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2021-03-31-accounts

HOPE CHURCH MERTHYR CIO

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Charity Number 1184061 Hope Chapel, High Street, Merthyr Tydfil, CF47 8UG

HOPE CHURCH MERTHYR CIO

REFERENCE & ADMINISTRATIVE INFORMATION

Registered Charity Number 1184061
Principal Address Hope Chapel
High Street
Merthyr Tydfil
CF47 8UG
Trustees Paul Gaskin (Chair)
Neil Rees
Pat Woodman
Clive Williams
Heidi Jacobsen
Bookkeepers Your Business Hub Services Ltd
Ty Menter
Navigation Park
Abercynon
CF45 4SN
Bankers Barclays Bank PLC
47 High Street
Merthyr Tydfil
CF47 8DL

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HOPE CHURCH MERTHYR CIO

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report and the financial statements of the charity for the year ended 31 March 2021

CONSTITUTION & LEGAL STATUS

Hope Church Merthyr is a Charitable Incorporated Organisation

The first meeting of the Trustees of the CIO was held on 21 February 2019. The CIO is governed by a constitution that was drawn up on 21 February 2019. The CIO was registered with the Charity Commission on 26 June 2019 and the Charity Registration Number is 1184061.

OBJECTS OF THE CHARITY

The Objects of the CIO is/are:

Advancement of Religion

  1. The advancement of the Christian Faith in such parts of the United Kingdom or the world as the trustees may from time to time think fit including through providing services for prayer and worship and pastoral care and outreach into the community.

Relief of Poverty and Financial Hardship

  1. The prevention or relief of poverty or financial hardship in Merthyr Tydfil by providing: grants, items and services to individuals in need and/or charities, or other organisations working to prevent or relieve poverty.

  2. The prevention or relief of poverty or financial hardship anywhere in the world by providing or assisting in the provision of education, training, healthcare projects and all the necessary support designed to enable individuals to generate a sustainable income and be self-sufficient.

TRUSTEES

The method of appointment of trustees is set out in the CIO Constitution.

There is one Elder who is also a member of the Trustee team; Paul Gaskin, who is not remunerated. In addition we have four trustees who are not part of the Eldership team and not remunerated; Neil Rees, Pat Woodman and Clive Williams and Heidi Jacobsen.

During the year ended 31 March 2021 the following people acted as trustees:

Dr Paul Gaskin Mr Neil Rees Mrs Pat Woodman Mr Clive Williams Miss Heidi Jacobsen

The need for new trustees is reviewed regularly and when appropriate possible names are presented at a trustee meeting for consideration. The existing trustees make any new appointments. The charity trustees will make available to each new charity trustee, on or before his or her first appointment:

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HOPE CHURCH MERTHYR CIO

RISK REVIEW

The management committee regularly reviews the major risks to which the charity is exposed and systems are established to mitigate these risks. These procedures are periodically reviewed to ensure that they still meet the needs of the charity.

RESERVES POLICY

The trustees decided to maintain a small financial reserve, approximately equivalent to the normal, predictable outgoings in one month. However, this was decided with a caveat that if a pressing financial need arises within the church family, and the CIO has the ability to meet this out of the reserve, then this should be done, in accordance with the aims and objectives of the CIO.

REVIEW OF THE YEAR

In Luke 4 Jesus quotes Isaiah 61 stating that this is the mission to which He has been sent:

“The Spirit of the Lord is upon me, because he has anointed me to proclaim good news to the poor. He has sent me to proclaim liberty to the captives and recovering of sight to the blind, to set to liberty those who ore oppressed, to proclaim the year of the Lord's favour.”

As the church is charged with extending and continuing Jesus' kingdom the achievements and performance of the trust and in essence the church family can be weighed against the above scripture. As a trust and as a church family we acknowledge that everything we have achieved is down to the enabling power of the Holy Spirit.

Weekly Meeting

Unfortunately Covid 19 restrictions meant that that the building was closed to regular meetings and we were unable to physically. All our activities were moved on-line via Zoom and Facebook. We continued to meet on a weekly basis but through this new medium, which was a challenge to a lot of our attendees.

