**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 2021** ## **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 - 11| |**Independent examiner's report**|12| |**Statement of financial activities**|13| |**Balance sheet**|14 - 15| |**Notes to the financial statements**|16 - 30| ## **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 2021** |**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 (resigned 14 July 2021)| |**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 2021** The Trustees present their annual report together with the financial statements of the Company for the 1 January 2021 to 31 December 2021. 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 2021** ## **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 2021** ## **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 Socially distanced morning worship services held fortnightly in a local Primary school from April 2021. This changed to weekly from September. These services were livestreamed and then uploaded to the church website. A classroom was also used for the children’s work. A carol service and Christmas Day Service were held in the new church building in December. ## Mission Support Krasif Aid – supporting the vulnerable through Sliven Baptist Church, 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 for Jen Hartnell located in Pensnett. Birmingham City Mission – John Platt Slavic Gospel Association - Vadim Musurivski in Moldova European Christian Mission – Phillipe & Joanne Mayhew in France Gus Eyre – Prison Ministry in Lancashire. Sharon Tromans - British Youth for Christ Amen Ministries – Shoeboxes to Roma Gypsy communities in Romania. Fellowship of Independent Evangelical Churches (FIEC) Kolkata City Mission – India Operation Mobilisation Support for Gareth and Malou Bolton Tear Fund The Leprosy Mission Africa Rural Trainers (ART) Open Doors Page 4 ## **WALL HEATH EVANGELICAL FREE CHURCH (A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021** ## **Achievements and performance (continued)** ## Church Fabric 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 has continued into 2021 and despite the challenges of Covid19, lockdowns and lack of materials delayed deliveries and labour issues, the building reached almost completion by December 2021. There is still a list of snagging items to reconcile, but these have not prevented us from re opening the building. 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. In April 2021 we received a grant of £35,582.00 towards our kitchen and servery area from Enovert Community Trust. This was completed and submitted in house by one of the trustees. We were supported by Dudley CVS, our local council funding team. All the following activities have been sporadic in nature 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 fortnightly at 10.30am from April 2021 in the local primary school. and recorded for our website. Our online services have had significantly higher viewing figures. In September this was increased to weekly, and we began to livestream the services. We held 2 gathered services in our new premises, the first one being our Carol service. This was followed by a Christmas morning service, again in the new building. House groups (usually held in people’s homes) were for most of the year on Zoom and towards the end of the year at the new church building. This was basis a month and offered encouragement, support, prayer, Bible study and friendship. 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. They will both restart in March 2022 SALT - a short time for young people to meet in people’s homes on a Sunday afternoon around 5 people once a month. Discussions, bible study and prayer times and food and drink. Again, this meeting has transferred to Zoom but in person meetings have begun to take place. ## Creative No Strings Attached puppet team – Performances on Sundays, in school assemblies and at the carol service. A Page 5 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021** ## **Achievements and performance (continued)** performance took place in the new church building on Christmas Day. ## 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. Both will restart in person gatherings in 2022. Livewires / Sparklers /Crèche - Around 15 children are taught simple Bible stories during the Sunday morning church services. This restarted in September 2021, when we were able to hire a classroom in the school premises we were using. Wednesday Fellowship - A daytime fellowship meeting weekly, which largely attracts older folk but is open to all. This will be relaunched in 2022. Craft & Sew on – A bi-weekly fellowship meeting based around craft and anything creative. This will restart in 2022. Café Refresh - A bi-weekly café providing beautiful cakes and tea/coffee for all the community. This will reopen in 2022. 