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2020-12-31-accounts

Charity No. 1099227 Company No. 04815977

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

web: www.hfcc.org.uk

email: office@hfcc.org.uk

UNAUDITED FINANCIAL STATEMENTS YEAR ENDED 31st DECEMBER 2020

Independent Examiner: Peter Saltiel Church & Charity Accounts Service

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

CONTENTS

Year Ended 31st December 2020

Page
Church Information 1
Report of the Trustees (Leadership Team)
(Including Directors’ Report) 2 – 5
Independent Examiner’s Report 6
Statement of Financial Activities and
Income and Expenditure Account 7
Balance Sheet 8
Notes to the Financial Statements 9 – 14

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

CHURCH INFORMATION

Trustees (Leadership Team): Janet Gilmour Philippa Gilmour Linda Port Secretary: Janet Gilmour Principal Office & Correspondence Address: Harvest Fields Centre Harvest Fields Way Sutton Coldfield West Midlands B75 5TJ Staff: Wayne Hadley Wendy Hadley Bankers: Barclays Bank Leicester LE87 2BB Cambridge & Counties Bank Limited Charnwood Court New Walk Leicester LE1 6TE Registered Charity Number: 1099227 (England & Wales) Company number: 04815977 (England & Wales) Independent Examiner: Peter Saltiel Church & Charity Accounts Service Planchadeau 23460 Saint-Pierre-Bellevue France

1

HARVEST FIELDS COMMUNITY CHURCH

(A company limited by guarantee)

REPORT OF THE TRUSTEES (INCLUDING DIRECTORS’ REPORT) 2020

The trustees, who are the Leadership Team and directors of the company for the purposes of company law, present their report and financial statements together with the independent examiner’s report for the period ended 31 December 2020.

STRUCTURE, GOVERNANCE AND MANAGEMENT

As a church we started meeting together regularly on Sunday mornings from Easter 1999 but, at that stage, we did not have a statutory constitution.

The charity was established by memorandum and articles of association under company number 4815977 on 30th June 2003 and was recognised as a charity on 2nd September 2003. The principal office is Harvest Fields Centre, Harvest Fields Way, Sutton Coldfield, B75 5TJ.

All the members of the Leadership Team (Janet Gilmour, Philippa Gilmour & Linda Port) held office throughout the year and to the date of this report. No member of the Leadership Team has received any remuneration from the church. Details of the related party transaction and associated party transactions are set out in notes 14 and 15.

The power of appointing new Leadership Team members is vested in the members on nomination by the existing Leadership Team. As part of the induction process for new members of the Leadership Team it has been agreed that they should familiarise themselves with the responsibility of charity trustees, read the Charity Commission booklet on the subject and carefully read the Memorandum and Articles of Association, our policies and procedures and our latest financial statements.

Decisions regarding the vision, overall direction and spiritual life of the church are taken by the Leadership Team. The detailed delivery of these is delegated to the appropriate staff member, volunteer or member of the Leadership Team.

The Leadership Team periodically review risks and take steps to minimise them where practicable.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The church’s object is to advance the Christian faith, and as an expression of Christian witness, love and concern:-

The Leadership Team has taken account of the Charity Commission’s general guidance relating to public benefit issues when reviewing the church’s objectives, activities and achievements (see below).

We are a small church based within a local community. The majority of our members live on the Harvest Fields development and in the immediately adjacent roads. The vision has always been that we would not be a “commuter church” but one where most attendees could walk to our meetings.

Harvest Fields Community Church is an evangelical charismatic church that subscribes to mainstream Christian beliefs. We believe that God has called each individual member to be a positive and Godly influence on their families, friends, work colleagues and neighbours by reflecting the life and love of Jesus in every aspect of our lives. This involves sharing our lives at a level much above the superficial normal.

2

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

REPORT OF THE TRUSTEES/DIRECTORS, continued

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT continued

The church is based in Harvest Fields Community Centre which is situated at the heart of a residential area with a mission to reach the local community with the love of Jesus. We aim to present the unchanging Gospel of Jesus Christ in a modern, relevant and understandable way to all ages and so we have adopted a contemporary style of church service and worship.

During 2020, the world experienced a pandemic from the outbreak of COVID-19, so whilst the church began the year as usual, by the middle of March, many of our activities had ceased or were adapted due to the UK lockdown.

The Centre was instructed to close its doors and places of worship were issued guidelines to follow.

