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 2023
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 2023
| 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 (Resigned 14 February 2023) | |
| 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 2023
The Trustees present their annual report together with the financial statements of the Company for the 1 January 2023 to 31 December 2023. 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.
Our church values are:
-
Peace
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Love
-
Unity
-
Service
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 2023
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)
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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 Afternoon youth group (SALT)
No Strings Attached – Puppet team
• Activities for midweek fellowship Seniors meeting Refresh Café Craft & Sew on
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Activities for men including Men’s events, days out and meals Young men's Bible study and fellowship group
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Activities for women including Ladies’ nights Craft events Women's Bible study and fellowship group
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Activities for newcomers including Alpha course.
Page 3
WALL HEATH EVANGELICAL FREE CHURCH
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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 full time 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 three part time paid members of staff. An administrator, a site manager and Café manager. All other members of the Church fulfil their roles on an entirely voluntary and unpaid basis. All 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 church saw numerical growth in 2023 as well as expanding the number of ministries we run as a church. The building lettings also grew steadily throughout the year.
We hosted a local Black Country conference for the FIEC (Fellowship of Independent Evangelical Churches) in March. Also we were the away day venue for Grace Church Stirchley in July and hosted the conference for the Black Country and Sandwell foodbank in April.
In September, after detailed planning and preparation, the Olive Branch Café opened, as a not-for-profit business. We employed a part time member of staff to run this as a ministry, but as a support to other church and community ministries and lettings that take place in the church premises. It relies on the many volunteers who serve willingly and faithfully. It has been a great help to a local community group who support adults with learning disabilities, who attend weekly due to it being a safe welcoming café space.
The church also also held its first baptismal service in November and ran an Alpha course on Sunday evenings throughout the year.
Page 4
WALL HEATH EVANGELICAL FREE CHURCH
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
Achievements and performance (continued)
Mission Support
Krasif Aid – supporting the vulnerable through Sliven Baptist Church. 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 New Kapporet - Christian telephone support ministry and prayer
Church Fabric
The church building is in use in some form almost every day and has been a great provision to be able to expand what we do as a church. Some aspects of the original build were not completed and fundraising for the dividers upstairs, fences and PA equipment continue.
Due to the increased usage, a site manager was employed to oversee maintenance and setup.
There have been some minor issues with the building. The heating system was changed to work from an app instead of manual clocks and a number of leaks have had to be repaired.
Place of Worship
We have gathered Sunday services on Sunday mornings and evenings, and the sermons are recorded and put on our website for anyone to listen to.
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.
Page 5
WALL HEATH EVANGELICAL FREE CHURCH
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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 2023
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.
This is considered by the Treasurer to be an acceptable financial position
The charity currently has total funds of £1,099,225 (2022: £1,107,005) of which £1,071,624 (2022: £1,106,223) is unrestricted. The free reserves which amounts to the unrestricted funds less fixed assets is equal to negative £497,402 (2022: Negative £491,240). Please note that there are creditors greater than one year of £483,948 (2022: £498,705) and if the creditors greater than one year are removed from free reserves then the free reserves are negative £13,454 (2022: £6,465)
Restricted funds are £27,601 (2022: £782).
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 2023
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
The church operates under the business and charity name ‘Wall Heath Evangelical Free Church.’
The church has a working name of ‘New Life Church Wall Heath’, which was agreed by the Charity Commission in November 2022.
This change of our outward name from Wall Heath Evangelical Free Church to the working name of New Life Church Wall Heath, took place over the Easter weekend in 2023.
