**Registered number: 10288333 Charity number: 1170571** ## **WALL HEATH EVANGELICAL FREE CHURCH** **(A company limited by guarantee)** ## **UNAUDITED** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **CONTENTS** ||Page| |---|---| |**Reference and administrative details of the Company, its Trustees and advisers**|1| |**Trustees' report**|2 - 9| |**Independent examiner's report**|10| |**Statement of financial activities**|11| |**Balance sheet**|12 - 13| |**Notes to the financial statements**|14 - 26| ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020** |**Trustees**|A Allman| |---|---| ||M Yates| ||J F Day| ||K D Cram| ||M J N Tromans| ||M J Orton| ||M B D Jones| ||P J Cram| ||S P Evans| ||M J L Tromans| ||J R M Pullen| ||C E Taylor| |**Company registered**
**number**
10288333
**Charity registered**
**number**
1170571
**Registered office**
81 Enville Road
Wall Heath
Kingswinford
West Midlands
DY6 0JX|| Page 1 ## **WALL HEATH EVANGELICAL FREE CHURCH (A company limited by guarantee)** ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020** The Trustees present their annual report together with the financial statements of the Company for the year 1 January 2020 to 31 December 2020. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted. ## **Objectives and activities** ## **a. Policies and objectives** As set out in the Church’s Constitution and Basis of Faith, the Church activities consist of far more than Sunday services. A constantly developing programme of ministries and activities is designed to cater for young and old, male and female and for those experienced and inexperienced in the Christian faith. A mission statement for the church exists as follows: We are here to glorify God: - by bringing people to Jesus and into the loving family of the church - by applying God’s word to our lives and becoming more like Jesus - by developing our gifts and using them with enthusiasm in His service, locally and worldwide - by worshipping in unity and finding our satisfaction in Him ## **PUBLIC BENEFIT** The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission in determining the activities undertaken by the Charity. The Charity Commission in its "Charities and Public Benefit" Guidance states that there are two key principles to be met in order to show that an organisation's aims are for the public benefit: firstly, there must be an identifiable benefit and secondly, that benefit must be to the public or a section of the public. The Trustees are satisfied that the aims and objectives of the charity, and the activities reported on below to achieve those aims, meet these principles. The public benefit that the Church provides is a programme of activities and ministries for people in the Christian faith. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. Page 2 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Objectives and activities (continued)** ## **b. Activities undertaken to achieve objectives** The main activities in relation to these objects include: - Activities for all including Sunday services of worship Mid-week House Groups and prayer meeting Church “holidays” (weekends away) • Activities for the young including Connect (for children in school years 7-11) United (for children in school years 3-6) Shooting Stars (For children in school years reception, 1-2) Livewires - Sunday School (age 7-11) Sparklers / Crèche (for pre-school and primary school children) Holiday Bible Club (for primary school children) Bright Sparks Parents and Toddlers groups (for pre-school children) Sunday Night After Church (SNAC) No Strings Attached – Puppet team - Activities for midweek fellowship Wednesday fellowship meeting Refresh Café Craft & Sew on - Activities for men including Men’s events, days out and meals Young men's Bible study and fellowship group - Activities for women including Ladies’ nights Craft events - Activities for families Care for the Family accredited courses - Activities for newcomers including Alpha course. These activities are not restricted to church members but open to everyone in the community. All activities are free of charge, except where there is a significant financial outlay such as weekends away. The Church is a community of people desiring to serve and worship God. Without the significant time and energy provided by