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2021-08-31-accounts

Broadgrace Charitable Incorporated Organisation Trustees’ annual report and financial statements

1[st] September 2020 – 31[st] August 2021

Contents

Trustees’ annual report page 1
Financial review page 8
Independent examiner’s report page 10
Financial statements and notes page 11

Trustees’ annual report

For the period 1[st] September 2020 – 31[st] August 2021

Reference and administration details

Charity name and registered charity number

Broadgrace | 1171839

The charity is also often referred to as Broadgrace Church.

Charity’s principal address and contact details

Broadgrace Church, The River Rooms, Church Street, Coltishall, Norwich, NR12 7BX.

01692 535593 | www.broadgrace.org.uk | enquiries@broadgrace.org.uk

Names of the trustees who manage the charity

Name Office Stephen Michael Chair of Trustees (and elder of the church) Daniel Ernst Trustee (and elder of the church) Matthew Hall Trustee (and elder of the church) John Hindley Trustee (and elder of the church) Timothy Chapman Trustee Fiona Foreman Trustee

Structure, governance and management

Broadgrace is constituted as a Charitable Incorporated Organisation (CIO). It is governed by a Constitution of a Charitable Incorporated Institution whose only voting members are its Charity Trustees (the ‘Constitution’), dated 21[st] February 2017.

Broadgrace CIO was created to replace an existing charity, Broad Grace Charitable Trust (registered Charity number 1136670). All assets and activities of Broadgrace Charitable Trust were transferred to the new CIO on 1[st] September 2017. Broad Grace Charitable Trust was then closed, and was removed from the Charity Commission register on 2[nd] October 2018.

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Appointment of trustees

Charity Trustees are appointed by a resolution passed at a meeting of the ‘Spiritual Leadership’ of the church. The Spiritual Leadership is made up of the elders of the church. All members of the Spiritual Leadership are currently also trustees. The trustees are in agreement, however, that it is also important to have ‘external’ trustees as members of the board. They bring a broader perspective and wisdom that is a valuable addition to that of the trustees who are more closely involved with the day-to-day work of the charity. They also contribute different experience of work and church life that is extremely valuable.

Governance and management of Broadgrace

The Constitution states that: ‘The spiritual government and leadership of the Church Fellowship for the purposes of which the CIO has been established shall remain with the Spiritual Leadership and to the extent to which the Charity Trustees are not synonymous with the Spiritual Leadership their powers shall be confined to the proper management and administration of the CIO in accordance with the provisions of this Constitution and in furtherance of the Objects and in so doing they shall have full and proper regard to the Spiritual Leadership provided always that they shall not act outside their powers as conferred by this Constitution and by general law.’

The Spiritual Leadership of the church is made up of four elders: Daniel Ernst, Matthew Hall, John Hindley and Stephen Michael. All four of these are also trustees of the charity. In addition, John Hindley is employed full-time to serve the church. Daniel Ernst was employed one day a week to serve the church until November 2020 at which time he resigned from this position; he continues as an elder and trustee of Broadgrace. Since the Trustees’ Meeting on 24[th] January 2020 all matters relating to employment, have been delegated to a formal Remuneration Committee made up of Matthew Hall (Chair), Timothy Chapman, Fiona Foreman and Stephen Michael. This committee undertakes all discussion of salary, terms and conditions and other matter relating to employment. Employed trustees will not become members of this Committee.

The elders of the church meet weekly for prayer and to discuss any urgent pastoral or other matters. They also meet monthly to discuss any business affecting the church and to spend longer considering the life of the church. Two or three time a year they have an ‘away-day’ together to allow for wider reflection. They also meet for an evening from time to time to discuss theological matter that have interested one of them. The trustees meet twice a year or more frequently if there is a need to do so.

The elders are accessible to all the members of the church and regard themselves as members together of a family and not above or superior to any other members. They strive to have a highly consultative decision making process, with church members having great involvement in and ownership of decisions. Many other members serve in various ways, and we are highly dependent on one another in all aspects of church life.

Professional advisors

Bankers

HSBC, 18 London Street, Norwich, Norfolk, NR2 1LG.

Independent examiner

Richard Williams, 9 Kingsway, New Malden, KT3 6JA

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Public benefit statement

The trustees are satisfied that the activities we undertake to meet our charitable objects are for the public benefit. All the various meetings, groups, courses and events are open to the public; events and activities are advertised as widely as possible and members are keen to share their faith and church life with the community.

