## Redeemer Worthing Ltd
Report and Accounts Year ended 31 August 2020
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **REDEEMER WORTHING LTD**
## **CHARITY INFORMATION**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **Directors/Trustees**
## **Company Secretary**
Matthew Sellens Chris James Julian Wray (resigned November 2019) Karen Lyon Stuart Britton (since January 2020) Christine Goodban Stephen Myerscough Matthew Sellens
## **Key Staff**
Alex Beaken Rodney Haggar Joel Tostevin
## **Governing Document**
Memorandum and Articles of Association
**Charity Registration Number** 1096530 **Company Registration Number** 04664258 **Registered Office**
44 Guildbourne Centre Worthing England BN11 1LZ
## **Independent Examiner**
Archie McDowall Stewardship 1 Lamb's Passage London EC1Y 8AB
## **Bankers**
Cafbank Ltd West Malling
|**Contents**|**Page**|
|---|---|
|Charity Information|1|
|Trustees' Annual Report|2-8|
|Independent Examiner's Report|9|
|Statement of Financial Activities|10|
|Balance Sheet|11|
|Cashflow Statement|12|
|Notes to the Accounts|12-20|
|Detailed Statement of Financial Activities with Comparatives|21|
Page 1
## REDEEMER WORTHING LIMITED DIRECTORS’ REPORT 2019-2020
The Directors (regarded as Trustees of the Charity) present their report and unaudited financial statements for the year ended 31 August 2020.
The financial statements comply with current statutory requirements and the Statement of Recommended Practice, Accounting and Reporting by Charities, issued in March 2005.
Redeemer Worthing Limited (previously known as Jubilee Community Church Limited) was incorporated on 12[th] February 2003 as a company limited by guarantee and registered as a charity on 14[th] March 2003. The charity’s name was officially changed to Redeemer Worthing Ltd on 27[th] April 2020 with the approval of Companies House and subsequently the Charity Commission. The charity’s change of name was made at the same time as migrating to an online church model due to the global pandemic and our intention of re planting our church as Redeemer Worthing into the Guildbourne Centre in the centre of the Worthing retail district.
From this point forward in this document, Redeemer Worthing, shall be referred to as ‘ **the Church** ’.
## OUR PURPOSES, AIMS AND PUBLIC BENEFIT
The main areas of charitable activity of the Church are to advance the Christian faith and the provision of relief, education and assistance for persons in conditions of need, hardship or distress. In order to achieve this, the objects of the company are as follows:
- to advance the Christian faith by such means as the Company shall determine from time to time.
- to relieve persons who are in conditions of need, hardship or distress as a result of local or international disaster, or by reason of their social, medical or economic circumstances.
- to educate and assist young persons through their leisure time activities so as to develop their physical, mental and spiritual capacity, that they may grow to full maturity as individuals and members of society, and that their conditions of life may be improved.
- to advance education in family life, in marriage and family relationships, in particular, but not exclusively, by the organisation of courses for the teaching of skills and parenthood.
- to advance Christian religious education and training.
When planning our activities for the year, the Trustees and Members (church directional team) of the charity have considered the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. The review of activities below reflects how we have implemented this through a range of activities, which we consider to be in line with both this guidance and our objectives.
## REVIEW OF THE YEAR’S ACTIVITIES (2019-20)
## CHURCH ACTIVITIES
The Church is continually looking for strategies to bring help not just to its members but also to the local town, the UK and internationally. This report reflects aspects of each of these three components. In each area of activity the Trustees recognise, and are sincerely grateful for, the volunteers who contribute so much to all that happens in the life of the church.
Page 2
## COVID-19 PANDEMIC
The Covid-19 global pandemic of 2020 has, like all businesses and charities in the UK impacted the activities of the church. Until March 23[rd] 2020 the church operated as previous years meeting in Worthing High School and in each others homes for mid week groups.
On the announcement of the national lockdown in March 2020 the church quickly pivoted to an online presence.
- Since the end of March 2020 the church moved to online broadcasts as meetings at Worthing High School were no longer permitted.
- Sunday morning recorded broadcasts on You Tube included Redeemer Kids and Redeemer Online.
-
-
-
- Community groups were set up using video conference platforms such as Zoom.
- Meetings of directors and members were also carried out similarly online.
- A decision was made to instigate the change of name to Redeemer Worthing sooner than planned on Easter Sunday 2020.
- At the time of writing we expect to be meeting in this way for several more months through 2021
- When the law has allowed, the church has met physically for small socially distanced groups in the buildings of other Worthing churches.
