# **ANNUAL REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020**
# **CORNERSTONE PENTECOSTAL CHURCH**
**CHARITY REGISTRATION No: 1097402**
Independent Examiners Ltd
2 Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
1
## **CORNERSTONE PENTECOSTAL CHURCH**
## **CONTENTS**
Page 3 Legal and Administrative Information Page 4 Independent Examiner's Report to the Trustees Page 5 to 6 Trustees' Report Page 7 Statement of Financial Activities Page 8 Balance Sheet Pages 9 to 13 Notes to the Financial Statements
2
## **CORNERSTONE PENTECOSTAL CHURCH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**CHARITY NUMBER** 1097402 **START OF FINANCIAL YEAR** 1st January 2020 **END OF FINANCIAL YEAR** 31st December 2020 **TRUSTEES AT 31ST DECEMBER 2018** Samuel Abdullahi David Osei-Kwaku Keith King (appointed 1st February, 2020) J. Ansah (resigned 1st February, 2020)
The existing trustees appoint any new trustees following the provisions laid out in the organisation's governing instrument.
**LEGAL STATUS** Unincorporated Charity **GOVERNING INSTRUMENT** Declaration of Trust Dated 21st February 2003.
## **OBJECTS**
(a) The advancement of the Christian religion in accordance with the statement of beliefs, set out in the first schedule and in particular in London and at the discretion of the church council elsewhere in the United Kingdom or the World. (b) The relief of poverty and sickness regardless of nationality, religious, political or other opinion in London and at the discretion of the church council elsewhere in the United Kingdom or the World.
## **CORRESPONDENCE ADDRESS**
c/o Wealdstone Baptist Church High Street Wealdstone Harrow Middlesex HA3 7AH
**PRIMARY BANKERS** Barclays Bank Plc Wembley & Park Royal Branch Acorn House 36 - 38 Park Royal Road London NW10 7JA
**INDEPENDENT EXAMINER** Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
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## **INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS**
Report to the trustees/ members of Cornerstone Pentecostal Church on the accounts for the year ended 31st December 2020 set out on pages 7 to 13.
## **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 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 section 145(5)(b) of the Charities Act, and
- to state whether particular matters have come to my attention
## **Basis of independent examiner’s statement**
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from 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
1. which gives me reasonable cause to believe that in, any material respect, the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
have not been met; or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
## Keith Richards
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF
Date: 28th December, 2021
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## **CORNERSTONE PENTECOSTAL CHURCH**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020**
Mission - Cornerstone Church Harrow are a Bible Believing, Christ Centred, Evangelical church that meet each Sunday in Harrow Wealdstone where there has been an established congregation since Sep 1998.
The mission of the church is to be a place, a home where everyone is welcomed, and a Christian community where people are equipped to live effective lives as Christians in every area of life. To have an active Christian presence and impact in the local community, nationally and globally. The essence of this is captured by Cornerstones mission statement **'Sharing Our Faith, Growing Healthy Christians'** and motto “ **Loving God Loving People”** .
During the year Pastors Toks Odofin, Darlington Mutsekwa and John Osei Kweku continued to serve as the pastoral team. Julian Ansah stepped down as trustee and deacon and Keith King was elected as a trustee to replace him.
The church began the year with a steady consistent attendance to weekly services, with the congregation being made up of local residents, along with people that live on the outskirts of London and a number from around West London. The average attendance per service was 70 people, which consisted of men, women and children.
2020 was a year that came with many challenges. The year began as normal with the Pastors sharing their visions for the year: encouraging the congregation to be more active and support the work that God is doing within the Church and the local community. This saw an introduction to monthly Saturday brunches and a lunch after service on the first Sunday of the month at least for the first three months of the year. There was also a church organised guided tour of Israel in late February.
What took place in mid-March 2020 still feels quite surreal but everyone, everywhere felt the impact. The COVID-19 virus and subsequent lockdown meant the Church had to close its doors in line with government guidelines and subsequent law. Initially this was to last a few weeks, but due to the rise of infections the lockdown lasted much longer than anticipated.
During these times the Church had to find alternative ways of contact and worship. We pre-recorded sermons which were sent out on Sunday mornings and also loaded to the website. To help keep connected and boost morale we also hosted regular virtual meetings between the pastors and church members as well as weekly prayer meetings. The Church did not re-open again for face-to-face services until November 2020, however after two weeks we had to close as the country entered into another lockdown due to the rise in transmission once again.
