OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-08-31-accounts

CHROMA CHURCH BIRMINGHAM

Financial Statements

for the year ended 31 August 2021

Company Number

3059994

Chroma Church Birmingham

Financial Statements

Year Ended 31 August 2021

Pages
Contents
Information 1
Directors/Trustees Annual Report 2-5
Independent Examiners Report 6
Statement of financial activities 7
Balance Sheet 8
Notes to the financial statements 9-15

Chroma Church Birmingham

Charitable Company Information

Directors

D T McNeil M Hoye G Barker A Wolf N Spencer B Cooper Resigned Oct 2021

Company Secretary

D T McNeil

Charity Number 1047411

Company Number 3059994

Registered Office

76 Church Road Aston Birmingham B6 5TY

Independent Examiner

Gary Peter Brookes FCA BSc 130 Wombourne Park Wolverhampton South Staffs WV5 0LY

Bankers

HSBC Sutton Coldfield

1

Chroma Church Birmingham

Directors Report For the Year Ended 31 August 2021

Structure, Governance and Management

Chroma Church Birmingham’s primary Governance document is its Memorandum and Articles of Association incorporated on 23[rd] May 1995 as amended by special resolution (s) dated 12[th] October 2015 as amended by certificate of incorporation on change of name dated 9[th] December 2015 and further updated change of name updated 30[th] April 2021. The Charity is constituted as a Charitable Company Limited by Guarantee.

Trustee recruitment, appointment and training

Trustees are approved and appointed by the Senior Leadership Team, who are the members of the Charity. Every effort is made to ensure that any new Trustee appointment will contribute significantly to the skills base of the team. Areas of experience and competence are actively examined as well as the need for a trustee to be local and familiar with the day-to-day activities of the Charity.

Having identified a potential candidate one or other of the existing Trustees will be nominated to meet with and to appraise the potential Trustee as to the role and responsibilities of serving the charity in the capacity of a Trustee. Due to the size and nature of the Charity, we have adopted an informal training and induction process for new Trustees. This is achieved through interaction with the existing Trustees and through the provision of current documentation on the role and responsibilities of Trustees provided by the Charity Commission.

Organisational Structure

The Charity is organised so that the Trustees, who are also the Management Committee, meet regularly to manage its affairs. There is one full-time Senior Pastor and a part-time Senior Pastor who together manage the day-to-day administration of the Charity assisted by a Staff Team which includes a part-time Pastoral Assistant (with responsibility for children & youth), a part-time Operations Facilitator and a subcontracted Media & Production person. The Senior Pastors oversee the Staff Team plus additional voluntary team members.

Relationship with connected organisations

Chroma Church Birmingham is a Christian Church. The Senior Pastor meets regularly with other local church leaders at gatherings for connection & encouragement as well as informal connections with the relational network of Church and Ministry leaders connected to Chroma Church.

The Church is focused on providing financial support to several partner organisations that represent a range of charities covering objectives including discipleship, outreach, training & compassion ministry in local, national, and international contexts. Support for ‘Reachout Network Ministries’ based in Edgbaston, assists valuable work with the homeless, vulnerable and disadvantaged in Birmingham. The centre offers a place for relationship, discovery of faith and provision for practical needs such as food and clothing and facilities for personal care. Church giving supports the work of the centre as well as funding towards key worker & project director, Paul Atkin.

Nationally the Church supports Jess Regnart from ‘Freedom in Christ UK’ to assist her ministry reaching those in their 18-30’s with equipping, training and discipleship. Internationally the Church supports ‘Spurgeons Academy’ based in the slum suburb of Kibera, in Nairobi, Kenya. Child sponsorship provides educational assistance as well as family support which addresses health & social needs. The Church provides support for project Director Kenyanito Dudi to assist his role for this educational which is administrated through partner organisation ‘Global Care’.

2

Chroma Church Birmingham Directors Report For the Year Ended 31 August 2021

The Church continues to support the work of ‘Open Doors’, a Charity which seeks to advocate for the persecuted church. Although Open Doors is primarily a Christian charity it assists people of all faiths and none who experience the hardship suffered through the oppression of persecution. Locally, support for Kids UK continued until the end of the financial year at which point it was agreed by the Trustees that support would cease while the Charity looks to support new partner organisations.

