St Luke's Church - Charities report - 18.1

REGISTERED COMPANY NUMBER: 05977613 (England and Wales)

REGISTERED CHARITY NUMBER: 1119572

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018

FOR

ST LUKE'S CHURCH

ST LUKE'S CHURCH

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

Page

Report of the Trustees

1 to 3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6 to 7

Cash Flow Statement

8

Notes to the Cash Flow Statement

9

Notes to the Financial Statements

10 to 18

ST LUKE'S CHURCH

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2018

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with

the financial statements of the charity for the year ended 31 March 2018. The trustees have adopted the provisions of

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 2015).

OBJECTIVES AND ACTIVITIES

Objectives, aims and delivery of public benefit

The objects of the charity as set out in the Memorandum of Association are:

(l) the advancement of the Christian faith in accordance with the Statement of Faith of The Assemblies of God in such

ways and in such parts of the United Kingdom or the world as approved by the trustees from time to time;

(ll) 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 the United Kingdom

or the world as approved by the trustees from time to time; and

(lll) to advance education in such ways and in such parts of the United Kingdom or the world as the directors from time

to time may think fit.

These objectives reflect the aims of the charity to promote the Christian faith and follow that faith by providing

community facilities and local and overseas ministration.

The charities main activities as described below, focus on the provision of services to the local community and

advancement of the Christian faith within and beyond that community and have been chosen having regard to the

Charities Commissions guidance on public benefit.

Significant activities

The principal activities of the charitable company during the period were the provision of Christian ministration to the

users of St Luke's Church, together with community centre facilities and day care nursery services.

We run a daycare nursery for children between the ages of 3 months to 5 years, providing high quality childcare and

learning in a safe environment. We are inspected by OFSTED which requires us to provide a broad and balanced

curriculum, based on the government's Early Learning Goals.

We also run a youth centre, known as The Shed, for children between the ages of 8 to 16 providing activities on site and

away, to give children a place to meet friends and participate in recreational activities, to gain self confidence and

fulfilment. Plans have been drawn up to refurbish and expand The Shed, work on which has commenced since the year

end.

In addition we operate a café and coffee bar open to the community, housed in our church building. We continue to

support the One-by-One Orphanage in Kenya through church donations and donations in the café and coffee bar, and

other local charities.

The charity also operates a recording studio which provides a facility for Christian missions, schools and other groups to

make quality recordings at a low cost and offers an educational experience to users.

Volunteers

A significant part of our costs are met from voluntary services and volunteered time, which the Trustees gratefully

acknowledge. These have not been quantified in financial terms and have not been included in the statement of financial

activities.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Trustees are continually looking at ways of bringing further benefit to the wider community and have commenced

the levelling, fencing and turfing of land behind the Community Centre and Pre-School nursery with the aim of

providing additional green area for the nursery children, and a garden and growing area for children and lonely people to

spend time either tending the area or relaxing.

Despite two other nurseries opening locally, the Nursery has continued to operate at or near to capacity throughout the

year. We are pleased to report that the quality of the care provided ensures that it receives many enquiries, and it was

judged to be 'Outstanding' by OFSTED following their most recent inspection.

The Shed was refurbished and expanded during the year and has enjoyed increasing attendance, providing children

between the ages of 8 to 16 with a place to meet friends, participate in recreational activities, and to gain self confidence

and fulfilment. The Shed is the only Youth centre in the local area and provides a valuable service for local children.

The Café continues to provide an environment for local adults to meet during the day, and the Church has opened its

facilities to a number of local groups to build on its community ethos.

Internal and external factors

Our Nursery service employs suitably qualified staff, but the charity also benefits from time and effort donated by many

volunteers to enable it to operate its activities, in particular with regard to the Nursery, Youth Club and our cafe and

coffee bar. All volunteers are subject to vetting under DBS disclosure and follow a detailed induction process on their

roles and responsibilities, to ensure that our standards of service delivery are maintained.

FINANCIAL REVIEW

Financial position

The Trustees are satisfied with the financial position of the charity and its ability to meet its ongoing commitments, after

taking into account the financial risks and uncertainties outlined below.

