APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
ACCOUNTS AND ANNUAL REPORT
FOR THE YEAR ENDED
31 DECEMBER 2020
CHARITY NO: 1072227
Cound & Co LLP Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR
Tel: 01509 214163
APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD) FOR THE YEAR ENDED 31 DECEMBER 2020
| Contents | Page |
|---|---|
| Report of the Trustees | 1 - 4 |
| Independent Examiner’s Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes Forming Part of the Financial Statements | 8 - 13 |
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 December 2020.
OBJECTIVES
The objectives of the Charity are:
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To advance the Christian faith (in accordance with its Statement of Belief) in London and elsewhere.
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To relieve persons in hardship or distress in London and elsewhere.
ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE
In accordance with the Church’s objectives, the Church is continually involved in day to day Church activities and in many other activities in the local community and further afield. Part of the building is already being used for the various Church activities, mentioned below:-
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Sunday Church Service
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Sunday School
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Weddings
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Funerals
Pastoral counselling on different levels, dealing with drug abuse, domestic violence, physical, spiritual and emotional issues, mentoring, and general encouragement to set people back on the course of life. This practical help and advice is still very much a part of the Church's ongoing work:-
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Bible Study
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Youth Work
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Drama Workshop
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Drug/Racism Awareness Seminars
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Prison Ministry
Reaching out to all members of society, both at home and overseas, irrespective of cultural, social and ethnic backgrounds, remains one of the main aims of the Church. Church numbers have remained steady, with continued involvement by the congregation in all aspects of Church life.
From mid-March until early June, the Church went into lock down due to Covid 19, like everyone else in the UK. During this period, only minimal on-line presence was being carried out. Once the lockdown restriction began to ease, the Church opened its doors to the congregation, but functioning on restricted capacity until present. Prior to the lockdown, a team from the Church travelled to Ghana in January for their annual thanks giving service and to Texas in March to set up the Houston Ixthus Church Council chapter.
The Church continues to build a strong relationship with Angel Place Nursery Ltd, who is extending their business to accommodate more children, which will subsequently lead to an increase in income for the Church. During Covid, the Nursery have been granted a rent free period. The income stream of the Church was unaffected due to members’ donations increasing.
The Church refinanced their debt, moving from NatWest Bank to Unity Bank, extended the term and borrowed additional funds so that improvements could be made to our audio and visual equipment with the intention to allow to stream educational biblical teachings at a charge, therefore increasing our revenue. .
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
TRUSTEES REPORT (CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2020
Ixthus Church Council (ICC) Events (All held at ACC)
- ICC Conference on Saturday 10[th] October 2020
Ministers Ordained or became members of in 2020 (All at ACC)
- Bishop Stanley Lopes – Consecrated on 13/12/20
Other Events – Bible Diploma Course at ACC.
- 8-week course starting January 2020 (Graduation of 6 students was at Conference in October)
FINANCIAL REVIEW
Income increased during the year to £280,959 from £205,411. This increase is due to an increase in donations being received in 2020. Expenditure decreased during the year from £182,791 to £169,933, which means that this year there has been a surplus of £111,026 (2019: £22,620).
Risk Management
The Trustees have conducted their own review of the major risks to which the Church is exposed and systems have been established to mitigate those risks. Internal risks are minimised by the implementation of procedures for authorisation of all financial transactions and projects. These procedures are periodically reviewed to ensure that they still meet the needs of the Charity.
Organisation
The Board of Trustees meet a minimum of twice a year, and when necessary, the Trustees meet in between these times to discuss and act upon any urgent matters which might arise. The day to day operational responsibility is delegated to Andrew Sotiriou. However, the spiritual government of the Church fellowship is under the control of the recognised spiritual leadership of the Church.
Related Parties
The Charity has close relationships with a number of organisations that work to achieve compatible objectives within the area, including:
The Metropolitan Police The Haringey Peace Alliance Other local Churches through the Ixthus Council
The Church is continuing to build on the excellent relationship it has with the local Police Force and Enfield Borough Council, who continue to welcome and support the work of the Church. A visit to the Church was made by the Borough Commander of Enfield who met with Archbishop Evangelou and the Senior Pastor to discuss ways of working together in the community.
