REGISTERED COMPANY NUMBER: 04046637 (England and Wales)

REGISTERED CHARITY NUMBER: 1083852

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 JULY 2018

FOR

FARNBOROUGH CHRISTIAN OUTREACH

FARNBOROUGH CHRISTIAN OUTREACH

CONTENTS OF THE FINANCIAL STATEMENTS

for the year ended 31 July 2018

Page

Report of the Trustees

1 to 3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6 to 7

Notes to the Financial Statements

8 to 14

FARNBOROUGH CHRISTIAN OUTREACH

REPORT OF THE TRUSTEES

for the year ended 31 July 2018

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with

the financial statements of the charity for the year ended 31 July 2018. The trustees have adopted the provisions of

Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their

accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)

(effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

The Charity's objects are to promote the advancement of Evangelical Christian Causes on an ecumenical basis.

The principal activity of the charity during the year was the running of the Christian Resources Centre known as 'The

Triangle', In addition the Charity sponsored and facilitated a number of local events.

PUBLIC BENEFIT

The Charity is of public benefit in the following ways:

- Provision of literature and other supplies and resources for local Churches and schools;

- Supplier of fairly traded goods to the local community, including the local Borough Council;

- Employment of special needs people;

- Employment of voluntary staff and an active participant in work experience scheme.

ACHIEVEMENT AND PERFORMANCE

Bookshop sales for the year increased slightly to £119,082 (compared to £116,235 in 2017). The increase in sales was

due to good out of shop sales including orders for Schools, Churches, Church events, conferences and bookstalls. The

out of shop sales have become increasingly essential due to poor footfall in the shop and general trading conditions on

the high street for retailers. With customers purchasing from online shops rather than in conventional retail outlets we

are having to be more proactive and go to the customer rather than wait for them to come to us. An important part of

this is the schools liaison officer where we have continued to be of service to schools in proving Christian resources for

School libraries and teachers. The Speaking Volumes initiative has again been particularly useful for local schools,

enabling funding through The Triangle for Christian library books.

Voluntary income for the period reduced to £50,086 (compared to £61,066 in 2017).

Total resources expended were £180,104 in 2018 meaning there was a net outflow for the period of £10,936.

One of our major expenses is the rent and service charge we pay under the current lease which expires in September

2019. The current lease and rent were set 10 years ago when trading conditions were significantly better and the level of

rent reflected that. However during the past 10 years general trading conditions have got worse for retailers and the

Kingsmead Centre in particular has been negatively impacted with most of the previous retailers leaving or closing

down, resulting in many empty units and much lower footfall which has a direct impact on our sales turnover. The

Trustees have recently put forward a proposal for a new lease to the Landlords with a reduced but fair value, which if

agreed, will improve our trading position and mean that we can afford to stay in the current unit.

The Charity's subsidiary, The Triangle Café Limited had a turnover for the period of £66,475 (compared to £84,772 in

2017). The fall in turnover again resulted in the subsidiary being unable to pay any management charge to the Charity.

The net result was a loss of £12,435 (compared to a loss of £6,089 in 2017). Clearly it has been another disappointing

period for the subsidiary and reflects the poor trading conditions in Kingsmead. The Cafe turnover has now fallen below

the VAT threshold and so we are deregistering for VAT.

FINANCIAL REVIEW

Principal funding sources

The main sources of income, derive from the sales of Christian literature and media, donations from members and

supporters and sales from the subsidiary, the Triangle Café Limited.

Investment policy

Under the memorandum and articles of association, the charity has the power to make any investment which the trustees

see fit, after obtaining advice from a financial expert and having regard to the suitability of investments and the need for

diversification.

Reserves policy

The General Fund represents the Unrestricted funds arising from the past operating results. It also represents the free

reserves of the charity, as all fixed assets are included in the fixed asset fund, which is a designated fund. The general

fund balance was £49,952 at 31st July 2018 and the aim of the trustees is to build this up to a balance which represents 3

months of operating expenditure.

FUTURE PLANS

The Trustees and management team continue to be focused on closing the gap between income and outgoings so that the

Charity's mission may continue into the future. Specifically our plans include:

- Continued improvement in operational efficiencies where possible - in particular a rent and service charge reduction;

- Reduced overheads through changing the telephone system to a VOIP system;

- Growing new and renewed links with Schools and RE teachers and promotion of Speaking Volumes initiative;

- Continue to improve links with Churches through regular contact with church leaders and a network of representatives;

- Internet sales.

- The Trustees are working on reducing the amount of trade credit accrued with suppliers with the aim of paying all

suppliers within their normal terms.

The Trustees are committed to ensuring the ongoing viability of the Charity so that it continues to fulfil its objectives in

the future

STRUCTURE, GOVERNANCE AND MANAGEMENT

Farnborough Christian Outreach (a company limited by guarantee) was incorporated on 3rd August 2000, and was

registered with the Charity Commission for England and Wales on 28th November 2000. On 31st January 2001, all of

the assets and liabilities of the Farnborough Christian Outreach Trust (an unincorporated Charity, registered under the

charity number 285306) were gifted to Farnborough Christian Outreach.

