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2020-12-31-accounts

REGISTERED CHARITY NUMBER: 516297

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 FOR

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

Gordon Down & Partners Statutory Auditor 144 Walter Road Swansea SA1 5RW

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 9
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Cash Flow Statement 13
Notes to the Financial Statements 14 to 22

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of 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 2015).

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice 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 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The aims and objectives of the charity are to promote the advancement of the Christian faith and the worship of God in the county of Gwent and elsewhere, and it has its principal office in Newport.

Significant activities

The Trust's work is all undertaken in pursuance of its objective of the advancement of the Christian Faith and the worship of God.

Grantmaking

As in past years the church has contributed financially to other ministries which hold to shared objectives. The Trustees approve all grants made.

Volunteers

While employing a number of full time staff the charity also has numerous volunteer helpers who are responsible for the support of many activities in the church. It is not possible to place a monetary value on the contributions made by volunteers nor are figures available that show how many hours of service they provide.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

When considering our activities for the year, the church has considered the Charity Commission's guidance on public benefit and in particular the specific guidance on charities for the advancement of religion.

This year, like everyone, we have experienced unprecedented times and unforeseen challenges throughout the Covid-19 pandemic. All of our services and projects were abruptly stopped during the national lockdown, with only a few key ministries that were able to be delivered through online provision.

The Sunday morning services were considered a priority for the New Life Trust and pre-recorded services were streamed over the internet. We are grateful for the resilience of our members and the adaptability of our staff and volunteers to provide an online service every week through the pandemic. Regular weekly activities that gathered members and visitors together were stopped: these included Legacy Ministry, Teens Ministry and Mother and Toddler groups.

Page 1

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENT AND PERFORMANCE Charitable activities – continued

The Foodbank Project on the other hand saw a huge increase in demand for its services as people were furloughed or lost their jobs. During this crisis a new partnership was established with Newport City Council and other agencies across the city, coming together to set up an emergency telephone helpline to support families in Food crisis. The Foodbank continued to operate from a central distribution centre at the Citizens Advice Bureau Centre (CAB) in Newport Town Centre. Unfortunately, because of restriction and Covid-19 secure working practices, the foodbank was not able to provide food to the public directly. Through the hard work of all involved, the agencies working with the most vulnerable in the city delivered food parcels to their clients. Subsequently volunteers from churches in Newport also assisted in the delivery of food to those in need. In 2020 the Newport Foodbank project fed 3,064 adults and 1,938 children. It is expected that this project will continue into 2021 with a similar demand as the effect of the Covid-19 pandemic continues to impact people’s lives in Newport.

New Life Trust continued the initiative called “Gospel Communities” developing a network of small groups across the church. This provision was moved online with groups connecting for bible studies, prayer meetings, book clubs and social events. It has been wonderful to witness our church members continuing to care for one another even through online meeting platforms.

Ministries like Legacy and Mercy Multiplied continued to operate by simply connecting with our members and those in the community with regular phone calls and check in points. We were able to serve the most vulnerable with shopping and medicine deliveries.

The Christchurch Centre and the church office were able to be maintained by our church administrator covering the essentials like building security, finance, health and safety, as well as offering support to furloughed staff and volunteers in the Foodbank.

The Trustees would like to express their gratefulness for the staff and volunteers who have gone the extra mile in their preparation to allow the church to meet together in person where possible within Government Guidelines. We would also like to express our gratitude for the church members who have faithfully and generously supported the church financially throughout this challenging year.

Trading subsidiary

In 2009 the Trustees formed a new company, Christchurch Conference Centre Limited, for the purpose of processing the income generated by the hire of conference facilities and related services at the charity's premises to local businesses and interest groups.

The company, which is limited by guarantee and controlled by the Trustees of New Life Trust, was set up in line with current Charity Commission guidance which states that a trading subsidiary must be used in order to remove any significant risk to the assets of the Charity which would arise if the charity were to carry on non-primary purpose trading itself.

For the year to 31 December 2020 the company has made rental and other payments to the Trust and is repaying a loan that the Trust made to it upon which it is paying interest.

Page 2

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENT AND PERFORMANCE

FINANCIAL REVIEW

Financial position

Total incoming resources for the year of £620,438 (2019 - £591,961) consists largely of donations received of £513,857 (2019 - £472,919) and tax refunds of £81,704 (2019 - £90,098). A significant proportion of the total expenditure of £560,356 (2019 - £565,825) relates to ministry support and salaries, ministry expenses and grants to institutions and individuals.

