Charity registration Number.. 1095786 CHALLENGE COMMUNITY CHURCH Receipts and Payments Accounts For the year ending 31 August 2025
CHALLENGE COMMUNITY CHURCH Financial Statements For the year ending 31 August 2025 Contents Page Trust Information Trustees, Report Independent Examiner's Report to the Trustees Receipts and Payments Account 10 Statement of Assets and Liabilities 11 Notes to the accounts 12-15
CHALLENGE COMMUNITY CHURCH Trust Information Status Challenge Community Church, Hereford, is registered with the Charity Commissioners (No. 1095786) and constituted by a Deed of Trusl dated 19 July 2002. Trustees The Charity is administered by the Truslees, who are at the time of signing this report.. Mr S Sully Mr SWJ Grisman Mr C Over Mr IJ Cracknell Mr JGM ENin Mr FD Enmin Western Counties and South Wales Evangelisation Trust is the custodian trustee of the church premises al 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 Peler's Close Moreton-on-Lugg Hereford HR4 8DW Bankerg Lloyds TSB High Town Hereford HR12AE Page 1
CHALLENGE COMMUNITY CHURCH Trustees, Report For the year ending 31 August 2025 The trustees submit their annual report and financial statements for the year ended 31 August 2025. 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 ils Trust Deed. Object of the charity To advance the Christian faith. in accordance with the Statement of Doctrines and Practices set out in the Schedule appended lo the deed. mainly but not exolusively in the Hereford area. structure, governance and management The charity is ultimately run by the Trustees. The Trustees have the authority to exercise their PDwers 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 lo the Elders of the Church, some of whom are also Trustees. The Elders meet formally twi 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 lake 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 lo 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 own 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 needl,. 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 fulfilmenl of the charitable objectives. There are no upper or lower limits of support. No commitments have been made for long term support. Related parties The Trustees received no remuneration as a result of their office during the year. No Trustee, or other person related lo 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 2025 Faye Robert5 is employed full time by the church as the Outreach and Development Leader. Her contract stipulates one day each week musl be devoted to study, therefore Faye is enrolled on a theological training course at Crosslands Bible College. Evelyn Payne is employed part time 122.5 hours) by the church as the Children and Families Leader. Evelyn started the job on 1st October 2024. 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, the Outreach and Development Leader and the Children and Families Leader. Regular activities continue to run with Sunday services which continue to be livestreamed enabling those that can't make it lo 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 2025. 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 IFFF) has continued lo engage well with families that currently attend other midweek events or the Sunday service and therefore continues to be a good opportunity to develop relationships. We have changed the programme so that we start with games and then our God slot which has become more detailed and focused as we have a theme for the night which we try to tie in with games. songs, talks, quizzes and crafts. We then have a light lea at the end of the evening, followed by tuckshop. Although numbers are inconsistent. we continue to use the time to build good relationships with those who come whilst endeavouring to find new ways to connect with more families. Koffee and Kids has seen a busy year with lots of parentslcarerslchildminders coming in with their kids and we have continued lo develop relationships with them. Evelyn has brought in more stories and teaching, to engage the children bul also the parents. Vve continue lo see families come along to outreach events, our Christmas meal and attend other weeklylmonthly. We continue to run Who Let the Dads Out IWLTDO) monthly for men and their kids. It has been a fruitful ministry as we see families coming in that are linked to other rninistries 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 2025 Marlbrook After School Club continues to be fully subscribed (20 pupils). It has been good to build relationships with the children and to have an impact within the school. We have also made links with Riverside Primary School starting with running a netball club, which led to year 2 lasses joining us for an Easter session. We had three classes of thirty join us to hear the Easter story, sing songs and do an Easter craft. Over the three sessions we welcomed go students, their teachers and support staff and they were very appreciative and impressed with what was delivered. We then welcomed year 1 classes who came to learn about church as part of their RE curriculurn. They also heard a Bible story, sang songs and did a craft. Again we welcomed 90 students across three sessions