## GIVING
Over the year church members have given £364,087 including recovery of tax through Gift Aid. This has been used both for the active ministries of the church and for gifts to other charitable causes both in the UK and internationally.
## CHURCH FAMILY
All are welcome to attend our regular Sunday services and during the year to March 2020 when we could meet physically we had an average of 145 in attendance. In addition church members met midweek as part of the Church network.
We have ministries to a wide range of groups:
- Alpha Course for those interested in learning more about the Christian Faith including for the first time online Alpha courses
- Freedom in Christ courses supporting emotional and spiritual development
- Marriage Preparation courses
- Mental Health workshops to inform leaders of how to understand mental health issues
- Training in prophecy and the use of other spiritual gifts as well as a national training day called Prophetic Connections
Page 3
## DEVELOPMENT OF LEADERSHIP
Training was provided for all small group leaders.
A preaching group was also run in this year to provide training to those gifted in public speaking, preaching and teaching of the bible.
During the year Rodney Haggar took up a sabbatical opportunity for 3 months in Autumn 2019 having served the church so faithfully for 12 years without taking this opportunity before.
## EVANGELISM
Sharing the good news of the gospel is core to our life as a church. Through the Alpha Course, guest services and various other events, opportunity was made for many to hear the gospel. Some found a new faith and some were baptised.
## YOUNG PEOPLE
We value highly the work with all our children on Sunday mornings, whatever their age. Fun activities based on biblical teaching for the younger children and regular teaching for our older children and teens take place. This includes:
- Rainbows – for ages 6 months to 3 years
- Sparklers – for ages 3 to 5.
- Live Wires – for ages 6 to 10
- Encounter – for ages 11-12
- Katalyst – for ages 13-16
Both Encounter and Katalyst met on Saturdays for more social activities and in small groups mid-week
up until March 2020 (pre-Covid).
Following the lockdown our groups for teenagers and young people moved to online groups held on the Zoom platform.
## JUBILEE/REDEEMER TOTS.
This is for babies and pre -school children of church and non- church parents and continued until the first lockdown in March 2020.
COLLEGE AND STUDENTS
## Foundry – for 16-18’s
Foundry Youth Group gives young people the opportunity to experience God, to build solid friendships in the process, and to discover God’s purpose for their lives. It also provides spiritual preparation for those who are going on to University. The group meets monthly for social activities, worship, prayer and discussion.
## STUDENT GROUP – for 18-21+
A student group caters for those attending college or university. The group was born out of the Foundry group and carries similar objectives.
## OVERSEAS MISSION
We continued to be involved with the family of Regions Beyond churches around the world. We have continued to develop links with various churches and projects in Dubai, South Africa and India.
Page 4
## LOCAL MISSION
We have a target of planting 5 new churches over time within a one hour drive of Worthing. These churches will be established from within our church family and operated as autonomous churches whilst sharing the same vision and values. The first of these local church plants was Trinity Church Littlehampton [Trinity], a neighboring town of Worthing. Trinity was established in September 2018 with a team of 30 people mainly originating from the Church.
## WORTHING FOOD BANK
The church is proud to have started the Worthing Food Bank under the auspices of the Trussell Trust and continues operational activities from the church offices while distributing food packages from Worthing Tabernacle.
On the announcement of national lockdown in March 2020 and the onset of business closures, the demand for Foodbank services increased significantly. Worthing Council made the council chambers available for Foodbank food package preparation. The distribution of food packages also changed to a delivery based service rather than collection using volunteer packers and drivers to serve the community. During this time Foodbank also received a grant from Worthing and Adur council services.
## WORTHING CHURCHES NIGHTSHELTER AND SOUP RUN
The church continued to support and help run, together with other Worthing churches, the Homeless Night Shelter through the winter months up till the first lockdown and this will be reviewed again each Autumn, again subject to Covid rules. In conjunction with this, the church was also involved in the Soup Run and continued between lockdowns in accordance with Covid rules.
## FINANCIAL REVIEW
## INCOMING RESOURCES
Total incoming resources for the year decreased from £507,650 in 2019 to £439,589 in 2020. Of this £43,868 including gift aid reclaim was raised for the Guildbourne Centre building project.
## RESOURCES EXPENDITURE
Total resources expended for the year decreased from £436.067 in 2019 to £366,665 in 2020.
## FUNDS AND BALANCE SHEET
The movement in total funds for the year is a net increase of £72,924. At the year end total funds held were £728,051 of which £174,593 are General funds being unrestricted and undesignated. This balance is in line with the Church’s reserves policy.