We created “Hi Neighbour!” postcards and delivered them across the estate, offering our help in these unprecedented times with essential shopping, prescription collection and prayer. We helped a number of people in the initial stages of lockdown, but the need diminished as people began to make adjustments to internet shopping and prescriptions were delivered by the pharmacy. We made some good contacts, both with volunteers and with those who needed help.

Our Sunday morning services moved online, via skype, along with our Wednesday evening prayer meetings. These meetings continued to be extremely beneficial to those taking part and those we have been praying for.

Our parent and toddler group closed at the first lockdown and to date has still not reopened. The team are looking at the current guidelines and are planning to reopen when safe and sensible to do so.

The church takes seriously its responsibility to nurture, protect and safeguard the welfare of children and teenagers entrusted to it and, accordingly, we have a Child Protection Policy whose implementation is formally reviewed by the Leadership Team.

We have continued to support a number of missionaries from our tithe fund but due to the pandemic none of them have been able to visit the church in person. We celebrated Holy Communion approximately once a month throughout the year.

The fellowship between the Christian churches in Four Oaks continues to be strong although again we are currently unable to meet in real life. The last meeting of the Churches Together in Four Oaks was at Easter when we began a Lent Bible study course together but had to stop due to lockdown. The church leaders have met online and these meetings have been helpful and supportive.

Once again we designed and produced the Easter card for the Churches Together in Four Oaks. This card advertised the Easter activities and services that each of the seven churches were hosting and was distributed to the 9,000 homes across Four Oaks. Unfortunately though, none of these services took place in their buildings and were all moved online.

Christmas was also very different. We designed a Christmas card and wrote a letter of encouragement to all the residents of Harvest Fields and the surrounding roads. These were delivered by two volunteers from the church, suitably masked and socially distanced.

Carols on Christmas Eve was obviously not possible under the circumstances so instead we invited our neighbourhood to “Doorstep Carols”. We asked them to join us on their doorsteps in singing a few carols at 7pm on Christmas Eve. The event seemed to have been warmly welcomed and taken up by many. Our Facebook live was seen by over one thousand five hundred people.

3

HARVEST FIELDS COMMUNITY CHURCH

(A company limited by guarantee)

REPORT OF THE TRUSTEES/DIRECTORS, continued

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT continued

We devised a Nativity trail around the park for family bubbles to use and enjoy at their leisure throughout the Christmas season. We created a Nativity scene in the Centre windows and as usual we placed Christmas lights in the trees in the park.

During the year we employed Wayne and Wendy Hadley as our Chaplaincy Team to work from the Centre out into the community and to support the church leadership team. This has worked out extremely well even with the restrictions that have been in place. In October they initiated an online book club as their first venture which was well received and has been followed by a second book at the beginning of 2021.

ACHIEVEMENTS AND PERFORMANCE

Our parent and toddler group, Harvest Tots continued to grow and be very popular. The mums, dads and grandparents were very appreciative. However due to COVID-19 we have been unable to meet since March 2020.

We did not deliver Christmas cards and chocolates in the same way as previously but had a good response to the Centre nativity display and the nativity trail. Those who joined in the “Doorstep carols” were very positive about it.

During the beginning of the year we ran a number of community events such as Quiz Nights – all well attended and appreciated. We continued to support the Wednesday morning group “Jean & Bernard’s Elevenses” which is a friendly group made up of predominately retired people. This group has suffered quite badly from loneliness and isolation so we have tried to maintain telephone contact and have set up a WhatsApp group so they can communicate with each other and catch up on their news.

The Leadership Team continue to disciple and support those within the church family.

Public Benefit

The Leadership Team consider that the church’s achievements and performance continue to meet the public benefit test. The presence of the church has created an atmosphere of peace and security for all local residents. The prayers for the community have been of huge benefit and the lack of vandalism bears testimony to that. Those members of the public who opt into specific church activities obviously benefit more.

FINANCIAL REVIEW

The principal funding source for the church remains from members.

The income for the year was £61,192 (2019: £85,494). The expenditure for the year was £66,787 (2019: £61,998). This left a deficit on the year of £5,595 (2019: £23,496), which has been added to the surplus brought forward and balance carried forward. A full breakdown of these figures can be seen in the Notes.

Investment Policy

The Leadership Team has the power to invest in such assets as it sees fit and places funds with Barclays Bank plc and Cambridge & Counties Bank Limited.

4

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

REPORT OF THE TRUSTEES/DIRECTORS, continued

FINANCIAL REVIEW continued

Reserves

The church relies on regular continuing income to meet its monthly commitments. It would be hoped that the undesignated reserves should always exceed three months undesignated expenses excluding gifts in kind and tithe allocation. We are pleased to report that at the end of 2020 we have achieved this with our undesignated reserves totalling £62,597 (see note 11).

