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2024-09-30-accounts

Charity registration number 1200788

KNIGHTON FREE CHURCH

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

KNIGHTON FREE CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Chris Trafford (Resigned 27 June 2024) R. Patrick Bryan (Resigned 12 April 2024) Joshua Radford Peter Graves (Resigned 31 July 2024) Jonathan Barrett John Smuts (Appointed 1 February 2024) Mr J Errawella (Appointed 21 May 2024) Mr R Green (Appointed 21 May 2024) Charity number 1200788 Principal address Brinsmead Road Knighton Leicester LE2 3WB Independent examiner Paul Barnett FCCA Newby Castleman LLP West Walk Building 110 Regent Road Leicester LE1 7LT Bankers CAF Bank Limited 25 Kings Hill Avenue West Malling Kent ME19 4JQ Kingdom Bank Media House Padge Road Beeston Nottingham NG9 2RS

KNIGHTON FREE CHURCH

CONTENTS

Page
Trustees' report 1 - 6
Independent examiner's report 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10 - 24

KNIGHTON FREE CHURCH

TRUSTEES' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2024

The trustees present their annual report and financial statements for the Church for the year ended 30 September 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's constitution, 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 applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The objects of the Church are:

The vision of Knighton Free Church is to see all of God, through all of us, to all the world.

Safeguarding

Significant attention has been devoted to reviewing our safeguarding policies and procedures – since attitudes to safeguarding have changed much over recent years. Following a robust review, we introduced a new safeguarding policy for children and adults at risk. The church is a member of Thirtyone:Eight Safeguarding (https:// thirtyoneeight.org/), as external safeguarding specialists, from whom we seek advice for our safeguarding policies and procedures. 'Thirtyone:eight' - is taken from Proverbs 31:8 “Speak out on behalf of the voiceless, and for the rights of vulnerable people.” Indeed, throughout the Scriptures there is a clear call to care for vulnerable people. We have been conscious of the rising concerns in society, to provide the safest possible environment, particularly in high trust contexts that churches typically offer. The trustees are grateful for the commitment to safeguarding of the many volunteers serving within Knighton. This was demonstrated by the significant attendance of church members and leaders at training sessions, designed to ensure that the details of our Safeguarding Policy are understood and translated into practice.

Activities

No amount of change can undermine our commitment to grow as a faith community in worshipping Christ in Spirit and in truth. Despite the demands of a complex, shifting society, we continue to commend to our generation the faith, hope and love that God has given us in His Son Jesus Christ. We know this requires us to combine our conviction about the Lordship of Christ with gracious humility towards others of different perspectives. We have a particular focus on reaching and serving the needs of young people whether they are members of the church or merely visitors from the local community. The Elders seek to ensure that all our activities acknowledge the inspiration of God’s Word so that the authority of the Holy Spirit of God speaking through Scripture governs our rule of faith and life.

Sunday services together with most other meetings are open to all. The 10.30am and the 7pm services are generally streamed for those unable to attend. The public benefit of collective worship and prayer is therefore experienced across a wide local community as well as further afield, including internationally. Our common life of worship and prayer includes activities for all ages and stages. While there is much overlap in the composition of congregations for different services, the Sunday 9 am service has a particular focus on adults as there is no particular provision for children. The 10:30 am is designed for the whole congregation, particularly families. The 7 pm service offers a more contemporary feel with a significant degree of participation making it especially attractive to students and young people.

KNIGHTON FREE CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

Regular activities throughout the week are held for all age-groups from babies and toddlers to retired people. All groups are open to any member of the public, with many groups having significant numbers who are neither official church members nor attending Sunday services.

In all our activities we continue to improve our accessibility to people with additional needs. Not only have we made the building more accessible, we also strive to ensure that our oral, visual and written communications are as sensitive as possible to the widest spectrum of needs. We have made progress in welcoming everyone whatever their background, age or additional needs. This remains an ongoing learning experience in dialogue with those concerned.

