## **GRACE CHURCH, WOLVERHAMPTON** **TRUSTEES ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST AUGUST 2021** Company Registration No. 10905279 (England and Wales) Charity Registration No. 1174223 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** ## **Contents** ||**Page**| |---|---| |Statutory Information|3| |Trustees Report|4| |Independent Examiners Report|8| |Statement of Financial Accounts|9| |Balance Sheet|9 - 10| |Notes to the financial statements|11 - 15| Grace Church Wolverhampton Page: 2 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** ## **Statutory Information** Grace Church Wolverhampton is a Charity registered with the Charity Commission of England and Wales and a Company limited by guarantee and registered at Companies House, England and Wales. ## **Registered Address** Unit 1, Shaw Park Business Village, Shaw Park Road, Wolverhampton, WV10 9LE ## **Responsible Persons** Mr. Anthony Henson Elder and Lead Pastor Mrs. Gillian Henson Pastoral Assistant **Trustees Appointed By:** Mr. Matthieu Lambert Chair Elders Mrs. Sally Lloyd Finance Elders Mr. John Gamble Elders ## **Independent Examiner** Mr. Mervyn Thomas ## **Bankers** CAF Bank, King’s Hill, Kent Grace Church Wolverhampton Page: 3 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** ## **Trustees Annual Report for 2020-21** The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2019. The trustees have adopted the provisions of 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). ## **Charitable Objects** The objects of the charity are - The advancement of the Christian faith - The relief of poverty hardship and/or distress ## **Organisational Structure and Decision-making processes** The charity is currently led by a lead Elder Anthony Henson who is the pastor of the church. He is supported by a team of trustees and a wider leadership team. Grace Church is also part of the Newfrontiers family of churches and benefits greatly from the support of those churches within this group through conferences that are organised by them and through the personal relationships between the church leaders. Grace Church is part of the Catalyst Network in Newfrontiers. The Catalyst Team is led by Simon Holley and encompasses a number of New Frontiers churches in the UK and across the world including many Russian speaking countries and the Middle East Whilst Grace Church continues to support Wolverhampton and Black Country churches and other networks, we have also continued to support the Catalyst/Newfrontiers group of churches that we were planted from. During this year Pastor Anthony Henson has again been supporting a number of new UK churches, donating freely his acquired experience. This also forms part of the giving attitude of the church. ## **Public Benefit Statement** The Church provides opportunities for Christian worship on a weekly basis - whether online or in person as permitted by the government restrictions - to which all members of the public are welcome. In addition, a number of activities for people of all ages are offered that are again open to the public and provide opportunities for the building of relationships and instruction in the essentials of the Christian faith. These include but are not limited to: - Sunday services of worship - online or in person when allowed - Midweek area groups in homes - subject to the level of restrictions at the time - Other occasional church-related activities such as prayer meetings, men’s and women’s breakfasts, the Alpha Course (again online or in person) The church has also been involved in supporting disadvantaged groups through partnership with a bi-monthly soup kitchen (when permitted) and other food provision in line with the restrictions and regulations of the current season. Grace Church Wolverhampton Page: 4 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** One impact of Covid that is increasingly being recognised throughout the world, is the impact on mental health. Through our church working in partnership with other organisations, assistance has been brought to schools, various contexts of social need and other groups. Our support of social action initiatives continues to grow well. Flourishing enterprises, some now having their own charitable status remind us as to why Grace Church was started and what we continue to exist for. These include supporting those transitioning through homelessness through the Enterprise Homes Group charity and the youth charity ‘Engage Trust.’ This period has again been a time of working closely with other Wolverhampton/Black Country churches, social action networks. Often this has included liaising with the local authority. The church has provided care and assistance to people going through various challenges of family life, including new special guardianship scenarios, as well as support to those facing the pain of loss and bereavement. We have made a number of donations during the year to assist the mission of this church and other churches via various ‘churches together’ groupings, as well as youth work, the poor and the elderly. The church has continued to practice the Christian faith by teaching the Bible and by assisting the enquirer. The Trustees have read the Charity Commission guidance on public benefit, and are satisfied that the activities outlined above clearly demonstrate that the charity is meeting its Purpose and is providing a benefit to the public. ## **Achievements in the year** The Covid-19 pandemic that has swept over the world has also impacted the church. We have faced restrictions yet within these restrictions found new ways to express the love of God from the church into the community of Wolverhampton and beyond. Not being able to meet in-person for