Given that we have been building up funds that will be needed in the future (when we expect our expenses to increase significantly), we kept our investment of £35,000 in a 95 day notice account and so this, plus interest earned (of £3,349), is a designated fund.

RESPONSIBILITIES OF THE LEADERSHIP TEAM

Company law requires the Leadership Team to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year. In preparing those financial statements, the Leadership Team are required to:-

The Leadership Team are responsible for maintaining proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the church and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In preparing this report, the Leadership Team have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006 and Section 1A of the FRS102.

AUDIT EXEMPTION

The church is exempt from the requirements to have its financial statements audited. However, as its income is above £25,000, Peter Saltiel of Church & Charity Accounts Service was appointed by the members as its Independent Examiner whose report is on page 6.

Approved by the Trustees (Leadership Team) / Directors on 12[th] April 2021 and signed by their order.

Janet Gilmour Secretary

5

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES/DIRECTORS/ MEMBERS OF HARVEST FIELDS COMMUNITY CHURCH ON THE ACCOUNTS FOR THE YEAR ENDED 31[st] DECEMBER 2020

Charity No: 1099227 Company No: 4815977

I report on the accounts of the Trust for the year ended 31st December 2019 which are set out on pages 7 to 14.

Responsibilities and basis of report

As the charity’s trustees of the Company (who are also the directors of the company 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 for this year 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

I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that:

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.

Peter Saltiel Church & Charity Accounts Service Planchadeau 23460 Saint-Pierre-Bellevue France formerly, 69 Portland Place Greenhithe, Kent, DA9 9FE

Dated 19[th] April 2021

6

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT

Year Ended 31st December 2020

Notes Unrestricted Unrestricted
& Total Funds & Total Funds
2020 2019
£ £
Income from:
Donations 3 59,645 65,879
Charitable activities 4 967 18,913
Other investment income 580 702
───── ─────
Total Income 61,192 85,494
───── ─────
Expenditure on:
Charitable activities 5 66,787 61,998
───── ─────
Net Income and Net Movements in Funds (5,595) 23,496
Total funds brought forward 103,849 80,353
───── ─────
Total funds carried forward 11 98,254 103,849
═════ ═════

The Statement of Financial Activities includes all gains and losses recognised in the year. All the incoming and expended resources were unrestricted funds and derived from continuing activities. The notes on pages 9 to 14 form part of these financial statements.

7

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

BALANCE SHEET At 31st December 2020

Notes 2020 2019
£ £
Current Assets
Debtors and prepayments 9 1,770 1,950
Cash at bank 99,075 104,717
───── ─────
100,845 106,667
───── ─────
Current Liabilities
Creditors and accruals 10 2,591 2,818
───── ─────
Net Assets 98,254 103,849
═════ ═════
Represented by:-
Designated - tithe fund 1 & 11 (2,692) 1,355
Designated - investment fund 1 & 11 38,349 37,809
───── ─────
Designated funds 35,657 39,164
Undesignated (general) funds 1 & 11 62,597 64,685
───── ─────
Total Charity Funds 98,254 103,849
═════ ═════

The trustees (who are also the directors of the company for the purposes of company law) confirm that for the year ended 31st December 2020:

The accounts have been examined by an independent examiner whose report appears on page 6. The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The Notes on pages 9 to 14 form an integral part of these accounts.

These accounts, which have been prepared In accordance with the provisions in the Companies Act 2006 relating to small companies, were approved by the trustees on 12[th] April 2021 and signed on their behalf by:

Janet Gilmour Company No. 04815977

8

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

Notes to the Financial Statements Year Ended 31st December 2020

1. BASIS OF PREPARATION

Basis of accounting

These financial statements are prepared under the historical cost convention and in accordance with:

The accounts present a true and fair view and no changes in the basis of accounting have been made during the year. There have also been no changes to the previous accounts during the financial year. The church is a public benefit entity.

Going Concern

After considering the future impact of COVID-19, the Leadership Team are of a view that there are sufficient reserves to secure the immediate future of the church and on that basis the charity is a going concern.

Cash Flow Exemption

A Statement of Cash Flows has not been produced since the church is within the small company and charity thresholds.

