Charity registration Number: 1095786 CHALLENGE COMMUNITY CHURCH Receipts and Payments Accounts For the year ending 31 August 2024
CHALLENGE COMMUNITY CHURCH Financial Statsments For the year ending 31 August 2024 Contents Page Trust Information Trustees, Report Independent Examinerfs Report to the Trustees Receipts and Payments Account Statement of Assets and Liabilities 10 Notes to the accounts 11-14
CHALLENGE COMMUNITY CHURCH Trust Information Status Challenge Community Church, Hereford, is registered with the Charity Commissioners (No. 1095786) and Constituted by a Deed of Trust dated 19 July 2002. Trustees The Charity is administered by the Trustees, who are at the time of signing this report: Mr S Sully Mr SWJ Grisman Mr C Over Mr IJ Cracknell Mr JGM Erwin Mr FD Erwin Westem Counties and South Wales Evangelisation Trust is the custodian trustee of the church premises at 40 Belmont Road, Hereford. Elders Mr S Sully Mr M Roberts Mr FD Erwin Outreach and development leader Ms F Roberts Church Office 40 Belmont Road Hereford HR2 7JW Registered Office 131 St Petevs Close Moreton-on-Lugg Hereford HR4 8DW Bankers Lloyds TSB High Town Hereford HR124E Page 1
CHALLENGE COMMUNITY CHURCH Trustees, Report For the year ending 31 August 2024 The trustees submit their annual report and financial statements for the year ended 31 August 2024. The trustees have adopted The Charities (Accounts and Reports) Regulations 2008 in preparing their annual report. The financial statements have been prepared in accordance with the accounting policies set out on page 11, and comply with the charity's governing documentation, The Charities Act 2011 and Charity Commission Guidance and notes. Constitution The charity is an unincorporated charity and is govemed by its Trust Deed. Object of the charity To advance the Christian faith, in accordan with the Statement of Doctrines and Practices set out in the Schedule appended to the deed, mainly but not exclusively in the Hereford area. Structure, governance and management The charity is ultimately run by the Trustees. The Trustees have the authorÉty to exercise their powers to further the objects of the charity. The Trustees meet at least once a year but delegate the day to day decision making on the running of the Church to the Elders of the Church. some of whom are also Trustees. The Elders meet fomally twice a month to consider the management and pastoral needs of the fellowship. The Elders have taken collective responsibility for the pastoral work and Faye Roberts is the Outreach and Development Leader. Every future Trustee shall be appointed by a resolution of Trustees passed at a special meeting. Training is available for Trustees as the need arises. The Elders take responsibility for the management of risk and have set up a team to identify, assess and mitigate areas of risk. Objectives and activities The church meets at 40, Belmont Rd. Hereford. Our objective is to reach out to people in the surrounding community, witness for, teach about. and demonstrate the love of, Jesus Christ and trust and pray that He becomes their ovm personal saviour. This is undertaken through weekly meetings for teaching and worship. specific evangelistic and outreach events,. The Storehouse Ministry (provision of foodstuffs to people in desperate need)", Koffee and Kids; Who Let The Dads Out,. Friday Family Fun; coffee morning: and various children's and youth ministries. Gifts to external organisations and individuals are considered by the Elders from time to time on the basis of need and fulfilment of the charitable objectives. There are no upper or lower limits of support. No commitments have been made for long tenn support. Related parties The Trustees received no remuneration as a result of their Offi during the year. No Trustee, or other person related to the charity, apart from as detailed in note 7, had any personal interest in any contract or transaction entered into by the charity during the year. Review of developments The Church is led by Elders" Steve Sully. Foster Erwin. and Malcolm Roberts. Page 2
CHALLENGE COMMUNITY CHURCH Trustees, Report (continued) For the year ending 31 August 2024 Faye Roberts is employed by the church as the Outreach and Development Leader. Previously employed on a part time basis, Faye's contract has now been extended to full time hours. Her contract stipulates one day each week must be devoted to study. therefore Faye is enrolled on a theological training course at Crosslands Bible College. The Elders, along with the Outreach and Development Leader, meet twice each month, once for regular business and once for prayer. In addition, the Elders are also supported by volunteer Ministry Leaders and the Outreach and Development Leader. Regular activities continue to run with Sunday services which Gontinue to be livestreamed enabling those that can't make it to church to access our services weekly. We have continued to see an increased number of families attending on a Sunday and they have started to become more involved in the work we are doing as they volunteer in different areas of the church. We have been meeting regularly as a church for prayer meetings - three times a month including a half day of prayer in January. Monthly prayer meetings include a Saturday morning, a Tuesday evening