Achievements and performance

The public benefits of worship and of participating in Holy Communion extend principally to those within the faith community. But it is well known that there are many benefits from meeting together, singing together and serving one another which extend to the wider community, including visitors and those exploring faith issues. The church serves as a place for the community to gather, to foster social connections and to build resilient networks. We provide a range of important services, many of which extend to whole families and offer refreshments at no cost to the community. Our teachings promote ethical values and thoughtful decision-making to help children and young people, to support couples, parents and singles, and to care for older people. We model sacrificial volunteering and financial giving to others demonstrating the value of an outward facing community.

Our worship services focus on the reality of our risen Saviour, Jesus Christ. We believe he is at work in our world through his Holy Spirit seeking to save those who are lost even while he is also seated at the right hand of Almighty God, our heavenly Father. These are profound truths that have shaped British society for centuries and will continue to do so fruitfully in the future. We will have to continue adapting to our changing social and economic context. Leicester is one of the UK’s fastest growing areas; one of the most youthful; one of the most diverse with 240 faith groups and more than 70 languages spoken. This richly diverse community presents enormous challenges and opportunities which we embrace open heartedly. Knighton is a friendly, all-age church with a family feel and a strong sense of unity. We have an enviable mix of men, women and children from varied socio-economic and ethnic backgrounds. The church fellowship is mostly drawn from south Leicester and surrounding villages with a membership of around 200. We hold to a congregational order of church with our members responsible for the appointment of the Elders including our Pastors.

The Church is divided into identified areas of ministry. These include compassion ministries; families, children and youth; pastoral care; safeguarding; women's ministry; welcoming; financial management and others. As a longstanding member of the FIEC, we hold to a male eldership. Nevertheless, men and women are identified to lead these different areas of ministry and are encouraged to convene small teams to support their work. This enables a wide spectrum of people to use their gifts, interests and experience for the common good. The vast majority of service is therefore undertaken by volunteers. Each Deacon will be supported by a lead Elder who provides advice and direction as appropriate. Training and appraisal is therefore being developed in a light touch and proportionate manner to ensure that the best use is made of willing, but scarce, resources.

We also have regular events aimed at families from both church and the local community, The Family Hub. It includes games and crafts, singing, a Bible story and food. It is normally held on the first Saturday afternoon of the month. The Church also supported the Knighton Park Show taking a stand that gave the local community a chance to find out who we are and what we do.

For many years we have run a residential Christian camp for children and young people attending Knighton, other churches & their friends. Across each camp there are a variety of activities, games, trips and more. Each camp also meets together each day to sing, pray and learn more about Jesus and what it means to follow God today through what the Bible says. This is a significant commitment by the volunteers and staff who give their time to oversee the camps. But the impact over many years has been substantial and many testify to the experiences on camp having shaped the rest of their lives and service in the church.

KNIGHTON FREE CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

Public benefit further afield

KFC is involved with organisations working locally, nationally and internationally. These include:

Financial review

The results for the year ended 30 September 2024 are shown in the Statement of Financial Activities on Page 8. This, together with the balance sheet on page 8 should be read in conjunction with the related notes in accordance with the Charities SORP (FRS 102)

Total income for the year amounted to £432,834 (2023 - £423,315) The principal funding source was donations and legacies. Total expenditure for the year amounted to £414,140 (2023 - £422,181) A breakdown of expenditure is set out in the notes to the financial statements. Both income and expenditure are closely monitored.

Our trading subsidiary continues to provide retirement accommodation for elderly Christians. The trading results are detailed in note 15 to the accounts.

Reserves policy

The Trustees have reviewed the reserves of the Church. They concluded that the policy is to maintain free reserves at a level which equates to at least three months unrestricted fund expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Church’s current activities whilst consideration is given to ways in which additional funds may be raised. The Trustees define their free reserves as being total general funds less unrestricted tangible fixed assets and as at 30 September 2024 this amounted to £199,081.

Investment policy

In accordance with the terms of the Constitution, the investment powers are as follows:

The investments held by the Church continue to be social investments rather than financial investments.

The Trustees have regard to their statutory duties in terms of investments which includes a periodic review of their holdings.