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. We have managed to visit a couple of schools as well as providing pre-recorded videos. Our schools team supported the GSUS live trailer during April and May. Gables Residential home – Socially distanced indoor carol service New Bradley Hall Residential home - Socially distanced outdoor carol service. Our church website has seen an increased usage during the pandemic for notices, Sunday services, both prerecorded and live streamed, daily children’s activities, building updates, photographs and bible motivations. Some of these have ceased as restrictions have been lifted. ## **Financial review** ## **a. Going concern** The Trustees have a reasonable expectations that the charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees have reviewed future cashflows for income and expenditure including payment of the bank loan for the next 12 months. They continue to believe that the going concern basis of accounting is appropriate in preparing the financial statements. Page 6 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021** ## **b. Reserves policy** The Trustees are aware of the Charity Reserves: building resilience (CC19) Charity Commission Guidance and are considering developing a reserves policy. It should be noted that a large portion of the current reserves accumulated during 2021 are set aside specifically to fund the rebuild. This is considered by the Treasurer to be an acceptable financial position The charity currently has total funds of £1,055,582 (2020: £664,898) of which £1,055,029 (2020: £619,561) is unrestricted. Within the unrestricted funds is nil (2020: £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 fixed assets is equal to (£494,512) (2020: £138,984). Please note that there are creditors greater than one year of £503,725 and if the creditors greater than one year are removed from free reserves then the free reserves are £7,213 (2020: £138,984) Restricted funds are £553 (2020: £45,337). Page 7 ## **WALL HEATH EVANGELICAL FREE CHURCH (A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021** ## **c. Principal funding** The principal source of funds is mainly through 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 Additional funds for the rebuild were obtained through the list of trust and grant providers below. |Andrew Anderson Trust|£5,000| |---|---| |Norwood and Newton|£30,000| |Grimmitt Trust|£3,000| |Joseph Rank|£30,000| |Keltrucks|£250| |Congregational & General|£15,000| |Bernard Sunley|£20,000| |All Churches Trust|£19,000| |Eric Vincent|£500| |Blakemore foundation|£100| |Geoff Hill Charitable Trust|£500| |WE Dunn|£2,000| |Rowlands Trust|£10,000| |Hobson Charity|£6,000| |Enovert (Specifically for the kitchen & servery)|£35,852| |Edward Cadbury|£5,000| |Laing family Trust|£10,000| |A mortgage was obtained through Charity Bank|£355,000| |The church also received several loans from members|| |to cover the cost of the building work, totalling|£170,000| Page 8 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021** ## **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 9 ## **WALL HEATH EVANGELICAL FREE CHURCH (A company limited by guarantee)** ## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021** ## **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 10 WALL HEATH EVANGEUCAL FREE CHURCH (A Company Ilmlt•d by guarantoe TRUSTEES. REPORT ICOKllNuED) FOR ThE YEAR ENDED 31 DECEthIBER 2021 Plans for futurn wrfods IcontIn￿dI The Trustees are also th& directors of the Company for Ihe purposes of c4Jmpany law) are re$F￿BIble fr preparin9 th8 Trustees, reFK*t and the fin8ncaal ststements in a0>￿rdanCe 7Mih apWiL*ble