REGISTERED CHARITY NUMBER: 1102624
Report of the Trustees and Financial Statements for the year ended 31 December 2021
For
THE REDEEMED CHRISTIAN CHURCH OF GOD GOD, HRMH
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Contents of the Financial Statements For the year ended 31 December 2021
| Page | |
|---|---|
| Report of the Trustees | 1 - 4 |
| Independent Examiners Reports | 5 |
| Statement of Financial activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 - 11 |
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Report of the Trustees
For the year ended 31 December 2021
The trustees present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' issued in 2005.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity number
1102624
Principal address
Main Road St. Paul's Cray Orpington BR5 3HQ
Trustees
Osike Itsagwede Chairman Teresa O Okodaso Trustee / Secretary Judith O Phillips (formerly Ajayi) Trustee Mylene Williams Trustee Olawale Olaniyi Trustee (Resigned 22 October 2019)
Accountant
Deus Trinitas Consulting Ltd Chatham Kent
Bankers
LloydsTSB plc The Broadway Bexleyheath
HSBC Bank plc High Street Dartford
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Charity, Redeemed Christian Church of God, His Royal Majesty House ("RCCG HRMH") is controlled by its governing documents, a deed of trust and constitutes an unincorporated Charity. Decisions are determined by a simple majority vote by the trustees, the trustees set the strategic direction of the charity and authority has been delegated to the Pastoral Board and Administrative team for the day to day running of the operations of the Charity. New Trustees are selected on the basis of the contribution that they will make to the governance of the organisation and the skills that they will contribute. They are provided with copies of the Charity Commission's guidance to trustees and are given an introduction to the activities of the Charity by the existing board. Existing trustees are provided with training as and when required.
RCCG HRMH is a parish of the Redeemed Christian Church of God - a network comprised of churches all over the world. There is an agreement of common purpose entered into by RCCG HRMH with the Redeemed Christian Church of God which documents this relationship. A summary of transactions with those parties are set out in note 14 to the financial statements.
The trustees have assessed the major risks to which the Charity is exposed, in particular those relating to the specific operational areas of the charity and its finances. The trustees believe that by monitoring reserve levels, ensuring controls exist over key financial systems and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.
Charity number: 1102624
1
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Report of the Trustees For the year ended 31 December 2021
OBJECTIVES AND ACTIVITIES
Objectives and aims
a) The advancement of the Christian faith worldwide, in accordance with the doctrine set out in the statement of faith;
b) To use the excess funds of the charity towards the relief of poverty amongst children, homeless, communities and nations.
Significant activities
The principal activities of the church are:
Christian worship, outreach programmes to increase Christian awareness and to spread the gospel of our Lord Jesus Christ and the development of the whole man, spiritually, mentally and physically.
In determining how best to pursue these objects the trustees have had regards to the Charity Commission's guidance on public benefit.
We have one full time staff; one part time staff and numerous number of volunteers who assist in helping us achieve our objectives.
Financial Review
The trustees consider that the charity needs to hold reserves (i.e. unrestricted funds and not represented by fixed assets) equivalent to four months’ operating expenditure to ensure the ongoing delivery of its charitable objects, during unforeseen downturn in income. As at 31 December 2021, the lack of adequate free reserves is attributable to the fact the definition of free reserves excludes fixed assets which is fully paid up. For the purpose of short and medium term financial management, the trustees are more concerned with the management of working capital, the current working capital cover is well below their policy of holding free resources sufficient to fund four months' of ongoing unrestricted expenditure which would have covered the eventuality of a material decline in incoming resources.
The charity's principal funding source continues to be individuals who attend services and make contributions in the form of freewill offerings, tithes and special donations.
The charity's result for the year ended 31 December, 2021, was a net income of £10,505 (2020: £11,129 net expense). Last year's downturn in income donations was largely due to the COVID-19 pandemic and devastation caused in lives and livelihood; which would not be a fair comparison to the 2021 result. In comparison to previous years, this represents approximately 18% reduction in pre-covid years' results, with close monitoring of resources expended this enabled the charity to report a net income for the year. The trustees involvement in checking all expenses, validating and justifying the amount, type and necessity for any expense has ensured donations are prudently managed. Total income for the year was £110,025 (2020: £68,993).