## PLANS FOR THE COMING YEAR
The key objectives to be addressed during the coming year (2020-21) are:
- to continue to communicate the Christian gospel in a way which is clear and contextually relevant.
- to continue to develop our work in the local community.
Page 5
- to continue to develop our links with work in overseas churches in South Africa, Dubai, Mexico & India through video conferencing platforms.
- On September 13[th] 2020 we signed a long term lease with the owners of the Guildbourne Centre in Worthing for the first floor of the centre to be converted to a permanent meeting venue for the church. The intention will be to realise a multi-use space allowing the church to sublet space to others in order to raise funds for the furthering of the charities objectives.
-
- Conversion works started in September 2020 and are expected to be completed by the end of March 2021.
- Further developing budgeting and reporting processes with specific objectives and plans over the longer term. This will include how the finances of the church are communicated to the wider church membership on an on-going basis.
- The Directional Team of Redeemer will seek to identify and establish a new Eldership team for the church.
## GOVERNANCE AND DIRECTORS
Of the directors set out on page 1 all held office during the whole of the year ended 31 August 2020. The directors are regarded as the trustees of the charity for the purpose of the Charities Act 2011.
The board of directors, who meet four times a year, are responsible in law for implementing the strategic decisions and direction given by the Eldership/Directional Team of the Church. Directors are appointed by the Members at the Annual General Meeting. The Directors may also appoint a director to serve until the next Annual General Meeting, at which time he or she would cease to hold office but would be eligible for election.
The Directors monitor finance, risk management and internal control.
The directors delegate the running of the charity to the Eldership/Directional Team of the Church set out on page 1. The Eldership/Directional Team oversees the achievement of the objectives of the charity, day-to-day operational decisions and the co-ordination and direction of the church’s work. Progress is monitored regularly by the directors.
The directors are members of the church and bring experience and expertise in business, accounting, public sector and charity sector and law. Training is provided to board members as required.
## DIRECTORS’ RESPONSIBILITIES
The directors (who are also Trustees of the Church) are responsible for preparing the Director’s Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Directors (Trustees) to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements and
Page 6
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The directors are responsible for keeping accounting records which disclose with reasonable accuracy, the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## INTERNAL CONTROL AND RISK MANAGEMENT
The directors have overall responsibility for the Church’s system of internal control. Such a system can provide only reasonable and not absolute assurance against errors or frauds. There is a clear delegation of the directors’ authority through the Eldership/Directional Team to the rest of the charity.
The Church operates a planning and budgeting system with an annual budget approved by the board of directors. Significant changes are subject to specific approval. A financial reporting system compares results with the budget on a bi-monthly basis.
The directors are satisfied that systems are in place to monitor, manage and mitigate the Church’s exposure to major risks. They consider that maintaining the Church’s reserves at the policy levels and reviewing internal controls and risks will provide the Church with adequate risk assurance and sufficient resources in the event of adverse conditions. They also recognise that the nature of some of the Church’s work requires active acceptance and management of some risks when undertaking activities to achieve the objectives of the charity.
## RESERVES POLICY
The directors review the charity’s reserves policy regularly in the light of Charity Commission guidance. There are three categories of reserves held.
General funds are undesignated and the charity’s policy is to maintain these at a level of between two to three months of regular church giving income. The year-end reserves figure of £ 60,178 meets this target.
Designated funds arise from the setting aside of some general giving against the identified need to maintain a fund with which to be able to assist members of the church who have a particular need.
Restricted funds arise where gifts are received for specific purposes. Expenditure is distributed in line with these requirements. At 31 January 2021 restricted funds stood at £75,535 reflecting the Church’s expenditure on it’s new home in the Guildbourne Centre
## INVESTMENT AND TREASURY POLICY
In keeping with the reserves policy, funds are maintained to meet foreseeable recurring expenditure. It is not the charity’s general policy to commit to investments. During recent years with a view to the economic situation some investments have been made. No new investments have been made during the year to 31[st] August 2020 however an investment property was sold in October 2019. A remaining set of shares was being held in this financial year, as a result of that asset being given in the form of shares which were sold in September 2019.
## EMPLOYEES
The work of Redeemer Worthing relies on the commitment and hard work of its valued staff. Communication links are maintained through team meetings and other channels. The full and part-time staff during the financial year 2019-20 were:
Page 7
- Alex Beaken – Full time elder
- Rodney Haggar – Full time elder
- Joel Tostevin – Full time elder
- Rachel Tostevin – Part time communications manager
- Val John – Full time business manager
- Julie Denyer – Part time Foodbank manager
- George Sharpe – Part time treasurer
- Kirsty Lyon – Part time website and graphic communication manager
## INDEPENDENT EXAMINER
Archie McDowall, BA CA of Stewardship was appointed independent examiner at the Annual General Meeting and a resolution to re-appoint him will be proposed at the next Annual General Meeting.
