Charity registration number NIC108780
Company registration number NI676012 (Northern Ireland)
ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
JR Penn
KR Penn
MT Davison
Charity number
NIC108780
Company number
NI676012
Registered office
6 Drumlerry
Londonderry
Co Londonderry
BT48 8GQ
Independent examiner
GMcG PORTADOWN
17 Mandeville Street
Portadown
Craigavon
Co Armagh
BT62 3PB
Bankers
AIB (NI)
4-8 Market Street
Lurgan
Craigavon
Co Armagh
BT66 6AQ
ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
CONTENTS
Page
Trustees' report
1 - 2
Independent examiner's report
3 - 4
Statement of financial activities
5
Balance sheet
6
Notes to the financial statements
7 - 11
ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -

The trustees present their annual report and financial statements for the year ended 28 February 2023.

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 charitable company'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).

Objectives and activities

The objectives of the charitable company are set out in the Memorandum and Articles of Association.

 

The main objective of the charitable company is to provide a place within the community for Christian fellowship and prayer where people, both believers and nonbelievers, may come together to hear the Gospel of Jesus Christ preached and taught. Where the community may be disciplined in God's Word to find their call and destiny. To obey the Great Commission and bring the Gospel of Jesus Christ to the world as found in Mark 16:15.

The trustees have paid due regard to guidance issued by the Charity Commission of Northern Ireland in deciding what activities the charitable company should undertake.

Achievements and performance

During the year the charitable company received monetary donations of £22,482 (2022 - £93,103), and donations in kind of £24,000 (2022 - £12,000) whilst charitable expenditure amounted to £36,410 (2022 - £89,769).

,

During the year the charitable company had the use of donated premises to support its objectives and activities which is reflected in the financial statements as a donation in kind.

 

The charitable company carried out full fellowship services, including children's services, each Sunday morning and Wednesday evening. They also ran corporate prayer meetings on Wednesday evenings, woman's bible studies on Thursday evenings and evangelistic outreaches once a month.

Financial review

The charitable company's financial results are set out in detail on pages 5-11.

 

There is an overall surplus of unrestricted funds for the year of £25,406 (2022 - £15,334). The charitable company has no restricted funds.

Due to the nature of the charity's activities, the trustees consider it appropriate to maintain reserves sufficient to meet on-going running costs to cover a twelve month period. The trustees consider a level of £10,000 to be appropriate.

Structure, governance and management

The charitable company is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 1 February 2021.

 

The charitable company was registered with the Charity Commission for Northern Ireland on 6 April 2022.

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:

JR Penn
KR Penn
MT Davison

Under the requirement of the Memorandum and Articles of Association, directors are appointed and retire by rotation every year.

 

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.

ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
Organisation

The day to day running of the charitable company is overseen by the trustees.

 

In preparing this report, the trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

 

Registered Office:

6 Drumlerry

Londonderry

Co Londonderry

BT48 8GQ

 

Company Registration No. NI676012

Charity Registration No. NIC108780

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

MT Davison
Trustee
23 October 2023
ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF ISLAND CHURCH LTD
- 3 -

I report to the trustees on my examination of the financial statements of Island Church Ltd (the charitable company) for the year ended 28 February 2023.

Responsibilities of trustees and examiner

As the trustees of the charitable company (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).

It is my responsibility to:-

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 charitable company 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).

ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT EXAMINER'S REPORT (CONTINUED)
TO THE TRUSTEES OF ISLAND CHURCH LTD
- 4 -

Independent examiners statement

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.

Gillian Johnston ACA
GMcG PORTADOWN
17 Mandeville Street
Portadown
Craigavon
Co Armagh
BT62 3PB
Dated: 25 October 2023
ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 5 -
Unrestricted
Unrestricted
funds
funds
Period 01 February 2021
2023
to 28 February 2022
Notes
£
£
Income from:
Donations and legacies
3
46,482
105,103
Expenditure on:
Charitable activities
4
36,410
89,769
Net income for the year/
Net movement in funds
10,072
15,334
Fund balances at 1 March 2022
15,334
-
Fund balances at 28 February 2023
25,406
15,334

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 6 -
2023
2022
Notes
£
£
£
£
Current assets
Debtors
8
251
-
Cash at bank and in hand
29,425
18,273
29,676
18,273
Creditors: amounts falling due within one year
9
(4,270)
(2,939)
Net current assets
25,406
15,334
Income funds
Unrestricted funds
25,406
15,334
25,406
15,334

The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 28 February 2023.

The trustees acknowledge their responsibilities for ensuring that the charitable company 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 charitable 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 charitable 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.

The financial statements were approved by the Trustees on 23 October 2023
MT Davison
Trustee
Company registration number NI676012
ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 7 -
1
Accounting policies
Charity information

Island Church Ltd is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 6 Drumlerry, Londonderry, BT48 8GQ.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, 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 charitable company is a Public Benefit Entity as defined by FRS 102.

 

The charitable company has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charitable company.
1.4
Incoming resources
Income is recognised when the charitable company 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 charitable company 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 charitable company 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.

ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies (Continued)
- 8 -

Donations in kind are recognised as income when the charitable company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charitable company of the item is probable and that economic benefit can be measured reliably. On receipt, donated facilities are recognised on the basis of the value of the gift to the charitable company which is the amount the charitable company would have been willing to pay to obtain facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

1.5
Resources expended

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.

 

(i) Charitable activities

 

This comprises all the resources applied by the charitable company in undertaking its work to meet its charitable objectives.

 

(ii) Governance costs

 

Governance costs include the costs of governance arrangements which relate to the general running of the charitable company.

 

Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources.

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.

1.7
Financial instruments

The charitable company 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 charitable company's balance sheet when the charitable company 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.

ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies (Continued)
- 9 -
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 charitable company’s contractual obligations expire or are discharged or cancelled.

2
Critical accounting estimates and judgements

In the application of the charitable company’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.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Donations in kind

Donations in kind are recognised on the basis of the value of the gift to the charitable company, this being the amount the charitable company would be willing to pay on the open market basis. The assessment of value involves judgement by the trustees and some estimation and uncertainty in relation to the market conditions and the benefit derived from the donated facility.

3
Donations and legacies
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Donations and gifts
22,482
93,103
Donations in kind
24,000
12,000
46,482
105,103
ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
4
Charitable activities
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£

Heat and light

5,733
2,346

Rates

615
168

Rent

24,000
25,350

Repairs

1,138
399

Property renovation expenses

-
59,649

Insurance

1,039
-
32,525
87,912
Share of support costs (see note 5)
2,173
867
Share of governance costs (see note 5)
1,712
990
36,410
89,769
5
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£

Bank charge

282
-
282
123
-
123

Sundry

61
-
61
35
-
35

Telephone

330
-
330
421
-
421

Legal and professional

1,500
-
1,500
288
-
288

Accountancy

-
1,712
1,712
-
990
990
2,173
1,712
3,885
867
990
1,857
Analysed between
Charitable activities
2,173
1,712
3,885
867
990
1,857
6
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.
ISLAND CHURCH LTD
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 11 -
7
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Total
-
0
-
0
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Prepayments and accrued income
251
-
9
Creditors: amounts falling due within one year
2023
2022
£
£
Accruals and deferred income
4,270
2,939
10
Related party transactions

Monetary donations of £2,198 (2021 - £42,688) were received from Penn Ministries of whom JR Penn and KR Penn are directors.

 

Director, JR Penn, also donated facilities for use by the charitable company for the year. The amount recognised as donated facilities and rental expense was £24,000 (2021 - £12,000).

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