Details of investments are summarised in note 15 to the accounts.

KNIGHTON FREE CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

Major risks

The Trustees have assessed the major risks to which the Church is exposed. A risk register is in place to mitigate them. The most significant foreseeable risks were identified as follows:

Plans for future periods

The reforms of our Safeguarding arrangements and of our Constitution (CIO) have occupied a considerable amount of time and effort. They represent major achievements during the year. We have also made good use of the interregnum to recruit new Pastors and Elders. If these priorities have inhibited our capacity to deliver other new initiatives, we have nevertheless put in place plans for a new season of prayerful developments next year and beyond. We have embarked on a number of creative activities to help us cast a vision for a new phase in the life of the church:

KNIGHTON FREE CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

Structure, governance and management

Knighton Evangelical Free Church became a registered charity on 14th April 2009, in accordance with the legal requirement for churches to register as charities. On 5th April 2015, the name was changed to Knighton Free Church, since the Evangelical label may present a barrier to some. Knighton Free Church nevertheless continues to be an Evangelical Church.

The Church originally was unincorporated and governed by its Constitution. The Church constitution and Church Procedures were adopted on 2 September 2008 in order to comply with the requirements of the Charities Act.

On advice from Edward Connor, years of work behind the scenes, and a unanimous vote by the membership, the church transferred its assets, liabilities, ongoing activities and members into a CIO of the same name on 1st October 2023. On this date the new CIO constitution was also adopted. The Church Council continues to be responsible for the management of the affairs of the Church. The Church Council consists of the Elders of the Church.

As an incorporated body it has a legal personality of its own. This means it can enter into contracts in its own name. It can employ staff rather than requiring trustees to do this. It can own property in its own name. The Elders/trustees will review these options from time to time to decide whether there may be advantages in exploring them further in the future.

The Church is affiliated to The Fellowship of Independent Evangelical Churches, the Evangelical Alliance and the Midlands Gospel Partnership. Our Pastors also have personal networks that help local churches to collaborate in mutual support.

A long season of stability with limited change has come to an end. The appointment of a new Senior Pastor, John Smuts, and Associate Pastor, Jon Barrett, followed more than two decades of much valued service by Andy Upton, Senior Pastor, and Fiona Hamilton, Women's Worker. In addition and for a variety of different reasons Tim Dixon, Patrick Bryan, Chris Trafford and Barry Mitchell resigned as Elders. Individually and collectively they have made a huge contribution to the life of the church for which we are immensely grateful. The loss of institutional knowledge and wide experience of Eldership has been marked. We place on record our formal thanks to them on behalf of all our congregation members.

The trustees who served during the year and up to the date of signature of the financial statements were:

Chris Trafford (Resigned 27 June 2024) R. Patrick Bryan (Resigned 12 April 2024) Joshua Radford Peter Graves (Resigned 31 July 2024) Jonathan Barrett John Smuts (Appointed 1 February 2024) Mr J Errawella (Appointed 21 May 2024) Mr R Green (Appointed 21 May 2024)

Recruitment and appointment of trustees

Pastors shall be nominated by the Church Council and be elected by the admitted members of the Church by a special resolution passed at a special Church meeting.

Nomination for Eldership shall be made by the Church Council and be submitted to the Church for consideration as a special resolution at a special Church meeting. Elders should be elected for periods of up to 5 years and shall be eligible for re-election every 5 years. They will not be eligible to serve a further term for 12 months.

The Pastor and Elders are also the Officers of the Church and the Managing Trustees of Knighton Free Church. Whenever a new Managing Trustee is appointed, they are provided with a copy of the latest annual report and accounts of the Church, the Constitution and Church procedures and other relevant documentation.

KNIGHTON FREE CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

If last year has been one of consolidation, our prayer and plans are that next year we will invest more strongly in our vision - to see all of God, through all of us, to all the world.

The trustees' report was approved by the Board of Trustees.

Mr R Green

Trustee

13 March 2025

KNIGHTON FREE CHURCH

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF KNIGHTON FREE CHURCH

I report to the trustees on my examination of the financial statements of Knighton Free Church (the Charity) for the year ended 30 September 2024.