a large number of volunteers as part of their desire to serve God, the Church could not continue to function. The Pastor is a paid employee of the Church and shares responsibility for the leadership, spiritual oversight and well-being of the congregation jointly with the Elders. There is also a part time paid administrator and 2 part time paid cleaners. All other members of the Church fulfil their roles on an entirely voluntary and unpaid basis and such contribution is greatly appreciated. Page 3 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Objectives and activities (continued)** In addition to activities described above, the Church has an interest in Christian missionary work both at home and abroad and supports a number of missionaries both financially and in prayer and practical undertakings. The amount of the financial contribution to such missionaries is agreed between the Elders and missionary committee. Similarly, the Church will make donations to individuals and to organisations that are in financial need. Again, the amount of this contribution is agreed. ## **Achievements and performance** ## **a. Review of activities** ## **Church** Thanksgiving service Online light party Christmas Panto nativity event live streamed Christmas carol service socially distanced at a local primary school. ## **Mission Support** Krasif Aid – support for a care home and community buildings in Bulgaria Wycliffe Bible Translators – support of Bible translators in Indonesia. Dignity Freedom Network– supporting 3 Dalit children in their education and upbringing. Brierley Hill Project – support of workers located in Pensnett. Birmingham City Mission – John Platt Slavic Gospel Association Vadim Musurivski European Christian Mission – Phillipe & Joanne Mayhew Gus Eyre – Prison Ministry Sharon Tromans - British Youth for Christ Amen Ministries – Shoeboxes to Roma communities in Romania. Fellowship of Independent Evangelical Churches (FIEC) Open Doors – Working for the persecuted church worldwide. Kolkata City mission – India Operation Mobilisation Tear Fund The Leprosy Mission Africa Rural Trainers (ART) Maria Naylor -Support for internship at Platts church Manchester Jacob Jones – Volunteer with Christian Mountain Centre ## **Church Fabric** Work exploring rebuilding the existing premises on the current site has continued. Advance Architects (Formerly Insight Architects) assisted in the tendering process, Mayway Construction Ltd were appointed to carry out the work which commenced in October 2020 to demolish the existing building and start work on the new build. The project is progressing well, and it is hoped that the new building will be completed later in 2021. Work has also continued towards the fundraising aspect of the project. Futurekraft (our fundraising team) have helped us to secure several large grants to help towards the cost of the rebuild. Rhythm Time and Moo Music for children’s singing groups have hired the building on a weekly basis. It has also been used by Slimming World, Brick Club (a Lego based group focussed on social interaction and motor skills) and Sweaty Mama a new mother and baby exercise class. Page 4 **WALL HEATH EVANGELICAL FREE CHURCH (A company limited by guarantee)** **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Achievements and performance (continued)** All the following activities took place until the end of February/ beginning of March and stopped due to restrictions on community gatherings because of the Covid-19 pandemic. We have managed to have online weekly services, zoom house group and prayer meetings. Some of our children’s/youth work has been transferred to social media with weekly videos and craft packs being delivered when appropriate. The schools’ team has also produced video assemblies for the schools to use. ## **Place of Worship** **Sunday services** were held weekly at 10.30am and 6pm up until March 15th and transferred to pre-recorded online services since the first lockdown. These are open to everyone and our online services have had significantly higher viewing figures. We held 2 **gathered service** s during the pandemic. One held in the old church building to give thanks for it and look to the future. Another was held just before Christmas in the Church of the Ascension school hall. **House groups** were