,
the Trustees should follow best practice and:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards and recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
Other responsibilities
The Trustees are also responsible for:
-
keeping adequate 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.
-
safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
-
the maintenance and integrity of the Charity and financial information included on the Charity’s website.
10
The Board of Trustees
Waypoint operating as Waypoint Church
255 Hunts Pond Road
Titchfield Common, Fareham,
Hampshire PO14 4PG
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF WAYPOINT
(a charitable incorporated organisation)
Opinion
We have audited the financial statements of Waypoint (the Church) for the year ended 31
December 2020 which comprise the balance sheet, statement of financial activities,
statement of cash flows and notes to the financial statements, including a summary of
significant accounting policies. The financial reporting framework that has been applied
in their preparation is applicable law and United Kingdom Accounting Standards, including
Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable
in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting
Practice).
In our opinion, the financial statements:
-
give a true and fair view of the state of the Church’s affairs as at 31 December 2020 and of its incoming resources and application of resources for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,
-
have been prepared in accordance with the requirements of the Charities Act 2011 (the Act).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs
(UK)) and applicable law. Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit of the financial statements
section of our report. We are independent of the Church in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the UK,
including the Financial Reporting Council’s Ethical Standard, and the provisions
available for small entities, in the circumstances set out in Note 2 to the financial
statements, and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Auditor’s responsibilities in respect of reporting on irregularities, including fraud
As part of an audit in accordance with International Standards on Auditing, we exercise
professional judgement and maintain professional scepticism throughout the audit and, in
doing so, assess the risks of material misstatement of the financial statements whether
due to fraud or error. Such irregularities are instances of non-compliance with laws and
regulations. We design procedures in keeping with our responsibilities to detect
material misstatements arising from error or fraud. The extent to which our procedures
are capable detecting such irregularities is set out below.
The Church’s routine internal accounting control procedures that require two Church
members/staff to be involved in the handling of cash could not be applied because of the
Covid-19 pandemic. This difficulty was exacerbated by the creation of the Waypoint Hub
(the Hub) that sought to provide welfare assistance to persons or families in the local
community who had been adversely affected by the Pandemic. The Hub is managed by a
senior member of Church staff and its activities are financed by grants, monetary
donations and gifts of food and other household necessities. The Hub’s liquid resources
are used as necessary to buy required items and these, together with donated goods, are
distributed free-of-charge to beneficiaries according to their needs. Evidence of
donations of goods and cash received was not maintained in a form that was susceptible to
testing by conventional audit procedures and, therefore, we consider that the audit was
not capable of detecting irregularities (should any exist) in this regard. However, we
are satisfied that any misstatement of net income arising from the Hub’s activities is
unlikely to be material to the financial statements as a whole and, accordingly, our
opinion is not modified in this respect.
11
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF WAYPOINT (continued)
Material uncertainty related to going concern
We draw attention to Note 31 in the financial statements, which indicates that the
Church’s commitment to meet commercial mortgage repayments that commenced in 2019 is, in
part, dependent upon Church members honouring non-binding pledges to this end made in
2017. As stated in the Note, since these pledges are not enforceable and will inevitably
change over time, a material uncertainty exists that may cast doubt upon the Church’s
ability to continue as a going concern at some time in the future.
Further, the Note also refers to the financial uncertainty to the Church and its
congregation as a consequence of the Pandemic which cannot be reliably measured at the
date these financial statements are approved for issue. Our opinion is not modified in
respect of these matters.
In auditing the financial statements, we have concluded that the Trustees’ use of the
going concern basis of accounting in the preparation of the financial statements was
appropriate.
Our responsibilities and the responsibilities of the Trustees with respect to going
concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Trustees’ Annual Report,
other than the financial statements and our auditor’s report thereon. The Trustees are
responsible for the other information. Our opinion on the financial statements does not
cover the other information and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to have been materially misstated.
If we identify such material inconsistencies or apparent misstatements, we are required
to determine whether there is a material misstatement in the financial statements or a
material misstatement of the other information. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the
Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our
opinion:
-
the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
-
sufficient accounting records have not been kept; or
-
the financial statements are not in agreement with the accounting records; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities set out on page
10, the trustees are responsible for the preparation of the financial statements and for
being satisfied that they give a true and fair view, and for such internal control as the
trustees determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the
Church’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the
trustees either intend to liquidate the Church or to cease operations, or have no
realistic alternative but to do so.
12
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF WAYPOINT (continued)
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Act and report in accordance
with it and the relevant regulations made or having effect thereunder. We are eligible
for appointment to act as statutory auditor under section 1212 of the Companies Act 2006.
This report is made to the Trustees as a body, in accordance with section 144 and
regulations made under section 154 of the Act. Our audit work has been undertaken so
that we might state to the Church’s Trustees those matters we are required to state to
them in an auditor’s report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the Church and the
Church’s Trustees as a body, for our audit work, for this report, or for the opinions we
have formed.
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but it is not a guarantee that an audit conducted in accordance with
ISAs(UK) will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
A fuller description of our responsibilities for the audit of financial statements is
located at: www.frc.org.uk/auditorsresponsibilities This description forms part of the
audit report.
……………………………………………………… Chartered Accountants,
Wood, Hicks & Co Ltd, Units 1-2 Warrior Court,
Statutory Auditor 9-11 Mumby Road,
Gosport,
12 May 2021 Hampshire PO12 1BS
13
WAYPOINT
(a charitable incorporated organisation)
BALANCE SHEET
31 December 2020
Note 20202019
£ £
FIXED ASSETS
Tangible assets 6 5,482,627 5,406,354
Investment7 420,000 420,000
——————————————————
5,902,627 5,826,354
——————————————————
CURRENT ASSETS
Debtors 8 17,430 15,021
Cash at bank and in hand 313,527 39,072
——————————————————
Total current assets330,957 54,093
LIABILITIES
Creditors: Amounts falling due within one year 9 (144,207) (25,578)
————————— —————————
Net current assets 186,750 28,515
————————— —————————
Total assets, less current liabilities 6,089,377 5,854,869
Creditors: Amounts falling due after more than one year10 (1,891,835) (1,749,501)
————————— —————————
NET ASSETS £4,197,542 £4,105,368
═════════ ═════════
THE FUNDS OF THE CHARITY 11
Restricted income funds 18,921 -
Unrestricted funds 4,178,621 4,105,368
————————— —————————
TOTAL CHARITY FUNDS 24 £4,197,542 £4,105,368
═════════ ═════════
Approved by the Board of Trustees for issue on
12 May 2021 and signed on its behalf by
……………………………………………………………………………… Treasurer
G Woodyet
The notes set out on pages 16 to 33 form part of these financial statements.
