Charity registration number 01156053
Company registration number 08811198 (England and Wales)
NORTHWOOD CHAPEL
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
NORTHWOOD CHAPEL
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr A P Kellard
Mr G A Peel
Rev P D Roberts
Secretary
Mr A P Kellard
Charity number
01156053
Company number
08811198
Principal address
Northwood Chapel
Bigdale Drive
Northwood
Kirkby
Merseyside
L33 6XG
Registered office
Northwood Chapel
Bigdale Drive
Northwood
Kirkby
Merseyside
L33 6XG
Independent examiner
Jean Ellis BA FCA CTA
DSG
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
NORTHWOOD CHAPEL
CONTENTS
Page
Trustees report
1 - 3
Independent examiner's report
4
Statement of financial activities
5
Balance sheet
6
Notes to the financial statements
7 - 12
NORTHWOOD CHAPEL
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -

The Trustees present their annual report and financial statements for the year ended 31 December 2021.

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)".

Objectives and activities

The charity aims to present the Christian message of the Gospel of Jesus Christ as written in the Holy Scriptures, to men, women and children, in particular, but not limited to, those who live in Kirkby. These aims are met by reaching out to those in need, whatever those needs might be.

 

Our aim has been to minister to those who are in need spiritually and physically, through the preaching of God’s Word and supply of food when possible. During 2021 we were able to restart the meetings previously held through Zoom, and our services are still broadcast for all who wish to keep up with what is happening at Northwood.

 

The Charity was able to hold once again a Mission week in August due to the relaxation of Covid 19 Pandemic rules, however this weekly event was held conscious of the continuous needs brought about Covid 19, and was well received by the people of Kirkby and others who attended the events during the week. Also during this time the people of Kirkby were able to continue to access the Kirkby Foodbank, which is run by the charity for the local populace.

 

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

Volunteers

 

The charity makes use of volunteers during the course of the year in many of its activities. These duties may include, and this list is not exhaustive – Assisting in the preparation of food, serving members of the public, helping with youth work, delivering tinned food etc. Most volunteers come from local churches in the Merseyside area, but some come from further afield.

Achievements and performance

In the last year there has been much activity with various church based activities, which have been accessed by certain areas of the community.

 

During the year a youth work has run on a Tuesday evening, and this has attracted a number of new children from the local populace, both primary school and high school ages. They have enjoyed games, singing, Bible teaching and craftwork. This had been curtailed somewhat by the Covid 19 Pandemic, but the meetings were able to resume during the year as Covid 19 measures were relaxed. As stated earlier, the charity also carried out the evangelistic mission in the centre of Kirkby as Covid 19 measures and rules were relaxed.

 

All of the activities during the year have been supported by church members and volunteers from other areas. The church also organizes a LAMB,s group, which is for Ladies and Mums with Babies. This group is primarily for ladies in the community, some who may have small children. This was well attended during the latter part of the year as meetings were restarted. The Charity were able, throughout the Pandemic, to continue with the Food Bank. For those who were unable to come out of their homes for whatever reason, deliveries were made to help and support those in need. Once the Covid 19 rules were relaxed this enabled the charity to run it’s operation from the church premises once again. This has again been a vital work amongst the community, especially when so many found themselves in need of support because of loss of wages etc. We are grateful for those who have supported this work, financially and through the donation of tins etc. It has been a privilege to see Kirkby people supporting Kirkby people throughout this time of great need.

NORTHWOOD CHAPEL
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Financial review

The charity received incoming resources of £37,324 (2020: £52,910) and expended £44,501 (2020: £35,229), resulting in a deficit of £7,177 (2020: surplus of £17,681) in the period covered by the accounts. The balance sheet of the charity remains good with a net asset value of £21,497 (2020: £28,674).

 

Principle funding sources over the year have been from church offerings and private gifts.

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 months’ 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.

No funds were materially in deficit during the period covered by these accounts.

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

Plans for future periods

To continue to seek out and identify a building suitable for the expansion of work amongst the community.

 

To continue to engage with the people of Kirkby to seek out new avenues of need.

 

To continue to support the local citizens through a food bank operating from the church premises.

 

To plan and prepare for a week long mission in the centre of Kirkby, and to provide activities for the community during the five day long “Passion for Kirkby” event.

Structure, governance and management

 

The Charity is a company limited by guarantee.

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:

Mr A P Kellard
Mr G A Peel
Rev P D Roberts

New Trustees will always be appointed following nominations and voting by existing Trustees. They must possess a good balance of skills, and be of good character.

 

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.

New Trustees undergo a full induction process and receive copies of key and relevant documents from both the Charity Commission and Companies House, outlining the roles and responsibilities of the Charity Trustee.

 

The position of Church Pastor (Remunerated) is occupied by Mr G A Peel. This is a salaried position and was approved by the Charity Commission when the charity was established.

 

There were three Trustees at the end of the financial year. The Trustees are responsible for the finances of the charity and employment of all staff. The Church Pastor is responsible for overseeing the pastoral and spiritual life of the Charity.

 

 

NORTHWOOD CHAPEL
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -

The Trustees report was approved by the Board of Trustees.

Mr A P Kellard
Trustee
29 August 2022
NORTHWOOD CHAPEL
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF NORTHWOOD CHAPEL
- 4 -

I report to the Trustees on my examination of the financial statements of Northwood Chapel (the Charity) for the year ended 31 December 2021.

Responsibilities and basis of report

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.

Independent examiner's statement

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:

1

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

2

the financial statements do not accord with those records; or

3

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

4

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.