2. ACCOUNTING POLICIES

Fund Accounting

Unrestricted funds are donations and other income received or generated for the objects of the charity without specific purpose and are available as general funds. In accordance with the policy agreed by the members, twenty percent of all general income is designated to be given away (called the Tithe Fund), the fund balance is the amount designated not given away by the year end. The Investment Fund is money earmarked for investment. There are no restricted funds.

Income

Donations of equipment are recognised at their estimated value at the time the donated assets are received. In accordance with the FRS 102, the value of the church’s rent free entitlement to use the Harvest Fields Centre has been estimated and is included both as income received and as an expense used (see note 5). No value has been recognised in these Financial Statements of the considerable work undertaken by volunteers - most of whom are church members. Other donations are included on a cash received basis. There would be no material difference if an accruals basis were adopted. Tax recoverable is included in the year to which the gift generating the tax recovery relates (the accruals basis).

9

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

Notes to the Financial Statements Year Ended 31st December 2020 (cont’d)

The income and result for the year are attributed to the principal activity as set out in the report of the Leadership Team. The whole of the income is derived from the UK.

Expenditure

Grants, which are all subject to regular review, are normally accounted for in the year when they are paid as they are generally paid out of income as it arises. Other expenditure is included on an accruals basis when incurred. Costs relating to more than one category are apportioned based upon estimated usage.

Fixed Tangible Assets – Programme Related Investment – Intermediate Lease

The long intermediate lease of the Harvest Fields Centre is a programme related investment (an investment primarily made for what it will achieve rather than its investment performance) and therefore, in accordance with the SORP, as the church did not pay anything for it, no capital value has been recognised.

Other Fixed Tangible Assets – Equipment etc

Donated items and items purchased out of restricted donations received for that purpose are fully expensed upon acquisition. Other purchases of individual items of equipment over £2,000 will be capitalised; other items are expensed when incurred in the SOFA.

Net current Assets

Current assets are cash at bank with immediate access and debtors. There are no fixed assets. Current liabilities are obligations to pay for services within one year.

Depreciation

On equipment that is capitalised depreciation will be provided at rates calculated to write off the cost of each asset on a straight line basis over three years.

Judgements and Estimations

The Leadership Team has not made any significant judgements in the process of applying the accounting policies and there are no areas of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities.

3. ANALYSIS OF VOLUNTARY INCOME

ANALYSIS OF VOLUNTARY INCOME
2020 2019
Notes £ £
Donations – in money including tax recoverable 2 25,540 31,774
Donations – specifically for the set-up of “Harvest Tots” - -
Donation in kind – rent free use of Harvest Fields Centre 2&16 34,105 34,105
──── ────
59,645 65,879
════ ════

10

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

Notes to the Financial Statements Year Ended 31st December 2020 (cont’d)

4. ANALYSIS OF INCOME FROM CHARITABLE ACTIVITIES ANALYSIS OF INCOME FROM CHARITABLE ACTIVITIES ANALYSIS OF INCOME FROM CHARITABLE ACTIVITIES ANALYSIS OF INCOME FROM CHARITABLE ACTIVITIES ANALYSIS OF INCOME FROM CHARITABLE ACTIVITIES
2020 2019
Notes £ £
Charitable rental income 16 - 15,610
Income from “Harvest Tots” 967 3,303
──── ────
967 18,913
════ ════
5. CHARITABLE ACTIVITIES
Directly Grant Support 2020 2019
Notes undertaken funding costs Total Total
£ £ £ £ £
Property, house-
keeping expenses etc:
Value of rent free
use of Centre 2&16 34,105 - - 34,105 34,105
Contribution to the
Centre’s utilities and
servicing expenditure
16		 9,519 - - 9,519 12,694
House-keeping costs etc (693) - - (693) 632
──── ──── ─── ───── ─────
42,931 - - 42,931 47,431
Harvest Tots 435 - - 435 2,865
Chaplaincy Team 11,091 - - 11,091 -
Charitable grants 7 - 9,955 - 9,955 8,033
Publicity & evangelism 1,120 - - 1,120 944
Equipment purchased 2 70 - - 70 729
Resources & training 100 - - 100 713
Governance costs 8 - - 498 498 498
Other charitable costs 80 - 507 587 785
──── ─── ─── ──── ────
55,827 9,955 1,005 66,787 61,998
════ ═══ ═══ ════ ════

6. STAFF COSTS

Salaries

2020 2019
£ £
8,333 -
═════ ════

The average headcount and average number of whole time equivalent persons directly employed by the church was 2 (2019: 0) and 0.3 (2019: 0) respectively.

No employee was paid more than £60,000 per annum.

