**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 2024**
## **OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mr R S Foster Mr B J Milligan Mr A Barr **Charity number** NIC107211 **Company number** NI666902 **Registered office** 16a Harford Street Portadown Craigavon Co Armagh BT62 3AA **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 - 13|
## **OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JANUARY 2024**
The trustees present their report and financial statements for the year ended 31 January 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the 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:-
- To advance the Christian faith.
- To relieve persons who are in conditions of need or hardship or who are aged or sick and to relieve the distress caused thereby.
- To advance education in accordance with Christian principals.
- 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 2024 the charitable company received donations and undertook the promotion of their above objectives.
## Activities included:-
- Sunday morning worship and Children's Sunday School.
- a holiday bible club for children across the community with volunteers running minibuses to transport children to and from the premises.
- an outreach team of volunteers to help teenagers, addicts and homeless, specifically around the Bann Boulevard in the evenings.
- Friday lunch for the local community, those in need and the homeless in the area.
- operation of a helpline from the church to offer help to the local community as needed.
- volunteers cleaning 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 5-13.
There was an overall surplus for the year of £6,632 (2023 - deficit of £7,736). Unrestricted funds at 31 January 2024 were £23,012 (2023 - £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.
- 1 -
OPEN ARMS CHURCH LIMITED
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
The trustees served during the period and up to the date of signature of the financial statements vrfere..
Mr R S Foster
DrA J Hamilton
Mr LA McBride
Mr B J Milligan
MrA Barr
(Resigned 1 September 2023)
(Resigned 1 September 2023)
(Appointed 1 September 2023)
(Appointed 1 September 2023)
Under the requirement of the Memorandum and Articles of Association, 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 ae members of the
charitable company and guarantee to contnbute £1 in the event of winding up.
Organisation
The day to day running of the charitable company is overseen by the trustees.
In preparing this report, the trustees have taken advantage of the small companies exemption5 provided by
section 415A of the Companies Act 2006.
Registered Office:
16a Hartford Street
Portadown
Craigavon
Co Armagh
BT62 3AA
Company Registration No.. N1666902
Charity Registrab'on No.. NIC107211
The trustees, report was approved by the Board of Trustees.
Mr B J Mllligan
Trustee
Dated..
CHARTERED ACCOUNTANTS
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 2024.
Responslbllltles of trustees and examiner
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
CompaniesAct 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(9)(b) of the Act; and
slate whether particular matters have come to my attention.
Basls of independant examinerfs report
I have completed my examination. I confirm that no matters have come to my attention in connection with the
examination giving me cause to believe that in any material respect.
accounting records Vre not kept in respect of the charitsble company as required by section 386 d the
2006Act'. 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 accounts give a true and fair view vthich is not a matter consided 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 (FRS 102).
17 Mandeville Street
Alfred House
t9 A]fred Street
BEtF.4sr BT2 8EQ
DX3910 NR Belfart 50
Centur), House
40 Crescent Busin Park
LISBb'RN'
BT28 2GN
¢b
Craigavon
BT62 3PB
Tel: +44 {0)28 3833 2801
Fax:+44 (0)28 3835 0293
Tel= +44 (0)28 9031 1113
Fax: +44 (0)28 9031 0777
Tel: +44 (0)28 9260 7355
Fax: +H (0)28 9260 1656
OPEN ARMS CHURCH LIMITED
(A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT EXAMINER'S REPORT (CONTINUED)
TO THE TRUSTEES OF OPEN ARMS CHURCH LIMITED
Independent examinerfs statement
I have no con¢ems and have come across no other matters in connection with the examination to which
attention should be drawn in this report in order to enable a proper understanding of the financial statements to
be reached.
Gillian Johnston ACA
GMCG PORTADoimi
17 Mandeville Street
Portadown
Craigavon
CoArmagh
BT62 3PB
Dated. 17 ..0..066 OW
## **OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 JANUARY 2024**
|||**Unrestricted**|Unrestricted|
|---|---|---|---|
|||**funds**|funds|
|||**2024**|2023|
||**Notes**|**£**|£|
|**Income from:**||||
|Donations and legacies|**3**|32,430|27,601|
|**Expenditure on:**||||
|Charitable activities|**4**|25,798|35,337|
|**Net income/(expenditure) for the year/**||||
|**Net movement in funds**||6,632|(7,736)|
|Fund balances at 1 February 2023||16,380|24,116|
|**Fund balances at 31 January 2024**||23,012|16,380|
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.
