Charity registration number 1109814
Company registration number 05442834 (England and Wales)
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr T Mwafulirwa
Mr B Ravens (Chair)
Mrs R Waldron
Mrs H Watson
Mrs C Langlois
(Appointed 21 October 2022)
Miss M Cole
(Resigned 5 May 2023)
Mr M Nkansah
(Appointed 21 October 2022, resigned 5 May 2023)
Mr A C Gillies
(Resigned 5 May 2023)
Mr J Harding
(Resigned 20 June 2023)
Charity number
1109814
Company number
05442834
Principal address
Frontline Centre
147 Lawrence Road
Liverpool
L15 3HA
Independent examiner
Tony Stanley ACA
BWM
Tempest
Suite 5.1
12 Tithebarn Street
Liverpool
L2 2DT
Bankers
CAF Bank
PO Box 289
West Malling
Kent
ME19 4TA
Kingdom Bank Limited
Media House
Padge Road
Beeston
Nottingham
NG9 2RS
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
CONTENTS
Page
Trustees' report
1 - 8
Statement of trustees' responsibilities
9
Independent examiner's report
10
Statement of financial activities
11 - 12
Balance sheet
13 - 14
Statement of cash flows
15
Notes to the accounts
16 - 30
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

The trustees present their annual report and financial statements for the year ended 31 August 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 charity'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).

Frontline Trust is a registered charity originally constituted under a Declaration of Trust dated 9 June 1992. In May 2005 Frontline Trust was incorporated as a Private Company Limited by Guarantee, which is also a Registered Charity. The new company took over all assets, liabilities and activities of the former Trust on 1 September 2005.

 

An introduction to Frontline Church:

Our vision statement is ‘transformed by grace’. This vision speaks of our desire to be a transforming influence throughout the Liverpool City Region and also highlights that this transformation can only be achieved by God’s grace – by offering the life transforming power of a relationship with Jesus to the people around us. Within this vision is the recognition that each person that we meet is an individual, made in the image of God, with their own life journey. We believe that the good news about Jesus represents good news for all – accordingly, our priority is to welcome, accept and offer support to people wherever we can, irrespective of race, gender, sexual orientation, religious background or other irrelevant factors. We aspire to God’s standards of purity and holiness and teach these accordingly, whilst also recognising that no one is perfect and Jesus died that our sins might be forgiven.

Frontline Church was founded in 1992 by the merging of two small congregations. Since then it has grown from about 60 members into a community of around 900 men, women and children. It is a church with a big heart and big vision. The primary administration base is located at Frontline Centre, 147 Lawrence Road, Wavertree, Liverpool, L15 3HA, in what was previously a Territorial Army barracks and a Post Office engineering centre. This has been Frontline’s base since 1996 and the facilities have served us well over the years.

It has always been our desire to have a transforming influence in the whole of the Liverpool City Region and we now have a network of Churches and leaders that have been planted from Frontline and/or are supported by Frontline. Frontline Toxteth has developed over two decades, impacting local communities and raising up new indigenous leaders. CROWD Church launched during Covid pandemic to connect with an online community. As well as a Sunday gathering, these church plants are built on smaller groups looking for opportunities to connect with and serve the local community they are part of. In addition, we also have demographically focused plants for whom English is not their first language. We currently have two such established church plants - a Polish church plant and an Iranian church plant. We also provide leadership support and resourcing to West Derby Neighbourhood Church.

As well as focusing on our own localities, we work with other churches and agencies across Liverpool and beyond. Our longing is to be a transforming community within our own region and a model of what can be achieved in other parts of the UK and overseas.

Objectives and activities:

The objects of Frontline Trust are:

 

 

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities.

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -

Objectives reflecting the stated aims above are translated into our core activities, as outlined below.

 

Our mission is to build a vibrant church of wholehearted Christ followers who are committed to unlimited growth and influence. We have a congregation of around 900 adults and children within the church community who share this vision and purpose. Frontline has a deep-rooted mentoring ethos and we are committed to empowering our members to reach their full potential and to demonstrate their Christian values in everyday life.

Through a wide range of activities, including Christian outreach, worship, prayer, Holy Spirit ministry, teaching and personal discipleship, we see men, women and children being given a new sense of their value as human beings who are loved by God. Their lives take on a new sense of purpose as they are motivated to seek and pursue their unique destiny, strengthened and transformed through a personal relationship with Jesus and by being part of a community of believers who share a common faith and vision.