Community Care Groups

During the week there are opportunities for people to meet in smaller community groups, where people can care for one another, encourage one another and grow in their faith. The community groups also look for opportunities to meet the needs of the wider community both spiritually and practically. We continued to meet through the medium of Zoom.

H4K

Hope for Kids provides infant and Junior School aged children with a forum to learn more about Jesus and his gospel in a fun environment. Primarily this ministry has involved children from families within the church, but is also open to children from the wider community of Merthyr Tydfil. However, like all our services, we continued on-line.

Challenge Valleys

Working with other churches, this service left the control of Hope church and has become a separate organisation, although we do still contribute financially and our building is still used for contact.

ALPHA

We have continued to run Alpha courses on–line this year and have run successfully. Led by Stephanie Leech who took over the leadership. Stephanie is assisted by a number of volunteers from within the church. An international course, Alpha is an introduction to the gospel for non-believers, seekers and for those who are new to faith. Each session is a non-formal opportunity to share the gospel. As a result, several people have made commitments to the Lord and although we have been unable to hold baptism sessions by water,

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HOPE CHURCH MERTHYR CIO

baptism in the Holy Spirit has been evident. The course was promoted in the community and in the church and its groups and has been attended by people who have had no previous contact with the church.

Teens

Like the rest of our meetings, this group has continued via Zoom. Meeting on Friday nights we run a teens meeting where 11 to 18 year olds can come and learn about Jesus and are taught life skills. This group is led by a team of people who have been part of this group and have been trained as future leaders.

16 -20 Group

This was a victim of Covid with teenagers being unable to attend. Many of them have since left the area to go to university and are active members of Student Unions.

Hope 4 Tots

We run a parent and toddler group at the church building on Friday morning (Hope4tots). The aim of this group is to serve parents of young children within the area, offering them a place to go and find friendship. Altough this group was unable to meet because of restrictions placed on us by Covid.

Help @ Hope

Help@hope was born out of the pandemic because of our desire as a church to serve the community during lockdown. It is coordinated by Heidi Jacobsen with a team of up to 40 volunteers to support members of the local community in Merthyr Tydfil as a result of the covid 19 pandemic.

We have supported approx. 161 people/families in the following ways:

Supporting with food shopping for those unable to go out of their home due to being either clinically vulnerable or isolating due to COVID

The collection of prescriptions continued.

Telephone befriending continues to take place, approx. 8 people are contacted weekly by volunteers, to ease loneliness and isolation.

Dog walking and praying for people when requested has also continued.

We have continued to provide free food parcels to those in financial hardship, and have also provided finances for gas and electric top up to those in extreme financial difficulty. These aspects are in conjunction with trusted third sector partners to ensure the most in need receive.

Hope Pantry

As a development from help@hope consideration is being given to setting up a food pantry, which would offer choice and dignity to people in Merthyr experiencing food poverty and food insecurity. This is in the planning stages at present, we have approached Your Local Pantry (YLP) and a funding application has been submitted with the aim of paying for the set up costs for the YLP franchise and is hoped that it will launch in May 2021.

The church has committed finances to all the projects mentioned above.

Because of Covid restrictions, we have not been able to welcome the groups that have used our premises each week.

The trustees wish to place on record their grateful thanks to all volunteers who work so hard to make our church the active and vibrant community that it is.

In conclusion, the good news of the gospel is being proclaimed, the poor and disadvantaged in our community are being helped and the building has been altered to better serve the community.

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HOPE CHURCH MERTHYR CIO

RESPONSIBILITIES OF THE TRUSTEES

Charity law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure for the financial year.

In preparing those financial statements the trustees should follow best practice and

The trustees are responsible for maintaining proper accounting records which disclose at any time the financial position of the charity and to enable them to ensure that the financial statements comply with charity legislation. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees on 22 January 2022 and signed on their behalf

……………………………………………………………….