On 15th December 2000, The Triangle Café Limited (company number 4126321) was incorporated, with the sole issued

share being held by Farnborough Christian Outreach. This company carries out the activities of the café situated in the

new premises of Farnborough Christian Outreach, to which the charity moved in November 2001.

The company was established under its Memorandum of Association which established the objects and powers of the

charitable company and is governed by its Articles of Association. In the event of the company being wound up,

members are required to contribute an amount not exceeding £10.

Appointment and induction of trustees

Trustees are appointed by the members and at each Annual General Meeting, one third of Board Members will retire

from office. On retirement, trustees are eligible for re-election. The Articles of Association provides for a minimum of

three trustees and no maximum. The trustees are also responsible for the appointment of new members.

New trustees undergo an induction to brief them on their legal obligations under charity and company law, the content of

the Memorandum and Articles of Association, the decision making processes and the recent performance of the charity.

They meet key employees and the other trustees.

Organisational policy

The trustees meet every month. The general manager is appointed to manage the day to day operations of the charity. To

facilitate effective operations, the general manager has delegated authority, within the terms of delegation approved by

the trustees, for operational matters including finance and employment.

Risk assessment policy

The trustees have worked with staff 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.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04046637 (England and Wales)

Registered Charity number

1083852

Registered office

64 Kingsmead

FARNBOROUGH

Hampshire

GU14 7SL

Trustees

K Fontana

C M Mason

J R D Edwards

D R Palmer

Mrs S M Smith

Independent examiner

HPCA Limited

Chartered Accountants

Station House

Connaught Road

Brookwood

Woking

Surrey

GU24 0ER

Approved by order of the board of trustees on 26 April 2019 and signed on its behalf by:

C M Mason - Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

FARNBOROUGH CHRISTIAN OUTREACH

Independent examiner's report to the trustees of Farnborough Christian Outreach ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2018.

Responsibilities and basis of report

As the charity's trustees of the Company (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 Company 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

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:

1.

accounting records were not kept in respect of the Company 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

Lance Redman FCCA ACA

For and on behalf of

HPCA Limited

Chartered Accountants

Station House

Connaught Road

Brookwood

Woking

Surrey

GU24 0ER

26 April 2019

FARNBOROUGH CHRISTIAN OUTREACH

STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 July 2018

2018

2017

Unrestricted funds

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

50,086

-

50,086

61,066

Charitable activities

Bookshop

119,082

-

119,082

116,235

Total

169,168

-

169,168

177,301

EXPENDITURE ON

Charitable activities

Bookshop

180,104

-

180,104

174,860

NET INCOME/(EXPENDITURE)

(10,936

)

-

(10,936

)

2,441

RECONCILIATION OF FUNDS

Total funds brought forward

74,757

177

74,934

72,493

TOTAL FUNDS CARRIED FORWARD

63,821

177

63,998

74,934

FARNBOROUGH CHRISTIAN OUTREACH

BALANCE SHEET

At 31 July 2018

2018

2017

Unrestricted funds

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

7

13,868

-

13,868

19,373

Investments

8

1

-

1

1

13,869

-

13,869

19,374

CURRENT ASSETS

Stocks

9

79,083

-

79,083

72,241

Debtors

10

14,302

-

14,302

16,595

Cash at bank and in hand

435

177

612

1,652

93,820

177

93,997

90,488

CREDITORS

Amounts falling due within one year

11

(43,868

)

-

(43,868

)

(34,928

)

NET CURRENT ASSETS

49,952

177

50,129

55,560

TOTAL ASSETS LESS CURRENT LIABILITIES

63,821

177

63,998

74,934

NET ASSETS

63,821

177

63,998

74,934

FUNDS

14

Unrestricted funds

63,821

74,757

Restricted funds

177

177

TOTAL FUNDS

63,998

74,934

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 July 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended

31 July 2018 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)

ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 charitable company.

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies

Act 2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 26 April 2019 and were signed on its behalf by:

C M Mason -Trustee

FARNBOROUGH CHRISTIAN OUTREACH

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 July 2018

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been

prepared in accordance with the Charities SORP (FRS 102) '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 2015)',

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost

convention with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it

is probable that the income will be received and the amount can be measured reliably.

Expenditure

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 a transfer of economic benefits will be required in settlement and

the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has

been classified under headings that aggregate all cost related to the category. Where costs cannot be directly

attributed to particular headings they have been allocated to activities on a basis consistent with the use of

resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but

not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Improvements to property

- Straight line over 20 years

Plant and machinery

- Straight line over 5 years

Fixtures and fittings

- Straight line over 6 years

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Funds

General unrestricted funds represent the funds of the charity that are not subject to any restrictions regarding

their use and are available for application on the general purposes of the charity. Funds designated for a

particular purpose by the trustees are also unrestricted.

Restricted funds are those subject to specific trusts, which may be declared by the donor or with their authority.

