The Directors present their annual report and financial statements for the year ended 31 July 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 Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 church's objectives are the advancement of the Christian faith primarily in the Carfin and Motherwell area and the rest of the world by all means consistent with the teachings of the Bible, including worship, communion, mission, prayer, witness, education, community service and the support of agencies and individuals and other charitable organisations involved in Christian work, the relief of poverty or other social needs.
Significant highlights, events and developments of note during the year include the following:
The John McCormack Community Centre continued to be an excellent venue to hold services, both in terms of the facilities and the strategic location within the community. Sunday services were held each week, including a Sunday School for Primary School children. Numbers have grown to around 90 on Sunday mornings.
The “New Craig Kidz,” club for Primary School children on Tuesday evenings continued to grow numerically and good relationships were built with the families who brought their children. Christmas food parcel gifts were distributed to each family connected with the club, plus some other families in the community who were brought to our attention. A new youth club, ‘G1,’ commenced in October 2023 for age S1-S4. This was held in the Andrew Hamilton Community Centre, very close to the existing Centre, thus allowing both clubs to run at the same time before the church came together for regular prayer meetings afterwards on the Tuesday evenings, with 40-50 in attendance. The Sunday night ‘New Craig Youth’ group also continued to meet every 2nd Sunday - this is for all young people of High School age and above.
Another Community Fun Day was planned for September 2024 to launch the season of work among children and youth. Previous attendance at these events was around 400+.
A new work commenced in October 2023 in Keir Hardie Primary School, local to the church. This has developed into monthly assemblies and key links have been built with the school, extending into the clubs on Tuesday evenings. Enquiries have now been made by Newarthill Primary School for the church to provide a similar service there.
The church had another excellent residential weekend at Faskally House with numbers around 70 in attendance.
The Spiritual Development programme that was launched 2023 has proven to be very worthwhile and has resulted in a number of optional courses being made available to the church. The plan is to develop this further.
In April 2024 there was a 1-week visit to the church from a team of Portuguese missionaries/students. An intense programme of activity in the community was designed and the team engaged very well with the church. It is hoped that similar mission awareness visits or trips can be planned in the future.
New Craig Community Church celebrated its 10th anniversary in May 2024 with a special weekend of activity and a thanksgiving service. The growth, development and community impact over this period has been very significant.
Per the Statement of Financial Activities on page 4, the charity reported both Net Income (i.e. a Surplus) and Net Movement in Funds for the year of £26,080 (203 Surplus £16,834) and total funds of £125,477 (2023 - £99,397) at 31 July 2024 of which £44,210 (2023 - £34,210) related to Restricted Funds.
Reserves Policy
It is the policy of the church to maintain Unrestricted Funds (i.e. the church's free reserves excluding fixed assets), at a level which equates to approximately three months of unrestricted expenditure in order to finance and maintain the church's ongoing work and ministries. As indicated on page 4, the church's Unrestricted Funds, represented by the General Fund, amounted to £80,898 (2023 - £64,064) at 31 July 2024 which is above the required level and was acceptable to the Directors.
Grant making policy
The church makes grants from its gift income to individuals and organisations that are generally known to the Directors and the church. The beneficiaries are involved in activities or ministries compatible with the church's objectives.
Risk management
The Directors assess the major risks to which the charity is exposed on an ongoing basis and have established procedures to mitigate those that are identified as a result of those reviews.
Governing document
New Craig Community Church ("the church") was incorporated on 8 July 2016 as a company limited by guarantee and governed by its Memorandum and Articles of Association. The company obtained recognition as a charity by the Office of the Scottish Charity Regulator on 12 July 2016.
The Directors who served during the year and up to the date of signature of the financial statements were:
Appointment of Directors
In accordance with the company's Articles, only the Elders of the church can be the Directors of the company. The Elders may at any time assume any other person who they consider suitable provided they meet the requirements as outlined in the Articles. As part of their induction programme, new Directors are required to understand their statutory responsibilities.
Organisational structure
The day to day running of the church is undertaken by the Elders who are the only members of the company.
Philip Morrice F.C.C.A. is independent examiner of the charity as the designated Partner of Alexander Sloan LLP, Accountants & Business Advisers responsible for this engagement. The Trustees recommend that he remain in office as independent examiner until further notice.
The Directors' report was approved by the Board of Directors.
I report on the financial statements of the charity for the year ended 31 July 2024, which are set out on pages 5 to 16.
The charity’s Directors, who also act as Trustees for the charitable activities of New Craig Community Church, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The Directors consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Donations
Income from charitable activities
Cost of charitable activities
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Donations
Income from charitable activities
Cost of charitable activities
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
New Craig Community Church is a private company limited by guarantee incorporated in Scotland. The registered office is 1 Bowmore Gardens, Uddingston, G71 6DX.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 Directors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Directors consider there are no material uncertainties about the charity's ability to continue as a going concern. Thus the Directors 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 Directors in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the Directors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
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.
Donations
Donations are recognised when the charity has evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Entitlement usually arises immediately upon receipt, however, in the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
Income from Charitable Activities
Income from charitable activities includes income earned both from the supply of goods or services under contractual arrangements and from performance-related grants which have conditions that specify the provision of particular goods or services to be provided by the charity. Income from charitable activities is recognised as earned (as the related goods or services are provided).
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured or estimated reliably.
Liabilities are measured on recognition at historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date. The exception is that certain financial instruments must be adjusted to their present value; these include financial liabilities where settlement is deferred for more than 12 months after the reporting date.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
Expenditure on Charitable Activities
Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. The costs of charitable activities presented in the Statement of Financial Activities includes the costs of both direct service provision and the payments of grant awards if applicable.
Governance costs
Governance costs (which are included as a component of support costs in accordance with SORP) comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include those related to constitutional and statutory requirements, external scrutiny (audit or independent examination), strategic management, and other legal and professional fees.
Grant expenditure
Grants or gifts payable are made to third parties in the furtherance of the charitable objects. The award of a grant is recognised as a liability only when the criteria for a constructive obligation are met, payment is probable, it can be measured reliably and there are no conditions attaching to its payment that limit recognition.
Irrecoverable VAT
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
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).
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.
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
In the application of the charity’s accounting policies, the Directors 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.
Donations
Income from charitable activities
Church Weekend away
Cost of charitable activities
Premises costs
Running costs
Governance costs (Note 9)
None of the Directors (or any persons connected with them) received any remuneration or benefits from the charity during the year. See also Note 17.
The average monthly number of employees during the year was:
These are the designated funds which have been set aside out of unrestricted funds by the Trustees for specific purposes:
Purposes of Designated Funds
Assets Fund
The Assets Fund represents the net book value of the church's fixed assets which would not be readily convertible into cash.
During the year ended 31 July 2023 a transfer of £419 was made from the General Fund (Unrestricted) to the Designated Fund, representing fixed assets purchased during the year.
These are the unrestricted funds to the charity
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.
Purposes of Restricted Funds
Building Fund
Represents offerings and gifts received to help finance a church property in due course. During the year ended 31 July 2024, the Directors transferred £10,000 (2023 - £10,000) from the General Fund (Unrestricted) to the Building Fund (Restricted).
During the year, Garry Blair, a Director and an Elder of the church, received gifts totalling £2,640 (2023 - £2,740) included within running costs for Bible teaching services to the church in accordance with Article 6 of the company's Articles of Association. Also during the year gifts totalling £8,782 (2023 - £4,000) were made in line with the charity's objectives.