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← Broadgrace

2023-08-31-accounts

Broadgrace Charitable Incorporated Organisation Trustees’ annual report and financial statements

1[st] September 2022 – 31[st] August 2023

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Contents

Trustees’ annual report page 1
Financial review page 7
Independent examiner’s report page 9
Financial statements and notes page 10

Trustees’ annual report

For the period 1[st] September 2022 – 31[st] August 2023

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 brought by the trustees who are more closely involved with the day-to-day work of the charity. They also contribute different and valuable experience of work and church life.

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 currently 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. All matters relating to employment are 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 matters 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. Once or twice a year they have an ‘away-day’ together to allow for wider reflection. They also meet for an evening from time to time either socially or to discuss theological matters 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 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 6AJ.

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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 our various meetings, groups, courses and events are open to the public; events and activities are advertised as widely as possible and church 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 weekly baby and toddler group which is widely regarded as a making a valuable contribution to village life.

We continue to use our building, The River Rooms, to serve the local community. The facilities we provide there are available to everyone. We have a good relationship with our long-term tenants, A Piece of Cake tea room, as well as with the tenants in our offices.

At each of their meetings, the trustees consider how the charity is benefitting the public, both 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 follow him in living as a church 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 Christ. 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, shaped by Christ’s gospel, 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.

There are two major activities that are worth particularly noting before we move on to review the wide range of church activity that is more constant from year to year.

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1. Employing Emily

Emily Paterson begun work for Broadgrace Church in September 2022. She is employed two days a week, Thursdays and Fridays, for the church. We had been able to fund Emily for two years of part-time theological study prior to her employment commencing and had hoped that we might be able to employ her once that study ended. During the year, John has acted as Emily’s manager, speaking to her on the phone weekly and meeting up monthly to discuss her ministry.

Emily has undertaken a range of ministry during the year, including one-to-one discipleship, meeting leading, teaching during our ‘Wednesdays Together’ in January and organising and leading our Big Day Out. She has also shared in the schools’ ministry with John, especially in taking on leading assemblies at Worstead School (more on this below). In addition, she completed the Sunday review project (see the next item).

It has been a great blessing to the church to have Emily able to give more time serving Christ among us. We see this as a long-term position and expect that Emily will continue serve faithfully in this position.

2. Reviewing our Sunday meetings

Having weathered the covid pandemic and also seen some numerical growth over the last few years, we decided that we should review our main Sunday church meetings. We asked Emily to conduct this comprehensive review, which she did with great skill and diligence, meeting with most members of the church family to draw out what is working well and helping people and what is not working so well. The review was conducted during the Autumn and Winter, with Emily presenting the results to the elders in March. We then spent time as elders and trustees working out the best way to make changes in the light of what we had learned. The most significant of these have been:

  1. We are in the process of refining the style and content of the meetings to better serve both the church family and guests who join us and might well have little or no experience of church. We want all who come to e able to encounter the Lord as he meets with us.

  2. We are also in the process of forming a number of teams (catering; meeting leaders and preachers; musicians; etc.) to give greater responsibility and authority to those gifted in these areas to serve without having to check everything with the elders. The teams can recruit and train new members, decide together the best ways to serve in their area and buy equipment and training they need to carry out their part in the meeting.

  3. We are communicating the changes that are being made through the team meetings and community groups as well as to the church more generally on Sundays.

We are still in the process of implementing these changes and hope to have done so by Christmas 2023.

Other activities during 2022-23

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

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family very much and consider that our ministry as a church is in Norfolk and also Central Asia where they serve.

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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 2023, £51,556 (2022: £61,017) was received in donations, with an additional £13,343 in gift-aid receipts.

Additionally, £36,591(2022: £26,630) was received in rental income from the River Rooms and £2,850 (2022: £3,244) in other income including royalties from John Hindley’s publications.

The value of direct charitable activities was £83,505 (2022: £67,219). Grants and donations paid out were £5,510(2022: £15,594) which includes grants and contribution to fees for Matt Timmins to support his study at Crosslands as well as donations to a number of other local and national charitable organisations.

Loan repayments of £10,438 (2022: £12,147) were made against the interest-bearing loan held with Rural Ministries. There is to be an extraordinary repayment of £35,000 of the capital of this loan in September 2023.

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 2023 was £65,964.

Details of any funds materially in deficit

There were no funds in deficit at 31 August 2023.

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 pages 9.

Approval

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

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Stephen Michael Chair of Trustees

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Independent Examiner’s Report to the trustees of Broadgrace CIO

for the period 1[st] September 2022 – 31[st] August 2023

I report to the trustees on my examination of the accounts of Broadgrace CIO ('the charity') for the year ended 31 August 2023 on pages 11 to 14, and notes pages 1-3.

