**Registered Charity Number: 1186665 Registered Charity Number:**
# **The Junction Church**
Report and Accounts For the year ended 31st March 2023
## **Contents**
|Charity Information|Page 3|
|---|---|
|Trustees’ Annual Report|Page 4-6|
|Independent Examiner’s Report|Page 7-8|
|Statement of Financial Activities|Page 9|
|Balance Sheet|Page 10|
|Notes to the Accounts|Page 11 - 16|
**2**
## **Charity Information**
**Charity Number:** 1186665 **Registered Office:** The Junction Church PO Box 10677 Loughborough LE11 9JT **Governing Document:** The Junction Church is governed by its Constitution dated 29 November 2019 and was created as a Charitable Incorporated Organisation (“the CIO”) registered with the Charity Commission. **Trustees:** Mark Bean (Chair) Lydia Todd Carolyn Bean Joseph Ohajunwa **Banker:** Virgin Money 3 Eastgates Leicester LE1 5YA **Independent Examiner:** Paul Exton Accounting Services 53 West Leake Lane Kingston on Soar Nottingham NG11 0DN
**3**
The trustees present their annual report, together with the unaudited financial statements of the charity, for the year ended 31st March 2023.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The charity Trustees are responsible for the general control and management of the charity. The Trustees give their time freely and receive no remuneration or other financial benefits. The Trustees meet together at least three times a year and are responsible for all major decisions taken in relation to running the church and the activities provided by the charity. The day-today management of the church and activities are delegated to Senior Pastors Roy and Lydia Todd.
Roy and Lydia are supported by a team they lead and are developing. As the church has grown, some of these leaders have oversight in a paid capacity. Roy and Lydia have numerous mechanisms of oversight and accountability.
## **New Trustees**
New trustees are appointed by existing trustees when appropriate. Suitable candidates are considered on the basis of their skills, experience and understanding of the aims of the church.
## **OBJECTIVES AND ACTIVITIES**
The principal objects of the charity are:
- To advance the Christian Faith and the worship of God in any part of the world, including the teaching and training of Christian people and the printing and distribution of the Bible and Christian literature using any form of media.
- To relieve people in any part of the world who are aged or sick or who are in conditions of need, hardship and distress.
- To advance education based on Christian principles.
The main activities are:
- Working with churches and charities in the UK and overseas, to teach, empower and equip people to develop life skills that will help them find employment, a better balance of family life as well as helping serve their communities better.
- Teaching the values of the Christian faith helping build a society that defeats poverty and helps people to live honourable lives that both respect themselves and others.
m
**4**
## **ACHIEVEMENTS AND PERFORMANCE**
Throughout 2022, The Junction Church continued to grow and flourish across all three campuses in Loughborough, Leicester, and Nottingham in addition to having a strong online presence which had grown and been established with viewers across the globe during the pandemic in 2020-2021. Life Groups have continued to run throughout the year, providing a space for the church community to gather and build relationships whilst exploring their faith in safe, more intimate setting than the larger Sunday gatherings. There are still a few groups that have chosen to meet online for these Life Groups, due to travel arrangements, childcare etc which we have been able to facilitate well.
The Junction Church is passionate about training and releasing leaders within the church and has been running courses such as our ‘Developing Leaders Forum’ which encourage those who come along to grow in their skills such as communication, decision-making, team-working and initiative. We have seen lots of young people from our Youth and Student ministries participate in this course and grow accordingly.
Our new Community Outreach programme FTW (For The Win) was run again this year, this is a week-long schools and community projects week, where a small team of volunteers went into local schools and helped out with grounds work, put on community fun-days and provided resources for families during the school break. Simultaneously, in conjunction with The Beacon Church in Loughborough, volunteers ran a Breakfast Club over that week, where families could come and get free breakfast and our Kids and Youth Workers put on some fun activities to keep children entertained for the morning. We saw lots of returning families from 2021 come back and join us for this week and it was great to be able to connect with the community in this way.
The Junction Church continues to work alongside and support The Beacon Church, with Pastor Roy Todd as their Senior Pastor. In October 2022 The Junction Church merged with another charity, Chapel Street Pentecostal Church (Charity No: 1051889). The Junction Church stepped in to support the existing congregation in Chapel Street at the current pastor’s request, preempting his imminent retirement from the ministry. A team from The Junction Church go down every week and help the Chapel Street congregation to run their weekly service, which can vary from leading the services, arranging the worship or other practical elements of support. Upon the merger the Junction Church acquired a building from Chapel Street. This is currently being valued professionally and will be reflected in next year’s accounts.