Income exceeded resources expended by £60,082 (2019 income exceeded resources expended by £26,136).

The charity has sufficient funds to meet all its financial requirements. At 31 December 2020 the charity's funds totalled £1,434,375 (2019 - £1,374,293).

Reserves policy

The trustees have examined the level of reserves held at the year end in light of the main risks facing the organisation. A policy has been established to maintain sufficient free reserves equivalent to up to one month's operating costs where possible. This is estimated to be approximately £47,000.

The free reserves of a charity represent the funds that are freely available to spend. In calculating the free reserves the trustees have deducted from the total of unrestricted funds any funds designated at the year end and the net book value of the freehold property and other tangible fixed assets as detailed in the accounts after adjusting for associated borrowing. At 31 December 2020 free reserves were £393,314 (2019 - £358,918) which is greater than the target set. No funds were designated at the year end (2019 - £nil).

The policy is reviewed by the trustees on an ongoing basis.

Going concern

Having considered budget and cash flow projections for the next twelve months and after making due allowance for the impact of the Covid-19 pandemic on the Trust, the Trustees are confident that the Trust will continue to meet its liabilities as they fall due for the foreseeable future and consider that there are no material uncertainties about the Trust's ability to continue as a going concern. It is therefore considered appropriate by the Trustees to prepare the financial statements on a going concern basis.

FUTURE PLANS

The church is committed to its objectives of advancing the Christian faith and the worship of God in the county of Gwent and elsewhere. Its Trustees believe that its existing activities have begun to achieve these ends. Consequently no significant changes in activities are planned for the forthcoming year.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.

The charitable trust was formed on 6 April 1984 and registered as a charity on 28 March 1985.

The trust is governed by its Trust Deed, which establishes the objects and powers of the charity. Under the Trust Deed, the Trustees are elected to serve for an indefinite period.

Recruitment and appointment of new trustees

The Trust Deed provides for a minimum of three Trustees. Each Trustee must be appointed by a resolution of the Trustees passed at a special meeting.

Page 3

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

The Charity controls a non-charitable Subsidiary, Christchurch Conference Centre Limited, a company limited by guarantee, the activities and trading performance of which are discussed at page 3 and page 22 notes 22 and 24.

The charity is governed by its Trustees, who meet regularly to review reports presented to them by the administrative team which is entrusted with the implementation of the Trustees' decisions.

Induction and training of new trustees

The Trustees are responsible for the induction of any new Trustee. This involves making them aware of a Trustee's responsibilities and of the nature of the governing document and administrative procedures. A new Trustee would receive a copy of the charity's Trust Deed together with a copy of the charity's latest Annual Report and Accounts.

Key management remuneration

The board of Trustees together with those exercising an ordained ministry to the church are considered to be the key management personnel of the charity. Details of payments to Trustees under contracts for services are disclosed in note 9 to the accounts. Payments to other key management personnel are given at note 22.

The level of payments made to all key management personnel is reviewed annually by those Trustees who receive no payment from the church. In view of the nature of the church, the Trustees consider that payments to key management personnel should be bench-marked against salaries paid to teachers and others working in schools. It should be noted however, that payments to be made by the church are to be set at a discount against the remuneration of staff in the state education sector.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The Trustees have conducted their own review to identify the major risks to which the charity is exposed and, where at unacceptable levels, have taken steps to mitigate those risks. These procedures are periodically reviewed to ensure that they still meet the needs of the charity. The principal risks facing the charity and a summary of the key mitigation actions, are noted in the table below.

Risk

Mitigating Actions

A major property incident

Loss of key personnel

Page 4

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 516297

Principal address

BT Compound Malpas Road NEWPORT NP20 5PP

Trustees

P Greasley D Reed S Martin (resigned 3 August 2021) R McCan S Woolley V Morse S Morris (appointed 2 June 2020) A Rees (appointed 2 June 2020) A Woods

(appointed 2 June 2020) (appointed 2 June 2020) (appointed 2 June 2020)

Auditors

Gordon Down & Partners Statutory Auditor 144 Walter Road Swansea SA1 5RW

Bankers

Barclays plc 121 Queen Street Cardiff CF10 2XU

Page 5

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 the incoming resources and application of resources, including the income and expenditure, of the charity 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 financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the board of trustees on 29 October 2021 and signed on its behalf by:

R McCan - Trustee

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NEW LIFE TRUST OPERATING AS CHRISTCHURCH

Opinion

We have audited the financial statements of New Life Trust (the 'charity') for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet, cash flow statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NEW LIFE TRUST OPERATING AS CHRISTCHURCH

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' annual report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

• the information given in the trustees' report is inconsistent in any material respect with the financial statements; or

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement set out on page 6, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our audit procedures were designed to respond to the identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements.

