Annual Report and Financial Statements for the Year Ended 31 December 2021
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 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Cash Flow Statement | 9 |
| Notes to the Financial Statements | 10 to 19 |
THE POTTER'S HOUSE CHRISTIAN CENTRE
Reference and Administrative Details
Trustees
Dimitri Scarlett Adrian Kerr Leon Watson (resigned 31 May 2021) Seun Odeneye (appointed 1 June 2021)
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 2021.
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 year 2021 carried some of the restrictions, which were implemented in 2020 as a result of COVID-19. As a consequence, up until July 2021, the government permitted that the Church Services were to be live streamed online via the church YouTube channel, where both Sunday and Wednesday services were to be broadcasted. It was a slow start but towards the end of the year we began to see an increase in our church attendance, as many were still apprehensive regarding the potential threat of COVID-19.
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Trustees' Report
Corporate Prayer
Zoom Morning Prayer meetings was initiated by our associate Pastor in 2020 following on from the COVID-19 outbreak and what started off as a temporary action ended up remaining a permanent fixture in the church calendar. The Ladies Prayer Meetings took place on the 3rd Thursday of every month and gave the ladies in the congregation an opportunity to express requests that they would not necessarily share in a bigger setting. Monthly Prayer Meetings is a time when members join together in agreement for the needs of our congregation.
Next Generation Children’s Ministry
During lockdown, we continued to deliver NGM online. We were able to develop our skills making videos as time progressed. Although the children enjoyed the videos and were able to engage virtually with us, we looked forward to returning to some form of normality and being together in-person. Since moving from YouTube to having live children’s church (after the lockdown restrictions were eased), it has had a massive impact on the children and workers. The children are now able to see their friends and engage with the sessions, and participate in arts and craft. We have learned to be resilient and remain positive when facing challenges beyond our control. The highlight of the year was delivering children’s church at our Bible Training Conference, during April 2021. Although the numbers were on a smaller scale, we managed to ensure we adhered to the rules and regulations. We followed the government guidelines and ensured both children and workers kept safe.
Youth Ministry
The Refine youth ministry provided a platform where we were able to offer mentoring, life coaching and help facilitate conversations on topics that ordinarily may be seen as a taboo. We base our thinking on bible principles which in 2021 included:
-
Regular sessions where we reviewed bible passages and discussed how we could apply it to our life’s circumstances
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Multiple invasion teams where we went to help out local churches in the UK
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Debates that gave the youth a platform of expression
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Workshops, our most successful workshop was on finance one which was all about
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budgeting and being a good financial steward
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Social events such as games nights and sports days
My Sisters Keeper (M.S.K)
The ethos of My Sisters Keeper was inspired by Philippians 2:4: “Let each of you look out not only for his own interests, but also for the interests of others”. The aim of it was to bridge the gap between the younger and mature ladies. This ministry brings all experiences together and facilitates the building of relationships, encouragement and shared ideas. My Sisters Keeper also serves as an outreach to the community. For example, our presentation on mental wellbeing was highly received and supported by our qualified mental health nurses from our congregation. Government guidelines permitted gatherings and we had two events in 2021; The joy of the Lord, which was a games afternoon, where ladies were relieved to be able to gather and just interact with each other. Topped off with our annual end of year party, which continues to be a success year after year.
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Trustees' Report
The Father’s Club
Originally founded by a member of the congregation who is married with 3 young children, The Father’s Club is a community group that provides a safe place for fathers to meet, exchange ideas and encourage one another on their journey of fatherhood. With the high number of fatherless homes and the detrimental effects that this has - the group aims to break the negative stereotype of absent fathers and hopes to create a generation of intentional, hands on fathers. We believe that his will have a positive impact on our society. The initial frequency of these meetings bi-monthly and had now increased to once a month. The pandemic moved these meetings to online via zoom call, where we now consistently have 20+ fathers attend regularly. In each meeting, best practice on parenting is shared and extra support is signposted for any parent that needs it.
Annual Bible Conference
Church Planting:
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UK Planting: Out of the Rotherhithe congregation into Woolwich: Leon & Natalie Watson
-
International Planting: We were delighted to announce the commencing of international work into Bremen, Germany that was put on hold due to the covid restrictions last year from Namibia: Gerhard and Michelle Kgobetsi
Financial review
Income for the year amounted to £582,133 (2020: £501,565) and expenditure £396,193 (2020: £358,839). The surplus of £185,940 was added to funds brought forward with unrestricted funds being £443,194 at the year end.