14
WAYPOINT
(a charitable incorporated organisation)
STATEMENT OF FINANCIAL ACTIVITIES
Year ended 31 December 2020
2020 2019 _
Unrest- Rest- Unrest- Rest-
Notericted ricted Total ricted ricted Total
£ £ £ £ £ £
INCOME FROM
Donations and legacies 12 481,933 37,019 518,952 338,184 278,984 617,168
Charitable activities13 31,353 12,225 43,578 29,771 62,000 91,771
Other trading 14 1,543 1,543 -
Investments15 13,853 13,853 2,764 2,764
————————— —————— ————————— ————————— ————————— —————————
Total income528,682 49,244 577,926 367,955 343,748 711,703
————————— —————— ————————— ————————— ————————— —————————
EXPENDITURE ON
Charitable activities 16 379,280 30,323 409,603 342,798 5,664 348,462
Other trading 17 1,057 1,057 -
Reduction in defined benefit
pension liability 27 - (23,435) (23,435)
Other 20 75,09275,092 32,911 34,543 67,454
————————— —————— ————————— ————————— ————————— —————————
Total expenditure455,429 30,323 485,752 352,274 40,207 392,481
————————— —————— ————————— ————————— ————————— —————————
NET OPERATING INCOME 73,253 18,921 92,174 15,681 303,541 319,222
GAINS ON INVESTMENTS 7 - 330,952 330,952
————————— —————— ————————— ————————— ————————— —————————
NET INCOME73,253 18,921 92,174 346,633 303,541 650,174
TRANSFERS BETWEEN FUNDS 23 - 3,038,358 (3,038,358) -
————————— —————— ————————— ————————— ————————— —————————
NET MOVEMENT IN FUNDS 73,253 18,921 92,174 3,384,991 (2,734,817) 650,174
RECONCILIATION OF FUNDS
Total funds brought forward 11 4,105,368 - 4,105,368 720,377 2,734,817 3,455,194
————————— —————— ————————— ————————— ————————— —————————
TOTAL FUNDS CARRIED FORWARD 11 £4,178,621 £18,921 £4,197,542 £4,105,368 £ - £4,105,368
═════════ ══════ ═════════ ═════════ ═════════ ═════════
The notes set out on pages 16 to 33 form part of these financial statements.
15
WAYPOINT
(a charitable incorporated organisation)
STATEMENT OF CASH FLOWS
Year ended 31 December 2020
20202019
£ £
Cash flows arising from charitable operating activities
Net operating income for the year(as per statement of
financial activities) 92,174 319,222
Adjustments for:
Depreciation charges and losses on disposal of
tangible fixed assets 76,957 29,101
Implicit finance cost in defined benefit pension liability 1,383 1,521
Reduction of defined benefit pension liability through
contribution made by the Baptist Union of Great Britain - (23,435)
Hire purchase interest 840 351
(Increase)/decrease in debtors (2,409) 19,536
(Decrease) in creditors (1,045) (3,162)
——————— —————————
Net cash provided by charitable operating activities167,900 343,134
——————— —————————
Cash flows from investing activities
Payments for construction of South Building (18,142) (2,428,741)
Payments for refitting North Building (28,242) (398,278)
Purchases of furniture and equipment (37,593) (137,122)
Payments under hire purchase agreement (3,520) (3,283)
——————— —————————
Cash provided by (used in) investing activities (87,497) (2,967,424)
——————— —————————
Cash flows from financing activities
Deficiency contributions paid in respect of defined
benefit pension liability (5,948) (7,658)
Amount drawn down on mortgage loan facility 200,000 1,700,000
——————— —————————
Cash provided by (used in) finance activities 194,052 1,692,342
——————— —————————
(Decrease) in cash and cash equivalents in the year 274,455 (931,948)
Cash and cash equivalents at the beginning of the year 39,072 971,020
——————— —————————
Cash and cash equivalents at the end of the year £313,527 £ 39,072
═══════ ═════════
Analysis of cash and cash equivalents
Cash in hand 331 2,243
Cash at bank on call 305,234 28,932
Cash on deposit at 60 days’ notice 7,962 7,897
——————— —————————
£313,527 £ 39,072
═══════ ═════════
The notes set out on pages 16 to 33 form part of these financial statements.
16
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 1 — LEGAL STATUS, OBJECTIVES AND AFFILIATION OF WAYPOINT
Waypoint (the Church) is a charitable incorporated organisation (CIO) incorporated in
England and Wales and is governed by a constitution with the objects to:
-
fulfil the role of a Christian Church in the Western Wards of Fareham, Hampshire and surrounding area, and
-
provide help to others promoting the Christian faith in the UK and overseas.
The Church was formerly registered as Locks Heath Free Church until 12 December 2018 when
its name was changed to Waypoint. However, the Church continued as Locks Heath Free
Church until all regulatory matters concerning its name change were concluded, operating
as Waypoint Church from 1 September 2019.
The Church is a Public Benefit Entity within the meaning of FRS 102 and is a member
church of the Baptist Union of Great Britain (BUGB), an unincorporated charitable trust
registration no. 1125912.
NOTE 2 – ACCOUNTING FRAMEWORK AND COMPLIANCE
The financial statements have been set out in accordance with the accounting framework
required under:
-
the Charities (Accounts and Reports) Regulations 2008;
-
the accounting regulations set out under the Charities Act 2011;
-
Financial Reporting Standard 102, updated March 2018, (FRS 102);
-
the Statement of Recommended Practice (the SORP) effective 1 January 2019.
There were no material departures from those standards.
NOTE 3 — NATURE AND PURPOSE OF PRINCIPAL FUNDS
The principal designated and restricted funds are as follows:
Designated funds
-
(a) Functional premises – funds representing the carrying value of the:
-
existing Church building (known as the North Building) .
-
manse until its re-categorisation as an investment property on 29 September 2019.
-
Church’s new building (known as the South Building ), net of related mortgage loan.
-
(b) Investment property – funds representing the fair value of a former manse that was designated for commercial letting on 29 September 2019.
-
(c) Boomerang Holiday Club – a Church-run children’s holiday day-club provided for the first week of the school summer holidays. This designated fund was closed effective 31 December 2019 balance sheet date and its activities have been included with the Church’s other children’s and youth activities in the year under review.