Christmas 2022 saw more community outreach in the production of this year’s Nativity Service in our Loughborough campus. The kids and youth from the church put on a great Nativity service with a pantomime type production, followed by lots of games and activities for everyone to enjoy. Hundreds of people from the community came and it was a great event.
Early 2023 saw the launch of a new teaching resource on our YouTube channel, with a weekly podcast episode led by our Senior Pastor, Ps Roy Todd, with Dr John Huckle and some of our Pastoral Team. This has been well received by our congregation and we are looking to continue this throughout the rest of the year.
**5**
## **VOLUNTEERS**
Across all our churches there are more than 120 volunteers involved in serving and leading. We could not operate and do everything we do without the generosity and dedication of those who diligently serve each year.
## **FINANCIAL REVIEW**
The net of income and expenditure for the year resulted in a healthy surplus of £24,582 on unrestricted funds. Restricted funds net was a surplus of £2,672. Bank balances held on 31 March 2023 were £159,449 held in unrestricted funds and £156,468 held in restricted funds.
## **GOING CONCERN**
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **RESERVES POLICY**
The reserves policy set by the Trustees is to carry net unrestricted income equal to a minimum of 6 months’ committed expenditure. Committed expenditure includes Sunday venue costs, all salary costs plus any direct debits. Unrestricted net income at the year-end were £230,075 and the Trustees are happy that this amount is well above the policy set.
## **TRUSTEES’ APPROVAL OF THE ANNUAL REPORT**
The annual report was approved by the trustees on 10[th] January 2024.
## **SUMMARY**
The Trustees consider that they have complied with the Charities Act 2011 and that the church and its membership are meeting the charitable objectives that were determined when the church was formed. As it grows, it is expected that the church’s community will have further opportunities to increase its activity and influence.
## **Mark Bean Trustee**
**6**
Independent Examiner's Report to the Trustees of The Junction
Church
I report to the charity trustees on my examlnation of the accounts of The
Junctlon Church for the year ended 31 March 2023, which are set out on
pages 8 and 9.
RESPONSABILITIES AND BASIS OF REPORT
As the charlty's trustees of the Company. you are responsible for the
preparation of the accounts In accordance with the requirements of the
Companles Act 2006 ('the 2006 Act,).
Havlng satlsfied myself that th@ accounts of Ihe company are not requlred to
be audlted under Part 16 of the 2006 Act and are ellglble for Independent
examinatlon, I report In respect of my examination of your charity's accounts
as carried out under section 145 of the Charitles Act 2011 Act ('the 2011 Act,),
In carrylng out my examination I have followed thé Directlons given by the
Charity Commlssion under section 145(5)(b) of the 2011 Act.
INDEPENDENT EXAMINER'S STATEMENT
Slnce the Company's gross income exceeded £250.000 your examiner must
be a member of a body Ilsted section 145 of the 2011 Act, I confirm thal I
am quallfied to undertake the examlnation because l a member of
Assoclatlon of Accountlng Technlclans, whlch is one of the listed bodles.
I have completed my examination. I confirm that no matters have come to my
attention in connectlon wlth the examlnation givlng me cause to belléve,,
l. accountlng records were not kept in respect of the Company as
requlred by secllon 386 of the 2006 Act,, or
2. the accounts do not accord with those records,. or
3. the accounts do not comply wSth the accounting requirements of
section 396 of the 2D06 Act other than any requlrement that the
accounts glve a 'tru& and falr view whlch is not a matter considered as
part of an independent examination., or
4. the accounts have not been prepared In accordance wltrh the methods
and principles of the Statement of Recommended Practice for
occountlng and reporting by charltles.
I have no concerns and have come across no other matters In connectlon with
the examlnation to which attention should be drawn in thls report in order to
enable a proper understanding of the accounts to be reached.
