**REGISTERED COMPANY NUMBER: 04859696 (England and Wales) REGISTERED CHARITY NUMBER: 1099828** 

## **REPORT OF THE TRUSTEES AND** 

## **UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** 

## **FOR** 

## **GATEWAY FREEDOM CHURCH, HARLOW** 

Brindley Millen Ltd 167 Turners Hill Cheshunt Hertfordshire EN8 9BH 



**GATEWAY FREEDOM CHURCH, HARLOW** 

## **CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 March 2021** 

|||**Page**||
|---|---|---|---|
|**Pastors' Review of the Year**|1|to|2|
|**Report of the Trustees**|3|to|6|
|**Independent Examiner's Report**||7||
|**Statement of Financial Activities**||8||
|**Balance Sheet**||9||
|**Notes to the Financial Statements**|10|to|18|
|**Detailed Statement of Financial Activities**|19|to|20|





**GATEWAY FREEDOM CHURCH, HARLOW** 

## **PASTORS' REVIEW OF THE YEAR for the Year Ended 31 March 2021** 

When we held last year's Annual General Meeting, lockdown due to the Covid-19 pandemic had just been introduced by the government. Back then we had no idea how greatly our lives would be impacted and what church life would look like in the coming months. The period that is covered by this Annual Report is April 2020 - March 2021. We will look at how the church navigated the period of strict lockdown and also look at some of the recent developments as we share with you some insights into what we're hoping to see in the future. 

## **Gateway Freedom Church Life** 

Just before lockdown was announced, the Church family met together on Sunday mornings for worship, teaching and prayer ministry. When restrictions were put in place and face to face gatherings were not allowed, we quickly had to adapt to the new way  of doing church as we began to broadcast our Sunday services online on social media. During that time we were taking baby steps towards learning how to stream our services online and how to provide other means to keep people connected. 

During the pandemic the After School and Holiday Club was unable to operate which caused a great impact in the finance of the Church. The loss of income led to the decision of closure of the club and in June 2020 the ASC staff were made redundant. 

By the time last year's report was written, we had received a few offers for the purchase of the Gateway Centre site and in December we finalised the sale after having received a very significant offer. 

For the most part of 2020 our church services were pre-recorded then broadcast weekly on Sunday mornings. Sometime after that we moved to live-streaming our meetings online which enabled greater interaction from members and non-members watching from home. We also came together to celebrate communion online once a week. 

Life Groups began meeting online as well and have played a major role in keeping people connected. We saw an increase in the number of people joining Life Groups, not only church members but we also new people who joined the church via these online meetings. We want to thank all leaders for such a job well done during such a challenging time. 

Margaret Elwes and Joanna Stanesby, with the help of some parents, also provided our children and young people with online gatherings twice a month. 

We also witnessed a great step towards servanthood in the church as members who were not able to leave their home because they were classified as vulnerable or were self-isolating, had food and other items delivered at their door by others in the church. 

Out of this experience the Kindness Projected was birthed. Bridgette Fraser and Michelle Flores put the project together with the intention to not only serve those in the church by providing them with bespoke baskets of food and other times but also to reach out to those outside the church in order to show God's love. We have delivered 14 baskets since the project began and have received encouraging reports form those who received them. 

During lockdown we ran an Alpha Course and a Youth Alpha Course online and both courses were well attended. Healing Rooms continued to operate via WhatsApp and telephone. 

On 1st April, the hand-over in the leadership of the church was made official and Mauricio & Sibele Colussi became senior pastors. Brian and Mary continue to be part of the spiritual leadership of the Church and now play the role of oversight to the Vision Team. 

## **Recent developments** 

In July Margaret Elwes informed the church she was stepping down from her role as Children's Pastor after serving at Gateway for the last 10 years. We are very grateful for the work she did and we look ahead to what God has in store for our children and young people. 

As a result, we saw parents promoting and getting involved in activities with and for their children since the summer. It is a joy to see friendships blossoming among the children and young people. 

Once lockdown was lifted in the spring of 2021, the church hired the Study Centre in Harlow during July-August for face to face meetings while still complying with government guidelines to wear masks and maintain social distance. During this time, Life Groups met outdoors as more fellowship outside Sunday services was encouraged. 

In October we began meeting at St Thomas More hall on Sunday mornings. This has been a great opportunity for face to face fellowship, worship and prayer. We have seen a great number of church members attending as well as a few visitors. We have and will continue to broadcast our services for the sake of those who are unable to join in person. 

Page 1 



**GATEWAY FREEDOM CHURCH, HARLOW** 

## **PASTORS' REVIEW OF THE YEAR** 

## **for the Year Ended 31 March 2021** 

## **Building** 

We are still on the pursuit of a permanent home for the Church. We believe the building needs to be a vessel for the activities that we want to do as a Church so that we can fulfil our calling to be a blessing to the town. We hope to reinstate some of the things we used to do at the Gateway Centre in Staple Tye such as Healing Rooms, Spirit Café, Encounters, being a hub for clothes collection and sorting for the Dust Project and more. 

