Registered Charity number 1193456 FRINTON FREE CHURCH A Charitable Incorporated Organisation Annual Report and Unaudited Financial Statements For the Year Ended 31 March 2024
FRINTON FREE CHURCH CONTENTS Pages Legal and adminislfalive informalion Reporl of Ihe Trustees Independenl Examir)er's report Slalemenl of financial activities 12 Balan sheet Note5 lo Ihe financial statements
FRINTON FREE CHURCH LEGAL AND ADMINISTRATIVE INFORMATION Charity Registration Number 1193456 Adminislration Address 24 Connaught Avenue Frinton on Sea Essex C013 9PW Phone 01255 679585 e4nail offI@frInt0nfvee.corn frintonfree.com Treasurer S Bell Secretary M Betteridge (Resigned 13 June 20241 S Chandiwana (Appointed 13 June 2024) Bankers Lloyds Bank PLC Victoria {309950) PO Box 1000 BX1 1LT Sollcltors Anthony Collins Solicttors 134 Edmund Street Bimiingham B3 2ES Independent Examiner Tim O'ConTror ACA FCCA DChA Scwtton Bland Limited 820 The Crescent Colchester Business Park Colche5ter C04 9YQ
FRINTON FREE CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Frinton Free Church changed its legal fom from a unincorporated charity lo a Charitable Incorporated Organisation (CIO) on 1st April 2023. This has been accounted for in line with The Charities Slalement of Recommended Practice {SORPI {FRS 1021 with the accounls being prepared under merger accounting. The comparatives therefo show the combined results of both the unincorporated charity and the newly incorporated CIO, where the CIO results for 2023 were nil. Frinton Free Church, a150 knovm as The Free., is affiliated to the Baptist Union of Great Britain. Our Vision is that knte see a growing crowd. excited by God. becoming disciples and bringing blosslng". This is the church we believe God has called us to be. Our Purpose is in 'making every moment counl...to see live$ transfomied by Jesus" We want to seize every opportunity to show everyone just how much they are loved and valued by God and to see them join that growing crowd of people who are excited by all that he has for them! We are a community that values: Cuhivating Disciples - Through worship, prayer and scripture Breaklng New Ground - As pioneers and risk-takers wlh God Renewing Wellbeing- Through encounters with God's shabm pea Giving Generously - In response to God'5 overwhelming gra to us Belng God's Church- Wherever We the- We all have a fronlline The activities of The Free have provided and continue to provide public benefit with opportunities for spiritual, physical, intellectual. social and culluraS development and they reach out into the heart of the local and wider community. Review of the past year We continued our pattem of services, vthich is 10am Celebration. 5.'30pm café church. and 7pm Thrive. We remain committed lo producing Sunday Online, which subscribers lo our YouTube channel can access. DVD copies contsnue to be produced each week for those who are still unable to attend and slTuggle with online technology. We continued with our Hub of Hope as we value seeing people's mental, emolional and spiritual wellbeing renewed. Our groups are safe and supportive spaces where it's OK not lo be OK and where people can grow and flourish. Various well-being groups were setup post- pandemic, and this continued to make a name for itself. There are named groups- Oasis Community Café, which has been running for years. Dementia Café and Rersew Well-being. Specialist support groups,. AA, NA. Breast Cancer support. Survivors Of Bereavement through Suicide ISOBSI and Christians Against Poverty ICAP). Creative and Sports groups., Table Tennis. Walking Group. Arts & Crafts and Crochet group. In the autumn and winter, we ran our Meals Maller initiative again. to offer a wami space and free meal to those who were struggling with the rising cost of living. We regularly had about 15-20 guesls benefitting from a meal and the company. every Friday from November to March. We are grateful to Maureen Hodgès and the leam for holding this together.