and an evening prayer walk. Our half day of prayer was led by a variety of church members and was well attended and gave us a refreshing start to 2024. Life groups continue to run and we have encouraged people to be a part of these. We currently have three groups and they follow their own plans, although through the year we also have series that offer life group material to develop Sunday's teaching and application. Friday Family Fun (FFF) has continued to engage well with families that currently attend other midweek events or the Sunday seniice and therefore continues to be a good opportunity to develop relationships. We have changed the activities, which has seen the kids doing more with their families and it has been a good opportunity for leaders to get alongside families and play games with them, enhancing the opportunities for conversation. We continue to include a 'God slot, which can be difficult within the setting as we try to get everyone's attention including parentsl We are also seeing more of the families and young people involved in helping as they lead the activities or help tidy up afteNrfards and set up for the Sunday service. We have continued to take FFF outside during the summer months so that we can be a witness within the heart of the community. Koffee and Kids has seen a busy year with lots of parentslcarerslchildminders coming in with their kids and we have continued to develop relationships with them. We have begun more crafts with a faith aspect, maybe just a verse attached, colouring sheets with simple verses and singing Christian kids songs. We have also seen some of the families come along to outreach events, our Christmas meal and attend other weeklylmonthly events. We continue to run Who Let the Dads Out (WLTDO) monthly for men and their kids. It has been a fruitful ministry as we see families coming in that are linked to other ministries but also new families as well. It has been encouraging to see the dads that attend take on more ownership of the event, as they help lead in the kitchen or get alongside new dadslcarers and encourage them to attend other events. The men continue to build relationship through men's events which also includes their kids as they go golfing or bowling. Page 3
CHALLENGE COMMUNITY CHURCH Trustees. Report {continued) For the year ending 31 August 2024 After School Club continues to be fully subscribed (20 pupils) and on average 17 attending each week. It has been good to build relationships with the children and to have an impact within the school. The group also prepared a short play and Christmas song to perform at our Christmas event - Carols on the Green. We continue to run yearly outreach events that are our way to connect with a wider cross section of the community. We ran Alpha again during the autumn and saw people from the church attend who are not yet Christians. It was an encouraging time together to see people discover more about Jesus. During October we welcomed Counties Lrfe Exhibition, where we invited Primary schools to bring their year 5&6 pupils to come and find out who Jesus is. As always, the reSoUrS used were brilliant and those that attended had a good time and we had positive feedback from pupils and staff that attended. There were several gaps in the timetable, and we will seek to avoid this in two years time when we run the Life Exhibition again. On 31st October we ran our Light Party to provide children with a safe aernatIVe at Halloween. We ran this on Hunderton Green al the heart of the community as we brought the light of Jesus to Hunderton. This year it was quieter than the previous year but great to see new faces from the community as well as families from the different ministries we run. Our Christmas events included a Family Christmas meal where we served 80 people, with attendees including people from the church congregation but also families from our different weekly events. Our next Christmas event was Carols on the Green on Hunderton Green. We had three nativity characters share the Christmas story with us in a fun, discussion style way, which made it more accessible and engaging for all ages. We saw a good turnout. with a couple of families from our After School club attending. At Easter we ran a holiday club for 3 days as part of the council's 'Holiday Activities Food Programme, (HAF) who gave us a grant to run our club. The grant supports free school meal children to attend and those that aren't on free school meals were charged £2 a day. We saw a lower number than usual attending the club due to a large range of activities offered by the council. Therefore next year we will look at delivering it at a different time of the year when there is less competition. However, those that came enjoyed it and the parentslcarers and the council representative were very happy with the programme. On the back of the holiday club we ran our Easter Trail which took the families along a route to hear the Easter story at various stations along the way. We used resources from Gochatter which told the different characters, stories using Lego. At the end of the trail there were refreshments and prizes. At the church we gave away to each child an Easter egg as well as an age appropriate Easter story book. We saw lots of families join in, including those that we interact with across ministries as well as some new ones too. Feedback given was that this was the best one yet! Page 4