Over recent years our primary activity to relieve poverty, hardship, sickness and distress has been to invest heavily in the work of Imagine If Trust. We continue to do this through providing grant funding, management services and support facilities to Imagine If Trust.

Imagine If Trust runs a variety of projects including:

In addition to the support we provide to Imagine If Trust, we are also developing church programmes that make a contribution towards meeting this objective. We have a Pastoral Care department whose aim is support individuals during difficult times and seasons. This can take the form of practical support such as food shopping, meal rotas or emotional support.

We also partner and provide meeting space for the debt counselling agency of Freedom Church.

Lifelong learning is an implicit part of the Frontline ethos, and this is reflected in the mentoring system within the church and through our Sunday teachings, which are relevant to people’s daily lives.

In addition, several of the projects run by Imagine If Trust promote learning or deliver training programmes.

 

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -

Since purchasing our current building, we have always sought to utilise the facilities in furtherance of our objectives and for the benefit of the community. Around 500 people visit our Wavertree facility for a service each Sunday. In addition over 300 carers and children use the building during the week through the Sticky Fingers project, whilst the FoodHub sessions, held twice a week, see around 80 people who find friendship and community whilst choosing their shopping.

We also provide facilities for community training courses and make facilities available to other agencies and community groups, such as providing rooms for a local charity teaching English to young students.

Other community activities that are hosted in the Frontline Centre include music lessons and rehearsals, food storage, birthday parties, events promoting fostering and adoption, and family fun days.

Our partners:

We would like to offer our thanks to all the organisations and individuals who have supported us in our work this year, including all of our church members, volunteers, donors and sponsors. Everything Frontline has achieved this year has been reliant on your valuable contributions, in all their various forms. Thank you!

Achievements and performance

Church:

The main focus of the year has been the continued development and implementation of our strategy for planting multiple new churches across the Liverpool City Region and further afield. In Toxteth, Frontline Toxteth has continued to develop as a church plant, impacting local communities and raising up new indigenous leaders. CROWD Church launched during Covid pandemic, as an online Church and continues to develop with new online content and podcasts. Our Iranian and Polish Speaking congregations continue to run, but our Wirral congregation has closed.

On a Sunday we run church services in the Wavertree building and this provides an opportunity for people to meet others, worship together, and provide teaching and encouragement, which enables people to grow and develop in their thinking and understanding of the Christian faith. Additionally, these services are an opportunity for those who are developing new skills, to be trained and mentored in areas such as team leadership, preaching, worship leading, etc.

Throughout the year the church has continued to develop our Missional Communities and we have 18 separate mid-week groups with just under 300 people participating in them. These diverse groups are organised by geography, life stage or particular interests and run a variety of activities in the local community, as well as supporting people in their faith. In line with our objective of advancing the Christian faith, these community groups encourage members to look for ways to communicate their faith to others, both in their daily lives and also when the groups meet.

Liverpool has a large student population and Frontline Church has a long history of seeking to connect with and serve those coming to the city to study. Many of the key church leaders today were themselves first introduced to Frontline when they came to Liverpool as students. We have continued to prioritise connecting with students and welcoming them into the church. We have also been working closely with Imagine If to coordinate with them, providing some spiritual care and input for people involved in their projects where that is appropriate.

We have continued to develop our partnership with Kairos Connexions (Kx). This is a network of churches in the UK and further afield who carry similar core vision and values and are looking to develop Missional Communities as a central aspect of their strategy for growth. We believe the wider connection with Kx churches brings strength to Frontline, particularly through the opportunity to participate in learning communities, share best practice and access respected teachers, as well as offering the opportunity for us to support and encourage other churches in the UK.

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2023
- 4 -

Projects and ministries:

Our Christian ethos is the motivation for investing into and supporting people regardless of religion, gender, sexual orientation or race. Our objectives speak of our priority to see the transformation of people and places by the practical impact of our Christian faith.

In pursuit of this, in 2012 we supported the establishment of a new independent charity, Imagine If Trust, to act as an umbrella organisation for the development of social transformation projects. Imagine If Trust has a separate board of trustees and is free to develop in pursuit of its own priorities. Frontline, however, continues to be a major supporter. During the year Frontline Trust made grants of £41,225 to Imagine If Trust (2022: £39,185) and supported over 75 church members to give their skills and time by volunteering for Imagine If Trust projects.