Our dream is to see the building being used throughout the week and not only on Sunday mornings. We would love to run a small café and a second-hand shop as well as other projects that will make the building a place of encounter for both church members and non-members. 

## **Mauricio & Sibele** 

Page 2 



**GATEWAY FREEDOM CHURCH, HARLOW** 

## **REPORT OF THE TRUSTEES for the Year Ended 31 March 2021** 

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). 

## **ACHIEVEMENT AND PERFORMANCE** 

## **Objectives and Activities** 

The charity's objects as defined by the Memorandum of Association are: 

a) To advance the Christian faith in accordance with the Statement of Beliefs (in the Memo & Arts) in Harlow and the surrounding neighbourhood and in such other parts of the United Kingdom or the world as the Trustees may from time to time think fit and other such purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the Charity; 

b) To provide and maintain facilities (whether in a purpose-built Community Centre or otherwise) for the benefit of the community of Harlow and the surrounding neighbourhood which facilities may without limitation include the provision of child care services and meetings, lectures and classes and other forms of education, recreation and leisure-time occupation without distinction of race, sex, political, religious or other opinion and with the object of improving the conditions of life for the said inhabitants as the Trustees may from time to time in their discretion determine. 

When planning our activities for the year and the services on offer to the local community, the Trustees have considered the Charity Commission's guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. In particular, we try to encourage ordinary people to grow in their faith and live it out in every area of their lives as part of the Gateway church family. We also try to encourage people within the local community to find faith through establishing friendships and attending our public meetings at the Gateway Centre and also life groups in people's homes. Many within our church community have found spiritual, emotional and physical healing and we are keen that others in the local community receive the same benefits. Our meetings are open to the public and are publicised on our website and social media. 

## **Harlow Church Joint Projects** 

Members of the Gateway family continue to work as volunteers in a number of joint church projects supporting different groups within the community.  These include: 

Harlow FoodBank & Bounty Club - collects food from the general public and catering suppliers and distributes it to people and families in crisis directly and through frontline community agencies. 

Freshwaters Contact Centre - helps rebuild relationships between parents and children who have been separated by a family breakdown by providing a warm, friendly, neutral environment where the absent parent can visit, talk and play with their children. 

Harlow Healing Rooms - offers prayer for physical healing to members of the public one Friday evening per month. 

Great Open Door - a group of people drawn from local churches who serve the schools in Harlow and the surrounding area by providing Christian assemblies and teaching Religious Education. 

## **FINANCIAL REVIEW** 

## **Financial review** 

Gateway's income is made up primarily from tithes and offerings from church families. Tithes and offerings including funds reclaimed under the Gift Aid system rose this year by about 6% from £68,863 in 2019/20 to £72,928 in 2020/21. Net tithes and offerings have increased from £58,160 to £61,570. 

Many thanks to everyone who has given generously throughout the year and to those who have organised and helped with fundraising activities. The role of volunteers within the church is extremely valuable to the organisation and is gratefully acknowledged but not quantified in this report. 

Page 3 



**GATEWAY FREEDOM CHURCH, HARLOW** 

## **REPORT OF THE TRUSTEES** 

## **for the Year Ended 31 March 2021** 

The After School & Holiday Club income decreased from £136,423 in 2019/20 to £100 in 2020/21. There were associated decreases in club wages. The Government-enforced closure of schools forced the Club to close its doors in March 2020. Net Loss from the Club was £15,479 (2019/20 Income of £48,979) 

With great regret the Trustees took the further decision to permanently close the Club due to: 

- Falling income due to increased local competition. 

- Inability to recruit fully trained and qualified staff. 

- Imminent threat of failing structure of the Gateway Centre. 

- Resignation of voluntary Consultant. 

- Risk of failing to provide a safe environment for children. 

The Covid-19 crisis only served to bring forward a swifter closure to the Club. This decision meant that the continued operation of the Gateway Centre was no longer a financially viable activity and the Centre was moth balled in Spring 2020 until a buyer could be found and, in December 2020, the Gateway Centre which had served us so faithfully for nearly twenty years was sold and subsequently demolished. The Income from the Sale amounted to £349,041 and after costs a Net Income of £329,057 

We are very grateful to Ann and Kevin Tierney who have tirelessly given their time over the years in their voluntary roles within the Club. 

The overall Net Income for the year is £322,504 (Net Expenditure of £8,963 2019/20) 

|**Net Income analysed by Activity:**|**2020/21**|**2019/20**|
|---|---|---|
|After School & Holiday Club Contribution to Church Overheads|-£15,479|£48,979|
|Harlow Council Grant|£9,400|£0|
|Net Income From Sale of Gateway Centre|£329,057|£0|
|Net Church Income after Expenditure and Overheads|-£474|-£57,962|
|Net Income|£322,504|-£8,963|



This increased our net assets from £452,088 in 2019/20 to £774,592 in 2020/21 

## **Investment policy** 

Under the Memorandum and Articles of Association the charity has the power to make investments at the discretion of the trustees. The current policy of the charity is to ensure investments are low risk and funds are currently held with a number of different banks ensuring that no more than £85,000 is on deposit with any single organisation. Alternative opportunities are regularly reviewed. 