Restricted fund
-
(d) Building fund – for the construction and delivery of the South Building that has been used as a centre of worship since 1 September 2019. Its construction cost has been duly transferred to the Functional Premises designated fund (see (a) above) and this fund was closed on that date.
-
(e) Waypoint Hub – for the provision of social welfare including food, clothing and other essentials to the needy in the local community from March 2020 funded by local authority and community grants, and corporate and personal donations.
17
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 4 — ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial
statements set out below have remained unchanged from the previous year and been
consistently applied in the year under review.
(a) Basis and content of the financial statements
The financial statements have been prepared on the basis of historical cost as
modified by the fair valuation of its investment property.
The financial statements are expressed in pounds Sterling rounded to the nearest
pound and include all the assets and liabilities under the control of the Trustees
of the Church together with a Baptist Union Trust Fund that was held for the
benefit of the Church until its closure in 2019.
(b) Going concern
The Church’s financial statements are prepared on the going concern basis of
accounting unless the Trustees intend to cease operations or have no realistic
alternative but to do so. In assessing whether the going concern basis of
accounting is appropriate, the Trustees take into account all available information
about the future, which is at least, but not limited to, twelve months from the
date when the financial statements are authorised for issue.
(c) Tangible fixed assets and depreciation
Functional freehold properties
The Church premises have been capitalised at cost (estimated where actual cost
information is no longer available) and are being depreciated over their economic
lives at 1% straight line p.a. from the date the properties were first brought into
use. The manse was vacated on 29 September 2019 – see Investment properties below.
The construction of the South Building was substantially completed by and occupied
from 1 September 2019. The costs recorded as construction in progress were
transferred to Functional freehold properties and depreciated in accordance with
this policy note since that date.
Refurbishment of the North Building was undertaken between September and December
2019. Sums considered to represent significant enhancement expenditures but which
have not extended the useful life of the building have been capitalised and
depreciated over the remainder of the original term. Expenditures on bringing the
property and its facilities up to a modern acceptable standard have been charged to
the SOFA as incurred.
Furniture, fittings and equipment
Individual items of furniture, fittings and equipment costing not less than £500 or
groups of items (such as seating) costing in total not less than £2,000 are
capitalised and depreciated over their estimated economic lives at rates between
10% and 25% on a straight-line basis from the date the assets are brought into use.
Lesser sums are charged to the SOFA as incurred.
Impairment losses
Any impairment provision considered necessary against the carrying value of
functional properties or furniture, fittings and equipment is charged to the SOFA
in the accounting period in which the impairment loss is recognised.
Investment property
Residential accommodation used as a manse until 29 September 2019 was designated as
an investment property from that date. Following refurbishment, the property was
commercially let in March 2020. The property is valued at its fair value (defined
in FRS 102) as estimated by the Trustees in consultation with the letting agent at
the balance sheet date. Any increase or reduction in fair value compared to the
previous year is credited or charged to the SOFA as appropriate in the year in
which the variation is recognised.
(d) Debtors
Debtors are stated at the amounts due to the Church at the balance sheet date.
Prepayments are recorded for the proportion of the time-based expenditures
attributable to the ensuing year.
18
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 4 — ACCOUNTING POLICIES (continued)
(e) Cash and cash equivalents
Cash and cash equivalents comprise the amounts held in bank current accounts and
cash in hand together with bank deposits on less than 90 days’ notice at the
balance sheet date.
(f) Liabilities
1 Generally
Liabilities are recognised as soon as an outflow of economic benefits is considered
more likely than not to occur under a legal or constructive obligation committing
the Church to pay out resources. Creditors that are current liabilities, other
than the Church’s defined benefit commitment to the Baptist Scheme, are recognised
at the settlement amount expected to be paid at the balance sheet date.
2 Deferral of income
Income received which cannot be recognised at the balance sheet date is deferred as
a current liability.
3 Defined benefit pension contributions
Two ministers (reduced to one from 30 September 2019) were participants in a
section of the Baptist Pension Scheme that is a multi-employer scheme which
provided defined benefit (DB) pensions up to 31 December 2011 when the Scheme was
closed to future DB accrual. The Scheme has a substantial overall funding deficit.
A plan was devised to recover this deficit and provision for the Present Value (PV)
of the deficiency contributions payable has been recorded in the financial
statements as though made under defined contribution arrangements as required by
sections 28.11, 28.13A and 28.17 of FRS 102.
Fuller details of these matters are provided in Note 5(d)(ii) and Note 29.
(g) Funds
Tithes, donations and grants received for non-specific purposes or general funding
are available for utilisation at the discretion of the Trustees and are dealt with
through the General Fund.
Certain designated funds have been created by the Trustees to ring-fence resources
that are (1) not considered to be readily expendable or (2) held for specific non-
restricted future purposes.
Grants and donations received for specific charitable projects are treated as
restricted income funds available only for use on such specified projects.
Restricted fund deficits are carried forward provided the Trustees are satisfied
that future funding will cover such deficits on a last-in-first-out basis.
(h) Contingencies
1 Contingent assets
Contingent assets (including reductions to known recorded liabilities) are not
recognised in the financial statements unless the benefit is virtually certain to
be obtained. Where an inflow of economic benefits is probable, a description of the
nature of the contingent asset is made in the Notes to the Financial Statements
together with an estimate of the financial effect where this is practical to
ascertain. No disclosure is made of less certain contingent assets.
2 Contingent liabilities
A description of a possible but uncertain obligation or a present obligation that
cannot be reliably estimated is made in the Notes to the Financial Statements
providing where practical:
-
an estimate of its financial effect;
-
an indication of the uncertainties relating to the amount or timing of any outflow; and, the possibility of any reimbursement.
-
(i) Income recognition
Income is brought into account when it is more likely than not that the economic
benefit will accrue to the Church.
19
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 4 — ACCOUNTING POLICIES (continued)
(i) Income recognition (continued)
1 Tithes and donations
General tithes and donations received without pre-conditions attached are
recognised on receipt. Gifts subject to performance-related or other conditions
are recognised when such conditions are fulfilled and all the donors’ associated
requirements concerning them have been complied with.
2 Grants receivable
A grant that becomes receivable on the occurrence of a specified event is
recognised when that event has occurred and all the grantor’s requirements with it
have been complied with.
3 Gift Aid
Tax refunds receivable under gift aid arrangements are recognised by reference to
the date of the related gift. Since the closure of the Building Fund on 1
September 2019, gift aid recoverable on donations to trust and special funds is
credited to the General Fund.