Additionally, some of the meetings and events we run are specifically aimed at the general public. One example would be Tiddlers , our baby and toddler group which is widely regarded as a making a valuable contribution to village life. During the past year, this was held outside in our local park to ensure that the community could continue.

We similarly use our building, The River Rooms, to serve the local community. The facilities we provide there are available to everyone.

At each of their meetings, the trustees consider how the charity is benefitting the public in its activities and in the general ways that church life is conducted.

Activity of the charity in meetings its objectives

Objects

The Objects of the CIO are, for the public benefit, the advancement of the Christian faith, in accordance with the Statement of Faith, in such ways as the charity trustees may from time to time decide.

Activities of the charity

In common with all his churches, Jesus Christ lies at the heart of all we are and do as a charity. Our main activity is to live as a family who love, care for, support and disciple one another. We seek to be an open family, welcoming in all who want to join us in investigating faith in Christ or in following him. This means that our culture is of paramount importance. Love has to be real, which means we must make time to know each other and our Lord.

As a result of this we prioritise praying and reading the Bible together as the primary means of relating to God, and time together knowing and loving each other as the primary means of relating to one another. This culture is more important than the organised activity of the church. Most ministry is carried out as we share time, gifts and lives with one another and with our neighbours. The elders and members of the church focus much of our attention on cultivating such a culture of love and faith, with the organised activities of the church seen as supporting this ministry rather than being dominant.

This approach is both more freeing for church members, allowing all to serve one another rather than controlling what Christian service looks like, and also more effective. This is because we are free to respond to need as we see it, rather than having to go through structures or decision-making bodies. In a larger church these might be necessary. As a smaller church, though, we strive to only create structures and ministry programs that will support the family life of the church rather than institutionalise it.

Significant challenges in 2020-21

There have been two significant challenges over the year that have both caused suffering and problems for us as a church family and given opportunities for the Lord to show his love and kindness towards us. In

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facing both of these, we have also benefitted greatly from the family culture within the church that we have just described.

1. The coronavirus pandemic

In common with the rest of society, life has been hugely impacted by the coronavirus pandemic. We have been directly affected by this, with church members suffering from covid-19 and from long covid. We have also seen other suffering increased by the consequences of the lockdowns and other measures taken by the government to control the spread of the virus. These include hospital treatment for serious illness made more difficult and stressful; funeral arrangements for loved ones disrupted and an increase in the mental and emotional health challenges for members of the church. We have seen these factors, and more, also present in the lives of our friends, neighbours and communities.

2. Abuse in the wider church

There have been significant cases of sexual and spiritual abuse in the wider church that have come to light or to greater prominence over the last year. These have impacted a number of friends of members and elders of the church directly. They have also impacted a few members of the church directly. No allegations or accusations of abuse have been made about the leaders or members of our church, as far as we are aware, but they have caused us great sorrow as we see brothers and sisters we love deeply hurt by the sin of other Christians. We have also seen the confusion and pain that arises for all parties when an allegation is made and then investigated.

Significant growth through these challenges

We have been hit deeply by these challenges. They have caused us sorrow, and exhausted us. At the end of August 2021 we were in a situation where the elders were hard-pressed. One has had to stop his employed work for the church as a result of ill-health. Another is seeking to complete assessments for professional qualifications and establish a new business during these trying conditions; he is taking a sabbatical from duties to enable this. All four are tired and under significant stress due to the constantly changing risks and regulations surrounding the coronavirus. We are also deeply saddened by the abuse in the wider church and one of our elders is involved as a friend, external voice and spiritual counsellor in several of these situations, which takes a toll on him.

Church members have also been affected by these challenges, many greatly so. Yet, in this hard season, the Lord has proved himself once again to be a Rock and Comfort, an ever-present friend in time of trouble. We have seen this in spiritual growth and the strength he has given us together to stand firm in his grace. the love that members of the church have shown one another has been amazing and beautiful. As regulations changed, we saw many people working hard to keep in touch with phone calls, visits, gifts dropped off and cards posted. There has been a lot of prayer for each other and a commitment to one another. This is remarkable, and clearly the work of the Holy Spirit as our instincts in such suffering are generally to turn inward.

We have always sought to be a church directly led by Jesus and dependent on the work of the Holy Spirit among us. A key outworking of this is prayerful dependence of our heavenly Father. We have seen him answer our prayers consistently and kindly. This year has been one of spiritual growth for us as a church, and we pray that we may reap many benefits from this, even as we have already been blessed.