Dr Paul Gaskin (Chair) Trustee

………………………………………………………………. Mr Neil Rees Trustee

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HOPE CHURCH MERTHYR CIO

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES ON THE UNAUDITED FINANCIAL STATEMENTS OF HOPE CHURCH MERTHYR FOR THE YEAR ENDED 31 MARCH 2021

I report on the accounts of Hope Church for the year ended 31 March 2021 set out on pages 3 to 13.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND INDEPENDENT EXAMINER

As the charity's trustees you are responsible for the preparation of the accounts, you consider that the audit requirement of section 144(2) of the Charities Act 2011 (the Act) does not apply and that an independent examination is needed. It is my responsibility to examine the accounts under section 145 of the Act, to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the Act, and to state whether particular matters have come to my attention.

BASIS OF INDEPENDENT EXAMINER'S STATEMENT

My examination was carried out in accordance with the 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 you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

In connection with my examination, no matter has come to my attention:

……………………………………………………………….

Mr Paul Burnell C Management Services Ltd Independent Examiner 69 Velindre Road Cardiff CF14 2TF

Date: 21 January 2022

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HOPE CHURCH MERTHYR CIO

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Notes
Incoming resources
Voluntary Income
2
Activities for Generating Fund
3
Grants
4
Total incoming resources
Resources expended
Charitable Activities
5
Support of Missionaries &
Organisations
Church Ministries
Operating & Administration
Premises & Maintenance
Challenge Valleys
Employment Costs
6
Total resources expended
Net incoming/(outgoing)
resources before transfers
Transfer between funds
Net incoming/(outgoing)
resources for the year
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
2020-21
Total
£
£
£
£
110,426
18,225
3,225
131,876
1,866
0
0
1,866
700
0
17,148
17,848
112,991
18,225
20,373
151,590
23,122
0
0
23,122
0
0
14,201
14,201
12,192
0
0
12,192
11,368
0
0
11,368
0
0
3,667
3,667
38,889
0
0
38,889
85,572
0
17,868
103,440
27,420
18,225
2,505
48,150
0
0
0
0
27,420
18,225
2,505
48,150
5,832
0
441
6,273
33,252
18,225
2,947
54,423		 2019-20
Total
£
7,660
0
0
7,660
1,386
0
0
0
0
0
1,386
6,274
0
6,274
0
6,274

The statement of financial activities includes all gains and losses in the year and therefore a separate statement of total recognised gains and losses has not been prepared.

All the above amounts relate to continuing services

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HOPE CHURCH MERTHYR CIO

BALANCE SHEET AS AT 31 MARCH 2021

Notes
Current Assets
Cash at bank and in hand
Debtors
Total Current Assets
Current Liabilities
Creditor amounts falling due within
one year
8
Net Current Assets
Fixed Assets
Tangible Assets
Total Assets less Current Liabilities
Non-Current Liabilities
Creditor amounts falling due after
more than one year
Net assets
Funds
Restricted Funds
9
Designated Funds
10
Unrestricted Funds
11
Total funds		 2020-21
£
45,846
8,981
54,828
403
54,424
0
54,424
0
54,424
2,947
18,225
33,252
54,423		 2019-20
£
6,786
1,161
7,947
1,673
6,274
0
6,274
0
6,274
441
0
5,832
6,273

Notes in pages 10 to 13 form part of these accounts

Approved by the Trustees on 22 January 2022 and signed on their behalf

……………………………………………………………….

Dr Paul Gaskin (Chair) Trustee

………………………………………………………………. Mr Neil Rees Trustee

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HOPE CHURCH MERTHYR CIO

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting Policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the year preceding.

1.1. Basis of Preparation

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102); and the Charities Act 2011.

The accounts have been prepared on an accrual’s basis.

1.2. Cashflow

The charity has taken advantage of the exemption in FRS1 from the requirement to produce a cashflow statement because it is a small charity.

1.3. Fund Accounting

Funds held by the charity are either:

  1. Unrestricted Funds - these are funds which can be used in accordance with the charity's objectives, at the discretion of the trustees.