Cornerstone Church continues to have an online presence with a website providing information on the church, service times, sermon recordings, events calendar etc. these are available online to a global audience. The church also has a social media presence on Facebook, Twitter, Instagram and YouTube. In 2020, the website and social media platforms were critical in the way the church reached out to its congregations and others alike.
The Church continued its partnership with Christian charity Compassion UK where members of the church collectively support children through sponsorship for education and medical purposes. The church also sponsors children through the charity World Vision, whose mission is to work with the poor and oppressed, to promote human transformation, seek justice and bear witness to the good news of God.
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## **CORNERSTONE PENTECOSTAL CHURCH**
## **TRUSTEES REPORT (Continued) FOR THE YEAR ENDED 31ST DECEMBER 2020**
Finances: Cornerstone’s income solely comes from the donations of its congregation. Despite the challenges faced by individuals and not being able to meet in person many of the church members continued to give.
During lockdown, the church did not have to pay rent to Wealdstone Baptist Church, this helped the church financially and enabled us to briefly support one of our pastors who was not able to work during lockdown. At the 31st December 2020, the Church had net funds of £88,243. Please see ‘Statement of Financial Activities for the Year Ended 31st December 2020' for further details.
## **What’s Next?**
Cornerstone Church Harrow has a vision to continue being a place of worship, that proclaims the gospel through sound biblical teaching and it’s spiritual and practical application. The church would like to see growth in the numbers of people that are part of the church, to see spiritual, personal and active growth in the members of Cornerstone, and coming together with other local churches and organizations to have a greater impact in meeting needs both locally and nationally.
2020 was indeed a challenging year for many and this has continued well into 2021. However, the church continues to be hopeful, as God is faithful and this gives us confidence for the future.
_And let us not grow weary while doing good, for in due season we shall reap if we do not lose heart._ **Galatians 6:9**
## **Trustees Responsibilities**
The Charities Act 2011 require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of the surplus of the trust for that period. In preparing those financial statements the trustees are required to:
- Select suitable accounting policies and apply them consistently
- Make judgements and estimates that are reasonable and prudent
- Prepare financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in existence.
The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the trust. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees on Tuesday 28[t h] December 2021
Signed on their behalf by
Printed Name: David Osei-Kwaku
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## **CORNERSTONE PENTECOSTAL CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020**
|**INCOMING RESOURCES**
**Incoming Resources from Generated Funds**
**Notes**
Donations & Legacies
**3a**
Other Incoming Resources
**3b**
**TOTAL INCOMING RESOURCES**
**RESOURCES EXPENDED**
**Costs of Generating Funds**
Charitable Activities
**4a**
Governance Costs
**4b**
**TOTAL RESOURCES EXPENDED**
**NET INCOMING/ (OUTGOING) RESOURCES**
Total Funds Brought Forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
Funds
£
Restricted
Funds
£
38,501
-
37
-|**TOTAL**
**2020**
£
**TOTAL**
**2019**
£
38,501
84,690
37
-|
|---|---|---|
||**38,538**
**-**|**38,538**
**84,690**|
||22,209
-
1,888
-|22,209
41,749
1,888
2,877|
||**24,097**
**-**|**24,097**
**44,626**|
||**14,441**
**-**
57,506
16,296|**14,441**
**40,064**
73,802
33,738|
||**71,947**
**16,296**|**88,243**
**73,802**|
Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing.
The notes on pages 9 to 13 form part of these financial statements.
