FOREST_GATE_CHURCH - Accounts

FOREST GATE CHURCH CHARITY AGM

24th May 2023

Following a word of appreciation for the support of so many people and that the previous three years had being accommodated via Zoom owing to the Covid-19 pandemic, it was acknowledged with gratitude that it was good to be together 'in the flesh' for this Annual General Meeting (AGM). Whilst Zoom may not have been ideal it was a valuable means for maintaining contact throughout a very difficult time. Appreciation was expressed to those who administered the technology to make it all possible.

Chairman's Report

Firstly, my very grateful thanks to you all for being here. Some of the previous years and their effects have seemed rather protracted and took their toll on many people. I am very aware, from personal involvement, that some churches and secular groups barely survived, if at all, so we are very grateful for your determination and commitment; your support for our AGM being an expression of that.

You are aware that Forest Gate Church (FGC) is a registered charity and the AGM is an annual legal requirement, but is also helpful for sharing information regarding the year in question. Also it is the opportunity to welcome new charity members and elect new Directors into their future role.

Reminder — whilst we are almost half way through the present year, we are dealing with matters retrospectively relating to 2022, so we keep that in mind when reviewing the finance figures and also the Leaders Report.

The effects of the pandemic were with us for some time and, even though we began meeting again safely as a church in late August 2021, we were still under restrictions (which were far from straight forward) and guidelines could sometimes change on a daily basis. So we owe grateful thanks to our Building Trustees, together with our employees, Louise and Lucy, for their efforts in keeping pace with the changes and acting appropriately, until such times as things got on a more even keel. They are to be commended for the effective administration of the use of the building... including making sure that on entering we were all suitably sanitized.

The present Directors consist of Pam Britton, Steve Jones, Margaret Hewis (secretary), Karen Williams and myself (chairman), and I want to express my great appreciation for the service and support they give to FGC. It is not a role of high profile, but one essential to the efficient functioning of the Church as a charity. Before our last AGM, Karen moved away to live in Anglesey, but has continued to join us via Zoom each quarter, and we have been pleased to have had her input. She has, for understandable reasons, tendered her resignation from the Directors.

All Director's serve for a 3 year term and may be re-elected for a further term, hence replacements are regularly required in line with the Charity’s Constitution. We are very grateful to our senior leaders, John and Louise, for the support and input they give us; one of whom attends the quarterly Directors meeting and supplies an updated report and advice where needful.

The basic role and function of the Directors is not to be involved with the day-to-day control of the finances, but to provide oversight to financial matters relating to Forest Gate Church and, when required or requested, to offer advice and suggestions.

As I mentioned replacements are needed as per the requirements of the constitution, and we are delighted that some of you have responded to this as part of your service to FGC. We will be dealing with this later in our meeting.

Change of Personnel: Throughout 2022 we were very pleased to have the efficient services of Lucy who, in her administrative role, supplied the regular quarterly financial updates, including bank accounts and various items of income and expenditure. At the beginning of 2023 Lucy decided to return to nursing; I'm sure our loss has been the NHS's gain. Since the beginning of this year the financial side has been in the capable hands of Melanie.

To avoid any duplication I will conclude my report here as other items will be included in the Leaders Report to come later.

The trustees present their annual report and financial statements for the year ended 30 November 2022.

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 charity's [governing document], 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)" (effective 1 January 2019).

To advance the Christian Faith for the benefit of the public in accordance with the statement of beliefs in such ways and in such parts of England and Wales or the World as the directors may from time to time think fit. To advance education in such ways and in such parts of England and Wales or the World as the directors from time to time may think fit. To relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind including through the provision of counselling and support in such parts of England and Wales or the World as the directors from time to time think fit.

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

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The charity is a company limited by guarantee. The governing document of the charity is the company's Memorandum and Articles of Association. The business of the company is managed by a Council of Management. Members of the Council of Management are the trustees of the charity.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Forest Gate Church recognises that an effective board of trustees is essential if the charity is to be effective in achieving its objects. Forest Gate Church is committed to be representative of the people with whom the charity works and have available to it all of the knowledge and skills required to run the charity. Individual trustees must have sufficient knowledge both of trusteeship in general and of the Charity's activities to enable them to carry out their role and to represent the Charity at meetings and other events.

Forest Gate Church operates an open recruitment process and the constitution allows any of our members to nominate candidates for trusteeship at the AGM. Trustees may also be co-opted.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

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 trustees' report was approved by the Board of Trustees.

I report to the trustees on my examination of the financial statements of Forest Gate Church (the charity) for the year ended 30 November 2022.

As the trustees of the charity (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).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

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 were not kept in respect of the charity as required by section 386 of 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 accounts give a true and fair view which is not a matter considered 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).

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

FCCA

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 30 November 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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 to the small companies regime.

Forest Gate Church is a private company limited by guarantee incorporated in England and Wales. The registered office is Youth and Community Building, New Road, Mitcheldean, Gloucestershire, GL17 0BX, United Kingdom.

The financial statements have been prepared in accordance with the charity's [governing document], 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 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 trustees have a reasonable expectation that the charity 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.

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.

Cash donations are recognised on receipt. Other donations are recognised once the charity 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.

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. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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 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.

In the application of the charity’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.

Bank interest

Evangelical Church

Evangelical Church

Insurance

Light and heat

Telephone

Postage and stationery

Sundries

Motor and travel

Repairs and renewals

Training

Accountancy

Wages

Sermon expenses

Banners

Speakers

Rates and water

Evangelical Church

Evangelical Church

The average monthly number of employees during the year was:

Young peoples expenses

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

There were no disclosable related party transactions during the year (2021 - none).

The charity had no debt during the year.