Approved by the directors on 19 July 2021 and signed on their behalf by:
## **Matthew Sellens**
Director
Page 8
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF**
## **REDEEMER WORTHING LTD**
## **('the Company')**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2019 on pages 9 to 20 following, which have been prepared on the basis of the accounting policies set out on pages 12 to 14.
## **Responsibilities and basis of report**
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner’s statement**
Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants of Scotland, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Archie McDowall, BA CA Institute of Chartered Accountants of Scotland
28 July 2021
Stewardship 1 Lamb's Passage London EC1Y 8AB
Page 9
## **REDEEMER WORTHING LTD**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Investments
4
Other income
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities
5
**Total expenditure**
**Net gains/(losses) on investments**
**Net income/(expenditure)**
**Transfers between funds**
12
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
12|Unrestricted
Funds
£
301,786
69,761
2,337
373,885
299,220
299,220
-
74,665
(566)
74,099
193,486
267,586|Restricted
Funds
£
62,301
10
3,393
65,704
67,445
67,445
-
(1,742)
566
(1,176)
461,641
460,465|Total
Funds
2020
£
364,087
69,771
5,730
439,589
366,665
366,665
-
72,924
-
72,924
655,127
728,051|Total
Funds
2019
£
454,292
74
53,284|
|---|---|---|---|---|
|||||507,650|
|||||436,067|
|||||436,067|
|||||(21,303)|
|||||50,279
-|
|||||50,279
604,848|
|||||655,127|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing operations.
The statement of financial activities also complies with the requirements for an income and expenditure account required by the Companies Act 2006.
The notes on page 12-20 form part of these accounts.
Page 10
## **REDEEMER WORTHING LTD**
## **BALANCE SHEET**
## **AS AT 31 AUGUST 2020**
|Note
**FIXED ASSETS**
Tangible assets
6
Investments
7
**CURRENT ASSETS**
Stock
8
Debtors
9
Cash at bank and in hand
10
**CREDITORS: Amounts falling**
**due within one year**
11
**Net current assets / (liabilities)**
**Total assets less current liabilities**
**TOTAL NET ASSETS**
**FUND BALANCES**
12
Unrestricted Funds
General funds
Designated funds
Restricted Funds|Unrestricted
Funds
£
(0)
-
(0)
-
7,334
280,831
288,165
(20,579)
267,586
267,585
267,585
174,593
92,993
267,585
-
267,585|Restricted
Funds
£
-
-
-
2,184
-
458,281
460,465
-
460,465
460,465
460,465
-
-
-
460,465
460,465|Total
Funds
2020
£
(0)
-
(0)
2,184
7,334
739,112
748,630
(20,579)
728,051
728,051
728,051
174,593
92,993
267,585
460,465
728,051|Total
Funds
2019
£
65
174,663|
|---|---|---|---|---|
|||||174,728|
|||||6,803
7,853
473,922|
|||||488,578
(8,179)|
|||||480,399|
||||||
|||||655,127|
|||||655,127|
|||||144,361
49,125|
|||||193,486
461,641|
|||||655,127|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2019 in accordance with Section 476 of the Companies Act 2006 however, in accordance with Section 145 of the Charities Act 2011, the accounts have been examined by an independent examiner and their report has been included in these financial statements.
The directors (who are the charitable company's trustees for the purposes of charity law) acknowledge their responsibilities for:
(a) ensuring that the charitable company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its net income or expenditure for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.
The financial statements were approved by the Board of Trustees and were signed on its behalf by:
Matthew Sellens
The notes on page 12-20 form part of these accounts.