## **Reserves policy** 

The sale of the Gateway Centre has increased the current level of reserves above the amount needed to maintain three months running costs. The charity continues to look for a new building to help it to achieve its objectives. 

## **Conflicts of Interest Policy** 

In the course of meetings or activities, trustees disclose any interests in a transaction or decision where there may be a conflict between the church's best interests and the trustee's (or other connected person's) best interests or a conflict between the best interests of the two organisations that the trustee is involved with. After disclosure, the trustee may be asked to leave the room during the discussion and may not be able to take part in the decision (at the discretion of the remaining trustees). Any such disclosures and the subsequent actions are noted in the minutes. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Governing document** 

Gateway is a charitable company limited by guarantee, incorporated on 7th August 2003. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.  In the event of the company being wound up members are required to contribute an amount not exceeding £10. 

The company and charity name was changed from Gateway Christian Fellowship, Harlow to Gateway Freedom Church, Harlow on 6th May 2010.  The registered company and charity numbers remain unchanged. 

Page 4 



**GATEWAY FREEDOM CHURCH, HARLOW** 

## **REPORT OF THE TRUSTEES** 

## **for the Year Ended 31 March 2021** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Recruitment and appointment of Trustees** 

The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Charity. The number of trustees is not less than three but is not subject to any maximum. Trustees are eligible to serve for a three-year period and may then be re-elected for further three-year periods. 

Trustees must be at least sixteen years of age and are required to subscribe to the Statement of Beliefs set out in the Articles, as Gateway is a Christian congregation. In the event of particular skills being lost due to retirement or resignation, individuals are approached to offer themselves for election to the board of trustees. 

The chair of trustees, is appointed by consensus of the other trustees. As she steps down we give thanks for the two years of faithful service, wisdom and leadership that Ann Tierney has given in leading the trustees in her role as chair through a number of difficult years. 

## **Organisational structure** 

Gateway has five trustees as at 31st March 2021 who are responsible for the management and administration of the charity. The board meets at least six times a year and at least one of the Pastors also attends. 

Day-to-day responsibility for the provision of services is delegated to the Pastors and leadership Team. 

Health and Safety, Safeguarding and Finance issues are reported on and considered by the trustees on a regular basis. Minutes of trustee meetings are circulated to the church's leadership team and advisory board. The minutes of the leadership team meetings are also circulated in a similar way. 

## **Trustee Induction and Training** 

New trustees are given an orientation pack, which briefs them on a trustee's legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making process, and the most recent audited accounts and Annual Report. 

## **Related parties** 

Gateway links nationally and internationally with Harvest Alliance, a family network of churches and ministries in pursuit of sustained revival in the church and the outpouring Kingdom of transformation in the nations. 

More locally, Gateway is also part of Heart 4 Harlow, a group of evangelical church congregations in Harlow who are seeking to work together in local mission.  Gateway is also a member of the Evangelical Alliance. 

## **Risk management** 

Following the closure of the After School Club there was a reduction in the number of employees of Gateway After School Club. Also, following the sale of the building there has been a considerable reduction in the Health & Safety implications of owning and managing a premises for the Church. Therefore the decision was taken to dispense with the service provided by Ellis Whittam at the time. However there still remains some risk around these issues and to mitigate that risk, we have entered into an agreement with Trust Advice to provide advice on these matters on a call off basis as and when required. 

## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number** 

04859696 (England and Wales) 

## **Registered Charity number** 

1099828 

## **Registered office** 

3 Home Close Harlow Essex CM20 3PB 

Page 5 



**GATEWAY FREEDOM CHURCH, HARLOW** 

## **REPORT OF THE TRUSTEES** 

## **for the Year Ended 31 March 2021** 

**Trustees** L E Culf (resigned 29.5.20) C D De Silva Miss M H Sears Mrs A E Tierney Chair (resigned 24.11.21) A P Walker T Stanesby (appointed 4.1.21) J East (appointed 24.11.21) Mrs H East (appointed 24.11.21) Mrs B Fraser (appointed 24.11.21) **Company Secretary** Mrs M Spencer **Independent Examiner** Brindley Millen Ltd 167 Turners Hill Cheshunt Hertfordshire EN8 9BH **Bankers** Barclays Bank plc PO Box 12 Harlow Essex CM20 1ET 

**Senior Pastors** Mr Mauricio Colussi Mrs Sibele Colussi Dec 17, 2021 Approved by order of the board of trustees on ............................................. and signed on its behalf by: 

..............................................................................A Walker (Dec 17, 2021 16:59 GMT) A P Walker - Trustee 

Page 6 



**INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF GATEWAY FREEDOM CHURCH, HARLOW** 

## **Independent examiner's report to the trustees of Gateway Freedom Church, Harlow ('the Company')** 

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021. 