Risk management

The Directors purpose to be aware of any major strategic, operational, and financial risks to the Charity. In the year ahead, all the major areas will be reviewed and kept up to date. The Church has a revised child protection policy and every adult who is involved in working with the children and young people in the Church is screened through independent body, ‘ThirtyOne:eight’ and undertakes to follow the guidelines provided for churches and utilise the resources offered. The Senior Pastors hold current enhanced DBS certificates as do other members of the Leadership Group and Trustees.

Public liability is covered by an insurance policy with the Charity specialist insurers Ansvar Insurance Company Limited administrated through Barries of Durham. Financial security is managed by a regular review of the Charity’s financial status by the Senior Pastor in partnership with the Chair of Trustees which is reported to the full Trustee Team and members of the Leadership Team at scheduled meetings.

Objectives and Activities

The Charity’s objects and its principal activity is that of the advancement of the Christian Faith. The principle charitable purposes of the Company in accordance with the objects of the Memorandum and Articles of Association are the advancement of the Christian faith; the furtherance of religious education; the relief of the poor and needy; the relief of the sick and elderly and for the benefit of other charitable bodies and institutions as the Directors in their absolute discretion see fit. When planning our activities for the year we have considered the Commission's guidance on public benefit and guidance for charities relating to the advancement of religion. During this period, the objects of the Charity were put into effect by the Senior Pastors and members of the Leadership Group in conjunction with a growing Staff Team and the wider grouping of Ministry Team leaders.

Achievements and Performance

This year has seen the church experience the continued challenges due to the Covid-19 global pandemic with most activities having to be transferred to online platforms. Significant resources of time, energy and money continue to be applied to this new reality. The quality and engagement with these online resources has increased, evidenced by the growth in YouTube channel subscribers, online ‘views’ and engagement as well as first time visitors to the limited ‘in-person’ services offered. Local Food Bank initiatives focused on families and individuals in Erdington and Aston continued to receive good support from Church members and residents alike local to the Living Well Centre.

The church has sought to follow the Government advice and guidance for places of worship and community centres with Covid-19 protocols in place to provide a safe environment for Staff, volunteers, and visitors alike. The church has been able to maintain strong community with online and appropriate in person events. A significant development at the end of the year was the discovery of significantly improved meeting space and the successful purchase of new premises closer to the City Centre in Aston which offer significant potential with access to prime transport links by rail, car & bus as well as the advantage of secure, gated car parking.

3

Chroma Church Birmingham Directors Report For the Year Ended 31 August 2021

Church Leadership development & training events

The Church provided a sabbatical for the Senior Leaders during the period from October to December 2020 to enable a time of investment, reflection, and development. The Sozo ministry team continued to develop during the year, putting into effect changes that enabled the ministry to develop a positive online strategy. The Senior Leaders participated in the National VCUK online leaders gathering in January 2021 as well as the VCUK Midlands Area events until the formal disassociation from Vineyard Churches UK at the end of March. The Senior Leaders participated in a variety of new leadership gatherings within the emerging relational network of leaders connected to Chroma Church, including a valuable retreat held in Brighton in July. The Staff Team were provided with ongoing training and development, including sessions exploring ‘StrengthsFinder’ team building and coaching.

Children and Youth ministry

A team of committed volunteers continued with the development of ministries for the children and young people of the Church led by Matt Harris, Pastoral Assistant with responsibilities for children & youth. The continued impact of Covid-19 presented significant challenges for finding ways to keep the children and young people connected but the Team worked creatively to co-ordinate online content that contributed significantly to the online worship services as well as the development of new Children’s services online from March onwards which featured before the main online services. Children continued to be resourced with regular ‘at home’ activity packs and communication.

Social, gathering and ministry events

Regular prayer gatherings developed during the year including monthly ‘Glory encounter’ evenings both online and in-person as Covid advice allowed. From June 2021 new rhythms of daily prayer were established at 6am and 6pm each week from Monday to Saturday to deepen spiritual disciplines of prayer and listening to God. Following a Commissioning service on 4th July the Church recommenced weekly ‘in-person’ worship services from the last Sunday in July onwards as well as providing a private livestream link to church members who were unable to attend in person. This made a significant difference to assist the connection of vulnerable members who were uncertain about the relative safety of ‘in-person’ gatherings.

There have been no significant social events during the year due to the Covid restrictions around nonessential gatherings with Sunday services going ahead because of the essential nature of providing space for worship and nurture of faith. The Leadership & Staff Team sought to encourage the Church by providing a significant gift package mailout to everyone connected to the Church. This was warmly received by approaching 200 individuals which included people newly connected to the Church, some directly as a result of the online services and events.