FRINTON FREE CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Review of the past year (continued) Oasis Community Café is a premises attached lo Frinton Free Church and run by a team of 30+ volunteers whose desire is lo serve God and their community. Oasis is nol only a building rt is also aclivily, ideas, community, art, its people. From Art Gallery, coffee. and snacks to Renew and Refresh Prayer space, Book club, Breast Cancer Support Group. Kid's Clubs, Crochet, Craft and Lace making groups. Alpha courses and much more. Oasis is not exactly a community space and not exactly a coffee shop but more an evolving idea. a way of doing things. The café is open Monday. Tuesday. Thursday, Friday and Sunday momings. serves up to 100 guests per day and people can pop in for free Wi-fi. coffee and snack. read the newspaper or their book. or enjoy one of our activities. find someone for a chat, meel with friends, catch up on work or take time to see the latest art exhibition. Our ministry partnership of hosting a school on OUT premises continues. although this has been renamed to Acom Allernative PfOViSlOn. In July 2023, we re-elected Jane Keeys. Simba chandana. Adam Hamer. Paul Watkins, Steve Bell and Mark Betteridge as Trustees. This was in line with our new constitution that we re-elect Irustees at the first Annual Church Members Meeting of the new CIO. Al the same meeting we elected Natslte Harris as an additM)nal Trustee. In September we informed the church that Mark Betteridge woukl be stepping down from his role as Operations Managef, after 7 /2 years in the role. Mark and his wife Karen had decided to move to Yorkshire lo be closer to famity. We imrnediately began the search for a new Ops Manager and after an interview and seWion process. Jonathan Wrtght was appointed to Ihe role. to begin in January 2024. In November 2023. the church received the following leadership proposal=_ Folknving the completion of the transfer of the assets. liabilities and activFties of the Frinton Free Church (charity number 1131856) {1he Unincofporated Church-) lo Frinton Free Church (charity number 1193456) (Ihe CIO"), the Unincorporated Church shall be dissolved- and The charity trustees of the CIO be authorised lo.. appty to register the incorpofation on the Register of Mergers on behalf of the Unincorporated Church and the CIO .' and make any additional arrangements necessary for the Unincorporated Church to be removed from the Register of Chartlies This proposal was voled on and carried. The merger was subsequently registered on 4th April 2024 and the Unincorporated Church removed from the regisler of Charities. In November 2023, we also elected the following Ministry Leaders.. Rob and Rochelle Rouse for Marriage.. Dee Lolley and Jenny Procler for Women's Ministry., Pete Greene for Men's Ministry,. Vicky Bell for Connect Groups,. Dan Thurston for Tech Team; and Steve and Sue Bridge for Global oUt8¢h Team.
FRINTON FREE CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Review of the past year (continued) In February 2024. Mark Stubbs stepped dovm from his role as an Elder, and Steve Lane was elected as Ministy Leader for the Hosting Team. Membership" Over the year there were 35 applications for membership. Following deaths and people resigning membership. we ended the year with a membership of 441. We rejoice that 14 people were baptised during the COLbrse of the year. During the year, we also raised monies for olhef charities. For our Easter 2023 offering people gave £6,220.39 for the Chandwana Memorial Foundalion {CMFI lo support some children in Zimbabwe by providing School fees for the year ahead. For our Haryesl offering, people gave £3,854.20 for The Tendring Tool Refurb project, and we also donated food to Walton Food Bank. For Ouf Christmas Offering people gave £4,757.65 for Beacon House in Colchesler. For our Easter 2024 offering people gave fof the ministry of The Light College. By the end of the financial year £1,344.40 had been given. but the monies had not been paid over as the fund was still open at this point. Structure, governance and management Reseryes The unreslricted funds provide finance for the prOpertS held within designated funds and also provide the wherewithal for the Church to meet ils financial obligations when they fall due. The Trustees intend lo maintain funds that are neither restricted. designated or not financing fixed assets at no more than six months nomal expenditure. Risk Management The organisation of the Church is constantly monitored by the Trustees lo guard against risks Ihat may be present in organisations dependent lo a large extenl on the efforts of volunteers. The fact that those volunteers have the interests of the Church uppermost gives automatic mitigation lo the perceived risk. Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities = Slalement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102} and the Financial Reporting Standard applicable in Ihe United Kingdom and Republic of Ireland {FRS 1021 and the Charities Acl 2011 and UK Generally Accepted Practice and the accounting policies sel out in the notes lo the financial statements.
FRINTON FREE CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Trustees and The Court of Elders The Trustees, usualty meet every two months. manage the organisation of Ihe Church and temporal affairs together with the Ministry Leaders. The Court of Elders, who usually meet monthly. have responsibility for the spiritual aspect of the Church's work. Minislers attend the meetings as do the Church Secretary and Treasurer. On Ihe 1 April 2023 the Court of Elders from the unincorporated church were transferred over lo the new Charitable Incorporated Organisation. During the year the following We members of the Court of Elders: Minislers Elders Rev M Massey Rev S Bales J Hartnori C Heffer M Stubbs M Wall M Betteridge {ex officio to 1310612024) S Bell (ex officiol (to 0410212024) Subsequently to the year end, R Rouse and S Chandrwana (ex officio) were appointed on 1310612024. During the year the following were Trustees of the Charity: Trusteos Rev M Massey Rev S Bates S Bell M Betteridge (to 1310612024) S Chandiwana A Hamer J Keeys P Walkins N Harris (from 2010712023) The Trustees and Elders are elecled by the Church meeting which has the final authority in all matters relating to the lrfe of the Church. The key management personnel were made up of Rev M Massey. Rev S Bates. M Betteridge (to 31101120241 and J Wright (from 0210112024). Trustees Recruitment, Inductlon and Tralnlng When a new Twstee is required candidates are identified by the remaining Trustees from among the Church members for Trustees and extemally for Ministers. Twslees are sought wherever possible who have the appropriate qualifications and experience. The induction programme for new TTUStee5 is an infomial process through discussion wilh the Trustees.