## **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 your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Institute of Chartered Accountants in England and Wales 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. 

## mwbrindley 

mwbrindley (Dec 20, 2021 10:39 GMT) 

Maurice Brindley BSc FCA Institute of Chartered Accountants in England and Wales Brindley Millen Ltd 167 Turners Hill Cheshunt Hertfordshire EN8 9BH 

Date: .............................................Dec 20, 2021 

Page 7 



## **GATEWAY FREEDOM CHURCH, HARLOW** 

## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 March 2021** 

|Unrestricted<br>funds<br>Notes<br>£<br>**INCOME AND ENDOWMENTS FROM**<br>Donations and legacies<br>2<br>78,765<br>**Charitable activities**<br>4<br>Advancing the Christian Faith<br>307<br>Investment income<br>3<br>223<br>Other income<br>363,366<br>**Total**<br>442,661<br>**EXPENDITURE ON**<br>**Charitable activities**<br>5<br>Advancing the Christian Faith<br>119,639<br>**NET INCOME/(EXPENDITURE)**<br>323,022<br>**Transfers between funds**<br>15<br>253,543<br>**Net movement in funds**<br>576,565<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>197,157<br>**TOTAL FUNDS CARRIED FORWARD**<br>773,722|Restricted<br>funds<br>£<br>5,266<br>-<br>-<br>-<br>5,266<br>5,783<br>(517)<br>(253,543)<br>(254,060)<br>254,931<br>871|31.3.21<br>31.3.20<br>Total<br>Total<br>funds<br>funds<br>£<br>£<br>84,031<br>71,284<br>307<br>143,193<br>223<br>7<br>363,366<br>-<br>447,927<br>214,484<br>125,422<br>223,467<br>322,505<br>(8,983)<br>-<br>-<br>322,505<br>(8,983)<br>452,088<br>461,071<br>774,593<br>452,088|31.3.21<br>31.3.20<br>Total<br>Total<br>funds<br>funds<br>£<br>£<br>84,031<br>71,284<br>307<br>143,193<br>223<br>7<br>363,366<br>-<br>447,927<br>214,484<br>125,422<br>223,467<br>322,505<br>(8,983)<br>-<br>-<br>322,505<br>(8,983)<br>452,088<br>461,071<br>774,593<br>452,088|
|---|---|---|---|
||||214,484<br>223,467|
||||(8,983)<br>-|
||||(8,983)<br>461,071|
||||452,088|



The notes form part of these financial statements 

Page 8 



## **GATEWAY FREEDOM CHURCH, HARLOW (REGISTERED NUMBER: 04859696)** 

## **BALANCE SHEET** 

## **31 March 2021** 

|Unrestricted<br>funds<br>Notes<br>£<br>**FIXED ASSETS**<br>Tangible assets<br>10<br>1,814<br>**CURRENT ASSETS**<br>Debtors<br>11<br>1,305<br>Cash at bank and in hand<br>772,234<br>773,539<br>**CREDITORS**<br>Amounts falling due within one year<br>12<br>(1,631)<br>**NET CURRENT ASSETS**<br>771,908<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>773,722<br>**CREDITORS**<br>Amounts falling due after more than one year<br>13<br>-<br>**NET ASSETS**<br>773,722<br>**FUNDS**<br>15<br>Unrestricted funds<br>Restricted funds<br>**TOTAL FUNDS**|Restricted<br>funds<br>£<br>-<br>-<br>871<br>871<br>-<br>871<br>871<br>-<br>871|31.3.21<br>Total<br>funds<br>£<br>1,814<br>1,305<br>773,105<br>774,410<br>(1,631)<br>772,779<br>774,593<br>-<br>774,593<br>773,722<br>871<br>774,593|31.3.20<br>Total<br>funds<br>£<br>474,036<br>8,043<br>21,319|
|---|---|---|---|
||||29,362<br>(2,889)|
||||26,473|
||||500,509<br>(48,421)|
||||452,088|
||||197,157<br>254,931|
||||452,088|



The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021. 

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006. 

The trustees acknowledge their responsibilities for 

(a) ensuring that the charitable company keeps accounting records that 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 surplus or deficit 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. 

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. 

The financial statements were approved by the Board of Trustees and authorised for issue on .............................................Dec 17, 2021 and were signed on its behalf by: 

A Walker (Dec 17, 2021 16:59 GMT) 

............................................. 

A P Walker - Trustee 

The notes form part of these financial statements 

Page 9 



**GATEWAY FREEDOM CHURCH, HARLOW** 

**NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 March 2021** 

## **1. ACCOUNTING POLICIES** 

## **Basis of preparing the financial statements and assessment of going concern** 

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. 

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. 

## **Critical accounting judgements and key sources of estimation uncertainty** 

In preparing financial statements it is necessary to make certain judgements, estimated and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements. 