Emma Waldron
MAAT
Paul Exton Accounting Setvices
53 West L&oke Lane
Kingston on Soar
Nottingham
NGI I ODN
19 January 2024
## **The Junction Church**
## **Statement of Financial Activities for the year ended 31 March 2023**
|**Notes**
**Incoming resources:**
Donations and legacies
2
Charitable Activities
Events and Activities
Interest Received
Restricted Income
**Total incoming resources**
**Resources expended:**
Charitable activities
3
Restricted Activity
**Total resurces expended**
**Net surplus / (Deficit) for the year**
**Transfer between funds**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2023**
**£**
**£**
**£**
220,977
-
220,977
2,250
-
2,250
23,074
-
23,074
1,334
-
1,334
-
105,772
105,772
**247,636**
**105,772**
**353,408**
223,054
-
223,054
-
103,099
103,099
**223,054**
**103,099**
**326,153**
24,582
2,672
27,255
-
-
-
**24,582**
**2,672**
**27,255**
205,492
153,795
359,287
**230,075**
**156,468**
**386,542**|**Unrestricte**
**d Funds**
**Restricted**
**Funds**
**Total**
**2022**
**£**
**£**
**£**
217,250
217,250
1,650
1,650
25,389
25,389
328
328
82,385
82,385
**244,616**
**82,385**
**327,002**
187,700
-
187,700
-
17,908
17,908
**187,700**
**17,908**
**205,608**
56,916
64,477
121,394
-
-
-
**56,916**
**64,477**
**121,394**
148,576
89,318
237,894
**205,492**
**153,795**
**359,287**|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure has arisen from continuing operations.
The notes from page 12 onwards form part of these accounts.
**9**
## **The Junction Church**
## **Balance Sheet as at 31 March 2023**
|**Notes**
**Fixed Assets**
Tangible assets
6
**Current Assets**
Debtors
7
Cash at Bank
**Total current assets**
**Creditors**
Amounts falling due within one
year
8
**Net current assets**
**Total net assets**
**Represented by**
Unrestricted funds
Restricted funds
**Total funds**|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2023**
**£**
**£**
**£**
38,534
-
38,534
35,681
-
35,681
159,449
156,468
315,917
**195,130**
**156,468**
**351,598**
3,589
-
3,589
**191,541**
**156,468**
**348,009**
**230,075**
**156,468**
**386,543**
230,075
-
230,075
-
156,468
156,468
**230,075**
**156,468**
**386,543**|**Unrestricte**
**d Funds**
**Restricted**
**Funds**
**Total**
**2022**
**£**
**£**
**£**
-
-
-
-
-
-
205,492
153,795
359,287
**205,492**
**153,795**
**359,287**
-
-
-
**205,492**
**153,795**
**359,287**
**205,492**
**153,795**
**359,287**
205,492
-
205,492
-
153,795
153,795
**205,492**
**153,795**
**359,287**|
|---|---|---|
The financial statements were approved by the trustees on 10th January 2024 and were signed on its behalf by:
Mark Bean Chair of trustees
**10**
## **The Junction Church**
## **Notes to the financial statements for the year ended 31 March 2023**
## **1 Accounting policies**
The financial statements have been prepared in accordance with applicable accounting standards in the United Kingdom (FRS 102), the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and with the Charities Act 2011. The financial statements are prepared on a going concern basis and the accounting policies have been applied consistently, other than where new policies have been adopted. The charity meets the definition of a public benefit entity as set out in FRS 102
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (accounts and Reports) Regulation 2008 only to the extent required to provide a ‘true and fair’ view. The departure has involved following the Charities SORP (FRS 102) published on 16th July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1st April 2005 which has since been withdrawn.
## **(a) Fund Accounting**
Unrestriced funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity.
Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal.
## **(b) Income**
Income is composed principally of donations by Church members and gift aid reclaimed on donations where eligible. The nature of the Church’s regular income means that income is brought into account only when the income is received. Gift aid reclaimed is recognised in the financial period to which it relates.
Income from any other activities is recognised when earned.
Investment income is recognised on a receivable basis and arises from interest bearing deposit accounts.
## **(c) Voluntary Help and Gifts in kind**
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these accounts as they cannot be reliably measured.
Donated goods and services, where significant, are included in income at an estimate of their value to the charity. An expense is recognised as those goods, facilities and services are consumed or distributed to beneficiaries.