Principal funding resources and Financial risks and Uncertainties

The charities principal sources of income are fees charged for the nursery and funding from Wakefield Metropolitan

District Council. Fundraising and voluntary income provide further funding for the charity. The income and expenditure

in respect of these activities for the twelve month period is set out in the attached accounts.

The Trustees recognise the potential uncertainty over future funding levels and nursery occupancy which are considered

to be the principal financial risks facing the charity, and which are monitored regularly by them.

Reserves policy

The Trustees policy aim is to achieve unrestricted funds, which are free reserves of the charity, at a level sufficient to

cover charitable and governance costs for a period of twelve months in order to ensure the future stability of the charity.

The charity has yet to achieve this level of reserves but the Trustees note there has been a further improvement towards

this target during the year.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its Memorandum and Articles of Association, and constitutes a limited company, limited by

guarantee, as defined by the Companies Act 2006.

The guarantee is limited to £1 per member.

Recruitment and appointment of trustees

Trustees comprise the senior minister and other ministers of the church and others nominated by the senior minister and

ratified by the Trustees. Trustees are not required to retire by rotation.

In order to meet the additional work load arising from the increasing activities of the charity, three members of the

congregation have been nominated and appointed as Trustees during the year, ratified by the existing Board of Trustees.

Organisational structure

The Trustees are responsible for overall operation and management of the charity. Some day to day decisions are

delegated to senior staff in the Nursery who report to the Trustees.

Induction and training of trustees

All trustees sign a declaration that they are not barred from standing and are vetted through DBS disclosure.

All new trustees are issued with an induction pack and invited to attend an induction meeting where they are given an

overview of the work of the Charity and their duties and responsibilities are clarified.

Management structure

The Trustees are responsible for all strategic and financial decisions of the charity and meet on a regular basis

throughout the year to set strategic goals, budgets and procedures.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05977613 (England and Wales)

Registered Charity number

1119572

Registered office

St Lukes Church

Carlton Road

Pontefract

West Yorkshire

WF9 2QQ

Trustees

Rev M Sullivan

Mrs S A Sullivan

A Lloyd

- resigned 16.11.17

Mrs J M McMahon

Mrs S E Brown

D Hardy

R V Matthews

Independent examiner

David Miller BSc, FCA

Institute of Chartered Accountants in England and Wales

Sedulo Leeds Limited

St Paul's House

23 Park Square

Leeds

LS1 2ND

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating

to small companies.

Approved by order of the board of trustees on 28 November 2018 and signed on its behalf by:

Rev M Sullivan - Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

ST LUKE'S CHURCH

Independent examiner's report to the trustees of St Luke's Church ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2018.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company 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 your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Institute of Chartered Accountants in England and Wales 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:

1.

accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.

the accounts do not accord with those records; or

3.

the accounts 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

4.

the accounts 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 accounts to be reached

David Miller BSc, FCA

Institute of Chartered Accountants in England and Wales

Sedulo Leeds Limited

St Paul's House

23 Park Square

Leeds

LS1 2ND

Date: .............................................

ST LUKE'S CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 MARCH 2018

2018

2017

Unrestricted funds

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

360,680

952

361,632

343,663

Charitable activities

5

Nursery

266,051

-

266,051

281,927

Shed (Youth Centre)

7,648

-

7,648

10,403

Cafe

8,629

-

8,629

9,039

Other trading activities

3

6,114

-

6,114

8,602

Investment income

4

11

-

11

24

Total

649,133

952

650,085

653,658

EXPENDITURE ON

Raising funds

6

2,318

-

2,318

3,361

Charitable activities

7

Church & community

137,008

228

137,236

140,959

Nursery

505,352

775

506,127

506,925

Other activities

20,495

-

20,495

27,670

Total

665,173

1,003

666,176

678,915

NET INCOME/(EXPENDITURE)

(16,040

)

(51

)

(16,091

)

(25,257

)

Transfers between funds

18

177

(177

)