Useful economic life of tangible fixed assets: 

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. 

## **Income** 

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. 

## **Expenditure** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. 

## **Tangible fixed assets** 

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. 

|Freehold property - Land|- not provided|
|---|---|
|Freehold property - Building|- over 25 years straight line|
|Fixtures and fittings|- 25% on reducing balance|
|Motor vehicles|- 25% on reducing balance|



Only items over £250 are capitalised and depreciated by the charity. 

## **Taxation** 

The charity is exempt from corporation tax on its charitable activities. 

## **Debtors** 

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid. 

## **Cash at bank and in hand** 

Cash at bank and in hand includes cash, current bank accounts and deposit bank accounts with no withdrawal limitations. 

## **Creditors** 

Creditors are recognised where the charity has a present obligation resulting from a past event that will result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount. 

## **Fund accounting** 

Unrestricted funds are funds which are not designated or restricted and are available for the use at the discretion of the trustees in furtherance of the general objectivity of the charity. 

Restricted funds are to be used for specific purposes as required by the donor. Expenditure which meets these criteria is allocated to the relevant fund. Income derived from these funds is retained within the funds concerned. 

continued... 

Page 10 



**GATEWAY FREEDOM CHURCH, HARLOW** 

**NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021** 

## **1. ACCOUNTING POLICIES - continued** 

## **Fund accounting** 

Designated funds are unrestricted funds which the trustees have designated to the used for a specific purpose. Where these funds yield investment income, this is available for general purposes. 

## **Pension costs and other post-retirement benefits** 

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. 

## **Company status** 

The charity is a company limited by guarantee. The members of the company are the trustees. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member. 

## **Financial instruments** 

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially settled at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## **DONATIONS AND LEGACIES** 

## **2.** 

|Building donations<br>General offering<br>Income tax recovery<br>Special offerings<br>Grants received<br>Fundraising<br>Grants received, included in the above, are as follows:<br>Harlow Council<br>**INVESTMENT INCOME**<br>Deposit account interest<br>**INCOME FROM CHARITABLE ACTIVITIES**<br>Activity<br>Kitchen income<br>Advancing the Christian Faith<br>Room hire<br>Advancing the Christian Faith<br>Office income<br>Advancing the Christian Faith<br>Kids club fees<br>Advancing the Christian Faith<br>Miscellaneous income<br>Advancing the Christian Faith<br>School of Ministry<br>Advancing the Christian Faith|31.3.21<br>£<br>842<br>60,309<br>11,358<br>421<br>9,400<br>1,701<br>84,031<br>31.3.21<br>£<br>9,400<br>31.3.21<br>£<br>223<br>31.3.21<br>£<br>-<br>90<br>77<br>100<br>-<br>40<br>307|31.3.20<br>£<br>1,921<br>53,820<br>10,703<br>2,419<br>-<br>2,421<br>71,284<br>31.3.20<br>£<br>-<br>31.3.20<br>£<br>7<br>31.3.20<br>£<br>33<br>2,200<br>556<br>136,423<br>788<br>3,193|
|---|---|---|
|||143,193|



## **3.** 

## **4. INCOME FROM CHARITABLE ACTIVITIES** 

continued... 

Page 11 



**GATEWAY FREEDOM CHURCH, HARLOW** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021** 

## **5. CHARITABLE ACTIVITIES COSTS** 

|**CHARITABLE ACTIVITIES COSTS**||||
|---|---|---|---|
||Direct|Support||
||Costs|costs|Totals|
||£|£|£|
|Advancing the Christian Faith|104,237|21,185|125,422|



## **6.** 

## **NET INCOME/(EXPENDITURE)** 

Net income/(expenditure) is stated after charging/(crediting): 

||31.3.21|31.3.20|
|---|---|---|
||£|£|
|Depreciation - owned assets|605|19,095|
|Surplus/(deficit) on disposal of fixed assets|(349,041)|640|
|Independent examiners fee|1,200|1,200|



## **7. TRUSTEES' REMUNERATION AND BENEFITS** 

Andrew Walker, a Trustee, received £1,800 for bookkeeping services during the year (2020: £1,050). 

## **Trustees' expenses** 

There were no  trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020. 

## **Key management personnel** 

The charity considers that the key management personnel consist of the senior pastors. Remuneration for key personnel during the year was £12,150 (2020: £11,549). 

## **8. STAFF COSTS** 

The average monthly number of employees during the year was as follows: 

## **9.** 

|||31.3.21|31.3.20|
|---|---|---|---|
|All Staff||3|6|
|No employees received emoluments in excess of £60,000.||||
|During the year eight members of staff were made redundant and were paid of cumulative total||of £8,652.||
|**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**||||
||Unrestricted|Restricted|Total|
||funds|funds|funds|
||£|£|£|
|**INCOME AND ENDOWMENTS FROM**||||
|Donations and legacies|63,551|7,733|71,284|
|**Charitable activities**||||
|Advancing the Christian Faith|143,193|-|143,193|
|Investment income|7|-|7|
|**Total**|206,751|7,733|214,484|
|**EXPENDITURE ON**||||
|**Charitable activities**||||
|Advancing the Christian Faith|198,383|25,084|223,467|
|**NET INCOME/(EXPENDITURE)**|8,368|(17,351)|(8,983)|



continued... 

