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2022-12-31-accounts

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

ACCOUNTS AND ANNUAL REPORT

FOR THE YEAR ENDED

31 DECEMBER 2022

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 2022

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

- 1 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 December 2022.

OBJECTIVES

The objectives of the Charity are:

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: -

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:-

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.

We resumed our easter drama which was a huge success.

The Church continues to build a strong relationship with Angel Place Nursery Ltd. The income stream of the Church was unaffected due to member donations increasing.

Ixthus Church Council (ICC) Events (All held at ACC & via live stream)

Other Events – Bible Diploma Course at ACC

- 2 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

TRUSTEES REPORT (CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2022

ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE (Continued)

On-line discipleship

We held several on-line discipleships throughout the year with over 30 people attending, concluding with a fellowship meal.

Plans for 2023

FINANCIAL REVIEW

Income increased during the year to £252,282 from £245,801. Expenditure increased during the year from £216,183 to £261,871, which means that this year there has been a deficit of £3,589 (2021 surplus: £29,618).

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.

- 3 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

TRUSTEES REPORT (CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2022

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.

- 4 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

TRUSTEES REPORT (CONT’D) FOR THE YEAR ENDED 31 DECEMBER 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

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.

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 6 March 2023 and signed on their behalf by:

………………………………….

P Efstathiou

- 5 -

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 2022 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:

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:

  1. which gives me reasonable cause to believe that, in any material respect, the requirements:

  2. to keep proper accounting records in accordance with section 130 of the Charities Act; and

  3. to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act;

has not met; or

  1. 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

6 March 2023

- 6 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

INCOME
Donations and legacies
Donations
Gift Aid tax recoverable
Income from charitable activities
Hall hire
IXTHUS
Income from Investments
Bank Interest
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
2022
2022
2021
177745
177745
170052
29600
29600
26716
41502
41502
40018
9259
9259
9015
176
176
-
_
_
_
£258282
£258282
£245801
_
_
_
2
261871
261871
216183
__
_

£261871
£261871
£216183
_
_
_
(3589)
(3589)
29618
4
105877
105877
73199



£102288
£102288
£102817
_
_
_
1161425
1161425
1058608
_
_
_
£1263713
£1263713
£1161425
_
_
_
expenditure:
2022
2021
-
-
-
90794
13238
10946


£13238
£101740

___		 Total
Funds
2021
170052
26716
40018
9015
-
_
£245801
_		 Total
Funds
2021
170052
26716
40018
9015
-
_
£245801
_
216183
__
£216183
_____
29618
73199
__
£102817
_____
2021
-
90794
10946
__
£101740
____		 2021

- 7 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

BALANCE SHEET AS AT 31 DECEMBER 2022


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
2022
2021
4
1528999
1438054
5
8672
10752
167786
164176
_

176458
174928

_
6
40725
38944


135733
135984
_
_
1664732
1574038
_
_
7
401019
412613
_
_
£1263713
£1161425
_
_
10
620601
624190
10
643112
537235
__
_
£1263713
£1161425

___

Approved by the trustees on 6 March 2023 and signed on their behalf by:

……………………………………

M Constantinou (Trustee)

- 8 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

1. Accounting Policies

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.

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.

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.

- 9 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2. Charitable Expenses
2022
2021
Advertising
7152
-
Ministerial expenses
1982
4230
Evangelistic literature
1555
1243
Gas and electricity
7676
11515
Rates
2460
(11)
Insurance
2987
2676
Repairs and maintenance
12565
15004
Salaries
164170
114474
Music and audio/CD, tapes and DVDs
140
1067
Church functions/events
2376
1707
Travel Expenses
1015
-
Bank loan interest
18239
13105
Donations (see note 8)
822
5424
Bank charges and interest
1122
1129
Office expenses
145
1396
Postage, printing and stationery
1091
365
Subscriptions
1504
1702
Training Course Fees
-
90
Telephone and internet costs
1107
421
Legal fees and professional fees
169
-
Accountancy fees
5424
6078
Depreciation - fixtures and fittings
2078
2967
- music and other equipment
19426
27752
- office equipment
6666
3849
__
_
£261871
£216183


Accountancy fees are split between;
Payroll and Bookkeeping services
3624
3878
Independent Examination fees
1800
2200

_
£5424
£6028

- 10 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

3. Staff Numbers and Costs
2022
2021
Salaries
147752
128033
Social Security Costs
18776
15232
Less: Employment Allowance
(5000)
(4000)
Pension Contributions
2642
2638
JRS Grants Received
-
(27429)
__
_
£164170
£114474


Average number of employees
2
2
_
____

One of the two employees (P Efstathiou) is a trustee and her remuneration was £73294 (2021: £62525). 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
£70,001 - £80,000		 2022
Number
-
2
____		 2021
Number		 2021
2
-
____

The total amount of remuneration benefits for trustees and key management personnel during the year was £150394 (2021: £130671).