-

-

Net movement in funds

(15,863

)

(228

)

(16,091

)

(25,257

)

RECONCILIATION OF FUNDS

Total funds brought forward

1,354,352

10,719

1,365,071

1,390,328

TOTAL FUNDS CARRIED FORWARD

1,338,489

10,491

1,348,980

1,365,071

ST LUKE'S CHURCH

BALANCE SHEET

AT 31 MARCH 2018

2018

2017

Unrestricted funds

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

12

1,478,127

10,491

1,488,618

1,536,929

CURRENT ASSETS

Debtors

13

12,805

-

12,805

3,788

Cash at bank and in hand

37,616

-

37,616

22,131

50,421

-

50,421

25,919

CREDITORS

Amounts falling due within one year

14

(31,810

)

-

(31,810

)

(32,335

)

NET CURRENT ASSETS/(LIABILITIES)

18,611

-

18,611

(6,416

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,496,738

10,491

1,507,229

1,530,513

CREDITORS

Amounts falling due after more than one year

15

(158,249

)

-

(158,249

)

(165,442

)

NET ASSETS

1,338,489

10,491

1,348,980

1,365,071

FUNDS

18

Unrestricted funds

1,338,489

1,354,352

Restricted funds

10,491

10,719

TOTAL FUNDS

1,348,980

1,365,071

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 March 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended

31 March 2018 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)

ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 charitable company.

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies

Act 2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 28 November 2018 and were signed on its behalf by:

Rev M Sullivan -Trustee

ST LUKE'S CHURCH

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2018

2018

2017

Notes

£

£

Cash flows from operating activities:

Cash generated from operations

1

44,384

50,189

Interest paid

(9,912

)

(9,911

)

Net cash provided by (used in) operating activities

34,472

40,278

Cash flows from investing activities:

Purchase of tangible fixed assets

(10,826

)

(20,977

)

Interest received

11

24

Net cash provided by (used in) investing activities

(10,815

)

(20,953

)

Cash flows from financing activities:

Loan repayments in year

(8,172

)

(12,172

)

Net cash provided by (used in) financing activities

(8,172

)

(12,172

)

Change in cash and cash equivalents in the reporting period

15,485

7,153

Cash and cash equivalents at the beginning of the reporting period

22,131

14,978

Cash and cash equivalents at the end of the reporting period

37,616

22,131

ST LUKE'S CHURCH

NOTES TO THE CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2018

1.	RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

2018

2017

£

£

Net income/(expenditure) for the reporting period (as per the statement of financial activities)

(16,091

)

(25,257

)

Adjustments for:

Depreciation charges

59,137

62,899

Interest received

(11

)

(24

)

Interest paid

9,912

9,911

(Increase)/decrease in debtors

(9,017

)

3,009

Increase/(decrease) in creditors

454

(349

)

Net cash provided by (used in) operating activities

44,384

50,189

ST LUKE'S CHURCH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been

prepared in accordance with the Charities SORP (FRS 102) '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 2015)',

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost

convention.

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going

concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it

is probable that the income will be received and the amount can be measured reliably.

Services of volunteers are invaluable to the operation of the charity. Unless material and capable of valuation no

attempt has been made to put a book value on such gifts and consequently they are not shown in the financial

statements.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the

charity to that expenditure, 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 accounted for on an accruals basis and has

been classified under headings that aggregate all cost related to the category. Where costs cannot be directly

attributed to particular headings they have been allocated to activities on a basis consistent with the use of

resources.

Raising funds

Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and

includes costs of all fundraising activities, events and non-charitable trading.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value

of each asset over its estimated useful life.

Freehold property

- 2% on cost

Plant and equipment

- 25% on reducing balance

Fixtures and fittings

- 25% on reducing balance

Computer equipment

- 25% on cost

Expenditure on small items of equipment which are routinely replaced are written off to repairs and not

capitalised.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds, including designated funds, can be used in accordance with the charitable objectives at the

discretion of the trustees. Designated funds represent funds which have been reserved by the trustees to certain

uses.