4

Chroma Church Birmingham

Directors Report For the Year Ended 31 August 2021

Financial review

The principal funding source is voluntary donations made by members and visitors to the church. The income for the year was £936,527 and expenditure was £171,068 resulting in an overall surplus of £765,459 .

Reserves policy

The Company holds reserves in interest bearing accounts with quick access time frames. The Trustees aim to hold reserve funds from a level of around three months to a level approaching six months of operating expenses in these accounts. This equates to a fund of between £40k to £80k. Current cash reserves are £52,369 which is a positive increase over the previous year. Plans for the future

The Leadership team plan to explore ways to ensure that the Church can continue to develop at the new premises in Aston which includes investment in the technology to enable the livestreaming of Sunday services and the development of a Media and Production role to enable this. With the relocation of the Church to larger premises in a more central location the development of a fuller staff team is considered a significant priority. This will include adding new Team roles to include co-ordinators for Worship & Compassion ministry, Prayer & Evangelism plus Students and Young Adults. To enable the strategic development of the premises at 76 Church Road the Church plans to engage an architect and project manager and to look to sell the former Church premises at 480 Chester Road to facilitate these redevelopments and focus to build for the future with an expanded Staff Team. A training event with Mission24 led by Jonathan Conrathe is planned for November and will include equipping around evangelism and outreach to the local area and beyond. As part of the development to establish a Transformation Centre as part of the new premises Tania McNeil will be undertaking specific training in Spiritual Direction with organisation ‘Sustainable Faith’ as well as accessing training with the ministry ‘Restoring the Foundations’.

Statements of Directors responsibilities

The directors are required under Company Law to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the company and its results for that period. In preparing those financial statements the trustees are required to:

The directors are responsible for the keeping of proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for the safeguarding of the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approval

This report was approved by the directors on 14[th] March 2022 and signed on their behalf

David McNeil

............................................................................ Director

5

Chroma Church Birmingham Independent Examiners Report For the Year Ended 31st August 2021

I report on the accounts for the year ended 31 August 2021 set out on the following pages

Responsibilities and basis of report

As the charity trustees of the company (who are treated as directors for the purposes of the 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 under Part 16 of the 2006 Act and are eligible for independent examination , I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 2011. 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 that in any material respect :

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.

Name Gary Peter Brookes Relevant Professional Qualifications FCA FCIE BSc Address 130 Wombourne Park Wolverhampton South Staffs WV5 0LY

Date :17th March 2022

6

Chroma Church Birmingham Statement of Financial Activities For the Year Ended 31st August 2021

Restricted
Funds
2021
£
Income
Charitable Activities
Voluntary Income
2
736,100
Bank Interest
-
Total Income
736,100
Expenditure
Charitable Activities
3
11,846
Total Expenditure
5
11,846
Net income
724,254
Reconciliation of funds
Total funds brought forward
201,377
Total funds carried forward
925,631
Notes		 Unrestricted
Funds
2021
£
200,422
5
200,427
159,222
159,222
41,205
124,809
166,014		 Total
Funds
2021
£
936,522
5
936,527
171,068
171,068
765,459
326,186
1,091,645		 Total
Funds
**
2020
£**
144,053
38
144,091
143,257
143,257
834
325,352
326,186

There were no recognised gains or losses for 2021 or 2020 other than those included in the Statement of Financial Activities

This Statement of Financial Activities incorporates the same information required for an Income and Expenditure account under the Companies Acts

** Full comparatives for 2020 are shown in note 15

7

Chroma Church Birmingham Balance Sheet

As at 31 August 2021

Chroma Church Birmingham
Balance Sheet
As at 31 August 2021
Notes 2021 2020
£ £ £ £
Fixed Assets
Tangible Assets for use by the church 7 1,091,076 345,001
Current Assets
Debtors 8 2,126 1,606
Bank & Cash 9 57,505 37,968
Total 59,631 39,574
Creditors :amounts falling due 10 7,262 4,923
within one year
Net Current Assets 52,369 34,651
Total assets less current liabilities 1,143,445 379,652
Creditors :amounts falling due
after one year 11 51,800 53,466
Net Assets 1,091,645 326,186
Funds
Unrestricted Funds 166,014 124,809
Restricted Funds 12 925,631 201,377
Total 1,091,645 326,186

The directors have taken advantage of the Companies Act 2006 in not having these accounts audited under Section 477 (1). No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476

The Directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with s386 and s387 of the Companies Act 2006 and for preparing accounts which give a true and fair view of the state of affairs of the company as at 31 August 2021 and of its surplus for the year then ended in accordance with the requirements of s396 and which comply with the requirements of the Act relating to the accounts so far as applicable to the company.