CHALLENGE COMMUNITY CHURCH Trustees. Report (continued) For the year ending 31 August 2024 During the summer we ran our Sunday series alongside our summer events. There were three weeks of different activities after the service. We saw a good number of families interacting with the events although less of the older generation. After the success of our first camping trip with the teens last year we organised another camp for them. We did a range of activities and delivered short talks throughout each day around being made in the image of God. During the summer we started preparations for our next At the Movies event which will run in September. Volunteers will work together to create decorations for the church in the theme of 'Willy Wonka's Chocolate Factory,. We have worked closely with Putson Baptist Church (another South Wye church) in delivering an average of 60 food parcels each week to families who are referred to us through schools. social ServIS and other intermediaries. Looking ahead to next year we will be continuing with our weekly ministries. We will develop FFF to make it more accessible for more families, as we are seeing more new families attending. We will be running our Fun Day in September. followed by At the Movies (for three weeks) and Carols on the Green at Christmas. We hope to repeat our summer events including the summer camp for the teens. We will look at running a holiday club but change the time of year when there is less competition. If HAF funding through the council is available then we will apply for a grant. During the year we want to find more ways to interact with our community and build better relationships with other local charities and businesses within the community. We also encourage our members to serve beyond our own church with members volunteering with Vennture, Good News for Everyone, Counties, chaplaincy and other activities. The leadership have decided to appoint a part time Children and Families Leader who will take on the schools work, Koffee and Kids, Kids Church and support with FFF. After advertising the post we successfully appointed Evelyn Payne to the role. This new role will enable Faye (Outreach and Development lead) to focus more on the development aspect of her job role as she focuses on the vision of the church and developing ways to help people move forward in their journey with Christ. Public benefit statement Identifiable Benefrts. related to the aims of the cha17ty Through the regular worship & prayer meetings, Bible studies, children's clubs, social action programmes and personal visitation the Christian Faith is shared and people in the community helped. Individuals have become Christians, had their faith developed and lifestyles impacted. As part of community life families have been supported. Beneficiaries In addition to Church members, families, other regular attendees and friends anyone is welcome to attend appropriate events without restriction. We seek to be available to all in the community. Page 5
CHALLENGE COMMUNITY CHURCH Trustees, Report {continued) For the year ending 31 August 2024 The Trustees consider that they have complied with their duties under the Charities Act 2011 to have due regard to public benefit guidan published by the Charities Commission. Reserves policy It was agreed at the Trustees meeting on 20 May 2024 to aim to hold reserves in the General Fund equivalent to three months expenditure (approx. £11,000) and a base level of reserves of £6,000 (only necessary expenditure below base reserves). The Trustees review this policy from time to time and agree that it is still appropriate. Reserves are currently higher than this due to the need to hold a balance to meet an anticipated shortfall on regular monthly income and expenditure. No limit has been put on the Restricted Funds (Building, Mission, and Storehouse) as these are being held for a specific purpose and spent when the need arises. Risk management policy The operations team have reviewed and updated the risk management policies of the church; when finalised these are passed to the Elders for adoption. The policy is to review the risk assessments on a two year rotational basis. The principal risks currently identified. and strategies for managing those risks are as follows.. Adequate funds to meet commitments. Addressed through the preparation of an annual budget,. regular monitoring of income and expenditure by treasurer. periodic review by Elders at finance meetings. Safeguarding vulnerable adults and children. Addressed through a Safeguarding Officer., Child Protection and Safeguarding policy kept up to date through review and being a member of CCPAS. training. Health and safety on church premises. Addressed through a member being tasked to monitor the condition of premises., fire drills,. regular Maintenan,. promoting the need to consider health and safety during activities. Results and financial review The financial statements for the year to 31 August 2024 have been prepared on a Receipts and Payments basis. Net movement of funds for the Church were a total of £6,099 increase for the year. This is made up of a £4,988 increase on the General