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2022-12-31-accounts

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 2022

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 - 28

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 2022

Trustees A Allman (Resigned 16 July 2023)
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
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 2022

The Trustees present their annual report together with the financial statements of the Company for the 1 January 2022 to 31 December 2022. 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:

Our church values are:

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 2022

Objectives and activities (continued)

b. Activities undertaken to achieve objectives

The main activities in relation to these objects include:

No Strings Attached – Puppet team

Care for the Family accredited courses

Page 3

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Objectives and activities (continued)

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.

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

The transition out of Covid restrictions and the provision of the new building has enabled the church to return to many of its practices that took place before March 2020.

We held an opening and dedication weekend in April to mark the completion of the rebuild, to which local dignitaries, community representatives, the press, supporters, old friends and our current congregation were all invited.

The church held its first child dedication service in the new building in April, and a couple of others later in the year.

The church also held a marriage rededication service during a Sunday morning during worship time in June.

A church lunch was held in October and was the first time the kitchen was fully used.

Page 4

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

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 European Christian Mission – Phillipe & Joanne Mayhew Gus Eyre – Prison Ministry 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 Black Country Foodbank Greater Europe Mission - 2 interns on the 10/2 programme New Kapporet - Christian telephone support ministry and prayer

Church Fabric

The church held its first service in the new building in December 2021, but Mayway Construction Ltd continued the final parts of the rebuild in early 2022. This concluded with work to rectify the snagging items later in 2022, but these have not prevented us from using the building.

Work also continued towards the fundraising aspect of the project. This included a suitable PA system, TV screens in the main hall and receiving a grant of £25,200.00 in April towards our lift from Enovert Community Trust. This was completed and submitted in house by one of the trustees. We paid the 5% retention invoice to Mayway Construction Ltd in late 2022, concluding our contract with them.

Having a lift installed has opened the use of the building to everyone. An upstairs kitchen has started to be installed as a gift by one of our members..

Place of Worship

Gathered Sunday services resumed at the church building on both a morning and evening in January 2022, but continued to be streamed and recorded for those watching online or at a later date.

House groups were held in people’s homes and at the church building on a rota basis twice a month and offer encouragement, support, prayer, Bible study and friendship.

Prayer times are held twice a month on a Sunday evening and at other times during the week.

Pastoral care is offered and given to everyone within the church and to those within the community who need our help.

With the restrictions imposed on gathering during the pandemic coming to an end, church activities slowly returned to normal during 2022

Page 5

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

Youth Work

Shooting Stars – A Friday night meeting for children in school years reception, years 1-2, with games, singing, craft activities etc. It runs at the same time as United but in a different part of the building.

United - A Friday night meeting for primary school children in years 3 - 6

with games, singing, craft activities etc. It runs at the same time as Shooting Stars but in a different part of the building.

Connect on Friday nights – for children in school years 7-11. On average 6-12 young people come each week to enjoy a time of fun, games, art, craft, and Christian teaching.

SALT- a short time for around 8 young people to meet at church on a Sunday afternoon once a month. Discussions, bible study and prayer times and food and drink.

Holiday Bible Club – after 2 years of not being able to do HBC, a Monday to Friday children’s club was held each morning for a week in July, with a family barbecue on the Friday lunchtime.

Creative

No Strings Attached puppet team – Performances on Sundays, in school assemblies and at the carol service. A performance took place in the new church building on Christmas Day.

Community

Bright Sparks Toddlers - This is an opportunity for parents and carers to come and share fellowship together with their young children.

Livewires / Sparklers /Crèche – Up to 25 children are taught simple Bible stories during the Sunday morning church services. The upstairs rooms in the new church building have made a big difference to running this meeting, allowing the children to have space to worship and have age-appropriate lessons.

Seniors meeting - A daytime fellowship meeting weekly on Wednesdays, which largely attracts people of a senior age but is open to all. This restarted with a Jubilee special in June and alternates between a service, followed by fellowship in the café the following week.

Craft & Sew on – A bi-weekly fellowship meeting based around craft and anything creative.

Café Refresh - A café providing beautiful cakes and tea/coffee for all the community.

Schools team – Take assemblies on a regular basis at 4 primary schools and occasionally are involved in lessons. We support the GSUS Live trailer at secondary schools when it is in the area. We had a visit from a year 1 and 2 class from a local school in March to share about what Easter means to Christians.