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
TRUSTEES REPORT (CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2020
REFERENCE AND ADMINISTRATIVE DETAILS
CHARITY NUMBER 107227 PRINCIPAL OFFICE 193 – 195 Angel Place Fore Street Edmonton London NE18 2UD
The trustees serving during the year and since the year end were as follows:
A Sotiriou M Constantinou P Efstathiou A Georgiou
INDEPENDENT EXAMINERS Cound & Co LLP 1 Princes Court Royal Way Loughborough Leics LE11 5XR BANKERS National Westminster Bank plc 1302 High Road Whetstone London N20 9JS CafCash Limited PO Box 289 West Maling Kent ME19 4TA
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing Document
The charity was established by a Declaration of Trust dated 14 September 1998. It was registered as a charity with the Charity Commission on 31 October 1998.
Appointment of Trustees
As set out in the Declaration of Trust, the Church has a minimum of three trustees and it is not subject to a maximum number. New trustees are invited to join the board if they have a particular area of expertise that can help the charity. A majority of trustees need to agree on this.
Trustee Induction and Training
New trustees are advised of their obligations under charity law, the content of the Declaration of Trust as well as the structure and decision-making process of the committee.
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
TRUSTEES REPORT (CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2020
Reserves Policy
The Trustees monitor the financial position of the Church and have established a level of reserves that they believe the Church requires to cover day to day expenditure and also unforeseen emergencies such as repairs to the Church buildings. This level is deemed as being approximately two months’ expenditure, which is not considered excessive.
Approved by the Trustees on 10 April 2021 and signed on their behalf by:
………………………………….
P Efstathiou
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INDEPENDENT EXAMINER’S REPORT
TO THE TRUSTEES OF THE APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
I report on the accounts of the charity for the year ended 31 December 2020 which are set out on pages 5 to 12.
Respective Responsibilities of Trustees and Examiner
The charity’s trustees are responsible for the preparation of the accounts.
The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
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examine the accounts under section 145 of the Charities Act;
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follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145(5)(b) of the Charities Act; and
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state whether particular matters have come to my attention.
Basis of Independent Examiner’s Statement
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.
Independent Examiner’s Statement
In connection with our examination, no matter has come to my attention:
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which gives me reasonable cause to believe that, in any material respect, the requirements:
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to keep proper accounting records in accordance with section 130 of the Charities Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act;
has not met; or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
D R Gradon MA FCA Cound & Co LLP Chartered Accountants 1 Princes Court Royal Way Loughborough Leics LE11 5XR
27 April 2021
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2020
| INCOME Donations and legacies Donations Gift Aid tax recoverable Income from charitable activities Hall hire IXTHUS TOTAL INCOME EXPENDITURE Charitable activities TOTAL EXPENDITURE NET INCOME FOR THE YEAR AND MOVEMENT IN FUNDS BEFORE GAINS AND LOSSES Net Gains on the Revaluation of Fixed Assets NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: TOTAL FUNDS BROUGHT FORWARD TOTAL FUNDS CARRIED FORWARD Note The Church also applied resources as follows in respect of capital Freehold church building Music and other equipment Fixtures and fittings |