Date: 19 July 2021 Charity number: 1096530 Company Number 04664258
Page 11
## **REDEEMER WORTHING LTD**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **CASH FLOW STATEMENT**
|Note
**Cash flows from operating activities:**
**_Net cash provided by (used in) operating activities_**
a
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Proceeds from sale of investments
**_Net cash provided by/(used in) investing activities_**
b
b
**Cash and equivalents at the beginning of the year**
**_Cash and cash equivalents at the end of the year_**
**_Change in cash and equivalents in the reporting period_**|2020
£
20,756
69,771
174,663
244,434
265,191
473,922
739,112|2019
£
78,060|
|---|---|---|
|||74
13,000|
|||13,074|
|||91,134
382,789|
|||473,923|
|**Note a: Reconciliation of net income/(expenditure) to net cash flow from operating activities**
2020
£
72,924
**Adjustments for:**
Depreciation charges and provisions for impairment
65
(Gains)/losses on investments
-
Dividends, interest and rents from investments
(69,771)
(Increase)/decrease in stocks
4,619
(Increase)/decrease in debtors
519
Increase/(decrease) in creditors
12,401
**_Net cash provided by (used in) operating activities_**
20,756
**Note b: Analysis of cash and cash equivalents**
2020
£
Cash at bank with immediate access
738,624
Petty cash
489
**Total cash and cash equivalents**
739,112
**_Net income/(expenditure) for the reporting period (as per the statement of_**
**_financial activities)_**|2019
£
50,279
3,450
21,303
(74)
(1,269)
3,514
856|
|---|---|
||78,060|
||2019
£
473,433
489|
||473,922|
Page 12
## **REDEEMER WORTHING LTD**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **1 Statutory Information**
The charity is a charitable company limited by guarantee and is incorporated in the United Kingdom. The company's registered number and registered office address can be found on the Company Information page.
## **2 Accounting Policies**
These financial statements are prepared on a going concern basis, under the historical cost convention as modified by the revaluation of certain assets, which are measured at fair value through the Statement of Financial Activities.
These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The principles adopted in the preparation of the financial statements are set out below.
## a) Going concern
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements. In making this assessment the trustees have considered the impact of Covid-19 and have concluded that its impact on net income will not be material.
## b) Income
Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations and legacies includes:
- i) Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.
- ii) Donated facilities, services and goods. Goods donated for distribution to beneficiaries are recognised as income when receivable at fair value (being an estimate of the amount it would cost to purchase those items).
Other income comprises primarily conference income relating to 'Gather 19' and also letting income. Gather 19's income was recognised when the conference took place in July 2019.
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
When donated goods, services and facilities are distributed or consumed, an expense in respect of those items is included in the Statement of Financial Activities. At the year end any goods that have not been distributed or consumed are recognised as stock; donated fixed assets are capitalised.
The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.
## c) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
Page 13
## **REDEEMER WORTHING LTD**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
The Charities SORP requires charities with income over £500,000 to allocate costs to the various activities undertaken by the charity. The nature of the work of the church is considered to be so integrated that the core charitable activity costs are considered to be for the one activity.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
## d) Fund accounting
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. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects. The nature of the restriction determines whether the endowments represent permanent endowments or expendable endowments.
## e) Tangible fixed assets
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £1,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Equipment Over 3 to 7 years
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
## f)
## Investments
Fixed asset investments are held to generate income and for their investment potential. Investments are valued as follows:
- i) Listed investments are valued at their market value (fair value) at the balance sheet date.
- ii) Unlisted investments are measured at cost less impairment where it becomes apparent that the amount that could be realised is less than cost.
Impairment losses and losses arising on the disposal of social investments are included in the Statement of Financial Activities under the heading 'Expenditure on charitable activities'. Gains arising on the disposal of social investments are included in the Statement of Financial Activities under the heading 'Other income'. All other gains and losses on investment assets are included in the Statement of Financial Activities under the heading 'Net gains / (losses) on investments'.
## g) Stocks
Stocks of donated items held for distribution to beneficiaries are measured at fair value; stocks of goods donated for the charity's own use are valued at an estimate of their value to the charity.
## h) Pension scheme arrangements
The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.
Page 14
## **REDEEMER WORTHING LTD**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## i) Taxation
The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
## j) Critical accounting estimates and areas of judgement
- The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.