as well as their teachers and support staff, they too enjoyed their time with us. We continue to run yearly outreach events that are our way to connect with a wider cross section of the community. Our Christmas events included a Family Christmas meal where we served 80 people. with attendees including people from the Ghurch congregation but also families from our different weekly events. Our next Christmas event was Carols on the Green on Hunderton Green. The event was family friendly with short storie5 telling the Christmas nativity with a gospel message to finish. The event was well attended with new faces joining us as well as families from some of our weekly events. We had our Christmas day service which was a family friendly service. It was well attended and a joyful lime to be together and worship. This year we did not run our holiday club at Easter but we continued to run our Easter Trail on the Saturday before Easter. Along the trail kids got to watch clips of the Easter story and they collected story cards to help them remember the story. We then had crafts, refreshments, prizes and games when they made it to church which was the end destination. 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 evenls although less of the older generation. Towards the end of the summer we ran a holiday club for 3 days as part of the counGiI'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. This year the number increased greatly, all the planned spaces booked up and we had to add extra places. In the end we had about 30 children each day. The children really enjoyed themselves, with some booking on again and we had a low rate of no shows compared to other events run under the HAF programme. The council visitor was really impressed with all that we did. We also saw a family join our Sunday service due lo the fun they had at the holiday club. We had our third camping trip for the teens. We did a range of activities and short lalks which were delivered throughout each day focusing on John 15 'What does it mean to follow Jesus., Youth also reqLkested that we meet as a youlhlyoung adults group lo do a Bible study where they came with great questions and they show a real desire to know God and his word more. Page 4
CHALLENGE COMMUNITY CHURCH Trustees, Report (continued) For the year ending 31 August 2025 In September we hosted our second 'At the Movies, where volunteers created all the decorations so that church looked like Willy Wonka's Chocolate Factory. We launched the event at our fun day, which we advertised on Your Herefordshire Facebook page which saw greater interactions than our usual leaflet drops. We also brought in golden lickets where people found tickets and won prizes. We then ran At the Movies series for three weeks, using three secular films. Each week we used One the of the filrns and took clips from it which we then used to highlight God's truth and the Gospel message. It was a great series to reconnect with people that had slopped attending on a Sunday. 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 services 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 adding a half day of prayer in September and also running our Fun Day in September. We will h05t Counties Life Exhibition in October and run Carols on the Green at Christmas, which will also include a Christmas party beforehand aimed at the kids so that we can encourage more people to slay for Carols on the Green. We hope to repeal our summer events including the holiday club and summer camp for the teens. During the year we want lo 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 team have decided to begin 'The Vine Project. which will be a group of ten people from the church who will work together to shape our ministry culture around disciple-making. The team has been formed and are looking forward to beginning in September. It will be a two-year jOL¢rney where we work through five phases.. Phase 1.. Sharpen your conviction o Why make disciples? o What is a disciple? How are disciples made? o Who makes disciples? Where lo make disciples? Phase 2.. Reform your personal culture Phase 3.. Loving, honest evaluation Phase 4.. Innovate and implement Phase 5.. Momentum We believe Challenge does a lot of good things but to be more effective for God we need to ensure that everything we do is connected to the vine and we believe this project will help us to focus in on what we do well and what we need lo develop and change. Page 5
CHALLENGE COMMUNITY CHURCH Trustees, Report {continued) For the year ending 31 August 2025 Publlc benefit statement Identifiable Benefits, related to the aims of the charity Through the regular worship & prayer meetings, Bible studies, children's clubs, social aclion 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 and other regular attendees, anyone is welcome to attend appropriate events without restriction. We seek to be available to all in the community. The Trustees consider that they have complied with their duties under the Charities Act 2011 10 have due regard to public benefit guidance published by the Charities Commission. Reserves policy It was agreed at the Trustees meeting on 9 July 2025 to aim lo hold reserves in the General Fund equivalent to three months expenditure (approx. £16,500) 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 thal it is still appropriate. Reserves are currently higher than this due to the need lo hold a balance to meet an anticipaled 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 rotalional 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 8 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 maintenance- promoting the need to consider health and safety during activities. Results and financial review The financial statements for the year to 31 August 2025 have been prepared on a Receipts and Payments basis. Page 6