- 11 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

4. Fixed Assets
Freehold
Church
Building
Cost
As at 1 January 2022
1357396
Additions
-
Revaluations
105877
_
Balance at 31 December 2022
£1463273
_
Depreciation
At 1 January 2022
-
Charge for Year
-
__
Balance at 31 December 2022
£-
_
Net Book Value
At 31 December 2022
£1463273
_
Net Book Value
At 31 December 2021
£1357396
____		 Office
Equipment
30507
13238
-
_
£43745

21526
6666

£28192
_
£15553

£8981
 Fixtures
& Fittings
221819
-
-
__
£221819
_
214896
2078

£216974

£4845

£6923
___		 Music &
Other
Equipment
Total
177282
1787004
-
13238
-
105877
__
_
£177282
£1906119
_
_
112528
348950
19426
28170

_
£131954
£377120

_
£45328
£1528999

_
£64754
£1438054

____		 Total

The Freehold Church building was revalued by the trustees as at 31 December 2022 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 2022 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 2022 was £806691 (2021: £806691).

5. Debtors
Trade Debtors
Charitable Loan (see note 9)
Gift Aid Tax Recoverable
Other Debtor
Prepayments		 2022
2021
898
4552
1050
1050
6359
4806
100
100
265
244
_

£8672
£10752
__
_____

- 12 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

6. Creditors– Amounts Falling Due Within One Year
2022
2021
Due to HM Revenue & Customs
11220
6769
Accruals
3402
4075
Nursery Rental Deposit
6250
6250
Nursery Rent in Advance
3334
3334
Wages Owing
589
589
Pension Contributions
587
587
Bank Loan
15343
17340
_

£40725
£38944
__
_____
7 Creditors– Amounts Falling Due After One Year
2022
2021
Unity Bank Loan
£401019
£412613
__
____

The Unity Bank Loan is being repaid over 20 years by monthly repayments of £3,139.30. 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
Food Hampers at Christmas
Churches Together
2022
2021
-
1000
-
100
-
150
457
424
150
750
-
1500
-
1500
165
-
50
-
_
__
£822
£5424
_
_

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 2022 £1050 was outstanding (2021: £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 £1000 in rent (2021: £12000).

- 13 -

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 £40002 (2021: £26668). 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 (2021: £6120) from Ethical Financial Planning Limited. This is a company controlled by trustee, A Sotiriou.

The Church received total donations from the trustees of £11640 (2021: £12525).

10. Fund Reconciliation
Balance as at
1 January
2022
Income
Unrestricted Funds
624190
258282
Revaluation Reserve
537235
-
_
_
£1161425
£258282
__
____		 Balance as at
Revaluation
31 December
Expenditure
Gains
2022
(261871)
-
620601
-
105877
643112
__
_
_
£(261871)
£105877
£1263713


___
11. Analysis of Net Assets by Fund
Unrestricted
Revaluation
Total
Funds
Reserve
Funds
Fixed Assets
885887
643112
1528999
Current Assets
176458
-
176458
Current Liabilities
(40725)
-
(40725)
Creditors After More Than One Year
(401019)
-
(401019)
_
_
_
£620601
£643112
£1263713
_
_
_

Our Ref DRG/APO 001

PRIVATE & CONFIDENTIAL

M Constantinou Esq 26 Oakleigh Crescent Whetstone London N20 0BS

2023

Dear Marios

APOSTOLIC CHRISTIAN CHURCH (SHEEPFOLD)

I enclose two copies (one bound and one unbound) of the accounts for the year ended 31 December 2022.

Please let me know if you need any further copies. In the meantime, I enclose a note of our fees. This fee note has been covered by the monthly standing order payments of £515 and there is a credit balance of £3019.25 to be carried forward against future invoices.

Yours sincerely

D R Gradon MA FCA for Cound & Co LLP