## **3 Donations and legacies**
|**3**|**Donations and legacies**|||
|---|---|---|---|
|||2020|2019|
|||£|£|
||General Donations|283,768|350,345|
||Donations in kind|28,864|27,995|
||Other grants receivable|3,437|7,404|
||Income tax recoverable|48,019|68,547|
|||364,087|454,292|
||Donations in kind comprise the following:|||
|||2020|2019|
|||£|£|
||Goods donated for:|||
||Foodbank|28,864|27,995|
|||28,864|27,995|
|**4**|**Investment income**|||
|||2020|2019|
|||£|£|
||Bank interest|911|74|
||Profit on disposal of property|68,860||
|||69,771|74|
|**5**|**Charitable expenditure**|||
|**5**|**Charitable expenditure**||||
|---|---|---|---|---|
|||Core activities|Foodbank|2020|
|||£|£|£|
|**a**|**Costs incurred directly on specific activities**||||
||Church activities|38,830|10,259|49,089|
||Staff costs|168,856|18,182|187,038|
||Outreach|3,588|-|3,588|
||Community Projects|939|-|939|
||Donations in kind expensed (note 4e)|-|26,680|26,680|
||Grants payable (note 4f)|27,365|-|27,365|
|||239,577|55,122|294,698|
|**b**|**Costs incurred on support & administration**||||
||Governance costs|4,800|-|4,800|
||Administration support costs|59,166|631|59,797|
||Depreciation of tangible fixed assets|65|-|65|
||Stock wastage|-|6,803|6,803|
||Other|501|-|501|
|||64,532|7,434|71,967|
||**Total expenditure**|304,109|62,556|366,665|
Page 15
## **REDEEMER WORTHING LTD**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
|**NOTES TO THE ACCOUNTS**
**REDEEMER WORTHING LTD**
**FOR THE YEAR ENDED 31 AUGUST 2020**|||
|---|---|---|
|**_In the previous year, charitable expenditure was as follows:_**
_Core activities_
_£_
**_c_**
**_Costs incurred directly on specific activities_**
_Church activities_
_85,028_
_Staff costs_
_148,202_
_Outreach_
_4,730_
_Community Projects_
_52,674_
_Donations in kind expensed (note 4e)_
_-_
_Grants payable (note 4f)_
_43,905_
_334,539_
**_d_**
**_Costs incurred on support & administration_**
_Governance costs_
_4,800_
_Administration support costs_
_41,478_
_Depreciation of tangible fixed assets_
_3,450_
_Stock wastage_
_-_
_Other_
_196_
_49,924_
**_Total expenditure_**
_384,463_|_Foodbank_
_£_
_8,509_
_15,237_
_-_
_-_
_26,726_
_-_
_50,473_
_-_
_1,132_
_-_
_-_
_-_
_1,132_
_51,604_|_2019_
_£_
_93,537_
_163,439_
_4,730_
_52,674_
_26,726_
_43,905_|
|||_385,012_|
|||_4,800_
_42,609_
_3,450_
_-_
_196_|
|||_51,055_|
|||_436,067_|
The fee payable to the independent examiner for preparing and examining the accounts was £4,800 (2019: £4,800).
## **e Donations in kind expensed in year**
|Donated goods distributed in year
**f**
**Grants payable**
Grants for UK and overseas mission
The comparatives for the previous year are as follows:
Grants for UK and overseas mission
The charity's principal grants to institutions comprised:
Regions beyond
Joy in the City
Newfrontiers
Jubilee Church Hull
Grants to institutions for less than £1,000 each|Individuals
£
5,000
5,000
Individuals
£
-
-|2020
£
26,680
26,680
Institutions
£
22,365
22,365
Institutions
£
43,905
43,905
2020
£
15,665
3,000
-
2,000
1,700
22,365|2019
£
26,726|
|---|---|---|---|
||||26,726|
||||2020
£
27,365|
||||27,365|
||||2019
£
43,905|
||||43,905|
||||2019
£
38,510
-
2,000
-
3,395|
||||43,905|
Page 16
## **REDEEMER WORTHING LTD**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **5 Analysis of staff costs, the cost of key management personnel and trustee remuneration and expenses**
|Gross wages, salaries & benefits in kind
Employer's National Insurance costs
Pension costs
Other pay costs
Total staff costs|2020
£
153,555
12,265
14,509
6,709
187,038|2019
£
133,363
12,265
12,755
5,057|
|---|---|---|
|||163,439|
The average monthly number of employees during the year was 8 (2019: 8). Most of the charity's activities are carried out by volunteers.
No staff received salaries at a rate of more than £60,000 per annum.
During the year key management received employment benefits totalling £86,368 (2019: £86,368).
No trustees received employment benefits in either the current or preceding year.
No expenses (2019: £0) were paid to, or for, the trustees.
## **6 Tangible fixed assets**
|Cost
At 1 September 2019
Additions
At 31 August 2020
Accumulated depreciation
At 1 September 2019
Charge for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019
**7**
**Fixed asset investments**
Cost or fair value brought forward
Disposals during the year
Change in value of investments
Cost or fair value carried forward|Fixtures
fittings and
equipment
£
33,673
-
33,673
33,673
-
33,673
-
-|Computer
Equipment
£
4,447
-
4,447
4,382
65
4,447
(0)
65
UK Quoted
Shares
17,112
(17,112)
-
-|Total
2020
£
38,120
-
38,120
38,055
65
38,120
(0)
65
Investment
Property
157,551
(157,551)
-
-|2020
£
174,663
(174,663)
-
-|2019
£
208,966
(13,000)
(21,303)|
|---|---|---|---|---|---|
||||||174,663|
UK quoted shares – This allocation of shares received by anonymous donation in March 2008 was originally valued on receipt. The shares were revalued as at 31 August 2019 and the remaining shares were sold in October 2019.