FRINTON FREE CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Public Benefrt In setting the Church's objectNes The Trustees have given carefvl consideration to the Charity Commission's general guidance on public benefrt. In doing so The Trustees have complied with their duties in Ihis area as sel out in Section 4 of the Charits"es Act 2011. Plans for the year ahead A Discipleship Pathway We believe that there is always a next step for disciples of Jesus to take. These steps help us to be with him. leam his teachings. to become more like him and to carry on his work in the worfd. During the year we want to focus on developing this Discipleship Pathway lo make it clearer for each of us to see what our nexi slep of spiritual formation might be. This will include a series of short "Essenlial Disaple. courses booking at prayer. bible reading, givin9, serving elc. Church Gmwlh God's Church is growing at The Free! We can all see Ihis on Sundays and also during the week. This is wonderful, but now is the time to slop and seek God's guidance. What is He saying to us? What does He want us to learn, and what might He wanl us lo do? We shouldn't stifle this growth, bLtI instead see God'5 Kingdom continue lo flourish. We want lo give time and space this year to seek God, listen to Him and perhaps begin to move where He is leading us. Building Project During the coming months we shall present a plan to improve the situation of the Large Hall. the storage area and the small kitchen. These areas are used by many from our community and have been somewhat neglecled when it comes to refurt)ishment. It is our aim to bring these areas up lo Ihe same standard as Oasis and No.4 Youth Centre. by redesigning them to bring about a far belter environment for all those who use them. Responsibilitios of Trustees for the financlal statements The Church's Trustees a responsible for preparing the Trustees, Report and Financial Statements in accordan wilh applicable law and regulations. The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year in accordan wilh United Kingdom Generally Accepted Accounting Practice {United Kingdom Accounting Stsndafds and applicable lawl. The Trustees must not approve the financial statements unless Ihey are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources arid application of resources. induding the income and expenditure, of the charity for that period. In preparing these financial statements. the Tnjstees are required to: select suitable accounting pokncies and Ihen apply them consistently: observe Ihe methods and principles in the Charities SORP..
FRINTON FREE CHURCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 make judgements and estimates that are reasonable and prudent: state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in Ihe financial 5talements- and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Church will continue in operation. The Trustees are responsible for keeping sufficient accounting record5 which disclose with reasonable accuracy al any time the financial position of the Church and enable them lo ensure that the financial statements comply with the Charilies Act 2011. the Charity {Accounls and Reports) Regulations 2008 and the provision5 of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Signed on behaw of the Trustees S Chandiwana Secretary Approved by the Trustees on O I
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FRINTON FREE CHURCH I report to the trustees on my examination of the financial statements of Frinton Free Church {'Ihe charity'l for the year ended 31 March 2024 which comprise the Statement of Financial Activrties. the Balance Sheet and related notes. This report is made solely lo the charrty's trustees. as a body. in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state lo the charity s trustee5 those matters l am required to stale to them in this report and for no other purpose. To the fullest extenl perned by law, I do not accept or assume responsibility to anyone otheT than the charity and Ihe charity's trustees as a t. for my work. for this report. or for the opinions I have forrned. Responslbilities and basis of report As the trustees of the charity you are responsible for the preparation ofthe financial statements in accordance wth the requirements of the Chartties Act 2011 {'the Act,). I report in respect of my examination of the charity's financial statements carried out under section 145 of the Act and in carying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515llbl of the Act. An independent examination does not involve galhering all the evidence that would be required in an audit and consequently does not cover all the matter5 thal an au(Jitor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the financial slalemenls present a 'true and fair, view and my report is limited to those specific matters set out in the independent examiner's statement.
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FRINTON FREE CHURCH Independent examiner's stalement Since the CIO'S gross income exceeded £250.000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualified lo undertake the examination because l am a member of ICAEW and ACCA. which are two of the listed bodies. I have compleled my examination. l ¢onfimi thal no material matters have come to my attention in connection wilh the examination giving me cause lo believe that in any material respect=
accounting records were not kept in respect of the charity as required by section 130 of the Act.. of the financial statements do not accord with those records" or the financial slalements do not comply with the applicable requirements concerning the form and content of accounts sel out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounls give a 'true and fair view which is not a matter considered as part of an independent examination. I have no concems and have come across no other matters in connection with the exarnination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. TIM O'CONNOR ACA FCCA DChA Scrutton Bland Limited 820 The Crescent Colchester Business Park Colchester Essex C04 9YQ Date..