As well as supporting Imagine If Trust projects, Frontline is developing other initiatives that meet the objective of seeing transformation in the people and places around us.

Over the last ten years we have partnered with the Hope Foundation to host a Christmas lunch at the Frontline building for those who are homeless or isolated. Through an amazing team of over 30 volunteers, we were able to host over 200 people on Christmas day. Our thanks to the volunteers and various partners for the enormous generosity that enabled this event to happen.

Overseas:

Part of our core values is to see the same transformation in other nations that we are working towards in Liverpool. This predominately expresses itself in us sending individuals to other nations and giving financially to invest in various situations around the world. Over the last year some of those living and working overseas were able to come back and visit Frontline. We spent a weekend in June debriefing, training and encouraging these people. As well as encouraging our overseas workers, this profile also encourages the church to support them and even consider spending some time overseas themselves. Not all of the individuals living overseas were able to come back and visit but we have continued to support them utilising digital technology.

During the year we supported 18 people who are working in six different countries. While each overseas worker has different opportunities, they all look to bring transformation to the people and places with whom and in which they are living. Some do this primarily through engaging with those in the workplace and others are more publicly hosting meetings and planting churches. We count it as a privilege to have connection with men and women who want to invest their lives in this way.

 

Volunteering:

The best way to feel part of a large church is to get involved through volunteering. At Frontline we seek to offer relevant and fulfilling opportunities to our members to volunteer in pursuit of our vision to see our city ‘transformed by grace’.

During the year over 200 members of Frontline volunteered which is broadly the same as in the previous year. Roles included leading Missional Communities, stewarding in services, assisting with Kids Zone, providing hospitality, and many more. Through these practical acts of service Frontline members get to contribute their gifts and also get the benefits of playing their part in a team.

 

Governance:

In the last four months of the year the board of Trustees lost three members. One of these was planned but two were due to circumstances that were beyond our control. It is the board’s intention that in the next few months some consideration with be given to reviewing our skill set as a board and appointing new Trustees. This process will aim to keep the board as varied and fit for purpose as possible.

 

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2023
- 5 -
Financial review

Overall, the picture is one of the organisation continuing to perform well. Our income has remained similar to previous years and within budget. That said, the Trustees are very mindful that the potential financial impact of the pandemic and the cost-of-living crisis could continue to be felt over the next 5-10 years as the economy recovers. Virtually all of our income is based on personal donations from our members. As the economic picture continues to be unstable and personal incomes fluctuate, we are continuing to be aware that our income as a trust could reduce.

In the year our income was above budget at £668,236. During this financial year we chose to spend some of our additional reserves that had been built up over the previous years. This resulted in a deficit of £58,815 for the year (2022: deficit of £20,221). In the latter half of the year, this did see our reserves drop and a temporary spending freeze was implemented from June to August to regain balance.

With that in mind, the Trustees have taken a prudent approach to the financial future. They have prepared a cautious budget for 2023/24 which anticipates a small reduction in our income. We are also pursuing other forms of funding to see if we can boost our income in different ways. This will ensure we can continue to deliver on the objectives of the charity in the year ahead.

Looking ahead into 2024 the trustees are confident that the organisation is financially robust enough to be a going concern for the next 12 months and that we will maintain our ability to finance high quality activities and services which will enable us to achieve our primary objectives.

Investment policy:

There are no restrictions on the investment powers of the trustees.

Our liquid funds are currently held in various bank savings accounts.

Reserves policy:

Our reserves policy reflects our desire to maintain a liquid reserve to draw on in the event of any reduction in our donated income stream, to provide a measure of protection to our ability to deliver our core objectives. We continue to aim to have a fund of free and liquid reserves equivalent to at least £30,000.

The Trust’s balance sheet is strong and well financed, but because the majority of funds are either restricted or designated or tied up in fixed assets, managing the day-to-day cash flow can be more challenging. Operational (free) reserves at the year-end stand at £39,474 (2022: £59,239) and are above our target for free reserves.

Designated funds:

From time to time, we decide to set aside certain funds to allow for the development of a new project or to facilitate our desire to support external agencies or individuals, whether in the UK or abroad, whose work contributes to our overarching purposes.

Current funds include:

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2023
- 6 -

Risk policy

The trustees have identified the following main risks to our organisation and responses to these risks are outlined below.

 

Health and Safety

A Health and Safety policy has been written and signed by the chairman of the board of trustees. Work has been carried out on risk assessments including an assessment of fire safety and asbestos. A staff member and a trustee have been identified as having specific responsibilities for health and safety. Health and Safety induction and training is provided for all staff and volunteers as appropriate.