Houses – During the year the above property was let whilst the trustees considered whether they wished to property in its charitable activities and so it has been carried at cost. Subsequently the trustees decided to dispose of the property and, since the year end, it has been sold for just over £225,000.Its value forms part of the contingency fund.
Page 17
## **REDEEMER WORTHING LTD**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **8 Stock**
|Donated goods
For distribution to beneficiaries
**Debtors**
**Falling due within one year:**
Tax recoverable
Prepayments
Other debtors
**Total debtors**
**Cash at Bank and in Hand**
Cash at bank with immediate access
Petty cash
**Creditors: liabilities falling due within one year**
Accruals
**Funds**
During the year the movements in the charity's funds wer
Opening
balance
2020
£
_Designated Funds_
Mission funds
49,125
Building fund
-
Regions Beyond Fund
-
49,125
_General Unrestricted Funds_
144,359
Total Unrestricted Funds
193,484
_Restricted Funds_
Special offerings
-
Contingency Fund
443,428
Foodbank
18,076
International Workers
53
City Hill Fund
84
461,641
Aggregate of funds
655,125|e as follows:
Incoming
resources
2020
£
-
43,868
8,615
52,482
321,403
373,885
4,503
534
60,667
-
-
65,704
439,589|Outgoing
resources
2020
£
-
-
(12,115)
(12,115)
(287,105)
(299,220)
(4,283)
(33,471)
(29,073)
(619)
-
(67,445)
(366,665)|Transfers
in the year
2020
£
-
-
3,500
3,500
(4,066)
(566)
-
-
-
566
-
566
-|2020
£
2,184
2,184
2020
£
3,270
2,050
2,014
7,334
2020
£
738,624
489
739,112
2020
£
20,579
20,579
Gains and
losses
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-|2019
£
6,803|
|---|---|---|---|---|---|
||||||6,803|
||||||2019
£
3,161
-
4,692|
||||||7,853|
||||||2019
£
473,433
489|
||||||473,922|
||||||2019
£
8,179|
||||||8,179|
||||||Closing
balance
2020
£
49,125
43,868
-|
||||||92,993
174,591|
||||||267,583|
||||||220
410,491
49,670
-
84|
||||||460,465|
||||||728,049|
## **9 Debtors**
## **10 Cash at Bank and in Hand**
## **11 Creditors: liabilities falling due within one year**
## **12 Funds**
Page 18
## **REDEEMER WORTHING LTD**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **Analysis of net assets by fund**
The assets and liabilities of the various funds were as follows:
|assets and liabilities of the various funds were as follows:|||||
|---|---|---|---|---|
|Tangible fixed assets
Investments
Stock
Debtors
Cash at bank and in hand
Creditors falling due within one year||General
Designated
funds
funds
£
£
(0)
-
-
-
-
-
7,334
-
187,839
92,993
(20,579)
-
174,593
92,993
Unrestricted Funds|Restricted
funds
£
-
-
2,184
-
458,281
-
460,465|2020
£
(0)
-
2,184
7,334
739,112
(20,579)|
|||General
funds
£
(0)
-
-
7,334
187,839
(20,579)
174,593|||
|||||728,051|
_In the previous year the movements in the charity's funds were as follows:_
|_Designated Funds_
_Mission funds_
_General Unrestricted Funds_
_Total Unrestricted Funds_
_Restricted Funds_
_Special offerings_
_Contingency Fund_
_Foodbank_
_South Africa_
_International Workers_
_City Hill Fund_
_Soup Run_
_Vision Offering_
_Aggregate of funds_|_Opening_
_balance_
_2019_
_£_
_33,057_
_33,057_
_145,030_
_178,087_
_13,753_
_432,747_
_22,328_
_303_
_2,281_
_15,000_
_200_
_24,175_
_510,787_
_688,874_|_Incoming_
_resources_
_2019_
_£_
_9,693_
_9,693_
_405,899_
_415,592_
_-_
_26,888_
_47,352_
_-_
_568_
_17,000_
_-_
_250_
_92,058_
_507,650_|_Outgoing_
_resources_
_2019_
_£_
_(23,652)_
_(23,652)_
_(269,844)_
_(293,496)_
_(13,753)_
_(16,207)_
_(51,604)_
_(4,666)_
_(31,916)_
_(24,425)_
_(142,571)_
_(436,067)_|_Transfers_
_in the year_
_2019_
_£_
_30,027_
_30,027_
_(31,394)_
_(1,367)_
_-_
_-_
_-_
_(303)_
_1,870_
_-_
_(200)_
_-_
_1,367_
