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2020-09-30-accounts

Registered Charity No: 513430

CROSSROADS CHURCH

ASHINGTON

REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

CROSSROADS CHURCH, ASHINGTON

TRUSTEES ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS for the year ended 30 September 2020

SMITHS ACCOUNTANTS & TAX ADVISERS LTD

Chartered Accountants Northumberland

CROSSROADS CHURCH, ASHINGTON

CONTENTS

Page
Trustees’ Annual Report 1 - 6
Statement of Trustees’ Responsibilities 7
Independent Examiner’s Report 8
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Accounts 11 - 15

CROSSROADS CHURCH, ASHINGTON

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020

The Trustees present their Annual Report and the unaudited financial statements for the year ended 30 September 2020.

Objectives and Activities

The principal objectives of the Charity are the advancement of the Christian Faith and the relief of persons who are in need, hardship or distress, or who are aged or sick. The provision of instruction in the Christian Faith at any educational establishment, and to give practical support and service to the local communities in Ashington and surrounding areas. To promote life skills and healthy living options. To work with children and young people and promote and organise any other charitable activity which the trustees may from time to time decide. The Charity is committed to achieving results for the public benefit and due regard is always given to this objective in all its work it undertakes in the community.

Vision

Inspiring and supporting the local community. Vision that guides us.

We will promote our Christian aims and ideas through our engagement with people in our community.

Mission Statement

To encourage the development of the Christian Faith in Church Members. To serve the local community through practical help and support.

We will achieve this:

Through teaching and pastoral support that will encourage, strengthen individuals and groups that will empower them to make and give help and support to others.

We will work in partnership with other churches.

We will work in partnership with the local authority, charity groups and educational establishments.

Our Values/Beliefs

We are committed to the values of the Christian Faith, and we have a passion to share this with others.

We believe that its message can and does make a difference to a person’s life.

Summary of Main Activities

The Church was constituted by a Declaration of Trust on 8 December 1982. A new Declaration of Trust dated 23 June 2005 supersedes this.

There are three Church Elders (following the resignation of one in 2020) along with the Treasurer, Trustees, Pastoral Team and Administration Team who deal with the practical affairs of the Church with additional pastoral support from the Rev. Brian Howell.

During the course of the financial year the Church, along with holding divine worship on a Sunday, regularly held mid-week house meetings in Ashington. Various other meetings and concerts and other social activities were held during the year. The Church continues to financially support its coffee shop, and various members help the staff with the day to day running of the shop and with their special fund-raising efforts.

(1)

CROSSROADS CHURCH, ASHINGTON

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020

Summary of Main Activities (continued)

The shop is open to the general public with many people being served during the week in a non-threatening safe environment at its premises at 4 Myrtle Street, Ashington. Due to the COVID-19 global pandemic and resulting national restrictions, the shop had to suspend operations with the first lockdown at the end of March and was only able to safely open on a part time basis (3 days per week) for a couple of months in the summer before needing to close down again. The shop employed 3 paid staff for most of the year however they ended the year with two paid staff. All their gratuities continue to be given to charity. In this financial year they have raised around £500 for charitable causes and a donation has been made to the local foodbank, which brings the total raised by them over 16 years to around £22,500 The number of tips received is of course lower due to the length of time the shop has been closed during the COVID-19 pandemic. A Church member also uses the shop premises for a craft group for non church members.

Several Church members are actively involved with voluntary work within their local community. The Church supports and is involved with the local partnership of Churches Together in Ashington and Newbiggin. The pastoral support to members and to others from Rev Howell is invaluable. The Rev Howell continued to take a school assembly on a regular basis until the first lockdown in March 2020. This has been suspended for the time being. The church produced a monthly newsletter which was distributed to members and nonmembers up to March and since then there have been a number of updates sent out by the elders, online Zoom coffee mornings, communion sessions and various training sessions and meetings have continued online. In addition, a number of ‘online bridge’ events have been posted with topical local and national/international items being highlighted in a professionally produced format for the benefit of the church members and the wider community. The aim of the Church Bridge events generally is to provide a non-threatening occasion for Church members and those outside the Church, both from other churches and non-church backgrounds to get together usually with food and music while being presented with an element of the Christian message.