New Bradley Hall Residential home - Socially distanced outdoor carol service.

Page 6

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

Lettings – With the completion of the new building the church was able to offer space to community groups and organisations. A brochure has been completed and an area on the website dedicated to letting the space we have. Covid has had an effect on many of the groups that used to hire our old building but lettings increased steadily throughout the year.

Fellowship of Independent Evangelical Churches local conference hosted in March.

Our church website has continued to well accessed for notices, Sunday services both pre-recorded and live streamed, with a dedicated members area for church related information.

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.

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 reserves accumulated were set aside specifically to fund the rebuild in 2022. The remainder supports the on-going upkeep of the church fabric and salary payment.

This is considered by the Treasurer to be an acceptable financial position

The charity currently has total funds of £1,107,005 (2021: £1,055,582) of which £1,106,223 (2021: £1,055,029) is unrestricted. Within the unrestricted funds is £nil (2021: £nil) 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 negative £491,240 (2021: Negative £496,512). Please note that there are creditors greater than one year of £498,705 (2021: £503,725) and if the creditors greater than one year are removed from free reserves then the free reserves are £6,465 (2021: £7,213)

Restricted funds are £782 (2021: £553).

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.

Page 7

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

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:

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

Plans for future periods

During 2022, the Trustees proposed to the change the name of the church to ‘New Life Church Wall Heath.’. This proposal was voted on and passed at a church-members meeting in late October 2022. The new name would be a working name within our charitable status and was agreed by the Charity Commission in November 2022

The change of name will take place over the Easter weekend in 2023.

Page 8

WALL HEATH EVANGELICAL FREE CHURCH (A Company limited by guarantee) TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Statgmgllt of Trustees. responslbllltles The Trustees (who 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 {Uniled Kingdom Generally Accepted Accounting Praclice}- Comp8ny law requires the Trustees to prepare financial statements for each financlal . Under company law, the Trustees musl 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 ils income and expenditure, for that period. In preparing these financial ststements, the Trustees are ￿qUired to.. select suitable 8CCOUnting policies and then apply them consistently., observe the methods and pnnciples of the Charities SORP IFRS 1021., make judgments and accounting estsmates that a￿ reasonable and prudent; stste whether applicable UK Accounting Standards {FRS 1021 have been followed. subject lo any material departures disclosed and explained in the financial statements.. prepare the financial statements on the going concern basis unless rt 1$ inappropriate to presume that the Company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient lo show and explaln the Company's transactions and disclose with reasonable accuracy al any tiffle the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitses. Approved by order ofthe members of the board of Trustees on and signed on their behalf by.. 8 D Jones Trustee MJOrton Trustee Page 9

WALL HEATH EVANGELICAL FREE CHURCH IA company Ilmlted by guaranteel INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 Independent Examlnefs Report to the Trustees of Wall Hoath Evangelical Free Church Ilho Company.) I report lo the charity Trustees on my examination of the accounts of the Company for the year ended 31 December 2022. Responslbllltlgs and Basls of Report As the Trustees of the Company land ils directors for the purposes of Company lawl you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 20061'the 2006 ACVI. Having satisfied myself that the accounts of the Company are not required to be audited undgr Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Company's accounts carried out under section 145 of the Charities Act 2011 {'the 2011 Act'l. In carrying out my ex8minab.on I have followed the Directions given by the Charity Commission under section 14515llbl of the 2011 Act. Independent examlnevs Statement I have completed my examinalion. I confirm that no matters have come to my attention in connection with the examination giving me Cause lo believe-. accountlng records We￿ not kept in respect of the Company as requI￿d by section 386 of the 20C6 Act., or the accounts do not accord with those records.. or the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requ1￿Ment that the accounts give a 'lrue and fairf view which is not a matter considered as part of an independent examination., or the accounts have not been prepared in accord8nce with the meth¢)ds and principles of the Statement of Recommended Practi￿ for accounting and reporting by charities lapplicable lo charities p￿paring their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 10211. I have no concerns and have come across no other matters in connection with the examination lo which attention $hould be drawn in this re ort in order lo enable a proper understanding of the accounts to be reached. Signed= Andrew Davi ouse ACMA, GCMA The Granary, Folley Road, Ackleton, WV6 7JL Page 10

