APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
ACCOUNTS AND ANNUAL REPORT
FOR THE YEAR ENDED
31 DECEMBER 2021
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 2021
| 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 2021
The trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 December 2021.
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.
Like everyone else in the UK Covid had impacted on the face to face element of Church life, but we continued with our on-line streaming until were allowed to meet face to face.
Due to the restrictions we could not do our usual Easter Drama but are looking forward to resuming this in 2022.
The Church continues to build a strong relationship with Angel Place Nursery Ltd, which is extending their business to accommodate more children, and this will subsequently lead to an increase in income for the Church. During Covid, the Nursery had been granted a rent free period.
Ixthus Church Council (ICC) Events (All held at ACC & via live stream)
- ICC Conference in October 2021
Other Events – Bible Diploma Course at ACC.
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8-week course resumed in 2020 (Graduation of 6 students was at Conference in October)
-
.
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
TRUSTEES REPORT (CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2021
ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE (Continued)
On-line discipleship
We held several on-line discipleships from August to December with over 30 people attending, concluding with a fellowship meal
Plans for 2022
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We have commenced streaming messages via Faith TV (a Sky programme) every Wednesday evening
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Several conferences throughout the year
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Easter Drama
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Possible mission trips
FINANCIAL REVIEW
Income decreased during the year to £245,801 from £280,959. This decrease is due to a decrease in donations being received in 2021 and a reduction in rent to support our tenants during the Covid pandemic. Expenditure increased during the year from £169,933 to £216,183, which means that this year there has been a surplus of £29,618 (2020: £111,026).
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 2021
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 2021
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 31 March 2022 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 2021 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
31 March 2022
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2021
| 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 2021 2021 2020 170052 170052 187041 26716 26716 35049 40018 40018 53352 9015 9015 5517 __ _ £245801 £245801 £280959 2 216183 216183 169933 £216183 £216183 £169933 29618 29618 111026 4 73199 73199 57648 £102817 £102817 £168674 1058608 1058608 889934 £1161425 £1161425 £1058608 expenditure: 2021 2020 - - 90794 - 10946 5069 £101740 £5069 ___ |
Unrestricted Total Total Funds Funds Funds Notes 2021 2021 2020 170052 170052 187041 26716 26716 35049 40018 40018 53352 9015 9015 5517 __ _ £245801 £245801 £280959 2 216183 216183 169933 £216183 £216183 £169933 29618 29618 111026 4 73199 73199 57648 £102817 £102817 £168674 1058608 1058608 889934 £1161425 £1161425 £1058608 expenditure: 2021 2020 - - 90794 - 10946 5069 £101740 £5069 ___ |
Unrestricted Total Total Funds Funds Funds Notes 2021 2021 2020 170052 170052 187041 26716 26716 35049 40018 40018 53352 9015 9015 5517 __ _ £245801 £245801 £280959 2 216183 216183 169933 £216183 £216183 £169933 29618 29618 111026 4 73199 73199 57648 £102817 £102817 £168674 1058608 1058608 889934 £1161425 £1161425 £1058608 expenditure: 2021 2020 - - 90794 - 10946 5069 £101740 £5069 ___ |
|---|---|---|---|
| 2020 - - 5069 __ £5069 ____ |
2020 |
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
BALANCE SHEET AS AT 31 DECEMBER 2021
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 2021 2020 4 1438054 1297683 5 10752 14698 164176 211204 _ 174928 225902 _ 6 38944 36791 135984 189111 _ _ 1574038 1486794 _ _ 7 412413 428186 _ _ £1161425 £1058608 _ _ 10 624190 594572 10 537235 464036 __ _ £1161425 £1058608 ___ |
|---|---|
Approved by the trustees on 31 March 2022 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 2021
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 2021
| 2. | Charitable Expenses 2021 2020 Ministerial expenses 4230 401 Evangelistic literature 1243 445 Gas and electricity 11515 10232 Rates (11) 2439 Insurance 2676 2699 Repairs and maintenance 15004 6933 Salaries 114474 79958 Music and audio/CD, tapes and DVDs 1067 - Church functions/events 1707 18 Travel Expenses - 3010 Bank loan interest 13105 19564 Donations (see note 8) 5424 6220 Bank charges and interest 1129 7964 Office expenses 1396 - Postage, printing and stationery 365 1385 Subscriptions 1702 3945 Training Course Fees 90 943 Telephone and internet costs 421 2009 Legal fees and professional fees - 11487 Accountancy fees 6078 4500 Depreciation - fixtures and fittings 2967 2541 - music and other equipment 27752 734 - office equipment 3849 2506 __ _ £216183 £169933 Accountancy fees are split between; Payroll and Bookkeeping services 3878 2500 Independent Examination fees 2200 2000 _ £6028 £4500 |
