**Charity registration number: 1195749**
## **CANNING ROAD EVANGELICAL CHURCH**
**a Charitable Incorporated Organisation**
## **UNAUDITED FINANCIAL STATEMENTS AND**
**TRUSTEES REPORT**
**FOR THE YEAR ENDED 31 MARCH 2023**
## **CANNING ROAD EVANGELICAL CHURCH**
## **INDEX TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
||**Page**|
|---|---|
|Legal and administrative information|1|
|Trustees' annual report|2 - 5|
|Independent examiner's report to the trustees|6|
|Statement of financial activities|7|
|Statement of financial position|8|
|Notes to the financial statements|9 - 12|
## **CANNING ROAD EVANGELICAL CHURCH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**Registered charity name:**|Canning Road Evangelical Church|
|---|---|
|**Trustees:**|Mr D R Geering|
||Mr M D Harding|
||Mr L R Milner|
||Mr D Styles|
|**Chairperson:**|Mr D R Geering|
|**Treasurer:**|Mrs L King|
|**Charity registration number:**|1195749|
|**Charity Address:**|Canning Road Evangelical Church|
||Canning Road|
||Southport|
||PR9 7SS|
|**Independent examiner:**|Mr W A Harrison|
||Apt 37 Brunlees Court|
||19-23 Cambridge Road|
||Southport|
||PR9 9DH|
|**Banker:**|NatWest Bank|
||130 Lord Street|
||Southport|
||PR9 0AE|
Page 1 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **TRUSTEES' REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2023**
The trustees submit their annual report and financial statements for the year ended 31 March 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)', issued October 2019 in preparing the annual report and financial statements of the charity.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is a charitable incorporated organisation (CIO), incorporated on 8 September 2021 and governed by its constitution and associated statement of faith. On 1 June 2022 the property and assets of the previously unincorporated trusts were transferred to the new CIO and those trusts are now in the process of being formally wound up. All charity activity is now being undertaken through this CIO.
## **Recruitment and appointment of the trustees**
The board seek to achieve a balance of skills and experience amongst the trustees, of which it must have a minimum of 3. In order to maintain this, the board reviews its skill and experience mix each year and seeks to recruit new trustees as and when necessary. Potential trustees are members of the charity that both subscribe and adhere to, in belief and lifestyle, the statement of faith and are appointed by a resolution passed at a properly convened meeting of the members.
## **Trustee induction and training**
The current board of trustees provide any new and/or potential trustee with a copy of the constitution and statement of faith along with the latest copy of the charity's annual report and financial statements. Any further training is assessed and provided as and when required by the existing trustees.
Ongoing training is provided by the board of trustees as and when the need arises.
Each trustee is appointed for a set term of a maximum of 3 years and put forward for re-election to the members when that term expires. There is no limit to the number of terms that a trustee may be re-appointed.
## **Risk management**
The charity has undertaken a review of the major risks to which it is exposed and monitors this regularly. Full risk assessments have been undertaken for all activities of the charity and are reviewed on a regular basis. Insurance cover is reviewed annually by the trustees to ensure it is considered appropriate at all times. The trustees are presented with a financial update, usually on a quarterly basis, to ensure that reserves are adequate and that proper financial planning can be undertaken.
During the year a full fire risk assessment has been completed and all necesary safety steps either undertaken or planned.
Page 2 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **OBJECTIVES AND ACTIVITIES**
## **Objects of the charity**
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in considering future activities of the charity and believe they are in full compliance. The object of the charity is, for the public benefit, the advancement of the Christian faith in Southport, Merseyside and such other parts of the United Kingdom and the world as the Charity Trustees may from time to time decide.
## **ACHIEVEMENTS AND PERFORMANCE**
## **Review and summary of the year**
Throughout the year the charity has continued to run Sunday church services for its members and the community. The charity has also run a foodbank on Monday afternoons in connection with Compassion Acts, to help the most needy in the local community. A childrens club, "Hero Academy" for ages 5 to 11 on Thursday evenings, term time has also been run for the local community children along with many other outreach activities that have taken place from time to time.
## **FINANCIAL REVIEW**
## **Review and summary of the year**
The results for the year and state of the charity's affairs at 31 March 2023 are set out in the financial statements on pages 7 to 12 showing income of £37,638 (2022: £36,334) and expenditure of £37,374 (2022: £31,512).
The charity recorded a surplus of £264 (2022: £4,822) for the year bringing the total funds to a surplus of £342,666 (2022: £342,402). The trustees are aware of the level of reserves held and as mentioned on the next page have plans to employ a full time member of staff which will start to invest the excess reserves to better charitable use.
## **Principal funding sources**
The principal funding sources of the charity continue to be received from the members tithes and offerings throughout the year along with income from hiring the property to various local organisations whose activities are in keeping with the objects of the charity.
## **Reserves policy**
The trustees have decided on a policy of holding a minimum of 6 months average costs in unrestricted reserves, which is around £18,000. The charity has free reserves well in excess of this at present which will well facilitate the plan to employ a full time staff member (see next page).