 

External Risks

One of our potential risks is adverse publicity in an increasingly secular society that can be critical of Christian values. Since we are an independent organisation, our membership of the Evangelical Alliance and Together for the Harvest, both organisations focussed on the development of church co-working, along with close relationships with churches of various denominations all contribute to building our credibility. Our presence in the community also minimises this risk as we work tangibly and visibly to serve the community’s needs.

 

Child Protection & Vulnerable Adults

A Child Protection and Vulnerable Adults Policy is in place. The Trustees take very seriously their responsibility to protect and safeguard the welfare of children, young people and vulnerable adults entrusted to Frontline’s care. All staff and volunteers (not just those who have access to children, young people and vulnerable adults) are briefed on their responsibilities and are made fully aware of the organisation’s child protection and vulnerable adult’s policy and procedures. Any of our staff and volunteers involved in activities where they may have contact with children, young people or vulnerable adults are required to undergo DBS checks. A Safeguarding Team has been appointed and meets regularly to ensure that the policy is being implemented and to ensure that the policy remains both effective and up to date.

 

Financial Risks

Guidelines are issued to all staff on proper cash handling procedures and are updated at least once a year. Instructions are issued to avoid making purchases in cash unless it is unavoidable. Internal departmental procedures have been standardised. Departmental records and central accounts are monitored regularly and all departmental budget holders receive monthly budget performance reports.

The trustees have reviewed and updated the policies in relation to bribery and money laundering and have provided these to all staff along with training in identifying potential areas of risk and how to manage these.

The trustees have updated policies in line with GDPR legislation and during the year provided all staff with training in relation to their responsibilities regarding the management and use of personal data.

We receive regular guidance on financial risks from our accountant, the Charity Commission, HMRC and various third sector agencies. This keeps us up to date with newer areas of risk. Our accountant also advises us of any specific areas of weakness that may be identified during the annual independent examination, so that we can take immediate steps to correct or protect against them.

 

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -

Future aims:

The various leadership teams have continued to focus on our core vision and values. The year ahead will see us continue to seek to deliver on our objectives regardless of the challenges that lie ahead. We will look to maximise on the opportunity to express our values in new ways and will continue to communicate the distinctive of the church with confidence and clarity. This will build well on previous work done in this area and will continue to enable us to work out our key objectives. These are:

Vision

“Transformed by grace.”

Values

Our 4 core values:

- Authentic Devotion

- Extended Family

- Confident Witness

- Kingdom Impact

These values increasingly shape the decisions we make and underpin how we outwork our objectives.

Structures

The main structures we have identified for achieving our vision and expressing our values are:

- Missional Communities

- Church Plants / Missional Hubs (gatherings of Missional Communities up to about 100 people)

- Sunday services

- Outreach projects

Structure, governance and management

The Trustee Team oversee the legal and financial responsibilities of the Trust, and have the overall legal responsibility for the charity. The Trustee Team engages with, and delegates to a Wider Leadership Team. (WLT) This team, which includes volunteers as well as paid employees meets to implement the direction and vision of the charity. Within the WLT, and comprising primarily of paid employees, the Senior Leadership Team (SLT) are able to meet more often to help set overall direction and priorities of the church. Within the SLT a smaller Executive Team deal with matters on a day to day basis.

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:

Miss M Cole
(Resigned 5 May 2023)
Mr A C Gillies
(Resigned 5 May 2023)
Mr J Harding
(Resigned 20 June 2023)
Mr T Mwafulirwa
Mr B Ravens (Chair)
Mrs R Waldron
Mrs H Watson
Mr M Nkansah
(Appointed 21 October 2022 and resigned 5 May 2023)
Mrs C Langlois
(Appointed 21 October 2022)
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -

Executive Team

John Harding (Senior Pastor), Jack Mariner (Missional Communities Pastor), Hebe Ambler (Children and Families Pastor), Chris Norman (Operations Manager) (resigned September 2023)

 

Senior Leadership Team

The Executive Team plus Sue Uddin (Pastoral Care), Jennie Taylor (Integration Lead) (resigned December 2023), James Sloan (Community Projects), Jenny Mariner (Leadership and Development Pastor)

 

The remuneration of the key management personnel is reviewed each year by the Chair and Finance trustees. Any recommendations for adjustment are included in the annual budgets and as such approved by the full board of trustees. The trust does not use any external pay scales in deciding the remuneration of the key management personnel.