A small Sunday School is maintained, and several external events were organised which were available to the children of church members and non-church members. We have continued with a series of bridge meetings for people who have had a connection with the Church over the years or no connection with a church. This is an informal meeting held in a member’s house with 80 or more attending together with an event at a local restaurant with in excess of 120 being there. These of course have been suspended since the first lockdown.

Plans for Future Development

The Church objectives over the next two years will be to safely negotiate a return to normality with the Coffee Shop restarting and Church meetings getting under way again when we are advised it is safe to do so. We aim to develop the new Bridge Meetings venture, and to continue to develop our activities with Church members and to increase our awareness of who we are in the community. We want to continue the use of our premises at 4 Myrtle Street, Ashington for other activities. We also want to increase the working together in partnership with other churches or groups in the area. We are aware of the increased financial contribution needed to sustain the coffee shop over the previous financial year and work was underway to make changes to reduce this financial burden. The coffee shop now has one fewer employee, and we will try to work within this reduced staffing level to reduce costs when the shop reopens. The support of government and local government grants as well as HMRC “furlough” payments has meant that the coffee shop deficit has reduced this year. The trustees felt it was right to top up staff wages to 100% from our reserves in recognition of the flexibility and goodwill shown by the coffee shop employees.

(2)

CROSSROADS CHURCH, ASHINGTON

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020

Activities for the Public Benefit (continued)

The Trustees confirm that they have complied with the duty to have due regard to the Charity Commission’s general guidance on public benefit when reviewing aims and objectives and in the planning of future activities. The Trustees are committed to ensuring that all its acts of worship services are available to all in the local community. No individual is excluded from playing an active part in the affairs of the Church because of race, ethnicity, gender or disability or sexuality or by geographic location unless there are restrictions on them following a DBS check for those who want to work within the children and youth department, this also applies to anyone who wants to become involved with visiting the elderly, sick or a person with a disability within the Church fellowship or in the local community.

The community venues that the Church rents for its Sunday services and for the mid-week meetings and for its other activities during the year are fully accessible. Its meetings are advertised on a regular basis and are promoted on the Church web site.

Achievements and Performance

The Trustees would like to record their thanks to its paid staff and the volunteers at the Coffee Shop and to all Church Officers and also to the Rev Howell for their commitment, support, help and advice that they have given to the Charity during the last financial year, and for their support and help they have given to many church and non-church members.

During the first half of the year until the end of March 2020, active, positive services were held with modern songs and music, and those attending the service were encouraged to participate in the various meetings. It has been pleasing to note that during the current year several different nationalities attended our services.

A vibrant work has continued with children on a Sunday and at various other times including during school holidays. The Church continues to support various missionary or aid work at home or overseas, and during the current year it has contributed from its funds £2,373 to various organisations. The Church has been involved with various ecumenical events in the district.

Financial Review

Surplus for the year

The current year’s surplus of £8,344 is largely due to the unique circumstances of last year when many of our day-to-day activities in the Church and Coffee Shop have had to be suspended. The income of the church has continued due to the faithful giving of our members while there have been fewer outgoings in terms of hall hire, speakers’ fees etc. In addition, the support grants available to the Coffee Shop have helped maintain this venture so it is ready to restart when it is safe to do so.

The Church continues its financial support of its Coffee Shop as it considers this to be a vital part of having a visible presence in the community and in the main shopping thoroughfare in Ashington. No doubt it will be necessary to change some ways of working when we see how things settle down after the pandemic.

The friendly support and care that is given by the staff to many of its elderly customers is greatly appreciated by those customers.