Jean Ellis BA FCA CTA
DSG
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
Dated: 29 August 2022
NORTHWOOD CHAPEL
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2021
2021
2021
2020
2020
2020
Notes
£
£
£
£
£
£
Income from:
Donations and legacies
2
15,698
21,624
37,322
17,686
35,219
52,905
Investments
3
2
-
2
5
-
5
Total income
15,700
21,624
37,324
17,691
35,219
52,910
Expenditure on:
Charitable activities
4
12,743
31,758
44,501
10,707
24,522
35,229
Net income/(expenditure) for the year/
Net movement in funds
2,957
(10,134)
(7,177)
6,984
10,697
17,681
Fund balances at 1 January 2021
17,977
10,697
28,674
10,993
-
10,993
Fund balances at 31 December 2021
20,934
563
21,497
17,977
10,697
28,674
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
NORTHWOOD CHAPEL
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 6 -
2021
2020
Notes
£
£
£
£
Current assets
Debtors
8
561
-
Cash at bank and in hand
21,860
29,593
22,421
29,593
Creditors: amounts falling due within one year
9
(924)
(919)
Net current assets
21,497
28,674
Income funds
Restricted funds
10
563
10,697
Unrestricted funds
20,934
17,977
21,497
28,674

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 December 2021.

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.

The financial statements were approved by the Trustees on 29 August 2022
Mr A P Kellard
Trustee
Company registration number 08811198
NORTHWOOD CHAPEL
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
1
Accounting policies
Charity information

Northwood Chapel is a private company limited by guarantee incorporated in England and Wales. The registered office is Northwood Chapel, Bigdale Drive, Northwood, Kirkby, Merseyside, L33 6XG.

1.1
Accounting convention

The financial statements have been prepared in accordance 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)". The Charity is a Public Benefit Entity as defined by FRS 102.

 

The Charity 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 Charity. 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 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.

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.

1.4
Income
Income is recognised when the Charity 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 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.

Legacies are recognised on receipt or otherwise if the Charity 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.
1.5
Expenditure

Income and expenses are included in the financial statements as they become receivable or due.

 

Expenses include VAT where applicable as the company cannot reclaim it.

1.6
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.

NORTHWOOD CHAPEL
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 8 -
1.7
Financial instruments

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

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.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

 

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 Charity’s contractual obligations expire or are discharged or cancelled.

NORTHWOOD CHAPEL
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 9 -
1.8
Employee benefits

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.

1.9
Retirement benefits

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

2
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2021
2021
2021
2020
2020
2020
£
£
£
£
£
£
Donations and gifts
12,476
21,624
34,100
14,205
35,219
49,424

Covid-19 Job Retention Scheme Grant

3,222
-
3,222
3,481
-
3,481
15,698
21,624
37,322
17,686
35,219
52,905
3
Investments
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
Interest receivable
2
5
NORTHWOOD CHAPEL
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
4
Charitable activities
2021
2020
£
£
Staff costs
14,744
13,403

Passion for Kirby

7,633
960

Affiliation

3,000
3,000

Utilities

1,899
2,717

Missionary giving

900
900

Insurance

1,187
1,084

Speaker expenses

250
215

Books and CD's

652
127

Outreach/Evangelism

996
699

Easter gift

600
1,100

Consumables

212
108

Building and equipment costs

2,312
1,446

Foodbank

8,910
8,233
43,295
33,992
Share of governance costs (see note 5)
1,206
1,237
44,501
35,229
Analysis by fund
Unrestricted funds
12,743
10,707
Restricted funds
31,758
24,522
44,501
35,229
5
Support costs
Support costs
Governance costs
2021
2020
£
£
£
£
Legal and professional
-
301
301
349

Independent examination fees

-
905
905
888
-
1,206
1,206
1,237
Analysed between
Charitable activities
-
1,206
1,206
1,237

Governance costs includes payments to the independent examiner of £905 (2020: £888) for examination fees.

NORTHWOOD CHAPEL
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
6
Trustees

Other than as noted below, none of the Trustees (or any persons connected with them) received any remuneration,expenses or benefits from the Charity during the year.

The position of Church Pastor (Remunerated) is occupied by Mr G A Peel, a Trustee of the charity. This is a salaried position and was approved by the Charity Commission when the charity was established. Salary and pension contributions of of £14,744 (2020: £13,403) were paid in the year.

7
Employees

The average monthly number of employees during the year was:

2021
2020
Number
Number
Church pastor and support
1
1
Employment costs
2021
2020
£
£
Wages and salaries
14,514
13,205
Other pension costs
230
198
14,744
13,403
There were no employees whose annual remuneration was more than £60,000.
8
Debtors
2021
2020
Amounts falling due within one year:
£
£
Prepayments and accrued income
561
-
9
Creditors: amounts falling due within one year
2021
2020
£
£
Accruals and deferred income
924
919
NORTHWOOD CHAPEL
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
10
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Incoming resources
Resources expended
Balance at
1 January 2021
Incoming resources
Resources expended
Balance at
31 December 2021
£
£
£
£
£
£
Donations
26,359
(17,863)
8,496
14,633
(23,129)
-
Evangelism
3,860
(1,659)
2,201
6,991
(8,629)
563
National Lottery Awards for All
5,000
(5,000)
-
-
-
-
35,219
(24,522)
10,697
21,624
(31,758)
563

Donations - this represents gifts given towards the Pastor's salary, foodbank, books and CDs, and Easter gifts.

 

Evangelism - this represents gifts given towards Passion for Kirby and The Vine project.

 

National Lottery Awards for All - this represents a grant given towards the Kirkby Foodbank service.

11
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
Restricted funds
Total
2021
2021
2021
2020
2020
2020
£
£
£
£
£
£
Fund balances at 31 December 2021 are represented by:
Current assets/(liabilities)
20,934
563
21,497
17,977
10,697
28,674
20,934
563
21,497
17,977
10,697
28,674
12
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021
2020
£
£
Aggregate compensation
14,744
13,403
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