4 Legacies
Incoming resources from legacies are recognised when there is reasonable certainty
that the legacy will be received and the value can be reliably measured.
5 Investment income
Interest receivable is recognised in the year in which it is earned.
6 Other income
Individual amounts classified as other income are disclosed separately if they are
considered to be material.
7 Deferral of income
See policy note (f)2.
8 Gifts in kind and intangible income
Tangible assets received as gifts for use by the Church with a market value of not
less than £500 are treated as incoming resources at their actual or estimated
value, including VAT where appropriate at the date the gift was made. Gifts of
fixed assets are correspondingly capitalised in accordance with policy (c) above.
Donated goods with a value of less than £500 are not accounted for.
The estimated value of food and household consumables donated to the Waypoint Hub
(see Note 3(e)) is recorded as voluntary income and an equal amount recorded as
purchases of supplies.
Donated facilities and services are recognised as incoming resources insofar as
another party is bearing the financial cost of the resources supplied and the
benefit is quantifiable and measurable. An equivalent cost is recorded under the
appropriate expenditure caption in the SOFA.
The Church is dependent on its congregation serving as volunteers in a wide variety
of Church activities. Without their support the Church’s service provision and
community outreach would be significantly curtailed. The value of volunteer time
is not recognised in the financial statements since there is no measurable cost for
their services.
(j) Expenditure
Expenditure is recognised when a liability is incurred or a constructive obligation
arises that results in a payment being unavoidable or a commitment to pay that is
intended to be acted upon.
1 Charitable grant expenditure and donations
Mission support contributions are made to organisations and individuals engaged in
projects that the Church supports. Such contributions are recognised as expenditure
at the earlier of payment or when they are communicated to the prospective
recipient in a manner which is intended to be acted upon. The amounts defrayed,
included in the Church life, outreach and mission caption in Note 16, are disclosed
only when they are considered to be material in the context of the Church’s overall
charitable activities.
20
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 4 — ACCOUNTING POLICIES (continued)
(j) Expenditure (continued)
2 Payroll cost
Payroll cost includes the gross salaries, employer’s national insurance and pension
contributions of Church ministers and staff net of recoveries under the government
Covid-19 furlough scheme.
3 Fundraising and publicity costs
The Church does not engage in making formal appeals outside the Church congregation
that involve incurring significant costs to generate the related income. The
Church has applied for grants from outside sources towards the Waypoint Hub and,
previously, the Building Fund but no external costs are incurred in making such
applications.
4Material expenditure
Where it is necessary to provide an understanding of the Church’s financial
results, the nature of expenditure (including reversals of expenditure recorded in
previous financial years) are recorded separately on the face of the SOFA.
5Defined contribution pension arrangements
The Church operates defined pension contribution arrangements for a minister and
certain staff. These contributions are charged as expenditure when they fall due
and are invested separately from the Church’s assets.
6 Defined benefit (DB) pension arrangements
The present value (PV) of deficiency contributions required by the Scheme reduces
the DB liability at PV carried in the balance sheet. The implicit finance cost
representing the difference between deficiency contributions paid and their
respective PVs is charged to the SOFA (see Note 21).
(k) Value added tax
Since the Church is not registered for VAT, the cost of all input VAT charged to
the Church is included with the expense to which it relates.
Regarding the construction of the South Building referred to in (c) above, the
Trustees consider that Church is the recipient of services for a relevant
charitable purpose otherwise in the course or furtherance of business and, as such,
is entitled to zero-rating for VAT.
(l) Charitable support and administration
All central costs for charitable support and administrative charges are met from
general funds. No attribution has been made to the Building Fund (in 2019) or the
Waypoint Hub (in 2020) for such costs.
(m) Corporation tax
The Church is exempted by HM Revenue and Customs from liability to corporation tax
on its operating surpluses and investment income whilst it pursues its charitable
objectives.
NOTE 5 – CRITICAL JUDGEMENTS AND ESTIMATION UNCERTAINTIES
Judgements
In preparing these financial statements, the only judgements that have been made in
applying the Church’s accounting policies, other than estimation uncertainties (see
below) that have a significant effect on the amounts recognised in the financial
statements, are:
(a)VAT zero-rating on construction of the South Building
As stated in Note 4(k), the Church has claimed VAT zero-rating on the new build at
a saving of approximately £750,000. It is open to HM Revenue and Customs to
dispute the Church’s claim and seek to recover this saving plus penalties. The
Trustees have been aware of this risk and have made every effort to ensure
compliance with the zero-rating requirements. Accordingly, the Trustees consider
that the prospect of HMRC successfully disputing the Church’s claim to be remote.
21
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 5 – CRITICAL JUDGEMENTS AND ESTIMATION UNCERTAINTIES (continued)
Judgements (continued)
(b) Consideration of possible impairment of functional freehold properties The Trustees consider that the North and South Buildings each meet their intended service potential expectations and, notwithstanding the operating difficulties resulting from the Covid-19 pandemic, in their judgement the value in use of these premises to the Church is not impaired at 31 December 2020.
Estimation uncertainties
The key sources of estimation uncertainty that represent a significant risk to the
carrying value of assets and liabilities within the next financial year are:
-
(c) Defined benefit pension liability As explained in Note 29, the Church maintains a liability for its deficiency obligations as a participating employer for two ministers in a multi-employer defined benefit (DB) section of the Baptist Pension Scheme (BPS) administered by BUGB. There are more than 1,200 participating employers in the BPS that are collectively responsible for funding the Scheme’s deficit until its liabilities are settled in full. An actuarial valuation of the Fund was made as at 31 December 2019 but the Trustees consider that the following uncertainties still exist:
-
(i) The actuarial valuation at 31 December 2019 showed that following the introduction of funds by BUGB in 2018 (referred to as the Family Solution) and other positive developments in 2019, the overall deficit had reduced significantly and that the length of time for which the deficit recovery contributions would be payable could be reduced. However, the Trustees consider it is possible that worsening investment performance following the Covid-19 pandemic may yet have a deteriorating effect on the Plan deficit greater than that allowed for in the actuarial valuation.
-
(ii) The risk that certain participating employers in the BPS may not have the resources to fund their share of the deficiency contributions leaving a greater burden to fall on the remaining participants.
-
(d) Depreciation of freehold buildings Freehold properties other than freehold land are depreciated over their estimated useful lives as stated in accounting policy Note 4(c) taking into account factors affecting operating longevity, regular maintenance programmes and residual values where appropriate. The Church’s policy is to write off the construction cost of functional Church buildings over 100 years. However, this policy is reviewed annually by the Trustees and may require re-assessment for factors such as technical innovation, building regulations and changes in user preferences that could affect the future charges for depreciation.