Responsibilities and basis of report

As the trustees of the Charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

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

Independent examiner's statement

Since the Charity’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 I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

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

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 financial statements to be reached.

P T Barnett FCCA (Independent Examiner)

Dated: 13 March 2025

Newby Castleman LLP West Walk Building 110 Regent Road Leicester LE1 7LT

KNIGHTON FREE CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and legacies
3
355,730
33,572
Charitable activities
4
34,120
1,670
Other trading activities
5
2,940
-
Investments
6
4,757
45
Total
397,547
35,287
Charitable activities
7
381,167
32,973
Net income
16,380
2,314
Transfers between funds
19/20
500
(500)
Net movement in funds
16,880
1,814
Reconciliation of funds:
Total funds brought forward
651,979
365,461
Total funds carried forward
668,859
367,275		 Total
2024
£
389,302
35,790
2,940
4,802
432,834
414,140
18,694
-
18,694
1,017,440
1,036,134		 Total
2023
£
363,046
54,146
1,906
4,217
423,315
422,181
1,134
-
1,134
1,016,306
1,017,440

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

KNIGHTON FREE CHURCH

BALANCE SHEET

AS AT 30 SEPTEMBER 2024

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Funds of the Charity
Restricted funds
19
Unrestricted funds
20
Total charity funds		 2024
£
£
470,611
345,430
816,041
53,665
178,505
232,170
12,077
220,093
1,036,134
367,275
668,859
1,036,134		 2023
£
£
486,170
344,429
830,599
77,568
136,616
214,184
27,343
186,841
1,017,440
365,461
651,979
1,017,440		 2023
£
£
486,170
344,429
830,599
77,568
136,616
214,184
27,343
186,841
1,017,440
365,461
651,979
1,017,440
830,599
186,841
1,017,440
365,461
651,979
1,017,440

The notes on pages 10 to 24 form part of these financial statements.

The financial statements were approved and authorised by the board of trustees on 13 March 2025 and are signed on its behalf by:

Mr R Green Trustee

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024

1 Accounting policies

Charity information

Knighton Free Church is governed by its Constitution.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the Charity's Constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities 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)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

On 1 October 2023 the charity converted from an unincorporated charity to a charitable incorporated organisation. That charity met the criteria for merger accounting as defined in the FRS 102 SORP and as such this is treated as a merger.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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 financial statements.

1.3 Charitable funds

Funds held by the Church are:

Unrestricted funds – these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees. Unrestricted funds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose.

Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the Church. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Expenditure which meets the criteria is subsequently charged to the fund.

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

1 Accounting policies

(Continued)

1.4 Income

All income is recognised once the Church has entitlement to the income, it is probable that the income will be received and the amount can be quantified with reasonable accuracy.

No amounts are included in the accounts for services donated by volunteers.

1.5 Expenditure

All expenditure is accounted for on an accruals basis and is classified under headings that aggregate all costs relating to the category.

Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure on charitable activities is divided into youth activities, adult activities and overseas work.

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Support costs

Support costs are those that assist the work of the Church but do not directly represent charitable activities and include office costs and governance costs. They are incurred directly in support of expenditure in line with the objectives of the Church. Support costs are allocated to expenditure on charitable activities on a basis consistent with use of the resources.

The analysis of these costs is included in note 10.

1.6 Tangible fixed assets

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings Not depreciated Improvements to freehold building 2% on cost Furniture and equipment 10% on cost Computer Equipment 33.3% on cost Motor vehicles 25% on cost

No depreciation has been provided on freehold land and buildings because the trustees consider the residual value to be higher than the carrying amount.

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

1 Accounting policies

(Continued)

1.7 Fixed asset investments

Fixed asset investments comprise a programme related investment in the form of shares in a subsidiary company. The primary motivation for the investment is to further the objects of the Church rather than to generate a financial return. The shares are measured and included in the accounts at par value (cost) less impairment because its fair value cannot be measured reliably. The Trustees have a pre-emption, in their favour, to acquire any shares of any class from Knighton Evangelical Care Limited as they become available at their par value.