Method of appointment of trustees:

Vacancies are filled from applicants responding to either open advertisements to the church congregation or to personal invitations proffered to individuals with particular skills matching current needs. Applicants receive a comprehensive information pack including the most recent annual reports and standard Charity Commission Publications and documents on the Governance responsibilities of trustees.

Appointments follow an interview with the Chair and at least one other board member.

 

No other person or body is involved and no individual has the power of appointment.

Induction and training of new trustees:

Relevant training and induction is offered to new trustees in line with their experience and knowledge of the workings of Frontline Trust and the wider responsibilities of a trustee. New trustees are generally invited to attend one or two board meetings as an ‘observer’ prior to a final decision to appoint.

Small company provisions

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

 

On behalf of the board of trustees

Mr B Ravens (Chair)
Trustee
Dated: 28 March 2024
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 AUGUST 2023
- 9 -

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

 

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the trustees are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

 

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

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF FRONTLINE TRUST
- 10 -

I report to the charity trustees on my examination of the accounts of Frontline Trust for the year ended 31 August 2023.

 

This report is made solely to the charity's trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My examination has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my examination, for this report, or for the opinions I have formed.                    

Responsibilities and basis of report
As the charity's trustees of Frontline Trust (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 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 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 the Charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I can 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 Charity 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.
Tony Stanley ACA
BWM
Tempest
Suite 5.1
12 Tithebarn Street
Liverpool
L2 2DT
Dated: 11 April 2024
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -
Current financial year
Unrestricted
Restricted
Total
Total
funds
funds
2023
2023
2023
2022
Notes
£
£
£
£
Income from
Donations and legacies
3
596,571
27,948
624,519
617,290
Charitable activities
4
41,055
-
41,055
19,870
Investments
5
814
-
814
77
Other income
6
1,848
-
1,848
1,684
Total income
640,288
27,948
668,236
638,921
Expenditure on:
Charitable activities
7
704,066
22,985
727,051
659,142
Total expenditure
704,066
22,985
727,051
659,142
Net movement in funds
(63,778)
4,963
(58,815)
(20,221)
Reconciliation of funds
Fund balances at 1 September 2022
538,278
610
538,888
559,109
Fund balances at 31 August 2023
474,500
5,573
480,073
538,888

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

All income and expenditure derive from continuing activities.

The movement in funds detailed above complies with the requirements for a statement of changes in equity under FRS102.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023
- 12 -
Prior financial year
Unrestricted
Restricted
Total
funds
funds
2022
2022
2022
Notes
£
£
£
Income from
Donations and legacies
3
617,290
-
617,290
Charitable activities
4
19,870
-
19,870
Investments
5
77
-
77
Other income
6
1,684
-
1,684
Total income
638,921
-
638,921
Expenditure on:
Charitable activities
7
657,392
1,750
659,142
Total expenditure
657,392
1,750
659,142
Net movement in funds
(18,471)
(1,750)
(20,221)
Reconciliation of funds
Fund balances at 1 September 2021
556,749
2,360
559,109
Fund balances at 31 August 2022
538,278
610
538,888

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

All income and expenditure derive from continuing activities.

The movement in funds detailed above complies with the requirements for a statement of changes in equity under FRS102.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
434,534
449,697
Investments
13
2
2
434,536
449,699
Current assets
Debtors
16
8,144
11,930
Cash at bank and in hand
58,754
96,834
66,898
108,764
Liabilities
Creditors: amounts falling due within one year
17
(21,361)
(19,575)
Net current assets
45,537
89,189
Total net assets
480,073
538,888
The funds of the charity
Restricted funds
19
5,573
610
Unrestricted funds
Other designated funds
20
490
29,340
Other charitable funds
Funds represented by fixed assets
434,536
449,699
Free reserves
39,474
59,239
General unrestricted funds
474,010
508,938
Total unrestricted funds
474,500
538,278
Total charity funds
480,073
538,888
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2023
31 August 2023
- 14 -

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 August 2023.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 28 March 2024
Mr B Ravens (Chair)
Trustee
Company Registration No. 05442834
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
23
(32,598)
6,238
Investing activities
Purchase of tangible fixed assets
(6,296)
(10,217)
Investment income received
814
77
Net cash used in investing activities
(5,482)
(10,140)
Net cash used in financing activities
-
-
Net decrease in cash and cash equivalents
(38,080)
(3,902)
Cash and cash equivalents at beginning of year
96,834
100,736
Cash and cash equivalents at end of year
58,754
96,834
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 16 -
1
Accounting policies
Charity information

Frontline Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Frontline Centre, 147 Lawrence Road, Liverpool, L15 3HA.

