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2022-03-31-accounts

Charity Registration No. 1185718

GRACECHURCH BROMSGROVE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

GRACECHURCH BROMSGROVE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr B Bevins Dr J Coleman Mr R Hopkins Mrs R Dixon Mr T Pritchard Mr I Dixon (Appointed 4 April 2022) Miss S Coppack Charity number 1185718 Principal address 3 Guild Road Bromsgrove Worcestershire B60 2BY Independent examiner Colm McGrory The Oakley Kidderminster Road Droitwich Worcestershire WR9 9AY

GRACECHURCH BROMSGROVE

CONTENTS

Page
Trustees' report 1 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 15

GRACECHURCH BROMSGROVE

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The trustees present their report and financial statements for the year ended 31 March 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's CIO constitution, the Charities Act 2011 and "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)".

Objectives and activities

The charitable objectives are as follows:

i) The advancement of the Christian religion in the United Kingdom and overseas.

ii) The relief of those in need by reason of ill-health, disability, financial hardship, unemployment and/or poor eductional or skills attainment.

When planning our activities for the year, the trustees have complied with their duties under section 17(5) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission's on public benefit and in particular the specific guidance on charities for the advancement of religion. This is achieved through social support to the elderly and poor, educational courses and regular Sunday meetings.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Significant activities

Particular ways in which the objectives have been fulfilled include:

The Charity relies on donations from members of the charity. This income was in line with expectation. There were no additional fundraising activities.

Grantmaking

When the budget is set, after discussions with the elders and the trustees, amounts to be gifted as donations to third parties are agreed and budgeted for.

GRACECHURCH BROMSGROVE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Financial review

The net result for the year was a deficit of £-12,498 (2021 surplus: £143,115). The charity received donations and legacies, and investment income amounting to £37,551 (2021: £187,742) of which £50,049 (2021: £44,627) was spent in pursuit of the charity's objects. At 31 March 2022, £24,205 (2021: £19,327) was held as restricted funds and £106,412 (2021: £123,788) was held as unrestricted funds.

Of the unrestricted funds, a significant sum has been allocated to the development of drug and alcohol support services in Bromsgrove. In 2020 we employed a Recovery Community Development Worker for one day a week to build on, and develop, new and existing structures within the community to support those with drug and alcohol addiction. We continue to do this. It has been successful in forming links with established substance misuse organisations, receiving referrals from County service. Group meetings continue to be much needed and and appreciated, particularly over the last few years with reduced social contact.

Alongside this we are looking at working with others in the setting up of a residential drug and alcohol ‘recovery’ house in, or around, Bromsgrove. We envisage that the need for such support will grow exponentially as local government support continues to be reduced in light of difficult decisions on spending in the wake of the pandemic

Reserves policy

The charity aims to have reserves equivalent to three months of average expenses, currently around £15,000. This is reviewed annually. This level of reserve would enable Gracechurch to fulfil its ongoing commitments to its staff and agreements to lease and hire facilities and continue its normal operating activities should a shortfall in income or unexpected costs arise from time to time.

In determining the level of reserves, the Trustees took into account the currently low levels of fixed expenditure and risk incurred by the Trust. The charity has no investments other than the bank accounts which are used to perform the day to day activities.

Risk management

The trustees identify the major risks to which the charity is exposed each financial year when preparing and updating a strategic plan, in particular those relating to the operations and finances of the charity. The trustees then review major risks which have been identified, and establish systems to mitigate those risks. The charity is satisfied that systems are in place to mitigate their exposure to the major risks which have been so identified and reviewed.

The charity is open to the usual financial risks of any organisation, and the charity has introduced controls to minimise these risks, including procedures to prevent fraud. In addition, the accounts are regularly explained to members of the charity and are open for members inspection at any time. The charity carries a comprehensive insurance policy.

Work with children and vulnerable adults is open to risk. The policy is that any visits and counselling is done in pairs, as is children's work and the transport of these individuals. We have a safeguarding policy. Both Elders of the Church and some of the Trustees have enhanced Safeguarding training (level 2&3). We use the independent training and support organisation Thirtyone:eight (www.thirtyoneeight.org) for training and advice when needed.

All workers are required to be cleared by the DBS.