Our audit procedures included, but were not limited to:

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NEW LIFE TRUST OPERATING AS CHRISTCHURCH

Auditor's responsibilities for the audit of the financial statements (continued)

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

• Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Section 145 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Gordon Down & Partners Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 144 Walter Road Swansea SA1 5RW

Date: 29 October 2021

Page 9

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations
2
479,565
Other trading activities
3
643
Investment income
4
12,839
Total
493,047
EXPENDITURE ON
Charitable activities
Advancement of the Christian faith 5
454,307
NET INCOME
38,740
RECONCILIATION OF FUNDS
Total funds brought forward
1,356,222
TOTAL FUNDS CARRIED FORWARD
1,394,962		 31.12.20
31.12.19
Restricted
funds
Total funds
Total funds
£
£
£
127,391
606,956
563,017
-
643
1,599
-
12,839
27,345
127,391
620,438
591,961
106,049
560,356
565,825
21,342
60,082
26,136
18,071
1,374,293
1,348,157
39,413
1,434,375
1,374,293

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 10

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

BALANCE SHEET AT 31 DECEMBER 2020

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
12
1,010,559
CURRENT ASSETS
Stocks
-
Debtors
14
139,045
Cash at bank and in hand
278,375
417,420
CREDITORS
Amounts falling due within one year
15
(33,017)
NET CURRENT ASSETS
384,403
TOTAL ASSETS LESS CURRENT
LIABILITIES
1,394,962
CREDITORS
Amounts falling due after more than one year 16
-
NET ASSETS
1,394,962
FUNDS
20
Unrestricted funds
Restricted funds
TOTAL FUNDS		 31.12.20
31.12.19
Restricted
funds
Total funds
Total funds
£
£
£
965
1,011,524
1,019,640
4,550
4,550
6,386
1,923
140,968
164,932
52,880
331,255
241,521
59,353
476,773
412,839
(20,905)
(53,922)
(49,238)
38,448
422,851
363,601
39,413
1,434,375
1,383,241
-
-
(8,948)
39,413
1,434,375
1,374,293
1,394,962
1,356,222
39,413
18,071
1,434,375
1,374,293

The financial statements were approved by the Board of Trustees on 29 October 2021 and were signed on its behalf by:

R McCan -Trustee

The notes form part of these financial statements

Page 11

NEW LIFE TRUST OPERATING AS CHRISTCHURCH

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities:
Cash generated from operations
1
Interest paid
Net cash provided by/(used in) operating
activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Disposal proceeds from sale of fixed assets
Interest received
Gift aid donations from group undertaking
Net cash (used in)/provided by investing
activities
Cash flows from financing activities:
Loan repayments in year
Government grant income
Net cash (used in) financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period
2		 31.12.20
£
108,704
(564)
108,140
(20,557)
-
2,412
-
(18,145)
(11,656)
11,395
(261)
89,734
241,521
331,255		 31.12.19
£
932
(1,093)
(161)
(10,224)
-
1,161
10,000
937
(11,128)
(11,128)
(10,352)
251,873
241,521

The notes form part of these financial statements

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NEW LIFE TRUST OPERATING AS CHRISTCHURCH

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
31.12.20 31.12.19
£ £
Net income for the reporting period (as per the statement of financial
activities) 60,082 26,136
Adjustments for:
Depreciation charges 28,667 27,839
Government grant income (11,395) -
Loss on disposal of fixed assets 6 -
Interest received (2,412) (1,161)
Interest paid 564 1,093
Gift aid donation from group undertaking (-) (10,000)
Decrease in stock 1,836 2,464
Decrease/(Increase) in debtors 23,964 (60,037)
Increase in creditors 7,392 14,598
Net cash provided by operating activities 108,704 932
2. ANALYSIS OF CASH AND CASH EQUIVALENTS
31.12.20 31.12.19
£ £
Cash at bank and in hand 331,255 241,521

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NEW LIFE TRUST OPERATING AS CHRISTCHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared to give a "true and fair view" and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a "true and fair view". This departure has involved following 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 2015) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective 1 April 2005 which has since been withdrawn.

The Trustees have opted to report expenditure using categories based on the nature of costs incurred rather than on an activity basis.