FRINTON FREE CHURCH STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 Unrestri¢ted funds Restricted Genoral Designated Funds Total Funds Combined 2023 In¢ome from: Donations and legacies Donations Offerings Income tax fundS Gifts Legacies Charitable activities Grants Groups and activities income Church goods and serVIS Local outreach income Investment income Rents Received Bank and building society interesl 29,236 278,604 48,619 110 7.224 645 29.881 278.604 49.218 8,198 7,224 24,557 299,126 62.585 28,296 3,250 599 8.088 3,448 14,077 4.884 941 11,901 4,505 2.926 11.901 4.505 2,926 15,483 15,483 13,113 19 Total income 398.613 9.332 407.945 454,296 enditure on: Charitable activities Groups and activities costs Ministry Global outreach Local outreach Building maintenance Heat, light and water Small plant and equipment Insurance Cleaninglcaretaking 10,080 149.711 27,583 9.397 16.938 36.340 7.689 4.136 37.964 679 18.097 23.279 1,600 10,995 65.610 3,060 1,243 10.080 162.027 27.583 9.397 19.908 36,340 7.972 4.136 37.964 704 18,097 24,539 1,600 12,795 65,610 3,060 1,243 12,062 129,757 27.414 13,905 7,153 27,721 4.140 4.579 25,296 1,407 13,093 23,378 1,753 11.811 62,843 2,880 1,157 3,711 12.316 2.970 283 25 Fees and subscriptions Catering Donations Depreciationlamortisation Adminislralion Independent examinerfs fee Church goods and services Mortgage interest Defined benefit pension scheme Interest charge 1,260 1,800 755 Total expenditure 424,401 1,800 16,854 443.055 374.815 10-
FRINTON FREE CHURCH STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 Unrestricted funds Restri¢t¢d General Designated Funds Total Combined Funds 2023 Net (expenditure)lincome before Revaluations {25.788) (1.800) (7.522) (35.110) 79,481 Gain on investment property Revaluation 108.312 108.312 Net {expenditUreincOme (25.788) 106.512 (7,522) 73,202 79,481 Transfers beeen funds Net movements in funds Before other recognised galns (25,788) 106.512 (7,522) 73,202 79,481 Other recognised gains Actuarial gains on defined benefit Pension scheme 24,762 Net movements In funds (25.788) 106.512 (7,522} 73.202 104,243 Reconclliation of funds Total funds brought forward 121,571 507.275 10.133 638.979 534,736 Total funds carried forward £ 95,783 £ 613.787 £ 2.611 £ 712,181 £ 638.979 Represented by: Tangible fixed assets Current assets Total liabilities 19.174 100,569 123,960) 613.787 632.961 518.608 103,180 142.932 123,960) 122.5611 2.611 £ 95.783 £ 613.787 £ 2.611 £ 712.181 £ 638,979 See note 13 for the comparative Statement of Financial Activities analysed by fund. Transfer on Incorporation Frinton Free Church changed its legal fom from a unincorporated charity to a Charitable Incorporated Organisation (CIO) on Isl April 2023. This has been accounled for in line with The Charities Statement of Recommended Practice ISORP) (FRS 1021 wilh the accounts being prepared under merger accounting. The comparatives therefore show the combined results of both the unincorporated charity and the newly incorporated CIO, where the CIO results for 2023 were nil. 11
FRINTON FREE CHURCH STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 Continuing operations All incoming resources and resources expended derive from continuing activities. Total recognised gains and losses The statement of financial activities includes all gains and losses recognised in the year. 12-
FRINTON FREE CHURCH BALANCE SHEET AS AT 31 MARCH 2024 Combined 2023 Notes 2024 Fixed assets Tangible assets Investment property 21a) 21b) 107.961 525.000 143,608 375,000 632,961 518.608 Current assets Cash at bank Current accounts Savings account 85.132 119,973 11.001 937 270 10,751 Cash in hand Building society deposits Sundry debtors 2.256 270 15.522 103,180 142.932 Liabilities Creditors: amounts falling due within one year Sundry creditors Deferred income 20,560 3.400 16,061 3,100 23.960 19,161 Net current assets 79.220 123,771 Total assets less current liabillties 712,181 642,379 Creditors". amounts falling due after more than one year Deferred income 3,400 Total net assets £ 712.181 £ 638,979 13-
FRINTON FREE CHURCH BALANCE SHEET AS AT 31 MARCH 2024 Combined 2023 2024 The funds of the charity Restricted funds Unrestricted funds". Designated funds General charitable funds 2.611 10.133 613.787 95.783 507,275 121.571 Total charity funds £ 712,181 £ 638.979 Approved by the Twstees on and signed on their behalf by S Bell Treasurer S Chandiwana- Secretary 14-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES a) 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 IFRS 1021 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. The financial statements have been prepared to give a 'lrue and fair. view and have departed from the Charities (Accounts and Reports) Regulations 2008 only lo Ihe exlenl required to provide a 'true and fair view,. This departure has involved following Accounting and Reporting by Charities = Stalemenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 (Second Edition) rather than the Accounting and Reporting by Charities.. Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. Frinton Free Church changed ifs legal fonn from a unincorporated charity to a Charitable Incorporated Organisation (CIO) on 1st April 2023. This has been accounted for in line with The Charities Statement of Recommended Practice (SORP) IFRS 102) with the accounts being prepared under merger accounting. The comparalives therefore show the combined results of both the unincorporated charity and the newly incorporaled CIO, where Ihe CIO results for 2023 were nil. The finanal statements have been prepared under the historical cost convention. The financial statements include all transactions, assets and liabilities for which Ihe Church is responsible in Law. They do not include the accounts of church groups that owe their main affiliation to another body. nor those that are informal gatherings of church members. The CIO constitutes a public benefft entity as defined by FRS 102. The trustees consider that there are no material uncertainties about the CIO ability to continue as a going concern. The financial stalemenls a rounded to the nearest £1 and are prepared in steding. The following principal accounting policies have been applied". b) The policy related lo capital expenditure and deprecbation is slated in the notes on fixed assets and investment properties. c) Donations including associated tax credits and legacies are recognised when the Church is advised of the certain amount re•vable. d) Grants reNable are recognised when the Church is advised of amounts to be received. Granls payab are recognised when the commitment is made. 15-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES- (continued) el Direct charitable expenditure cornprises costs incurred in Ihe day lo day maintenance of the Church's propety. the costs of Ministry ar¢d Mission and supporting these acliviti'es. Non charitable expenditure comprises costs of administering the Church, financial obligations and other costs not directly connected with Evangelism. g) The income and expenditu of the various aclivities of the Church that hold separate funds has been included in the financial statements. The individual accounts for each activty are available as a memorandum accounl oulside the financial statements. h) The Charitable incorporated organisation qualifies as a small charity as defined in the Charities SORP (FRS1021 and as such is exempt from preparing a Statement of Cash Flows. The Church makes payments into defined contribution pension schemes on behalF of qualtfying staff. The assets of the schemes are held separately from those of the Church. The amount charged to the statement of financial activities of £10,909 {2023 '. £8.9801 represents the contributions payable for the year. Pension costs are allocated lo activities in proportion to the related slaffing costs incurred and are wholly charged to unrestricted funds. Under the currenl Recovery Plan dated 30 September 2020. deficiency contributions are payable until 30 June 2026. These contributions were broadly based on the employer's membership at 31 December 2014 and increased annually in line with increases lo Minimum Pensionable Income as defined in the Rules. On 30 June 2022 the Baplisl Pension Scheme signed an agreement with the insurance company Just Group I'Just") to secure DB Plan Members. pension benefits. Just are now providing financial backing for all pensions provided through Ihe Scheme's OB Plan and following this Iransaclion, the Scheme no longer has a shorttall. An updated Recovery plan was then signed in August 2022 under which recovery conlribulions from each participating employer in the DB plan reduced to £1 per monlh from August 2022. During the year the Church paid £12 (2023.. £1.9931 in deficiency conlribulions. Restricted funds exist when funds are raised or donated for a specific purpose such as propety purchase or special appeals. All other funds arising from activities of the Church are unreslricted, however the Church has designated part of these funds for specific purposes. The aim and use of each designated fund is detailed in the notes lo the financial statements. J) k) The Church is a charity within the meaning of the Charrties Act 2011 and as such is a charitable inwrporaled organisalion within the meaning of Part 11, Corporation Tax Act 2010. Accordingly the Church is potentially exempt from taxation in respect of income or gains received within categories covered by Part 11, Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Acl 1992 to the extent that such income or gains a applied exclusivety to its charitable purposes. 