GRACECHURCH BROMSGROVE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management

The charity is a Charitable Incorporated Organisation and is constituted under a Trust Deed dated 19th September 2019 and is registered with the Charity Commission with number 1185718.

The trustees who served during the year and up to the date of signature of the financial statements were: Mr B Bevins

Dr J Coleman Mr R Hopkins Mrs R Dixon Mr T Pritchard Mr I Dixon (Appointed 4 April 2022) Miss S Coppack

The trustees are appointed on discussion between the elders and serving trustees. They are signed in as trustees at the first meeting they attend.

The elders are Ben Bevins (on sabbatical from October 2021), Steve Vincent and Jonathan Coleman who provide spiritual and strategic direction to the Church.

Following the financial year 2021/2022, one new trustee was appointed (Ian Dixon) as listed above.

The trustees meet at least four times a year and the elders and leadership team meet monthly to discuss and plan objectives and the implementation thereof. Matters of concern are raised with all members.

Staff of the charity have delegated authority to carry out day to day activities within policies agreed by the board.

Ecumenical relationships

Gracechurch works closely with other Christian organisations such as Newfrontiers and the Evangelical Alliance and other churches in the local area.

Impact of COVID 19

During this financial year, COVID19 continued to have some impact on the activities of the CIO. While we have continued to hold meetings, those in the earlier part of the year were done ‘online’ via Zoom. We have continued to offer support, together with other Churches, to the vulnerable in the community. We have needed to make adjustments for how we have hosted some larger meetings and events (e.g. outside, social distancing) in line with government guidance. We have continued to hold smaller support groups for those affected by substance misuse.

GRACECHURCH BROMSGROVE

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They 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.

The trustees' report was approved by the Board of Trustees.

Dr J Coleman Trustee Dated: 27 January 2023

GRACECHURCH BROMSGROVE

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF GRACECHURCH BROMSGROVE

I report to the trustees on my examination of the financial statements of Gracechurch Bromsgrove (the charity) for the year ended 31 March 2022.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. 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

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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

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

Colm McGrory FCA Ormerod Rutter Limited The Oakley Kidderminster Road Droitwich Worcestershire WR9 9AY

Dated: 27 January 2023

GRACECHURCH BROMSGROVE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and legacies
3
29,079
8,463
Investments
4
9
-
Total income
29,088
8,463
Expenditure on:
Charitable activities
5
41,464
8,585
Net
(outgoing)/incoming
resources before
transfers
(12,376)
(122)
Gross transfers between
funds
(5,000)
5,000
Net (expenditure)/income for
the year/
Net movement in funds
(17,376)
4,878
Fund balances at 1 April
2021
123,788
19,327
Fund balances at 31
March 2022
106,412
24,205
Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
37,542
166,069
21,652
9
21
-
37,551
166,090
21,652
50,049
42,302
2,325
(12,498)
123,788
19,327
-
-
-
(12,498)
123,788
19,327
143,115
-
-
130,617
123,788
19,327
Total
2021
£
187,721
21
187,742
44,627
143,115
-
143,115
-
143,115

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

GRACECHURCH BROMSGROVE

BALANCE SHEET

AS AT 31 MARCH 2022

Notes
Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
12
Unrestricted funds
Designated funds
13
General unrestricted funds
2022
£
16,908
116,111
133,019
(4,385)
43,000
63,412
£
1,983
128,634
130,617
24,205
106,412
130,617
2021
£
23,113
119,955
143,068
(2,003)
40,000
83,788
£
2,050
141,065
143,115
19,327
123,788
143,115

The financial statements were approved by the Trustees on 27 January 2023

Dr J Coleman Trustee

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Charity information

Gracechurch Bromsgrove is a Charitable Incoporated Organisation (CIO) with the Charity Commission for England and Wales. It is governed by a trust deed dated 19th September 2019 and adopted by its members.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 10% - 50% straight line basis Computer equipment 20% - 33% straight line basis

The gain or loss arising on any disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Donations and gifts
28,735
8,463
Transfer of funds from
Gracechurch Trust
Bromsgrove
-
-
Non gift aid donations
344
-
29,079
8,463
Total Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
37,198
65,428
10,989
-
96,659
10,663
344
3,982
-
37,542
166,069
21,652
Total
2021
£
76,417
107,322
3,982
187,721