held in people’s homes on a rota basis twice a month and offer encouragement, support, prayer, Bible study and friendship. For most of the year this has continued via Zoom **Prayer times** are held at various times during each month. The fourth Wednesday for a joint prayer meeting and the first Sunday of every month. This has continued via Zoom. **Pastoral care** is offered and given to everyone within the church and to those within the community who need our help. This has increased greatly during the pandemic. ## **Youth Work** **United** - A Friday night meeting for primary school children in years 3 - 6 with games, singing, craft activities etc. **Connect** on Friday nights – for children in school years 7-11. On average 4-10 young people come each week to enjoy a time of fun, games, art, craft and Christian teaching. The pandemic and the church rebuild have affected our ability to run these 2 groups. **SALT** - (formerly known as Snac) – a short time for fellowship in people’s homes after the Sunday evening service – normally around 5 people once a month. Discussions, bible study and prayer times and food and drink. Again, this meeting has transferred to Zoom. ## **Creative** **No strings attached** – Performances on Sundays, in school assemblies and at the carol service. ## **Community** **Shooting Stars** – A Thursday afternoon meeting for primary school children and their parents in reception, years 1 & 2, with games, singing, craft activities etc. **Bright Sparks Toddlers** - This is an opportunity for parents and carers to come and share fellowship together with their young children. Shooting Stars and Bright Sparks have continued throughout the year on social media, with packs being given out and delivered to help families through the restrictions of the pandemic. **Livewires / Sparklers / Crèche** - Around 15 children are taught simple Bible stories during the Sunday morning church services. Page 5 **WALL HEATH EVANGELICAL FREE CHURCH (A company limited by guarantee)** **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Achievements and performance (continued)** **Wednesday Fellowship** - A daytime fellowship meeting weekly, which largely attracts older folk but is open to all. **Craft & Sew on** – A bi-weekly fellowship meeting based around craft and anything creative **Café Refresh** - A bi-weekly café providing beautiful cakes and tea/coffee for all the community **Schools team** – Take assemblies on a regular basis at 5 primary schools and occasionally are involved in lessons. We support the GSUS live trailer at secondary schools when it is in the area. **Gables Residential home** – Socially distanced outdoor carol service **New Bradley Hall Residential home** - Socially distanced outdoor carol service. **Schools team** – Take assemblies on a regular basis at 5 primary schools and occasionally are involved in lessons. We support the GSUS Live trailer at secondary schools when it is in the area. Our church website was renewed in January to allow us greater control over content and information. It has seen greater increased usage during the pandemic for notices, Sunday services, daily children’s activities, building updates, photographs and daily motivations. ## **Financial review** ## **a. Going concern** After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies. ## **b. Reserves policy** The Trustees are aware of the Charity Reserves: building resilience (CC19) Charity Commission Guidance and are in the process of developing a reserves policy. The charity currently has total funds of £664,898 (2019: £439,421) of which £619,561 (2019: £267,454) is unrestricted. Within the unrestricted funds is £193,500 (2019: £193,500) of designated funds for the Existing Church Fund and the Church Rebuild Project. The free reserves which amounts to the unrestricted funds less designated funds and fixed assets is equal to £426,061 (2019: £73,954). Restricted funds are £45,337 (2019: 171,967). The majority of the restricted fund accumulated in 2020 was for the renovation or rebuilding of the church property £43,581 (2019: £169,809). It should be noted that a large portion of the current reserves accumulated during 2020 are set aside specifically to fund the rebuild. The remainder supports the on-going upkeep of the church fabric and salary payment. The