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2020-10-31-accounts

Grace Church Newton Hall

Report and Accounts Period ended 31 October 2020

1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk

GRACE CHURCH NEWTON HALL

COMPANY INFORMATION

FOR THE PERIOD ENDED 31 OCTOBER 2020

Mr Daniel C. Almond Rev Rodney J Earnshaw Mr Scott M Harder Rev Mark W Rainbow

Trustees Mr Daniel C. Almond Rev Rodney J Earnshaw Mr Scott M Harder Rev Mark W Rainbow Company Secretary Mr Scott M Harder Governing Document September 2019 Company Registration Number 12242206 Charity Registration Number 1188728 Registered Office Portland House Belmont Business Park Durham DH1 1TW Independent Examiner Archie McDowall BA, CA Stewardship 1 Lamb's Passage London EC1Y 8AB Bankers HSBC 110 Grey Street Newcastle-upon-Tyne NE1 6JG CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent, ME19 4JQ

Memorandum and Articles of Association dated 2 September 2019

Contents Page
Company Information 1
Trustees' Annual Report 2-5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Accounts 9-13
Detailed Statement of Financial Activities with Comparatives 14

Page 1

GRACE CHURCH NEWTON HALL TRUSTEES’ AND DIRECTORS’ REPORT

STUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Grace Church Newton Hall is a company limited by guarantee, registered in England (incorporated 3 October 2019), having a Memorandum and Articles of Association as its governing document.

Trustees

The trustees when complete must number at least four and not more than nine individuals and include the Senior Minister. Up to two trustees must be appointed who are external to Grace Church Newton Hall and work as a minister of a different church. All other trustees must be members of Grace Church Newton Hall.

The Church currently has four trustees, three of whom are members of the Grace Church Newton Hall congregation and one of whom is an external trustee and a minister at Holy Trinity Gateshead.

Apart from the Senior Minister, each trustee is appointed for a term of office of no more than three years, after which they may be reappointed. The appointment or reappointment of any trustee is made by the remaining trustees. Individual trustees are selected on the basis of Christian maturity, godliness, and leadership qualities. In addition, trustees must on appointment and every three years thereafter give a signed confirmation of their personal trust in Jesus Christ as Lord and Saviour and to assent to the definition of the Christian Faith as set out in the Articles of Association.

Pay Policy for Key Management Personnel

The salary of key management personnel is reviewed annually and benchmarked against pay levels in other similar organisations.

OBJECTIVES AND ACTIVITIES

Grace Church Newton Hall is a conservative evangelical church within the Anglican tradition. The church gives full assent to the 39 Articles of Religion of the Church of England and its Senior Minister is the Reverend Mark William Rainbow, an ordained minister in the Anglican Church. The Church meets at various venues in the North of Durham where the Christian faith is taught.

Objectives

The objects of the church are the advancement of the Christian faith, including:

Page 2

Activities

We undertook a number of activities in the year to achieve these objectives, including;

Following the outbreak of COVID-19 in March 2020, the church took steps in line with government advice to help contain the spread of COVID-19, resulting in the temporary suspension of physical gatherings when appropriate. Sunday services, mid-week groups and Junior Jivers continued online through Zoom, and as restrictions were eased, hybrid meetings were held with some members attending socially distanced services in person, with others joining on Zoom.

Public benefit

In planning the activities of the charity, the trustees have had regard to the Charity Commission’s guidance on public benefit, in particular the specific guidance on charities for the advancement of religion. We welcome allcomers to our service, advertising services on our website and Facebook, and in particular focusing on bringing the good news of Jesus Christ to our local community through evangelist services and events.

ACHIEVEMENTS AND PERFORMANCE

Grace Church Newton Hall began as a church plant of Christchurch Durham in Easter 2017. Grace Church Newton Hall formed as a separate legal entity in October 2019. On 1 September 2020 the operations of the church plant were moved across from Christchurch Durham to the Company Grace Church Newton Hall, with church members moving their giving across from Christchurch Durham to Grace Church Newton Hall, and the trustees of Grace Church Newton Hall becoming responsible for the governance of the church and the meeting of the church’s obligations.

During the year, the congregation included an average of approximately 60 adults and 40 children. In addition, the church welcomed a number of visitors, in particular at special services such as Christmas and Easter.

Page 3

Children and Youth Groups

The following children and youth groups ran during our Sunday services:

Creche (0 - 2 year olds) Scramblers (2 – 3 year olds) Climbers (4 to 6 year olds) Explorers (7 to 11 year olds) Pathfinders (12 to 14 year olds)

Following the suspension of physical gatherings, some of the children’s groups continued on Zoom and, as restrictions lifted, some groups were able to meet in person.

Volunteers

The church benefitted greatly from the time and support of many volunteers. In accordance with accounting standards, the economic contribution of volunteers is not measured in the accounts.

Mission partners

The church supported 2 mission partner families seeking to share the good news of Jesus Christ in various parts of the world in the year through prayer, encouragement and financial support totalling £925.