1.8 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount in order to determine the extent of the impairment loss (if any). Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the Statement of Financial Activities (SOFA) unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

1.9 Cash and cash equivalents

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition.

1.10 Financial instruments

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the SOFA.

1.11 Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12 Retirement benefits

Payments to the defined contribution retirement benefit scheme and payments to other personal pension schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The trustees do not consider there to be any key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations
242,795
19,742
Legacies receivable
66,886
-
Grants
-
-
Gift Aid
46,049
2,300
Special Appeals
-
11,530
355,730
33,572		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
262,537
278,812
24,074
66,886
-
-
-
-
7,705
48,349
48,101
75
11,530
-
4,279
389,302
326,913
36,133		 Total
2023
£
302,886
-
7,705
48,176
4,279
363,046

4 Income from charitable activities

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Advancement of the Christian Faith
Weekend away
7,021
-
Church groups
27,099
1,670
34,120
1,670		 Total
Unrestricted Restricted
funds
funds
2024
2023
2023
£
£
£
7,021
-
-
28,769
36,106
18,040
35,790
36,106
18,040		 Total
2023
£
-
54,146
54,146

5 Income from other trading activities

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Room hire
650
-
Other
2,290
-
2,940
-		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
650
1,189
-
2,290
717
-
2,940
1,906
-		 Total
2023
£
1,189
717
1,906

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

6 Income from investments

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Bank interest
1,999
23
Interest on Gift Aid
recoverable
153
22
Solar Panel income
2,605
-
4,757
45
Expenditure on charitable activities
Activities
undertaken
directly
Note 8
£
Youth activities
72,766
Adult activities
125,416
Overseas work
9,592
207,774
Unrestricted funds
Restricted funds		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
2,022
758
25
175
573
-
2,605
2,861
-
4,802
4,192
25
Grant
funding
Support
Costs
Total
2024
Note 9
Note 10
£
£
£
19,900
42,470
135,136
13,334
54,958
193,708
73,789
1,915
85,296
107,023
99,343
414,140
381,167
32,973
414,140		 Total
2023
£
783
573
2,861
4,217
Total
2023
£
127,644
184,063
110,474
422,181
364,761
57,420
422,181

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

8 Expenditure on activities undertaken directly

Youth
activities
Adult
activities
Overseas
work
£
£
£
Staff costs
29,297
109,865
7,324
Romanian Church programme
-
-
2,268
North Evington Church programme
-
5,000
-
Home for Good
6,963
-
-
Preachers' fees and expenses
-
1,295
-
Evangelistic events
1,527
2,898
-
Weekend away
1,996
5,988
-
Church groups
32,983
370
-
72,766
125,416
9,592		 Total
2024
£
146,486
2,268
5,000
6,963
1,295
4,425
7,984
33,353
207,774		 Total
2023
£
100,947
12,060
5,000
3,754
1,747
7,110
-
53,664
184,282
Total 2023 £ 9,452 18,000 15,906 3,500 5,875 8,284 8,000 500 2,400 900 3,170 27,111 2,147 105,245 9,500 8,250 122,995
Overseas work 2023 £ 9,452 18,000 15,906 - - 8,284 - - - - 2,933 27,111 - 81,686 - 8,250 89,936
Adult activities 2023 £ - - - - - - 8,000 500 2,400 - 237 - 1,147 12,284 - - 12,284
Youth activities 2023 £ - - - 3,500 5,875 - - - - 900 - - 1,000 11,275 9,500 - 20,775
Total 2024 £ 8,627 15,000 15,906 3,500 5,500 6,600 8,000 500 2,442 900 8,103 12,585 860 88,523 9,500 9,000 107,023
Overseas work 2024 £ 8,627 15,000 15,906 - - 6,600 - - - - 6,071 12,585 - 64,789 - 9,000 73,789
Adult activities 2024 £ - - - - - - 8,000 500 2,442 - 2,032 - 360 13,334 - - 13,334
Youth activities 2024 £ - - - 3,500 5,500 - - - - 900 - - 500 10,400 9,500 - 19,900
Expenditure on grant funding Grants to institutions for missionary support: Latin Link Interserve UFM Worldwide UCCF Friends International Arab World Ministries Grants to institutions and their purposes: Open Hands - food bank Midlands Gospel Partnership - collaboration Saffires - women in sex industry TLG Early Intervention - children and families Special Appeals Great Change Church - Ukraine Other (£500 or less) Grants to individuals for missionary support: Kay and Steve Morgan-Gurr Beni and Ioana Handaric
9

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

10 Expenditure on support costs

Travel and minibus expenses
Light and heat
Water and general insurance
Repairs, cleaning and waste disposal
Subscriptions
Books and training
Telephone, internet, printing and computer
Professional fees
Miscellaneous expenses
Governance costs
Depreciation
Loss on disposal of assets
Analysed between:
Youth activities
Adult activities
Overseas work		 2024
£
4,603
5,167
3,923
19,873
9,856
3,336
5,967
9,743
7,223
7,434
20,051
2,167
99,343
42,470
54,958
1,915
99,343		 2023
£
5,140
8,497
9,207
12,714
9,396
9,176
5,256
22,517
7,279
7,320
17,319
1,083
114,904
44,479
66,994
3,431
114,904

Included within Subscriptions, is a payment made to Evangelical Alliance for £1,750 (2023: £1,700).

Support costs are allocated between the various charitable activities on a basis consistent with the use of resources.

The amount charged to the SOFA in respect of independent examiner’s fee was: - Examination £3,345 (2023: £3,210)

11 Employees

The average monthly number of employees during the year was:

2024
Number
Ministry
3
Administration
3
Total
6		 2024
2023
FTE
Number
3
3
2
3
5
6		 2023
FTE
2
2
4

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

11
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2024
2023
£
£
135,557
90,855
1,521
4,025
9,408
6,067
146,486
100,947		 (Continued)
2024
2023
£
£
135,557
90,855
1,521
4,025
9,408
6,067
146,486
100,947
100,947

There were no employees whose annual remuneration was more than £60,000.

12 Trustees

Remuneration was paid to the Trustees (as permitted by the Church Constitution) as follows:

A Upton, Pastor
Salary
A Upton, Pastor
Pension costs
J Smut, Pastor
Salary
J Smut, Pastor
Pension costs
J Barrett, Associate Pastor
Salary
J Barrett, Associate Pastor
Pension costs
Total remuneration paid to Trustees		 2024
£
-
-
-
30,062
2,465
32,527
35,350
2,911
38,261
70,788		 2023
£
11,509
978
12,487
-
-
-
2,875
240
3,115
15,602

The above remuneration was paid to the Trustees in return for their ministerial services to the Church. No remuneration was paid to the Trustees for their roles as Trustees of the Church.

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

12 Trustees

(Continued)

Two Trustees (2023: Two Trustee) were reimbursed expenses as follows:

Hospitality allowance
Telephone and internet
Conferences
Travel and subsistence
Sundry		 2024
£
1,750
138
15
392
11
2,306		 2023
£
271
11
-
38
-
320

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

14 Tangible fixed assets

Freehold
land and
buildings
Improvem
ents to
freehold
building
Furniture
and
equipment
Computer
Equipment
Motor
vehicles
£
£
£
£
£
Cost
At 1 October 2023
60,778
519,437
125,567
4,782
6,600
Additions
-
-
4,132
2,527
-
Disposals
-
(768)
(6,648)
(1,095)
-
At 30 September 2024
60,778
518,669
123,051
6,214
6,600
Depreciation and impairment
At 1 October 2023
-
146,758
73,953
3,683
6,600
Depreciation charged in the year
-
11,080
7,857
1,114
-
Eliminated in respect of disposals
-
(289)
(4,960)
(1,095)
-
At 30 September 2024
-
157,549
76,850
3,702
6,600
Carrying amount
At 30 September 2024
60,778
361,120
46,201
2,512
-
At 30 September 2023
60,778
372,679
51,614
1,099
-		 Total
£
717,164
6,659
(8,511)
715,312
230,994
20,051
(6,344)
244,701
470,611
486,170