level of reserves are monitored at least weekly throughout the year and more formally through the production of monthly management accounts as part of the normal monitoring and budgetary reporting processes Page 6 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **c. Principal funding** The principal source of funds is the entirely voluntary donations of the Church’s members and adherents. While this is set out in the Bible as both a responsibility and a privilege for Christian people, individuals are not placed under any additional obligation either to give a certain amount or indeed to give at all and newcomers and visitors to Sunday morning services (a collection box is provided at the rear of the church) are regularly encouraged not to feel under any obligation to give. As with the voluntary help for the activities of the Church, without the voluntary giving of the congregation, the Church could not continue to function and the Elders and trustees are grateful to God for His provision. ## **Structure, governance and management** ## **a. Constitution** Wall Heath Evangelical Free Church is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association. The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 20/07/16. The company is constituted under a Memorandum of Association dated 20/07/16 and is a registered charity number 1170571. The principal object of the company is to glorify God: - by bringing people to Jesus and into the loving family of the church - by applying God’s word to our lives and becoming more like Jesus - by developing our gifts and using them with enthusiasm in His service, locally and worldwide - by worshipping in unity and finding our satisfaction in him ## **b. Methods of appointment or election of Trustees** The management of the Company is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association. ## **c. Organisational structure and decision-making policies** While the Trustees have ultimate accountability for the maintenance of the Church building at Enville Road, daily responsibility for its maintenance is delegated to the Elders and Deacons of the Church. The Church itself (i.e. the congregational body and its affairs) is governed by a Constitution and a Basis of Faith and served by Elders and Deacons who are accountable to the Church membership and to God for fulfillment of their responsibilities. The Trustees are aware of the Charity Governance Code for smaller charities and are reviewing the code and considering its application to the Church Page 7 ## **WALL HEATH EVANGELICAL FREE CHURCH (A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Plans for future periods** Since the restrictions on community gatherings due to the Covid 19 pandemic began in March 2020, the Trustees have managed the church activities where possible through online services and Zoom meetings, with the occasional meeting in hire premises when national regulations permitted. Whilst this has had some bearing on the overall financial performance of the charity during 2020, the Trustees are able to confirm that overall income levels from donations and offerings remained consistent throughout 2020 with reported overall income levels down by only 0.17%. In some aspect of the general running costs these were reduced through none use of the public building. Notwithstanding, the situation the charity faced with the Covid 19 pandemic, the Trustees took the decision to go ahead with a complete rebuild of the existing site to create a community hub in the heart of Wall Heath, which would, when complete, provide opportunities for increased services to meet the needs of the community. The work began in September 2020 and is expected to be completed in the Autumn of 2021. Considering ahead, and providing that the country continues to progress out of lockdown, we expect venue hire to be a sustainable income stream. The new facilities will be the largest space available to hire in Wall Heath, and can be used for weddings, conferences, and large community events. Through hiring out our auditorium, café area and four seminar/guest rooms on a weekly basis, nearly 20% of our annual expenditure in year 1 will be covered through rental income. This will increase to over 30% by year 7. (subject to Covid 19 regulations). Page 8 WALL HEATH EVANGELICAL