L8w arml Unitwj KI￿d￿Tr AcoJJnting Slarthrds (Unrted Generally ACC￿ed AttI￿nti￿a Prdclice). Company18w requires Trustees to PW8rB financi81 stst6ments for eath finanoal . Undèr eompany Ivw. the Trust￿ must Mt approvg the finan(ial ststements unless they are satsfth that they gwa a true and fw ¥1￿ of the stste of affaits of the Ccynpany arKI of ts irwrning re5ourcw arKI of rgsources. I￿￿￿aIn9 rts Inctsna and eX￿￿ndrtUre, for that PWK*J. In preparing these financaal statemgnts. the T￿￿188$ are rgwir•J to: select suitable accounting tyjicies arKI then awy thom consistenty, observe the methrmls arKt prinopl&8 of the Chanties SORP IFRS 102): make judgments and accountir*J 8stirnale5 that are reasonable arKI stste vthether apFdicable UK AcLxyJnting Stsndards {FRS 1021 have baen folky**d. Sub￿ to any rnatérial departures disdowj explained in the finanoal ststements" Company *ryll conttnue in trMJsin8SS. Th8 Trustees afè fBSFK)n¥ibI8 fty keerAng adryuate ac1￿ntir￿a rec￿dS that 8r8 suffirj9￿ to SI￿r arnl explwn the Company5 transadKJns aThl disdos8 reasonabl8 acwracy at any time th8 fKwKial rK)Sit￿ crf Company and enable them to gnsur8 that thg financial stst8ments compty with Ihe Compani8s A£t 2(Kffj. TP aro also respon￿ble for 5afryuarding the assets (rf the Crmnpany a￿1 takirwJ reascffth step5 ts It KKgvention and de￿1￿ offra(vJ and ottw lTregularrt￿. and sun&J on tr￿1r tthall by. MBDJon Tnjstee MJOrton Trustae Page 11 WALL HEATH Ev￿GEucAL FREE CHURCH (A compAny Hmlt•d by gu•rants•) INDEPENDEpif EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 Ind•p•rbd•nt Ex•rnln•fs R•port to th• TnNt••s of W•ll H••th E￿ngelICal FrM Church llh• Compan I retth to ￿ chaiTty Trustees on my examinat¥￿ of the accounts of the CC￿nPanY for the ended 31 C)ecember 2021. R•sponsllAlltl•* and Bash of Report As th8 Tnjstees of the C￿npanY land its direct(Ks for the wrposes of C￿pany15w) are rosFX)nsible for the preparalirm of the acCxx￿ts in acxordanr* with the reqU1reff￿ts ol the C(xnwnies Ad 2(Th 2LK6 Arf). Ha￿ saiBfied my8df thal the aLxounts ol th8 Company are Th)t TW4uirwJ lo bg a￿rt￿j under Part 16 of th8 20￿ arml are elyble iThJap8Thknt examination. I reF*Nt in r8sped of my examinaton of th& Companls accx)unts carrbed iJJt undar s&Xion 145 of the char￿eS A£t 2011 fthe 2011 Adl. In Carr￿ng out my examinatKJn I have frAlcr•hJ the [AredIc￿ts given ty the Chanty CommissTron under sedion 145{5Xb) of the 2011 &nL* the Comwls gross income excaed&J £29).1￿1 yt)ur examiner must be a ffwnb@r of a bcty list8d in s￿l￿)n 145 of the 2011 Art I confirm that l am quaIffi￿ to undèrtake the examinat¥M berause l am a member of ACMA. is on8 of ￿ li8tgd trKk4Kgs. examinatw givir¥J me (ause lo b81iove: •xwnlSng roc(xds woro not kept bn roswx of thè Company as requir&1 ty se(lion 386 of the 2[￿￿ Art" the ac(xMJnts do not compty wth the a¢￿Unting requirements of set*on 396 of the Act other than any rnquir8ment that the acLxJunts give a Ift￿ and fairf vi** is Th)t a Matter as part of an indeperKJent exaMinat￿Jn". or the acc4Junts have Th)t twl PTepar&J in aCC￿danCe vthh Ihe rnethc*ls princ#ples of the Ststement of Recommended Prxtice for a¢￿Intir￿J and repytr'ng by chaTSties18ppIi￿￿8 lo chafibes preparing th8br accAMJnts in ac£xfftsnc4 wth the Financa81 R8FMyb'rvJ Stsndard applir2bl& in the UK and Republic of Ireland IFRS 102)]. attenth￿ STr￿j￿j t* drawn in this rerM)rt in order to enabl8 a proper urKJer5t8nding of the a¢oJunts to be r8ach&d. Andrew D8vhJ W ACU GCMA The Granary, F(thy RO￿1, Page 12 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021** |**Note**
**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**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
**110,329**
**4**
**80**
**110,413**
**93,556**
**93,556**
**16,857**
**418,611**
**435,468**
**619,561**
**435,468**
**1,055,029**|**Restricted**
**funds**
**2021**
**£**
**374,582**
**-**
**-**
**374,582**
**755**
**755**
**373,827**
**(418,611)**
**(44,784)**
**45,337**
**(44,784)**
**553**|**Total**
**funds**
**2021**
**£**
**484,911**
**4**
**80**
**484,995**
**94,311**
**94,311**
**390,684**
**-**
**390,684**
**664,898**
**390,684**
**1,055,582**|_Total_
_funds_
_2020_
_£_
_300,011_
_254_
_1,819_| |---|---|---|---|---| |||||_302,084_| |||||_76,607_| |||||_76,607_| |||||_225,477_
