The trustees, who are also the directors for the purposes of company law, present their annual report and financial statements for the year ended 31 December 2024.
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with 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 objects of the charity are, for the benefit of the public:
1. to advance the Christian faith (in accordance with the Statement of Beliefs) in such ways and in such parts of the United Kingdom or the world, as the trustees from time to time may think fit;
2. to relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind, including through the provision of counselling and support in such parts of the United Kingdom or the world as the trustees from time to time may think fit; and
3. to advance education in such ways and in such parts of the United Kingdom or the world as the trustees from time to time may think fit.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Introduction
Much of what follows is, rightly, focussed on what we do, our ministry and support activities each of which comes about because of who we are. Who we are is the reason for what we do and who we are is a group of people who have taken up the invitation to be followers of Jesus. As such we are strengthened and sustained through our lives together in worship, prayer and fellowship which in turn are expressed in mission and service in line with Jesus words, life and example.
Review of the year & Church overview
As we moved into 2024 it actually felt like Covid was fully behind us and we could look forward to some stability and opportunities for ‘regrowth’ in terms of the church family and its service and outreach. Regular attendance was growing but, although close, not yet back to pre-covid levels.
New people joined us during the year and the generosity of people, as evidenced in general giving of time and money, was as buoyant as ever. Our cost, of course, continued to increase in many significant areas, particularly our mortgage and utilities.
Reaching beyond our walls
The bulk of our outreach and support activities remain focused on local people and their local communities or the use of the Vineyard Centre for activities to which people who are not ‘members’ of the church community are invited and welcomed.
Monday Games Afternoon
This continues to be a popular time for people to meet, drink tea or coffee, chat and play games – table tennis, pool or board games.
The Well
The Well, our community based café, is also a ministry and continues to spearhead our work of supporting local people and the community. It has been a year of change for The Well, and due to reduced volunteer numbers, we decided to reduce our opening hours from 4 days a week (Tuesday - Friday) to 3 days a week (Wednesday – Friday) to ensure sustainable operation. This 25% reduction in our opening hours has had an understandable impact on our traded income in the Café.
At the end of July The Well Manager, Andy, left the organisation to pursue other ministry directions and we are deeply grateful for his service. In October we were pleased to appoint a new Manager, Samantha. Despite all the change many of the services we provide remain the same as previous years. We enjoyed another great ‘MacMillan Coffee Morning’ in September at which £557.54 was raised for MacMillan.
In October we were the last stop on Victoria, Nicolas and Alexanders 31 miles of Walking to raise funds for Pancreatic Cancer. In total they raised over £2000 in their campaign.
We are grateful to all our individual donors and organisations who have supported the Trussell Trust Foodbank which we host. This foodbank has operated throughout the year providing crisis food support to 626 people in total.
The hospitality of the Foodbank was further enhanced through the operation of our Community Grocers, and the generosity of The Well Café, which over the year donated 260 pots of tea, 305 Lattes, 277 Cappuccino’s and 50 Americanos to our foodbank clients, other people in need and the volunteers supporting them.
We continue to offer our meeting room to organisations which offer free support to our community. This year we have hired that space to Mental Health Matters, Community Money Advice, Rape and Sexual Abuse Counselling Centre (RSACC) and Wellbeing For Life (WBfL) and we have also welcomed other organisations to use our café to engage with the community. These include, The local MP, the neighbourhood policing team, Believe Housing’s Employability Team, Durham County Council’s Employability Team, The Durham County Council Rough Sleeping Team and County Durham Drug and Alcohol Recovery Service (Waythrough).
We are grateful to all our volunteers who enable The Well to offer so much support to so many people. They go above and beyond to ensure that everyone who comes has the best experience they can, whether buying a coffee, using our food bank or accessing our community grocers.
We continue to build a sense of community, where anyone can come and be treated with dignity. As has always been the case our aim is to show the love of Jesus through our actions in the community. Our faith is central to everything we do.
The Well in the Community (WITC)
Now more established, The Well in the Community, a natural extension to the work of The Well. In short this service actively provides support for people with particular needs who have not or cannot come to The Well. We are regularly able to help people with varying requirements across a very diverse range of needs to those within our own networks and for those referred by numerous other agencies.