FREE CHURCH IA company limited by guarantee) TRUSTEES. REPORT {CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2020 Plans for future periods Icontinuedl ststement of Trustees. responsibilities The Trustees Iwho are also the directors of the Company for the purposes of company lawl are responsible for preparing the Trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. Company law requires the Trustees lo prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial ststements, the Trustees are required to.. select suitable accounting policies and then apply them consistently.. observe the methods and principles of the Charities SORP IFRS 1021", make judgments and aceounling estimates that are reasonable and prudent", slate whether applicable UK Accounting Standards IFRS 102} 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 lo presume that the Company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficiellt to show and explain the Company's transactsons and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial stslements comply with the Companies A￿ 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevenb'on and detection of fraud and other irregularities. Approved by order of the members of the board of Trustees on and signed on their behalf by= MBDJones Trustee MJOrton Trustee Page g WALL HEATH EVANGELICAL FREE CHURCH (A company limited by guarantee) INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 Independent Examinees R•port to the Trustees of Wall Heath Evangelical Free Church I'the Company,) I report to the char￿¥ Trustees on rrry e￿MinatIon of the accounts ofthe Conyny ts the year eThled 31 D￿rnber 2020. Responsibilities and Basis of Report As the Trustees of Ihe Company (and its directcrfs for the purposes of ojnpany you are responsible ts the preparation ofthe acC￿nts Mi acc￿dan￿wilh the requiffjmènts of the Corryan*s Act 20[￿ {Ihe 2006 Acr). Having sabsfied myself that the accounts of the Corymny are required to be audiied under Part 16 of the 2006 Act and are eligible for irthper¥Jent eXanWnatM￿. I report in respect of my examination of the Companls accounts carl￿d out under seckn 145 of the Charities Act 2011 (Yhe 2011 kf}. In carrying out my examination I have followed the Directions given by the Chanty CorMli8shJn under sect*Jn 14515)Ib) of the 2011 ACL Independent Examlnees Ststem•nt Since the Comp*)y's gross irKome exceeded £250,000 your exaffiner must be a member of a body li81ed in section 145 ofthe 2011 Act. I confinn Ihat l an qualiW to undertake the examination b￿aUse l am a member of ACfvIA, which is one of the listed bod￿. I have completed my exaMir￿j0n. I confinn that no matiers have come to attention in connectM)n wilh the exaftmnation gNing me cause to believe.. accounting re(x)rds were ncl kept in reSp￿t ofthe Company as required by seGtion 386 of the 2006 Art or the accounts do not *ith those rec**Income from:**
Donations and legacies
3
Investments
4
Other income
5
**Total income**
**Expenditure on:**
Charitable activities
6
**Total expenditure**
**Net income**
Transfers between funds
15
**Net movement in funds before other**
**recognised gains/(losses)**
**Other recognised gains/(losses):**
Losses on revaluation of fixed assets
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2020**
**£**
**95,041**
**254**
**1,570**
**96,865**
**75,335**
**75,335**
**21,530**
**330,577**
**352,107**
**-**
**352,107**
**267,454**
**352,107**
**619,561**|**Restricted**
**funds**
**2020**
**£**
**204,970**
**-**
**249**
**205,219**
**1,272**
**1,272**
**203,947**
**(330,577)**
**(126,630)**
**-**
**(126,630)**
**171,967**
**(126,630)**
**45,337**|**Total**
**funds**
**2020**
**£**
**300,011**
**254**
**1,819**
**302,084**
**76,607**
**76,607**
**225,477**
**-**
**225,477**
**-**
**225,477**
**439,421**
**225,477**
**664,898**|_Total_
_funds_
_2019_
_£_
_297,009_
_252_
_5,330_
_302,591_
_111,641_
_111,641_
_190,950_
_-_
_190,950_
_(600,000)_
_(409,050)_
_848,471_
_(409,050)_
_439,421_| |---|---|---|---|---| The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 14 to 26 form part of these financial statements. Page 11 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee) REGISTERED NUMBER: 10288333** ## **BALANCE SHEET AS AT 31 DECEMBER 2020** |**Note**
**Fixed assets**
Tangible assets
10
