THE WELCOME CHURCH, WITNEY CHARITY INCORPORATED ORGANISATION
Accounts – 31st December 2021
THE WELCOME CHURCH, WITNEY Charity Incorporated Organisation
Charity number: 1188780
Accounts – 31st December 2021
INDEX
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1-3. Report of the Trustees and General Information
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Independent Examiner’s Report to the Trustees
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Statement of Financial Activities
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Balance Sheet
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7-12. Notes to the Accounts
THE WELCOME CHURCH, WITNEY CIO
REPORT OF THE TRUSTEES
for the year ended 31st December 2021
The Trustees are pleased to present their annual report and financial statements of The Welcome Church, Witney CIO (‘The Church’) for the year ended 31[st] December 2021 .
Governance
The Church 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. During 2021, The Trust was wound up.
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 (second edition) and Financial Reporting Standard FRS 102.
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 (resigned 31 December 2021) Mr J R Brien Mr S Brown Mr K N Hubbard Mr C A Gibson Mr M Wright (appointed 13 February 2022)
THE WELCOME CHURCH, WITNEY CIO
REPORT OF THE TRUSTEES
for the year ended 31st December 2021 ( Continued)
Objectives and Activities
The purpose of the Church can be summarised as:
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(i) The advancement of the Christian faith in accordance with its Basis of Faith and
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(ii) Such other charitable purposes as shall, in the opinion of the charity trustees, put into practice the Christian faith in accordance with its Basis of Faith.
The core public activity is the provision of public worship on a regular basis. This is supplemented by groups for different ages. During 2021, the church has continued to be open for services and other ministries while limiting 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 supplement the provision of worship services through digital means. The Church has also been able to continue to provide its professional and confidential counselling service, again using remote digital connections.
In planning the activities of The Church, the trustees have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities operating for the advancement of religion.
Achievements and Performance
With the significant constraints of the Corona virus pandemic, the reach of The Church’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 partner Christian missionaries who are involved in spreading the Christian faith in different countries. This is done primarily through prayer and financial assistance. It has also continued to provide support to a number of individuals and organisations that are UK-based. This has in turn, enabled the Christian faith to be shared with individuals in this country and in some countries overseas.
Financial Review
The total income for the year was £132,715 and total expenditure on charitable activities amounted to £116,256. The statement of financial activities shows a net income from unrestricted funds of £16,834 (2020: £7,059) and a net outflow of restricted funds of £375 (2020: £175). The balance on unrestricted funds at the year-end was £285,851 and on restricted funds £869.
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, in respect of funds received for specific purposes.
The Church’s reserves at the end of the 2021 year were:
Unrestricted (general use) funds: £285,851 Restricted income funds: £869
The amount of free general reserves not invested in fixed assets at the end of the year amounted to £132,610 (2020: £116,059).
THE WELCOME CHURCH, WITNEY CIO
REPORT OF THE TRUSTEES for the year ended 31st December 2021 ( 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 Church in order to make them aware of current activities.
Approved by the trustees on 28th February 2022 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 2021.
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:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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
1st March 2022
THE WELCOME CHURCH, WITNEY CIO
Statement of Financial Activities
(including an income and expenditure account) for the year ended 31 December 2021
| 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 2021 £ £ £ 110,708 - 110,708 18,379 513 18,892 3,115 - 3,115 - - - 132,202 513 132,715 115,368 888 116,256 115,368 888 116,256 16,834 (375) 16,459 - - - 16,834 (375) 16,459 269,017 1,244 270,261 £285,851 £869 £286,720 |
Total Funds 2020 £ 94,117 14,297 3,180 - |
|---|---|---|
| 111,594 | ||
| 104,710 | ||
| 104,710 | ||
| 6,884 - |
||
| 6,884 263,377 |
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| £270,261 |
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 2021
| 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 |
2021 £ 153,241 153,241 3,504 131,471 134,975 1,496 133,479 286,720 £286,720 869 285,851 285,851 £286,720 |
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 |
These accounts were approved by the board of trustees and authorised for issue on 28th February 2022 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 2021
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 under the historical cost convention with items being recognised at cost or transaction value unless otherwise stated in the notes to these accounts.
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the UK 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 Church 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:
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The charity has entitlement to the funds;
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any performance conditions attached to the items of income have been met or are fully within the control of the charity;
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there is sufficient certainty that receipt of the income is considered probable; and
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the amount can be measured reliably.
Cash donations are recognised on receipt. Other donations are recognised once The Church 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 2021 (continued)
d) Resources Expended
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Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
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Expenditure on charitable activities includes the cost of running the church, its ministries and associated projects .
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Other expenditure represents those items not falling into any other heading.
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.
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e) Fund Accounting
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Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are unrestricted funds of the Charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for the particular areas of the Charity’s work or for specific projects being undertaken by the Charity.
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f) Tangible Fixed Assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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
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Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
THE WELCOME CHURCH, WITNEY CIO
NOTES TO THE ACCOUNTS
for the year ended 31st December 2021 (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 Welcome Church, Witney operates as a Charity Incorporated Organisation which was established by the Charity Commission on 26[th] March 2020.