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

15 Fixed asset investments

Unlisted
investment in
subsidiary
£
Cost
At 1 October 2023 344,429
Additions 1,001
At 30 September 2024 345,430

Knighton Evangelical Care Limited has a 31 March year end. The aggregate capital and reserves and the results for the year ended 31 March 2024 of the subsidiary (not consolidated) for the year were as follows:

Capital and Profit for the
reserves year after
taxation
£ £
Knighton Evangelical Care Limited 1,330,722 49,720
16 Debtors
2024 2023
Amounts falling due within one year: £ £
Other debtors 259 931
Prepayments and accrued income 53,406 76,637
53,665 77,568
17 Creditors: amounts falling due within one year
2024 2023
£ £
Other taxation and social security 3,148 1,158
Trade creditors - 54
Other creditors 895 569
Accruals and deferred income 8,034 25,562
12,077 27,343

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

18 Retirement benefit schemes

The Church contributes 8% of pensionable salary for all eligible employees into a personal pension scheme of their choice, if they accept the offer.

The Church also operates a defined contribution pension scheme for other qualifying employees. The assets of the scheme are held separately from those of the charitable organisation in an independently administered fund.

The charge to the SOFA in respect of retirement benefit contribution was £9,408 (2023: £6,067), all of which was unrestricted.

19 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1
Accommodation for the Elderly
New Life
Special Appeals
Home for Good
Knightlife
There is Hope
Ukraine
Previous year:
At 1
Accommodation for the Elderly
New Life
Special Appeals
Home for Good
Romania
There is Hope
Asda Grant
Nippers FIEC Grant
Ukraine		 October
2023
Incoming
resources
Resources
expended
Transfers
At 30
September
2024
£
£
£
£
£
344,429
1,001
-
-
345,430
2,000
443
(371)
-
2,072
218
11,530
(9,716)
(2,032)
-
7,430
33
(6,963)
(500)
-
-
1,250
(501)
-
749
4,818
-
(2,837)
-
1,981
6,566
21,030
(12,585)
2,032
17,043
365,461
35,287
(32,973)
(500)
367,275
October
2022
Incoming
resources
Resources
expended
Transfers
At 30
September
2023
£
£
£
£
£
344,429
-
-
-
344,429
3,174
18,052
(19,226)
-
2,000
13,016
4,279
(3,170)
(13,907)
218
6,792
4,392
(3,754)
-
7,430
272
-
(272)
-
-
-
6,305
(1,487)
-
4,818
-
400
(400)
-
-
-
1,000
(2,000)
1,000
-
-
19,770
(27,111)
13,907
6,566
367,683
54,198
(57,420)
1,000
365,461

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

19 Restricted funds

(Continued)

Accommodation for the Elderly: to provide accommodation for elderly Christians near to the Church premises. This objective has been fulfilled in “Knighton Homes”, which is run by Knighton Evangelical Care Limited.

New Life: to provide a programme of activities for senior citizens and to support Missionary organisations.

Special Appeals: to support various appeals both in the U.K. and overseas. Transfers last year comprise £13,907 to separate the Ukraine fund. During the year, £2,032 was transferred to Ukraine fund being the money raised during the Christmas Appeal.

Home for Good: to raise awareness of fostering and adoption and to support adoptive and foster families. This was closed during the year and the remaining balance was distributed to other charities with similar aims. A transfer of £500 was made to Knighton Free Church as gift for the support they provided.

Knightlife: to provide a programme of activities for young people ages 14 to 18. This is ordinarily run as a designated fund, however during the year, money was donated specifically for this programme.

There is Hope: to develop a digital tract ministry with the theme of Hope to reach out to as many as possible in this way about the Christian faith.

Asda Grant: to support the Coronation Day celebration event held at the church premises to encourage families from the local community to come along to enjoy food and activities.

