The Trustees present their annual report and financial statements for the year ended 31 March 2024.
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)".
The charity’s objectives are to advance the Christian faith by such means as the charity shall determine from time to time.
Kings Church is a Bible believing charismatic Christian church. We seek primarily to honour and worship God – Father, Son and Holy Spirit, and to follow God’s leading and direction in mission. We are members of the Evangelical Alliance and are part of the Catalyst network of churches within the New Frontiers family.
The mission statement of the church is “We want to see lives and the Heathfield area transformed into all God has for us”. Over the year we have continued to see the church grow and as a result God's transforming power in the lives of individuals and families.
Our main activities are to run a variety of meetings that:
Focus on worship and prayer
Teach the Bible
Advance knowledge of the gospel in the Heathfield area
Promote a strong sense of community
Provide activities for children and young people
We implement these activities to respond to the spiritual and material needs of the communities in the Heathfield area and amongst our friends in the wider international scene.
Public benefit
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
We have continued our monthly ‘Gatherings’ as a church where we meet in smaller local groups one Sunday a month rather than centrally as one large Church. This has had a significant positive impact on our outreach and ability to serve our local communities, and we continually look for new opportunities to expand these groups, welcome new people and to serve and assist the communities around us. One of the groups has started a community garden in Horam which has been very well received by the local residents. We have also connected with local care homes and are exploring opportunities to connect with some of the local schools under TLG scheme, mentoring children who are perhaps struggling or have a difficult home life.
Another key part of our outreach work is the Alpha courses that we host at State Hall which typically run for 7-8 weeks at a time. These provide a forum for newcomers and guests to come and explore faith and what we can potentially offer as a Church. We have increased the frequency and profile of these courses in the last year and have seen significant growth in attendance over the last two courses as a result, with some guests now attending the Church regularly too.
We continue to run various children and youth activities, with Nikki Mostram employed on a part-time basis specifically to assist with organising and running the work with the children. We run a regular youth group on Friday afternoon immediately after school which has proved very popular with Children both inside and outside of Church membership. We partner with another local church to send a large group of children (aged 12+ years) to Newday camp for a week in summer, fully supported and supervised by our youth work leaders. As our numbers are increasing we are looking to employ a full-time youth leader in 2024 to invest in more youth activities, support, and connections with other local church youth groups.
We have made grants to assist churches we have contact with overseas, including some countries where practising Christianity is politically sensitive. We also give to local needs.
Noakes
We have seen trading at Noakes café stabilise over the last 12 months, helped by less volatile energy and running costs. It is well-established with a good reputation in the town, and monthly figures are now fairly consistent. It has proved to be a great asset for hosting Alpha Course evenings, a youth workspace, and generally increasing the profile and use of the building during the week beyond Sunday morning meetings. Due to the trading success of the café we have had to form a company separate from the Church (Noakes Heathfield Ltd.) for accounting and VAT purposes, but the business remains a wholly owned subsidiary of Kings Church Heathfield.
The broad aims of the café remain the same: to further the charitable work of the church by giving away any profits; to see the christian faith advance by making the building more attractive and welcoming to visitors; and to be a place of employment and training within the town.
Volunteers
A great deal of the work of the church both serving the church and the wider community is undertaken by volunteers who are members of the church. The Trustees are deeply grateful to them for their commitment in time and energy.
The church recorded a surplus of £2,931 during the year (2023: surplus of £27,675). General unrestricted funds at 31 March 2024 amounted to £312,507 (2023: funds of £309,576).
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three 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 charity’s current activities while consideration is given to ways in which additional funds may be raised.
The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. A rolling review program is being put in place to ensure that our policies and procedures are kept up to date with help from external consultants.
The charity is a company limited by guarantee and governed by a Memorandum and Articles of Association. The charity registration number, principal address details plus names and addresses of our advisors are listed on the information page of these accounts.
The Trust acts as the legal umbrella for the work of Kings Church Heathfield. The church is affiliated to the group known as Catalyst Network of Churches.
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:
New Trustees are elected by the majority vote of members at the Annual General Meeting. Suitable training is provided.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £10 in the event of a winding up.
The Trustees meet regularly and deal with the management of the church.
The day to day activities of the church are delegated to the church leadership team supported by office staff. The leadership team report to the Trustees on a regular basis.
The Trustees' report was approved by the Board of Trustees.
The Trustees, who are also the directors of KC Heathfield 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 UK 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.
I report to the Trustees on my examination of the financial statements of KC Heathfield (the charity) for the year ended 31 March 2024.
As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’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:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
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
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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
KC Heathfield is a private company limited by guarantee incorporated in England and Wales. The registered office is Chantry House, 22 Upperton Road, Eastbourne, East Sussex, BN21 1BF.
The financial statements 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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
All monies given to the Trust are marked or designated for the General fund. The Trust does not have any restricted funds.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Income from trading activities includes sales from our coffee shop, Noakes. Income via Noakes is recognised when received.
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.
Expenditure is recognised when there is an obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the appropriate heading and includes irrecoverable VAT.
Expenditure relating to events is recognised when the event occurs.
Gifts and donations are recognised when paid.
Property, fixtures 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:
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.
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.
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.
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).
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.
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, 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, 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
Where material, 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Conferences and special events
Hall hire income
Noakes coffee shop income
Following significant growth in the turnover for Noakes coffee shop, it was decided to hive this off into a separate trading subsidiary with effect from 1 January 2023.
Catering income
Management fee income (Noakes coffee shop)
Noakes coffee shop
Coffee shop purchases
Conferences, events and pastoral support
Provision of ministerial accommodation
Evangelistic courses and activities
Guest speakers
Books, music and tapes
Worship and PA
Children and youth
Printing, postage and stationery
Travel costs
Catering and other supplies
Telephone
Licenses
Child protection
The total aggregate donations received by the charity from its trustees and related parties amounted to £26,764 (2023: £29,461).
The average monthly number of employees during the year was:
The remuneration (wages and employer pension contributions) of the two key management personnel is as follows.
£34,963 was also paid to the two key management personnel for the provision of manse accommodation (2023: two key management personnel received £28,800 for manse accommodation).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The Charity has elected to use a previous GAAP revaluation (31 March 2008) of its freehold property as the deemed cost of that property on the transition date in accordance with the transitional provision contained in section 35.10 (d) of FRS102. The value used was provided by Stiles Harold Williams on an 'existing use basis with vacant possession' in accordance with the RICS valuation standards 6th edition.
The bank loan with Barclays Bank Plc is secured by legal charge over State Hall, Station Road, Heathfield, East Sussex. The interest rate on the loan is the Bank of England base rate plus 2.9% and it is due to be fully repaid in 2026-27.
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 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.
The church rents a manse for each of the two paid elders/pastors of the church on a rolling monthly basis.
There were no disclosable related party transactions during the year (2023 - none).
Details of the charity's subsidiaries at 31 March 2024 are as follows: