NEW_GENERATION_CHURCH_TRU - Accounts

The trustees present their report and financial statements for the year ended 31 March 2020.

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 trust's Memorandum and 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) (effective 1 January 2019)".

The trust's objects are to: advance the Christian faith in accordance with the Statement of Beliefs, to provide and maintain facilities for the benefit of the community of Sidcup and the surrounding neighbourhood, to further Christian education, and to relieve persons who are in condition of need or hardship or who are aged or sick.

Public benefit

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

The last year has been an incredibly challenging one for everybody, not least New Generation Church and we have seen massive changes in the ways we “do church”

We were running “as normal” with services every week at the cinema in Bexleyheath, lots of children's clubs with Sparkles during the week and a whole host of other activities for our young people and at the other end of the age spectrum our monthly Freedom events for the elderly. As a church we are also heavily involved in Hope School and Blackfen Library and they have been incredible ways to reach out and bless our local community.

With the arrival of Covid 19 and the necessary restrictions that were put in place to control it's spread we have had to completely change how we function as a church. Obviously gatherings have had to stop and we have moved Sunday services online, using a mixture of live streamed, recorded services and more recently back to live services over a mixture of You Tube, Zoom etc. These have all been generally well attended and we have also had several new church members start with us during this time.

Whilst we can't meet as we would normally the church has still been active in our community with members involved in providing shopping, meals and help to vulnerable neighbours and others. We also have people managing and volunteering at Bexley's Foodbank and Blackfen Library (when allowed to open).

As with services, we weren't able to run Lark in the Park as a “full service event” this summer, however it wasn't cancelled completely. Together with our partners from several other local churches we put on a week of online activities across the various age groups normally catered for as well as some socially distanced outdoor children's events. The church was also active in our community during this week with groups litter picking around the borough and volunteers taking on gardening work etc for some vulnerable local people.

Our finances have been a source of surprise and joy at God's provision as the planned and expected downturn in our income from giving didn't really materialize. In fact with the money that has been saved from not having to rent the cinema and pay for other events and catering has allowed us to build up a surplus, on top of this we have received some large extra gifts which in turn have allowed us to undertake some of the much needed work on the New Gen Centre and set up a hardship fund to directly help local people who have been financially affected by the pandemic.

As we move towards a time when we will be able to regain some normality (or “new normal”) we are well placed to move forward, although there will still be challenges, not least of which could be finding somewhere to meet together as Cineworld have closed all their cinemas for the time being, however we are still actively looking for a new home for New Gen and have faith that we will find it soon.

The unrestricted funds showed a surplus after transfers for the year of £25,770 (2019 - surplus of £53,709) leaving unrestricted funds of £75,454 at the year end.

There was a surplus after transfers on restricted funds of £30,397 (2019 - deficit of £62,388) leaving restricted funds at the balance sheet date of £57,071.

Overall the Church recorded a surplus of £56,167 (2019 - deficit of £8,679)

It is the policy of the trust 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 trust’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has not been maintained throughout the year and the trust are considering ways to improve the situation.

The trustees have assessed the major risks to which the trust is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The trust is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 29 March 2006 and amended in October 2009 and May 2012.

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:

The trustees' report was approved by the Board of Trustees.

The trustees, who are also the directors of New Generation Church Trust for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law 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 trust and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees 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 financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the trust and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

I report to the trustees on my examination of the financial statements of New Generation Church Trust (the trust) for the year ended 31 March 2020.

As the trustees of the trust (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 trust 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 trust’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.

Since the trust’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Association of Chartered Certified Accountants, which is one of the listed bodies.

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 trust 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.

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 2020.

The trustees 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.

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.

New Generation Church Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is New Generation Centre, Birkbeck Road, Sidcup, Kent, DA14 4DJ.

The financial statements have been prepared in accordance with the trust's Memorandum and 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) (effective 1 January 2019)". The trust is a Public Benefit Entity as defined by FRS 102.

The trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the trust. 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.

At the time of approving the financial statements, the trustees have a reasonable expectation that the trust 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.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

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.

Property, plant and equipment 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 basis:

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 trust 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).

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 trust 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 trust's balance sheet when the trust 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 trade and other receivables 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 trade and other payables 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the trust’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 trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Grants

Activities and events

Breakfast club income

Contribution towards staff costs

Insurance claim proceeds

Special activities

Catering and consumables

Resource costs

Travelling expenses

Postage and stationery

Licences, CRB and subscriptions

School project

Training

Equipment

Cleaning

Sundry

Rent and rates

Insurance

Utilities

Repairs and maintenance

Telephone and fax

Computer expenses

Bank charges

Accountancy and independent examination

Governance costs includes payments to the accountants of £600 (2019- £600) for independent examination fees.

None of the trustees (or any persons connected with them) received any remuneration or benefits from the trust during the year.

The total aggregate amount of unrestricted donations received from the Trustees amounted to £14,811 (2019: £9,628).

The average monthly number of employees during the year was:

The trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the trust in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £3,972 (2019 - £3,588).

The Trust has a Manse leaseback arrangement with its Pastor at a rental of £13,800 per annum determined on one months notice in relation to 56 Sidcup Hill, Sidcup.

The Trust has a lease to premises at Birkbeck Road, Sidcup, on a 6 month notice at £833 per month.

At the reporting end date the trust had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

There were no disclosable related party transactions during the year (2019 - none).

The remuneration of key management personnel is as follows.