(3)

CROSSROADS CHURCH, ASHINGTON

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020

Review of Financial Results and Reserves

The surplus/(deficit) for the year has been credited/(debited) to reserves as follows: -

2020 2019
£ £
Unrestricted funds 8,344 (6,394)
Restricted funds - -
_ _
Total deficit 8,344 (6,394)
_ _
As a result of this the total reserves at the 30 September 2020 which are to be carried
forward are
General reserves 40,710 32,366
Fixed assets fund 55,000 55,000
_ _
Total reserves carried forward 95,710 87,366
_ _
Income and Expenditure Coffee Coffee
Church Shop
Church
Shop
2020 2020
2019
2019
£ £
£
£
Gross Income (&grants) 24,783 44,530
23,949
47,954
Expenditure 10,766 46,917
17,863
60,145
______ ______
______
______
Surplus/(Deficit) 14.017 (2,387)
6,086
(12,191)
______ ______
______
______
The Church transferred £7,486 (2019 £12,419) from its funds to support the Coffee Shop
during the year.
2020 2019
Summary of Results £ £
Church surplus 14,017 6,086
Coffee Shop deficit (2,387) (12,191)
Add: Bank interest received 101 161
Other – Redundancy provision (2,937) 0
______ ______
8,794 (5,944)
Less: Governance costs 450 450
______ ______
Net Surplus / (Deficit) 8,344 (6,394)
______ ______
The Net Assets of the Charity
as at 30 September 2020 were 95,710 87,366
______ ______

Trustees Expenses

No Trustees were reimbursed expenses incurred in their roles as Trustee or as Church Elder.

(4)

CROSSROADS CHURCH, ASHINGTON

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020

Structure, Governance and Management

Crossroads Church was constituted by a Declaration of Trust on 8 December 1982. A new Declaration of Trust dated 23 June 2005 supersedes this.

Crossroads Church is a membership organisation and is managed by appointed Elders and with other appointed Church Officials and Trustees. Regular formal management meetings are held throughout the year. The Church has its own constitution for the governance of the spiritual and moral welfare of its religious activities The Church holds an Annual General Meeting and also other regular meetings. The members receive details of the business of the meetings through the publishing of the minutes in the monthly newsletter.

Staffing

The Church employs a full-time manager and one part time catering assistants at its Coffee Shop. They also retain the freelance services of the Rev B Howell for pastoral support and other ministry duties.

Report of a Serious Incident

The Trustees confirm that they have not had to report any serious incident or issue to the Charity Commission in this financial year.

The Church members responsible for safeguarding issues are Mrs C. Rogers and Mr D.Bruce

Policy for Monitoring and Review

The level of reserves and the financial affairs of the Charity are monitored on a regular basis. An annual review is also undertaken to ensure that the overall level of reserves continues to meet the needs of the Charity.

Risk Strategy

The major risks to which the Charity is exposed to is reviewed on a regular basis, and the Trustees are aware that with an ageing congregation, that new robust initiatives need to be put in place over the next few years to address this problem. The Trustees along with other Church officials are continuing to review policies and procedures to ensure that they comply with current legislation. There are also the risks caused by the COVID-19 pandemic preventing us as a church and as the Coffee Shop from pursuing our normal routines and practices and we will continue to follow government guidance on when and how we can safely resume activities.

(5)

CROSSROADS CHURCH, ASHINGTON

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2020

Reference and Administration Details Charity Name Crossroads Church Charity Number 513430 Principal Address 109 Front Street Newbiggin by the Sea Northumberland NE64 6AD Board of Trustees W G S Rogers V Addison M J Graham Independent Examiner I Smith Smiths Accountants & Tax Advisers 8 Linnet Court Alnwick Northumberland NE66 2GD Bankers Unity Trust Bank plc Nine Brindley Place Birmingham B1 2HR

The Trustees conclude their Annual Report in recording their sincere thanks to the staff at the Coffee Shop, the volunteers, the Church officials, the worship and musical teams and all other participants who have contributed to the church activities during the last financial year.

Approval

This report was approved by order of the Board of Trustees on 30 June 2021 and signed on its behalf by

………………………………………………… W G S Rogers Trustee

………………………………………………… M J Graham Trustee

(6)

CROSSROADS CHURCH, ASHINGTON

STATEMENT OF THE TRUSTEES RESPONSIBILITIES

Charity law requires the Trustees to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its financial activities for that period. In preparing those Financial Statements the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the accounts comply with current legislation. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.

(7)

INDEPENDENT ACCOUNTANTS REPORT TO THE TRUSTEES OF CROSSROADS CHURCH, ASHINGTON FOR THE YEAR ENDED 30 SEPTEMBER 2020

I report to the trustees on my examination of the accounts of Crossroads Church for the year ended 30 September 2020.