Unrestricted Total Total Funds Funds Funds Notes 2020 2020 2019 187041 187041 121136 35049 35049 26168 53352 53352 52002 5517 5517 6105 __ _ £280959 £280959 £205411 2 169933 169933 182791 £169933 £169933 £182791 111026 111026 22620 4 57648 57648 49439 £168674 £168674 £72059 889934 889934 817875 £1058608 £1058608 £889934 expenditure: 2020 2019 - - - - 5069 875 £5069 £875 ___ |
Unrestricted Total Total Funds Funds Funds Notes 2020 2020 2019 187041 187041 121136 35049 35049 26168 53352 53352 52002 5517 5517 6105 __ _ £280959 £280959 £205411 2 169933 169933 182791 £169933 £169933 £182791 111026 111026 22620 4 57648 57648 49439 £168674 £168674 £72059 889934 889934 817875 £1058608 £1058608 £889934 expenditure: 2020 2019 - - - - 5069 875 £5069 £875 ___ |
Unrestricted Total Total Funds Funds Funds Notes 2020 2020 2019 187041 187041 121136 35049 35049 26168 53352 53352 52002 5517 5517 6105 __ _ £280959 £280959 £205411 2 169933 169933 182791 £169933 £169933 £182791 111026 111026 22620 4 57648 57648 49439 £168674 £168674 £72059 889934 889934 817875 £1058608 £1058608 £889934 expenditure: 2020 2019 - - - - 5069 875 £5069 £875 ___ |
|---|---|---|---|
| 2019 | |||
| - - 875 _ £875 _ |
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
BALANCE SHEET AS AT 31 DECEMBER 2020
Fixed Assets Current Assets Debtors Cash at Bank and in Hand Creditors: Amounts falling due within one year Net Current Assets/(Liabilities) Total Assets Less Current Liabilities Creditors: Amounts falling due after more than one year Net Assets Unrestricted Funds General Funds Revaluation Reserve Total Funds |
Notes 2020 4 1297683 5 14698 211204 _ 225902 6 36791 __ 189111 _ 1486794 _ 7 428186 _ £1058608 _ 10 594572 10 464036 __ £1058608 ____ |
2019 10681 4004 _ 14685 23890 __ |
1240747 (9205) _ 1231542 _ 341608 _ £889934 _ 483546 406388 __ £889934 ____ |
|---|---|---|---|
Approved by the trustees on 10 April 2021 and signed on their behalf by:
……………………………………
M Constantinou (Trustee)
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
1. Accounting Policies
- a) These financial statements 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 FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS102”) (effective 1 January 2016)’, FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (effective September 2016) and the Charities Act 2011. The disclosure requirements of Section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view.
The charity constitutes a public benefit entity under FRS102.
Assets and liabilities are initially recognised at historical cost or transactional value unless otherwise stated in the relevant accounting policy note and the financial statements are prepared on a going concern basis. The financial statements are prepared in sterling, which is the financial currency of the charity and rounded to the nearest £1.
- b) General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the funding provider. The costs of raising and administering such funds are charged against the specific funds.
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c) Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. The value of services provided by volunteers has not been included.
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d) Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered.
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e) Depreciation is charged in such a way as to write off the cost of fixed assets over their estimated useful lives at the following rates:
| Office equipment | - | 30% of net book amount per annum |
|---|---|---|
| Music and other equipment | - | 30% of net book amount per annum |
| Motor Vehicles | - | 25% of net book amount per annum |
No depreciation has been charged in respect of the freehold church buildings. Freehold church buildings are valued at fair value. The movement in the year is transferred to the Revaluation reserve.
f) Judgements and Estimation Uncertainties
The trustees have given consideration to any judgements and uncertainties in these accounts and the only issue to note is that the Church’s going concern is based on the continued support from its congregation and members, who provide the majority of the income for the Church. However, there is no reason to suspect that this support will not continue in the future.
