Charity registration number NIC107211
Company registration number NI666902 (Northern Ireland)
OPEN ARMS CHURCH LIMITED
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023
OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr R S Foster Mr B Milligan Mr A Barr Charity number NIC107211 Company number NI666902 Registered office 6 Breagh Lodge Portadown Craigavon Co Armagh BT63 5YW Independent examiner GMcG PORTADOWN 17 Mandeville Street Portadown Craigavon Co Armagh BT62 3PB Bankers Co-Operative Bank Delf House Southway Skelmersdale WN8 6WT
(Appointed 1 September 2023) (Appointed 1 September 2023)
OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 - 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 12 |
OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JANUARY 2023
The trustees present their report and financial statements for the year ended 31 January 2023.
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 charitable company's Articles of Association, the Companies Act 2006 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)” (as amended for accounting periods commencing from 1 January 2019).
Objectives and activities
The objectives of the charitable company are set out in the Memorandum of Association of Open Arms Church Limited. They include:-
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To advance the Christian faith.
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To relieve persons who are in conditions of need or hardship or who are aged or sick and to relieve the distress caused thereby.
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To advance education in accordance with Christian principals.
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To promote and fulfil such other charitable purposes beneficial to the community.
The trustees have paid due regard to guidance issued by the Charity Commission for Northern Ireland in deciding what activities the charitable company should undertake.
Achievements and performance
During the year to 31 January 2023 the charitable company received donations and undertook the promotion of their above objectives. The charitable company continues to operate a helpline from the church helping the local community with grocery and prescription deliveries as well as providing meals for those in need.
Other activities included:-
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a holiday bible club for children across the community with volunteers running minibuses to transport children to and from the premises.
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a team of volunteers reaching out to help teenagers, addicts and homeless, specifically around the Bann Boulevard in the evenings.
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Friday lunch for the local community, those in need and the homeless in the area.
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volunteers also cleaned up the streets around the church removing litter, weeds which had grown in alleyways between houses and removing graffiti from neighbouring houses by painting gable walls.
Financial review
The charitable company's financial results are set out in detail on pages 5-12.
There was an overall deficit for the year of £7,736 (2022 - £4,994). Unrestricted funds at 31 January 2023 were £16,380. The charitable company has no restricted funds.
Reserves
The level of reserves will be reviewed annually and built up in stages consistent with the charitable company's overall financial position and its need to maintain its charitable activities. The trustees consider a level of £30,000 to be appropriate.
Structure, governance and management
The charitable company is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 10 January 2020. The charitable company is registered with the Charity Commission for Northern Ireland. The charitable company is controlled by its trustees who are directors of the company for the purposes of company law.
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OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023 The trustees who served during the period and up to the date of signature of the financial statements were.. Mr R S Foster DrA J Hamilton Mr L A McBride Mr B Milligan MrA Barr (Resigned 1 September 2023) (Resigned 1 September 2023) (Appointed 1 September 20231 {Appointed 1 September 2023) Under the requirement of the Memorandum and Articles ofAssociation, one third of the directors retire from office each year. The minimum number of directors is three and is not subject to any maximum. None of the trustees has any beneficial interest in the charitable company. All of the trustees are members of the charitable company and guarantee to contribute £1 in the event of winding up. Organlsatlon The day to day running ofthe charitable company is overseen by the trustees. In preparing this report. the trustees have taken advantage of the small companies exemptions provided by section 415A of the CompaniesAct 2006. Registered offi.. 6 Breagh Lodge Portadown Craigavon Co Armagh BT63 5YW Company Regislralion No,. N1666902 Charity Registration No.. NIC107211 The trustees, report was approved by the Board of Trustees. Mr R S Foster Trustee