_-_| |||||_225,477_| |||||_439,421_
_225,477_| |||||_664,898_| The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 16 to 30 form part of these financial statements. Page 13 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee) REGISTERED NUMBER: 10288333** ## **BALANCE SHEET AS AT 31 DECEMBER 2021** |**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**
Creditors: amounts falling due after more
than one year
13
**Net assets**
**Total net assets**
**Charity funds**
Restricted funds
15
Unrestricted funds
15
**Total funds**|**43,896**
**8,845**
**52,741**
**(44,975)**|**2021**
**£**
**1,551,541**
**1,551,541**
**7,766**
**(503,725)**
**1,055,582**
**1,055,582**
**553**
**1,055,029**
**1,055,582**|_25,704_
_159,397_
_185,101_
_(780)_|_2020_
_£_
_480,577_| |---|---|---|---|---| |||||_480,577_
_184,321_
_-_| |||||_664,898_| |||||| |||||_664,898_| |||||_45,337_
_619,561_| |||||| |||||_664,898_| Page 14 HEATH EVANGEUCAL FREE CHURCH (A company Ilmlt•d by guaranto•1 REGISTERED 14UMBER: 10288333 8ALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2021 The Company was ontitled to oxernpb'on from audit undor séction 477 of thè Compani88 Act 2LK6. The mernb8rs have requir￿1 the (x)mpany to Obt￿ an aLxltt for the in question In wlth K)n 476 of Compani85 Act 2Crf)6. The Trusttss ltr￿r re¥X)nsi￿lIt1&9 for t￿M￿.ng wilh the requirèments Of￿ Acl with respe￿ to ac¢x)unting records and preparation of financial slalements. th8 small companies regme. arKI s19r￿0 on Iheir tthalf by. MBDJoTr8• (rrusteel J Orton rusteel Thè notss on pag8s 16 to 30 fomi part of thase financial slatements. Pap 1S # **WALL HEATH EVANGELICAL FREE CHURCH** # **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **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 Trustees have a reasonable expectations that the charity has adequate resources to continue in operational existence for the foreseeable future. The Trustees have reviewed future cashflows for income and expenditure including payment of the bank loan for the next 12 months. They continue to believe that the going concern basis of accounting is appropriate in preparing the financial statements. Page 16 ## **WALL HEATH EVANGELICAL FREE CHURCH** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **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 17 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **2. Accounting policies (continued)** ## **2.4 Expenditure (continued)** Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs. ## **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. Page 18 ## **WALL HEATH EVANGELICAL FREE CHURCH** **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **2. Accounting policies (continued)** ## **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. ## **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. Page 19 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **3. Income from donations and legacies** |**Unrestricted**
**funds**
**2021**
**£**
Donations
110,329
Grants
-
110,329
_Total 2020_
_95,041_|**Restricted**
**funds**
**2021**
**£**
252,750
121,832
374,582
_204,970_|**Total**
**funds**
**2021**
**£**
**363,079**
**121,832**
**484,911**
_300,011_|_Total_
_funds_
_2020_
_£_
_233,561_
_66,450_| |---|---|---|---| ||||_300,011_| ||||| ## **4. Investment income** |**Unrestricted**
**funds**
**2021**
**£**
Interest received
4
_Total 2020_
_254_|**Total**
**funds**
**2021**
**£**
**4**
_254_|_Total_
_funds_
_2020_
_£_
_254_| |---|---|---| |||| ## **5. Other incoming resources** |**Unrestricted**
**funds**
**2021**
**£**
Hire of building
-
Quinta deposits
80
80
_Total 2020_
_1,570_|**Restricted**
**funds**
**2021**
**£**
-
-
-
_249_|**Total**
**funds**
**2021**
**£**
**-**
**80**
**80**
_1,819_|_Total_
_funds_
_2020_
_£_
_1,570_
_249_| |---|---|---|---| ||||_1,819_| ||||| Page 20 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **6. Analysis of expenditure on charitable activities** ## **Summary by fund type** |**Unrestricted**
**funds**
**2021**
**£**
Charitable activities
93,556
_Total 2020_
_75,335_|**Restricted**
**funds**
**2021**
**£**
755
_1,272_|**Total**
**funds**
**2021**
**£**
**94,311**
_76,607_|_Total_
_funds_
_2020_
_£_
_76,607_| |---|---|---|---| ||||| ## **7. Analysis of expenditure by activities** |Charitable activities