The restricted funds of the charity are restricted income funds which are expendable at the discretion of the

trustees in furtherance of some particular aspects of the activities of the charity.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2.	SUPPORT COSTS

Other

Governance costs

Totals

£

£

£

Bookshop

1,775

6,858

8,633

Activity

Basis of allocation

Finance

On the basis of income attributable to each activity.

Support costs, included in the above, are as follows:

2018

2017

Bookshop

Total activities

£

£

Sundries

1,775

1,725

Independent examiner's fees

2,658

2,292

Bookkeeper's fees

4,200

4,200

8,633

8,217

3.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2018

2017

£

£

Independent examiner's fees

2,658

2,292

Depreciation - owned assets

5,505

6,669

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 July 2018 nor for the year ended

31 July 2017.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st July 2018 nor for the year ended 31st July 2017.

5.	STAFF COSTS

The average monthly number of employees during the year was as follows:

2018

2017

2

2

No employees received emoluments in excess of £60,000.

6.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted funds

Restricted funds

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

61,066

-

61,066

Charitable activities

Bookshop

116,235

-

116,235

Total

177,301

-

177,301

EXPENDITURE ON

Charitable activities

Bookshop

174,860

-

174,860

Total

174,860

-

174,860

NET INCOME/(EXPENDITURE)

2,441

-

2,441

RECONCILIATION OF FUNDS

Total funds brought forward

72,316

177

72,493

TOTAL FUNDS CARRIED FORWARD

74,757

177

74,934

7.	TANGIBLE FIXED ASSETS

Improvements to property

Plant and machinery

Fixtures and fittings

Totals

£

£

£

£

COST

At 1 August 2017 and 31 July 2018

85,497

28,334

25,566

139,397

DEPRECIATION

At 1 August 2017

68,504

25,954

25,566

120,024

Charge for year

4,290

1,215

-

5,505

At 31 July 2018

72,794

27,169

25,566

125,529

NET BOOK VALUE

At 31 July 2018

12,703

1,165

-

13,868

At 31 July 2017

16,993

2,380

-

19,373

8.	FIXED ASSET INVESTMENTS

Shares in group undertakings

£

MARKET VALUE

At 1 August 2017 and 31 July 2018

1

NET BOOK VALUE

At 31 July 2018

1

At 31 July 2017

1

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

The Triangle Café Limited

Nature of business: Coffee shop

%

Class of share:

holding

Ordinary

100

31.7.18

31.7.17

£

£

Aggregate capital and reserves

(24,009

)

(11,574

)

(Loss) for the year

(12,435

)

(6,089

)

9.

STOCKS

2018

2017

£

£

Stocks

79,083

72,241

10.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Amounts owed by group undertakings

-

3,650

Other debtors

-

257

VAT

3,461

2,784

Prepayments and accrued income

10,841

9,904

14,302

16,595

11.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts (see note 12)

1,183

-

Other loans (see note 12)

3,500

3,500

Trade creditors

26,696

25,510

Social security and other taxes

175

175

Other creditors

7,188

1,322

Accruals and deferred income

5,126

4,421

43,868

34,928

12.

LOANS

An analysis of the maturity of loans is given below:

2018

2017

£

£

Amounts falling due within one year on demand:

Bank overdraft

1,183

-

Other loans

3,500

3,500

4,683

3,500

13.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2018

2017

£

£

Within one year

28,000

28,000

Between one and five years

4,667

32,667

32,667

60,667

14.	MOVEMENT IN FUNDS

At 1.8.17

Net movement in funds

At 31.7.18

£

£

£

Unrestricted funds

General fund

55,383

(5,431

)

49,952

Fixed Asset Fund

19,374

(5,505

)

13,869

74,757

(10,936

)

63,821

Restricted funds

Buy a bulb

177

-

177

TOTAL FUNDS

74,934

(10,936

)

63,998

Net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

169,168

(174,599

)

(5,431

)

Fixed Asset Fund

-

(5,505

)

(5,505

)

169,168

(180,104

)

(10,936

)

TOTAL FUNDS

169,168

(180,104

)

(10,936

)

Comparatives for movement in funds

At 1.8.16

Net movement in funds

At 31.7.17

£

£

£

Unrestricted Funds

General fund

46,274

9,109

55,383

Fixed Asset Fund

26,042

(6,668

)

19,374

72,316

2,441

74,757

Restricted Funds

Buy a bulb

177

-

177

TOTAL FUNDS

72,493

2,441

74,934

Comparative net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

177,301

(168,192

)

9,109

Fixed Asset Fund

-

(6,668

)

(6,668

)

177,301

(174,860

)

2,441

TOTAL FUNDS

177,301

(174,860

)

2,441

Unrestricted funds

The fixed asset fund is a designated fund and represents the net book value of fixed assets of the charity, for the

purpose of freeing reserves that are not available for expenditure. Transfers relate to assets capitalised during the

year, and outgoing resources represent depreciation charged during the year.

Restricted Fund

The Buy a Bulb fund is as a result of an appeal to pay for the new LED lights installed in the bookshop to

enhance the displays.