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 2022

Note
Income from:
Donations and legacies
3
Investments
4
Other income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net (expenditure)/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
2022
£
104,374
26
5,462
109,862
111,206
111,206
(1,344)
52,538
51,194
1,055,029
51,194
1,106,223		 Restricted
funds
2022
£
53,804
-
-
53,804
1,037
1,037
52,767
(52,538)
229
553
229
782		 Total
funds
2022
£
158,178
26
5,462
163,666
112,243
112,243
51,423
-
51,423
1,055,582
51,423
1,107,005		 Total
funds
2021
£
484,911
4
80
484,995
94,311
94,311
390,684
-
390,684
664,898
390,684
1,055,582

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 28 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 2022

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		 16,893
6,130
23,023
(15,776)		 2022
£
1,598,463
1,598,463
7,247
(498,705)
1,107,005
1,107,005
782
1,106,223
1,107,005		 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

Page 12

WALL HEATH EVANGELICAL FREE CHURCH {A ¢ompany limited by guaranteè) REGISTERED NUMBER: 10288333 BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2022 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 lo accounting ￿COrdS and p￿paration of financial slatemenls. The financial statements have been prepared in accordance with the provisions applicable to entities subject lo the small companies regime. The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf by.. MBOJone8 {Trusleel J Orton {Truslee) The note$ on pages 14 to 28 fomi part of these financial statements. Page13

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 14

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022

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 bases:

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 16

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 17

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

3. Income from donations and legacies

Unrestricted
funds
2022
£
Donations
103,004
Grants
1,370
104,374
Total 2021
110,329		 Restricted
funds
2022
£
53,402
402
53,804
374,582		 Total
funds
2022
£
156,406
1,772
158,178
484,911		 Total
funds
2021
£
363,079
121,832
484,911

4. Investment income

Interest received
Total 2021
Other incoming resources

Hire of building
Quinta deposits
Total 2021		 Unrestricted
funds
2022
£
26
4
Unrestricted
funds
2022
£
5,462
-
5,462
80		 Total
funds
2022
£
26
4
Total
funds
2022
£
5,462
-
5,462
80		 Total
funds
2021
£
4
Total
funds
2021
£
-
80
80

5. Other incoming resources

Page 18

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

6. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2022
£
Charitable activities
111,206
Total 2021
93,556		 Restricted
funds
2022
£
1,037
755		 Total
2022
£
112,243
94,311		 Total
2021
£
94,311

7. Analysis of expenditure by activities

Charitable activities
Total 2021		 Activities
undertaken
directly
2022
£
76,464
79,021		 Support
costs
2022
£
35,779
15,290		 Total
funds
2022
£
112,243
94,311		 Total
funds
2021
£
94,311

Page 19

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Evangelism
Missionary work
Children's work
Staff costs
Building repairs
Total 2022
Total 2021
Analysis of support costs
Subscriptions
Communications
Computer costs
Insurance
Rates and electricity
Equipment
Sundry expenses
Mortgage interest
Accountancy
Total 2022
Total 2021		 Activities
2022
£
51,145
11,590
712
12,035
982
76,464
79,021
Activities
2022
£
3,833
1,311
799
1,497
6,942
1,876
2,220
16,677
624
35,779
15,290		 Total
funds
2022
£
51,145
11,590
712
12,035
982
76,464
79,021
Total
funds
2022
£
3,833
1,311
799
1,497
6,942
1,876
2,220
16,677
624
35,779
15,290		 Total
funds
2021
£
44,178
21,861
105
12,020
857
79,021
Total
funds
2021
£
3,213
630
1,550
414
4,131
-
3,485
1,447
420
15,290

Page 20

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

8. Staff costs

Wages and salaries
Social security costs
Pension contributions		 2022
£
40,519
8,157
2,469
51,145		 2021
£
36,316
7,862
-
44,178

The average number of persons employed by the Company during the year was as follows:

2022 2021
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 £41,095 (2021: £43,522)

9. Trustees' remuneration and expenses

2022 2021
£ £
M B D Jones Remuneration 27,480 36,720
Pension contributions paid 2,469 -
K D Cram Remuneration 11,146 6,802

During the year ended 31 December 2022, no Trustee expenses have been incurred (2021 - £NIL) .

