Charity registration number 1134634
Company registration number 07163237 (England and Wales)
GRACE CHRISTIAN TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024
GRACE CHRISTIAN TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr A Mayo
Mr I Mayo
Mrs J Mayo
Charity number
1134634
Company number
07163237
Registered office
Otford Manor
Otford
Kent
TN15 6XF
Independent examiner
John Caladine FCCA CTA FCIE
Caladine Limited
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Bankers
Metro Bank
One Southampton Row
London
WC1B 5HA
GRACE CHRISTIAN TRUST
CONTENTS
Page
Trustees' report
1 - 2
Independent examiner's report
3
Statement of financial activities
4
Statement of financial position
5
Statement of cash flows
6
Notes to the financial statements
7 - 15
GRACE CHRISTIAN TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 1 -

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 period ended 28th February 2024.

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 2019).

 

Objectives and activities

The objectives of the charity are to advance the Christian faith and also to relieve sickness, hardship and promote and preserve good health.

 

The trustees of the Grace Christian Trust have the conviction that the message of historical Christianity - the news that Jesus Christ is the One who is God come to us, who died for a broken humanity, rose from the dead and brings forgiveness and life in all its fulness to those who trust Him - is the most wonderful message that could be communicated. Supporting the sharing of this message, through words and actions, is the overarching aim of the Grace Christian Trust.

Public benefit

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

Achievements and performance
Significant activities and achievements against objectives

In the year covered by this report, the trust recognised a local difficulty regarding housing for Ukrainian refugees. Often such families are prevented from renting by commercial landlords. To try to contribute to changing this situation a house was purchased in Caterham and made available for two Ukrainian families who moved into the house in May 2023. Tandridge Council were extremely helpful as the trust liaised with them about the most effective way of serving this community.

 

Meanwhile, the house near to South Croydon continues to be of service to the family who made it their home in May 2022. The three year term for this arrangement comes to an end in May 2025 and this mid-term solution seems to be achieving the aim of enabling the family to get back on their feet financially and become self sufficient ready to purchase for themselves or afford commercial rent levels.

 

In addition, in the year covered by this report, the trustees have approved:

 

•    micro-grants to support a Christian worker in Slovakia;

•    micro-grants to help a church on the south edge of Croydon develop materials to invite guests to their events and help new followers of Jesus Christ to grow in their faith.

Financial review

Income for the year was £520,006 (2023: £623,206) primarily to support the purchase of a property to urgently house a needy family. As a result net assets have increased to £1,928,737 (2023: £1,433,685).

Reserves policy

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 been maintained throughout the Period.

Structure, governance and management

The charity is controlled by its governing document, a deed of trust, and constitutes a company, limited by guarantee, as defined by the Companies Act 2006.

GRACE CHRISTIAN TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 2 -

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

 

Mr A Mayo
Mr I Mayo
Mrs J Mayo
Recruitment and appointment of trustees

New Trustees are recruited as and when the current trustees deem it necessary. Any new trustees are appointed by passing an ordinary resolution at a general meeting of the company.

Organisational structure

Currently, the day to day management of the charity is undertaken solely by the trustees of the charity.

Induction and training of trustees

As part of the induction process new trustees are provided with a copy of the "Statement of Beliefs" that the Grace Christian Trust operates under. In addition new trustees are provided with Charity Commission documentation so that they have a full understanding of their responsibilities as trustees.

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

Mr A Mayo
Trustee
18 April 2024
GRACE CHRISTIAN TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF GRACE CHRISTIAN TRUST
- 3 -

I report to the trustees on my examination of the financial statements of Grace Christian Trust (the trust) for the Period ended 29 February 2024.

Responsibilities and basis of report

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.

Independent examiner's statement

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:

 

1

accounting records were not kept in respect of the trust 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.