Activities and Achievements
2020 largely left a trail of devastation financially, mentally and emotionally in its wake due to COVID-19 pandemic, towards the end and the beginning of 2021 the restrictions were slowly lifted but guidelines as to the numbers allowed to gather and the need to track and trace those attending services. Due to these measures, seating arrangements had to be reorganised in keeping with the safe distancing rules, these limitations impacted income donations but not to the same degree as prior year.
The majority of the restrictions were not sufficiently lifted or they were so late in the year that a significant number of the charity's annual scheduled activities had to be cancelled or moved online. In compliance with the Charity Commission's public benefit directive, the charity continued to support other charities in areas in line with its objects including:
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welfare support for families in the church that were hit financially and emotionally as described above, and
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slowly recovering; and
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partnered with local Food Banks to supply essential non perishable foods.
Charity number: 1102624
2
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Report of the Trustees For the year ended 31 December 2021
Activities and Achievements (cont'd)
We continued to provide informal counselling services to members of the church and the community irrespective of their race, culture or religious background, albeit predominantly online during the year. The church also acts to sign post members of the community to get professional help where the church is unable to assist through counselling.
The church's attempt to pursue the development of strong families within the local community and surrounding areas, as in 2020 was limited to online and remote support, as such we were not able to organise our annual Women's programme, which would normally involve women members of the church with invitation extended to women of all ages from the community, addressing issues ranging from parenting, relationship (marital and others), health & wellbeing as well as career development.
We continued our support and encouragement of the youth in the church and the community predominantly online, a trend that has enhanced attendance as such has been retained and would continue for the foreseeable future. The forum encourages them to develop themselves personally, morally, socially and most importantly spiritually. During the year, we were unable to organise any outing due to the pandemic. The church leadership continues to be supportive of the youth and young adults forum, providing a safe environment where they can be confident and free to express their creativity in a God glorifying way.
We continue to support African Missions, an aid and poverty relief agency supporting the under-privileged and children in Africa. We actively and strongly support the World Evangelical Mission which aims to further the Christian faith by alleviating poverty among missionaries all over the world. Our partnership with the local food bank has not sufficiently recovered to pre-COVID times but we plan to revive this outreach in the coming year as near all COVID restrictions have been lifted, we intend to connect with other local charities to help families coming out of the financial pressures.
Despite the pandemic and isolation, we continued our work helping people develop biblical principles that build their self esteem enabling them to fulfil their purpose and live a contented and more productive life.
Future Development
The charity aims, as part of fulfilling its main objectives, to create more facilities within and outside its current premises to help develop the whole man, spiritually, mentally and physically. The charity is committed to its vision to better serve the needs of the community, to create better facilities for all our members and the community at large; however the charity has yet again deferred its planned developments due to lack of funds and instead of running a deficit year on year, it was decided we will apply for funding from organisations that specifically support refurbishment of listed buildings, we are yet to secure interest in the project especially in relation to the roof replacement.
We will continue in our effort to be relevant in the community by investing time, energy and resources in activities and programmes that will prevent and reduce youth crime, teenage pregnancies, depression, homelessness and such social economic vices that are detrimental to the health of our community, which if successful will ultimately strengthen the family unit.
The charity plans to grow its membership and to continue to develop its members to make transformational changes in their lives, family and the community at large through teaching, coaching and spiritual empowerment.
Charity number: 1102624
3
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Report of the Trustees For the year ended 31 December 2021
STATEMENT OF TRUSTEES RESPONSIBILITIES
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.
The law applicable to charities in England and Wales, the Charities Act 1993, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees 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 incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to:
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Select suitable accounting policies and then apply them consistently;
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Observe the methods and principles in the charities SORP; and
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Make judgments and estimates that are reasonable and prudent; and
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables them to ensure that the financial statements comply with the Charities Act 1993, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditors/Independent Examiner
As the charity’s income and expenditure falls below the small charities threshold the trustees considers that the audit requirement of Section 43 (2) of the Charities Act 1993 (the Act) do not apply. The trustees will not be proposing the appointment of an auditor for the ensuing year.
This report was approved by the trustees on 19 October, 2022 and signed on its behalf by:
MR E O ITSAGWEDE
Chairman Board of Trustees
Charity number: 1102624
4
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Independent Examiner’s Report
To the members and trustees of the Redeemed Christian Church of God, HRMH
We report on the accounts of the church/charity for the year ended 31 December 2021, set out on pages 6 to 11 which have been prepared under the historical cost convention and in accordance with the accounting policies set out on pages 8.