1.1
Accounting convention

The accounts have been prepared in accordance with the charity'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)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

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 accounts 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 accounts 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 accounts.

1.3
Charitable funds

Funds held by the charity are:

 

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

 

Designated funds - these are funds set aside by the trustees out of unrestricted general funds for specific future purposes.

 

Restricted funds - these are funds that 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. Capital grants receivable are treated as restricted income until they are expended. Thereafter they are treated as designated funds, provided the restriction has been discharged, and then released to general funds over the life of the related asset. Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

 

 

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 17 -
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.

Voluntary income including donations and gifts are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when the donor has imposed conditions which must be met before the charity has unconditional entitlement.

 

Investment income is recognised on a receivable basis.

 

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions is recognised as earned (as the related goods or services are provided). Grant income included in this category provides funding to support performance activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

 

On occasions where the charity received assistance in the form of donated goods and facilities, and the benefit is quantifiable and material, an appropriate amount is included in income and an equivalent amount as expenditure under the relevant heading. The value of services provided by volunteers has not been included in these accounts.

 

Income from donated services and facilities is included at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised when there is no financial cost borne by a third party.

1.5
Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The irrecoverable element of VAT is included with the item of expenses to which it relates as this cannot be recovered by the charitable company.

 

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries.

    

Governance costs

This category includes those costs associated with meeting the constitutional and statutory requirements of the charity.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost or deemed cost for land and buildings on transition to FRS 102, net of depreciation and any impairment losses. All assets costing more than £1,000 are capitalised at cost.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings
2% p.a. on a straight line basis
Fixtures, fittings & equipment
33%p.a. on a straight line basis (computers) and 20% p.a. on a reducing balance basis (fixtures, fittings and equipment)

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.

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 18 -
1.7
Fixed asset investments

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

The wholly-owned trading subsidiary, Frontline Trading (UK) Limited is incorporated in the United Kingdom. The company ceased trading on 1 September 2013.

1.8
Impairment of fixed assets

At each reporting end date, the charity 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).

1.9
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.

1.10
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.

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 only measured at amortised cost using the effective interest method if payable in more than one year.

Derecognition of financial liabilities

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

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 19 -
1.11
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.

1.12
Retirement benefits

The company makes contributions into employees' private pension plans. The contributions are charged as expenditure in the year in which they are paid.

 

1.13

Taxation

The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on qualifying income or gains falling within those exemptions. Recovery is made of tax deducted from income and from receipts under Gift Aid. The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.

2
Critical accounting estimates and judgements

In the application of the charity’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.

 

There were considered to be no critical accounting estimates or judgements applied in the preparation of these financial statements.

3
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
funds
funds
funds
general
general
2023
2023
2023
2022
£
£
£
£
Donations and gifts
595,571
27,948
623,519
608,668

Core grants

1,000
-
1,000
8,622
596,571
27,948
624,519
617,290
Grants receivable for core activities
Adore
-
-
-
8,622
Other
1,000
-
1,000
-
1,000
-
1,000
8,622
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 20 -
4
Charitable activities
Unrestricted
Unrestricted
funds
funds
general
general
Church
Church
2023
2022
£
£

Income from charitable activities

41,055
19,870
5
Investments
Unrestricted
Unrestricted
funds
funds
general
general
2023
2022
£
£
Interest receivable
814
77
6
Other income
Unrestricted
Unrestricted
funds
funds
general
general
2023
2022
£
£
Other income
1,848
1,684
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 21 -
7
Charitable activities
Church
Church
2023
2022
£
£
Staff costs
397,820
347,643
Depreciation and impairment
21,459
22,451

Premises expenses

73,509
55,043

Repairs and renewals

12,924
14,813

Motor and travel

29,641
27,194

Legal and professional

12,601
12,233

Self employed workers

348
3,947

Course and conference expenses

23,158
9,942

IT costs

25,816
24,428

Office expenses

12,133
13,657

Food, drink and other purchases

33,946
39,589

Sundry expenses

8,414
5,920
651,769
576,860
Grant funding of activities (see note 8)
69,851
75,172
Share of governance costs (see note 9)
5,431
7,110
727,051
659,142
Analysis by fund
Unrestricted funds - general
704,066
657,392
Restricted funds
22,985
1,750
727,051
659,142