-
(e) Fair value of investment property A former manse became an investment property from 29 September 2019 and was fair valued by the Trustees at 31 December 2019 and 2020 at £420,000. The longer-term impact of a possible economic downturn from the Covid-19 pandemic is not yet clear but may result in a material decline in residential property values in 2021 or later years. Therefore, the Trustees consider that it is not assured that this investment property could be sold for its current carrying value in the foreseeable future.
22
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 6 — TANGIBLE FIXED ASSETS
Year ended 31 December 2020
Functional Furniture,
freehold fittings &
propertiesequipment Total
£ £ £
Cost or valuation
At beginning of year 5,515,335 206,211 5,721,546
Additions during year 115,637 37,593 153,230
————————— ——————— —————————
At 31 December 2020 5,630,972 243,804 5,874,776
————————— ——————— —————————
Depreciation
At beginning of period 277,442 37,750 315,192
Charge for year 53,097 23,860 76,957
————————— ——————— —————————
At 31 December 2020 330,539 61,610 392,149
————————— ——————— —————————
Net book value
At 31 December 2020 £5,300,433 £182,194 £5,482,627
═════════ ═══════ ═════════
Year ended 31 December 2019
Functional Furniture,
freehold Construction fittings &
properties in progress equipmentTotal
£ £ £ £
Cost or valuation
At beginning of year 845,738 1,957,578 88,193 2,891,509
Additions during year 398,278 2,428,741 148,018 2,975,037
Estimated cost of disposals (30,000) (30,000)
Transfer on completion 4,386,319 (4,386,319) -
Transfer of former manse to
investment property (Note 7) (115,000) (115,000)
————————— ————————— ——————— —————————
At 31 December 2019 5,515,335 - 206,211 5,721,546
————————— ————————— ——————— —————————
Depreciation
At beginning of period 283,048 58,995 342,043
Charge for year 20,346 6,755 27,101
Eliminations on disposal (28,000) (28,000)
Elimination of depreciation
on fair valuation of manse (25,952) (25,952)
————————— ————————— ——————— —————————
At 31 December 2019 277,442 - 37,750 315,192
————————— ————————— ——————— —————————
Net book value
At 31 December 2019 £5,237,893 £ - £168,461 £5,406,354
═════════ ═════════ ═══════ ═════════
The mortgage loan facility described in Note 10 is secured by a first legal mortgage and
charge dated 20 June 2018 against the Church’s functional freehold properties that have a
combined carrying value at 31 December 2020 and 31 December 2019 of £5,300,433 and
£5,237,893 respectively.
The Church, as an eligible body entitled to VAT zero-rating on the construction costs of
the South Building, plans to disclaim the part of its entitlement attributable to the
area intended to be used for trading purposes by Waypoint Café. The Church is not
formally committed to this plan at the date these financial statements were approved for
issue. However, in the event it does proceed, a VAT charge will be received from the
building contractors of approximately £40,000 and the cost functional freehold properties
will increase in like amount.
23
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 7 — INVESTMENT PROPERTY
The manse at Lower Church Road (LCR) was vacated on 29 September 2019 and refurbished for
commercial letting. The Trustees, under informal guidance received from the letting
agent, have estimated the fair value of this property at 31 December 2020 and 2019 at
£420,000.
20202019
£ £
-
Fair value at beginning of year 420,000
Estimated historical cost of property - 115,000
Fair value adjustment - 305,000
——————— ———————
£420,000 £420,000
═══════ ═══════
NOTE 8 — DEBTORS
20202019
£ £
Gift Aid tax recoverable 13,244 13,285
Other debtor 1,569 -
Prepayments 2,617 1,736
————————————
£17,430 £15,021
══════ ══════
NOTE 9 — CREDITORS: Amounts falling due within one year
20202019
£ £
Short term portion of:
- Mortgage loan 47,830 -
- Hire purchase commitment 3,033 2,681
- Defined benefit pension liability 8,109 5,870
Suppliers’ accounts payable 3,459 5,099
Amount due to building contractors 69,253 -
Taxation and social security 3,354 2,788
Other creditors 499 794
Accrued charges 8,670 8,346
——————— ——————
£144,207 £25,578
═══════ ══════
NOTE 10 – CREDITORS: Amounts falling due after more
than one year
20202019
£ £
Long term portion of:
- Mortgage loan 1,852,171 1,700,000
- Hire purchase commitment 2,250 5,283
- Defined benefit pension liability 37,414 44,218
————————— —————————
£1,891,835 £1,749,501
═════════ ═════════
These long term liabilities fall due:
- between the second and fifth years inclusive 287,234 243,532
- after more than five years 1,604,601 1,505,969
————————— —————————
£1,891,835 £1,749,501
═════════ ═════════
The mortgage facility provided by CAF Bank of £1,900,000 was fully drawn down in May
2020. The assets pledged as security for this loan are described at the foot of Note 6.
Capital repayments of this loan are to be made monthly starting in February 2021.