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
| 2. | Charitable Expenses 2020 2019 Ministerial expenses 401 953 Evangelistic literature 445 163 Gas and electricity 10232 12916 Rates 2439 576 Insurance 2699 2600 Repairs and maintenance 6933 8405 Salaries 79958 120345 Music and audio/CD, tapes and DVDs - 705 Church functions/events 18 1101 Travel Expenses 3010 189 Bank loan interest 19564 17805 Donations (see note 8) 6220 900 Bank charges and interest 7964 695 Office expenses - 36 Postage, printing and stationery 1385 1289 Subscriptions 3945 1128 Training Course Fees 943 176 Telephone and internet costs 2009 1904 Legal fees and professional fees 11487 1004 Accountancy fees 4500 3816 Depreciation - fixtures and fittings 2541 3631 - music and other equipment 734 1048 - office equipment 2506 1406 __ _ £169933 £182791 Accountancy fees are split between; Payroll and Bookkeeping services 2500 1866 Independent Examination fees 2000 1950 _ £4500 £3816 |
Charitable Expenses 2020 2019 Ministerial expenses 401 953 Evangelistic literature 445 163 Gas and electricity 10232 12916 Rates 2439 576 Insurance 2699 2600 Repairs and maintenance 6933 8405 Salaries 79958 120345 Music and audio/CD, tapes and DVDs - 705 Church functions/events 18 1101 Travel Expenses 3010 189 Bank loan interest 19564 17805 Donations (see note 8) 6220 900 Bank charges and interest 7964 695 Office expenses - 36 Postage, printing and stationery 1385 1289 Subscriptions 3945 1128 Training Course Fees 943 176 Telephone and internet costs 2009 1904 Legal fees and professional fees 11487 1004 Accountancy fees 4500 3816 Depreciation - fixtures and fittings 2541 3631 - music and other equipment 734 1048 - office equipment 2506 1406 __ _ £169933 £182791 Accountancy fees are split between; Payroll and Bookkeeping services 2500 1866 Independent Examination fees 2000 1950 _ £4500 £3816 |
Charitable Expenses 2020 2019 Ministerial expenses 401 953 Evangelistic literature 445 163 Gas and electricity 10232 12916 Rates 2439 576 Insurance 2699 2600 Repairs and maintenance 6933 8405 Salaries 79958 120345 Music and audio/CD, tapes and DVDs - 705 Church functions/events 18 1101 Travel Expenses 3010 189 Bank loan interest 19564 17805 Donations (see note 8) 6220 900 Bank charges and interest 7964 695 Office expenses - 36 Postage, printing and stationery 1385 1289 Subscriptions 3945 1128 Training Course Fees 943 176 Telephone and internet costs 2009 1904 Legal fees and professional fees 11487 1004 Accountancy fees 4500 3816 Depreciation - fixtures and fittings 2541 3631 - music and other equipment 734 1048 - office equipment 2506 1406 __ _ £169933 £182791 Accountancy fees are split between; Payroll and Bookkeeping services 2500 1866 Independent Examination fees 2000 1950 _ £4500 £3816 |
|---|---|---|---|
| 1866 1950 _ £3816 ___ |
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
| 3. | Staff Numbers and Costs Salaries Social Security Costs Less: Employment Allowance Pension Contributions JRS Grants Received Average number of employees |
2020 2019 110021 110275 12769 12851 (4000) (3000) 2627 219 (41459) - __ _ £79958 £120345 2 2 _ ____ |
|---|---|---|
One of the two employees (P Efstathiou) is a trustee and her remuneration was £55052 (2019: £54806). She receives remuneration for her role as Senior Pastor and not for her role as a trustee.
No employee received emoluments in excess of £60000.
The total amount of remuneration benefits for trustees and key management personnel during the year was £112648 (2019: £110494).
| Trustees’ reimbursed expenses were: 2020 A Sotiriou 420 M Constantinou 12077 _ £12497 ___ |
2019 503 4224 _ £4727 ___ |
2019 |
|---|---|---|
The above expenses relate to goods purchased on behalf of the charity and do not include any travel, meals, accommodation and telephone costs.
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
| 4. | Fixed Assets Cost As at 1 January 2020 Additions Revaluations Balance at 31 December 2020 Depreciation At 1 January 2020 Charge for Year Balance at 31 December 2020 Net Book Value At 31 December 2020 Net Book Value At 31 December 2019 |
Freehold Church Building 1226549 - 57648 _ 1284197 _ - - __ - _ 1284197 _ 1226549 ____ |
Office Equipment 18452 5069 - _ 23521 15171 2506 17677 _ 5844 3281 |
Fixtures & Fittings 217859 - - __ 217859 _ 209388 2541 211929 5930 8471 ___ |
Music & Other Equipment Total 86488 £1549348 - 5069 - 57648 __ _ 86488 £1612065 _ _ 84042 £308601 734 5781 _ 84776 £314382 _ 1712 £1297683 _ 2446 £1240747 ____ |
Total |
|---|---|---|---|---|---|---|
The Freehold Church building was revalued by the trustees as at 31 December 2020 at its open market value.