Fund, and a £1,111 increase with respect to restricted funds. The General Fund received income of £71.139 {2023 - £62,272) which is an encouraging 14.2 % increase on last year. This has arisen due to an increase in giving from members, increased rent and an increase in receipts from church activities. The General Fund expenditure was £63,047 (2023 - £52,304) which was a 20.5 % increase from last year. Inflationary pressures impacted on the church as we saw increases in staff wages, and utilities., this was offset to a small extent by a decrease in repair costs. We also undertook more evangelism and outreach in the year which included having the Life Exhibition at Challenge. There was £7.457 of expenditure on new equipment including sofas. radio mics and a new projector for the main hall, although the cost was covered by funds raised on a gift day specifically for this expenditure. Page 6
CHALLENGE COMMUNITY CHURCH Trustses. Report (continued) For the year ending 31 August 2024 The main transfers between funds was £3.104 from the General Fund to the Mission Fund to supplement the gift to the missionaries we support, in the light of reduced cash collections. The balance on the general fund at the end of the year was £34.465. This is somewhat higher than our reserves policy but the elders are comfortable with this as they plan to use these funds to help fund the employment of a part time member of staff in the coming year to help run children's work of the church. The Restricted Funds showed incoming reSoUrS (reiVed or transferred) of £8,645, which are shown in more detail in note 8. £8.270 was given or transferred to Mission Fund and was passed on during the year to the mission works that the church supports (see note 5). Therefore in total 9.2 % of the church income was gifted to missionary works during the year. At the year end the Mission Fund shows a surplus of £1,110 which will be distributed in the coming year. The Storehouse Fund continues to be active with income in the form of gifts received of £375 and expenditure of £474. These accounts only reflect the financial gifts to the Storehouse Fund and how they were spent. It was not practical to value and record in these accounts the provisions that are given by members and passed on to those in need. Total restricted funds carried foward At the year end the only designated fund was the 'Project Fund, which had a balance of £2,282. There was no movement in the year. Statement of Trustees responsibilities Charity law requires trustees to prepare accounts for each financial year which state the affairs of the charity and of the payments and receipts of the Chartty for that period. In preparing these accounts, the Trustees are required to: Select suitable accounting policies and then apply them consistently. Prepare the accounts on a going conrn basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Charities Act. They are also responsible for safeguarding the assets of the Charity and hence take reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees confirm that the accounts comply with current statutory requirements and those of the Charity's Trust Deed. Signed for and on behalf of the Trustees of Challenge Community Church Trustee Date Page 7
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CHALLENGE COMMUNITY CHURCH I report on the accounts of the charity for the year ended 31 August 2024. which are set out on pages 9 to 14. 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: examine the accounts under section 145 of the Charities Act; to follow the procedures laid down in the General Directions given by the Charity Commission (under section145(5)(b) of the Charities Act); and to state whether particular matters have come to my attention. Basis of the independent examiner's report My examination was carried out in accordance with the General Directions given by the Charity Commissioners. 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 the 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 my examination. no matter has come to my attention.. which gives me reasonable cause to believe that in any material respect the requirements: to keep accounting records in accordan with section 130 of the Charities Act" and to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the Charities Act have not been met; or to which, in my opinion. attention should be drawn in order to enable a proper understanding of the accounts to be reached. /J r 202f Independent Examiner Date Mr D Hill Jalna. Chapel Lane Bodenham Moor Herefordshire HR1 3HR Page S
CHALLENGE COMMUNITY CHURCH Receipts and Payments Account For the year ending 31 August 2024 Total Funds Total Funds General Desig- nated Funds Rest- ricted Funds Fund 2024 2023 Note Receipts Voluntary ReiptS Regular giving from members Tax effective giving Collections Income Tax recovered 44,527 6.000 11,684 4,375 777 389 48,902 6,777 12,073 46,895 6,752 11,955 Other voluntary receipts ReiptS from church activities Rent received Grants received Investment income Total income 5.218 2.790 525 395 5,218 2.790 525 395 76,680 2,214 1,570 1,020 124 70,530 71,139 5,541 Payments Costs of generating funds Church activities Grants payable (mission gifts) 55,590 474 56,064 7.060 7.060 7,534 63,124 7,457 51,681 11,420 63,101 1,827 55,590 7,457 Purchase of new equipment Building improvements Total payments 63,047 7,534 70,581 64,928 Excess Receipts over Payments 8.092 (1.993) 6,099 5,602 Transfers between funds 6,8,9 (3,104) 3,104 Net movement on funds 4,988 1,111 6,099 5,602 Funds brought fonNard 29,477 2,282 686 32,445 26,843 Funds carried forward 34,465 2,282 1,797 38,544 32.445 Page 9