**Current assets**
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
**Net current assets**
**Net assets**
**Total net assets**
**Charity funds**
Restricted funds
15
Unrestricted funds
15
**Total funds**|**25,704**
**159,397**
**185,101**
**(780)**|**2020**
**£**
**480,577**
**480,577**
**184,321**
**664,898**
**664,898**
**45,337**
**619,561**
**664,898**|_22,915_
_266,506_
_289,421_
_-_|_2019_
_£_
_150,000_| |---|---|---|---|---| |||||_150,000_
_289,421_| |||||_439,421_| |||||| |||||_439,421_| |||||_171,967_
_267,454_| |||||| |||||_439,421_| Page 12 WALL HEATH EVANGELICAL FREE CHURCH (A company limited by guarantee} REGISTERED NUMBER: 10288333 BALANCE SHEETICONTINUED} AS AT 31 DECEMBER 2020 The Company was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting reGord8 and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf by.. nTfv_ MBDJones MJOrton The notes on pages 14 to 26 form part of these financial statements. Page 13 # **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. General information** The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. ## **2. Accounting policies** ## **2.1 Basis of preparation of financial statements** The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Wall Heath Evangelical Free Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. ## **2.2 Going concern** The charity has cash resources and has no requirement for external funding. The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. They continue to believe that the going concern basis of accounting is appropriate in preparing the annual financial statements. Page 14 ## **WALL HEATH EVANGELICAL FREE CHURCH** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **2. Accounting policies (continued)** ## **2.3 Income** All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' report for more information about their contribution. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. ## **2.4 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities. Page 15 ## **WALL HEATH EVANGELICAL FREE CHURCH** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **2. Accounting policies (continued)** ## **2.5 Tangible fixed assets and depreciation** Tangible fixed assets costing £1000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account. Tangible fixed assets are carried at valuation, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land. Depreciation is provided at rates calculated to write off the valuation of fixed assets, less their estimated residual value, over their expected useful lives. Depreciation is provided on the following basis: - Freehold property 2% straight line ## **2.6 Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank. ## **2.7 Debtors** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **2.8 Cash at bank and in hand** Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **2.9 Liabilities and provisions** Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. Page 16 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **2. Accounting policies (continued)** ## **2.10 Financial instruments** The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **2.11 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. ## **3. Income from donations and legacies** |**Unrestricted**
**funds**
**2020**
**£**
Donations
93,560
Grants
1,481
95,041
_Total 2019_
_103,966_|**Restricted**
**funds**
**2020**
**£**
140,001
64,969
204,970
_193,043_|**Total**
**funds**
**2020**
**£**
**233,561**
**66,450**
**300,011**
_297,009_|_Total_
_funds_
_2019_
_£_
_289,059_
_7,950_| |---|---|---|---| ||||_297,009_| ||||| Page 17 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **4. Investment income** |**Unrestricted**
**funds**
**2020**
**£**
Interest received
254
_Total 2019_
_252_|**Total**
**funds**
**2020**
**£**
**254**
_252_|_Total_
_funds_
_2019_
_£_
_252_| |---|---|---| |||| ## **5. Other incoming resources** |**Unrestricted**
**funds**
**2020**
**£**
Hire of building
1,570
Quinta deposits
-
1,570
_Total 2019_
_5,330_|**Restricted**
**funds**
**2020**
**£**
-
249
249
_-_|**Total**
**funds**
**2020**
**£**
**1,570**
**249**
**1,819**
_5,330_|_Total_
_funds_
_2019_
_£_
_5,330_
_-_| |---|---|---|---| ||||_5,330_| ||||| ## **6. Analysis of expenditure on charitable activities Summary by fund type** |**Unrestricted**
**funds**
**2020**
**£**
Charitable activities
75,335