Page 12 



**GATEWAY FREEDOM CHURCH, HARLOW** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021** 

|**9.**<br>**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued**<br>Unrestricted<br>funds<br>£<br>**Transfers between funds**<br>(8,033)<br>**Net movement in funds**<br>335<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>196,822<br>**TOTAL FUNDS CARRIED FORWARD**<br>197,157<br>**10.**<br>**TANGIBLE FIXED ASSETS**<br>Fixtures<br>Freehold<br>and<br>property<br>fittings<br>£<br>£<br>**COST**<br>At 1 April 2020<br>808,883<br>55,119<br>Additions<br>-<br>614<br>Disposals<br>(808,883)<br>(34,901)<br>At 31 March 2021<br>-<br>20,832<br>**DEPRECIATION**<br>At 1 April 2020<br>345,017<br>52,179<br>Charge for year<br>-<br>605<br>Eliminated on disposal<br>(345,017)<br>(33,766)<br>At 31 March 2021<br>-<br>19,018<br>**NET BOOK VALUE**<br>At 31 March 2021<br>-<br>1,814<br>At 31 March 2020<br>463,866<br>2,940<br>**11.**<br>**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Other debtors<br>Gift aid recoverable|<br>Restricted<br>funds<br>£<br>8,033<br>(9,318)<br>264,249<br>254,931<br>Motor<br>vehicles<br>£<br>21,000<br>-<br>(21,000)<br>-<br>13,770<br>-<br>(13,770)<br>-<br>-<br>7,230<br>31.3.21<br>£<br>117<br>1,188<br>1,305|Total<br>funds<br>£<br>-<br>(8,983)<br>461,071<br>452,088<br>Totals<br>£<br>885,002<br>614<br>(864,784)<br>20,832<br>410,966<br>605<br>(392,553)<br>19,018<br>1,814<br>474,036<br>31.3.20<br>£<br>2,280<br>5,763<br>8,043|Total<br>funds<br>£<br>-|
|---|---|---|---|
||||(8,983)<br>461,071|
||||452,088|



continued... 

Page 13 



**GATEWAY FREEDOM CHURCH, HARLOW** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021** 

## **12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Other loans (see note 14)<br>Social security and other taxes<br>Other creditors<br>Accrued expenses<br>**13.**<br>**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**<br>Bank loans (see note 14)<br>**14.**<br>**LOANS**<br>An analysis of the maturity of loans is given below:<br>Amounts falling due within one year on demand:<br>Other loans<br>Amounts falling between one and two years:<br>Bank loans - 1-2 years<br>Amounts falling due between two and five years:<br>Bank loans - 2-5 years<br>Amounts falling due in more than five years:<br>Repayable by instalments:<br>Bank loans more 5 yr by instal<br>**15.**<br>**MOVEMENT IN FUNDS**<br>Net<br>movement<br>At 1.4.20<br>in funds<br>£<br>£<br>**Unrestricted funds**<br>General fund<br>193,475<br>333,088<br>Tithe Fund<br>-<br>(6,384)<br>Kids Club<br>3,682<br>(3,682)<br>197,157<br>323,022<br>**Restricted funds**<br>Building Project<br>250,745<br>(634)<br>Youth Projects<br>310<br>-<br>Special Offerings<br>124<br>297<br>Capital improvements fund<br>948<br>-<br>Kids Club Vehicle fund<br>2,484<br>-<br>Healing Rooms<br>320<br>(180)<br>254,931<br>(517)<br>**TOTAL FUNDS**<br>452,088<br>322,505|31.3.21<br>£<br>-<br>-<br>431<br>1,200<br>1,631<br>31.3.21<br>£<br>-<br>31.3.21<br>£<br>-<br>-<br>-<br>-<br>Transfers<br>between<br>funds<br>£<br>245,834<br>7,709<br>-<br>253,543<br>(250,111)<br>-<br>-<br>(948)<br>(2,484)<br>-<br>(253,543)<br>-|31.3.20<br>£<br>938<br>269<br>484<br>1,198<br>2,889<br>31.3.20<br>£<br>48,421<br>31.3.20<br>£<br>938<br>9,122<br>28,543<br>10,756<br>At<br>31.3.21<br>£<br>772,397<br>1,325<br>-|
|---|---|---|
|||773,722<br>-<br>310<br>421<br>-<br>-<br>140|
|||871|
|||774,593|



continued... 