CHALLENGE COMMUNITY CHURCH Trustees, Report {continued) For the year ending 31 August 2025 Nel movement of funds for the Church was a total decrease of £10,474 for the year. This is made up of a £10,462 decrease on the General Fund, and a £12 decrease with respect lo restricted funds. In light of the investment in a children's worker a general fund deficit was anticipated and approved on the basis that we had built up sufficient reserves to cover any shortfalls in income in the early years of this commitment. The General Fund received income of £62,037 (2024 £71,139), this has arisen due to a small decrease in giving from members, less tax recovered on giving and a decrease in receipts from church activities. The General Fund expenditure was £70,199 12024 £63,047) which was a 11,3 % increase from last year. The main reason for this was that the church took on a children's worker during the year which lead to an increase in staff wages. During the year there were no building improvements or purchase of new equipment. The main transfer between funds was £2,300 from the General Fund to the Mission Fund. In the light of reduced cash Collections for the Mission Fund, we supplement gifts to the missionaries we support. The balance on the general fund at the end Df the year was £24,003. This is a little higher than our reserves policy but these will potentially be needed to fund Ihe aniticpated deficit for the coming year as the church continues to grow income to cover the higher level of operating costs. The Restricted Funds showed incoming resources (received or transferred) of £9,970, which are shown in more detail in note 8. £9,686 of grants were made from the Mission Fund during the year to the mission works that the church supports (see note 5}. Therefore in total 13.90/0 of the church income was gifted to missionary works during the year. At the year end the Mission Fund shows a surplus of £1,31g which will be distributed in the coming year. The Storehouse Fund continues to be active with income in the form of gifts received of £75 and expenditure of £296, leaving a balance of £466 at the year end. These accounts only reflect the financial gifts to the Storehouse Fund and how they were spent. 11 was not practical to value and record in these accaunls the provisions that are given by members and passed on to those in need. Total restricted funds carried foward are £1.785. Al 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. Page 7
CHALLENGE COMMUNITY CHURCH Trustees, Report (continued) Objectives and activities 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 receipls of the Charity 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 concern 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 lime the financial position of the Charity and enable them to ensure that the accounts comply wilh 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 Gurrent statutory requirements and those of the Charity's Trust Deed. Signed for and on behalf of the Trustees of Challenge Community Church SINJ Grisman Page 8
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 2025, which are set out on pages g 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 144121 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., lo follow the procedures laid down in the General Directions given by the Charity Commission {under section14515)(bl 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 accordan with the General Directions given by the Charity Commissioners. An examination includes a review of the accoLsnling 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 examinerfs 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.. lo keep accounting records in accordance 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 lo enable a proper understanding of the accounts to be reached. 18 In(iependent Èxaminer Mr PA Stuffins Redlands Ballingham Herefordshire HR2 6NH Page 9
CHALLENGE COMMUNITY CHURCH Receipts and Payments Account For the year ending 31 August 2025 Total Funds Total Funds General Deslg- nated Funds Rest- ricted Funds Fund 2025 2024 Note Receipts Voluntary Receipls Regular giving from members Tax effective giving Collections Income Tax recovered 40,574 5,608 11,654 6,431 592 647 47,005 6,200 12,301 48,902 6,777 12,073 Other voluntary receipts Receipts from church activities Rent received Grants received Investment income Total income 2,158 900 860 283 2,158 900 860 283 7,670 69,707 5,218 2,790 525 395 62.037 76,680 Payments Costs of generating funds Church activities Grants payable {mission gifts) 69,154 1,045 70,199 296 69,450 9686 10,731 9,982 80,181 56,064 7,060 63,124 7,457 Purchase of new equipment Building improvements Total payments 70,199 9,982 80,181 70,581 Excess Receipts over Payments 18.162} (2,312) (10,474) 6,099 Transfers between funds 6,8,9 (2,300) 2,300 Net movement on funds (10,462} 112) (10,474) 6,099 Funds brought forward 34.465 2,282 1,797 38,544 32,445 Funds carried forward 24,003 2,282 1,785 28,070 38,544 Page 10