most of the last year we have produced a good quality podcast for the church and wider community. Within the isolation of Covid this has been much appreciated. Our dedicated team have also produced DVDs for those without internet access. Our Sunday services are now being watched by more people than before, suggesting a widening community appeal. The Zoom facility has greatly helped us, whether for prayer, church socials, small support, or just opportunities to catch-up. In May 2021 we began to meet again in a new setting, still within the same location, hosting two small socially-distanced live Sunday services, one of which was live-streamed. With the lifting of restrictions we have been able to return to doing one joint Sunday morning service which is also live-streamed via YouTube. We plan on continuing our church ministry into what is one of the most deprived areas of Wolverhampton, as the opportunities present and the situation improves. Our outreach and community care, despite many restrictions, has found new ways of expression, including various prayer support networks. The church’s expression has found new ways through its members caring for neighbours, work-colleagues and those in need or isolated. Grace Church Wolverhampton Page: 5 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** We have a number of key-workers within Grace Church and we have sought to encourage and stand with each invaluable contributor. We have been particularly keen to assist the elderly and vulnerable during this time. Regular pastoral visits have continued in safe ways. The giving nature of the church has grown during this year of crisis and we note the exhaustive impact this has had on some of the key pastoral workers within the church. We linked up with Saltmine – a high quality theatrical group for a special Christmas online production which was enjoyed by many. Our Easter outreach included lots of giveaway packages which included easter eggs, a palm cross, a booklet about the Easter story, an Easter card and a link to our online Easter service. This year’s Easter service was the biggest and most responsive service we have ever held. There have many opportunities to help those isolating with shopping trips as well giving free food to the poor and needy. Grace Church is made up from all age groups, and from different ethnic and social backgrounds. The church reflects in many ways the rich diversity of life in Wolverhampton and the Black Country. Wolverhampton has many areas of need and deprivation, which is also somewhat reflected in the make-up of the church, which now also include the ramifications of lockdown. Like most churches, we are beginning to emerge again from the horrible impact of Covid. Like every community this church has witnessed the death of loved-ones and the uncertainty of a fearful world. The challenges we face as a church are exciting as well as very stretching and we look forward to another year of being a church with such a wide vision to impact the community of Wolverhampton, the Black Country and beyond. Although the pastor will reach pensionable age during this financial year, the church has indicated that it would like him to continue for as long as he feels confident and able to do so. ## **Volunteers** All of the above activities are largely led and staffed by volunteers, and the church would be unable to function without their commitment and often sacrificial giving of time. This is the case on Sunday mornings (both online and in person) which other than the teaching from the Pastor, are organised, led and run by volunteers from within the congregation. It is also the case in respect of the Soup Kitchen which is entirely run by volunteers and the partnership with Hope into Action to house refugees and asylum seekers. ## **Financial Review** During the 2018/19 financial year the Church received an income of £67,022 into its general fund, through voluntary tithes and donations of members of the congregation. Further limited fundraising was undertaken in support of the Soup Kitchen. The Church’s expenditure from the general fund came in at £59,405 leaving a surplus over the course of the year of £7,617. Expenditure in this year with the effect of the pandemic has been slightly less than had been anticipated generating a surplus which has been added to the existing reserves. Grace Church Wolverhampton Page: 6 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** The Church’s reserves policy is to hold roughly the equivalent of 3 months of charitable expenditure in reserve unless there are specific requirements for additional reserves, including the future development of the church’s activities. Grace Church continues to hold reserves to enable the purchase of its own property. The pandemic has very much highlighted the inherent difficulties in renting premises from another organisation such as a school, a hall or a community centre. The pandemic brought a set of restrictions with it. The lack of having our own premises added additional restrictions on top of those and prevented us from being able to meet and offer everything that we may have wished to even when the government restrictions would have allowed us to do so. In addition to this our own premises would enable us to offer much more than just a Sunday presence. Our desire is to support the Wolverhampton community in various ways and if we had the full-time use of a property central to a community, then that would make this goal more feasible and would open up additional possibilities in terms of community engagement. ## **Approved by the Trustees and signed on their behalf.