_Total 2020_|**Activities**
**undertaken**
**directly**
**2021**
**£**
79,021
_64,291_|**Support**
**costs**
**2021**
**£**
15,290
_12,316_|**Total**
**funds**
**2021**
**£**
**94,311**
_76,607_|_Total_
_funds_
_2020_
_£_
_76,607_| |---|---|---|---|---| |||||| Page 21 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **7. Analysis of expenditure by activities (continued)** ## **Analysis of direct costs** |Evangelism
Missionary work
Children's work
Staff costs
Building repairs
**Total 2021**
_Total 2020_
**Analysis of support costs**
Subscriptions
Communications
Computer costs
Insurance
Rates and electricity
Equipment
Maintenance
Sundry expenses
Mortgage interest
Accountancy
**Total 2021**
_Total 2020_|**Activities**
**2021**
**£**
105
12,020
857
44,178
21,861
79,021
_64,291_
**Activities**
**2021**
**£**
3,213
630
1,550
414
4,131
-
-
3,485
1,447
420
15,290
_12,316_|**Total**
**funds**
**2021**
**£**
**105**
**12,020**
**857**
**44,178**
**21,861**
**79,021**
_64,291_
**Total**
**funds**
**2021**
**£**
**3,213**
**630**
**1,550**
**414**
**4,131**
**-**
**-**
**3,485**
**1,447**
**420**
**15,290**
_12,316_|_Total_
_funds_
_2020_
_£_
_837_
_13,500_
_1,611_
_46,044_
_2,299_| |---|---|---|---| ||||_64,291_| ||||_Total_
_funds_
_2020_
_£_
_2,249_
_1,150_
_1,131_
_897_
_3,285_
_78_
_660_
_2,086_
_-_
_780_| ||||_12,316_| ||||| Page 22 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **8. Staff costs** |Wages and salaries
Social security costs|**2021**
**£**
**36,316**
**7,862**
**44,178**|_2020_
_£_
_37,907_
_8,137_| |---|---|---| |||| |||_46,044_| The average number of persons employed by the Company during the year was as follows: ||**2021**|_2020_| |---|---|---| ||**No.**|_No._| |Average number of employees|**3**|_3_| No employee received remuneration amounting to more than £60,000 in either year. The key management personnel of the charity are the Trustees. The total remuneration paid to the key management personnel was £43,522 (2020: £42,614) ## **9. Trustees' remuneration and expenses** |||**2021**|_2020_| |---|---|---|---| |||**£**|_£_| |M B D Jones|Remuneration|**36,720**|_36,000_| |K D Cram|Remuneration|**6,802**|_6,614_| During the year ended 31 December 2021, no Trustee expenses have been incurred _(2020 - £NIL)_ . ## **10. Tangible fixed assets** |**Cost or valuation**
At 1 January 2021
Additions
At 31 December 2021|**Freehold**
**property**
**£**
**480,577**
**1,070,964**| |---|---| ||**1,551,541**| Page 23 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **10. Tangible fixed assets (continued)** |**Net book value**
At 31 December 2021
_At 31 December 2020_|**Freehold**
**property**
**£**
**1,551,541**| |---|---| ||_480,577_| 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|**2021**
**£**
**43,896**
**43,896**|_2020_
_£_
_25,704_| |---|---|---| |||| |||_25,704_| ## **12. Creditors: Amounts falling due within one year** |Mortgage (secured)
Other creditors
Accruals and deferred income|**2021**
**£**
**1,275**
**42,500**
**1,200**
**44,975**|_2020_
_£_
_-_
_-_
_780_| |---|---|---| |||| |||_780_| Other creditors falling due within one year includes £10,000 (2020: £0) of a £20,000 interest free loan from a member. Page 24 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **13. Creditors: Amounts falling due after more than one year** |Mortgage (secured)
Other creditors|**2021**
**£**
**343,725**
**160,000**
**503,725**|_2020_
_£_
_-_
_-_| |---|---|---| |||| |||_-_| Other creditors falling due after more than one year includes £160,000 (2020: £0) of interest free loans from members. £10,000 repayable by 31 October 2023. £10,000 repayable by 31 October 2024. £20,000 repayable by 31 October 2025. £20,000 repayable by 31 October 2026. £20,000 repayable by 31 October 2027. £20,000 repayable by 31 October 2028. £20,000 repayable by 31 October 2029. £20,000 repayable by 31 October 2030. £15,000 repayable by 31 October 2031. £5,000 repayable by 31 October 2032. The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is: |Mortgage (secured) payable by instalments
Members Loans|**2021**
**£**
**309,736**
**90,000**
**399,736**|_2020_
_£_
_-_