4 Investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Interest receivable 9 21

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

5 Charitable activities

Share of support costs (see note 6)
Share of governance costs (see note 6)
Analysis by fund
Unrestricted funds
Restricted funds
Support costs
Support
costs
Governance
costs
£
£
Staff costs
12,003
-
Depreciation
1,296
-
Premises costs
7,252
-
Printing and Stationery
1,479
-
Charitable activities
7,558
-
Books
441
-
General giving
9,020
-
Housing fund costs
-
-
Church planting fund
8,585
-
Legal and professional
551
-
Audit fees
-
1,864
48,185
1,864
Analysed between
Charitable activities
48,185
1,864
2022
£
48,185
1,864
50,049
41,464
8,585
50,049
2022Support costs Governance
costs
£
£
£
12,003
13,417
-
1,296
1,304
-
7,252
6,776
-
1,479
1,393
-
7,558
3,739
-
441
186
-
9,020
13,276
-
-
17
-
8,585
2,074
-
551
659
-
1,864
-
1,786
50,049
42,841
1,786
50,049
42,841
1,786
2021
£
42,841
1,786
44,627
42,302
2,325
44,627
2021
£
13,417
1,304
6,776
1,393
3,739
186
13,276
17
2,074
659
1,786
44,627
44,627

6 Support costs

Governance costs includes costs incurred to the auditors of £1,864 (2021: £1,786) for independent examination fees.

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

8 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
2 3
Employment costs 2022 2021
£ £
Wages and salaries 12,003 13,417
9 Tangible fixed assets
Fixtures and Computer Total
fittings equipment
£ £ £
Cost
At 1 April 2021 5,607 7,853 13,460
Additions - 1,229 1,229
At 31 March 2022 5,607 9,082 14,689
Depreciation and impairment
At 1 April 2021 5,314 6,096 11,410
Depreciation charged in the year 199 1,097 1,296
At 31 March 2022 5,513 7,193 12,706
Carrying amount
At 31 March 2022 94 1,889 1,983
At 31 March 2021 293 1,757 2,050
10 Debtors
2022 2021
Amounts falling due within one year: £ £
Other debtors 16,908 23,113

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

11 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income
2022
£
2,485
1,900
4,385
2021
£
203
1,800
2,003

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

12 Restricted funds

Movement in funds Movement in funds Movement in funds Movement in funds
Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at
resources expended 1 April 2021 resources expended 31 March 2022
£ £ £ £ £ £ £ £
Housing fund 1,934 (51) 6,150 8,033 2,148 - - 10,181
Church planting fund/Junction 1 9,055 (2,074) 242 7,223 6,315 (8,585) - 4,953
Hardship fund - (200) 4,271 4,071 - - 5,000 9,071
10,989 (2,325) 10,663 19,327 8,463 (8,585) 5,000 24,205

Housing fund - a fund to provide support for future housing or building projects

Church planting fund/Junction 1 - funds to support a church plant in Bromsgrove

Hardship fund - a fund for use in future Drug and Alcohol residential rehabilitation services

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

13 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Transfers
Balance at
1 April 2021
£
£
Housing fund
40,000
40,000
40,000
40,000
Housing fund - to provide support for future housing or building projects.
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
Total Unrestricted
funds
2022
2022
2022
2021
£
£
£
£
Fund balances at 31
March 2022 are
represented by:
Tangible assets
1,983
-
1,983
2,050
Current assets/(liabilities)
104,429
24,205
128,634
121,738
106,412
24,205
130,617
123,788
Transfers
Balance at
31 March 2022
£
£
3,000
43,000
3,000
43,000
Restricted
funds
Total
2021
2021
£
£
-
2,050
19,327
141,065
19,327
143,115
Transfers
Balance at
31 March 2022
£
£
3,000
43,000
3,000
43,000
Restricted
funds
Total
2021
2021
£
£
-
2,050
19,327
141,065
19,327
143,115
43,000
Total
2021
£
2,050
141,065
143,115

14 Analysis of net assets between funds

15 Related party transactions

There were no disclosable related party transactions during the year (2021 - none).