CHALLENGE COMMUNITY CHURCH Statement of Assets and Liabilities As at 31 August 2024 2024 2023 Note Fixed assets Premises at 40 Belmont Road, Hereford Fixtures and fittings Equipment 423.023 8.446 4.273 435.742 423,023 7,226 3,347 433,596 Western Counties and South Wales Evangelisation Trust is the custodian trustee of the church premises at 40 Belmont Road. Hereford. Cash funds Lloyds Bank Current account Lloyds Bank Deposit account Storehouse petty cash Ignite tuck shop petty cash 2,111 36,000 13 420 3.156 29.023 13 253 38,544 32.445 Signed for and on behalf of the Trustees of Challenge Community Church Date Page 10
CHALLENGE COMMUNITY CHURCH Notes to the accounts For the year ending 31 August 2024 1 Accounting Policies The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the predIng year. Basis of accounting The financial statements are prepared under the historical cost convention, and using the Receipts and Payments basis. Fund accounting The church maintains various types of funds as follows: Restricted Funds Restricted Funds represent gifts received for specific purposes. Challenge Community Church has six such funds. The Mission Fund represents monies given to support missionary works which is reviewed on an annual basis. The church does not enter into commitments to support any given beneficiary beyond the end of its financial year. The Storehouse Fund represents monies given to fund of people in the local community, mainly in the fomi of food parls. The beneficiaries are brought to our attention by local social services. Designated Funds Designated Funds are amounts that have been put aside out of unrestricted funds at the discretion of the trustees. Challenge Community Church has two such funds. The Project Fund has been set up to ring fen some larger one off gifts to the church. The Trustees wish these funds to be used for specific evangelistic projects that we would normally find difficult to fund from regular giving or to release to general funds in a planned way. Unrestricted Funds The General Fund represents unrestricted income that is expendable at the discretion of the Trustees in the furtheran of the objects of the charity. Fixed assets Western Counties and South Wales Evangelisation Trust is the Custodian Trustee of the church property at 40 Belmont Road, Hereford, HR2 7 JW. The £423,023 premises costs shown in the Statement of Assets and Liabilities represent the purchase and refurbishment costs of these premises and continues to be an asset of Challenge Community Church under this arrangement. Equipment, fixtures and fittings are recorded on the statement of assets and liabilities at cost less an estimated decrease in value. Page11
CHALLENGE COMMUNITY CHURCH Notes to the accounts For the year ending 31 August 2024 2 Analysis of Restricted Fund Receipts Building Mission Store- house Fund 2024 2023 Fund Fund Total Total Receipts from donors Tax effective giving Collections Income Tax recovered Total income 4,335 477 354 5,166 40 300 35 375 4,375 777 389 5,541 7,745 274 239 8,258 3 Analysis of General Fund payments - Church Activities 2024 2023 Wages and expenses Bible College Speaker expenses Evangelism and outreach costs Ministry expenditure Running costs Repairs Utilities 28,649 3,510 314 4.235 2,727 6,751 1.111 8,293 55,590 26,461 2,697 75 1,820 3,006 6,670 3,665 5,613 50,007 4 Analysis of Restricted Fund Payments Hereford Community Grant Fund Mission Store- house Fund 2024 2023 Fund Total Total Church activities Ministry expenditure Running costs Repairs 474 474 1,674 474 474 7,060 7,534 1,674 10,950 12,624 Grants payable (see note 5) 7.060 7.060 474 Page 12
CHALLENGE COMMUNITY CHURCH Notes to the accounts For the year ending 31 August 2024 5 Grants payable General Fund Mission Fund 2024 2023 Bodenham Christian Fellov4ship Counties Close House Esther Price Good News for Everyone Joel and Emily Thibault Project India Solomon Nathaniel Three Counties Show Tough Talk Vennture Other grants 150 1,600 300 300 700 300 300 650 300 300 6,200 320 11,420 1,620 390 350 1,200 538 300 812 300 350 1,200 1,620 390 350 1,200 538 300 812 300 350 1,200 7.060 7,060 6 Transfers between funds £3,104 was transferred from the General Fund to the Mission Fund to help meet our commitments to the missionaries we supported in the year. 7 Related party transactions Elders and their spouses have claimed reimbursement, from time to time, for sundry expenditure incurred in relation to church activities. Page 13
CHALLENGE COMMUNITY CHURCH Notes to the accounts For the year ending 31 August 2024 8 Analysis of restrictsd funds Mission Store- house Fund Total Fund Balance brought forward (100) 786 686 Receipts Payments Transfers inl(out) 5,166 (7,060) 3,104 375 (474) 5,541 (7.534) 3,104 Balance carried fonNard 687 1,797 9 Analysis of designated funds Project Fund Total Balance brought forward 2,282 2,282 Receipts Payments Transfers inl(out) Balance carried forward 2,282 2,282 Page 14