Nippers FIEC Grant: to be able to provide support to local families in the community with the provision of a free playgroup. As well as providing refreshments and conversation, there are fun activities, singing and bible stories told. Transfers during last year comprise £1,000 from general funds to match the grant received per the application.

Ukraine: to support the work of a Church in Ukraine which is running a refugee centre. This was included within Special Appeals and during last year, £13,907 was transferred from Special Appeals fund to show this separately. During the year, £2,032 was transferred from Special Appeals for the money raised during the Christmas Appeal.

20 Unrestricted funds

The unrestricted funds of the charity include general funds and designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1
Building
Knightlife
Romania
Summer Camp (formerly
Hungarton Camp)
General funds		 October
2023
Incoming
resources
Resources
expended
Transfers
At 30
September
2024
£
£
£
£
£
383,788
-
(13,169)
-
370,619
3,387
4,082
(5,262)
-
2,207
6,134
5,681
(11,268)
-
547
17,526
23,093
(29,534)
-
11,085
241,144
364,691
(321,934)
500
284,401
651,979
397,547
(381,167)
500
668,859

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

20
Unrestricted funds
Previous year:
At
Building
Knightlife
Romania
Hungarton Camp
General funds		 1 October
2022
Incoming
resources
Resources
expended
£
£
£
373,774
-
(11,175)
1,770
5,349
(5,569)
11,965
13,032
(19,868)
17,242
31,276
(30,392)
243,872
319,460
(297,757)
648,623
369,117
(364,761)		 (Continued)
Transfers
At 30
September
2023
£
£
21,189
383,788
1,837
3,387
1,005
6,134
(600)
17,526
(24,431)
241,144
(1,000)
651,979		 (Continued)
Transfers
At 30
September
2023
£
£
21,189
383,788
1,837
3,387
1,005
6,134
(600)
17,526
(24,431)
241,144
(1,000)
651,979
651,979

Building: the building fund reflects the net book value of historical improvements to the freehold premises and the cash balance to spend on improvements to the building. Transfers during the year comprise £nil (2023: £21,189) from general funds.

Knightlife: to provide a programme of activities for young people aged 14 to 18. Transfers during the year comprise £nil (2023: £1,837) from general funds.

Romania: to support the work of a group of Churches in Northern Romania. Transfers during the year comprise £nil (2023: £405) from general funds and £nil (2023: £600) from the Hungarton Camp designated fund.

Summer Camps (formerly Hungarton Camp) : to provide a programme of activities for young people aged between 9 and 18. The Camp is supported by a number of volunteers who give their time freely. In the current year no surplus has been generated due to covering the cost of using a new site. There is no transfer to the Romania designated fund (2023: £600) because of this.

21 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Fund balances at 30 September 2024 are represented by:
Tangible assets
469,778
833
Investments
-
345,430
Current assets/(liabilities)
199,081
21,012
668,859
367,275		 Total
2024
£
470,611
345,430
220,093
1,036,134

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2024

21 Analysis of net assets between funds

Analysis of net assets between funds (Continued)
Unrestricted Restricted Total
funds funds
2023 2023 2023
£ £ £
Fund balances at 30 September 2023 are represented by:
Tangible assets 486,170 - 486,170
Investments - 344,429 344,429
Current assets/(liabilities) 165,809 21,032 186,841
651,979 365,461 1,017,440

22 Controlling party

The Church is controlled by the Church Council.

23 Related party transactions
Transactions with related parties
During the year the Charity entered into the following transactions with related parties:
Donations received 2024 2023
£ £
Aggregate donations received from related partied without conditions attached 13,190 16,749

Other transactions

There have been no other related party transactions in the reporting period that require disclosure in the accounts apart from those detailed in note 12 to the accounts.

24 Merger

On 1 October 2023, the activities, assets and liabilities of the unincorporated charity were transferred to the charitable incorporated organisation. The unincorporated charity was subsequently closed and removed from the Charity Commission register. The charity's purpose and beneficiary class remained unchanged and the criteria for merger accounting has been met, as defined in the FRS 102 SORP.