## **(d) Expenditure**
Expenditure, including irrecoverable VAT, is recognised as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Charitable activities is accounted for on an accruals basis, the costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **(e) Government Grants**
Government grants relating to tangible fixed assets are treated as deferred income and released to the statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the statement of financial activities as the related expenditure is incurred.
**11**
## **The Junction Church**
## **Notes to the financial statements for the year ended 31 March 2023**
## **1 Accounting policies** (Continued)
## **(f) Taxation**
The Church is a registered charity, and as such, is entitled to certain exemptions on income and profits from investments and surplus on any activities carried on in furtherance of the Church’s primary objectives, based on the assumption that these surpluses are applied solely for charitable purposes.
The Church is not registered for VAT. Irrecoverable Value Added Tax is charged to the relevant expenditure heading to which the net cost is associated.
## **(g) Tangible Fixed Assets**
Fixed Assets are recorded at cost of purchase less accumulated depreciation. The Church generally capitalises assets which meet or exceed a de minimis value of £500 and are likely to have a useful economic life of more than one year.
Depreciation is charged at the following annual rates, commencing in the year of acquisition at rates estimated to write off their cost, less any estimated residual value, over their expected useful lives.
Motor vehicles 25% straight Line, accured from the month after purchase Freehold Property 1.5% straight Line, accured from the month after purchase Other assets 33.3% straight Line, accured from the month after purchase
## **(h) Debtors & Creditors**
The Church recognises all transactions on an accruals basis, which is to say that all sums due to or from the Church are included in the year which they occurred. If they have not been paid or received, they are included as a debtor or creditor.
## **(i) Pensions**
The church operates a defined contribution pension scheme, contributions payable to the scheme are charged to the Statement of Financial Activities in the period to which they relate.
## **(j) Going concern**
The trustees have determined that there is no material uncertainty that casts doubt on the entity’s ability to continue as a going concern.
## **(k) Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments, which are initially recognised at transaction value and subsequently measured at their settlement value.
**12**
**The Junction Church**
## **Notes to the financial statements for the year ended 31 March 2023**
## **2 Donations and legacies**
The majority of the incoming resources are donations from Church members.
|Income from donations
Gift Aid|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2023**
**£**
**£**
**£**
200,977
105,772
306,749
20,000
-
20,000
**220,977**
**105,772**
**326,749**|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2022**
**£**
**£**
**£**
217,250
82,385
299,635
-
-
-
**217,250**
**82,385**
**299,635**|
|---|---|---|
## **3 Resources expended**
|Ministry & Pastoral Care
Events
Employer Costs
Venue Hire
Admin and Operational costs
Restricted Activity|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2023**
**£**
**£**
**£**
37,001
-
37,001
17,616
-
17,616
111,669
-
111,669
24,890
-
24,890
31,878
-
31,878
-
103,099
103,099
**223,054**
**103,099**
**326,153**|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2022**
**£**
**£**
**£**
35,260
-
35,260
3,610
-
3,610
102,144
-
102,144
16,805
-
16,805
29,881
-
29,881
-
17,908
17,908
**187,700**
**17,908**
**205,608**|
|---|---|---|
## **4 Governance Costs**
The costs of governance is included in resouces expended and is split as follows:
|Legal & Professional
Examiner
Bank charges|**Total 2023**
**Total 2022**
**£**
**£**
6,161
-
250
250
161
6
6,572
256|
|---|---|
**13**
## **The Junction Church**
## **Notes to the financial statements for the year ended 31 March 2023**
|**5**
**Staff Costs**
An analysis of staff costs is as follows:
Wages and Salaries
Employers national Insurance
Employers pensions contributions|**Total 2023**
**£**
101,165
4,379
2,419
**107,963**|**Total 2022**
**£**
97,857
2,676
2,207
**102,740**|
|---|---|---|
No employees received employment benefits of more than £60,000 in either the current or preceding year.