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.

2.	DONATIONS AND LEGACIES

2018

2017

£

£

Donations

15,113

15,278

Gift aid donations

26,871

32,663

Grants and funding

318,744

294,788

Missions

904

934

361,632

343,663

GRANTS AND FUNDING

2018

2017

Unrestricted

Restricted

Total

Total

Fund

Fund

£

£

Incoming resources from generated funds:

Wakefield college apprenticeship

-

-

-

900

WMDC education funding 3 year olds

A

153,417

-

153,417

97,473

WMDC education funding 2 year olds

B

143,747

-

143,747

196,415

One-to-One

C

21,580

-

21,580

-

318,744

-

318,744

294,788

A) An annual education award from Wakefield Metropolitan District Council (WMDC) for the core funding

expenditure of the nursery. This is payable in three-term periods based on the numbers and eligibility

of the children.

B) An annual education award from Wakefield Metropolitan District Council (WMDC) for the core funding

expenditure of the nursery, following the extension of the age profile of the nursery to include two year

old children. This is payable in three-term periods based on the numbers and eligibility of the children.

C) One to One funding is an award from Wakefield Metropolitan District Council (WMDC) towards the cost of

staffing to assist children with additional needs.

.

3.	OTHER TRADING ACTIVITIES

2018

2017

£

£

Fundraising events

4,524

5,498

Rents received

1,400

3,044

Recording studio income

190

60

6,114

8,602

4.	INVESTMENT INCOME

2018

2017

£

£

Deposit account interest

11

24

5.	INCOME FROM CHARITABLE ACTIVITIES

2018

2017

Activity

£

£

Nursery income

Nursery

266,051

281,927

Shed (Youth Centre) income

Shed (Youth Centre)

7,648

10,403

Cafe income

Cafe

8,629

9,039

282,328

301,369

6.	RAISING FUNDS

Raising donations and legacies

2018

2017

£

£

Fund raising expenses

2,318

3,361

7.	CHARITABLE ACTIVITIES COSTS

Direct costs

Support costs

Totals

(See note 8)

£

£

£

Church & community

133,398

3,838

137,236

Nursery

506,127

-

506,127

Other activities

20,495

-

20,495

660,020

3,838

663,858

Church &

Other

Community

Nursery

activities

2018

2017

£

£

£

£

£

Wages inc social security

16,251

400,978

-

417,229

428,346

Trustees remuneration

20,850

9,285

-

30,135

28,477

Rates and water

-

3,790

653

4,443

4,311

Insurance

-

4,720

-

4,720

4,396

Light and heat

2,773

13,302

1,102

17,177

20,494

Telephone

444

3,725

861

5,030

4,597

Postage and stationery

333

5,015

-

5,348

5,912

Advertising

302

-

152

454

240

Consumables and equipment

8,842

6,026

4,860

19,728

21,977

Ministry

683

38

-

721

948

Donations

934

-

779

1,713

9,816

Food and refreshments

(77

)

16,564

3,462

19,949

19,300

HSA

297

-

-

297

287

Licences

533

316

`-

849

947

Subscriptions

1,114

1,301

-

2,415

3,907

Training costs

-

1,008

30

1,038

375

Kitchen - non food

-

323

-

323

390

Computer costs

5,644

709

208

6,561

4,782

Repairs and renewals

10,840

12,262

5,517

28,619

29,009

Cleaning and laundry

2,732

18,295

1,031

22,058

7,569

Mission costs

-

-

775

775

955

Bad debts

-

1,389

-

1,389

1,964

Depreciation

51,463

6,609

1,065

59,137

62,899

Loan and mortgage interest

9,440

472

-

9,912

9,911

133,398

506,127

20,495

660,020

671,809

2017

137,214

506,925

27,670

671,809

8.	SUPPORT COSTS

Support costs total £3,838 (2017: £3,745) and comprise Independent examiners fees, accountancy and legal fees

and other finance charges necessary to the governance and operation of the charity. In view of their low value the

costs have not been allocated against specific charitable activities.