Going Concern

After giving due consideration to the impact of the Covid-19 pandemic on the Trust, the Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern. It is therefore considered appropriate by the Trustees to prepare the financial statements on a going concern basis.

Income recognition

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Volunteers and donated goods and services

The value of services provided by volunteers is not incorporated into these financial statements.

Where goods or services are provided to the charity as a donation that would normally be purchased from suppliers, this contribution is included in the financial statements at an estimate based on the value of the contribution to the charity.

Goods donated and held as stock for distribution by the charity, including food items donated to a food bank, are recognised as incoming resources within voluntary income when received. An equivalent amount is included as part of resources expended when stock is distributed.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost 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 resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Allocation and apportionment of costs

Overhead and support costs have been allocated directly or apportioned on an appropriate basis between Charitable Activities and Governance Costs where appropriate.

Financial instruments

The Trust’s financial assets and financial liabilities are all of a kind that qualify as basic financial instruments which are recognised initially at transaction value and are subsequently valued at their settlement value.

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NEW LIFE TRUST OPERATING AS CHRISTCHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold land & property - 0% on land and 2% on buildings Fixtures, fittings and equipment - 25% on cost Motor vehicles - 25% on cost

Fixed assets are stated at cost less accumulated depreciation. The costs of minor additions or those costing below £100 are not capitalised. Fixed assets are subject to review for impairment when there is an indication of a reduction in their carrying value. Any impairment is recognised in the Statement of Financial Activities in the year in which it occurs.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

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

Included within the charity's unrestricted funds are any designated funds. These are amounts earmarked by the Trustees to be used for particular purposes in the future. The Trustees have the power to re-designate such funds within unrestricted funds.

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.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2. DONATIONS

Advancement of the Christian Faith
Donations
Tax reclaims on donations		 Unrestricted
£
398,841
80,724
479,565		 Restricted
£
126,411
980
127,391		 Total 2020
£
525,252
81,704
606,956		 Total 2019
£
472,919
90,098
563,017

Restricted income noted above consists of £5,555 given to the Mercy Fund and £120,856 given to the Food Bank. A substantial proportion of Food Bank income is received in the form of food for distribution to beneficiaries of the scheme.

3. OTHER TRADING ACTIVITIES

31.12.20 31.12.19
£ £
Fundraising events 643 1,599
Room hire - -
643 1,599

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NEW LIFE TRUST OPERATING AS CHRISTCHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020

4. INVESTMENT INCOME

31.12.20 31.12.19
£ £
Service charge - trading subsidiary 6,427 12,184
Rental for telecom mast 4,000 4,000
Gift Aid donation from group undertaking - 10,000
Deposit account interest 307 771
Interest receivable 2,105 390
12,839 27,345

5. CHARITABLE ACTIVITIES COSTS

Direct costs
Grant funding
of activities
Support costs
(See note 6)
(See note 7)
(See note 8)
£
£
£
Advancement of the Christian faith
325,345
16,715
218,296
DIRECT COSTS OF CHARITABLE ACTIVITIES
31.12.20
£
Ministry support
202,587
Ministry expenses
11,288
Church management, development & planning
712
Catering
4,124
Children's and youth work
3,824
Church outings and activities
5,378
Books and cds
2,344
Lighting and heating
13,415
Evangelism
17,946
Food Bank
59,684
Motor expenses
3,478
Loan interest
564
325,345
GRANTS PAYABLE
31.12.20
£
Advancement of the Christian faith
16,715
The total grants paid to institutions during the year was as follows:
31.12.20
£
Co:Mission UK
-
Other
50
50		 Totals
£
560,356
31.12.19
£
193,830
12,559
1,071
5,248
7,210
36,037
2,199
15,855
15,397
59,701
2,334
1,093
352,534
31.12.19
£
18,496
31.12.19
£
5,173
328
5,501

6. DIRECT COSTS OF CHARITABLE ACTIVITIES

7. GRANTS PAYABLE

During the year £16,665 (2019 - £12,995) of the total grants payable were paid to individuals.

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NEW LIFE TRUST OPERATING AS CHRISTCHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020

8. SUPPORT COSTS

Management
Governance
costs
£
£
Advancement of the Christian faith
209,943
8,353
Support costs, included in the above, include:
Governance costs
31.12.20
Advancement
of the
Christian faith
£
Auditors' remuneration
3,680
Auditors' remuneration - non-audit services
3,010
General administrative costs
1,663
8,353		 Totals
£
218,296
31.12.19
Total
activities
£
3,384
2,646
2,230
8,260

9. TRUSTEES' REMUNERATION AND BENEFITS

The Charity's Trust Deed makes provision for payments to be made to Trustees.