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.

Signed and approved on the behalf of the Board on 14th March 2022

….................................................................................

Name …..Godfrey Barker

8

Chroma Church Birmingham Notes to the accounts

For the Year Ended 31 August 2021

Basis of Accounts Preparation

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2015) and the Charities Act 2011. The Financial statements are prepared on a going concern basis under the historic cost convention modified to include certain items at fair value when applicable. The financial statements are prepared in sterling which is the functional currency of the charity. Significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Funds

Unrestricted funds are income funds which are to be spent on the charity's general purpose.

Designated funds are unrestricted funds that have been assigned to specific purposes Restricted funds comprise of two elements :-

a) income from trusts or endowments which may be expended only on those restricted objects provided in the terms of the trust or bequest

b) donations or grants received for a specific object or invited by the charity for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of each year must be carried forward as a balance on that fund. The church does not usually invest separately for each fund. Where there is no separate investment, interest is apportioned to individual funds on an average balance basis.

Income Recognition

Planned giving, collections and donations are recognised when received. Tax refunds are recognised when the incoming resource to which they relate is received. Grants and Legacies are accounted for when the church is legally entitled to the amounts due. All other income is recognised when it is receivable. All incoming resources are accounted for gross.

Expenditure Recognition

Grants and donations are accounted for when paid over, or when awarded, if that award creates a binding or constructive obligation on the charity. Amounts received specifically for mission are dealt with as restricted funds. All other expenditure is generally recognised when it is incurred and is accounted for gross. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Liability recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

9

Chroma Church Birmingham Notes to the accounts For the Year Ended 31 August 2021

Governance costs

Include costs of the preparation and examination of statutory accounts, the costs of trustee meetings and cost of any legal advice to trustees on governance or constitutional matters.

Tangible fixed assets for the use by the church and depreciation

Tangible fixed assets for use by the church are stated at cost less depreciation

Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets

less estimated residual value, over their expected useful lives.

Leasehold Property 2% per annum straight line Freehold Property 2% per annum straight line Equipment 25% per annum straight line

2. Voluntary Income

General Offerings
Gift Aid tax reclaims
Gifts
West Midlands
Events and activity income
Capital Grant
Job Retention Scheme
Other income		 2021
Restricted
£
-
-
1,100
-
-
735,000
-
-
736,100		 2021
Unrestricted
£
137,430
28,242
26,554
-
500
-
7,696
-
200,422		 2021
2020
Total
Total
£
£
137,430
113,915
28,242
22,879
27,654
1,349
-
779
500
3,802
735,000
-
7,696
650
-
679
936,522
144,053

10

Chroma Church Birmingham Notes to the accounts For the Year Ended 31 August 2021

3. Charitable Activities

3a.Direct Church Activities
Staff Costs
Salaries & NIC
Direct Church Costs
Events and outreach
Travel expenses
Youth and children
Catering and housekeeping
Training and conferences
Church utilities
Ground rent Church Road
Maintenance and small equipment
Online service costs
Resources
Running Costs
Communication costs
Insurance
Licences and subscriptions
Depreciation
General office
Bank charges
Computer equipment & software
Mortgage interest
Governance
3b. Related Church Activities
Pastoral & fellowship support
Mission and giving
Vineyard Churches (UK).
West Midlands Churches
Total		 2021
2020
£
£
91,769
89,253
111
4,284
70
1,406
1,648
108
1,545
1,746
5,721
3,069
1,804
1,562
7,895
-
6,655
2,118
13,267
-
2,148
906
2,470
2,868
1,595
1,515
782
1,352
10,746
10,745
884
1,340
62
32
4,217
849
3,054
3,080
1,498
1,488
157,941
127,721
432
655
8,838
7,364
3,857
6,738
-
779
13,127
15,536
171,068
143,257

11

Chroma Church Birmingham Notes to the accounts

For the Year Ended 31 August 2021

2021 2020
£ £
4. Governance Costs
Independent Examiner and accountancy costs 1,475 1,475
Company House Fees 23 13
1,498 1,488
5. Net movement in funds for the year
The net movement in funds for the period is stated after charging:
Depreciation of tangible assets 10,746 10,745
Independent Examiner and accountancy costs 1,475 1,475
6. Staff Costs
Wages & Salaries 82,185 78,706
Social Security Costs 3,328 4,561
Pension costs 6,256 5,986
91,769 89,253
Remuneration was only paid to one member of the directors in the year
The average weekly number of staff employed by the church during the period was as follows:
Pastoral team 4 3