_-_|_Gains and_
_losses_
_2019_
_£_
_-_
_-_
_(21,303)_
_(21,303)_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_(21,303)_|_Closing_
_balance_
_2019_
_£_
_49,125_|
|---|---|---|---|---|---|---|
|||||||_49,125_
_228,387_|
|||||||_277,512_|
|||||||_-_
_443,428_
_18,076_
_-_
_53_
_84_
_-_
_-_|
|||||||_461,641_|
|||||||_739,153_|
Page 19
## **REDEEMER WORTHING LTD**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## _**Analysis of net assets by fund**_
_In the previous year, the assets and liabilities of the various funds were as follows:_
|_Tangible fixed assets_
_Stock_
_Debtors_
_Investments_
_Cash at bank and in hand_
_Creditors falling due within one year_||_General_
_Designated_
_funds_
_funds_
_£_
_£_
_65_
_-_
_-_
_-_
_-_
_-_
_7,853_
_-_
_144,622_
_49,125_
_(8,179)_
_-_
_144,361_
_49,125_
_Unrestricted Funds_|_Restricted_
_funds_
_£_
_-_
_174,663_
_6,803_
_-_
_280,175_
_-_
_461,641_|_2019_
_£_
_65_
_174,663_
_6,803_
_7,853_
_473,922_
_(8,179)_|
|---|---|---|---|---|
|||_General_
_funds_
_£_
_65_
_-_
_-_
_7,853_
_144,622_
_(8,179)_
_144,361_|||
|||||_655,127_|
**Mission Fund** is money set aside to help those in need, locally and internationally.
**Build fund** is money set aside to be used for the acquisition of a lease and development costs for the church's new premises. **Regions Beyond fund** is in respect of an annual collection to provide for the work of the Regions Beyond group of churches. **Special offerings fund** is in respect of a collection for grants to be made overseas.
**City Hall Fund** is to fund the church's work in Asia
**Contingency Fund** is designed to pay for any unforeseen events and could include a building project
**Foodbank Fund** is to support the church's foodbank serving the local area
**Vision Fund** is reserved for establishing Trinity Church in Littlehampton up until it's launch in October 2018 **International Fund** is for all other international work supported by the church
## **13 Transactions with related parties**
During the year the charity received donations totalling £46,061 (2019: £112,537) from related parties (which includes trustees, members of key management and anyone closely connected to them).
Except as disclosed in note 5 'Analysis of staff costs', there have been no other transactions with related parties during the year.
## **14 Events since the year end**
In September 2020 the church entered into a contract to secure a 20-year lease for premises in the Guildbourne Centre, Worthing.
Page 20
## **REDEEMER WORTHING LTD**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Investments
Other income
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities:
5
**Total Expenditure**
**Net gains/(losses) on investments**
**Net income/(expenditure)**
**Transfers between funds**
12
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
12||General
Designated
2020
2020
£
£
249,304
52,482
69,761
-
2,337
-
321,403
52,482
287,105
12,115
287,105
12,115
-
-
34,298
40,368
(4,066)
3,500
30,232
43,868
144,359
49,125
174,591
92,993
Unrestricted funds|Restricted
2020
£
62,301
10
3,393
65,704
67,445
67,445
-
(1,742)
566
(1,176)
461,641
460,465|Total
2020
£
364,087
69,771
5,730
439,589
366,665
366,665
-
72,924
-
72,924
655,125
728,051|||General
Designated
2019
2019
£
£
379,267
9,693
74
-
53,284
-
432,625
9,693
296,570
23,652
296,570
23,652
(21,303)
-
114,751
(13,959)
(31,394)
30,027
83,357
16,068
61,002
33,057
144,359
49,125
Unrestricted funds|Restricted
2019
£
65,332
-
-
65,332
115,845
115,845
-
(50,513)
1,367
(49,146)
510,787
461,641|Total
2019
£
454,292
74
53,284
507,650
436,067
436,067
(21,303)
50,279
-
50,279
604,846
655,127|
|---|---|---|---|---|---|---|---|---|---|
Page 21