FINANCIAL REVIEW

The church’s income for the year was £33,907 and its expenditure was £13,484. As a result, net incoming resources for the financial period ending 31 October 2020 were £20,423. This was a result of one-off funding from the congregation during the year in order to provide appropriate reserves following the trustees taking on the financial operations of the church from Christchurch Durham on 1 September 2020.

The church had no restricted funds during the financial year.

Investment Policy

The charity’s surplus funds are held on a current account with CAF Bank.

Reserves Policy

The trustees have agreed to maintain a surplus unrestricted cash balance of at least three months’ expenditure, equal to approximately £15,000, so that the church can continue to operate should income or expenses vary. At the year-end the charity held unrestricted cash of £16,142 and reserves have been maintained in excess of this level to date.

Risk Management

The trustees regularly review the church’s activities to identify risks facing the church and actively manage and mitigate those risks.

FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS

The trust does not hold any funds as a custodian trustee on behalf of others.

Page 4

APPROVAL

This report has been prepared in accordance with the provision of the Companies Act 2006 relating to small companies and was approved by the trustees on

28 June 2021

and signed on their behalf by

Mr S Harder Director/Trustee

Page 5

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF

GRACE CHURCH NEWTON HALL ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the period ended 31 October 2020 on pages 7 to 14 following, which have been prepared on the basis of the accounting policies set out on pages 9 to 10.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

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:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

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 accounts to be reached.

Archie McDowall BA, CA Stewardship 1 Lamb's Passage London EC1Y 8AB

Date: 29 June 2021

Page 6

GRACE CHURCH NEWTON HALL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 31 OCTOBER 2020

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Total income and endowments
EXPENDITURE ON:
Charitable activities
5
Total expenditure
Net gains/(losses) on investments
Net income/(expenditure)
Transfers between funds
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
13		 Unrestricted
Funds
£
33,845
62
33,907
13,484
13,484
-
20,423
-
20,423
-
20,423		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-		 Total
Funds
2020
£
33,845
62
33,907
13,484
13,484
-
20,423
-
20,423
-
20,423

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

All income and expenditure derive from continuing operations.

The statement of financial activities also complies with the requirements for an income and expenditure account required by the Companies Act 2006.

The notes on pages 9-13 form part of these accounts.

Page 7

GRACE CHURCH NEWTON HALL

BALANCE SHEET

AS AT 31 OCTOBER 2020

Note
FIXED ASSETS
Tangible assets
7
CURRENT ASSETS
Stock
8
Debtors
9
Cash at bank and in hand
10
CREDITORS: Amounts falling
due within one year
11
Net current assets
Total assets less current liabilities
TOTAL NET ASSETS
FUND BALANCES
13
Unrestricted Funds
General funds
Restricted Funds		 Unrestricted
Funds
£
1,842
1,842
34
5,781
16,142
21,957
(3,376)
18,581
20,423
20,423
20,423
20,423
-
20,423		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
Funds
2020
£
1,842
1,842
34
5,781
16,142
21,957
(3,376)
18,581
20,423
20,423
20,423
20,423
-
20,423

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 October 2020.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 October 2020 in accordance with Section 476 of the Companies Act 2006 however, in accordance with Section 145 of the Charities Act 2011, the accounts have been examined by an independent examiner and their report has been included in these financial statements.

The directors (who are the charitable company's trustees for the purposes of charity law) acknowledge their responsibilities for:

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors and were signed on its behalf by:

Scott M Harder

Date: 28 June 2021

Company number: 12242206

The notes on pages 9-13 form part of these accounts.

Charity number: 1188728

Page 8

GRACE CHURCH NEWTON HALL

NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 31 OCTOBER 2020

1 Statutory Information

The charity is a charitable company limited by guarantee and is incorporated in the United Kingdom. The company's registered number and registered office address can be found on the Company Information page.

2 Accounting Policies

These financial statements are prepared on a going concern basis, under the historical cost convention .

These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102"), with the Companies Act 2006 and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.

The principles adopted in the preparation of the financial statements are set out below.

a) Going concern

The trustees (who are the charitable company's directors for the purposes of company law) have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements. In making this assessment the trustees have considered how Covid-19 might affect projections.

b) Income

Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from donations includes:

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 financial statements as they cannot be reliably measured.

When donated goods, services and facilities are distributed or consumed, an expense in respect of those items is included in the Statement of Financial Activities. At the period end any goods that have not been distributed or consumed are recognised as stock; donated fixed assets are capitalised.

iii) Legacies. Income from legacies is recognised when a distribution is received from the estate or, if earlier, when the charity has been notified that a distribution will be made and the amount receivable can be measured reliably.

Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects.

Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity.

c) Expenditure

Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.

The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.

Page 9

GRACE CHURCH NEWTON HALL

NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 31 OCTOBER 2020

d) Fund accounting

e) Tangible fixed assets

Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £1,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:

Equipment Over 3 to 7 years

The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.

f) Stocks

Stocks of goods purchased for re-sale are stated at the lower of cost and net realisable value.

g) Pension scheme arrangements The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.

h) Taxation The company is a registered charity; it has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

i) Financial instruments The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).

j) Exemption from preparing a cashflow statement

The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.

k) Critical accounting estimates and areas of judgement

The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.