Page 14 



**GATEWAY FREEDOM CHURCH, HARLOW** 

**NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021** 

## **15. MOVEMENT IN FUNDS - continued** 

Net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>Tithe Fund<br>Kids Club<br>**Restricted funds**<br>Building Project<br>Special Offerings<br>Healing Rooms<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>442,661<br>-<br>-<br>442,661<br>1,555<br>3,711<br>-<br>5,266<br>447,927|Resources<br>Movement<br>expended<br>in funds<br>£<br>£<br>(109,573)<br>333,088<br>(6,384)<br>(6,384)<br>(3,682)<br>(3,682)<br>(119,639)<br>323,022<br>(2,189)<br>(634)<br>(3,414)<br>297<br>(180)<br>(180)<br>(5,783)<br>(517)<br>(125,422)<br>322,505|Resources<br>Movement<br>expended<br>in funds<br>£<br>£<br>(109,573)<br>333,088<br>(6,384)<br>(6,384)<br>(3,682)<br>(3,682)<br>(119,639)<br>323,022<br>(2,189)<br>(634)<br>(3,414)<br>297<br>(180)<br>(180)<br>(5,783)<br>(517)<br>(125,422)<br>322,505|
|---|---|---|---|
||||323,022<br>(634)<br>297<br>(180)|
||||(517)|
||||322,505|



## **Comparatives for movement in funds** 

|**Unrestricted funds**<br>General fund<br>Tithe Fund<br>Kids Club<br>Essence<br>**Restricted funds**<br>Building Project<br>Youth Projects<br>Special Offerings<br>Capital improvements fund<br>Kids Club Vehicle fund<br>Kids Club Fundraising<br>Healing Rooms<br>**TOTAL FUNDS**|Net<br>movement<br>At 1.4.19<br>in funds<br>£<br>£<br>182,541<br>5,470<br>-<br>(3,375)<br>14,281<br>11,208<br>-<br>(4,935)<br>196,822<br>8,368<br>257,757<br>(15,045)<br>310<br>-<br>12<br>112<br>1,264<br>(316)<br>4,313<br>(1,829)<br>(87)<br>87<br>680<br>(360)<br>264,249<br>(17,351)<br>461,071<br>(8,983)|Transfers<br>between<br>funds<br>£<br>5,464<br>3,375<br>(21,807)<br>4,935<br>(8,033)<br>8,033<br>-<br>-<br>-<br>-<br>-<br>-<br>8,033<br>-|At<br>31.3.20<br>£<br>193,475<br>-<br>3,682<br>-|
|---|---|---|---|
||||197,157<br>250,745<br>310<br>124<br>948<br>2,484<br>-<br>320|
||||254,931|
||||452,088|



Page 15 

continued... 



**GATEWAY FREEDOM CHURCH, HARLOW** 

**NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021** 

## **15. MOVEMENT IN FUNDS - continued** 

Comparative net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>Tithe Fund<br>Kids Club<br>Essence<br>**Restricted funds**<br>Building Project<br>Special Offerings<br>Capital improvements fund<br>Kids Club Vehicle fund<br>Kids Club Fundraising<br>Healing Rooms<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>66,449<br>-<br>136,582<br>3,720<br>206,751<br>2,184<br>2,924<br>-<br>462<br>2,163<br>-<br>7,733<br>214,484|Resources<br>Movement<br>expended<br>in funds<br>£<br>£<br>(60,979)<br>5,470<br>(3,375)<br>(3,375)<br>(125,374)<br>11,208<br>(8,655)<br>(4,935)<br>(198,383)<br>8,368<br>(17,229)<br>(15,045)<br>(2,812)<br>112<br>(316)<br>(316)<br>(2,291)<br>(1,829)<br>(2,076)<br>87<br>(360)<br>(360)<br>(25,084)<br>(17,351)<br>(223,467)<br>(8,983)|Resources<br>Movement<br>expended<br>in funds<br>£<br>£<br>(60,979)<br>5,470<br>(3,375)<br>(3,375)<br>(125,374)<br>11,208<br>(8,655)<br>(4,935)<br>(198,383)<br>8,368<br>(17,229)<br>(15,045)<br>(2,812)<br>112<br>(316)<br>(316)<br>(2,291)<br>(1,829)<br>(2,076)<br>87<br>(360)<br>(360)<br>(25,084)<br>(17,351)<br>(223,467)<br>(8,983)|
|---|---|---|---|
||||8,368<br>(15,045)<br>112<br>(316)<br>(1,829)<br>87<br>(360)|
||||(17,351)|
||||(8,983)|



