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2021-10-31-accounts

Grace Church Newton Hall

Report and Accounts Period ended 31 October 2021

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

GRACE CHURCH NEWTON HALL

COMPANY INFORMATION

FOR THE PERIOD ENDED 31 OCTOBER 2021

Trustees

Mr Daniel C. Almond

Rev Rodney J Earnshaw - resigned 18 June 2022 Mr Scott M Harder Rev Mark W Rainbow

Rev James H A Leggett - appointed 18 June 2022 Dr Andrew J B Deane (appointed 10 July 2022)

Company Secretary

Mr Scott M Harder

Governing Document

Memorandum and Articles of Association dated 2 September 2019

Company Registration Number 12242206 Charity Registration Number 1188728 Registered Office

12242206

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
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 9-14
Detailed Statement of Financial Activities with Comparatives 15

Page 1

GRACE CHURCH NEWTON HALL TRUSTEES’ AND DIRECTORS’ REPORT

REFERENCE AND ADMINISTRATIVE INFORMATION

Charity Name: Grace Church Newton Hall Company Registration Number: 12242206 Charity Registration Number: 1188728 Registered Office: Portland House Belmont Business Park Durham DH1 1TW Directors and Trustees: Reverend Mark W Rainbow (Senior Minister) Mr Daniel C Almond Mr Scott M Harder Reverend Rodney J Earnshaw (external trustee) (resigned 18 June 2022) Reverend James H A Leggett (appointed 18 June 2022) Dr Andrew J B Deane (appointed 10 July 2022)

STRUCTURE, 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 trust currently has five trustees, four of whom are members of the Grace Church Newton Hall congregation and one of whom is an external trustee and a minister at St James’s Church, Ryde, Isle of Wight.

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.

Page 2

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 normally meets at Newton Hall Community Centre. On 9 December 2021, the Church formally joined the Anglican Mission in England (AMiE).

Objectives

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

Activities

Where physical gatherings were not possible, Sunday services, mid-week groups and Junior Jivers continued online via Zoom, and as restrictions were eased, hybrid meetings were held with some members attending socially distanced services in person, with others joining on Zoom.

Page 3

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 services, 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

During the year, the congregation included an average of approximately 55 adults and 45 children. In addition, the church welcomed a number of visitors, in particular at special services such as Christmas and Easter.

Children and Youth Groups

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

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

During periods when physical gatherings were restricted, some of the children’s groups continued on Zoom.

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 partners 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 £8,795.

FINANCIAL REVIEW

The church’s income for the year was £106,974 and its expenditure was £81,310. As a result, net incoming resources for the financial period ending 31 October 2021 were £25,664.

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 £25,000, so that the church can continue to operate should income or expenses vary. At the year-end the charity held unrestricted cash of £56,487 and reserves have been maintained in excess of £25,000 to date.

Page 4

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.

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

18 July 2022

and signed on their behalf by

S Harder

……………………………

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 2021 on pages 7 to 15 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

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

Date: 20 July 2022

Page 6

GRACE CHURCH NEWTON HALL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 31 OCTOBER 2021

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
£
106,505
469
106,974
81,310
81,310
-
25,664
-

25,664
20,423
46,086		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-		 Total
Funds
2021
£
106,505
469
106,974
81,310
81,310
-		 Total
Funds
2020
£
33,845
62
33,907
13,484
13,484
-
25,664
-		 20,423
-
25,664
20,423
46,086		 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 9-15 form part of these accounts.

Page 7

GRACE CHURCH NEWTON HALL

BALANCE SHEET

AS AT 31 OCTOBER 2021

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
£
1,437
1,437
34
4,504
56,487
61,025
(16,376)
44,649
46,086
46,086
46,086
46,086
-
46,086		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
Funds
2021
£
1,437
1,437
34
4,504
56,487
61,025
(16,376)
44,649
46,086
46,086
46,086
46,086
-
46,086		 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 2021.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 October 2021 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:

S Harder

Scott M Harder

Date: 18 July 2022

Company number: 12242206

Charity number: 1188728

The notes on pages 9-15 form part of these accounts.