In the year to 31 March 2023 the amount available in unrestricted reserves was £342,666 (2022 - £342,402). The trustees are continuing to expand on the charitable work that they undertake to help more in need in the local community which will continue to use the resources available to them.
Page 3 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Reserves policy (continued)**
Given the plans described in the paragraphs below the trustees agreed to calculate the cost of a full time pastor for youth and families starting at £27,600 per annum with annual inflationary growth of 5%. Including the on costs of national insurance and pensions it was calculated that this would total £158,573 over 5 years. As such the trustees have fully designated this amount which is now reflected in the accounts ready to be spent once the appointment is made. Free reserves after this designation has been made stand at £184,093.
## **PLANS FOR FUTURE PERIODS**
## **General plans**
The charity will continue its current programme throughout the year and aims to increase the levels of help if can offer to the local community, physically, emotionally and spiritually as much as it is able to.
More specifically, the church members have majority voted in favour of the appointment of an employed "pastor for youth and families" as an initial full time contract of up to 5 years. As at the time of writing this report, the job advertisement has been published and a number of possible candidates have applied with interviews set to take place in due course. It is planned that the successful candidate would commence employment no later than the end of August 2023 so that they are well settled into the role before the new school year starts.
As part of this full time contract, it is planned that up to half of this worker's employed hours would be donated to "The Southport and Area Schools Worker Trust", a local charity whose activities are in support of Canning Road Evangelical Church. This is in order to benefit from the synergy between the local schools work and the church by providing the consistency of the face that represents the local church to the local schools. It is believed that this model of operation will bring a fundamental positive difference to the support that the church can offer local families and should further the church's charitable aims.
On a practical note, the charity has also recently instructed local trades to re-plaster the church ceiling as it was becoming in need of repair. It is expected that the cost of this, which includes repainting, will be in the region of £15,000 to £20,000 once completed, £5,500 of which is included within these financial statements.
## **Plans in response to risk review**
The trustees continually monitor risk and implement policy as and when necessary to mitigate that risk as far as possible. All risk assessments have been prepared and are reviewed and updated on a regular basis as and when required.
Page 4 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **TRUSTEES' REPORT (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the period and of its financial position at the end of the year. In preparing those financial statements, the trustees are required to:
- a. select suitable accounting policies and apply them consistently;
- b. make judgements and estimates that are reasonable and prudent;
- c. state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements;
- d. prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.
This report was approved by the board of trustees on 22 May 2023 and signed on its behalf by:
……………………………… **Mr D R Geering - Chairman of Trustees**
Page 5 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CANNING ROAD EVANGELICAL CHURCH**
## **FOR THE YEAR ENDED 31 MARCH 2023**
I report to the trustees on my examination of the financial statements of Canning Road Evangelical Church ('the charity') for the year ended 31 March 2023, which are set out on pages 7 to 12.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
- (i) examine the accounts under section 145 of the Charities Act,
- (ii) to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
- (iii) to state whether particular matters have come to my attention.
## **Basis of independent examiner's statement**
My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
- a) which gives me reasonable cause to believe that in, any material respect, the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
have not been met; or
- b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
## **Mr W A Harrison**
**Dated:** 7 August 2023
**Apt 37 Brunlees Court, 19-23 Cambridge Road Southport, PR9 9DH**
Page 6 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**Notes**
**£**
**£**
**£**
**INCOMING RESOURCES**
Incoming resources from generated funds:
Voluntary income:
**2**
26,430
75
26,505
Activities to generate funds
**3**
7,520
-
7,520
Investment income
**4**
3,613
-
3,613
**TOTAL INCOMING RESOURCES**
37,563
75
**37,638**
**RESOURCES EXPENDED**
Charitable activities
**5**
34,294
75
34,369
Governance costs
**6**
3,005
-
3,005
**TOTAL RESOURCES EXPENDED**
37,299
75
**37,374**
264
-
**264**
Fund balances at 1 April 2022
342,402
-
342,402
Fund balances at 31 March 2023
342,666
-
**342,666**
**NET INCOMING RESOURCES**
**FOR THE YEAR**|**Total**
**funds**
**2022**
**£**
26,367
5,449
4,518
36,334
28,828
2,684
31,512
4,822
337,580
342,402|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 9 to 12 form part of these financial statements.
Page 7 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **BALANCE SHEET**
## **AS AT 31 MARCH 2023**
|**Notes**
**CURRENT ASSETS**
Cash at bank and in hand
Green Pastures investments
Building hire debtors
Gift aid debtor
**CURRENT LIABILITIES**
Trade creditors
Expenses owed
Accrued costs
**NET CURRENT ASSETS**
**FUNDS**
Restricted funds
Designated funds
Unrestricted funds
**TOTAL FUNDS**
**8**|**Total**
**funds**
**2023**
**£**
170,182
165,000
4,298
4,161
343,641
176
699
100
975
**342,666**
-
158,573
184,093
**342,666**|**Total**
**funds**
**2022**
**£**
171,528
165,000
4,314
4,433
345,275
87
2,187
599
2,873
**342,402**
-
-
342,402
**342,402**|
|---|---|---|
These financial statements were approved by the board of trustees and authorised for issue on 22 May 2023, and are signed on behalf of the board by:
………………………………
## **Mr D R Geering - Chairman of Trustees**
The notes on pages 9 to 12 form part of these financial statements.