Respective responsibilities of the 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 2012 (the Charities Act) and that an independent examination is needed.
It is my responsibility to:
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examine the accounts under section 145 of the Charities Act,
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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
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to state whether particular matters have come to my attention.
Basis of Independent examiner’s report
Our 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 our examination, no matter has come to our attention:
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which gives us reasonable cause to believe that in, any material respect, the requirements:
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to keep accounting records in accordance with Section 130 of the Charities Act; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charities Act
have not been met; or
- to which, in our opinion attention should have been drawn in order to enable a proper understanding of the accounts to be reached.
Signature Date: 20 October, 2022 Deus Trinitas Consulting Ltd
Charity number: 1102624
5
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Statement of Financial Activities For the year ended 31 December 2021
| Note Incoming Resources Voluntary income 2 Investment income 3 Other incoming resources 4 Total incoming resources Resources used Cost of generating funds 5 Charitable activities 6 Governance costs 7 Other resources used 8 Total resources used Net Incoming Resources Transfer between Funds Net Movements in funds Balance Brought forward Balance Carried Forward |
Unrestricted | Restricted | Total Funds | Total Funds | 2020 58,018 4 10,970 |
2020 | |||
|---|---|---|---|---|---|---|---|---|---|
| 2021 91,818 18 18,189 110,025 |
2021 | ||||||||
| fund 90,210 18 18,189 108,417 67,949 16,306 239 15,026 99,520 8,897 - |
fund 1,608 - - |
||||||||
| 1,608 | 68,993 |
||||||||
- - - - |
67,949 16,306 239 15,026 99,520 10,505 - |
55,975 8,810 - 15,336 |
|||||||
| - | 80,121 |
||||||||
| 1,608 - |
(11,129) - |
||||||||
| 8,897 292,657 301,554 |
1,608 - |
10,505 292,657 |
(11,129) 303,786 |
||||||
| 1,608 | 303,162 |
292,657 |
All incoming resources and resources expended derive from continuing activities.
The notes on pages 8 to 11 form part of these financial statements.
Charity number: 1102624
6
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Balance Sheet at 31 December 2021
| Fixed Assets Note Tangible assets 10 Current Assets Debtors 9 Cash at bank and in hand Creditors: amounts falling due within one year Net current assets Total assets less current liabilities Creditors: amounts falling due after one year Net assets Represented by: Unrestricted funds 12 General Designated Restricted funds 13 |
2021 249,000 249,000 40,086 16,666 56,752 - 56,752 305,752 - 305,752 301,554 - 301,554 1,608 303,162 |
2020 252,000 |
2020 |
|---|---|---|---|
| 252,000 21,997 19,810 |
|||
| 41,807 1,150 |
|||
| 40,657 | |||
| 292,657 - |
|||
| 292,657 | |||
290,949 - |
|||
| 290,949 1,708 |
|||
| 292,657 |
The financial statements were approved by the Board of Trustees on October 19, 2022 and were signed on its behalf by:
MR E O ITSAGWEDE Chairman of the Board of Trustees
The notes on pages 8 to 11 form part of these financial statements
Charity number: 1102624
7
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Notes to the financial statements For the year ended 31 December 2021
1. Accounting policies
The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value and in accordance with the Financial Reporting Standard for Smaller Entities (effective June 2002). The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), “ Accounting and Reporting by Charities” published in October 2008 and applicable accounting standards.
Incoming resources
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
When donors specify that donations and grants, including capital grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income will be included in incoming resources of restricted funds when receivable.
Resources expended
Expenditure is accounted for on an accrual 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.
Cost of generating funds
Costs of generating funds are those costs relating to the generation of income
Charitable activities
Costs of charitable activities are those costs relating to the activities carried out to meet the objectives of the church. These include both directly attributable costs and apportioned support costs.
Governance costs
Governance costs are the costs associated with the strategic direction of the organisation and with meeting regulatory responsibilities.
Tangible fixed assets
Individual fixed assets are capitalised at cost.
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
| of each asset over its estimated useful life. | |
|---|---|
| Annual rate | |
| Freehold / Long leasehold property | 1% |
| Fixtures and fittings | 10% |
| Church & Musical equipment | 10% |
| Motor vehicle and other fixed assets | 25% |
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Funds held by the charity are either:
Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Restricted funds - these are funds which has been received from donations or gifts for specific purposes and can only be used for the purpose for which it was given.
