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2020-12-31-accounts

THE WELCOME CHURCH, WITNEY CHARITY INCORPORATED ORGANISATION

Accounts – 31st December 2020

THE WELCOME CHURCH, WITNEY Charity Incorporated Organisation

Charity number: 1188780

Accounts – 31st December 2020

INDEX

THE WELCOME CHURCH, WITNEY CIO

REPORT OF THE TRUSTEES

for the year ended 31st December 2020

The Trustees are pleased to present their annual report and financial statements of The Welcome Church, Witney CIO (‘The CIO’) for the year ended 31 December 2020 .

Governance

The CIO was established as a registered charity on 26[th] March 2020 under registered charity number 1188780. It was established to receive by transfer the operations and assets of its immediate predecessor, the Welcome Evangelical Church Trust (‘The Trust’) (registered charity number 1045455). This was achieved on 31[st] December 2020. Looking forward, it is the intent to wind up the Trust in the short term.

In view of the transfer of operations of its predecessor Trust, the financial statements incorporate the income, expenditure, assets and liabilities of both the Welcome Evangelical Church Trust and The Welcome Church, Witney CIO covering the 12 months to 31[st] December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply 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 for Smaller Entities published on 16th July 2014.

Reference and Administration Details

The charity’s name is The Welcome Church, Witney.

Charity Registration Number: 1188780 Principal Address: The Welcome Church High Street Witney Oxfordshire OX28 6HL

Trustees

The Trustees and officers who served during the year and since the year end were as follows:

Mr J W Baigent Mr J R Brien Mr S Brown Mr K N Hubbard Mr C A Gibson (appointed 1[st] September 2020) Mr A E Kingston (resigned 9[th] November 2020)

THE WELCOME CHURCH, WITNEY CIO

REPORT OF THE TRUSTEES

for the year ended 31st December 2020 ( Continued)

Objectives and Activities

The purpose of the Trust can be summarised as:

The core public activity is the provision of public worship on a regular basis, incorporating people of all ages. This is supplemented by groups of different ages. Since the impact of the Corona virus pandemic in early 2020, the church was obliged to close and then significantly limit the meeting of people within the confines of its buildings, in accordance with Government guidance and regulation from time to time. It has however been possible to maintain the provision of worship services through digital means since the first ‘lock-down’ was announced. The Church has also been able to provide its professional and confidential counselling service, again using remote digital connections.

In planning the activities of the CIO, the trustees have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.

Achievements and Performance

With the significant constraints of the Corona virus pandemic, the reach of the Charity’s ministry and activity has been reduced. This having been said, limited activities servicing children and the youth have been possible, recognising the ongoing need for teaching, training, encouragement, mentoring and fellowship.

The Church has continued to support missionaries to spread the Christian faith in different countries, through prayer and financial support. It has also continued to provide support to a number of individuals and organisations that are UK-based. This support has, in turn, enabled the Christian faith to be shared with individuals in this country and overseas.

Financial Review

The total income for the year was £111,594 and total expenditure on charitable activities amounted to £104,710. The statement of financial activities shows a net income from unrestricted funds of £7,059 (2019: £46,629) and a net outflow of restricted funds of £175 (2019: £446). The balance on unrestricted funds at the year- end was £269,017 and on restricted funds £1,244.

Reserves Policy

Operating surpluses are maintained in general (unrestricted) reserves in order to fund ongoing operational activity and asset replacement. Restricted reserves are maintained to fund current or future ministry activities, receiving funds for specific purposes.

The Trust’s reserves at the end of the 2020 year were:

Unrestricted (general use) funds: £269,017 Restricted income funds: £1,244

The amount of free general reserves not invested in fixed assets at the end of the year amounted to £116,059 (2019: £105,897).

THE WELCOME CHURCH, WITNEY CIO

REPORT OF THE TRUSTEES

for the year ended 31st December 2020 ( Continued)

Structure, Governance and Management

The Welcome Church Witney operates under a constitution and a church handbook. The Church’s leadership is composed of Elders, including the Pastor of the Church. Elders are supported in their responsibilities by Ministry Team Leaders, who are appointed to oversee particular activities of the Church. The Pastor acts as chair person to the Elders and to business meetings of the members of the Church. Elders also act as trustees of The Welcome Church, Witney CIO. Elders and therefore trustees are appointed by the existing Elders, and confirmed by members during a subsequent members’ business meeting.

Appointment of Trustees

New trustees when elected are given details of the background of the Trust and the Church in order to make them aware of current activities.