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 Ilmlt•d by guarant••) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2923 8tat•m•nt of Tru•to•1' Mpon•lbllltl•• prep8dng the Trustees, report 8ThJ the finan¢ial $18tements In aCUnCe V•ilh akStAlaW and Unlted KIn ACCOUnng S[5 {Unltsd KIWM Generalty ALrep1 Awwnllrwj Practtce). Company Lqw roquires the TrleeS to prepare financlal 8t8tements for each flnanclal . f3ynp8ry law. thg TnJst8e8 musl not approve the finanaal st8tsments unless they are Satisfi that tlw gi a true and fair view Ihe stste of affalrs of the Company and of $ Inwming resources and appltC8tton of rescuces. induding Tts Income and expenditure, for that p8riod. In preparing th688 ffinanwl statements. the TTUSt888 8re requir8d to: sultsblg a)un Fdides 8fKI then appty them LVtsi8tenty. ob88rve the methcts arKJ prfndkkn of Ihe Charities SORP IFRS 1021.. m8ke ludgm•nts and accourtting estimats8 thal 8r8 raasonable and tent 5tste whethor StarKlard8 IFRS 1021 b88n &ct to Y mat181 d8partur8s disch)s&J aThJ ext181n in thè financial statements; prepare th8 fin8n(i81 8ments on the goirNJ LX)ncem b8Si8 unth6 It18 Inapw(yl8te lo pr98um8 that the Company will in business. the Companys Ir8nSa¢tlO and disclose with Teasonable otxurBcy at any time the 16n8rwl w8Styon of the Company and 8nabl8 them to enyure that Ihe f+n8ncial slBtaments (y)mpty th8 Ccmnpanies Act 2006. Thoy are also responslble for saf•'wvJ the 8s88ts of the Company arnj henc4 taking reay)natr4e ep8 for prevention and detecthn and other Irrlares. Apprmd by order of the mwrMs crfthe bo8Td ofTnJ3tees and S9n on their behaifby. MBDJon J Orton Trustee Dole: Page 9
WALL HEATH EVANGELICAL FREE CHURCH {A company Ilmlt•d by guarant••) INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Ind•p•nd•nt Examln•fJ R•p(t to th• Tru•t•M of W•ll H•#th Evanyllcal Frw Chw¢h rtr Compan) I reFKvt to the charty Tngs on my examin11c ol the ao>)unts oftr Cryryfor th8 w end 31 Dmber 2023. Rosp1b1ll1l•l and ol R•port A8 the Trustee8 of tho C¢¥npany18ThJ h6 dlr8ctors for the pu)868 of I) yvu aro f8sFNvdible for the Hawng 8att3fa th81 Ihe 8rtwnts of the Company are not Iarj to t aL¥JitwJ Part 16 ofthe 2006 Ad and ore eligi0 for irK18FthI examinatK)n, I rgwrt Sn fespect of my exaThMnal¥)n (rf CompBnl8 acojunts carried (t under 145 of the Charibes X111 (the 2011 Arfl. In fAThJYWJ fXrt my examinalk I h•NF tho Dlr&#KTh by the Charity commiss urth 14q5Xb) dthe 2011 Ad. Ind•p•nd•nt EMmln•V• Statsmmrt 0xaminaOn gfvlng me cau88 to belbve.. th8 accounts do not acc{ wlth tlwtse rrdS.. or any wuirement that the aw)urts gNè a Iru8 and fairf vivw wthich 18 a m#tt8r CCmKlwed as part of an independent eXaMrn8n'. or the accounts have not been prepared In a(Wrd0n vhth the mathcth arKI prindp485 staton1 of Recommended Pracb"r for Oon11ng aTrJ reporting by Charibes18Nlt18 to rtsiilies preparing their 8c(xwnts In accordance ith th6 Finan Rewtiry Stsrylard aPicAtIe in the UK aThJ Rewbilc of Ireland {FRS 10211. attenknn should be in th1$ rnport in ordor to enable a proper Undorstang crf the •)Xnts to be r8a¢h&J. SMJned.' 810 The Grnnary, Folloy Road. P890 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 2023
| Note Income from: Donations and legacies 3 Investments 4 Other income 5 Total income Expenditure on: Charitable activities 6 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2023 £ 121,293 140 18,147 139,580 174,179 174,179 (34,599) 1,106,223 (34,599) 1,071,624 |
Restricted funds 2023 £ 26,993 - - 26,993 174 174 26,819 782 26,819 27,601 |
Total funds 2023 £ 148,286 140 18,147 166,573 174,353 174,353 (7,780) 1,107,005 (7,780) 1,099,225 |
Total funds 2022 £ 158,178 26 5,462 |
|---|---|---|---|---|
| 163,666 | ||||
| 112,243 | ||||
| 112,243 | ||||
| 51,423 | ||||
| 1,055,582 51,423 |
||||
| 1,107,005 |
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 2023
| 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 |
17,253 12,370 29,623 (15,476) |
2023 £ 1,569,026 1,569,026 14,147 (483,948) 1,099,225 1,099,225 27,601 1,071,624 1,099,225 |
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 |
|---|---|---|---|---|
Page 12