3. Income from donations
| Gifts and donations Gift aid |
2021 £ 91,785 18,923 £110,708 |
2020 £ 78,107 16,010 |
|---|---|---|
| £94,117 |
Of the £110,708 received in 2021 (2020: £94,117) £nil was restricted funds (2020: £nil) and £110,708 (2020: £94,117) unrestricted funds.
4. Income from charitable activities
| Welcome Counselling Services Other church group activities Church ministries |
2021 £ 14,390 - 4,502 £18,892 |
2020 £ 10,925 2,228 1,144 |
|---|---|---|
| £14,297 |
Of the £18,892 received in 2021 (2020: £14,297) £513 was restricted funds (2028: £28) and £18,379 (2020: £14,269) unrestricted funds.
5. Income from investments
| Rental income Interest |
Unrestricted 2021 £ 3,115 - £3,115 |
Unrestricted 2020 £ 3,180 - |
|---|---|---|
| £3,180 |
THE WELCOME CHURCH, WITNEY CIO
NOTES TO THE ACCOUNTS
for the year ended 31st December 2021 (continued)
6. Analysis of expenditure on charitable activities
| Depreciation Pastoral staff costs Ministry and mission Church premises and administration costs Total |
2021 Total £ 8,043 40,615 36,629 30,969 £116,256 |
2020 Total £ 7,472 40,596 25,525 31,117 |
|---|---|---|
| £104,710 |
Of the £116,256 expenditure in 2021 (2020: £104,710), £888 was charged to restricted funds (2020: £203) and £115,368 to unrestricted funds (2020: £104,507).
7. Net income/(expenditure) for the year
| This is stated after charging: Depreciation Independent examiner's fee |
2021 £ 8,043 1,020 |
2020 £ 7,472 1,108 |
|---|---|---|
8. Analysis of staff costs and trustee remuneration and expenses
| Salaries and wages Pension costs |
2021 £ 41,737 1,509 £43,246 |
2020 £ 29,894 1,659 |
|---|---|---|
| £31,553 |
No employees had emoluments in excess of £60,000 (2020: 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 £32,500 and pension contributions of £1,509 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 (2020: £nil). They were reimbursed expenses of £15,644 during the year (2020: £4,455). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).
The total amount of donations received without conditions from trustees or other related parties was £8,250 (2020 £7,175).
THE WELCOME CHURCH, WITNEY CIO
NOTES TO THE ACCOUNTS
for the year ended 31st December 2021 (continued)
9. Staff numbers
The average monthly number of employees during the year was as follows:
| 2021 | 2020 |
|---|---|
| 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 2021 Additions Disposals As at 31 December 2021 Depreciation: As at 1 January 2021 Charge for year Depreciation on disposals As at 31 December 2021 Net book value: As at 31 December 2021 As at 31 December 2020 Debtors Other debtors |
Freehold land and buildings £ 150,000 - - |
Fixtures and fittings £ 49,494 8,538 (2,648) 55,384 21,536 5,543 (2,436) 24,643 £30,741 £27,958 2021 £ 3,504 £3,504 |
Total £ 199,494 8,538 (2,648) |
|---|---|---|---|
| 150,000 | 205,384 | ||
| 25,000 2,500 - |
46,536 8,043 (2,436) |
||
| 27,500 | 52,143 | ||
| £122,500 | £153,241 | ||
| £125,000 | £152,958 | ||
| 2020 £ 3,967 |
|||
| £3,967 |
12. Debtors
THE WELCOME CHURCH, WITNEY CIO
NOTES TO THE ACCOUNTS
for the year ended 31st December 2021 (continued)
13. Creditors: amounts falling due within one year
| Other creditors Accruals |
2021 £ 385 1,111 £1,496 |
2020 £ 287 1,384 |
|---|---|---|
| £1,671 |
14. Analysis of net assets between funds
| Tangible fixed assets Cash at bank and in hand Other net current assets/(liabilities) Total |
General Designated Restricted Fund Funds Funds Total £ £ £ £ 153,241 - - 153,241 130,602 - 869 131,471 2,008 - - 2,008 |
|---|---|
| £285,851 £- £869£286,720 |
15. Analysis of charitable funds
Analysis of movements in restricted funds
| Balance | Incoming | Resources | Funds | ||
|---|---|---|---|---|---|
| 01.01.21 | resources | expended | Transfers | 31.12.21 | |
| £ | £ | £ | £ | £ | |
| Development fund | - | - | - | - | - |
| Other restricted funds | 1,244 | 513 | (888) | - | 869 |
| Total | £1,244 | £513 | £(888) | £- | £869 |
| Analysis of movements in unrestricted funds | |||||
| Balance | Incoming | Resources | Funds | ||
| 01.01.21 | resources | expended | Transfers | 31.12.21 | |
| £ | £ | £ | £ | £ | |
| General fund | 269,017 | 132,202 |
(115,368) | - | 285,851 |
| Development fund (designated) | - | - |
- |
- | - |
| Total | £269,017 | £132,202 | £(115,368) | £- | £285,851 |