- 5 -
OPEN ARMS CHURCH LIMITED
(A COMPANY LIMITED BY GUARANTEE)
BALANCE SHEET
AS AT 31 JANUARY 2024
2024
2023
Notes
Flxed assets
Tangible assets
8,781
13,356
Current assets
Debtors
Cash at bank and in hand
1.398
15,143
596
5,150
16,541
5,746
CditOrS. amounts falling due within
one year
10
(2.310)
(2.722)
Net current assets
14.231
3,024
Total assets less current Ilabllities
23,012
16,380
Income funds
Unrestricted funds
23,012
16,380
23,012
16,380
The charitable company is entitled to the exempts'on from the audit requirement contained in section 477 of the
Companies Act 2006, for the year ended 31 January 2024.
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 rts 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 otherwise comply viÈth 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 accordan with the provisions applicable to companies subject
to the small companies regime.
The financial statements were approved by the trustees on ....
Mr B J Milligan
Trustee
Company Registratlon No. N1666902
**OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2024**
## **1 Accounting policies**
## **Charity information**
Open Arms Church Limited is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 16a Harford Street, Portadown, Craigavon, Co Armagh, BT62 3AA.
## **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.
- 7 -
**OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2024**
## **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.
- 8 -
**OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JANUARY 2024**
## **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.
- 9 -
## **OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 JANUARY 2024**
## **3 Donations and legacies**
|||**Unrestricted **|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2024**|**2023**|
|||**£**|**£**|
||Donations|32,430|27,601|
|**4**|**Charitable activities**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**2024**|2023|
|||**£**|£|
||Rent|500|-|
||Heat and light|100|1,180|
||Website, media, music and sound expenses|1,010|887|
||Donations|356|336|
||Payments to Pastor|11,811|20,534|
||Insurance|562|522|
||Depreciation|4,804|4,981|
||GIVT fees|91|97|
||Relief Pastor|1,800|1,600|
||Printing and stationery|71|51|
||Outreach|1,032|315|
||Repairs|305|-|
|||22,442|30,503|
||Share of support costs (see note 5)|1,416|2,294|
||Share of governance costs (see note 5)|1,940|2,540|
|||25,798|35,337|
- 10 -
## **OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 JANUARY 2024**
## **5 Support costs**
|**Support costs**|||
|---|---|---|
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Payments to Pastor
1,312
-
General expenses
104
-
Accountancy
-
1,940
1,416
1,940
Analysed between
Charitable activities
1,416
1,940|**2024**Support costs Governance
costs
**£**
£
£
1,312
2,281
-
104
13
-
1,940
-
2,540
3,356
2,294
2,540
3,356
2,294
2,540|2023
£
2,281
13
2,540|
|||4,834|
|||4,834|
## **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:
|**2024**|2023|
|---|---|
|**Number**|Number|
|1|1|
- 11 -
**OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 JANUARY 2024**
|**8**
**Tangible fixed assets**
**Leasehold**
**improvements**
**Furniture and**
**equipment**
**£**
**£**
**Cost**
At 1 February 2023
19,333
7,878
Additions
-
229
At 31 January 2024
19,333
8,107
**Depreciation and impairment**
At 1 February 2023
10,431
3,424
Depreciation charged in the year
3,867
937
At 31 January 2024
14,298
4,361
**Carrying amount**
At 31 January 2024
5,035
3,746
At 31 January 2023
8,902
4,454
**9**
**Debtors**
**2024**
**Amounts falling due within one year:**
**£**
Other debtors
400
Prepayments and accrued income
998
1,398
**10**
**Creditors: amounts falling due within one year**
**2024**
**£**
Accruals and deferred income
2,310|**Total**
**£**
27,211
229|
|---|---|
||27,440|
||13,855
4,804|
||18,659|
||8,781|
||13,356|
||**2023**
**£**
-
596|
||596|
||**2023**
**£**
2,722|
## **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 -
**OPEN ARMS CHURCH LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 JANUARY 2024**
## **12 Related party transactions**
Mr L A McBride, as a trustee for part of the year, received payment for non trustee related services provided in the period totalling £1,800 (2023 - £1,600). After resigning as trustee on 1 September 2023, Mr McBride became an employee of the charity.
During the year the trustees, as congregational members, made donations to the charity by way of general church offerings.
- 13 -