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## **CORNERSTONE PENTECOSTAL CHURCH**
## **BALANCE SHEET AS AT 31ST DECEMBER 2020**
|**Fixed Assets**
**Notes**
Tangible Assets
**2**
**Current Assets**
Debtors & Prepayments
**7**
Cash at Bank and in Hand
**6**
**Creditors: A**mounts falling due within one year
**8**
**NET CURRENT ASSETS**
**NET ASSETS**
**CAPITAL AND RESERVES**
**Funds of the Charity:**
General Funds
Restricted Funds
**5**|Unrestricted Restricted
**Total**
**Total**
Funds
Funds
**31-Dec-20 31-Dec-19**
£
£
**£**
**£**
-
-
-
-
6,000
-
6,000
-
67,087
16,296
83,383
74,952|
|---|---|
||73,087
16,296
89,383
74,952
1,140
-
1,140
1,150
71,947
16,296
88,243
73,802|
|||
||**71,947**
**16,296**
**88,243**
**73,802**|
||71,947
-
71,947
57,506
-
16,296
16,296
16,296|
||**71,947**
**16,296**
**88,243**
**73,802**|
Approved by the Trustees on Tuesday 28[t h] December 2021
Signed on their behalf by
Printed Name: David Osei-Kwaku
8
## **CORNERSTONE PENTECOSTAL CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020**
## **1. ACCOUNTING POLICIES**
## **Basis of Preparation & Assessment of Going Concern**
## **Basis of Preparation**
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The 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 (FRS102) (effective 1 January 2015) - (Charities SORP - FRS102) and the Charities Act 2011.
The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.
## **Assessment of Going Concern**
Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.
## **Incoming Resources**
## _**Recognition of Incoming Resources**_
These are included in the Statement of Financial Activities (SOFA) when:
- the charity becomes entitled to the resources;
- the trustees are virtually certain they will receive the resources; and
- the monetary value can be measured with sufficient reliability
## _**Incoming Resources with Related Expenditure**_
Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resource and related expenditure are reported gross in the SOFA.
## _**Grants and Donations**_
Grants and Donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
## _**Tax Reclaims on Donations and Gifts**_
Incoming resources from tax reclaims are included in the SOFA during the same period as the gift to which they relate
## _**Contractual Income and Performance Related Grants**_
This is only included in the SOFA once the related goods or services has been delivered
## _**Gifts in Kind**_
Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SOFA as incoming resources when receivable.
## _**Donated Services and Facilities**_
These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received.
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## **CORNERSTONE PENTECOSTAL CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020**
## **1. ACCOUNTING POLICIES (continued)**
## _**Volunteer Help**_
The value of any voluntary help received is not included in the accounts but is described in the trustees' annual report
## _**Investment Income**_
This is included in the accounts when receivable.
## _**Investment Gains and Losses**_
This included any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.
## **Expenditure and Liabilities**
## _**Liability Recognition**_
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
## _**Governance Costs**_
Include costs of the preparation and examination of statutory accounts, the costs of the trustees meetings and cost of any legal advice to trustees on governance or constitutional matters.
## _**Grants with Performance Conditions**_
Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specified service or output.
## _**Grants Payable without Performance Conditions**_
These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to a grant which remain in control of the charity.
## _**Changes in Accounting Policies and Previous Accounts**_
There has been no change to the accounting policies (variation rules and methods of accounting) since last year, and no changes to the previous accounts.
## _**Fixed Assets**_
These are capitalised if they can be used for more than one year, and cost at least £1,500. They are valued at cost or, if gifted, at the value to the charity on receipt.
## _**Depreciation Expenses**_
Depreciation is calculated at a rate to write off the cost of tangible fixed assets on a reducing balance over their estimated useful lives. The rates applied per annum are as follows:
General Equipment 33% Office Equipment 33%
## **2. TANGIBLE FIXED ASSETS**
The Charity held no fixed assets during this or the previous financial year.