Page 8 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
## **1 ACCOUNTING POLICIES**
## **a Basis of preparation**
The financial statements have been prepared under the historical cost convention and in accordance with the FRSSE Statement of Recommended Practice (FRSSE SORP), "Accounting and Reporting by Charities" published in March 2015.
## **b Fund accounting**
Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements where relevant.
## **c Incoming resources**
All incoming resources are included in the SOFA when the charity is legally entitled to the income and can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. No amounts are included in the financial statements for services donated by volunteers.
## **d Resources expended**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources.
## **e Fixed assets and depreciation**
Tangible fixed assets costing more than £500 are capitalised and included at cost including and incidental expenses of acquisition.
## **f Limited by guarantee**
The charity is a charitable incorporated organisation. The members of the charity are the congregational individuals that have signed the membership declaration and subscribe fully to the statement of faith. In the event of the charity being wound up, the members have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.
## **g Green Pastures investments**
The charity has 3 separate investments totalling £165,000 held as unsecured loan stock with Green Pastures CBS Limited, a Christian charity whose objects are to end homelessness. These are at fixed rates and mature in August 2023, September 2023 and October 2023 respectively.
Page 9 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**2**
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**Donations and gifts:**
General donations (gift aid)
16,594
60
**16,654**
General donations (no gift aid)
5,690
-
**5,690**
Gift aid tax recoverable
4,146
15
**4,161**
26,430
75
**26,505**
**3**
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**Other activities:**
Income from hire of property
7,520
-
**7,520**
7,520
-
**7,520**
**4**
**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
**Income from investments:**
Green Pastures interest
3,300
-
**3,300**
Bank interest
313
-
**313**
3,613
-
**3,613**
**VOLUNTARY INCOME**
**ACTIVITIES TO GENERATE FUNDS**
**INVESTMENT INCOME**|**Total**
**funds**
**2022**
**£**
16,845
5,088
4,434
26,367
**Total**
**funds**
**2022**
**£**
5,449
5,449
**Total**
**funds**
**2022**
**£**
4,450
68
4,518|
|---|---|
Page 10 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **5 COSTS OF CHARITABLE ACTIVITIES**
|**Property costs:**
Electricity and gas
Repairs and maintenance
Water rates
Waste collection
Insurance
**Administration / support costs:**
Telephone and internet
Printing, postage and stationery
Subscriptions and licences
Sundry costs
**Charitable activity costs:**
Charitable giving
Youth work
Speakers expenses
Salaries
Recruitment costs
Outreach events|**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
3,492
-
**3,492**
13,951
-
**13,951**
349
-
**349**
50
-
**50**
1,962
-
**1,962**
19,804
-
**19,804**
435
-
**435**
160
-
**160**
357
-
**357**
333
-
**333**
1,285
-
**1,285**
3,815
75
**3,890**
1,319
-
**1,319**
805
-
**805**
6,679
-
**6,679**
300
-
**300**
287
-
**287**
13,205
75
**13,280**
34,294
75
**34,369**|**Total**
**funds**
**2022**
**£**
977
6,501
213
50
1,730
9,471
372
383
273
396
1,424
3,698
1,670
1,160
11,310
-
95
17,933
28,828|
|---|---|---|
## **6 GOVERNANCE COSTS**
|Legal and CIO formation costs
Independent examination|**Unrestricted**
**Restricted**
**Total**
**funds**
**funds**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
2,905
-
**2,905**
100
-
**100**
3,005
-
**3,005**|**Total**
**funds**
**2022**
**£**
2,584
100
2,684|
|---|---|---|
Page 11 of 12
## **CANNING ROAD EVANGELICAL CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
**FOR THE YEAR ENDED 31 MARCH 2023**
## **7 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Current assets
Current liabilities
**ANALYSIS OF FUNDS**
Balance at
Incoming
1 Apr 22
Resources
**Unrestricted funds:**
General fund
342,402
37,563
Designated funds
-
-
**Restricted funds:**
-
75
**Total funds:**
342,402
37,638|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
343,641
-
(975)
-
342,666
-
Outgoing
Resources
Transfers
37,299
(158,573)
-
158,573
75
-
37,374
-|**Total**
**funds**
**£**
**343,641**
**(975)**
**342,666**
Balance at
31 Mar 23
**184,093**
**158,573**
**-**
**342,666**|
|---|---|---|
## **8 ANALYSIS OF FUNDS**
Restricted funds represent donations received during the year for missional outreach and are to be spent on missional giving only.
Designated funds represent unrestricted funds that the trustees have agreed to set aside to be used to fund up to 5 years salary and associated on costs of a full time pastor for youth and families in accordance with their future plans.
## **9 TRUSTEES REMUNERATION**
No trustee received any emoluments during the year.
Page 12 of 12