_Total 2019_
_86,689_|**Restricted**
**funds**
**2020**
**£**
1,272
_24,952_|**Total**
**funds**
**2020**
**£**
**76,607**
_111,641_|_Total_
_funds_
_2019_
_£_
_111,641_| |---|---|---|---| ||||| Page 18 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **7. Analysis of expenditure by activities** |Charitable activities
_Total 2019_|**Activities**
**undertaken**
**directly**
**2020**
**£**
64,291
_96,311_|**Support**
**costs**
**2020**
**£**
12,316
_15,330_|**Total**
**funds**
**2020**
**£**
**76,607**
_111,641_|_Total_
_funds_
_2019_
_£_
_111,641_| |---|---|---|---|---| |||||| ## **Analysis of direct costs** |Building repairs
Evangelism
Missionary work
Children's work
Staff costs
**Total 2020**
_Total 2019_|**Activities**
**2020**
**£**
2,299
837
13,500
1,611
46,044
64,291
_96,311_|**Total**
**funds**
**2020**
**£**
**2,299**
**837**
**13,500**
**1,611**
**46,044**
**64,291**
_96,311_|_Total_
_funds_
_2019_
_£_
_29,908_
_2,544_
_12,750_
_3,207_
_47,902_| |---|---|---|---| ||||_96,311_| ||||| Page 19 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **7. Analysis of expenditure by activities (continued)** ## **Analysis of support costs** |**Activities**
**2020**
**Total**
**funds**
**2020**
**£**
**£**
Subscriptions
2,249
**2,249**
Communications
1,150
**1,150**
Computer costs
1,131
**1,131**
Insurance
897
**897**
Rates and electricity
3,285
**3,285**
Equipment
78
**78**
Maintenance
660
**660**
Sundry expenses
2,086
**2,086**
Accountancy
780
**780**
**Total 2020**
12,316
**12,316**
_Total 2019_
_15,330_
_15,330_
**8.**
**Staff costs**
**2020**
**£**
Wages and salaries
**37,907**
Social security costs
**8,137**
**46,044**
The average number of persons employed by the Company during the year was as follows:
**2020**
**No.**
Average number of employees
**3**|_Total_
_funds_
_2019_
_£_
_4,032_
_1,311_
_332_
_899_
_4,584_
_998_
_1,035_
_2,139_
_-_| |---|---| ||_15,330_| ||_2019_
_£_
_40,115_
_7,787_| ||| ||_47,902_| ||_2019_
_No._
_3_| Page 20 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **8. Staff costs (continued)** No employee received remuneration amounting to more than £60,000 in either year. The key management personnel of the charity are the Trustees. There were no employee benefits of key personnel for the charity in either year. ## **9. Trustees' remuneration and expenses** During the year, no Trustees received any remuneration or other benefits _(2019 - £NIL)_ . During the year ended 31 December 2020, no Trustee expenses have been incurred _(2019 - £NIL)_ . ## **10. Tangible fixed assets** |**Cost or valuation**
At 1 January 2020
Additions
At 31 December 2020
**Net book value**
At 31 December 2020
_At 31 December 2019_|**Freehold**
**property**
**£**
**150,000**
**330,577**| |---|---| ||**480,577**| ||**480,577**| ||_150,000_| On 21 February 2019 the land was given a market valuation of £150,000 by A. K. Knight FRICS of Walton & Hipkiss. The land is not depreciated. ## **11. Debtors** |**Due within one year**
Gift aid receivable|**2020**
**£**
**25,704**
**25,704**|_2019_
_£_
_22,915_
_22,915_| |---|---|---| Page 21 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **12. Creditors: Amounts falling due within one year** |Accruals and deferred income
**13.**
**Creditors**
Accruals|**2020**
**£**
**780**
**2020**
**£**
**780**
**780**|_2019_
_£_
_-_| |---|---|---| |||_2019_
_£_
_-_| |||_-_| ## **14. Financial instruments** ||**2020**|_2019_| |---|---|---| ||**£**|_£_| |**Financial assets**||| |Financial assets measured at fair value through income and expenditure|**159,397**|_266,506_| Financial assets measured at fair value through income and expenditure comprise cash at bank. Page 22 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **15. Statement of funds** ## **Statement of funds - current year** |**Unrestricted funds**
**Designated funds**
Designated Funds - Existing
ChurchFund
Designated Fund - Church
RebuildProject
**General funds**
General Funds - all funds
**Total Unrestricted funds**
**Restricted funds**
Building fund
United fund
Bright Sparks fund
Wednesday Fellowship fund
Cafe Refresh fund
Shooting Stars fund