There are two specific outcomes of these challenges that are worth noting before we turn to review the ministries the church has engaged in over the last year.

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During the year we have engaged in the following ministries and areas of church activity:

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Financial Review

The charity raises money primarily through the giving from its members, gifts from supporters and through income from rental of the River Rooms.

The accounts are prepared under the Receipts and Payments method. During the financial period to 31 August 2019, £80,491 (2020: £67,797) was received in donations, with an additional £10,673 in gift-aid receipts. Within this, a donation of £17,000 was received with the donor specifying that it should be used to repay the remainder of the non-interest bearing loans held on the River Rooms.

Additionally, £24,986 (2020: £29,721) was received in rental income from the River Rooms, £788 (2020: £1,693) in other income including royalties from John Hindley’s publications and £228 (2020: £0) in interest income.

The value of direct charitable activities was £58,473 (2020: £58,664). Grants and donations paid out were £17,158 (2020: £3,510) which includes grants and fees for Emily Paterson to support her study of UNION as well as donations to a number of other local and national charitable organisations.

Loan repayments of £39,938 (2020: £29,939) were made against both interest-bearing and non-interest bearing loans.

Statement of the charity’s policy on reserves

The trustees have decided to maintain £25,000 in reserves. This figure was based on the following requirements:

The cash balance at 31 August 2021 was £55,520.

Details of any funds materially in deficit

There were no funds in deficit at 31 August 2021.

Risk statement

The charity is exposed to various risks - be they operational, financial or reputational. The trustees review the charity's activities regularly to identify significant risks and, where possible, they take appropriate measures to mitigate those risks.

Statement of trustees’ responsibilities

Charity law requires us as Trustees to prepare financial statements for each accounting year which record the receipts and payments of the charity for the year.

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We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable us to ensure that the financial statements comply with the Charities Act 2011.

We are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. We are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

Independent Examiner

Mr Richard Williams has been appointed as the charity’s independent examiner. His report can be seen on page 10.

Approval

This report was approved by the trustees and signed on their behalf by:

Stephen Michael Chair of Trustees

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Independent Examiners’s Report to the trustees of Broadgrace CIO

for the period 1[st] September 2020 – 31[st] August 2021

I report to the trustees on my examination of the accounts of Broadgrace CIO ('the charity') for the year ended 31 August 2021 on pages 11 to 1 8 .

Responsibilites and basis of report

As the trustees of the charity, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in accordance with section 130 of the 2011 Act; or

  2. the accounts do not accord with the accounting records.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Signed

Richard Williams

Address: 9 Kingsway New Malden KT3 6JA

Date: 23 June 2022

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Financial Statements for the year ended 31[st] August 2021

Receipts and Payments Accounts

Note
s
Income receipts
Donations, legacies and grants
Gift aid receipts
Income from charitable activities
Rental Income
Investment income
Capital and similar receipts
Total receipts		 General
Funds
£
51,728
10,673
788
24,986
228
88,403
-
88,403		 Restricted
Funds
£
28,763
-
-
-
28,763
-
28,763		 2021
£
80,491
10,673
788
24,986
228
117,166
-
117,166		 2020
£
67,797
9,062
1,693
29,721
-
108,273
-
108,273

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Payments
Payments in relation to charitable
activities undertaken directly
2
Grants paid in relation to charitable
activities undertaken by others
3
Purchase of fixed assets
Purchase of investments
Loans repaid
Total payments
Net of receipts / (payments) before
transfers
Transfers between funds
Net movement in funds
Cash funds as at last year end
Cash funds at this year end		 58,473
5,395
63,868
-
-
12,343
12,343
76,211
12,192
-5,595
6,597
49,151
55,748		 -
11,763
11,763
-
-
27,595
27,595
39,358
-10,595
5,595
5,000
5000
0		 58,473
17,158
75,631
-
-
39,938
39,938
115,569
1,597
-
1,597
54,151
£55,748		 58,664
3,510
62,714
-
-
29,939
29,939
92,113
16,160
-
16,160
54,151
37,991

The notes on pages 15 - 18 form part of these accounts.