CHARTERED ACCOUNT ANTS OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF OPEN ARMS CHURCH LIMITED I report to the trustees on my examination of the financial statements of Open Arms Church Limited (the charitable company) for the year ended 31 January 2023. Responslbllltles of trustees and examlner As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 {the 2006 Act). It is my responsibility to: examine the financial statements under section 65 of the Charities Act (Northem Ireland} 2008- follow the procedures laid down in the general Directions given by the Charity Commission for Northern Ireland under section 65(91{bl of the Act., and state whether particular matters have come to my altention. Basls of Indepondant examlnerfs report I have completed my examination. I confirm that no matters have come to my attention in connedion with th8 examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the charitable company as required by section 386 cl the 2006 Act; or the financial statements do not accord with those records; or the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounls give a true and fair view which is not a matter considwed as part of an independent examination., or the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102). 17 Madelle Street PORTADOWN Craiguvon BT62 3PB ,Ufred Iluii.Ec 14).Ilfi'ed Sti'e.et BF.I.FAgT R2.1) tIF.Q DX39in TrIR Belfast 5 CentiirN' Hoiise 40 Creseeni B115iT2ess Park I.I%BURN Tel:+44 (0)28 3833 2801 Fax:+44 (0)28 3835 0293 Tel.. +44 (0128 90,31 1113 Fa.%.' +44 (v}28 9(531 O7TI Tel.. +44 {0)28 73fj5 F&¥: +44 (0)28 9260 1656 ChartereOAccwntants Registered Audiknrs I Cb8rtcrcdTaxAd%ryg)rs ForensicAccwniants I CoryrA1¢ FinancoAdrs CMCC i8atrndingnarneofQMcQ Qrouplirnited. RegNo.' N]059660. tistof threctorsavailableat re&steredoffice etered lo[uct&udIt workbythelDstituteofLharteTedAccountants 1[eland AMemberofTtAG -A wDrfdwidelllThL% Df IndedentAcCVUnt1Tr4FimI$ www.grncgca.cojn
CHARTERED ACCOUNTANT OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT (CONTINUED) TO THE TRUSTEES OF OPEN ARMS CHURCH LIMITED Independent examlnerfs statement I have no concerns and have come across no other matters in connection with the examination to which altention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. Gillian Johnston ACA GMCG PORTADOWN 17 Mandeville Street Portadown Craigavon Co Armagh BT62 3PB Dated. a.i. o.¢ro6(l aols 17 Mandelrylle Street PORTADOWN Alfred Hoiise 1g.Q]frpd %tre.t't HP.l.FTrK.wr F3'fd) 8F.(a DX3910 NR Ilelfoq8t 50 CentuTh' House 40 Creseeiit B115iness Park LISBIJ]LN IIT28 2CI Crai%avon BT62 3PB Tel: +44 (0)28 3833 2801 F. +44 (0)28 3835 0293 TLI.. 44410}2kl 9081 1118 Fic X.. +44 {1)128 91)31 ()777 Tel: +44 (1))28 9260 7.3.fj5 &#x: +441(1)28 9261) 165f) 4nAG tharteredAttollnlants i RegistercdAudilors I CharteredT¥xAthry50TS Forensi¢A¢countsnts Corp)r4re FirianwAdNiwrs GMcCisatradin8natneolGMcGGroup Litnited. ke8No.. NIos9660. Ijstof Directorsavailableatrwstered offi Res15tedtOcondlt auditworkbythe Instituteofchartered Accountantsin Ireland AMemtÉrofTJAG -A WorldwdeIIart(eof IndependentAtL))untinS Fimis www.gmcgea.com
OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 27,601 | 31,287 |
| Expenditure on: | |||
| Charitable activities | 4 | 35,337 | 36,281 |
| Net expenditure for the year/ | |||
| Net movement in funds | (7,736) | (4,994) | |
| Fund balances at 1 February 2022 | 24,116 | 29,110 | |
| Fund balances at 31 January 2023 | 16,380 | 24,116 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET AS AT 31 JANUARY 2023 2023 2022 Notes Fixed assets Tangible assets 13,356 18,337 Current assets Debtors Cash at bank and in hand 596 5,150 677 10,397 5,746 11,074 Credltors: amounts falling due withln one year 10 12,722> (5,295) Net current assets 3,024 5,779 Total assets less current liabilities 16,380 24,116 Income funds Unrestricted funds 16,380 24,116 16,380 24,116 The charilable company is enlitled lo the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 January 2023. The trustees acknowledge their responsibilities for ensuring that the charitable company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which othewise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject lo the small companies regime. The financial statements were approved by the trustees on Mr R S Foster Trustee Company Reglstration No. N1666902
OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
1 Accounting policies
Charity information
Open Arms Church Limited is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 6 Breagh Lodge, Portadown, Craigavon, Co Armagh, BT63 5YW.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charitable company's Memorandum of Association, the Companies Act 2006, 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 charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company 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 charitable company. 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.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charitable company.