Charitable Expenses 2021 2020 Ministerial expenses 4230 401 Evangelistic literature 1243 445 Gas and electricity 11515 10232 Rates (11) 2439 Insurance 2676 2699 Repairs and maintenance 15004 6933 Salaries 114474 79958 Music and audio/CD, tapes and DVDs 1067 - Church functions/events 1707 18 Travel Expenses - 3010 Bank loan interest 13105 19564 Donations (see note 8) 5424 6220 Bank charges and interest 1129 7964 Office expenses 1396 - Postage, printing and stationery 365 1385 Subscriptions 1702 3945 Training Course Fees 90 943 Telephone and internet costs 421 2009 Legal fees and professional fees - 11487 Accountancy fees 6078 4500 Depreciation - fixtures and fittings 2967 2541 - music and other equipment 27752 734 - office equipment 3849 2506 __ _ £216183 £169933 Accountancy fees are split between; Payroll and Bookkeeping services 3878 2500 Independent Examination fees 2200 2000 _ £6028 £4500 |
Charitable Expenses 2021 2020 Ministerial expenses 4230 401 Evangelistic literature 1243 445 Gas and electricity 11515 10232 Rates (11) 2439 Insurance 2676 2699 Repairs and maintenance 15004 6933 Salaries 114474 79958 Music and audio/CD, tapes and DVDs 1067 - Church functions/events 1707 18 Travel Expenses - 3010 Bank loan interest 13105 19564 Donations (see note 8) 5424 6220 Bank charges and interest 1129 7964 Office expenses 1396 - Postage, printing and stationery 365 1385 Subscriptions 1702 3945 Training Course Fees 90 943 Telephone and internet costs 421 2009 Legal fees and professional fees - 11487 Accountancy fees 6078 4500 Depreciation - fixtures and fittings 2967 2541 - music and other equipment 27752 734 - office equipment 3849 2506 __ _ £216183 £169933 Accountancy fees are split between; Payroll and Bookkeeping services 3878 2500 Independent Examination fees 2200 2000 _ £6028 £4500 |
|---|---|---|---|
| 2500 2000 _ £4500 ___ |
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
| 3. | Staff Numbers and Costs 2021 2020 Salaries 128033 110021 Social Security Costs 15232 12769 Less: Employment Allowance (4000) (4000) Pension Contributions 2638 2627 JRS Grants Received (27429) (41459) __ _ £114474 £79958 Average number of employees 2 2 _ ____ |
|---|---|
One of the two employees (P Efstathiou) is a trustee and her remuneration was £62525 (2020: £55052). She receives remuneration for her role as Senior Pastor and not for her role as a trustee.
The number of employees who received total employee benefits (excluding employer pensions costs) of more than £60,000 is as follows:
| £60,001 - £70,000 | 2021 Number 2 ____ |
2020 Number |
2020 |
|---|---|---|---|
| 0 ____ |
The total amount of remuneration benefits for trustees and key management personnel during the year was £130671 (2020: £112648).
| Trustees’ reimbursed expenses were: | 2021 | 2020 |
|---|---|---|
| A Sotiriou | 7598 | 420 |
| M Constantinou | 11995 | 12077 |
| _____ | _____ | |
| £19593 _____ |
£12497 _____ |
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 2021
| 4. | Fixed Assets Cost As at 1 January 2021 Additions Revaluations Balance at 31 December 2021 Depreciation At 1 January 2021 Charge for Year Balance at 31 December 2021 Net Book Value At 31 December 2021 Net Book Value At 31 December 2020 |
Freehold Church Building 1284197 - 73199 _ 1357396 _ - - __ - _ 1357396 _ 1284197 ____ |
Office Equipment 23521 6986 - _ 30507 17677 3849 21526 _ 8981 5844 |
Fixtures & Fittings 217859 3960 - __ 221819 _ 211929 2967 214896 6923 5930 ___ |
Music & Other Equipment Total 86488 £1612065 90794 101740 - 73199 __ _ 177282 £1787004 _ _ 84776 £314382 27752 34568 _ 112528 £348950 _ 64754 £1438054 _ 1712 £1297683 ____ |
Total |
|---|---|---|---|---|---|---|
The Freehold Church building was revalued by the trustees as at 31 December 2021 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 2021 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 2021 was £806691 (2020: £806691).
| 5. | Debtors 2021 2020 Trade Debtors 4552 3880 Charitable Loan (see note 9) 1050 1050 Gift Aid Tax Recoverable 4806 5227 Other Debtor 100 4334 Prepayments 244 317 _ £10752 £14698 __ _____ |
|---|---|
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
| 6. | Creditors– Amounts Falling Due Within One Year 2021 2020 Due to HM Revenue & Customs 6769 3412 Accruals 4075 4030 Nursery Rental Deposit 6250 6250 Nursery Rent in Advance 3334 3334 Wages Owing 589 587 Pension Contributions 587 584 Bank Loan 17340 18594 _ £38944 £36791 __ _____ |
|---|---|
| 7 | Creditors– Amounts Falling Due After One Year Unity Bank Loan |
2021 412613 ______ |
2020 428186 ______ |
|---|---|---|---|
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 Estonia Church Amazing Grace Ministries International Reconciliation International Overseas Support Visiting Ministry Meal for Homeless at Easter Covid Support Funeral Cost Support |
2021 2020 1000 - 100 - 150 - 424 - 750 200 1500 - 1500 4520 - 1500 _ £5424 £6220 __ ____ |
|---|---|---|
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 2021 £1050 was outstanding (2020: £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 (2020: £12000).
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APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
9. Related Party Transactions (Continued)
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 £26668 (2020: £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 (2020: £6120) from Ethical Financial Planning Limited. This is a company controlled by trustee, A Sotiriou.
The Church received total donations from the trustees of £12525 (2020: £15180).
| 10. 11. |
Fund Reconciliation Balance as at 1 January 2021 Unrestricted Funds 594572 Revaluation Reserve 464036 _ _ £1058608 ______ Analysis of Net Assets by Fund Fixed Assets Current Assets Current Liabilities Creditors After More Than One Year |
Income 245801 - __ 245801 ____ |
Balance as at Revaluation 31 December Expenditure Gains 2021 (216183) - 624190 - 73199 537235 __ _ _ (216183) 73199 1161425 Unrestricted Revaluation Total Funds Reserve Funds 900819 537235 1438054 174928 - 174928 (38944) - (38944) (412613) - (412613) _ _ _ 624190 537235 1161425 _ _ ____ |
|---|---|---|---|