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HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

Notes to the Financial Statements Year Ended 31st December 2020 (cont’d)

7. GRANTS

There are three categories of grants out of unrestricted income – first out of the twenty percent of general income designated to be given away (the tithe fund), second out of the ten percent of “Harvest Tots” income (which is decided on by the families who attend the group) and third, on some occasions, at the discretion of the Leadership Team, from the general funds in the main account.

The total amount given away over the year was £9,955 which, this year, comprised £9,155 from the tithe fund and £800 from the general funds in the main account. Of this total £7,755 was given to six organisations and £2,200 was given to three individuals. Details of grants to organisations of over £1,000 in the year are available from the principal office.

At 31st December 2020 there were commitments for regular, mostly monthly, grants at the annual rate of £8,200 which, in accordance with our accounting policy, have not been provided for (since they will be payable from the regular income received the following year).

8. GOVERNANCE COSTS

This comprises the Independent Examiner’s fee of £485 (2019: £485) and Companies House filing fee of £13 (2019: £13).

9. DEBTORS AND PREPAYMENTS

10.

2020 2019
£ £
Tax Reclaim 1,770 1,950
Service Charge Refund - -
──── ────
1,770 1,950
════ ════
CREDITORS AND ACCRUALS
2020 2019
£ £
Creditors (due to suppliers etc) 587 1,639
Accruals (Service Charge due) 1,519 694
Governance 485 485
──── ────
2,591 2,818
════ ════

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HARVEST FIELDS COMMUNITY CHURCH

(A company limited by guarantee)

Notes to the Financial Statements Year Ended 31st December 2020 (cont’d)

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Other Current
Cash at Assets (less
bank/hand Liabilities) Total
£ £ £
Designated - tithe fund (2,692) - (2,692)
Designated - investment fund 38,349 - 38,349
Undesignated (general) funds 63,418 (821) 62,597
──── ──── ────
Total Unrestricted Funds 99,075 (821) 98,254
════ ════ ════

12. TAXATION

The church is a registered charity and, as all its income will be applied for charitable purposes, no liability to tax arises in respect of the year.

13. SHARE CAPITAL

The church is a company limited by guarantee and has no share capital. Each member of the church has undertaken to contribute a sum, not exceeding £1, to the church's assets if it is wound up whilst that person is a member or within one year after ceasing to be a member.

14. LEADERSHIP TEAM

None of the Leadership Team has received any remuneration from the church for services rendered. Details of related party transactions and associated party transactions are set out in notes 15 and 16 below.

Although the Leadership Team are reimbursed for purchases they have made for the church at cost, the church has not reimbursed any travelling or other expenses to any of the Leadership Team.

15. RELATED PARTY TRANSACTIONS

There were no related party transactions during the year.

13

HARVEST FIELDS COMMUNITY CHURCH (A company limited by guarantee)

Notes to the Financial Statements Year Ended 31st December 2020 (cont’d)

16. ASSOCIATED PARTY TRANSACTIONS

The church is the sole member of Harvest Fields Centre Limited (HFCL) which is itself a registered charity and is associated by reason of the church’s Leadership Team being two of its directors. The church does not receive dividends or any surplus HFCL achieves. However, the church as owner of the intermediate lease of the Harvest Fields Centre usually receives rent. However, in 2020, the church chose to waive the rent due to assist HFCL in navigating the coronavirus pandemic, so in 2020 the church received no rent (2019: £15,610) from HFCL. Provided there are no breaches in the lease terms, the church is only liable to pay a peppercorn ground rent.

The church uses the Harvest Fields Centre operated by HFCL on a rent free basis (estimated value £34,105) but contributes at cost to the utilities and servicing expenditure - its share in 2020 was £9,519 (2019: £12,694).

Whilst the church, through its Leadership Team, is entitled to appoint/re-elect HFCL’s directors in accordance with HFCL’s Articles of Association, they do so from nominations by HFCL’s existing board. Despite this connection, the church is not the parent charity (in Companies Act terms “the parent undertaking”) of HFCL. Accordingly, HFCL’s figures are not consolidated or otherwise incorporated into the church’s own Financial Statements. HFCL’s Financial Statements are available from its registered office, which is the same as the church’s.

17. FINANCIAL COMMITMENTS

At 31 December 2020 the church was committed to paying no rent for its occupation of the Centre but is committed to paying service charge based upon the costs incurred for its entitlement to use the Centre. This entitlement expires after more than a hundred years. For 2021 the service charge is estimated to cost the church £12,000.

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