John Caladine FCCA CTA FCIE
Caladine Limited
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Dated: 23 April 2024
GRACE CHRISTIAN TRUST
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 4 -
Unrestricted
Unrestricted
funds
funds
2024
2023
Notes
£
£
Income from:
Donations and legacies
3
480,000
600,000
Charitable activities
4
25,993
10,000
Investments
5
14,013
13,206
Total income
520,006
623,206
Expenditure on:
Raising funds
6
5,875
5,665
Charitable activities
7
29,612
57,431
Total expenditure
35,487
63,096
Net gains/(losses) on investments
12
10,533
(44,463)
Net income and movement in funds
495,052
515,647
Reconciliation of funds:
Fund balances at 21 February 2023
1,433,685
918,038
Fund balances at 29 February 2024
1,928,737
1,433,685

The statement of financial activities includes all gains and losses recognised in the Period. All income and expenditure derive from continuing activities.

GRACE CHRISTIAN TRUST
STATEMENT OF FINANCIAL POSITION
AS AT
29 FEBRUARY 2024
29 February 2024
- 5 -
2024
2023
Notes
£
£
£
£
Fixed assets
Property, plant and equipment
14
1,156,968
596,288
Investments
15
658,788
638,606
1,815,756
1,234,894
Current assets
Trade and other receivables
16
-
501
Cash at bank and in hand
116,149
202,306
116,149
202,807
Current liabilities
17
3,168
4,016
Net current assets
112,981
198,791
Total assets less current liabilities
1,928,737
1,433,685
The funds of the trust
Unrestricted funds
1,928,737
1,433,685
1,928,737
1,433,685

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the Period ended 29 February 2024.

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 Period 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 18 April 2024
Mr A Mayo
Mr I Mayo
Trustee
Trustee
Company registration number 07163237 (England and Wales)
GRACE CHRISTIAN TRUST
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 6 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
486,271
556,803
Investing activities
Purchase of property, plant and equipment
(576,792)
(604,710)
Purchase of investments
(257,058)
(119,652)
Proceeds from disposal of  investments
247,409
96,300
Investment income received
14,013
13,206
Net cash used in investing activities
(572,428)
(614,856)
Net decrease in cash and cash equivalents
(86,157)
(58,053)
Cash and cash equivalents at beginning of Period
202,306
260,359
Cash and cash equivalents at end of Period
116,149
202,306
GRACE CHRISTIAN TRUST
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 7 -
1
Accounting policies
Company information

Grace Christian Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Otford Manor, Otford, Kent, TN15 6XF.

1.1
Reporting period

These accounts are for the period from 21 February 2023 to 29 February 2024, which is slightly over 12 months. For this reason, the comparative figures may not be entirely comparable.

1.2
Accounting convention

The financial statements have been prepared in accordance with the trust'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 trust is a Public Benefit Entity as defined by FRS 102.

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, [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.

1.3
Going concern

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.

1.4
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 or grantors 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 trust.
1.5
Income
Income is recognised when the trust 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 trust 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 trust 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.
GRACE CHRISTIAN TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 FEBRUARY 2024
1
Accounting policies (Continued)
- 8 -
1.6
Expenditure

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.

1.7
Property, plant and equipment

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:

Freehold land and buildings
2%
Fixtures and fittings
33%

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 the statement of financial activities.

1.8
Non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9
Impairment of non-current assets

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).

1.10
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.

1.11
Financial instruments

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.

GRACE CHRISTIAN TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 FEBRUARY 2024
1
Accounting policies (Continued)
- 9 -
Basic financial assets

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

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.

1.12
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 trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2
Critical accounting estimates and judgements

In the application of the trust’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.

3
Income from donations and legacies
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Donations and gifts
480,000
600,000
GRACE CHRISTIAN TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 10 -
4
Income from charitable activities
Charitable income
Charitable income
2024
2023
£
£
Charitable rental income
25,993
10,000
Analysis by fund
Unrestricted funds
25,993
10,000
5
Income from investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Income from listed investments
10,049
8,499
Interest receivable
3,964
4,707
14,013
13,206
6
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Investment management
5,875
5,665
GRACE CHRISTIAN TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 11 -
7
Expenditure on charitable activities
Charitable expenditure
Charitable expenditure
2024
2023
£
£
Direct costs
Depreciation and impairment
16,112
8,422