|**6**
**Tangible Fixed Assets**
**Cost**
Brought forward
Additions in year
Carried forward
**Depreciation**
Brought forward
Charge for the year
Carried forward
**Net Book Value**
at 31 Mar 2023
at 31 Mar 2022
**7**
**Debtors**
Gift Aid debtor
Prepayments
Other debtors
**8**
**Creditors**
Other Creditors|**Media & Sound**
**Equipment**
**Software**
**and Systems**
**Freehold**
**Property**
**£**
**£**
**£**
-
-
-
-
-
-
**-**
**-**
**-**
-
-
-
-
-
-
**-**
**-**
**-**
**-**
**-**
**-**
-
-
-|**Motor**
**Vehicles**
**Total**
**£**
**£**
-
-
43,015
43,015
**43,015**
**43,015**
-
-
4,481
4,481
**4,481**
**4,481**
**38,534**
**38,534**
-
-
**Total 2023**
**Total 2022**
20,000
-
2,763
-
12,918
-
**35,681**
**-**
**Total 2023**
**Total 2022**
3,589
-
**3,589**
**-**|
|---|---|---|
**14**
**The Junction Church**
## **Notes to the financial statements for the year ended 31 March 2023**
## **9 Analysis of movement in Funds**
|**Restricted Funds**
Vision
Building Fund
Community Fund
National Grid Grant
Other
**Unrestricted Funds**
**Total**
**Restricted Funds**
Vision
Building Fund
Community Fund
Other
**Unrestricted Funds**
**Total**|**Opening**
**Balance**
**1st April 2022**
**Incoming**
**Resources**
**2022/23**
**Outgoing**
**Resources**
**2022/23**
**Transfers**
**2022/23**
**Closing Balance**
**31st March 2023**
**£**
**£**
**£**
**£**
**£**
39,906
17,609
18,293
-
39,222
61,066
3,046
-
-
64,112
9
158
-
-
167
-
10,000
10,000
-
-
52,814
74,959
74,806
52,967
**153,795**
**105,772**
**103,099**
**-**
**156,468**
**205,492**
**247,636**
**223,054**
**-**
**230,075**
**359,287**
**353,408**
**326,153**
**-**
**386,542**
**Opening**
**Balance**
**1st April 2021**
**Incoming**
**Resources**
**2021/22**
**Outgoing**
**Resources**
**2021/22**
**Transfers**
**2021/22**
**Closing Balance**
**31st March 2022**
**£**
**£**
**£**
**£**
**£**
22,835
27,460
10,389
-
39,906
59,042
2,024
-
-
61,066
1,635
1,493
3,119
-
9
5,806
51,408
4,400
52,814
**89,318**
**82,385**
**17,908**
**-**
**153,795**
**148,576**
**244,616**
**187,700**
**-**
**205,492**
**237,894**
**327,001**
**205,608**
**-**
**359,287**|
|---|---|
Restricted Funds and the use of these funds are as follows:
Vision To help further the vision and expansion of the Junction Church Building Fund An ongoing fund to be used to purchase a building for the Church Community Fund To support those in need in our local community and our church
## **10 Transactions with trustees**
None of the trustees received any fees for their services as Trustees. Lydia Todd is a Trustee and engaged in Ministry for the Church, for which employment costs of £28,865 (2022: £33,960) were made during the year, this includes all employer costs. Included in this amount, employer pension contributions of £1,002 (2022: £914) were made.
These payments are permitted by section 6 (2g) of the charities governing document.
Except for the reimbursement of expenses incurred when acting as agent for the charity, no expenses were paid to, or for, the trustees.
**15**
## **The Junction Church**
## **Notes to the financial statements for the year ended 31 March 2023**
## **11 Transaction with related parties**
The following is a summary of organisations and individuals, which are related to The Junction Church together with details of the transactions made with them during the year.
Remuneration in the year was paid to Roy Todd (husband of Trustee Lydia Todd) who was employed in their own right. Employment costs and benefits totalling £51,017 (2022: £46,880) were made.
The charity received donations totalling £21,200 (2022: £11,717) from related parties, including any related gift aid (related parties includes the trustees, any other members of key management and anyone closely connected to them).
A company owned and controlled by Mark Bean (Trustee) and Carolyn Bean (Trustee) received £72 (2022: £679) for providing printing services to the charity.
There are no further related party transactions to disclose apart from these above.
## **12 Fund Transfers**
Income and Expenditure from the prior year has been corrected in this year for income and expenditure that had been allocated to unrestricted funds rather than restricted funds.
## **13 Control**
There is no ultimate controlling party.
## **14 Going Concern**
The trustees have determined that there is no material uncertainty that casts doubt on the entity’s ability to continue as a going concern.
**16**