Approved by the trustees on 18th February 2021 and signed on its behalf by:

C A Gibson ………………………………….. Trustee

Witney

THE WELCOME CHURCH, WITNEY CIO

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

I report to the trustees on my examination of the accounts of The Welcome Church, Witney CIO for the year ended 31st December 2020.

Responsibilities and Basis of Report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent Examiner’s Statement

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

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

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

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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.

A P Williams BSc FCCA A J Carter & Co Chartered Accountants

22b High Street Witney Oxon OX28 6RB

24th February 2021

THE WELCOME CHURCH, WITNEY CIO

Statement of Financial Activities

(including an income and expenditure account)

for the year ended 31 December 2020

Note
Income from:
Donations (and legacies)
3
Charitable activities
4
Investments
5
Other
Total incoming resources
Expenditure on:
Charitable activities
6
Total expenditure
Net income/(expenditure) and net
movement in funds for the year
Transfer between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted Restricted
Total
Funds
Funds
Funds
2020
£
£
£
94,117
-
94,117
14,269
28
14,297
3,180
-
3,180
-
-
-
111,566
28
111,594
104,507
203
104,710
104,507
203
104,710
7,059
(175)
6,884
-
-
-
7,059
(175)
6,884
261,958
1,419
263,377
£269,017
£1,244
£270,261		 Total
Funds
2019
£
101,666
18,869
3,585
15,910
140,030
93,847
93,847
46,183
-
46,183
217,194
£263,377

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

All income and expenditure derives from continuing activities.

The notes on pages 7 to 12 form part of these financial statements

THE WELCOME CHURCH, WITNEY CIO

BALANCE SHEET as at 31st December 2020

Note
Fixed assets
Tangible assets
11
Total fixed assets
Current assets
Debtors
12
Cash at bank and in hand
Total current assets
Liabilities
Creditors falling due within one year
13
Net current assets
Total assets less current liabilities
Total net assets
14
The funds of the Charity
Restricted income funds
15
Unrestricted income funds
15
Total unrestricted funds
Total charity funds		 2020
£
152,958
152,958
3,967
115,007
118,974
1,671
117,303
270,261
£270,261
1,244
269,017
269,017
£270,261		 2019
£
156,061
156,061
1,625
111,137
112,762
5,446
107,316
263,377
£263,377
1,419
261,958
261,958
£263,377

These accounts were approved by the board of trustees and authorised for issue on ……………. 2021 and are signed on their behalf by:

C A Gibson

...................................................... Trustee

The notes on pages 7 to 12 form part of these financial statements

THE WELCOME CHURCH, WITNEY CIO

NOTES TO THE ACCOUNTS

for the year ended 31st December 2020

1. Accounting Policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of Preparation

The 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) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Assets and liabilities are initially recognized at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Public Benefit Entity

The Welcome Church, Witney CIO constitutes a public benefit entity as defined by FRS 102.

Going Concern

At the time of approving the accounts, the Trustees have a reasonable expectation that the CIO 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 accounts.

b) Income Recognition Policies

Items of income are recognised and included in the accounts when all of the following criteria are met:

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

c) Donated Services and Facilities

In accordance with the Charities SORP (FRS 102) the general time of volunteers is not recognised in the accounts.

THE WELCOME CHURCH, WITNEY CIO

NOTES TO THE ACCOUNTS

for the year ended 31st December 2020 (continued)

d) Resources Expended

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both its costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

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:

Freehold land and buildings 2% of buildings on a straight-line basis Fixtures and fittings 10% - 20% on a straight-line basis

The gain or loss arising on the 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.

g) Debtors

Trade and other debtors are recognised at the settlement amounts due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.

h) Cash at Bank and in Hand

THE WELCOME CHURCH, WITNEY CIO

NOTES TO THE ACCOUNTS

for the year ended 31st December 2020 (continued)

i) Creditors and Provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

j) Pensions

The Charity operates a defined contribution scheme, the assets of which are held outside the Charity.

2. Legal Status of the Charity

The CIO was established as a registered charity on 26[th] March 2020 under registered charity number 1188780. It was established to receive by transfer the operations and assets of its immediate predecessor, the Welcome Evangelical Church Trust (registered charity number 1045455). This was achieved on 31[st] December 2020.

3. Income from donations

Gifts and donations
Gift aid		 2020
£
78,107
16,010
£94,117		 2019
£
83,364
18,302
£101,666

Of the £94,117 received in 2020 (2019: £101,666) £nil was restricted funds (2019: £nil) and £94,117 (2019: £101,666) unrestricted funds.