12

Chroma Church Birmingham Notes to the accounts For the Year Ended 31 August 2021

7. Tangible fixed assets for use by the Charity

Cost as at 1 September 2020
Additions
Cost as at 31 August 2021
Depreciation as at 1 September 2020
Charge for the year
Depreciation as at 31 August 2021
Net book Value as at 31 August 2021
Net book Value as at 31 August 2020		 Freehold
Property
£
412,533
-
412,533
70,691
8,251
78,942
333,591
341,842		 Leasehold
Property
Equipment
£
£
-
24,537
756,821
-
756,821
24,537
-
21,378
-
2,495
-
23,873
756,821
664
-
3,159
2021		 TOTAL
£
437,070
756,821
1,193,891
92,069
10,746
102,815
1,091,076
345,001		 2020
TOTAL
£
437,070
437,070
68,622
12,702
81,324
355,746

The freehold property is the Living Well Centre purchased as a centre for some of the church activities The property is valued for insurance purposes at £392,842

The leasehold property is 76 Church Road, Aston, Birmingham purchased in August 2021. The property is valued for insurance purposes at £750,000

8. Debtors
Gift Aid receivable
Prepayments
9. Bank and Cash
Current Accounts
Deposit Accounts
10.Creditors :amounts falling due in one year
Other creditors
Social security and other taxes
Funds received in advance
Accruals
Mortgage
11.Creditors :amounts falling due after one year
Mortgage		 2021
£
2,026
100
2,126
9,272
48,233
57,505
2,703
1,243
-
1,676
1,640
7,262
51,800		 2020
£
1,562
44
1,606
7,063
30,905
37,968
643
1,247
33
1,500
1,500
4,923
53,466

The secured mortgage facility is with Kingdom Bank for the acquisition of the Living Well Centre Currently the interest rate is a fixed rate of 5.50% with interest of £3,054 being charged during the reported period

13

Chroma Church Birmingham Notes to the accounts For the Year Ended 31 August 2021

12. Fund Movements

Restricted Funds
Capital Fund
Building Fund
Buiding Fund Church Road
Mobile presentation equipment
Revenue Funds
Trustees holding
Small Restricted funds
General Funds
Unrestricted funds
Total Funds		 Fund
Balances
Brought
Forward
£
198,179
-
3,158
201,337
40
-
40
201,377
124,809
326,186		 Incoming
Resources
£
-
735,000
-
735,000
-
1,100
1,100
736,100
200,427
936,527		 Outgoing
Resources
£
8,251
-
2,495
10,746
-
1,100
1,100
11,846
159,222
171,068		 Fund
Balances
Carried
Forward
£
189,928
735,000
663
925,591
40
-
40
925,631
166,014
1,091,645

The Building Fund is made up of amounts given towards obtaining the Living Well Centre less depreciation costs and items specifically for the Living Well Centre

13.Analysis of Net Assets by Fund

Fixed Assets
Net Current Assets
Creditors over more than one year
Net Assets		 Unrestricted
Funds
£
165,485
52,329
(51,800)
166,014		 Restricted
Total
Funds
Funds
£
£
925,591
1,091,076
40
52,369
-
(51,800)
925,631
1,091,645

14

Chroma Church Birmingham Notes to the accounts For the Year Ended 31 August 2021

14. Related Party transactions

As agreed in the memorandum of association section 4(a) Rev D T McNeil is paid for his services in his capacity as senior pastor.

Salary Pension
Rev D T McNeil £41,054 £3,204
Mrs Tania McNeil £28,303 £2,209
Mr Daniel McNeil received £13,050 for services supplied
15. SOFA Comparatives
Restricted
Funds
£
Income
Charitable Activities
Voluntary Income
2
1,969
Bank Interest
-
Total Income
1,969
Expenditure
Charitable activities
3
12,716
Total Expenditure
5
12,716
Net income
(10,747)
Reconciliation of funds
Total funds brought forward
212,124
Total funds carried forward
201,377		 Unrestricted
Total
Funds
Funds
£
£
142,084
144,053
38
38
2020
142,122
144,091
130,541
143,257
130,541
143,257
11,581
834
113,228
325,352
124,809
326,186

15