BARNABAS_COMMUNITY_CHURCH - Accounts

The directors present their report and financial statements for the year ended 31 March 2019.

The accounts have been prepared in accordance with the accounting policies set out in note 2 to the accounts and comply with the charity's governing document, the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.

The principal activity of the charitable company is the running of a church.

The company's activities are regulated by the Memorandum and Articles of Association. The objects of the company are:

a) The advancement of the Christian Faith.

b) Relief of persons who are in conditions of need, hardship and distress or who are aged or sick.

c) The provision of instruction in the Christian faith at any educational establishment.

The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

On 1 April 2015 the Food Bank operation was moved from Barnabas Community Church to Barnabas Community Projects Ltd and is now reported in their financial statements.

When planning the activities for the period the directors have considered the Charity Commission's guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. The charity operates in and around Shrewsbury and has a number of activities which seek to reach out to the local community as well as serving members of the church. In particular the charity serves younger members of the community with kids' clubs, youth groups and a mother and toddler group, and provides older member of the community with OAP clubs.

During the period the charity received income totalling £373,235 (2018: £391,134) and incurred general expenditure of £385,568 (2018: £322,539).

The charitable company generates a regular income by way of gifts and donations and this is adequate to cover the projected expenditure. In addition the charitable company seeks to maintain adequate reserves to enable it to meet any unforeseen expenditure or to cover any short term drop in income.

As at 31 March 2019 the total reserves were £989,241 (2018: £1,001,573) with £3,306 (2018: £13,957) in a designated fund, £659,047 (2018: £661,565) restricted and £326,888 (2018: £326,052) unrestricted.

Risk Management

The directors have considered the major risks to which the charitable company is exposed and have established appropriate systems to mitigate those risks.

The charity became a company limited by guarantee on 1st August 2012. It does not have a share capital. In practice the activities are very much a continuation of the work previously undertaken by the former charitable trust (charity 515184).

The directors of the company are also the trustees of the charitable activities.

The directors who served during the year were:

According to the Articles of Association, there is no maximum number of directors. The minimum number is 3. 8 or 9 seems to be about the best, and allows for specialisation within the directorate (finance, child protection, health and safety, staff etc).

Directors must be listed in the current directory as members of Barnabas Community Church.

Directors may be remunerated, according to article 7.2(a) which states that ‘a director or connected person may receive a benefit from the charity in the capacity of a beneficiary of the charity provided that a majority of the directors do not benefit in this way.’

Directors serve for 3 years after which they can be re-elected.

In looking for new directors, we follow a ‘job description’ (below), with a particular view to filling any of the roles within the directorship that may be lacking. Directors make a joint decision about approaching one of the Barnabas members, and then delegate the responsibility of discussing with this person further.

Barnabas Community Church Director’s ‘Job Description’

Spiritual stature

Directors must be mature Christians who have a concern for all the members of the Church, and all the activities that are run by Church. In the directors’ context this will be demonstrated by –

• A thorough understanding of God’s word, which enables directors to detect any deviation from the Church’s Statement of Faith or normal biblical doctrine, and bring this informally to the elders.

• Being a ‘critical friend’ to the elders, sharing privately with them if directors feel that the emphasis of the church’s teaching or practice is becoming unbalanced.

• A willingness to become acquainted with different aspects of the Church’s ministry, and thus to support them and represent them in the directors’ forum.

• Prayerfulness – both in private and corporate contexts.

Support for elders and other leaders

• Input to, and support for, policy decisions that have financial, legal or insurance implications.

• Caring for elders through regular meetings to discuss personal as well as Church issues.

Financial, legal and related matters

• Setting the annual budget (after consultation with all budget holders), and monitoring it.

• Responsibility for legal issues, such as health and safety, child protection and insurances.

• Final responsibility in matters relating to buildings.

Staff

• Making staff appointments (in consultation with elders), and ensuring related legal matters relating to employment are in place and kept up to date.

• Setting and updating staff salaries.

• Ensuring regular staff reviews are in place.

• Overseeing disciplinary matters in relation to staff.