24
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 11 – MOVEMENTS ON FUNDS
Year ended 31 December 2020
Funds Fund Funds
brought Incoming Resources transfers carried
forward resourcesexpendedandother forward
£ £ £ £ £
Unrestricted funds
General fund 147,125 528,682 (402,332) 84,363 357,838
Designated funds:
Functional premises 3,537,893 (53,097) (84,363) 3,400,433
Investment property 420,000 420,000
Parent and Toddler 350 350
————————— ————————— ——————— ————————— —————————
4,105,368 528,682 (455,429) - 4,178,621
Restricted income fund
Waypoint Hub - 49,244 (30,323) 18,921
————————— ————————— ——————— ————————— —————————
£4,105,368 £ 577,926 £(485,752) £ - £4,197,542
═════════ ═════════ ═══════ ═════════ ═════════
Year ended 31 December 2019
£ £ £ £ £
Unrestricted funds
General fund 156,887 366,510 (330,033) (46,239) 147,125
Designated funds:
Functional premises 562,690 (20,346) 2,995,549 3,537,893
Investment property 330,952 89,048 420,000
Boomerang Holiday Club 300 1,151 (1,451) -
Parent and Toddler 500 294 (444) 350
————————— ————————— ——————— ————————— —————————
720,377 698,907 (352,274) 3,038,358 4,105,368
Restricted income funds
Building fund 2,734,817 343,748 (40,207) (3,038,358) -
————————— ————————— ——————— ————————— —————————
£3,455,194 £1,042,655 £(392,481) £ - £4,105,368
═════════ ═════════ ═══════ ═════════ ═════════
NOTE 12 — DONATIONS AND LEGACIES
2020 2019 _
Unrest- Rest- Unrest- Rest-
ricted ricted Total ricted rictedTotal
£ £ £ £ £ £
Monetary offerings 396,49622,019418,515 289,564 246,622 536,186
Gift Aid tax refundable 65,43765,437 48,620 32,362 80,982
Legacy 20,000 20,000 -
Estimated value of gifts
in kind 15,000 15,000 -
——————— —————— ——————— ——————— ——————— ———————
£481,933 £37,019 £518,952 £338,184 £278,984 £617,168
═══════ ══════ ═══════ ═══════ ═══════ ═══════
25
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 13 — INCOME FROM CHARITABLE ACTIVITIES
|
20202019 _ |
|
Unrest- Rest- Unrest- Rest- |
|
ricted ricted Totalricted ricted Total |
|
£ £ ££ £ £ |
Room hire |
6,187 6,187 4,671 4,671 |
Service user contributions |
327 3271,807 1,807 |
Other income |
195 195- |
Development grants received: |
|
Fareham Borough Council |
40,000 40,000 |
Hampshire County Council |
18,000 18,000690 22,000 22,690 |
Grants for Waypoint Hub: |
|
Fareham Borough Council |
3,750 3,750- |
Community organisations |
7,975 7,975- |
Other |
500 500- |
Church life, outreach |
|
and mission
|
3,492 3,4924,006 4,006 |
Children’s & youth ministries |
3,152 3,15218,597 18,597 |
|
—————— —————— —————— —————— —————— —————— |
|
£31,353 £12,225 £43,578£29,771 £62,000 £91,771 |
|
══════ ══════ ════════════ ══════ ══════ |
NOTE 14 – OTHER TRADING INCOME
2020 2019 _
Unrest- Rest- Unrest- Rest-
ricted ricted Total ricted rictedTotal
Waypoint Cafe
Cafeteria sales £1,543 £ - £1,543 £ - £ - £ -
═════ ═════ ═════ ═════ ═════ ═════
NOTE 15 — INCOME FROM INVESTMENTS
2020 2019 _
Unrest- Rest- Unrest- Rest-
ricted ricted Total ricted ricted Total
£ £ £ £ £ £
Investment property rental 13,740 13,740
Bank interest received 113 113 2,751 2,751
Other interest received - 13 13
—————— ————— —————— ————— ————— —————
£13,853 £ - £13,853 £ - £2,764 £2,764
══════ ═════ ══════ ═════ ═════ ═════
26
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 16 — EXPENDITURE ON CHARITABLE ACTIVITIES
|
20202019 _ |
|
Unrest- Rest- Unrest- Rest- |
|
ricted ricted Totalricted ricted Total |
|
£ £ ££ £ £ |
Donations and services |
324 324250 250 |
Payroll cost (Note 22) |
156,927 156,927162,091 162,091 |
Ministers’ accommodation |
|
and expenses |
23,925 23,92526,322 26,322 |
Minister’s sabbatical |
4,104 4,104- |
Minister’s leaving gift |
-1,999 1,999 |
Team leader relocation cost |
2,504 2,504- |
Occupancy costs (Note 18) |
51,190 51,19038,158 38,158 |
Conferences, training |
|
and literature |
2,016 2,0163,407 3,407 |
Website and publicity costs |
154 1541,805 1,805 |
Office and general expenses |
|
(Note 19) |
19,885 19,88513,003 5,664 18,667 |
Provision of supplies for |
|
Waypoint Hub
|
30,323 30,323- |
Church life, outreach |
|
and mission |
38,495 38,49540,126 40,126 |
Children’s & youth ministries |
2,799 2,79926,536 26,536 |
Depreciation and loss on |
|
disposal of fixed assets |
76,957 76,95729,101 29,101 |
|
——————— —————— —————————————— ————— ——————— |
|
£379,280 £30,323 £409,603£342,798 £5,664 £348,462 |
|
═══════ ══════ ═══════ ═══════ ═════ ═══════ |
NOTE 17 – OTHER TRADING EXPENSES
2020 2019 _
Unrest- Rest- Unrest- Rest-
ricted ricted Total ricted ricted Total
Purchases of cafe supplies £1,057 £ - £1,057 £ - £ - £ -
═════ ═════ ═════ ═════ ═════ ═════
NOTE 18 – ANALYSIS OF OCCUPANCY COSTS
2020 2019 _
Unrest- Rest- Unrest- Rest-
ricted ricted Total ricted ricted Total
£ £ £ £ £ £
Light, heat and power 17,939 17,939 19,660 19,660
Water and sewerage 252 252 1,182 1,182
Buildings insurance 6,668 6,668 5,074 5,074
Building repairs and maint. 11,548 11,548 2,684 2,684
Cleaning & consumable stores 14,783 14,783 9,558 9,558
—————— ————— —————— —————— ————— ——————
£51,190 £ - £51,190 £38,158 £ - £38,158
══════ ═════ ══════ ══════ ═════ ══════
27
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 19 – ANALYSIS OF OFFICE AND GENERAL EXPENSES
2020 2019 _
Unrest- Rest- Unrest- Rest-
ricted ricted Total ricted ricted Total
£ £ £ £ £ £
Printing, postage & stationery 1,607 1,607 2,518 2,518
Telephone and internet 908 908 909 909
General insurance 1,300 1,300 1,199 1,199
Equipment repairs, servicing
and testing 3,286 3,286 2,082 2,082
Church equipment expensed 5,941 5,941 19 5,664 5,683
Waste removal 1,068 1,068 741 741
Subscriptions and licences 3,534 3,534 2,954 2,954
Finance & management software 1,440 1,440 1,247 1,247
Staff recruitment costs - 732 732
Miscellaneous 801 801 602 602