The building was valued by NatWest Bank plc in September 2011 as part of financing arrangements by the Church. The trustees have updated this valuation to 31 December 2020 by using land registry house price indices for the local Borough to obtain a fair value.
The historical cost of the building as at 31 December 2020 was £806691 (2019: £806691).
| 5. | Debtors 2020 2019 Trade Debtors 3880 1300 Charitable Loan (see note 9) 1050 1050 Gift Aid Tax Recoverable 5227 4683 Other Debtor 4334 100 Prepayments 317 3548 _ £14698 £10681 __ _____ |
|---|---|
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
| 6. 7 |
Creditors– Amounts Falling Due Within One Year 2020 2019 Trade Creditors - - Due to HM Revenue & Customs 3412 9342 Accruals 4030 3106 Nursery Rental Deposit 6250 6250 Nursery Rent in Advance 3334 3334 Wages Owing 587 570 Hire Purchase - 1032 Pension Contributions 584 256 Bank Loan 18594 - _ £36791 £23890 __ _ Creditors– Amounts Falling Due After One Year 2020 2019 (i) NatWest Bank Loan (£364500) - 263698 NatWest Bank Loan (£142500) - 77910 (ii) Unity Bank Loan 428186 - _ £428186 £341608 ___ |
|---|---|
(i) These loans were repaid on 9 September 2020 from the Unity Bank Loan.
(ii) The Unity Bank Loan is being repaid over 20 years by monthly repayments of £2,494.40. Interest is being paid at 2.5% above bank base rate. The loan is secured by a charge over the freehold property.
| 8. | Donations Success Temple Amazing Grace Ministries International Reconciliation International Full Global Evangelism Visiting Ministry Full Gospel Evangelism Global Mission of Apostolic and Charismatic Congress Gateway of Hope Christian Church Covid Support Funeral Cost Support |
2020 - - - - 200 - - - 4520 1500 _ _ £6220 ___ |
2019 |
|---|---|---|---|
| 100 200 150 100 100 100 50 100 - - _ £900 _ |
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
9. Related Party Transactions
In 2007 the Church made a loan of £5000 to an employee, Archbishop C C Evangelou. This loan is interest free and was repayable within 3 years. However, as at 31 December 2020 £1050 was outstanding (2019: £1050) and is included in debtors (note 5).
The Church rents office space to another Charity, Community Heart (London). Two of the trustees of the Church (P Efstathiou and M Constantinou) and Archbishop C C Evangelou are also trustees of this charity.
During the year the Church received £12000 in rent (2019: £12000).
On 6 March 2016 the Church leased the ground floor and basement of the Church building to Angel Place Nursery Limited. P Efstathiou, a trustee of the Church and Archbishop C C Evangelou are also directors of this company. The lease runs for 5 years. The rent received was £40002 (2019: £40002). The nursery was actually operating on an informal rent free basis for a period prior to the lease being signed. The terms of the lease were approved by the Charity Commission.
During the year the Church received donations totalling £6120 (2019: £5600) from Ethical Financial Planning Limited. This is a company controlled by trustee, A Sotiriou.
The Church received total donations from the trustees of £15180 (2019: £13090).
| 10. | Fund Reconciliation Balance as at 1 January 2020 Unrestricted Funds 483546 Revaluation Reserve 406388 _ _ £889934 ______ |
Income 280959 - __ 280959 ____ |
Balance as at Revaluation 31 December Expenditure Gains 2019 (169933) - 594572 - 57648 464036 __ _ _ (169933) 57648 £1058608 ___ |
|---|---|---|---|
| 11. | Analysis of Net Assets by Fund Unrestricted Revaluation Funds Reserve Fixed Assets 833647 464036 Current Assets 225902 - Current Liabilities (36791) - Creditors After More Than One Year (428186) - _ _ 594572 464036 _ _ |
Total Funds 1297683 225902 (37791) (428186) _ 1058608 _ |
|---|---|---|