 

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 22 -
8
Grants payable
2023
2022
£
£
Church
Grants to institutions:
Imagine If Trust
41,225
39,185
Together for the Harvest
3,600
3,600
Fusion
500
-
The 4 Points Ltd
4,800
4,800
The Bridge Trust
7,726
5,000
KX
-
4,000
Other grants
-
1,315
57,851
57,900
Grants to individuals
12,000
17,272
69,851
75,172
9
Support costs
Support costs
Governance costs
2023
2022
£
£
£
£

Independent examination fees

-
2,160
2,160
1,930

Accountancy fees

-
3,271
3,271
5,180
-
5,431
5,431
7,110
Analysed between
Charitable activities
-
5,431
5,431
7,110

Support and governance costs are recharged to church activities.

Governance costs includes payments to the independent examiner of £2,160 for independent examination fees (2022- £1,930) and payments to the independent examiner for accountancy services of £3,271 (2022- £5,180).

 

10
Trustees

No trustees were reimbursed expenses during the year in regards their roles as trustees (2022- no trustees were reimbursed expenses) . For details on expenses reimbursed and remuneration with regards employment, see note 24.

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 23 -
11
Employees
Number of employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Charitable
25
21
Employment costs
2023
2022
£
£
Wages and salaries
360,316
317,333
Social security costs
22,774
16,968
Other pension costs
14,730
13,342
397,820
347,643
There were no employees whose annual remuneration was £60,000 or more (2022: none).
12
Tangible fixed assets
Land and buildings
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 September 2022
496,624
340,396
837,020
Additions
-
6,296
6,296
At 31 August 2023
496,624
346,692
843,316
Depreciation
At 1 September 2022
85,500
301,823
387,323
Depreciation charged in the year
9,932
11,527
21,459
At 31 August 2023
95,432
313,350
408,782
Carrying amount
At 31 August 2023
401,192
33,342
434,534
At 31 August 2022
411,124
38,573
449,697

The assets are all used for direct charitable purposes.

 

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 24 -
13
Fixed asset investments
Other investments
Cost
At 1 September 2021 and 31 August 2022
2
Carrying amount
At 31 August 2023
2
At 31 August 2022
2
2023
2022
Other investments comprise:
Notes
£
£
Investments in subsidiaries
14
2
2
14
Subsidiaries

Details of the charity's subsidiaries at 31 August 2023 are as follows:

Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
Frontline Trading (UK) Limited
England and Wales
Dormant
Ordinary
100.00
-
The aggregate capital and reserves for the year of subsidiaries excluded from consolidation was as follows:
Name of undertaking
Capital and Reserves
£
Frontline Trading (UK) Limited
2.00
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 25 -
15
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
66,898
108,764
Equity instruments measured at cost less impairment
2
2
Carrying amount of financial liabilities
Measured at amortised cost
15,408
15,006
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Sundry debtors
8,144
11,930
17
Creditors: amounts falling due within one year
2023
2022
£
£
Other taxation and social security
5,953
4,569
Trade creditors
4,820
281
Other creditors
4,290
9,236
Accruals
6,298
5,489
21,361
19,575
18
Retirement benefit schemes

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

The charge to the statement of financial activities in respect of defined contribution schemes was £14,730 (2022: £13,342).

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 26 -
19
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
Balance at
1 September 2021

Expenditure

Balance at
1 September 2022

Income

Expenditure

Balance at
31 August 2023
£
£
£
£
£
£
Coronavirus hardship fund
2,275
(1,750)
525
98
-
623
Other funds
85
-
85
-
-
85
Operation promises
-
-
-
27,850
(22,985)
4,865
2,360
(1,750)
610
27,948
(22,985)
5,573

The Coronavirus Hardship Fund is a fund created by individual donors and an allocation from general reserves. The fund is available to Frontline Church members who are suffering personal financial hardship due to the economic impact of coronavirus.

 

Other Funds consist of small projects / initiatives for which finances were specifically raised and utilised.

 

Operation Promises funds are received from donors for the work of the Iranian pastor.