WALL HEATH EVANGELICAL FREE CHURCH IA compony Ilmlt•d by guarant) REGISTERED NUM8ER: 10288333 BALANCE SHEET (CONTINUED) AS AT 31 DECEM8ER 2023 The Company w88 ontided to exempbon from audrt under 88don 477 of th8 Companies 2D)6. Th8 membeTS have not reqLMr&J the cc¥nFAry b) cthln an audrt for the >par in In YanC¢ sect)n 476 of Companie5 Act 2C(6. The Trustees ackrledge their rsnsIbIlio$ for Cornng with the rwulrpmwts olts fvdilh resFA& acwjnting records and prep8rallon of finBnual statements. Th8 financi818tatements have boon prepar80 In accwdance wth th6 provt8Ths appIlb to enlrll88 subi8Ct tr) the small compani08 TguITro. The fin8ncAal statements were apwDvthI and autlKJrfwJ for su by the Tnt0•s 8rKI Iheir behaff ty. B D Jon•• J Orton 2L) The notes on pages 14 to 28 fomi part ofth88e finanryal stslorrwts. P898 13
WALL HEATH EVANGELICAL FREE CHURCH
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
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 2023
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 2023
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:
- Freehold property 2% straight line - Plant and machinery 20% reducing balance
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 2023
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 2023
3. Income from donations and legacies
| Unrestricted funds 2023 £ Donations 120,943 Grants 350 121,293 Total 2022 104,374 |
Restricted funds 2023 £ 26,993 - 26,993 53,804 |
Total funds 2023 £ 147,936 350 148,286 158,178 |
Total funds 2022 £ 156,406 1,772 |
|---|---|---|---|
| 158,178 | |||
4. Investment income
| Interest received Total 2022 Other incoming resources Hire of building Olive Branch Café Total 2022 |
Unrestricted funds 2023 £ 140 26 Unrestricted funds 2023 £ 10,931 7,216 18,147 5,462 |
Total funds 2023 £ 140 26 Total funds 2023 £ 10,931 7,216 18,147 5,462 |
Total funds 2022 £ 26 |
|---|---|---|---|
| Total funds 2022 £ 5,462 - |
|||
| 5,462 | |||
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 2023
6. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2023 £ Charitable activities 174,179 Total 2022 111,206 |
Restricted funds 2023 £ 174 1,037 |
Total 2023 £ 174,353 112,243 |
Total 2022 £ 112,243 |
|---|---|---|---|
7. Analysis of expenditure by activities
| Charitable activities Total 2022 |
Activities undertaken directly 2023 £ 89,133 76,464 |
Support costs 2023 £ 85,220 35,779 |
Total funds 2023 £ 174,353 112,243 |
Total funds 2022 £ 112,243 |
|---|---|---|---|---|
Page 19
WALL HEATH EVANGELICAL FREE CHURCH
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
7. Analysis of expenditure by activities (continued)
Analysis of direct costs
| Evangelism Missionary work Children's work Staff costs Building repairs Olive Branch Café Total 2023 Total 2022 Analysis of support costs Depreciation Subscriptions Communications Computer costs Insurance Rates and electricity Equipment Sundry expenses Mortgage interest Accountancy Total 2023 Total 2022 |
Activities 2023 £ 60,595 6,807 1,416 12,875 1,238 6,202 89,133 76,464 Activities 2023 £ 29,437 3,739 1,393 - 1,777 11,144 4,485 3,274 29,257 714 85,220 35,779 |
Total funds 2023 £ 60,595 6,807 1,416 12,875 1,238 6,202 89,133 76,464 Total funds 2023 £ 29,437 3,739 1,393 - 1,777 11,144 4,485 3,274 29,257 714 85,220 35,779 |
Total funds 2022 £ 51,145 11,590 712 12,035 982 - |
|---|---|---|---|
| 76,464 | |||
| Total funds 2022 £ - 3,833 1,311 799 1,497 6,942 1,876 2,220 16,677 624 |
|||
| 35,779 | |||
Page 20
WALL HEATH EVANGELICAL FREE CHURCH
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
8. Staff costs
| Wages and salaries Social security costs Pension contributions |
2023 £ 50,309 7,686 2,600 60,595 |
2022 £ 40,519 8,157 2,469 |
|---|---|---|
| 51,145 |
The average number of persons employed by the Company during the year was as follows:
| 2023 | 2022 | |
|---|---|---|
| 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 £49,626 (2022: £41,095)
9. Trustees' remuneration and expenses
| 2023 | 2022 | ||
|---|---|---|---|
| £ | £ | ||
| M B D Jones | Remuneration | 35,320 | 27,480 |
| Pension contributions paid | 2,600 | 2,469 | |
| K D Cram | Remuneration | 11,706 | 11,146 |
During the year ended 31 December 2023, expenses totalling £ 333 were reimbursed or paid directly to 1 Trustee (2022 - £NIL to Trustee) .