Further explanation of the nature and purpose of each fund are included in the notes to the financial statements.
Charity number: 1102624
8
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Notes to the financial statements
For the year ended 31 December 2021
| 2. Voluntary income Offering Tithes Other donations 3. Investment income Bank interest 4. Other incoming resources Gift aid income Other Income 5. Cost of generating funds Telephone, Electricity & Gas Stationery, Printing & postage Choir/Music Ministry Honorarium Church/Pastoral Expenses Ministers' allowance Rates & Water 6. Charitable activities Central Office support World Evangelical Mission (WEM) Special Events Donations - Other ministry 7. Governance costs Professional fees |
2021 11,236 79,207 1,375 91,818 2021 18 2021 18,089 100 18,189 2021 1,376 150 24,000 200 - 41,487 736 67,949 2021 1,200 14,506 600 - 16,306 2021 239 |
2020 10,474 44,375 3,170 |
|---|---|---|
| 58,018 | ||
| 2020 4 |
||
| 2020 10,970 - |
||
| 10,970 | ||
| 2020 2,090 47 24,000 - 196 29,019 622 |
||
| 55,975 | ||
| 2020 1,200 7,320 - 290 |
||
| 8,810 | ||
| 2020 - |
Charity number: 1102624
9
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Notes to the financial statements
For the year ended 31 December 2021
| 8. Other resources used 2021 Insurance 4,989 Bank charges 293 Office/computer supplies 144 Car Lease 6,600 Repairs/Maintenance - Depreciation 3,000 15,026 The trustees were not paid or reimbursed for expenses during the year. 9. Debtors 2021 Other receivables 40,085 |
2020 5,100 891 165 6,050 130 3,000 |
|---|---|
| 15,335 | |
| 2020 21,997 |
10. Tangible fixed assets
| 10. Tangible fixed assets | |||||
|---|---|---|---|---|---|
| Musical & | |||||
| Office | Motor | Church | |||
| Buildings | Equipment | Vehicles | furniture | Total | |
| £ | £ | £ | £ | £ | |
| Cost: | |||||
| At 1 January 2021 | 252,000 | - | - | - | 252,000 |
| Additions | - | - | - | - | - |
| Disposals | - | - | - | - | - |
| At 31 December 2021 | 252,000 | - | - | - | 252,000 |
| Depreciation | |||||
| At 1 January 2021 | 45,000 | 7,833 | - | - | 52,833 |
| Charge for year | 3,000 | - | - | - | 3,000 |
| Disposals | - | - | - | - | - |
| At 31 December 2021 | 48,000 | 7,833 | - | - | 55,833 |
| Net Book value | |||||
| At 31 December 2021 | 249,000 | - | - | - | 249,000 |
| At 31 December 2020 | 252,000 | - | - | - | 252,000 |
Charity number: 1102624
10
REDEEMED CHRISTIAN CHURCH OF GOD, HRMH
Notes to the financial statements For the year ended 31 December 2021
| 11. Unrestricted funds of the charity Brought forward @ 1 January 2021 Movement in funds for the year Amount transferred from/to Restricted funds Balance at 31 December 2021 12. Restricted Funds Brought forward @ 1 January 2021 Movement in funds for the year Amount expended Balance at 31 December 2021 |
2021 292,657 8,897 - 301,554 1,708 (100) - 1,608 |
2021 |
|---|---|---|
13. Analysis of net assets between funds
| 13. Analysis of net assets between funds | |||
|---|---|---|---|
| General | Restricted | Total | |
| Tangible Fixed assets | 249,000 | - | 249,000 |
| Net Current assets | 55,144 | 1,608 | 56,752 |
| Current & long term liabilities | - | - | - |
| 304,144 | 1,608 | 305,752 |
14. Related parties disclosure
The minister in charge is a connected person to one of the members of the trustees. The relevant trustee was not involved in any way in the proposal, discussions or approval of any allowance payable or paid to the minister in charge. Furthermore, none of the trustees received payment for expenses or services provided in their capacity as Trustees.
In relation to the agreement of common purpose, contributions were made as follows: £1,200 (2020:£1,200) to the Central office and to the Festival of Life £14,506 (2020: £7,320) to the World Evangelical Mission (WEM).
Charity number: 1102624
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