**Total of funds**|**Balance at 1**
**January**
**2020**
**£**
**150,000**
**43,500**
**193,500**
**73,954**
**267,454**
**169,809**
**200**
**945**
**101**
**57**
**855**
**171,967**
**439,421**|**Income**
**£**
**-**
**-**
**-**
**96,865**
**96,865**
**204,349**
**249**
**331**
**143**
**119**
**28**
**205,219**
**302,084**|**Expenditure**
**£**
**-**
**-**
**-**
**(75,335)**
**(75,335)**
**-**
**(249)**
**(479)**
**(203)**
**(34)**
**(307)**
**(1,272)**
**(76,607)**|**Transfers**
**in/out**
**£**
**-**
**-**
**-**
**330,577**
**330,577**
**(330,577)**
**-**
**-**
**-**
**-**
**-**
**(330,577)**
**-**|**Balance at**
**31**
**December**
**2020**
**£**
**150,000**
**43,500**| |---|---|---|---|---|---| ||||||**193,500**| ||||||**426,061**| ||||||**619,561**| ||||||**43,581**
**200**
**797**
**41**
**142**
**576**| ||||||**45,337**| ||||||**664,898**| ## **Transfers** Transfer between restricted and unrestricted funds consists of fixed asset additions of £330,577. Page 23 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **15. Statement of funds (continued)** ## **Statement of funds - prior year** |**Unrestricted funds**
**Designated funds**
Designated Funds - Existing
Church
Fund
Designated Fund - Church
Rebuild Project
**General funds**
General Funds - all funds
**Total Unrestricted funds**
**Restricted funds**
Building fund
United fund
Bright Sparks fund
Wednesday Fellowship fund
Cafe Refresh fund
Shooting Stars fund
**Total of funds**|_Balance at_
_1 January_
_2019_
_£_
_750,000_
_43,500_
793,500
_51,095_
844,595
_1,720_
_200_
_628_
_144_
_57_
_1,127_
3,876
_848,471_|_Income_
_£_
_-_
_-_
-
_109,548_
109,548
_190,541_
_-_
_1,854_
_572_
_-_
_76_
193,043
_302,591_|_Expenditure_
_£_
_-_
_-_
-
_(86,689)_
(86,689)
_(22,452)_
_-_
_(1,537)_
_(615)_
_-_
_(348)_
(24,952)
_(111,641)_|_Impairment_
_£_
_(600,000)_
_-_
_(600,000)_
_-_
_(600,000)_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_(600,000)_|_Balance at_
_31_
_December_
_2019_
_£_
_150,000_
_43,500_| |---|---|---|---|---|---| ||||||_193,500_| ||||||_73,954_| ||||||_267,454_| ||||||_169,809_
_200_
_945_
_101_
_57_
_855_| ||||||_171,967_| ||||||_439,421_| Page 24 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **16. Summary of funds** ## **Summary of funds - current year** |Designated funds
General funds
Restricted funds|**Balance at 1**
**January**
**2020**
**£**
**193,500**
**73,954**
**171,967**
**439,421**
_Balance at_
_1 January_
_2019_
_£_
_793,500_
_51,095_
_3,876_
_848,471_|**Income**
**£**
**-**
**96,865**
**205,219**
**302,084**
_Income_
_£_
_-_
_109,548_
_193,043_
_302,591_|**Expenditure**
**£**
**-**
**(75,335)**
**(1,272)**
**(76,607)**
_Expenditure_
_£_
_-_
_(86,689)_
_(24,952)_
_(111,641)_|**Transfers**
**in/out**
**£**
**-**
**330,577**
**(330,577)**
**-**
_Impairment_
_£_
_(600,000)_
_-_
_-_
_(600,000)_|**Balance at**
**31**
**December**
**2020**
**£**
**193,500**
**426,061**
**45,337**| |---|---|---|---|---|---| ||||||**664,898**| ||||||_Balance at_
_31_
_December_
_2019_
_£_
_193,500_
_73,954_
_171,967_| |**Summary of funds - prior year**|||||| |Designated funds
General funds
Restricted funds|||||| ||||||_439,421_| ## **Designated Funds** **Existing Church Fund** - Fixed asset fund for Church Building. **Church Rebuild Project** - Fund for Church Rebuild Project. ## **Restricted Funds** **Building Fund** - Fund for rebuild of Church. **United Fund** - Fund for church group (ages 7-11). **Bright Sparks Fund** - Fund for Mums and Toddlers group. **Wednesday Fellowship Fund** - Fund for mid week group. **Cafe Refresh Fund** - Fund for fortnightly church cafe. **Shooting Stars Fund** - Funds for church after school club (ages 5-6). Page 25 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **17. Analysis of net assets between funds** ## **Analysis of net assets between funds - current period** |**Unrestricted**
**funds**
**2020**
**£**
Tangible fixed assets
480,577
Current assets
139,764
Creditors due within one year
(780)
**Total**
619,561
**Analysis of net assets between funds - prior period**
_Unrestricted_
_funds_
_2019_
_£_
Tangible fixed assets
150,000
Current assets
117,454
**Total**
267,454|**Restricted**
**funds**
**2020**
**£**
-
45,337
-
45,337
_Restricted_
_funds_
_2019_
_£_
-
171,967
171,967|**Total**
**funds**
**2020**
**£**
**480,577**
**185,101**
**(780)**
**664,898**
_Total_
_funds_
_2019_
_£_
_150,000_
_289,421_
_439,421_| |---|---|---| ## **18. Related party transactions** There were no related party transactions or expenses incurred by Trustees in either year. Page 26