—————— ————— —————— —————— ————— ——————
£19,885 £ - £19,885 £13,003 £5,664 £18,667
══════ ═════ ══════ ══════ ═════ ══════
NOTE 20 – OTHER EXPENDITURE
2020 2019 _
Unrest- Rest- Unrest- Rest-
ricted ricted Total ricted ricted Total
£ £ £ £ £ £
Rental property maintenance 6,085 6,085 5,627 5,627
Agent commission & insurance 1,696 1,696 -
Audit fees 4,800 4,800 4,800 4,800
Other professional costs - 900 900
Finance costs (see Note 21) 62,511 62,511 22,484 33,643 56,127
—————— ————— —————— —————— —————— ——————
£75,092 £ - £75,092 £32,911 £34,543 £67,454
══════ ═════ ══════ ══════ ══════ ══════
NOTE 21 – FINANCE COSTS
NOTE 21 – FINANCE COSTS |
|
|
20202019 _ |
|
Unrest- Rest- Unrest- Rest- |
|
ricted ricted Totalricted ricted Total |
|
£ £ ££ £ £ |
Finance arrangement costs and |
|
associated legal fees
|
-7,836 7,836 |
Non-utilisation fees re |
|
mortgage loan facility
|
215 215784 8,293 9,077 |
Mortgage interest |
60,073 60,07319,828 17,514 37,342 |
Hire purchase interest |
840 840351 351 |
Unwinding present value |
|
adjustment on pension |
|
funding deficit |
1,383 1,3831,521 1,521 |
|
—————— ————— —————— —————— —————— —————— |
|
£62,511 £ - £62,511£22,484 £33,643 £56,127 |
|
══════ ═════ ══════ ══════ ══════ ══════ |
28
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 22 - PAYROLL AND STAFFING
Year ended 31 December 2020
Gross Employers’ Pension
No. ofwages & nationalcontri-
staff salaries insurancebutionsTotal
£ £ £ £
Ministers 2 54,857 6,316 5,520 66,693
Team leadership 1 9,333 884 10,217
Families, children’s & youth workers 2 38,994 2,003 1,548 42,545
Administration 4 33,817 2,968 514 37,299
Caretaker 1 6,498 43 6,541
—— ——————— —————— ————————————
10 £143,499 £12,214 £7,582 163,295
══ ═════════════ ═════
Less: Employer’s NIC allowance (4,000)
Furlough recoveries (2,368)
———————
£156,927
═══════
Year ended 31 December 2019
Gross Employers’ Pension
No. of wages & national contri-
staff salaries insurance butionsTotal
£ £ £ £
Ministers 3 69,794 7,537 7,340 84,671
Families, children’s & youth workers 3 39,163 2,819 1,428 43,410
Administration 3 31,213 1,903 653 33,769
Caretaker 1 3,209 32 3,241
—— ——————— —————— ————— ———————
10 £143,379 £12,291 £9,421 165,091
══ ═══════ ══════ ═════
Less: Employer’s NIC allowance (3,000)
———————
£162,091
═══════
The average number of full-time equivalent staff is 5.7 (2019: 5.6). No employee received
emoluments (excluding employer pension costs) exceeding £60,000 p.a.
NOTE 23 – TRANSFERS BETWEEN FUNDS
As explained in Note 3(d), the transfer in the year ended 31 December 2019 between the
restricted building fund and the unrestricted general fund of £3,038,358 made on 1
September 2019 represents the total resources expended on the construction and delivery
of the South building since the Build Project began.
29
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 24 – ANALYSIS OF NET ASSETS BETWEEN FUNDS
Year ended 31 December 2020
Fixed Net curr- Other Net
assetsentassets liabilitiesassets
£ £ £ £
Unrestricted funds:
General fund 182,194 215,309 (39,665) 357,838
Designated funds:
Functional freehold properties 5,300,433 (1,900,000) 3,400,433
Investment property 420,000 420,000
Other 350 350
————————— ——————— ————————— —————————
5,902,627 215,659 (1,939,665) 4,178,621
Restricted income fund:
Waypoint Hub 18,921 18,921
————————— ——————— ————————— —————————
FUNDS AT 31 DECEMBER 2020 £5,902,627 £234,580 £(1,939,665) £4,197,542
═════════ ═══════ ═════════ ═════════
Year ended 31 December 2019
Unrestricted funds:
General fund 168,461 28,165 (49,501) 147,125
Designated funds:
Functional freehold properties 5,237,893 (1,700,000) 3,537,893
Investment property 420,000 420,000
Other 350 350
————————— ——————— ————————— —————————
FUNDS AT 31 DECEMBER 2019 £5,826,354 £ 28,515 £(1,749,501) £4,105,368
═════════ ═══════ ═════════ ═════════
NOTE 25 – RELATED PARTY TRANSACTIONS
Certain individuals connected with Church trustees received reward for services or
reimbursement of expenses from the Church during the year as follows:
Name of Nature of
related party Nature of relationshipservices provided 2020 2019
£ £
Mr C Snook* Church trustee Mission support 500 1,000
Miss I Madavan Relative of Church trustee Website design and
development fees 70 635
Miss I Madavan Relative of Church trustee Mission support 80
Mrs C Madavan Relative of Church trustee Preaching fees 100
Miss J McNulty Relative of Church trustee Mission support 500
* Paid to Reality Outreach Ministries International of which C Snook is Drama Director.
No expenditure was incurred on leadership and training days in the year (2019: £50).
30
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 26 – TRUSTEES’ REMUNERATION, BENEFITS AND EXPENSES
As permitted by the Church’s governing document, certain trustees and persons connected
with them received remuneration, benefits and reimbursement of expenses for employment
services rendered in the year as follows:
Year ended31 December 2020
Gross Accomm-Payments/
Total salaryodation Pension expenses_
£ £ £ £ £
M Madavan 49,189 31,715 13,320 4,067 87
J Privett 35,107 23,142 10,513 1,452
K Foster (joined 1/9/20) 9,379 9,333 46
C Johnson 31,174 29,690 1,484
P Griffiths 23,778 23,264 514
S Sawyers (resigned 31/12/20) 9,304 9,304
——————— ——————— —————— ————— ———
£157,931 £126,448 £23,833 £7,563 £ 87
═══════ ═══════ ══════ ═════ ═══
Year ended 31 December 2019
M Madavan 45,561 28,623 13,397 3,541
C Madavan 1,582 1,582
T Hancock (resigned 30/9/19) 31,910 18,919 10,391* 2,346 254
J Privett 34,084 22,252 10,380 1,452
C Johnson 29,705 28,277 1,428
P Griffiths 23,023 22,369 654
S Sawyers 9,304 9,304
——————— ——————— —————— ————— ———
£175,169 £131,326 £34,168 £9,421 £254
═══════ ═══════ ══════ ═════ ═══
*Included £8,100 estimated rental value for the occupation of a Church manse.