Page 8

GRACE CHURCH NEWTON HALL

NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 31 OCTOBER 2021

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 2021

d) Fund accounting

e) Tangible fixed assets

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		 2021
£
87,405
-
-
19,100
106,505
Total
2021
£
-
-		 2020
£
24,188
1,857
2,019
5,781
33,845
Total
2020
1,857
1,857

Page 10

GRACE CHURCH NEWTON HALL

NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 31 OCTOBER 2021

4 Income from charitable activities

Community outreach programs
5
Charitable expenditure
a
Costs incurred directly on specific activities
Salaries
Staff pension costs
Venue hire
Event costs
Conferences and training
Books
Community Outreach
Other costs
Grants payable (note 6c)
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		 2021
£
469
469
2021
£
44,904
4,308
5,064
325
842
-
408
172
56,021
20,495
76,516
1,200
1,200
1,959
428
91
420
13
684
4,794
81,310		 2020
£
62
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 £1,000 plus VAT

c Grants payable

Grants payable
Grants for UK and overseas mission
The grants to institutions in the year were:
Christchurch Claypath Durham
£5,000
Trinity Church Sunderland
£6,200
A Passion for Life
£500		 Institutions
£
11,700
11,700		 Individuals
£
8,795
8,795		 2021
£
20,495
20,495

The comparatives for the previous year are as follows:

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 2021

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 (2020: 1). Most of the charity's activities are carried out by

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

The charity's key management comprise the trustees . Total employment benefits payable to key management for the period were as follows:

Wages &
Employer
salaries
pension
contributions
Trustees:
Rev Mark Rainbow
39,236
3,908
Wages &
Employer
salaries
pension
contributions
Trustees:
Rev Mark Rainbow
6,513
651
The following amounts were charged in the previous year:		 Total
2021
£
43,144
43,144
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
At 1 November 2020
Additions
At 31 October 2021
Accumulated depreciation
At 1 November 2020
Charge for the period
At 31 October 2021
Net book value
At 31 October 2021
At 31 Octoberr 2020
8
Stock
Purchased for re-sale, at cost
9
Debtors
Falling due within one year:
Tax recoverable		 Fixtures,
fittings and
equipment
£
2,456
279
2,735
614
684
1,298
1,437
1,842
2021
£
34
34
2021
£
4,504
4,504		 Total
2021
£
2,456
279
2,735
614
684
1,298
1,437
1,842
2020
£
34
34
2020
£
5,781
5,781

Page 12

GRACE CHURCH NEWTON HALL

NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 31 OCTOBER 2021

10 Cash at Bank and in Hand

h at Bank and in Hand
Cash at bank with immediate access
itors: liabilities falling due within one year
Trade creditors
Taxation and social security
Staff pension liability
Accruals
HMRC Gift Aid Overpayment
Grant obligations		 2021
£
56,487
56,487
2021
£
1,280
699
391
1,233
8,024
4,749
16,376		 2020
16,142
16,142
2020
£
408
1,644
391
933
-

-
3,376

11 Creditors: liabilities falling due within one year

12 Pension commitments

During the period employer’s pension contributions totalling £4,308 (2020: £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
2021
£
20,423
20,423
20,423		 Incoming
resources
2021
£
106,974
106,974
106,974		 Outgoing
resources
2021
£
(81,310)
(81,310)
(81,310)		 Transfers
in the year
2021
£
-
-
-
 Gains and
losses
2021
£
-
-
-		 Closing
balance
2021
£
46,086
46,086
46,086

Analysis of net assets by fund

The 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
£
£
1,437
-
34
-
4,504
-
56,487
-
(16,376)
-
46,086
-
Unrestricted Funds		 Restricted
funds
£
-
-

-
-
-
-		 2021
£
1,437
34
4,504
56,487
(16,376)
General
funds
£
1,437
34
4,504
56,487
(16,376)
46,086
46,086

Page 13

GRACE CHURCH NEWTON HALL

NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 31 OCTOBER 2021

In the previous year 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

In the previous year, the 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 £12,950 (2020: £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 14

GRACE CHURCH NEWTON HALL

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE PERIOD ENDED 31 OCTOBER 2021

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		 2021
2020
£
£
106,505
33,845
469
62
106,974
33,907
81,310
13,484
81,310
13,484
25,664
20,423
-
-
25,664
20,423
20,423
-
46,086
20,423
Unrestricted funds		 2021
2020
£
£
-
-
-
-
-
-
-
-
-
-
-
-

-
-

-
-
-
-
-
-
Restricted		 Total
Funds
2021
£
106,505
469
106,974
81,310
81,310
25,664
-
25,664
20,423		 Total
Funds
2020
33,845
62
33,907
13,484
13,484
20,423
-
20,423
-
20,423
- 46,086

Page 15