Responsibilities 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

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Richard Williams

Address: 9 Kingsway, New Malden, KT3 6JA

Date: 20 May 2024

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Financial Statements for the year ended 31[st] August 2023

Receipts and Payments Accounts

Notes
Income receipts
Donations, legacies and grants
Gift aid receipts
Income from charitable activities
Rental Income
Investment Income
Total
Capital and similar receipts
Total receipts		 General
Funds
£
51,556
13,343
2,850
36,591
134
104,474
-
104,474		 Restricted
Funds
£
-
-
-
-
-
-
-
-		 2023
£
51,556
13,343
2,850
36,591
134
104,474
-
104,474		 2022
£
61,017
9,594
3,244
26,630
67
100,552
-
100,552

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Payments
Notes
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		 General
Funds
£
83,505
5,510
89,015
-
-
10,438
10,438
99,454
5,020
-
5,020
71,161
76,181		 Restricted
Funds
£
-
395
395
-
-
-
395
-395
-
-395
-9,822
-10,217		 2023
£
83,505
5,905
89,410
-
-
10,438
10,438
99,849
4,625
-
4,625
61,339
65,964		 2022
£
67,219
15,594
82,814
-
-
12,147
12,147
94,961
5,591
-
5,591
55,748
61,339

The notes on pages 15-17 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
Grants payable
Accrued expenses		 General
funds
£
65,964
-
-
65,964
2,365
-
2,365
102,178
-
3,654
-
-
105,832		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-		 2023
£
65,964
65,964
2,365
2,365
102,178
3,654
-
-
105,832		 2022
£
61,339
-
-
61,339
5,029
-
5,029
113,192
-
3,079
-
-
116,270

£7,385 of the interest-bearing loan is due within the 2023/24 financial year. In addition, £35,000 extraordinary loan repayment was made in September 2023.

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D Assets retained for charity's own use

Fund to which
asset belongs
Land and buildings (The River Rooms, Coltishall)
Furniture and PA Equipment

The trustees have used insurance values as an
approximation for current values.		 Current
value
£
563,187
33,699
596,886

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. Total loan repayments including interest due for 2023/24 are £11,547 although this may increase if interest rates rise. Interest rate is set at 1% above base rate.

In addition, an extraordinary loan repayment of £35,000 was made in September 2023.

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

by date 20/5/2024
-------------------------------------------- -------------

The notes on pages 15-17 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 have 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

Notes
Employment costs (including Pension payments)
River Rooms Operating Costs
2(a)
Other operating costs
Interest Payments on loans		 General
funds
£
54,499
17,688
6,376
4,942
83,505		 Restricted
Funds
£
-
-
-
-
-		 Total
2023
£
54,499
17,688
6,376
4,942
83,505		 Total
2022
£
40,878
15,838
8,683
1,821
67,219

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2
(a)
Property costs comprise:
Utilities
Repairs and Maintenance
Cleaning
Insurance		 General
funds
£
12,764
3,852
610
463
17,688		 Restricted
Funds
£
-
-
-
-
-		 Total
2023
£
12,764
3,852
610
463
17,688		 Total
2022
£
11,271
4,144
424
15,838
Grants for:
Church Planting (UK and Europe)
Rural Ministries
Other donations (UK)
Other donations (Overseas partners)		 General
funds
£
720
1,200
2,870
720
5,510		 Restricted
Funds
£
-
-
-
395
395		 Total
2023
£
720
1,200
2,870
1115
5,905		 Total
2022
£
720
1,200
15,238
-
17,158

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4 Transactions with related parties

John Hindley (Full-time) was employed as Pastor. Total remuneration package was £42,655 (including pension contributions of £7,109) for serving in that capacity, not for serving as trustees; these payments are permitted by the charity's governing document.

The only 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.

5 Movement of funds

General funds
General Reserves
General Church Activities
River Rooms (Rental reserve)
River Rooms (Repairs and Maintenance Fund)
Restricted funds
Ukrainian donations
Total funds		 Balance
at
31.08.2022
£
35,944
5,000
10,000
10,000
60,944
395
395
61,339		 Receipts
£
104,474
-
-
-
104,474
-
-
104,474		 Payments
£
99,454
-
-
-
99,454
395
395
99,869		 Transfers
£
-
-
-
-
-
-
-		 Balance
at
31.08.23
£
40,964
5,000
10,000
10,000
65,964
-
-
65,964

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