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2020-12-31-accounts

Annual Report and Financial Statements for the Year Ended 31 December 2020

The Potter's House Christian Centre

Charity registration number: 1055728

Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF

THE POTTER'S HOUSE CHRISTIAN CENTRE

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Cash Flow Statement 8
Notes to the Financial Statements 9 to 18

THE POTTER'S HOUSE CHRISTIAN CENTRE

Reference and Administrative Details

Trustees Dimitri Scarlett Adrian Kerr Leon Watson Godwin Chukwudinma Principal Office 14 Mayville Road London E11 4PJ Charity Registration 1055728 Number Independent Examiner G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF Bankers Lloyds TSB 20 Lewisham High Street Lewisham London SE13 6JG

Page 1

THE POTTER'S HOUSE CHRISTIAN CENTRE

Trustees' Report

The Trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2020.

Structure, governance and management

Nature of governing document

The Potter's House Christian Centre is a registered charity, number 1055728, and is constituted under a Trust deed.

Recruitment and appointment of Trustees

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

Organisational structure

The day to day running of the Church is delegated by the Trustees to the pastor and his assistant.

Risk Management

The trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Objectives and activities

Objects and aims

The charity promotes the Christian faith through worship and through its regular activities for the community to which invitations are given out to the public.

Public benefit

The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Grant making policies

The church provides financial support for fellowship churches nationally and internationally.

Achievements and performance

Review of activities

The 2020 year, was a year where due to Covid19, we had to think outside the box, stay relevant and find ways to stay in contact with the congregation. We started off by identifying all the members that were elderly and possibly living on their own. We were also able to provide food for many of our families who were finding it difficult during this season. We thank God that we were able to remain active as a church and did not lose any of our members to Covid19.

Page 2

THE POTTER'S HOUSE CHRISTIAN CENTRE

Trustees' Report

Shortly after COVID-19 forced the city along with the rest of the country into a national lockdown. That meant we had to quickly adapt and reposition ourselves as follows:

Church Services were operated online via the church YouTube channel initially on Sundays only and at a later date both Sunday and Wednesday services were being live streamed.

10 Bible Studies groups via Zoom had temporarily replaced our midweek service and was eventually returned to the normal Friday evenings. This was very beneficial as we were all able to see and interact with each other and it was a great time for Q & A and discussions.

Trying to capitalize on the adjustments, meant that our social channels featured more prominently in our activity. Via our Instagram page we started our ‘Testimony Tuesday’s’ series, hosted by Pastor Nathan James, where members of the congregation shared their stories of encouragement and victory. Furthermore, we had Live Concerts on the platform hosted by Nathan Taylor-Billings featuring artists from not only our own congregation but with ministers from our churches in Brixton, Wandsworth, Tucson & Toronto.

Worship sessions were by hosted by our praise and worship leader who was concerned about the team losing sight of worship during the pandemic. The purpose of these sessions was to keep the team in touch and communicating with each other. Popular worship songs throughout the ages were selected, researched by each member on a fortnightly basis and discussions took place on what the song meant to each individual and the impact it had.

Next Generation Children’s Ministry had to adjust to delivering NGM online. This had been a challenging period as they had to transition onto using YouTube as opposed to the traditional method of delivering a live session to the children. They had to adjust to recording and editing weekly videos to make it suitable and appropriate for the children. The toughest part was not knowing how long this would be going on and how things would develop. During this second wave it was calmer and staff knew what to expect. The children were enjoying the videos and have been able to engage virtually.

Zoom Morning Prayer was initiated by our associate Pastor and what started off as being for a short period of time remains in action to date.

We realised as a church the importance of keeping members together and many more was birthed during this season such as online games nights, virtual book clubs, lady’s prayer bubbles and The Father’s Club.

As the lockdown restrictions started to ease later in the year, we organized a park meet up with preaching for local park visitors. This was a refreshing time for our members as we had not seen each other in months.

Church Planting

We were delighted to note that despite the pandemic the gospel must continue to be preached and a new work was planted internationally in Hamburg Germany and Manchester UK.

Page 3

THE POTTER'S HOUSE CHRISTIAN CENTRE

Trustees' Report

Financial review

The income for the year amounted to £501,565 (2019 - £593,672) with expenditure being £368,839 (2019 - £565,698). The resulting surplus of £132,726 (2019 - £27,974) increased funds to £290,245 from £157,519 in 2019.

Investment policy and objectives

The trust deed authorises the trustees to make and hold investments using the general funds of the charity.

Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Statement of Trustees' Responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities 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 of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper 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 Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The Trustees 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.

The annual report was approved by the Trustees of the charity on 5 September 2021 and signed on its behalf by:

........................................ Dimitri Scarlett Trustee

Page 4

THE POTTER'S HOUSE CHRISTIAN CENTRE

Independent Examiner's Report to the Trustees of The Potter's House Christian Centre

I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 6 to 18.

Respective responsibilities of Trustees and examiner

As the charity’s Trustees of The Potter's House Christian Centre you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the The Potter's House Christian Centre's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since The Potter's House Christian Centre'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 Chartered Institute of Management Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of The Potter's House Christian Centre as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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.