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.
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Trustees' Report
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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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 13 June 2022 and signed on its behalf by:
........................................ Dimitri Scarlett Trustee
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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 2021 which are set out on pages 7 to 19.
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:
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accounting records were not kept in respect of The Potter's House Christian Centre as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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
13 June 2022
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Statement of Financial Activities for the Year Ended 31 December 2021
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 2 508,773 Investment income 3 35 Total income 508,808 Expenditure on: Charitable activities 4 351,775 Total expenditure 351,775 Net income 157,033 Net movement in funds 157,033 Reconciliation of funds Total funds brought forward 286,161 Total funds carried forward 12 443,194 |
Restricted funds £ 73,325 - 73,325 44,418 44,418 28,907 28,907 4,084 32,991 |
Total 2021 £ 582,098 35 582,133 396,193 396,193 185,940 185,940 290,245 476,185 |
Total 2020 £ 501,515 50 |
|---|---|---|---|
| 501,565 | |||
| 368,839 | |||
| 368,839 | |||
| 132,726 | |||
| 132,726 157,519 |
|||
| 290,245 |
The notes on pages 10 to 19 form an integral part of these financial statements. Page 7
THE POTTER'S HOUSE CHRISTIAN CENTRE
Balance Sheet as at 31 December 2021
| 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 |
2021 £ 12,553 12,553 24,266 452,960 477,226 (13,594) 463,632 476,185 32,991 443,194 476,185 |
2020 £ 3,378 |
|---|---|---|
| 3,378 | ||
| 27,847 270,344 |
||
| 298,191 (11,324) |
||
| 286,867 | ||
| 290,245 | ||
| 4,084 286,161 |
||
| 290,245 |
The financial statements on pages 7 to 19 were approved by the Trustees, and authorised for issue on 13 June 2022 and signed on their behalf by:
......................................... Dimitri Scarlett Trustee
The notes on pages 10 to 19 form an integral part of these financial statements. Page 8
THE POTTER'S HOUSE CHRISTIAN CENTRE
Cash Flow Statement for the Year Ended 31 December 2021
| Note Cash flows from operating activities Net cash income Adjustments to cash flows from non-cash items Depreciation Investment income 3 Working capital adjustments Decrease/(increase) in debtors 9 Increase/(decrease) 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 |
2021 £ 185,940 3,942 (35) 189,847 3,581 2,270 195,698 35 (13,117) (13,082) 182,616 270,344 452,960 |
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 |
The notes on pages 10 to 19 form an integral part of these financial statements. Page 9
THE POTTER'S HOUSE CHRISTIAN CENTRE
Notes to the Financial Statements for the Year Ended 31 December 2021
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.
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Notes to the Financial Statements for the Year Ended 31 December 2021
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 |
|---|---|
| Furniture and equipment | 20% on cost |
| Computer equipment | 25% on cost |
| Fixtures and fittings | 10% on cost |
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.
Liabilities
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.
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Notes to the Financial Statements for the Year Ended 31 December 2021
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.
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Notes to the Financial Statements for the Year Ended 31 December 2021
2 Income from donations and legacies
| Unrestricted funds General £ Donations and legacies; Donations 352,988 Conference and event income - Church tithe income 74,659 Gift aid reclaimed 81,055 Other income from donations and legacies 71 508,773 3 Investment income Interest receivable and similar income; Interest receivable on bank deposits |
Restricted funds £ 3,828 69,497 - - - 73,325 Unrestricted funds General £ 35 |
Total 2021 £ 356,816 69,497 74,659 81,055 71 582,098 Total 2021 £ 35 |
Total 2020 £ 344,116 3,879 74,403 77,640 1,477 |
|---|---|---|---|
| 501,515 | |||
| Total 2020 £ 50 |
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Notes to the Financial Statements for the Year Ended 31 December 2021
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 £ - 91,176 675 5,425 11,672 1,546 1,801 1,502 2,761 2,243 6,866 8,801 1,256 3,079 4,327 4,986 10,043 7,740 702 2,400 3,942 81,357 97,475 351,775 |
Restricted funds £ 40,590 3,828 - - - - - - - - - - - - - - - - - - - - - 44,418 |
Total 2021 £ 40,590 95,004 675 5,425 11,672 1,546 1,801 1,502 2,761 2,243 6,866 8,801 1,256 3,079 4,327 4,986 10,043 7,740 702 2,400 3,942 81,357 97,475 396,193 |
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 |
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Notes to the Financial Statements for the Year Ended 31 December 2021
5 Grant-making
Analysis of grants
| Tithes and support given | Grants to institutions 2021 £ 2020 £ 81,357 91,009 |
|---|---|
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.