10. Tangible fixed assets
| Cost or valuation At 1 January 2023 At 31 December 2023 |
Freehold property £ 1,595,865 1,595,865 |
Plant and machinery £ 2,598 2,598 |
Total £ 1,598,463 |
|---|---|---|---|
| 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 2023
10. Tangible fixed assets (continued)
| Depreciation Charge for the year At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022 |
Freehold property £ 28,917 28,917 1,566,948 1,595,865 |
Plant and machinery £ 520 520 2,078 2,598 |
Total £ 29,437 |
|---|---|---|---|
| 29,437 | |||
| 1,569,026 | |||
| 1,598,463 |
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 |
2023 £ 17,253 17,253 |
2022 £ 16,893 |
|---|---|---|
| 16,893 |
12. Creditors: Amounts falling due within one year
| Mortgage (secured) Other creditors Accruals and deferred income |
2023 £ 4,780 10,000 696 15,476 |
2022 £ 5,152 10,000 624 |
|---|---|---|
| 15,776 |
Other creditors falling due within one year includes £10,000 (2022: £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 2023
13. Creditors: Amounts falling due after more than one year
| Mortgage (secured) Other creditors |
2023 £ 343,948 140,000 483,948 |
2022 £ 348,705 150,000 |
|---|---|---|
| 498,705 |
Other creditors falling due after more than one year includes £140,000 (2022: £150,000) 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 |
2023 £ 319,572 70,000 389,572 |
2022 £ 315,888 80,000 |
|---|---|---|
| 395,888 |
Mortgage of £348,728 (2022: £353,857) 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 2023
14. Financial instruments
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Financial assets | ||
| Financial assets measured at fair value through income and expenditure | 12,370 | 6,130 |
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 2023
15. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds - all funds Restricted funds Building fund Total of funds |
Balance at 1 January 2023 £ 1,106,223 782 1,107,005 |
Income £ 139,580 26,993 166,573 |
Expenditure £ (174,179) (174) (174,353) |
Balance at 31 December 2023 £ 1,071,624 |
|---|---|---|---|---|
| 27,601 | ||||
| 1,099,225 |
Page 25
WALL HEATH EVANGELICAL FREE CHURCH
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
15. Statement of funds (continued)
Statement of funds - prior 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 26
WALL HEATH EVANGELICAL FREE CHURCH
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
16. Summary of funds
Summary of funds - current year
| General funds Restricted funds |
Balance at 1 January 2023 £ 1,106,223 782 1,107,005 |
Income £ 139,580 26,993 166,573 |
Expenditure £ (174,179) (174) (174,353) |
Balance at 31 December 2023 £ 1,071,624 27,601 |
|---|---|---|---|---|
| 1,099,225 |
Summary of funds - prior year
| General funds Restricted funds |
Balance at 1 January 2022 £ 1,055,029 553 1,055,582 |
Income £ 109,862 53,804 163,666 |
Expenditure £ (111,206) (1,037) (112,243) |
Impairment £ 52,538 (52,538) - |
Balance at 31 December 2022 £ 1,106,223 782 |
|---|---|---|---|---|---|
| 1,107,005 |
17. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2023 £ Tangible fixed assets 1,569,026 Current assets 2,022 Creditors due within one year (15,476) Creditors due in more than one year (483,948) Total 1,071,624 |
Restricted funds 2023 £ - 27,601 - - 27,601 |
Total funds 2023 £ 1,569,026 29,623 (15,476) (483,948) |
|---|---|---|
| 1,099,225 |
Page 27
WALL HEATH EVANGELICAL FREE CHURCH
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
17. Analysis of net assets between funds (continued)
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 2022 £ 1,598,463 22,241 (15,776) (498,705) 1,106,223 |
Restricted funds 2022 £ - 782 - - 782 |
Total funds 2022 £ 1,598,463 23,023 (15,776) (498,705) 1,107,005 |
|---|---|---|---|
18. Related party transactions
During the year, M B D Jones, a trustee of the Charity received remuneration of £37,920 (2022: £29,949) and was reimbursed expense of £333 (2022: NIL).
K D Cram received remuneration of £11,706 (2022: £11,146)
Other than those already disclosed above there were no related party transactions or expenses incurred by Trustees in either year.
Page 28