3 Donations

3
Donations
Regular Giving
Donations in kind (note 3a)
Other Donations
Income tax recoverable
a
Donations in kind comprise:
Goods donated for use by the charity		 2020
£
24,188
1,857
2,019
5,781
33,845
2020
£
1,857
1,857

Page 10

GRACE CHURCH NEWTON HALL

NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 31 OCTOBER 2020

4 Income from charitable activities

Community outreach programs
Book sales
5
Charitable expenditure
a
Costs incurred directly on specific activities
Salaries
Staff pension costs
Venue hire
Event costs
Books
Other costs
Grants payable (note 8c)
b
Costs incurred on support & administration
Governance costs
Independent examiner's fee
Other
Office and IT
Safeguarding
Bank charges
Insurance
Legal and accountancy
Depreciation of fixed assets
Total expenditure		 2020
£
39
23
62
2020
£
7,156
651
1,801
350
23
236
10,217
925
11,142
840
840
448
319
15
93
13
614
2,342
13,484

The fee payable to the independent examiner for preparing and examining the accounts was £700 plus VAT

c Grants payable

Grants for UK and overseas mission

Institutions
£
-		 Individuals
£
925
925		 2020
£
925
925

Page 11

GRACE CHURCH NEWTON HALL

NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 31 OCTOBER 2020

6 Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses

The average monthly number of employees during the period was 1. Most of the charity's activities are carried out by volunteers.

No staff received salaries at a rate of more than £60,000 per annum.

The charity's key management comprise the trustees and the key staff named on the Company Information page. Total employment benefits payable to key management for the period were as follows:

Other
Employer
Wages &
employment
pension
salaries
benefits
contributions
Trustees:
Rev Mark Rainbow
6,513
651		 2020
£
7,164
7,164

Rev Mark Rainbow served as the church leader and received the above payments for serving in that capacity, not for serving as trustee; these payments are permitted by the charity's governing document.

7 Tangible fixed assets

Cost
Additions
Disposals
At 31 October 2020
Accumulated depreciation
Charge for the period
Eliminated on disposal
At 31 October 2020
Net book value
At 31 October 2020		 Fixtures,
fittings and
equipment
£
2,456
2,456
614
614
1,842		 Total
2020
£
2,456
-
2,456
614
-
614
1,842

8 Stock

Purchased for re-sale, at cost
Debtors
Falling due within one year:
Tax recoverable		 2020
£
34
34
2020
£
5,781
5,781

9 Debtors

10 Cash at Bank and in Hand

h at Bank and in Hand
Cash at bank with immediate access 2020
£
16,142
16,142

Page 12

GRACE CHURCH NEWTON HALL

NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 31 OCTOBER 2020

11 Creditors: liabilities falling due within one year

itors: liabilities falling due within one year
Trade creditors
Taxation and social security
Staff pension liability
Accruals		 2020
£
408
1,644
391
933
3,376

12 Pension commitments

During the period employer’s pension contributions totalling £651 were payable to defined contribution personal pension schemes.

13 Funds

During the period the movements in the charity's funds were as follows:

General Unrestricted Funds
Total Unrestricted Funds
Aggregate of funds		 Opening
balance
2020
£
-
-
-		 Incoming
resources
2020
£
33,907
33,907
33,907		 Outgoing
resources
2020
£
(13,484)
(13,484)
(13,484)		 Transfers
in the year
2020
£
-
-
-		 Gains and
losses
2020
£
-
-		 Closing
balance
2020
£
20,423
20,423
20,423

Analysis of net assets by fund

The assets and liabilities of the various funds were as follows:

ysis of net assets by fund
assets and liabilities of the various funds were as follows:
Tangible fixed assets
Stock
Debtors
Cash at bank and in hand
Creditors falling due within one year		 General
Designated
funds
funds
£
£
1,842
34
5,781
16,142
-
(3,376)
20,423
-
Unrestricted Funds		 Restricted
funds
£
-
-		 2020
£
1,842
34
5,781
16,142
(3,376)
General
funds
£
1,842
34
5,781
16,142
(3,376)
20,423
20,423

15 Transactions with related parties

During the period the charity:

a) received donations totalling £3,050 from related parties (which includes trustees, any other members of key management and anyone closely connected to them).

16 Members

Each member of the company commits to contribute if the charity is wound up an amount of £1.

Page 13

GRACE CHURCH NEWTON HALL

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE PERIOD ENDED 31 OCTOBER 2020

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities
4
Total income and endowments
EXPENDITURE ON:
Charitable activities:
5
Total Expenditure
Net income/(expenditure)
Transfers between funds
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
13		 General
Designated
2020
2020
£
£
33,845
62
33,907
-
13,484
13,484
-
20,423
-
-
-
20,423
-
-
-
20,423
-
Unrestricted funds		 Restricted
2020
£
-
-
-

-
-
-
-		 Total
2020
£
33,845
62
33,907
13,484
13,484
20,423
-
20,423
-

20,423

Page 14