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2023-03-31-accounts

Charity Registration No. 1185718

GRACECHURCH BROMSGROVE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 12 September 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 2023

The trustees present their report and financial statements for the year ended 31 March 2023.

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 advancement for the public benefit of religious and other education. iii) The relief of the sick and disabled.

iv) Such other charitable purposes as the trustees in their absolute discretion think fit.

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 2023

Financial review

The net result for the year was a deficit of £-18,597 (2022 deficit: £-12,498). The charity received donations and legacies, and investment income amounting to £43,619 (2022: £37,551) of which £62,216 (2022: £50,049) was spent in pursuit of the charity's objectives. At 31st March 2023, £19,175 (2022: £24,205) was held as restricted funds and £92,845 (2022: £106,412) 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 remain in the current financial climate.

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 in open meetings where all are invited. They 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 2023

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 CIO currently employs two members of staff.

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 12 September 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 Steve Vincent and Jonathan Coleman who provide spiritual and strategic direction to the Church.

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

Unlike many Charities, we were not adversely affected financially due to the pandemic. Due to the reduction in larger meetings and cancellation of our larger events, our financial position, income and expenditure, remains healthy.

GRACECHURCH BROMSGROVE

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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.

Mr I Dixon

Trustee Dated: 9 November 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 2023.

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: 9 November 2023

GRACECHURCH BROMSGROVE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
38,591
4,509
Investments
4
519
-
Total income
39,110
4,509
Expenditure on:
Charitable activities
5
52,677
9,539
Gross transfers between
funds
-
-
Net expenditure for the year/
Net movement in funds
(13,567)
(5,030)
Fund balances at 1 April
2022
106,412
24,205
Fund balances at 31
March 2023
92,845
19,175
Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
43,100
29,079
8,463
519
9
-
43,619
29,088
8,463
62,216
41,464
8,585
-
(5,000)
5,000
(18,597)
(17,376)
4,878
130,617
123,788
19,327
112,020
106,412
24,205
Total
2022
£
37,542
9
37,551
50,049
-
(12,498)
143,115
130,617

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 2023

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
2023
£
-
114,432
114,432
(3,545)
47,000
45,845
£
1,133
110,887
112,020
19,175
92,845
112,020
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

The financial statements were approved by the Trustees on 9 November 2023

Mr I Dixon Trustee

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023

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 2023

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
2023
2023
£
£
Donations and gifts
36,569
4,509
Non gift aid donations
2,022
-
38,591
4,509
Total Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
41,078
28,735
8,463
2,022
344
-
43,100
29,079
8,463
Total
2022
£
37,198
344
37,542

4 Investments

Interest receivable

Unrestricted Unrestricted
funds funds
2023 2022
£ £
519 9

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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
12,632
-
Depreciation
1,272
-
Premises costs
4,512
-
Printing and stationery
2,258
-
Hardship fund
995
-
Charitable activities
14,275
-
Books
2,132
-
General giving
13,615
-
Church planting fund
8,544
-
Legal and professional
551
-
Audit fees
-
1,430
60,786
1,430
Analysed between
Charitable activities
60,786
1,430
2023
£
60,786
1,430
62,216
52,677
9,539
62,216
2023Support costs Governance
costs
£
£
£
12,632
12,003
-
1,272
1,296
-
4,512
7,252
-
2,258
1,479
-
995
-
-
14,275
7,558
-
2,132
441
-
13,615
9,020
-
8,544
8,585
-
551
551
-
1,430
-
1,864
62,216
48,185
1,864
62,216
48,185
1,864
2022
£
48,185
1,864
50,049
41,464
8,585
50,049
2022
£
12,003
1,296
7,252
1,479
-
7,558
441
9,020
8,585
551
1,864
50,049
50,049

6 Support costs

Governance costs includes costs incurred to the auditors of £1,430 (2022: £1,864) 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 2023

8 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
2 2
Employment costs 2023 2022
£ £
Wages and salaries 12,632 12,003
9 Tangible fixed assets
Fixtures and Computer Total
fittings equipment
£ £ £
Cost
At 1 April 2022 5,607 9,082 14,689
Additions 421 - 421
Disposals (836) (1,268) (2,104)
At 31 March 2023 5,192 7,814 13,006
Depreciation and impairment
At 1 April 2022 5,512 7,193 12,705
Depreciation charged in the year 100 1,046 1,146
Eliminated in respect of disposals (710) (1,268) (1,978)
At 31 March 2023 4,902 6,971 11,873
Carrying amount
At 31 March 2023 290 843 1,133
At 31 March 2022 94 1,889 1,983
10 Debtors
2023 2022
Amounts falling due within one year: £ £
Other debtors - 16,908

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

11 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income
2023
£
1,594
1,951
3,545
2022
£
2,485
1,900
4,385

GRACECHURCH BROMSGROVE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

12 Restricted funds

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Balance at
1 April 2021 resources expended 1 April 2022 resources expended 31 March 2023
£ £ £ £ £ £ £ £
Housing fund 8,033 2,148 - - 10,181 918 - 11,099
Church planting fund/Junction 1 7,223 6,315 (8,585) - 4,953 3,591 (8,544) -
Hardship fund 4,071 - - 5,000 9,071 - (995) 8,076
19,327 8,463 (8,585) 5,000 24,205 4,509 (9,539) 19,175

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 2023

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:

Balance at Transfers Balance at Transfers Balance at
1 April 2021 1 April 2022 31 March 2023
£ £ £ £ £
Housing fund 40,000 3,000 43,000 3,000 46,000
Hardship fund - - - 1,000 1,000
40,000 3,000 43,000 4,000 47,000
Housing fund - to provide support for future housing or building projects.
Hardship fund - a fund for use in future Drug and Alcohol residential rehabilitation services.
Analysis of net assets between funds
Unrestricted Restricted Total Unrestricted Restricted
Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Fund balances at 31
March 2023 are
represented by:
Tangible assets 1,133 - 1,133 1,983 - 1,983
Current assets/(liabilities) 91,712 19,175 110,887 104,429 24,205 128,634
92,845 19,175 112,020 106,412 24,205 130,617

14 Analysis of net assets between funds

15 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).