Property costs

7,922
2,360

Bank Charges

-
125
Foreign exchange (gains)/losses
577
(1,368)

Sundry expenses

514
-
25,125
9,539
Grant funding of activities (see note 8)
2,254
45,437
Share of support and governance costs (see note 9)
Governance
2,233
2,455
29,612
57,431
Analysis by fund
Unrestricted funds
29,612
57,431
8
Grants payable
Charitable expenditure
2024
2023
£
£
Grants to institutions:
Micro grants to local UK churches
1,854
508
Humanitarian aid grant to a church in the Middle East
-
32,660
Grain of Mustard Seed School
-
8,511
Humanitarian aid to Ukraine
-
1,450
1,854
43,129
Grants to individuals
400
2,308
2,254
45,437
GRACE CHRISTIAN TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 12 -
9
Support costs allocated to activities
2024
2023
£
£
Governance costs
2,233
2,455
Analysed between:
Charitable expenditure
2,233
2,455
2024
2023
Governance costs comprise:
£
£
Accountancy
2,220
2,160
Legal and professional
13
295
2,233
2,455

Governance costs above includes payments to the Independent Examiner of £2,220 for Independent Examination and other services.

10
Trustees

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

 

Total donations from trustees and their related parties amounted to £480,000.

11
Employees

The average monthly number of employees during the Period was:

2024
2023
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.
12
Gains and losses on investments
Unrestricted
Unrestricted
funds
funds
2024
2023
Gains/(losses) arising on:
£
£
Revaluation of investments
4,662
(38,724)
Sale of investments
5,871
(5,739)
10,533
(44,463)
GRACE CHRISTIAN TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 13 -
13
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

14
Property, plant and equipment
Freehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 21 February 2023
603,589
1,121
604,710
Additions
576,792
-
576,792
At 29 February 2024
1,180,381
1,121
1,181,502
Depreciation and impairment
At 21 February 2023
8,048
374
8,422
Depreciation charged in the Period
15,738
374
16,112
At 29 February 2024
23,786
748
24,534
Carrying amount
At 29 February 2024
1,156,595
373
1,156,968
At 20 February 2023
595,541
747
596,288

Freehold land and buildings contains a residential property purchased by the charity during the year.

 

This is being rented out to families in need, at a below market rate level of rent. As such, it is held for the fulfillment of charitable purposes, rather than investment returns, and hence is included as a tangible fixed asset in use.

15
Fixed asset investments
Listed investments
£
Cost or valuation
At 21 February 2023
638,606
Additions
257,058
Valuation changes
4,662
Disposals
(241,538)
At 29 February 2024
658,788
Carrying amount
At 29 February 2024
658,788
At 20 February 2023
638,606
GRACE CHRISTIAN TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 14 -
16
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Prepayments and accrued income
-
501
17
Current liabilities
2024
2023
£
£
Accruals and deferred income
3,168
4,016
18
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 21 February 2023
Incoming resources
Resources expended
Gains and losses
At 29 February 2024
£
£
£
£
£
General funds
1,433,685
520,006
(35,487)
10,533
1,928,737
Previous period:
At 21 February 2022
Incoming resources
Resources expended
Gains and losses
At 20 February 2023
£
£
£
£
£
General funds
918,038
623,206
(63,096)
(44,463)
1,433,685
19
Related party transactions

There were no disclosable related party transactions during the Period (2023 - none).

GRACE CHRISTIAN TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 FEBRUARY 2024
- 15 -
20
Cash generated from operations
2024
2023
£
£
Surplus for the Period
495,052
515,647
Adjustments for:
Investment income recognised in statement of financial activities
(14,013)
(13,206)
(Gain)/loss on disposal of investments
(5,871)
5,739
Fair value gains and losses on investments
(4,662)
38,724
Depreciation and impairment of property, plant and equipment
16,112
8,422
Movements in working capital:
Decrease/(increase) in trade and other receivables
501
(501)
(Decrease)/increase in trade and other payables
(848)
1,978
Cash generated from operations
486,271
556,803
21
Analysis of changes in net funds

The trust had no material debt during the year.

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