_-_| |---|---|---| |||| |||_-_| Mortgage of £345,000 (2020: £0) was secured on the building and land of the charity. The interest is base rate plus 4.75% initially and base rate plus 3.75% on final stage payment drawdown. The morgage term is 25 years. Page 25 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **14. Financial instruments** ||**2021**|_2020_| |---|---|---| ||**£**|_£_| |**Financial assets**||| |Financial assets measured at fair value through income and expenditure|**8,845**|_159,397_| Financial assets measured at fair value through income and expenditure comprise cash at bank. Page 26 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **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**
**2021**
**£**
**150,000**
**43,500**
**193,500**
**426,061**
**619,561**
**43,581**
**200**
**797**
**41**
**142**
**576**
**45,337**
**664,898**|**Income**
**£**
**-**
**-**
**-**
**110,413**
**110,413**
**374,330**
**252**
**-**
**-**
**-**
**-**
**374,582**
**484,995**|**Expenditure**
**£**
**-**
**-**
**-**
**(93,556)**
**(93,556)**
**-**
**(252)**
**-**
**(31)**
**-**
**(472)**
**(755)**
**(94,311)**|**Transfers**
**in/out**
**£**
**(150,000)**
**(43,500)**
**(193,500)**
**612,111**
**418,611**
**(417,911)**
**-**
**(700)**
**-**
**-**
**-**
**(418,611)**
**-**|**Balance at**
**31**
**December**
**2021**
**£**
**-**
**-**| |---|---|---|---|---|---| ||||||**-**| ||||||**1,055,029**| ||||||**1,055,029**| ||||||**-**
**200**
**97**
**10**
**142**
**104**| ||||||**553**| ||||||**1,055,582**| ## Transfers Transfer between restricted and unrestricted funds consists of fixed asset additions of £418,611. Transfers between designated funds to unrestricted funds is the finalisation of the building in December 2021 of £193,500 Page 27 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **15. Statement of funds (continued)** ## **Statement of funds - prior 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)_|_Impairment_
_£_
_-_
_-_
_-_
_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_| Page 28 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **16. Summary of funds** ## **Summary of funds - current year** |Designated funds
General funds
Restricted funds|**Balance at 1**
**January**
**2021**
**£**
**193,500**
**426,061**
**45,337**
**664,898**
_Balance at_
_1 January_
_2020_
_£_
_193,500_
_73,954_
_171,967_
_439,421_|**Income**
**£**
**-**
**110,413**
**374,582**
**484,995**
_Income_
_£_
_-_
_96,865_
_205,219_
_302,084_|**Expenditure**
**£**
**-**
**(93,556)**
**(755)**
**(94,311)**
_Expenditure_
_£_
_-_
_(75,335)_
_(1,272)_
_(76,607)_|**Transfers**
**in/out**
**£**
**(193,500)**
**612,111**
**(418,611)**
**-**
_Impairment_
_£_
_-_
_330,577_
_(330,577)_
_-_|**Balance at**
**31**
**December**
**2021**
**£**
**-**
**1,055,029**
**553**| |---|---|---|---|---|---| ||||||**1,055,582**| ||||||_Balance at_
_31_
_December_
_2020_
_£_
_193,500_
_426,061_
_45,337_| |**Summary of funds - prior year**|||||| |Designated funds
General funds
Restricted funds|||||| ||||||_664,898_| 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 29 ## **WALL HEATH EVANGELICAL FREE CHURCH** ## **(A company limited by guarantee)** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **17. Analysis of net assets between funds** ## **Analysis of net assets between funds - current year** |**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
1,551,541
Current assets
52,188
Creditors due within one year
(45,021)
Creditors due in more than one year
(503,679)
**Total**
1,055,029|**Restricted**
**funds**
**2021**
**£**
-
553
-
-
553|**Total**
**funds**
**2021**
**£**
**1,551,541**
**52,741**
**(45,021)**
**(503,679)**
**1,055,582**| |---|---|---| ## **Analysis of net assets between funds - prior year** |Tangible fixed assets
Current assets
Creditors due within one year
**Total**|_Unrestricted_
_funds_
_2020_
_£_
_480,577_
_139,764_
_(780)_
_619,561_|_Restricted_
_funds_
_2020_
_£_
_-_
_45,337_
_-_
_45,337_|_Total_
_funds_
_2020_
_£_
_480,577_
_185,101_
_(780)_
_664,898_| |---|---|---|---| ## **18. Related party transactions** During the year, M B D Jones, a trustee of the Charity received remuneration of £36,720 (2020: £36,000). K D Cram received remuneration of £6,802 (2020: £6,614) Other than those already disclosed above there were no related party transactions or expenses incurred by Trustees in either year. Page 30