The annual commitments under non-cancelling operating leases and capital commitments are as follows:
31st December 2020: None
31st December 2019: None
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## **CORNERSTONE PENTECOSTAL CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **3. INCOMING RESOURCES**
|**a) Donations & Legacies**
**Note**
Gifts, Tithes & Offerings
**5**
Tax Recoverable
**b) Other Incoming Resources**
Bank Interest
Sundry Income|Unrestricted Restricted
**TOTAL**
**TOTAL**
Funds
Funds
**2020**
**2019**
£
£
£
£
32,501
-
32,501
50,442
6,000
-
6,000
34,248|
|---|---|
||**38,501**
**-**
**38,501**
**84,690**|
||37
-
37
-
-
-
-
-|
||**37**
**-**
**37**
**-**|
|**4. RESOURCES EXPENDED**
**a) Charitable Activities**
Activities & Events
Books & Publications
Church/Charity Support
Conferences & Seminars
Equipment Costs
Gifts & Offerings
Licenses & Subscriptions
Outreach Expenses
Overseas Missions
Pastorate Costs
Postage & Stationery
Rent & Rates
Staff Costs
Sunday School
Sundry Expenses
Telephone Costs
Travel & Subsistence
Visiting Speakers Costs
Worship Expenses
**b) Governance Costs**
Bank Charges
Independent Examiners Fee
Insurance Costs
Legal & Professional Fees|Unrestricted Restricted
**TOTAL**
**TOTAL**
Funds
Funds
**2020**
**2019**
1,864
-
1,864
3,073
-
-
-
821
-
821
8,539
28
-
28
4,726
4,722
-
4,722
757
524
-
524
1,321
778
-
778
759
-
-
-
-
-
-
-
347
-
347
1,192
-
-
-
2,316
-
2,316
13,094
8,775
-
8,775
3,775
-
-
-
-
76
-
76
360
1,924
-
1,924
2,115
(300)
-
(300)
1,879
-
-
-
-
334
-
334
159|
|---|---|
||**22,209**
**-**
**22,209**
**41,749**|
||-
-
-
-
1,140
-
1,140
2,150
748
-
748
727
-
-
-
-|
||**1,888**
**-**
**1,888**
**2,877**|
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## **CORNERSTONE PENTECOSTAL CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020**
## **5. RESTRICTED FUNDS**
## **CURRENT FINANCIAL YEAR**
|Building Fund
**PREVIOUS FINANCIAL YEAR**
Building Fund
Chicago Fund|**Balance**
**Balance**
**01-Jan-20**
Income
Expenditure
Transfer
**31-Dec-20**
**£**
**£**
**£**
**£**
**£**
16,296
-
-
-
16,296|
|---|---|
||**16,296**
**-**
**-**
**-**
**16,296**|
||**Balance**
**Balance**
**01-Jan-19**
Income
Expenditure
Transfer
**31-Dec-19**
**£**
**£**
**£**
**£**
**£**
16,296
-
-
-
16,296
-
-
-
-
-|
||**16,296**
**-**
**-**
**-**
**16,296**|
The restricted funds held are represented by the Charity's cash reserves and are to be expended as specified above.
## **6. CASH AT BANK AND IN HAND**
|**6. CASH AT BANK AND IN HAND**|||||
|---|---|---|---|---|
||Unrestricted|Restricted|**Total**|**Total**|
||Fund|Fund|**31-Dec-20**|**31-Dec-19**|
||**£**|**£**|**£**|**£**|
|Cash at Bank and in Hand|67,087|16,296|83,383|74,952|
||**67,087**|**16,296**|**83,383**|**74,952**|
|**7. DEBTORS AND PREPAYMENTS**|||||
||Unrestricted|Restricted|**Total**|**Total**|
||Fund|Fund|**31-Dec-20**|**31-Dec-19**|
||**£**|**£**|**£**|**£**|
|Gift Aid Tax Recoverable|6,000|-|6,000|-|
|Prepayments|-|-|-|-|
||**6,000**|**-**|**6,000**|**-**|
|**8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||||
||Unrestricted|Restricted|**Total**|**Total**|
||Fund|Fund|**31-Dec-20**|**31-Dec-19**|
||**£**|**£**|**£**|**£**|
|Independent Examiners Fees|1,140|-|1,140|1,150|
|Sundry Creditors|-|-|-|-|
||**1,140**|**-**|**1,140**|**1,150**|
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## **CORNERSTONE PENTECOSTAL CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020**
## **9. STAFF COSTS AND NUMBERS**
|Gross Wages and Salaries
Employer's National Insurance Costs
Pension Contributions
Employees who were engaged in each of the following activities:
Activities in furtherance of organisation's objects|**2020**
**£**
8,775
-
-
**8,775**
**TOTAL**
**2020**
1|**2019**
**£**
3,775
-
-|
|---|---|---|
|||**3,775**|
|||**TOTAL**
**2019**
3|
The charity operate a PAYE scheme to pay all employed members of staff and no employees received emoluments in excess of £60,000. (2019: None)
## **10. TRUSTEES AND OTHER RELATED PARTIES**
No payments were made to trustees or any persons connected with them during this financial period. No material transaction took place between the organisation and a trustee or any person connected with them.
## **11. RISK ASSESSMENT**
The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.
## **12. RESERVES POLICY**
The trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The trustees will endeavour not to set aside funds unnecessarily.
## **13. PUBLIC BENEFIT**
The charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake
13