10. Tangible fixed assets

Cost or valuation
At 1 January 2022
Additions
At 31 December 2022		 Freehold
property
£
1,551,541
44,324
1,595,865		 Plant and
machinery
£
-
2,598
2,598		 Total
£
1,551,541
46,922
1,598,463

Page 21

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10. Tangible fixed assets (continued)

Net book value
At 31 December 2022
At 31 December 2021		 Freehold
property
£
1,595,865
1,551,541		 Plant and
machinery
£
2,598
-		 Total
£
1,598,463
1,551,541

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		 2022
£
16,893
16,893		 2021
£
43,896
43,896

12. Creditors: Amounts falling due within one year

Mortgage (secured)
Other creditors
Accruals and deferred income		 2022
£
5,152
10,000
624
15,776		 2021
£
1,275
42,500
1,200
44,975

Other creditors falling due within one year includes £10,000 (2021: £10,000) of a £20,000 interest free loan from a member.

Page 22

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

13. Creditors: Amounts falling due after more than one year

Mortgage (secured)
Other creditors		 2022
£
348,705
150,000
498,705		 2021
£
343,725
160,000
503,725

Other creditors falling due after more than one year includes £150,000 (2021: £160,000) of interest free loans from members.

£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		 2022
£
315,888
80,000
395,888		 2021
£
309,736
90,000
399,736

Mortgage of £353,857 (2021: £345,000) 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 mortgage term is 25 years.

Page 23

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

14. Financial instruments

2022 2021
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 6,130 8,845

Financial assets measured at fair value through income and expenditure comprise cash at bank.

Page 24

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

15. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds - all funds
Restricted funds
Building fund
United fund
Bright Sparks fund
Seniors work
Cafe Refresh fund
Shooting Stars fund
Total of funds		 Balance at 1
January
2022
£
1,055,029
-
200
97
10
142
104
553
1,055,582		 Income
£
109,862
51,615
402
816
362
609
-
53,804
163,666		 Expenditure
£
(111,206)
-
(364)
-
(186)
(487)
-
(1,037)
(112,243)		 Transfers
in/out
£
52,538
(51,615)
(210)
(609)
-
-
(104)
(52,538)
-		 Balance at
31
December
2022
£
1,106,223
-
28
304
186
264
-
782
1,107,005

Transfers

Transfer between restricted and unrestricted funds consists of fixed asset additions of £46,922

Page 25

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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
Seniors work
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)		 Impairment
£
(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

Page 26

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

16. Summary of funds

Summary of funds - current year

General funds
Restricted funds		 Balance at 1
January
2022
£
1,055,029
553
1,055,582
Balance at
1 January
2021
£
193,500
426,061
45,337
664,898		 Income
£
109,862
53,804
163,666
Income
£
-
110,413
374,582
484,995		 Expenditure
£
(111,206)
(1,037)
(112,243)
Expenditure
£
-
(93,556)
(755)
(94,311)		 Transfers
in/out
£
52,538
(52,538)
-
Impairment
£
(193,500)
612,111
(418,611)
-		 Balance at
31
December
2022
£
1,106,223
782
1,107,005
Balance at
31
December
2021
£
-
1,055,029
553
Summary of funds - prior year
Designated funds
General funds
Restricted funds
1,055,582

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 27

WALL HEATH EVANGELICAL FREE CHURCH

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
1,598,463
Current assets
22,241
Creditors due within one year
(15,776)
Creditors due in more than one year
(498,705)
Total
1,106,223		 Restricted
funds
2022
£
-
782
-
-
782		 Total
funds
2022
£
1,598,463
23,023
(15,776)
(498,705)
1,107,005

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2021
£
1,551,541
52,188
(44,975)
(503,725)
1,055,029		 Restricted
funds
2021
£
-
553
-
-
553		 Total
funds
2021
£
1,551,541
52,741
(44,975)
(503,725)
1,055,582

18. Related party transactions

During the year, M B D Jones, a trustee of the Charity received remuneration of £29,949 (2021: £36,720).

K D Cram received remuneration of £11,146 (2021: £6,802)

Other than those already disclosed above there were no related party transactions or expenses incurred by Trustees in either year.

Page 28