  2. Designated Funds - these are funds set aside by the trustees out of unrestricted general funds for a specific future purpose or projects

  3. Restricted Funds - these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

1.4. Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific polices are applied to particular categories of income:

  1. Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable.

  2. Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

  3. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant. Other grants, including grants for the purchase of fixed assets, are recognised in full in the statement of financial activities in the year in which they are receivable.

  4. Legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified

1.5. Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

Costs of generating funds comprise the costs associated with attracting voluntary income.

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HOPE CHURCH MERTHYR CIO

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of as indirect nature necessary to support them.

Governance costs include those associated with meeting the constitutional and statutory requirements of the charity and include accountancy fees, costs relating to the strategic development of the charity, management of assets and organisational administration.

1.6. Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Computer Equipment -

25% straight line

2. Voluntary Income

.
Voluntary Income
General Donations & Offerings
Challenge Valleys
Total		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
2020-21
Total
£
£
£
110,416
18,225
0
128,641
0
0
3,225
3,225
110,416
18,225
3,225
131,866		 2019-20
Total
£
7,219
441
7,660

3. Activities for Generating Income

Rental Income
Total		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
2020-21
Total
£
£
£
£
1,866
0
0
1,866
1,866
0
0
1,866		 2019-20
Total
£
0
0

4. Grants

Comic Relief
Merthyr Valleys homes
Voluntary Action Merthyr Tydfil
VSEF
Welsh Water
Total		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
2020-21
Total
£
£
£
£
0
0
2,550
2,550
0
0
4,220
4,220
0
0
10,378
10,378
500
0
0
500
200
0
0
200
700
0
17,148
17,848		 2019-20
Total
£
0
0
0
0
0
0

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HOPE CHURCH MERTHYR CIO

5. Costs of Charitable Activities

Support of Missionaries &
Organisations
Church Ministries
Operating & Administration
Premises & Maintenance
Challenge Valleys
Total		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
2020-21
Total
£
£
£
23,122
0
0
23,122
0
0
14,201
14,201
12,192
0
0
12,192
11,368
0
0
11,368
0
0
3,667
3,667
46,682
0
17,868
64,550		 2019-20
Total
£
(695)
0
189
1,892
0
1,386

6. Employment Costs

Wages, Pension & NI
Leadership Development &
Expenses
Total		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
2020-21
Total
£
£
£
38,889
0
0
38,889
0
0
0
0
38,889
0
0
38,889		 2019-20
Total
£
0
0
0

No employee received emoluments of more than £60,000 (2019: none)

7. Transactions with Trustees

There were no transactions with the Trustees during the year

8. Creditors: amounts falling due within one year

Other Creditors
Bank Loan		 Unrestricted
Funds
Designated
Funds
Restricted
Funds
2020-21
Total
£
£
£
403
0
0
403
0
0
0
0
403
0
0
403		 2019-20
Total
£
1,673
0
1,673

9. Restricted Funds

Challenge Valleys
Comic Relief
Merthyr Valleys homes
Voluntary Action Merthyr
Tydfil
Total		 At 1st
April
2020
Incoming
resources
Outgoing
resources
Transfers
£
£
£
£
441
3225
(3,667)
0
0
2,550
(2,550)
0
0
4,220
(2,000)
0
0
10,378
(9,651)
0
441
20,373
(17,868)
0		 At 31st
March
2021
£
0
0
2,220
727
2,947

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HOPE CHURCH MERTHYR CIO

10. Designated Funds

10.
Designated Funds
Building Fund
Total
11.
Unrestricted Funds
Unrestricted Funds
Total		 At 1st
April
2020
Incoming
resources
Outgoing
resources
Transfers
£
£
£
£
0
18,225
0
0
0
18,225
0
0
At 1st
April
2020
Incoming
resources
Outgoing
resources
Transfers
£
£
£
£
5,832
112,991
(85,572)
0
5,832
112,991
(85,572)
0		 At 31st
March
2021
£
18,225
18,225
At 31st
March
2021
£
33,252
33,252

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