...................................... G W Schulz ACMA

Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex, PO18 8NF

5 September 2021

Page 5

THE POTTER'S HOUSE CHRISTIAN CENTRE

Statement of Financial Activities for the Year Ended 31 December 2020

Note
Unrestricted
funds
£
Income and Endowments from:
Donations and legacies
2
493,134
Investment income
3
50
Total income
493,184
Expenditure on:
Charitable activities
4
338,298
Total expenditure
338,298
Net
income/(expenditure)
154,886
Gross transfers between
funds
(14,743)
Net movement in funds
140,143
Reconciliation of funds
Total funds brought
forward
146,018
Total funds carried
forward
12
286,161		 Restricted
funds
£
8,381
-
8,381
30,541
30,541
(22,160)
14,743
(7,417)
11,501
4,084		 Total
2020
£
501,515
50
501,565
368,839
368,839
132,726
-
132,726
157,519
290,245		 Total
2019
£
593,626
46
593,672
565,698
565,698
27,974
-
27,974
129,545
157,519

The notes on pages 9 to 18 form an integral part of these financial statements. Page 6

THE POTTER'S HOUSE CHRISTIAN CENTRE

Balance Sheet as at 31 December 2020

Note
Fixed assets
Tangible assets
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: Amounts falling due within one year
10
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
12		 2020
£
3,378
27,847
270,344
298,191
(11,324)
286,867
290,245
4,084
286,161
290,245		 2019
£
2,903
24,905
145,820
170,725
(16,109)
154,616
157,519
11,501
146,018
157,519

The financial statements on pages 6 to 18 were approved by the Trustees, and authorised for issue on 5 September 2021 and signed on their behalf by:

......................................... Dimitri Scarlett Trustee

The notes on pages 9 to 18 form an integral part of these financial statements. Page 7

THE POTTER'S HOUSE CHRISTIAN CENTRE

Cash Flow Statement for the Year Ended 31 December 2020

Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash items
Depreciation
Investment income
3
Working capital adjustments
(Increase)/decrease in debtors
9
(Decrease)/increase in creditors
10
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
3
Purchase of tangible fixed assets
8
Net cash flows from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
Reconciliation of net cash flow to movement in net
funds
Increase in cash
Net funds at 1 January 2020
Net funds at 31 December 2020		 2020
£
132,726
1,425
(50)
134,101
(2,942)
(4,785)
126,374
50
(1,900)
(1,850)
124,524
145,820
270,344
124,524
145,820
270,344		 2019
£
27,974
1,703
(46)
29,631
10,042
461
40,134
46
-
46
40,180
105,640
145,820
40,180
105,640
145,820

The notes on pages 9 to 18 form an integral part of these financial statements. Page 8

THE POTTER'S HOUSE CHRISTIAN CENTRE

Notes to the Financial Statements for the Year Ended 31 December 2020

1 Accounting policies

Statement of compliance

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 UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

The Potter's House Christian Centre meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Gift aid

Incoming resources from tax reclaims are included in the Statement of Financial Activities at the same time as the gift to which they relate.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.

Page 9

THE POTTER'S HOUSE CHRISTIAN CENTRE

Notes to the Financial Statements for the Year Ended 31 December 2020

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grant provisions

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Tangible fixed assets

Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Short-term leasehold property Over term of lease
Furniture and equipment 20% on cost
Computer equipment 25% on cost
Fixtures and fittings 10% on cost

Trade debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Page 10

THE POTTER'S HOUSE CHRISTIAN CENTRE

Notes to the Financial Statements for the Year Ended 31 December 2020

Fund structure

Unrestricted income funds are general funds that are available for use at the Trustees's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 11

THE POTTER'S HOUSE CHRISTIAN CENTRE

Notes to the Financial Statements for the Year Ended 31 December 2020

2 Income from donations and legacies

Unrestricted
funds
General
£
Donations and legacies;
Donations
339,614
Conference and event
income
-
Church tithe income
74,403
Gift aid reclaimed
77,640
Other income from
donations and legacies
1,477
493,134
3 Investment income

Interest receivable and similar income;
Interest receivable on bank deposits		 Restricted
funds
£
4,502
3,879
-
-
-
8,381
Unrestricted
funds
General
£
50		 Total
2020
£
344,116
3,879
74,403
77,640
1,477
501,515
Total
2020
£
50		 Total
2019
£
377,660
62,126
66,583
86,895
362
593,626
Total
2019
£
46