4. Income from charitable activities

Welcome Counselling Services
Other church group activities
Church ministries		 2020
£
10,925
2,228
1,144
£14,297		 2019
£
10,032
762
8,075
£18,869

Of the £14,297 received in 2020 (2019: £18,869) £28 was restricted funds (2019: £2,463) and £14,269 (2019: £16,406) unrestricted funds.

5. Income from investments

Rental income
Interest		 Unrestricted
2020
£
3,180
-
£3,180		 Unrestricted
2019
£
3,530
55
£3,585

THE WELCOME CHURCH, WITNEY CIO

NOTES TO THE ACCOUNTS

for the year ended 31st December 2020 (continued)

6. Analysis of expenditure on charitable activities

Depreciation
Pastoral staff costs
Ministry and mission
Church premises and administration costs
Total		 2020
Total
£
7,472
40,596
25,525
31,117
£104,710		 2019
Total
£
5,212
32,738
35,297
20,600
£93,847

Of the £104,710 expenditure in 2020 (2019: £93,847), £203 was charged to restricted funds (2019: £2,909) and £104,507 to unrestricted funds (2019: £90,938).

7. Net income/(expenditure) for the year

This is stated after charging:
Depreciation
Independent examiner's fee		 2020
£
7,472
1,108		 2019
£
5,212
990

8. Analysis of staff costs and trustee remuneration and expenses

Salaries and wages
Pension costs		 2020
£
29,894
1,659
£31,553		 2019
£
31,049
1,076
£32,125

No employees had emoluments in excess of £60,000 (2019: Nil). Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds.

During the year, one trustee (or any persons connected with them) received remuneration of £10,833 and pension contributions of £658 from the Trust in respect of services related to the mission of the church, as opposed to services as trustees.

With this exception, the charity trustees were not paid, nor received any other benefits from employment with the charity in the year (2019: £nil). They were reimbursed expenses of £4,455 during the year (2019: £1,016). No charity trustee received payment for professional or other services supplied to the charity (2019: £nil).

The total amount of donations received without conditions from trustees or other related parties was £7,175 (2019 £13,890).

THE WELCOME CHURCH, WITNEY CIO

NOTES TO THE ACCOUNTS

for the year ended 31st December 2020 (continued)

9. Staff numbers

The average monthly number of employees during the year was as follows:

2020 2019
Number Number
2 2

10. Related party transactions

There were no further related party transactions that need to be disclosed.

11. Tangible fixed assets

Cost:
As at 1 January 2020
Additions
Disposals
As at 31 December 2020
Depreciation:
As at 1 January 2020
Charge for year
Depreciation on disposals
As at 31 December 2020
Net book value:
As at 31 December 2020
As at 31 December 2019
12.Debtors
Other debtors		 Freehold
land and
buildings
£
150,000
-
-		 Fixtures
and fittings
£

45,125

4,369
-

49,494

16,564

4,972

-

21,536

£27,958
£28,561
2020
£
3,967
£3,967		 Total
£
195,125
4,369
-
150,000 199,494
22,500
2,500
-		 39,064
7,472
-
25,000 46,536
£125,000 £152,958
£127,500 £156,061
2019
£
1,625
£1,625

THE WELCOME CHURCH, WITNEY CIO

NOTES TO THE ACCOUNTS

for the year ended 31st December 2020 (continued)

13. Creditors: amounts falling due within one year

Other creditors
Accruals
Analysis of net assets between funds
Tangible fixed assets
Cash at bank and in hand
Other net current assets/(liabilities)
Total		 General
Designated
Fund
Funds
£
£
152,958
-
113,763
-
2,296
-		 2020
£
287
1,384
£1,671
Restricted
Funds
£
-
1,244
-		 2019
£
165
5,281
£5,446
Total
£
152,958
115,007
2,296
£269,017
£-		 £1,244 £270,261

14. Analysis of net assets between funds

15. Analysis of charitable funds

Analysis of movements in restricted funds

Balance Incoming Resources Funds
01.01.20 resources expended Transfers 31.12.20
£ £ £ £ £
Development fund - - - - -
Other restricted funds 1,419 28 (203) - 1,244
Total £1,419 £28 £(203) £-
£1,244
Analysis of movements in unrestricted funds
Balance Incoming Resources Funds
01.01.20 resources expended Transfers 31.12.20
£ £ £ £ £
General fund 261,958
111,566		 (104,507) - 269,017
Development fund (designated) - - - - -
Total £261,958 £111,566 £(104,507) £-
£269,017