CHALLENGE COMMUNITY CHURCH ststement of Assets and Liabilities As at 31 August 2025 2025 2024 Note Fixed assets Premises at 40 Be5mont Road, Hereford Fixtures and fittings Equipment 423,023 6,874 3,227 433,124 423,023 8,446 4,273 435,742 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 3,040 25,017 13 2,111 36,000 13 420 28,070 38,544 Signed for and on behalf of the Trustees of Challenge Community Church VVJ Grisman Page11
CHALLENGE COMMUNITY CHURCH Notes to the accounts For the year ending 31 August 2025 1 Accountlng Policies The principal accounting policies are summarised below. The accounting policies have been applied consislenlly throughout the year and in the preceding year. Basis of accounting The financial slalements are prepared under the historical cost convention, and using the ReIpts and Payments basis. Fund accountlng The church maintains various types of funds as follows.. RestrFcled Funds Reslricled Funds represent gifts received for specrfic purposes. Challenge Community Church has two such funds. The Mission Fund represents monies given lo 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 ol ils financial year. The Storehouse Fund represents monies given lo fund of people in the local community. mainly in the form of food parcels. The beneficiaries are brought lo our attention by local Social services. Design8ted Funds Designated Funds are amounts that have been pul aside out of unreslricled funds at the discretion of the trustees. Challenge Community Church has one such fund. The Projtscl Fund has been sel up to ring fence some larger one off gifts lo the church. The Trustees wish these funds lo be used for specific evangelistic projects that we would normally find difficult lo fund from regular giving or lo release lo general funds in a planned way. Unrestricted Funds The General Fund represents unrestricted income that is expendable al the discretion of the Trustees in the furtherance of the objects of the charity. Fixed assets Westem Counties and South Wales Evangelisalion Trust is the Custodian Trustee of the church property al 40 Belmont Road. Hereford, HR2 7 JW. The £423,023 premises costs shown in the Slalemenl of Assets and Liabilities represent the purchase and refurbishment costs of these prnISes and continues lo be an asset of Challenge Community Church under this arrangement. Equipment, fixtures and fittings are recorded on the slalement of assets and liabilities al cost less an eslimaled decrease in value. Page 12
CHALLENGE COMMUNITY CHURCH Note5 to the accounts For the year ending 31 August 2025 2 Analysls of Restricted Fund Receipts Bulldlng Mlssion Store- house Fund 2025 2024 Fund Fund Total Total Receipts from donors Tax effective giving Collections Income Tax recovered Total in¢om¢ 6,431 592 572 7,595 6,431 592 647 7,670 4,375 777 389 75 75 S,541 3 Analy$ls of General Fund payments - Church Activities 2025 2024 Wages and expenses Bible College Speaker expenses Evangelism and outreach costs Ministry expenditure Running costs Repairs 44,615 3,708 456 1,948 2,997 4,142 4,103 7.185 69,154 28,649 3,510 314 4,235 2,727 6,751 8.293 55,590 4 Analy$l$ of Re8tricted Fund Paym¢nt$ Hereford Community Grant Fund Ml$slon 5tore- hou8e Fund 2025 2024 Fund Total Total Church activities Ministry expenditure Running Costs Rep8irs 296 296 474 296 296 9.686 9,982 474 Grants payable (see note Sl 9.686 296 7,534 Page 13
CHALLENGE COMMUNITY CHURCH Notes to the accounts For the year endlng 31 August 2025 5 Grant8 payable General Fund Mi8SIOTI Fund 2025 2024 Barn Fe51 Counties Close House Ear Aid Nepal Esther Pri Good News for Everyone Joel and Emily Thibaull Project India Solomon Nathaniel Tear Fund Three Counties Show Tough Talk Vennlure Ukraine Other grants 350 1,600 355 350 1,6DO 355 300 400 476 375 300 2,770 545 1,620 390 300 400 476 375 300 2.770 350 1,200 538 300 812 545 300 350 1,200 350 1.200 1,51D 350 1,200 1,510 200 10,731 200 1,045 9.686 7.060 6 Transfers betwoon funds £2,300 was transferred from the General Fund to the Mission Fund lo help meet our ommitmenls lo the missionaries we supported in the year. 7 Relatod party tran8aceions Elders and their spouses have clsimed reimbursement, from time to time, foi sundry expenditure incurred in relation lo church 8¢1ivilies. Page 14
CHALLENGE COMMUNITY CHURCH Notes to the accounts For the year ending 31 August 2025 8 Analysis of restrlctod funds Misslon Store- house Fund Total Fund Balance brought forward 1,110 687 1.797 Receipts Payments Transfers Inlloull 7,595 19,6861 2,300 75 1296} 7,670 19,9821 2,300 Balance carried forward 1,319 466 1,785 9 Analysls of designated funds Project Fund Total Balance brought forward 2.282 2,282 ReiptS Payments Transfers inlloull Balance carried forward 2,282 2.282 Page 15