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

The directors, who also act as trustees for the charitable activities of Barnabas Community Church, are responsible for preparing the Trustees Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the directors to prepare accounts 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 charitable company for that year.

In preparing these accounts, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charities SORP;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. 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.

The directors have prepared this report in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective January 2015).

The Trustees report was approved by the Board of Directors.

I report on the financial statements of the charity for the year ended 31 March 2019, which are set out on pages 6 to 19.

The directors, who also act as trustees for the charitable activities of Barnabas Community Church, are responsible for the preparation of the accounts. The directors consider that an audit is not required for this year under section 144(2) of the Charities Act 2011, the 2011 Act, and that an independent examination is needed. The charity's gross income exceeded £250,000 and I am qualified to undertake the examination being a qualified member of the Institute of Chartered Accountants in England and Wales.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

examine the financial statements under section 145 of the 2011 Act;

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

In connection with my examination, no matter has come to my attention:

to keep accounting records in accordance with section 386 of the Companies Act 2006; and

to prepare financial statements which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities;

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.

Voluntary income

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2019.

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.

In accordance with section 444 of the Companies Act 2006 all of the members of the company have consented to the abridgement of the financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (S.I. 2008/409)(b).

The directors acknowledge their responsibilities for ensuring that the charity 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 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 otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

In the application of the charity’s accounting policies, the directors 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.

Barnabas Community Church is a private company limited by guarantee incorporated in England and Wales. The registered office is The Barnabas Centre, Longden Coleham, Shrewsbury, SY3 7DN.

These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Items of income are recognised and included in the accounts when all of the following criteria are met:

•    The charity has entitlement to the funds;

•    any performance condition attached to the item of income have been met or are fully within the

control of the charity;

•    there is sufficient certainty that receipt of the income is considered probable; and

•    the amount can be measured reliably.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

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

•    Expenditure on charitable activities includes the costs of running the Barnabas Community

Church and other activities undertaken to further the purposes of the charity and their associated

support costs.

•    Other resources expended relate to governance costs including the Independent Examiner's

fees, accountancy and other professional fees.

Expenditure is accounted for on an accruals basis. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Irrecoverable VAT is charges as a cost against the activity for which the expenditure was incurred.

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

Major fixed assets are included in the accounts at their historical cost and are depreciated as follows:

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 net income/(expenditure) for the year.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

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.

The charity 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 charity's balance sheet when the charity 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.

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, 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.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

The charity receives tax refunds in respect of deeds of covenants and gift aid donations. These are accounted for in the period in which the original donation was received.

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

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Fund accounting

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

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

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

Debtors

Trade and other debtors are recognised at the settlement amount due.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement value.

Voluntary income

Income tax refunds

Accountancy

Catering

Youth and children's work

Training and seminars

Church activities

Printing, postage and stationery

Insurance

Lighting and heating

Repairs and renewals

Telephone

Licences and registration

Travelling expenses

Loan interest

The average monthly number of employees during the year was:

The Trust deed permits the charity to remunerate no more than half the directors / trustees. During the year the following amounts were paid to directors' and their spouses which includes salaries, pension and reimbursement of expenses e.g. for training, travel and telephone usage.

Financial assets measured at amortised cost consists of amounts due from income tax recoverable and cash at bank.

Financial liabilities measured at amortised cost consists of other loans, accruals and loans from connected company.

The loan above is secured via a fixed charge on the freehold property known as 143 Longden Coleham, Shrewsbury.

Unrestricted Fund

Restricted Fund

Designated Fund

The Development Fund was established in relation to the purchase of additional buildings and the alterations to the main church building.

The Youth Camp Fund relates to the annual Youth camp that is held in Stafford in July.

Men's Events Fund relates to the provision of men's breakfasts, men's day events etc.

The Church Camp Fund relates to the annual Church Camp "Devoted" that is held each summer.

MC website is the creation of a website with Christian teaching available on line.

The remuneration of key management personnel is as follows.

During the year the charity incurred costs totalling £5,000 (2018: £5,000) on behalf of Barnabas Community Projects Ltd, a charitable company whose directors / trustees are also directors / trustees of this charity.