Ministry support of £202,587 (2019 - £193,830) contains support payments to two Trustees who devoted the majority of their time to the service of the church.

The Trustees receiving payments under contracts for services and the amounts paid are as follows:-

31.12.2020 31.12.2019
£ £
Ministry Support
P Greasley Support received 54,581 52,371
Donations made to New Life Trust (7,200) (7,350)
47,381 45,021
R McCan Support received
43,959		 36,081
Donations made to New Life Trust (5,740) (6,350)
38,219 29,731

Donations made to New Life Trust

The aggregate value of unconditional donations made by the Trustees in the year to 31 December 2020 including those noted above was £53,825.

Trustees' expenses

There were no Trustees' expenses paid for the year ended 31 December 2020.

In many instances the Trustees act as agents for the charity and make purchases on its behalf, using credit cards to meet the costs of travel or to purchase books or other items in the same way as other personnel of the Charity. Such expenditure is not related to the services provided as a Trustee.

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NEW LIFE TRUST OPERATING AS CHRISTCHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020

10. STAFF COSTS

31.12.20 31.12.19
£ £
Wages and salaries 106,946 86,894
Social security costs 1,709 1,823
Other pension costs 4,056 4,179
112,711 92,896
The average monthly number of employees during the year was as follows:
31.12.20 31.12.19
Management and administration 9 8
No employees received emoluments in excess of £60,000.

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations
480,811
Other trading activities
1,599
Investment income
27,345
Total
509,755
EXPENDITURE ON
Charitable activities
Advancement of the Christian faith
477,150
Total
477,150
NET INCOME
32,605
RECONCILIATION OF FUNDS
Total funds brought forward
1,323,617
TOTAL FUNDS CARRIED FORWARD
1,356,222		 Restricted
funds
Total funds
£
£
82,206
563,017
-
1,599
-
27,345
82,206
591,961
88,675
565,825
88,675
565,825
(6,469)
26,136
24,540
1,348,157
18,071
1,374,293

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NEW LIFE TRUST OPERATING AS

CHRISTCHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020

12. TANGIBLE FIXED ASSETS

Freehold land
& property
£
COST
At 1 January 2020
1,368,788
Additions
7,785
Disposals
-
At 31 December 2020
1,376,573
DEPRECIATION
At 1 January 2020
361,840
Charge for year
19,531
Eliminated on disposal
-
At 31 December 2020
381,371
NET BOOK VALUE
At 31 December 2020
995,203
At 31 December 2019
1,006,948		 Fixtures,
fittings and
equipment
£
149,991
12,772
(2,589)
160,174
138,550
8,511
(2,583)
144,479
15,695
11,442		 Motor
vehicles
£
22,469
-
-
22,469
21,219
625
-
21,844
626
1,250		 Totals
£
1,541,248
20,557
(2,589)
1,559,217
521,609
28,667
(2,583)
547,693
1,011,524
1,019,640

At the balance sheet date the charity's property at Malpas Road, Newport was valued at £2,000,000 by the Trustees. This valuation is not reflected in these financial statements.

13. STOCK
31.12.20 31.12.19
£ £
Food Bank stock 4,550 6,386
14. DEBTORS
31.12.20 31.12.19
£ £
Amounts falling due within one year:
Tax reclaims on donations 20,141 20,116
Other debtors and prepayments 27,827 20,298
Amounts due from trading subsidiary 34,797 56,903
82,765 97,317
Amounts falling due after more than one year:
Amounts due from trading subsidiary 58,203 67,615
Aggregate amounts 140,968 164,932
15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.20 31.12.19
£ £
Bank loans and overdrafts (see note 17) 8,920 11,629
Social security and other taxes 1,339 924
Sundry creditors and accruals 43,663 36,685
53,922 49,238

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NEW LIFE TRUST OPERATING AS CHRISTCHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.20 31.12.20 31.12.19
£ £
Bank loans (see note 17) - 8,948
17. LOANS
An analysis of the maturity of loans is given below:
31.12.20 31.12.19
£ £
Amounts falling due within one year on demand:
Bank loan 8,920 11,629
8,920 11,629
Amounts falling due between two and five years:
Bank loan due between 2 and 5 years - 8,948
Amounts falling due in more than five years:
Repayable by instalments:
Bank loan - -
18. OPERATING LEASE COMMITMENTS
The total of future minimum lease payments under non-cancellable
operating leases fall due as follows:
31.12.20 31.12.19
£ £
Within one year 2,730 2,673
Between one and five years - -

The total of operating lease payments recognised as an expense in the year to 31 December 2020 was £2,734 (2019 - £2,031).