Page 12

THE POTTER'S HOUSE CHRISTIAN CENTRE

Notes to the Financial Statements for the Year Ended 31 December 2020

4 Expenditure on charitable activities

Note
Conference costs
Church rent and
parsonage
Benevolence
Ministry meals
Love offerings
Marriage retreat
World
evangelism
Revival
Impact teams
Church ministry
Media
Telephone and
utilities
Professional
charges
Printing,
stationery and
insurance
Equipment and
maintenance
Vehicle expenses
Office and
administration
Travel and
airfares
Bank charges
and interest
Independent
examination
Depreciation
Grants
5
Staff costs
7		 Unrestricted
funds
General
£
305
80,630
1,840
3,600
8,820
-
-
2,180
626
2,521
12,055
9,008
1,401
2,351
2,087
5,891
7,439
5,251
776
3,360
1,425
83,369
103,363
338,298		 Restricted
funds
£
7,736
15,165
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,640
-
30,541		 Total
2020
£
8,041
95,795
1,840
3,600
8,820
-
-
2,180
626
2,521
12,055
9,008
1,401
2,351
2,087
5,891
7,439
5,251
776
3,360
1,425
91,009
103,363
368,839		 Total
2019
£
67,324
118,271
4,961
8,062
16,323
1,493
5,729
5,966
3,155
8,100
-
12,319
836
10,729
5,697
15,015
7,171
7,728
1,845
3,360
1,703
131,693
128,218
565,698

Page 13

THE POTTER'S HOUSE CHRISTIAN CENTRE

Notes to the Financial Statements for the Year Ended 31 December 2020

5 Grant-making

Analysis of grants

Tithes and support given Grants to institutions
2020
£
2019
£
91,009
131,693

6 Trustees remuneration and expenses

No Trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year (2019 - 2 Trustees £451).

7 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2020
£
96,542
4,956
1,865
103,363		 2019
£
120,967
5,083
2,168
128,218

The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:

Employees 2020
No
6		 2019
No
7

No employee received emoluments of more than £60,000 during the year

Page 14

THE POTTER'S HOUSE CHRISTIAN CENTRE

Notes to the Financial Statements for the Year Ended 31 December 2020

8 Tangible fixed assets

Cost
At 1 January
2020
Additions
Disposals
At 31
December 2020
Depreciation
At 1 January
2020
Charge for the
year
Eliminated on
disposals
At 31
December 2020
Net book value
At 31
December 2020
At 31
December 2019
9 Debtors
Prepayments
Accrued income
Other debtors		 Short-term
leasehold
property
£
28,228
-
(28,228)
-
28,228
-
(28,228)
-
-
-		 Furniture
and
equipment
£
8,655
1,900
-
10,555
6,145
1,369
-
7,514
3,041
2,510		 Computer
equipment
£
3,837
-
-		 Fixtures
and fittings
£
561
-
-
561
168
56
-
224
337
393
2020
£
1,500
9,901
16,446
27,847		 Fixtures
and fittings
£
561
-
-
561
168
56
-
224
337
393
2020
£
1,500
9,901
16,446
27,847		 Total
£
41,281
1,900
(28,228)
14,953
38,378
1,425
(28,228)
11,575
3,378
2,903
2019
£
1,140
7,159
16,606
3,837 561
3,837
-
-		 168
56
-
3,837 224
- 337
- 393
2020
£
1,500
9,901
16,446
27,847
24,905

Page 15

THE POTTER'S HOUSE CHRISTIAN CENTRE

Notes to the Financial Statements for the Year Ended 31 December 2020

10 Creditors: amounts falling due within one year

10 Creditors: amounts falling due within one year
Other taxation and social security
Other creditors
Accruals		 2020
£
2,571
576
8,177
11,324		 2019
£
3,783
5,588
6,738
16,109

11 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to - £1,865 (2019 £2,168).

Page 16

THE POTTER'S HOUSE CHRISTIAN CENTRE

Notes to the Financial Statements for the Year Ended 31 December 2020

12 Funds

12 Funds
Unrestricted funds
General
General Funds
Restricted funds
Building fund
Conference fund
Tuscan building pledge
Total funds
Unrestricted funds
General
General Funds
Restricted funds
Building fund
Conference fund
Tuscan building pledge
Total funds		 Balance
at 1
January
2020
£
146,018
4,502
7,941
3,560
16,003
162,021
Balance
at 1
January
2019
£
117,706
3,613
11,839
-
15,452
133,158		 Incoming
resources
£
493,184
-
3,879
-
3,879
497,063
Incoming
resources
£
524,373
-
62,126
3,560
65,686
590,059		 Resources
expended
£
(338,298)
(15,165)
(7,736)
(7,640)
(30,541)
(368,839)
Resources
expended
£
(437,254)
(62,420)
(66,024)
-
(128,444)
(565,698)		 Transfers
£
(14,743)
10,663
-
4,080
14,743
-
Transfers
£
(58,807)
58,807
-
-
58,807
-		 Balance
at 31
December
2020
£
286,161
-
4,084
-
4,084
290,245
Balance
at 31
December
2019
£
146,018
-
7,941
3,560
11,501
157,519

Page 17

THE POTTER'S HOUSE CHRISTIAN CENTRE

Notes to the Financial Statements for the Year Ended 31 December 2020

13 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
3,378
294,107
(11,324)
286,161
Unrestricted
funds
General
£
2,903
159,224
(16,109)
146,018		 Restricted
funds
£
-
4,084
-
4,084
Restricted
funds
£
-
11,501
-
11,501		 Total funds
at 31
December
2020
£
3,378
298,191
(11,324)
290,245
Total funds
at 31
December
2019
£
2,903
170,725
(16,109)
157,519

Page 18