** Matthieu Lambert 19th September 2021 Grace Church Wolverhampton Page: 7 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** ## **Independent Examiners Report to the trustees of Grace Church Wolverhampton** on the accounts for the year to **31[st] August 2021** as set out on pages 9 – 15 in this document ## **Respective responsibilities of trustees and examiner** The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed ## **Independent examiner's statement** It is my responsibility to: - examine the accounts under section 145 of the Charities Act, - to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and to state whether particular matters have come to my attention. My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently, no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below. In connection with my examination, no matter has come to my attention which gives me reasonable cause to believe that in, any material respect, the requirements: 1) to keep accounting records in accordance with section 130 of the Charities Act; and to prepare accounts that accord with the accounting records and comply with the accounting requirements of the Charities Act have not been met; or - 2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Signed: Mervyn Thomas 128 Putnoe Lane Bedford MK41 8LS Dated: 17/09/2020 Grace Church Wolverhampton Page: 8 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** ## **Statement of Financial Activity** |**Statement of Financial Activity**|||||| |---|---|---|---|---|---| ||||**Restricted**||| |||**Unrestricted**|**income**|**Total this**|**Total last**| ||**Notes**|**funds**|**funds**|**year**|**year**| |||**£**|**£**|**£**|**£**| |**Incoming resources**|3||||| |Incoming resources from generated funds||-|-|-|-| |Voluntary income||67,022|1,430|68,452|72,077| |**Total incoming resources**||**67,022**|**1,430**|**68,452**|**72,077**| |**Resources expended**|4||||| |Costs of Generating Funds||1,170|-|1,170|1,008| |Charitable activities||58,235|1,170|59,405|67,995| |**Total resources expended**||**59,405**|**1,170**|**60,575**|**69,003**| |Net incoming/(outgoing) resources before|||||| |transfers||7,617|260|7,877|3,074| |Gross transfers between funds|7|-|-|-|-| |Net movement in funds||7,617|260|7,877|3,074| |Total funds brought forward||98,054|870|98,924|95,850| |**Total funds carried forward**||**105,671**|**1,130**|106,801|**98,924**| |**Balance Sheet**|||||| |---|---|---|---|---|---| ||||**Restricted**||| |||**Unrestricted**|**income**|**Total this**|**Total last**| ||Note|**funds**|**funds**|**year**|**year**| |||£|£|£|£| |**Current assets**|||||| |Debtors|5|3,574|-|3,574|8,776| |Cash at bank and in hand||102,841|1,130|103,971|90,840| |**Total current assets**||**106,415**|**1,130**|**107,545**|**99,616**| |Creditors: amounts falling due within one|||||| |year|6|(744)|-|(744)|(692)| |**Net assets less liabilities**||**105,671**|**1,130**|**106,801**|**98,924**| |**Funds of the Charity**|||||| |Unrestricted funds||105,671|-|105,671|98,054| |Restricted income funds|7||1,130|1,130|870| |**Total funds**||**105,671**|**1,130**|**106,801**|**98,924**| Grace Church Wolverhampton Page: 9 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020. The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2021 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for - (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and - (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. Approved by the Trustees and signed on their behalf. Matthieu Lambert 19t� September 2021 Grace Church Wolverhampton Page: 10 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** ## **NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2021** ## **1 BASIS OF PREPARATION** ## **1.1 Basis of accounting** These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The accounts have been prepared in accordance with: - the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable - and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). - and with the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. ## **1.2 Going concern** The Charity is a going concern. Income generation through members’ donations is maintaining adequate reserves. ## **1.3 Change of accounting policy** - The accounts present a true and fair view and the accounting policies adopted are those outlined in note 2. ## **1.4 Changes to accounting estimates** No changes to accounting estimates have occurred in the reporting period (3.46 FRS 102 SORP). ## **2 ACCOUNTING POLICIES** ## **2.1 Income** ## **Recognition of income** These are included in the Statement of Financial Activities (SoFA) when: - the charity becomes entitled to the resources; - it is more likely than not that the Trustees will receive the resources; and - the monetary value can be measured with sufficient reliability. ## **Offsetting** There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102. ## **Grants and donations** Grants and donations are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 SORP). There are no performance-related grants. Grace Church Wolverhampton Page: 11 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** ## **Legacies** Legacies are included in the SoFA when receipt is probable, that is, when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met. ## **Government grants** The charity has not received any government grants in the reporting period. ## **Tax reclaims on donations and gifts** Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise. ## **Contractual income and performance-related grants** This is only included in the SoFA once the charity has provided the related goods or services or met the performance-related conditions. ## **Donated goods** The charity has not received any goods in the reporting period considered to be of material value. No donated goods have been monetised. ## **Donated services and facilities** Donated services and facilities are included in the SoFA when received at the value of the gift to the charity provided the value of the gift can be measured reliably. Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the SoFA. ## **Support costs** The charity has not incurred expenditure on support costs. ## **Volunteer help** The value of any voluntary help received is not included in the accounts but is described in the Trustees’ annual report. ## **Income from interest, royalties, and dividends** This is included in the accounts when receipt is probable and the amount receivable can be measured reliably. ## **Income from membership subscriptions** No membership subscriptions are charged. ## **Settlement of insurance claims** Insurance claims are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 SORP) and are included as an item of other income in the SoFA. ## **Investment gains and losses** Investment gains or losses in the year are recognized in the SoFA Grace Church Wolverhampton Page: 12 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** ## **2.2 Expenditure and liabilities** ## **Liability recognition** Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty. ## **Redundancy cost** The charity made no redundancy payments during the reporting period. ## **Deferred income** No material item of deferred income has been included in the accounts. ## **Creditors** The charity has creditors which are measured at settlement amounts less any trade discounts ## **Provisions for liabilities** A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date ## **Basic financial instruments** The charity accounts for basic financial instruments on initial recognition as per paragraph 10.7 FRS102 SORP. Subsequent measurement is as per paragraphs 11.17 to 11.19, FRS102 SORP. ## **2.3 ASSETS** ## **Tangible fixed assets for use by charity** These are capitalised if they can be used for more than one year, and cost at least £10,000 They are valued at cost except for land and buildings which are shown at the values at 31 December 2016. The depreciation rates and methods used are below: Furniture and fittings 10% straight line Computers and equipment 33% straight line Buildings 0% straight line ## **Intangible fixed assets** The charity does not have intangible fixed assets, that is, non-monetary assets that do not have physical substance but are identifiable and are controlled by the charity through custody or legal rights ## **Debtors** Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received. Grace Church Wolverhampton Page: 13 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** |||**Restricted**||| |---|---|---|---|---| ||**Unrestricted**|**income**|**Total funds**|**Total funds**| |**3 Analysis of income**|**funds**|**funds**|**2021**|**2020**| |**Donations and legacies:**|**£**|**£**|**£**|**£**| |Voluntary donations|55,476|1,430|56,906|58,959| |Gift Aid|11,546|-|11,546|13,118| |**Total Donations and legacies**|**67,022**|**1,430**|**68,452**|**72,077**| |||**Restricted**||| ||**Unrestricted**|**income**|**Total funds**|**Total funds**| |**4 Analysis of expenditure**|**funds**|**funds**|**2021**|**2020**| |**Expenditure on generating funds:**|**£**|**£**|**£**|**£**| |Webpage|250|-|250|193| |Publicity and printing|920|-|920|815| |**Total expenditure on generating funds**|**1,170**|**-**|**1,170**|**1,008**| |**Expenditure on charitable activities**||||| |Salaries and wages|38,030|-|38,030|37,817| |Pensions|-|-|-|6,350| |Travel, conferences|3,926|-|3,926|4,451| |Office Expenses|5,717|-|5,717|4,341| |property costs (rents)|2,355|-|2,355|3,501| |Resources, Catering and cost of meetings|845|1,170|2,015|2,652| |Pastoral and care for the needy|2,108|-|2,108|2,193| |Ministry and Newday|4,704|-|4,704|775| |Children|430|-|430|760| |Bank Charges|-|-|-|60| |Charitable Direct Costs|-|-|-|464| |Grants and Donations|-|-||4,511| |Governance (Independent Examiner)|120|-|120|120| |**Total expenditure on charitable activities**|**58,235**|**1,170**|**59,405**|**67,995**| |**TOTAL EXPENDITURE**|**59,405**|**1,170**|**60,575**|**69,003**| Grace Church Wolverhampton Page: 14 **Grace Church, Wolverhampton Trustees Report and Financial Statements Year ended August 31st. 2021** **Charity: 1174223 Company: 10905279** ## **5 Debtors and prepayments** |**Analysis of debtors**|**Amounts falling**|**due within one year**| |---|---|---| ||**2021**|**2020**| ||**£**|**£**| |HMRC Gift Aid|3,574|8,776| |**Total**|**3,574**|**8,776**| ## **6 Creditors and accruals** |Analysis of creditors|**Amounts falling**|**due within one year**| |---|---|---| ||**2021**|**2020**| ||**£**|**£**| |Accruals|0|692| |Creditors|744|-| |**Total**|**744**|**692**| ## **7 FUNDS ANALYSIS** Movements of all funds summarised in the Statement of Financial Activities. ||**Fund**||||**Fund**| |---|---|---|---|---|---| ||**balances**||||**balances**| ||**brought**|**Incoming**|**Outgoing**||**carried**| |**Fund Name**|**forward**|**resources**|**resources**|**Transfers**|**forward**| ||**£**|**£**|**£**|**£**|**£**| |**Church Unrestricted**|98,054|67,022|(59,405)|-|105,671| |Soup Kitchen Restricted|870|1,430|(1,170)|-|1,130| |**Total Funds**|**98,925**|**68,452**|**(60,575)**|**-**|**106,801**| ## **8 Trustees Disclosures** In respect of expenses, Trustees have not received any expenses for their duties as trustees. There have been a number of reimbursements over the course of the financial year to all three trustees for direct expenditures on behalf of the charity in circumstances where it was simpler for the trustee to incur the expense and request reimbursement than arrange for the charity to make the initial payment. Grace Church Wolverhampton Page: 15