19. SECURED DEBTS

The following secured debts are included within creditors:

Bank loans 31.12.20
£
8,920		 31.12.19
£
20,577

The Charity's bank loan is secured by a first charge over the charity's property and represents some 0.90% (2019 – 2.04%) of the property's net book value at 31 December 2020.

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NEW LIFE TRUST OPERATING AS

CHRISTCHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020

20. MOVEMENT IN FUNDS

Unrestricted funds
General Fund
Restricted funds
Mercy Fund
Food Bank
TOTAL FUNDS
Net movement in funds, included in the above a
Unrestricted funds
General fund
Restricted funds
Mercy Fund
Food Bank
TOTAL FUNDS		 At 1.1.20
Net
movement in
funds
£
£
1,356,222
38,740
15,661
(3,756)
2,410
25,098
18,071
21,342
1,374,293
60,082
re as follows:
Incoming
resources
£
493,047
6,535
120,856
127,391
620,438		 Transfers
At 31.12.20
£
£
-
1,394,962
-
11,905
-
27,508
-
39,413
-
1,434,375
Resources
expended
Movement in
funds
£
£
(454,307)
38,740
(10,291)
(3,756)
(95,758)
25,098
(106,049)
21,342
(560,356)
60,082

Mercy fund

The Mercy fund was set up to provide support for the current Mercy Ministry projects that New Life Trust is undertaking in Newport. These include the Night Shelter and Food Bank. It is anticipated that new Mercy projects will be started and supported by this fund. Donations received in the year and the associated Gift Aid receivable, totalled £6,535 (2019 - £7,259). At the year end funds of £11,905 were represented by a bank balance and a debtor.

Food Bank

Prior to 2018 the church had assisted the Gaweda Trust to run a Food Bank for Newport. On 23 March 2018 the assets of the Gaweda Trust were transferred to the church which then agreed to run the Newport Food Bank in partnership with the Trussell Trust. Donations received in the year totalled £120,856 (2019 - £74,947). The majority of Food Bank income is received in the form of grants from the Trussell Trust and of food for distribution to beneficiaries of the scheme. Donated food is translated into monetary terms using figures provided by the Trussell Trust. At the year end funds of £27,508 were represented by the net value of stock, a bank balance, fixed assets, creditors and debtors.

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NEW LIFE TRUST OPERATING AS CHRISTCHURCH

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2020

21. PENSION COMMITMENTS

The charity operates a defined contributions pension scheme for five employees. During the year the company paid £4,056 (2019 - £4,179) into the scheme. At the balance sheet date there were no outstanding or prepaid contributions.

22. RELATED PARTY DISCLOSURES

The following transactions took place between the Charity and its non-charitable trading Subsidiary Christchurch Conference Centre Limited: -

During the year, Peter Greasley and Robert McCan, who are both Trustees of New Life Trust, incurred expenses as agents of the Charity relating to their work for the Charity. Such expenditure is not related to services they have provided to the Charity as Trustees and represents expenditure paid for by credit card to meet the costs of travel or to purchase books or other items when performing their duties in furtherance of the Charity's objects.

During the year payments totalling £47,976 were made to G Smith an ordained deacon under a contract for services. Payments totalling £40,237 were made to L Roderick an ordained elder under a contract for services.

23. DONATED SERVICES

Much of the work of the charity is carried out voluntarily by its members. No adjustment has been made to the accounts for the estimated value of these services as the Trustees do not consider that any financial cost has been borne by any third party. The Trustees do not permit volunteers to work more than 25 hours per week for the charity.

24. SUBSIDIARY

The Trustees of New Life Trust exercise a dominant influence over Christchurch Conference Centre Limited, a company limited by guarantee which is considered to be a subsidiary of the Trust. The charity has produced accounts which show only the affairs of the charity as the group which it controls falls within the definition of a small group. Christchurch Conference Centre Limited reported a profit after taxation of £5,185 for the year (2019 - £4,972) No Gift Aid payments were made to New Life Trust by the company for the year (2019 - £10,000). The company's net assets at 31 December 2020 totalled £11,026 (2019 - £5,841). No valuation has been placed on the company in the accounts of the Trust as no costs have been borne by the Trust in relation to it. Further details regarding the subsidiary are given above in the note on Related Party Disclosures.

Page 22