16-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES- (¢ontinuodl Le9acies are accounted for once the church is enlilled to the legacy. Entitlement is the earlier of the church being notified of an impending distribution or the legacy being received. Financial instruments are classified and accounted for. according to the substance of the contractual arrangement. as either financial assets or financial liabilities.. Short term debtors (financial assets) are measured at Ihe transaction price. Short terrn creditor5 and loans (financial liabilities) are measured al the transaction price. Long lemi debtors and credttors are discounted. where required, and the discounting adjustment would be material. n> After reviewing the entity's forecasts and projections. the Charitable incorporated organisation has a reasonable expectation that the enlity has adequate resources to continue in operational existence for the foreseeable future. The entity therefore cofllinues to adopt the going concem basis in preparing its financial statements. FIXED ASSETS 2(a) TANGIBLE ASSETS Fixtures, Freehold property fittings and equipment Oasis No4 signated Funds- Total Cost At 1 ApTiI 2023 Addilion Transfer 75,000 126.575 109.912 311.487 18,836 18,836 163,288) 163,288) At 31 March 2024 75,000 63.287 128,748 267,035 Depreciation At 1 April 2023 Charge for the year Depreciation on Transfers 26.100 900 43.200 900 98.579 167.879 10,995 12.795 (21.600 (21.600) At 31 March 2024 27.000 22,500 109,574 159.074 Net book values At 31 March 2024 £ 48,000 £ 40.787 £19,174 £ 107.961 At 31 March 2023 £ 48,900 £ 83.375 £ 11.333 £ 143,608 17-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 2{a) TANGIBLE ASSETS - (conlinued) All fixed assets are for use in pursuing the chantable objectives of the Church. Up to 1999, the policy of the Church had been to Vlte off capital expenditure as incurred. To compfy with the SORP the Church has now capitalised, al cost. major expenditure on property since 1994 and on fixtures, fittings and equipment from 2000, on the basis of cost over £3,500. Amortisalion is provided over 50 years on the value of the buiklings comprised in freehold propety stsrting in the year of purchase. Depreciation is provided at 10% per annum on cost of fixtures, fittings and equipment lo write assets off over 10 years. The Church first acquired property in Frinton on Sea in 1899. Up to 1993 the costs of acquisitions were £2,471. bul there is no record of the costs of buildings erected on land owned by the Church. The insured values of the freehold property owned by the Church. induding the investment properties, was £7.641.381 during the year (including Ihe insurance of property capilalised al cost £75.0001. The flat above No 4 is cJJrrently being let and generaling renlal income, this is the long term intention of the church and on that basis has been reclassified as an Investment Propety in 2024 and the fair value of the rented part of the building is included within Investment Properties. The freehold property of the Church is registered in the name of the Baptist Union Corporation Ltd as Custodian Trustee. The condition of the fixed assets owned by the Church is kept constantly under review by the Trustees. 2{b) INVESTMENT PROPERTIES No.4 Flat Wittonwood Road Total Valuation Al 1 April 2023 Transferred from freehold property Revaluation 375,000 375,000 41,688 108.312 41,688 108,312 At 31 March 2024 £ 150.000 £ 375,000 £525.000 The investment properties are carried at fair value, this has been deteined by an internal valuation. No depreciation is provided, in the opinion of the trustees, Ihis is necessary in order to give a Ifue and fair view of the financial position of the charity. Changes lo fair value are recognised on the Statement of Finanual Activities. 18-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 DEBTORS Combined 2023 2024 Income lax refund Other debtors 9,966 5.556 5.855 4.896 £ 15.522 £ 10,751 4 CURRENT LIABILITIES Comblned 2023 2024 Accruals Social security Trade credilors The Light College 15,760 3,456 13.080 2,978 1,344 £ 20.560 £ 16,061 5 MORTGAGE 2024 2023 Mortgage outstanding as at 31 March 2023 Less . Amount repaid in the year 66.942 {66.942} Mortgage outstanding as at 31 March 2024 The mortgage was oblained to purchase a property on Wittonwood Road, which was under shared ownership until Augu512013, from which date the Church look over full ownership. The mortgage was advanced by Santander {formerty Abbey Nationall and amounted to £150,000. The loan was repayable over 25 years by instalmenls. The security on the mortgage was over the deeds of Wittonwood Road. The church decided lo repay the mortgage early from the general funds on 31 March 2023. 19-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 6 RESTRICTED FUNDS Balance Non capital Transfer at Incoming resources between 01.04.23 resources expended funds Balancè at 31.03.24 Men's Ministry Oasis l No4 Renovations Meals Matter Compassion fund Other funds 645 645 2,970 1,594 5,388 181 2,970 1.229 11,982 673 751 7,107 829 1,116 513 337 £ 10.133 £ 9.332 £ 16.854 £ 2.611 The Oasis l No4 Renovatsons fund and the Men's Ministry fund relate lo gifts Teceived to fund work in these areas. The Meals Matter fund relates to gifts received lo provide meals for those struggling with the cost of living crisis. The Compassion fund relates to gifts received to help those who are struggling. Other restricted funds relate lo amounts received and expended during the year together with small funds with a c105ing balan of £400 or less. 7 UNRESTRICTED FUNDS Balance Movement in funds at Incoming Expenditure, Transfers 01.04.23 resour¢ès (gains)Ilosses Balance at 31.03.24 General charltable funds 121.571 398.613 424.401 95.783 Designated funds: Property Trust No 4 Flat Wittonwood Road 48.900 83,375 900 900 (108.312) 48,000 40,787 150,000 375,000 {41,6881 41,688 375,000 £ 628.391 £ 398.613 £ 317.889 £ - £ 709,570 -20-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 7 UNRESTRICTED FUNDS (Continuedl The Property and Trust Funds have been designated to represent the amounts held in xed assets in respect of the property in Connaught Avenue. Frinton on Sea, used for Church purposes. The Wittonwood Road and No 4 have been designated lo represent the amounts held in financial assels in respect of the property in Wittonwood Road and the No. 4 flat. DONATIONS FOR OTHER CHARITIES These amounls represent amounts collecled for the purpose of donating lo other charities. All income received was donated to each specific Charity. Chandiwana Memorial Foundation Tendring Tool Refurb Beacon House The Light College (funds yel passed on) 6,220 3.854 4.758 £ 16,176 9 STAFF COSTS During the year the Church employed one Minister. one assooate minister. one operations manager, one part-lime youth pastor, one children and schools worker. people part- time on administration duties and three people part-lime on cleaning and carelaking. None eamed in excess of £60,000 during the year. Combined 2023 2024 Gross employment costs Employer's National Insurdnce costs Pension provision 184,718 14,618 10,909 150.900 12,075 8.980 Total employmènt costs £ 210,245 £ 171.955 21
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 9 STAFF COSTS (Continu¢d) The aggregate remuneration of key management personnel vms: Combinèd 2023 2024 Gross employment cosls Employer's National Insurance costs Pension provision 102.938 10.335 8,550 94.220 9.792 7,900 Total employment costs £121.823 £ 111.912 10 PENSION COSTS The Church is a participating employer in the Baptist Pension Scheme {he Scheme.), which is a separate legal entity administered by the Pension Trustee (Baptisl Pension Trust Limited}. The assets of the Scheme are held separately from those of the Employer and the other participating empkjyers. The Scheme. pvIOuslY known as the Baptist Ministers. Pension Fund, started in 1925. but was closed to future accrual of defined benefits on 31 December 2011. Prior to this date the main benefit provided Ihrough the Defined Benefit IDBI Plan was a pension of one eightieth of final minimum pensionable income for each year of pensionable SeiCe together with additional pension in respecl of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. From January 2012. pensi1 provision is being made through the Defined Contribution {DC) Plan within the Scheme. In general. members pay 8 /4 of their Pensionable Income and employers pay 6¥• of members, Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Broadstone Corporate Benefits Ltd. In addition, the employer pays a further 4010 of Pensionable Income to cover Death in Service Benefits, administration costs. and an associated insurance policy which provides income prolection for Scheme members if they are unable lo work due to long-term incapacty. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva Limited. Members of the Basic Seclion pay reduced contributions of 5.10 of Pensionable Income. and their ernployers a150 pay a total of 5V.. The Scheme is considered to be a mulli*mployer scheme as descnbed in Section 28 of FRS 102. Because il is not possible to attribute the Scheme's assets and liabilities to specific employers, the scheme is accounted for as rf the Scheme were a defined contribution scheme. The Minister and some members of the church slaff are eligible to join Ihe Scheme. -22-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 10 PEIISION COSTS (Continued) Actuarial valuation as at 31 December 2019 A fomal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Acluary using the Projected Unit Method. At the valuation date the market value of Ihe DB Plan assets was £298 million, whilst the level of assels needed to pay benefits was £316fn, giving a deficit of £18m leouivalenl to a past service funding level of 94 /.). The Church and the other participatsng employers in the DB Plan are collectively responsible for funding this defTrcil. The key financial assumptions underlying the valuation were as follows- Type ol assumption °A p.a. RPI price inflation assumplion 3.20 CPI price inflation assumption 2.70 Minimum Pensionable Income Increase 0.50 Adjustrnent (above CPI) Pre-reliremenl assumed investment retums {gilt yield plus 1.75°/o pa) Post retirement assumed investment retums (including benefits matched by the insurance policy) Igill yield plus 0.5¥0 pal Minimum Pensionable Income inueases (CPI plus 0.54/01 Deferred pension increases (based on RPI) Pre April 2009 Post April 2009 Pension increases Based on CPI an annual floor of OYO and annual cap of5% 2.95 1.70 3.20 3.20 2.50 2.70 Mortality is assumed in accordance viith 80% of the S3NA stsndard mortalty table. Future improvements projecled from 2013 in line with the CMI 2019 projection with a long term rate of improvement of 1.75°A p.a. for males and 1.50/ p.a. for females. with the core smoothing parameter and with additional initial mortalty improvement factor A=0.50/0. The next actuarial valuation of the OB Plan thin the Scheme was due to take place no later than 31 December 2022. A valuats'on was nol required due to the updated recovery plan in August 2022, that was put in place per befow. -23-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 10 PENSION COSTS (Continued) Recovery Plan In addilion lo the conlribulions to the DC Plan set out above. where a valuation of the DB Plan revea15 a deficit the Trustee and the Council agree lo a rate of deficFency contributions from churches and olher employers involved in the DB plan. Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership al 31 December 2014 and in¢aSe annually in line with increases lo Minimum Pensionable Incorne as defined in the Ruth. On 30 June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group I"Jusl"I to secure the DB Plan member's pension benefits. Just are now Providing financial backing for all pensions provided through the Scheme's DB Plan and following this transaction, the Scheme no longer has a shortfall. An updated Recovery Plan was then signed in August 2022 under which recovery contributions from each participating employer in the DB Plan reduced to £1 per month from Atsgusl 2022. Movement in balance sheet Ilability Section 28.11A of FRS 102 requires agreed def11 recovery payments lo be recognised as a liability- The rnovemenl in the provision is sel out in the table below. 31 March 31 March 2024 2023 Opening defined benefft pension liability Less.. Deficiency contributions paid Interest cost Irecognised in SOFA) Actuarial gain on re-measuremenl of liatylty . Irecognised in SOFA) 26.000 11.9931 755 (24,7621 Closing defined benefit pension liability Comprises any change in aged deficit recovery plan and chang8 in assumptions belween yearonds. -24-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 10 PENSION COSTS {Continued) The liability represents the present value of the defficil contributions agreed as at the accounting date and has been valued using Ihe following assumptions by reference lo the duration of the deficit COVery paents.. 2024 2023 2022 Discount rale Futu increases to minimum pensionable income Amounts recognised in the slatement of financial activities in respect of Ihe defined benefit pension scheme are as follows: 31 March 31 Mar¢h 2024 2023 Interest on Ihe defined beneftt pension liability 755 Costs recognised within net income Actuarial {gainsylosses 755 (24,7621 Total {gainycosl relating to defined benefit pension scheme recognised in the statement of financial activities £ (24,007) 11 CONTROLLING PARTY The Trustees. as a b¢)dy control the charity. 12 RELATED PARTY TRANSACTIONS All significant expenditure is only aulhorised upon receipt of at least Iwo quotations. Transactions. including the reimbursement of expenses. were not material during the year. Steve Bell, who is a Trustee, was awarded various jobs around the Church and the Manses. He was paid on an arm's length basis £2.79712023= £1.414}and was nol involved in the decision lo use his services. Simba Chandiwana, WPK) is a Trustee. is also a trustee of the Chandiwana Memorial Foundation, for which we have collected and passed on funds totalling £6.220 during the year. 25-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 12 RELATED PARTY TRANSACTIONS (Contlnued) The levels of remunerab'on are set by the Trustees. The following Trustees have been paid remuneration as a resutt of Iheir employment with the Church for To5 other than as a Trustee: Employer's national Pension Insuran¢e provision Gross Rev M Massey (Ministry) Rev S Bates (Ministry) M Betteridge (Managin9 operations to 3111124) 36,150 33,600 26.370 3.733 3,382 2.594 3.615 3.360 1.312 Other than noted above. there were no further related party transactions. -26-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 13 STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2023 Unrestricted funds Restri¢ted General Designated Fund5 Total Funds Income from Donations and lega¢ies 405,800 12,014 417.814 Othor trading activities 33.015 3,448 36.463 Inveslmenl incomg 19 19 Total in¢ome 438.834 15,462 454.296 enditure on: Raising funds 13.219 13,219 haritable activitles 347.222 2,700 11.674 361,596 Total expenditure 360,441 2,700 11.674 374.315 -27-
FRINTON FREE CHURCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 13 STATEMENT OF FINANCIAL ACTlVtflES (Continued) YEAR ENDED 31 MARCH 2023 Unrestri¢ted funds Restricted General Designated Funds Total Funds Nel incomel(expenditure) bofore revaluations Transfers behveen funds 78,393 (66.942) (2.700) 66,942 3.788 79,481 Nel movements in funds before other recognised gain51llosses) 11.451 64.242 3.788 79.481 Other recognised gainsl(losses): Actuarial gains on defined benefit pension schemes 24,762 24.762 Nel movements in funds 36.213 64.242 3,788 104.243 Re¢onciliation of funds Total funds brought forward 85.358 443,033 6,345 534.736 Total funds carried forward £ 121.571 £ 507.275 £ 10.133 £ 638.979 Represented by: Tangible fixed assels Current assets Current liabililies Long term liabilities= Deferred Income 11,333 132,799 119,161) 507.275 518,608 142,932 119.161) 10,133 (3,400) (3,400) £ 121,571 £ 507.275 £ 10.133 £ 638,979 -28-