The help we offer include making phone calls, filling in benefit forms, funding for needs in crisis situations from Acts435, referrals to Food bank, CAP (Christians Against Poverty) budgeting advice, shopping for the ill or housebound, befriending the lonely and isolated, simple DIY tasks and mowing lawns etc.
And finally…..
Our senior leaders will be stepping down from leadership in July 2025 when their appointed successor will take up the position of ‘senior leader’. This major change will no doubt herald new opportunities along with refreshed vision, vitality, and growth.
The financial statements on pages 7 to 22 show the performance and current position of the company which the trustees consider to be satisfactory. The company has a formal reserves policy whereby the trustees would ideally like to hold free reserves to cover three months core costs expenditure which is currently estimated at approximately £10,000. The company currently has negative free reserves of £38,805, however, if long term liabilities are excluded this figure would increase to positive free reserves of £102,167, which would be in excess of the level set in the reserves policy. The trustees believe the shortfall in unrestricted free reserves will be made up in the forthcoming years.
WACC is a charitable company limited by guarantee, incorporated on 27th July 2009. The company was established under a Memorandum of Association which established the objects and powers of the company and is governed under its Articles of Association.
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:
Trustee recruitment and appointment
All trustee appointments will be by joint decision by the current trustees at the AGM.
Induction and training of new trustees
The charity trustees are currently one of the two senior leaders of the church plus five other church members. The trustees are familiar with the Charity Commission support material for trustees and they do not consider that further training will be required to be undertaken in the forthcoming year.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The risks have been reviewed by the trustees and systems established to mitigate those risks.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of WACC (the charity) for the year ended 31 December 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.
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.
Included in the comparative figures above is income totalling £11,581 and expenditure totalling £21,438 from discontinued activities.
WACC is a private company limited by guarantee incorporated in England and Wales. The registered office is The Well, 46 East Green, West Auckland, Bishop Auckland, County Durham, DL14 9HJ.
The financial statements have been prepared in accordance with 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 charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the 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.
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.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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.
Tangible fixed assets 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 bases:
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.
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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
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, 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
The charity is a company limited by guarantee, there being no issued share capital, and as such is not under the direct control of any individual but by the board of directors as a whole. At 31 December 2024 there were 7 members, each of whom had undertaken to contribute an amount not exceeding £5 in the event of a winding up.
Grants Receivable
Bank interest receivable
Raising funds
Church Activities
The Well
Church Activities
The Well
Vineyard Centre
Weardale Vineyard
Spiritual Development
Donations & Sponsorship
Outreach
Other costs
Donations to other charities
During the prior year the Weardale Vineyard activity was transferred into a separate charity. The total unspent cash generated by this activity totalling £17,436 was donated to the new charity.
Mr A C Hancock, trustee received remuneration totalling £11,619 during the year in his role as the church pastor. This remuneration was considered allowable under the company's articles of association which state that a trustee can be remunerated providing it is authorised by a resolution of the trustees and the trustees are satisfied they are the best person for the job.
No remuneration or other benefits from employment with the charity or a related entity were received by the other trustees.
No trustee expenses have been incurred.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
A transfer of £47 was made from restricted funds to unrestricted funds relating to unspent funds which are considered to not be repayable.
The remaining term of the bank loan as at 31 December 2024 was 19 years and 9 months. The loan is repayable by instalments and the interest rate as at 31 December 2024 was 8.25%.
The bank loan is secured against the property held by the company.
The bank loan is secured against the property held by the company.
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 restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Purpose of restricted funds:
Garfield Weston Foundation - To fund the capital expenditure on the Vineyard Centre project;
Donations for specific use - To fund specific church activities and the Vineyard Centre project;
Durham County Council - To fund the capital expenditure on The Well project;
All Churches Trust - To fund the capital expenditure on the Vineyard Centre project;
Foodbank Donations - To fund purchases for the foodbank;
Gaunless Gateway Small Grants Fund - To fund the running of a holiday club;
Pastoral Aid - To fund help to any church member in crisis;
Family Youth Worker Donations - To fund the cost of providing a family youth worker;
Helping Hands Donations - To fund outreach work;
Arnold Clark - To fund activities undertaken at The Well;
Family Fun Day - To fund a Family Fun Day;
Succession Planning - To fund the cost of appointing a new pastor;
Well Ministry Donations - To fund the Well Ministry work;
Believe Housing Food Project - To fund a food project at The Well.
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.
There were no disclosable related party transactions during the year (2023 - none).