NOTE 27 – REMUNERATION OF KEY MANAGEMENT PERSONNEL
The Trustees listed in Note 26 above include all the key management personnel. The total
employee benefits received by them including employer’s national insurance amounted to
£170,025 (2019: £187,428).
NOTE 28 – TRUSTEE DONATIONS
The total donations received from Trustees including persons connected with them amounted
to £51,780 (2019: £74,173). None of these donations attached conditions that would or
might require the Church to significantly change the nature of its existing activities.
NOTE 29 – PENSION OBLIGATIONS
The Church is an employer participating in the Defined Benefits (DB) section of The
Baptist Pension Scheme (the Scheme) which is administered by its pension trustee, Baptist
Pension Trust Limited. The Scheme is a separate legal entity and its assets are held
separately from those of the Church and the other participating employers.
Since it is not possible to attribute the Scheme’s assets and liabilities to specific
employers, it is treated as a multi-employer scheme as described in FRS 102 section
28.11A. As a consequence, the contributions are accounted for as if the Scheme were a
Defined Contribution (DC) scheme where the contributions payable for benefits and
expenses accruing in a year are charged to that year’s SOFA together with the impact of
“deficit recovery contributions” (see below).
The Scheme was closed to future DB accrual on 31 December 2011. From January 2012,
pension provision is being made through the DC section within the Scheme. The main
benefit for pre-2012 service was a DB pension of one-eightieth of final Minimum
Pensionable Income (MPI) for each year of pensionable service.
31
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 29 – PENSION OBLIGATIONS (continued)
In addition to the contributions paid under the DC Plan, since the DB Plan reveals a
deficit, the Scheme Trustee and BUGB agree a rate of deficit recovery contributions from
the participants in the DB Plan. The Church and other employers supporting the DB Plan
are collectively responsible for funding this deficit until the Scheme’s liabilities are
settled in full.
A formal valuation of the DB Plan was performed at 31 December 2016 by a professionally
qualified actuary using the Projected Unit method. The value of the DB Plan assets at
that valuation date compared with its liabilities revealed a substantial funding deficit
which was reduced by BUGB making an additional cash contribution (referred to as the
‘Family Solution’) into the Scheme. This reduced the overall deficiency to £78m, or 31%
of total scheme liabilities at 31 December 2018.
Under the recovery plan dated 2 April 2015, the deficit recovery contributions were
estimated to be payable until 30 June 2035. As a consequence of the Family Solution the
Scheme Trustee confirmed that the existing basis for deficit recovery contributions would
continue (i.e. 12% of MPI for serving ministers) but advised in 2018 that the Scheme
remained on track to clear the deficit by 31 December 2028.
A further actuarial valuation was carried out at 31 December 2019 and its outcome
reported to the participating employers on 3 July 2020. The Scheme Trustee reported that
by virtue of a number of positive developments (including the Family Solution referred to
above) the estimated Plan deficit had fallen from £93m at 31 December 2016 to £18m at 31
December 2019. The principal consequence of this reduction is that the monthly deficit
recovery contributions continue as previously but with the expectation that these might
cease in June 2026, some two and a half years earlier than was predicted at 31 December
2018.
The Scheme Trustee has also confirmed that in setting this expectation, since the DB
Plan’s actual financial position moves daily with changes in the financial market
conditions, an allowance of £10m has been made for the possible deterioration of asset
values because of the current uncertain financial climate created by Covid-19.
The next triennial actuarial valuation is to be carried out at 31 December 2022.
The pension contributions paid by the Church in the year are:
20202019
£ £
DCs paid and payable in respect of the year 7,550 9,192
PV of DB deficit recovery contributions paid in the year 5,870 7,658
—————— ——————
£13,420 £16,850
══════ ══════
As permitted by FRS 102, the DB Plan is being accounted for as if it were a DC Plan but
since it has entered into an agreement as to how the deficit will be funded, the Church
recognised effective 1 January 2014 the present value (PV) of the liability for its share
of the deficit contributions originally determined. Further guidance concerning the
funding deficiency was provided by the Scheme actuary during 2020 including assumptions
concerning increases in the MPI of the employee concerned and the discount rate to be
applied for PV calculations.
On the basis of these assumptions, the notification of the Family Solution in 2018 and
the other positive developments since, the Church recomputed its DB Plan liabilities and
made adjustments to the DB liability at 31 December 2019. The movements in the DB
liability for the current and previous financial years are:
32
WAYPOINT
(a charitable incorporated organisation)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2020
NOTE 29 – PENSION OBLIGATIONS (continued)
20202019
£ £
Balance at 1 January, 50,088 79,660
Reduction in liability based on information notified
by Scheme actuary - (23,435)
Deficiency contributions payable for year (5,948) (7,658)
Implicit annual finance cost in PV calculations 1,383 1,521
—————— ——————
Liability for pension deficit at 31 December, £45,523 £50,088
NOTE 30 – CAPITAL COMMITMENTS
The total contractual commitments in connection with the construction of the South
Building not provided for at 31 December 2020 amounted to £nil (2019: £97,000).
NOTE 31 – GOING CONCERN
The Church constructed a building on land adjacent to the existing Church premises and
arranged a 25-year commercial loan facility of £1.9m as part of the funding arrangements,
secured as described at the foot of Note 10. Draw-down of this facility commenced in
February 2019 and was drawn down in full by May 2020. The loan repayments (interest only
until February 2021) are considered to be affordable because many individual Church
members have made non-binding pledges that, in total, meet the expected monthly
repayments. The lender, CAF Bank, has accepted these pledges in making its own decision
to grant the facility. Further, in accordance with section 124(2) of the Charities Act
2011, the Trustees obtained and considered appropriate written advice from an independent
consultant on the Church’s means to repay. However, the Trustees accept that:
-
since members are not contractually committed to honouring these pledges; and
-
changes in demographics, personal circumstances and other factors
could objectively render the continuing receipt of these pledges uncertain. It is also
possible that future increases in interest rates could make repayments less affordable.
These uncertainties have been exacerbated by the Covid-19 pandemic where the potential
damage to the economy and the personal incomes of the Church congregation in the longer
term cannot be evaluated at this time. In turn, a combination of these factors could
result in the Church being unable to meet its liabilities as they fall due.
Notwithstanding these objective uncertainties, the Trustees have noted that the trend of
income from tithes and offerings so far in 2021 has been at a similar level to 2020. The
Trustees believe that this trend provides reasonable assurance that the Church will be
able to meet its commitments as a going concern in the foreseeable future and certainly
for a period of at least twelve months from the date of issue of these financial
statements.
33