7 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2021 £ 92,216 3,569 1,690 97,475 |
2020 £ 96,542 4,956 1,865 |
|---|---|---|
| 103,363 |
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 | 2021 No 5 |
2020 No 6 |
|---|---|---|
No employee received emoluments of more than £60,000 during the year
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Notes to the Financial Statements for the Year Ended 31 December 2021
8 Tangible fixed assets
| Furniture and equipment £ Computer equipment £ Cost At 1 January 2021 10,555 3,837 Additions 13,117 - At 31 December 2021 23,672 3,837 Depreciation At 1 January 2021 7,514 3,837 Charge for the year 3,886 - At 31 December 2021 11,400 3,837 Net book value At 31 December 2021 12,272 - At 31 December 2020 3,041 - 9 Debtors Prepayments Accrued income Other debtors 10 Creditors: amounts falling due within one year Other taxation and social security Other creditors Accruals |
Computer equipment £ 3,837 - |
Fixtures and fittings £ 561 - 561 224 56 280 281 337 2021 £ - 7,820 16,446 24,266 2021 £ 2,553 5,129 5,912 13,594 |
Fixtures and fittings £ 561 - 561 224 56 280 281 337 2021 £ - 7,820 16,446 24,266 2021 £ 2,553 5,129 5,912 13,594 |
Total £ 14,953 13,117 28,070 11,575 3,942 15,517 12,553 3,378 2020 £ 1,500 9,901 16,446 |
|
|---|---|---|---|---|---|
| 3,837 | 561 | ||||
| 3,837 - |
224 56 |
||||
| 3,837 | 280 | ||||
| - | 281 | ||||
| - | 337 | ||||
| 2021 £ - 7,820 16,446 24,266 2021 £ 2,553 5,129 5,912 13,594 |
|||||
| 27,847 | |||||
| 2020 £ 2,571 576 8,177 |
|||||
| 11,324 |
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Notes to the Financial Statements for the Year Ended 31 December 2021
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 - £1,690 (2020 £1,865).
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Notes to the Financial Statements for the Year Ended 31 December 2021
12 Funds
| Unrestricted funds General General Funds Restricted funds Building fund Conference fund Total funds Unrestricted funds General General Funds Restricted funds Building fund Conference fund Tuscan building pledge Total funds |
Balance at 1 January 2021 £ Incoming resources £ Resources expended £ Balance at 31 December 2021 £ 286,161 508,808 (351,775) 443,194 - 3,828 (3,828) - 4,084 69,497 (40,590) 32,991 4,084 73,325 (44,418) 32,991 290,245 582,133 (396,193) 476,185 Balance at 1 January 2020 £ Incoming resources £ Resources expended £ Transfers £ Balance at 31 December 2020 £ 146,018 493,184 (338,298) (14,743) 286,161 - 4,502 (15,165) 10,663 - 7,941 3,879 (7,736) - 4,084 3,560 - (7,640) 4,080 - 11,501 8,381 (30,541) 14,743 4,084 157,519 501,565 (368,839) - 290,245 |
Balance at 31 December 2021 £ 443,194 - 32,991 |
Balance at 31 December 2021 £ 443,194 - 32,991 |
|---|---|---|---|
| 32,991 | |||
| 476,185 | |||
| Balance at 31 December 2020 £ 286,161 - 4,084 - |
|||
| 4,084 | |||
| 290,245 |
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THE POTTER'S HOUSE CHRISTIAN CENTRE
Notes to the Financial Statements for the Year Ended 31 December 2021
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 £ 12,553 444,235 (13,594) 443,194 Unrestricted funds General £ 3,378 294,107 (11,324) 286,161 |
Restricted funds £ - 32,991 - 32,991 Restricted funds £ - 4,084 - 4,084 |
Total funds at 31 December 2021 £ 12,553 477,226 (13,594) |
|---|---|---|---|
| 476,185 | |||
| Total funds at 31 December 2020 £ 3,378 298,191 (11,324) |
|||
| 290,245 |
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