1.4 Incoming resources
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023
1 Accounting policies (Continued)
1.5 Resources expended
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity.
(i) Charitable activities
This comprises all the resources applied by the charitable company in undertaking its work to meet its charitable objectives.
(ii) Governance costs
Governance costs include the costs of governance arrangements which relate to the general running of the charitable company.
(iii) Support costs
Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements Over 5 years Furniture and equipment 20% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the charitable company 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 is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2023
1 Accounting policies (Continued)
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the charitable company’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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Fixed assets
The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The trustees regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.
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OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
3 Donations and legacies
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Donations and gifts | 27,601 | 31,287 | |
| 4 | Charitable activities |
| Charitable activities | ||
|---|---|---|
| Unrestricted | Unrestricted | |
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Rent | - | 10,940 |
| Heat and light | 1,180 | 500 |
| Website, media, music and sound expenses | 887 | 1,951 |
| Exchange fees | - | 17 |
| Donations | 336 | 436 |
| Payments to Pastor | 20,534 | 12,267 |
| Insurance | 522 | 239 |
| Depreciation | 4,981 | 4,569 |
| GIVT fees | 97 | 251 |
| Relief Pastor | 1,600 | - |
| Printing and stationery | 51 | 74 |
| Outreach | 315 | 986 |
| Repairs | - | 28 |
| 30,503 | 32,258 | |
| Share of support costs (see note 5) | 2,294 | 1,363 |
| Share of governance costs (see note 5) | 2,540 | 2,660 |
| 35,337 | 36,281 |
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OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
5 Support costs
| Support costs | ||
|---|---|---|
| Support costs Governance costs £ £ Payments to Pastor 2,281 - General expenses 13 - Accountancy - 2,540 2,294 2,540 Analysed between Charitable activities 2,294 2,540 |
2023Support costs Governance costs £ £ £ 2,281 1,363 - 13 - - 2,540 - 2,660 4,834 1,363 2,660 4,834 1,363 2,660 |
2022 £ 1,363 - 2,660 |
| 4,023 | ||
| 4,023 |
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.
7 Employees
The average monthly number of employees during the year was:
| 2023 | 2022 |
|---|---|
| Number | Number |
| 1 | 1 |
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OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
| 8 Tangible fixed assets Leasehold improvements Furniture and equipment £ £ Cost At 1 February 2022 19,333 7,878 At 31 January 2023 19,333 7,878 Depreciation and impairment At 1 February 2022 6,564 2,310 Depreciation charged in the year 3,867 1,114 At 31 January 2023 10,431 3,424 Carrying amount At 31 January 2023 8,902 4,454 At 31 January 2022 12,769 5,568 9 Debtors 2023 Amounts falling due within one year: £ Prepayments and accrued income 596 10 Creditors: amounts falling due within one year 2023 £ Accruals and deferred income 2,722 |
Total £ 27,211 |
|---|---|
| 27,211 | |
| 8,874 4,981 |
|
| 13,855 | |
| 13,356 | |
| 18,337 | |
| 2022 £ 677 |
|
| 2022 £ 5,295 |
11 Explanatory notes to the funds
Unrestricted funds
This fund includes all core funding that the charitable company receives and is expendable at the discretion of the trustees for the general purposes of the charitable company.
12 Related party transactions
Mr L A McBride, a trustee, received payment for services provided in the period totalling £1,600 (2022 - nil).
During the year the trustees, as congregational members, made donations to the charity by way of general church offerings.
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