Responsibilities and basis of report

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

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

Independent examiner’s statement

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

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

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

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

I Smith (ACA) Smiths Accountants & Tax Advisers Ltd Chartered Accountants 8 Linnet Court Cawledge Business Park Alnwick Northumberland NE66 2GD

30 June 2021

(8)

CROSSROADS CHURCH, ASHINGTON

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2020

Unrestricted Restricted
Note
Funds
Income
Funds
£
£
Incoming Resources
Income and endowment from:
Donations and legacies
24,783
-
Charitable activities
44.530
-
Investments
101
-
Other
-
-
_ _
Total
3
69,414
-
_ _
Resources Expended
Expenditure on:
Charitable activities
60,620
-
Governance cost
450
-
_ _
Total
4
61,070
-
_ _
Net income/(expenditure)
8,344
-
Reconciliation of funds
Total funds brought forward
87,366
-
__ _
Total funds carried forward
10
95,710
-
_ _____
2020
Total
Funds
£
24,783
44,530
101
-
_
69,414
_
60,620
450
_
61,070
_
8,344
87,366
_
95,710
_
2019
Total
Funds
£
23,949
47,954
161
0
_
72,064
_
78,008
450
_
78,458
_
(6,394)
93,760
_
87,366
_

The statement of financial activities includes all gains and losses in the year. All incoming recourses expended derive from continuing activities.

(9)

CROSSROADS CHURCH, ASHINGTON

BALANCE SHEET AS AT 30 SEPTEMBER 2020

Note
Unrestricted Restricted
Funds
Income
Funds
£
£
Fixed assets
Tangible assets
6
55,000
-
Current assets
Stocks
1,300
-
Debtors
7
342
-
Cash in hand and at bank
8
52,281
-
_ _
53,923
-
Creditors:Amounts falling
due within one year
9
13,213
-
_ _
Net current assets / (liabilities)
40,710
-
_ _
Total assets less current liabilities
95,710
-
_ _
Funds of the charity
Restricted income funds
-
-
Unrestricted funds
95,710
-
_ _
Total funds
10
95,710
-
_ _
2020
Total
Funds
£
55,000
1,300
342
52,281
_
53,923
13,213
_
40,710
_
95,710
_
-
95,710
_
95,710
_
2019
Total
Funds
£
55,000
1,300
309
42,619
_
44,228
11,862
_
32.366
_
87,366
_

-
87,366
_
87,366
_

The financial statements were approved by the Board of Trustees on 30 June 2021 and were signed on its behalf by:

……………………………………… W G S Rogers Trustee

The notes on pages 11 to 15 form part of the financial statements

(10)

CROSSROADS CHURCH, ASHINGTON

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

1. BASIS OF PREPARATION

Basis of accounting

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain financial assets and liabilities and properties measured at fair value through the statement of financial activities. 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 (FRS102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS102. The financial statements have been prepared on the going concern basis which assumes that the Charity will continue in operational existence for the foreseeable future.

Transition to FRS102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 October 2015.

2 . ACCOUNTING POLICIES

Income

The main source of income is from Church donations and Coffee Shop sales with provision being made for any outstanding accounts at the end of the financial year. In the last year government and local government grants have supported the coffee shop finances during the covid pandemic.

Expenditure

This includes Expenses of the Charity with provision being made for any outstanding accounts at the end of the financial year.

Expenditure on items of equipment is written off in the Income and Expenditure Account in the year of purchase.

Depreciation

The Coffee Shop freehold and property improvements have not been depreciated as fair value has been applied.

Stocks

Stock items are valued at cost.