A current year 12 months and prior year 12 months combined position is as follows: 

|**Unrestricted funds**<br>General fund<br>Tithe Fund<br>Kids Club<br>Essence<br>**Restricted funds**<br>Building Project<br>Youth Projects<br>Special Offerings<br>Capital improvements fund<br>Kids Club Vehicle fund<br>Kids Club Fundraising<br>Healing Rooms<br>**TOTAL FUNDS**|Net<br>movement<br>At 1.4.19<br>in funds<br>£<br>£<br>182,541<br>338,558<br>-<br>(9,759)<br>14,281<br>7,526<br>-<br>(4,935)<br>196,822<br>331,390<br>257,757<br>(15,679)<br>310<br>-<br>12<br>409<br>1,264<br>(316)<br>4,313<br>(1,829)<br>(87)<br>87<br>680<br>(540)<br>264,249<br>(17,868)<br>461,071<br>313,522|Transfers<br>between<br>funds<br>£<br>251,298<br>11,084<br>(21,807)<br>4,935<br>245,510<br>(242,078)<br>-<br>-<br>(948)<br>(2,484)<br>-<br>-<br>(245,510)<br>-|At<br>31.3.21<br>£<br>772,397<br>1,325<br>-<br>-|
|---|---|---|---|
||||773,722<br>-<br>310<br>421<br>-<br>-<br>-<br>140|
||||871|
||||774,593|



Page 16 

continued... 



**GATEWAY FREEDOM CHURCH, HARLOW** 

**NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021** 

## **15. MOVEMENT IN FUNDS - continued** 

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: 

|**Unrestricted funds**<br>General fund<br>Tithe Fund<br>Kids Club<br>Essence<br>**Restricted funds**<br>Building Project<br>Special Offerings<br>Capital improvements fund<br>Kids Club Vehicle fund<br>Kids Club Fundraising<br>Healing Rooms<br>**TOTAL FUNDS**|Incoming<br>resources<br>£<br>509,110<br>-<br>136,582<br>3,720<br>649,412<br>3,739<br>6,635<br>-<br>462<br>2,163<br>-<br>12,999<br>662,411|Resources<br>Movement<br>expended<br>in funds<br>£<br>£<br>(170,552)<br>338,558<br>(9,759)<br>(9,759)<br>(129,056)<br>7,526<br>(8,655)<br>(4,935)<br>(318,022)<br>331,390<br>(19,418)<br>(15,679)<br>(6,226)<br>409<br>(316)<br>(316)<br>(2,291)<br>(1,829)<br>(2,076)<br>87<br>(540)<br>(540)<br>(30,867)<br>(17,868)<br>(348,889)<br>313,522|Resources<br>Movement<br>expended<br>in funds<br>£<br>£<br>(170,552)<br>338,558<br>(9,759)<br>(9,759)<br>(129,056)<br>7,526<br>(8,655)<br>(4,935)<br>(318,022)<br>331,390<br>(19,418)<br>(15,679)<br>(6,226)<br>409<br>(316)<br>(316)<br>(2,291)<br>(1,829)<br>(2,076)<br>87<br>(540)<br>(540)<br>(30,867)<br>(17,868)<br>(348,889)<br>313,522|
|---|---|---|---|
||||331,390<br>(15,679)<br>409<br>(316)<br>(1,829)<br>87<br>(540)|
||||(17,868)|
||||313,522|



The General Fund represents funds received and expended on the general running costs of Gateway Freedom Church. 

The Tithe Fund represents 10% of our general offerings which is designated to be given away to charitable causes in accordance with our aims and objectives. 

The Kids Club Fund represents funds received and expended on the running of Gateway After School & Holiday Club. 

The Essence Fund represents funds received and expended on the running of our School of Ministry, Essence. 

The Building Fund represents funds received and expended on the process of building and maintaining the home of Gateway Freedom Church, the Gateway Centre. 

The Youth Fund represents funds received and expended on winning and developing children and young people for the sake of the gospel. 

The Special Offerings Fund represents funds received via a special offering for a particular purpose - and only spent on that purpose. 

The Kids Club Restricted Funds represent funds raised for the purchase and running of two vehicles for use by Gateway After School & Holiday Club and Gateway Freedom Church, the fund therefore represents the net book value of the two vehicles and a cash balance of the unspent funds. This fund also represents monies raised for the purchase of other equipment to be used within the Kids Club. 

The Capital Improvements Fund represents grant funds received that were used to install air conditioning in the Gateway Centre and the related depreciation. 

The Harlow Healing Rooms Fund represents funds received and expended on the running of Harlow Healing Rooms. 

## **Transfers between funds** 

All of the assets which had been held in the Building fund, Capital Improvement fund and Kids Club Vehicle fund were disposed of during the year. The balance on these funds have therefore been transferred to the General fund. 

continued... 

Page 17 



**GATEWAY FREEDOM CHURCH, HARLOW** 

**NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2021** 

## **16. RELATED PARTY DISCLOSURES** 

Simon Tierney, son of the Trustee Ann Tierney, purchased the charity's Vauxhall Zafira for £1,300 which was at market rate. 

During the year Mrs M Walker, the spouse of a trustee received remuneration of £330 (2020: £481). 

During the year Mrs J Stanesby, the spouse of a trustee received remuneration of £5,451 (2020: £3,033). 

## **17. GUARANTEE STATUS** 

Gateway Freedom Church, Harlow is a charitable company limited by guarantee, incorporated on 7th August 2003. The company was established under a Memorandum of Association, which established the objects of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10. 

Page 18