 

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 27 -
20
Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Movement in funds
Movement in funds
Balance at
1 September 2021

Income

Expenditure

Balance at
1 September 2022

Income

Expenditure

Transfers
Balance at
31 August 2023
£
£
£
£
£
£
£
£
Coronavirus Impact Fund
25,000
-
-
25,000
-
-
(25,000)
-
Coronavirus Hardship Fund
3,000
-
(1,750)
1,250
-
-
(1,250)
-
Roof Fund
-
-
-
-
7,800
(7,800)
-
-
Kairos Connexion
-
65,934
(65,934)
-
-
-
-
-
Tithe of Tax Rebates
-
8,747
(8,747)
-
1,800
(3,600)
1,800
-
Advance
-
24,582
(24,582)
-
25,793
(25,303)
-
490
India
3,062
4,428
(4,400)
3,090
6,628
(13,358)
3,640
-
31,062
103,691
(105,413)
29,340
42,021
(50,061)
(20,810)
490
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
20
Designated funds
(Continued)
- 28 -

The Coronavirus Impact fund represents funds set aside from reserves to protect the organisation from the potential downturn in income over the coming years due to the longer term economic impact of the coronavirus pandemic, coupled with an anticipated reduction in government support.

The Coronavirus Hardship Fund is a fund created by individual donors and an allocation from general reserves. The fund is available to Frontline Church members who are suffering personal financial hardship due to the economic impact of coronavirus.

 

During the year a major section of roof was renewed at a cost of £23k.  The Roof Fund was set up to receive donations given specially for this purpose.

 

Kairos Connexion and Emmaus consist of funds that are designated to support the work of these two projects. Both Kairos Connexion and Emmaus focus on supporting church leaders across the UK.

 

Tithe of Tax Rebates is created by an allocation from our core tax refund income. The TOT Fund enables us to make gifts and grants to people or organisations whose work we wish to encourage and support.

 

Advance is a fund that has been aside to support those engaged in the mission of the church, primarily in other nations or to those from other nations who are now living in our region.

The India Fund is made up of monies allocated to the support of churches and particularly church leaders in India. This fund is generated from a small percentage of our income.

 

FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 29 -
21
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
Restricted funds
Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Fund balances at 31 August 2023 are represented by:
Tangible assets
434,534
-
434,534
449,697
-
449,697
Investments
2
-
2
2
-
2
Current assets/(liabilities)
39,964
5,573
45,537
88,579
610
89,189
474,500
5,573
480,073
538,278
610
538,888
22
Operating lease commitments

At the reporting end date the charity had no outstanding commitments for future minimum lease payments under non-cancellable operating leases.

23
Cash generated from operations
2023
2022
£
£
Net expenditure for the reporting period (as per the statement of financial activities)
(58,815)
(20,221)
Adjustments for:
Investment income recognised in the statement of financial activities
(814)
(77)
Depreciation of tangible fixed assets
21,459
22,451
Movements in working capital:
Decrease in debtors
3,786
6,925
Increase/(decrease) in creditors
1,786
(2,840)
Net cash provided by operating activities
(32,598)
6,238
FRONTLINE TRUST
COMPANY LIMITED BY GUARANTEE
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 30 -
24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate remuneration
99,636
107,516

Transactions with related parties

During the year the company entered into the following transactions with related parties:

 

John Harding and Marisa Cole were trustees during the year and were also employed by the charity. The governing document permits trustees to receive grants and remuneration, provided such trustees are not in the majority. Any such remuneration level is set by the board, excluding those members with a conflict of interest. Both were considered to be key management and their salaries are included in the aggregate remuneration for key managers noted above. John Harding resigned as a trustee on 20 June 2023. Marisa Cole resigned from her employment and role as trustee on 5 May 2023.

 

During the year, expenses were repaid to John Harding at a total value of £1,827 in relation to his role as Pastor. No expenses were paid in relation to his role as Trustee.

 

John Harding is also a trustee of Moreton Community Centre. During the previous year the Centre gave grants of £8,680 to Frontline Trust.

 

John Gibson was employed by the charity for part of the prior year as the CEO. He was also a trustee of Imagine If Trust until 7 July 2022 when he resigned.

 

Imagine If Trust is an independent charitable company. During the year Frontline Trust has assisted Imagine If Trust by providing grants (see note 8). Imagine If Trust have also recharged sundry expenses.

Trustees donated £36,825 (2022: £31,343) to the charity in the year.

 

There were no other related party transactions in the year.

25
Company limited by guarantee

The Frontline Trust is incorporated under the Companies Act as a company limited by guarantee. The liability of the members is limited to £10.

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