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Statement of assets and liabilities

Notes
A
Cash funds
Cash at bank with immediate
access
Notice deposits
Petty cash
B
Other monetary assets
Gift aid due to charity
Other debtors
C
Liabilities
Interest Bearing Loans
Non-interest bearing Loans
Tenants Deposits
Taxes due
Grants payable
Accrued expenses		 General
funds
£
53,748
-
-
53,748
3,663
-
3,663
125,439
-
2,979
-
-
-
128,418		 Restricted
funds
£
2000
-
-
2000
-
-
-
-
-
-
2,000
-
2,000		 2021
£
55,748
-
-
55,748
3,663
-
3,663
125,439
-
2,979
-
2,000
-
130,418		 2020
£
54,151
-
-
54,151
2,556
1,950
4,506
137,782
27,000
3,574
-
5,000
727
174,083

£12,480 of the interest-bearing loan is due within the 2021/22 financial year. Interest-bearing loans are held with Rural Ministries and interest is paid at a rate of 1% above Bank of England base-rate.

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D Assets retained for charity's own use

Fund to which
asset belongs
Land and buildings (The River Rooms, Church Street, Coltishall)
Furniture and PA Equipment		 Current
value
£
447,530
25,189
472,719

The trustees have used insurance values as an approximation for current values.

E Investment assets

The charity does not have any investment assets.

F Guarantees and secured debts

The outstanding balance on the charity's loan with Rural Ministries is secured on the River Rooms. At 31 August 2021, the balance was £125,439. The loan is due to be fully repaid in March 2031.

The accounts were approved by the trustees and signed on their behalf

by date 28/6/22
-------------------------------------------- -------------

The notes on pages 15-18 form part of these accounts.

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Notes to the accounts

1 Accounting policies

The accounts have been prepared on a receipts and payments basis and comprise a statement that shows the charity's receipts and payments, a statement that summarises the charity's assets and liabilities and related notes. The accountancy profession has determined that only accounts prepared in accordance with applicable accounting standards present a 'true and fair' view and, as these receipts and payments accounts have not (and cannot) be prepared in accordance with accounting standards, these accounts do not present (and are not intended to present) a 'true and fair' view of the charity's financial activities and state of affairs.

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.

Payments in relation to charitable activities 2 undertaken directly

Notes
Employment costs (including Pension payments)
River Rooms Operating Costs
2(a)
Other operating costs
Interest Payments on loans		 General
funds
£
40,524
9,128
1,760
1,453
52,865		 Restricted
Funds
£
-
-
-
-
-		 Total
2021
£
40,524
9,128
1,760
1,453
52,865		 Total
2020
£
42,171
9,258
5,090
2,145
58,664

(a) Property costs comprise:

2

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Utilities
Repairs and Maintenance
Insurance
Notes
3 Grants paid in relation to charitable activities undertaken by others
Grants for:
Church Planting (UK and Europe)
Rural Ministries
Other donations (UK)		 6,852
1,872
404
9,128
General
funds
£
720
1,200
3,475
5,395		 -
-
-
-
Restricted
Funds
£
-
-
11,763
11,763		 6,852
1,872
404
9,128
Total
2021
£
720
1,200
15,238
17,158		 7,833
1,070
355
9,258
Total
2020
£
720
1,200
1,590
3,510

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4 Transactions with related parties

John Hindley (Full-time) and Daniel Ernst (Part-time) were employed as Pastors. Daniel Ernst ceased employment in December 2020 due to health reasons. They were paid £40,524 (including pension contributions) for serving in that capacity, not for serving as trustees; these payments are permitted by the charity's governing document.

Other expenses paid to trustees were reimbursements for items purchased in relation to ministry and travel expenses for the employed staff. All expenses payments were in line with Broadgrace financial policy and were approved by two signatories.

During the year, repayments totalling £17,000 were made on the non-interest bearing loans held with Stephen Michael (Trustee) and Ethco Limited (owned by Matthew Hall, Trustee). Each received £8,500 leaving an outstanding balance of £0.

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5 Movement of funds

General funds
General Reserves
General Church Activities
River Rooms (Rental reserve)
River Rooms (Repairs and Maintenance Fund)
Restricted funds
Funding for Emily Patterson
River rooms loan repayment fund
Total funds		 Balance
at
31.08.2020
£
19,151
-
5,000
10,000
15,000
49,151
5,000
5,000
54,151		 Receipts
£
86,403
-
-
-
-
86,175
13,763
17,000
30,763
117,166		 Payments
£
(81,806)
-
-
-
-
(81,806)
(16,763)
(17,000)
(33,763)
(115,569)		 Transfers
£
5,000
-
-
(5,000)
-
-
-
-
-		 Balance
at
31.08.21
£
28,748
-
5,000
10,000
10,000
53,520
2,000
-
2,000
55,748

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