Fund Accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

(11)

CROSSROADS CHURCH, ASHINGTON

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

3.
ANALYSIS OF INCOME
Donations from church services
Gift aid reclaimed
Coffee shop sales
Bank interest
Other/grant support
TOTAL INCOME
4.
ANALYSIS OF EXPENDITURE
The analysis of the total resources expended is:
Church Running Costs
Ministry Cost
Charity Giving
Premises Rent and Equipment
Administration
Coffee Shop
Wages
Purchases
Premises Running Cost
Administration
Amendment to redundancy provision
Total Resources expended on charitable activities
The analysis of the Governance cost is:
Independent Examiner’s Remuneration
Total unrestricted resources expended

2020
£
21,270
3.513
24,213
101
20,317
_
69,414
_
3,629
2,373
3,264
1,500
_
10,766
_
32,734
6,907
4,964
2,312
2,937
_
49,854
_
60,620
_
450
_
450
_
61,070
_
_
2019
£
20,812
3,137
47,954
161
-
_
72,064
_

6,052
3,050
6,847
1,914
__
17,863
______
39,988
12,336
6,054
1,767
-
_
60,145
______
78,008
______
450
___
450
______
78,458
______
_

_

_

(12)

CROSSROADS CHURCH, ASHINGTON

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

5. PAID EMPLOYEES

The average monthly number of employees during the year was three. No employee received emoluments in excess of £60,000.

6. TANGIBLE FIXED ASSETS

Freehold Total Total
Property 2020 2019
£ £ £
Cost or Valuation
As at 1 October 2019 55,000 55,000 55,000
Disposals - - -
_ _ _
As at 30 September 2020 55,000 55,000 55,000
_ _ _
Depreciation
As at 1 October 2019 - - -
Charge for the year - - -
Disposals - - -
_ _ _
As at 30 September 2020 - - -
_ _ _
Net book value at 30 September 2020 55,000 55,000 55,000
_ _ ______

The charity owns the freehold property of the Church Coffee Shop at 4 Myrtle Street, Ashington. The gross cost was £51,900; a grant of £25,000 was received from the Coalfields Regeneration Trust leaving a net cost of £26,900. Some improvements have been carried out to the premises and the net cost to Church funds after grants received was £11,817. The net investment in property is therefore £38,717. The property was assessed in April 2018 by an independent professional valuer. The fair value of the property is estimated to be £55,000 and an appropriate adjustment has been made in the accounts. No depreciation charge is necessary.

7.
DEBTORS
Coffee Shop Accounts
2020
£
342
2019
£
309

(13)

CROSSROADS CHURCH, ASHINGTON

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

2020
£
8.
CASH AT BANK
The bank balances at 30 September 2020 were as follows:
Church deposit account
35,525
Church main account
10,958
Coffee Shop Account
5,698
Cash in hand
100
_
52,281
_
2020
£
9.
CREDITORS
All are due for payment within one year.
Sundry Coffee Shop accounts
726
Sundry Church accounts
450
Redundancy Liability
12,037
_
13,213
_
10.
CHARITY FUNDS
Analysis of net assets between funds
Unrestricted RestrictedDesignated
Funds
Funds
Funds
£
£
£
Fund balances at 30 September 2020
are represented by:
Tangible fixed assets
55,000
-
-
Net current assets
40,710
-
-
_ _ _
Total net assets
95,710
-
-
_ _ _
_
2019
£
36,080
5,721
718
100
__
42,619
______
2019
£
812
1,950
9,100
_
11,862
______
Total
£
55,000
40,710
_
95,710
____

_

11. CHARITABLE RATES RELIEF

The Charity has received the statutory 80% rates relief in respect of its freehold property at 4 Myrtle Street, Ashington.

(14)

CROSSROADS CHURCH, ASHINGTON

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

12. CAPITAL COMMITMENTS

There were no capital commitments as at 30 September 2020.

13. PENSIONS

A workplace pension scheme with auto enrolment is now in operation for eligible staff.

14. RELATED PARTY TRANSACTIONS

There were no material transactions with related parties during the year.

15. CHARITABLE GIVING

The gifts made by the Church during the year were £2,373 (2019: £3,050). They were made to the following:

2020 Samaritan’s Purse 600 Compassion 318 Open Doors 600 Premier Radio 600 Australian gift 200 In House Gifts 55 _ TOTAL 2,373 _

16. ULTIMATE CONTROLLING PARTY

In the opinion of the trustees, although they have the legal responsibility for the safeguarding of the assets of the Charity, the ultimate control of the Charity is with the membership of the Church.

(15)