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2020-08-31-accounts

Registered number: 05039715 Charity number: 1103392

CITY GATES CHURCH

(A Company Limited by Guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

CITY GATES CHURCH

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charitable company, its Trustees and 1
Advisers
Trustees' Report 2 - 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10 - 27

CITY GATES CHURCH

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS

FOR THE YEAR ENDED 31 AUGUST 2020

Trustees David Coleman,Chair
Robert Ashworth,Trustee
ZhangZhihong,Trustee
Company registered
number
05039715
Charity registered
number
1103392
Registered office
43-45 Camden Road
London
NW1 9LR
Accountants
Calculus Accountants and Tax Advisers Limited
Accountants
5 Priory Road
Loughton
Essex
IG10 1AF
Bankers
Barclays Bank Plc
Leicester
LE87 2BB
Co-Operative Bank Plc
PO Box 50
Skelmersdale
WN8 6YL
Solicitors
Lawson Lewis & Co
37 Brassey Avenue
Hampton Park
Eastbourne
East Sussex
BN22 9QD
Independent examiner
James Lambden
Calculus Accountants and Tax Advisers Limited
5 Priory Road
Loughton
Essex
IG10 1AF

Page 1

CITY GATES CHURCH

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees present their annual report together with the financial statements of the charitable company for the year 1 September 2019 to 31 August 2020. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the charitable company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

The charity is a charitable company limited by guarantee and was set up on 10 February 2004. It is governed by a Memorandum and Articles of Association. Its objects are:

  1. To promote and advance the Christian faith throughout the world generally including by the worship of God, the instruction and edification of Christians, the care and Christian instruction of young people and children and the evangelisation of non Christians.

  2. To relieve poverty, hardship, sickness and distress among peoples of the world.

  3. To promote education and training.

  4. To support such other charities and charitable purposes as the trustees shall decide.

Objectives and activities

a. Policies and objectives

The main activity of the charity is the promotion and advancement of the Christian faith; it does this through the activity of the church whose objectives include evangelism; pastoral care and community building; and worship and instruction in the Christian faith.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission (CC) relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Strategies for achieving objectives

Our strategy involves the charity operating through multiple sites within London (Soho, Camden and All Hallows-on-the-Wall), and engaging in a number of different projects which allow for new relationships with the public to be formed and the expansion of our social and outreach work.

During and as we come out of lockdown, the charity has been looking to increase its development of smaller groups within the church’s community which are providing pastoral care, teaching and outreach opportunities.

c. Activities undertaken to achieve objectives

The church is involved in a number of projects, including outreach in the Red-light area of Soho, the care of international students learning English in London, University students and the homeless. The church has also run “Better Job Project” courses to help those transitioning to new or more fulfilling job opportunities, Portuguese language classes, and “up-cycling”, alongside a number of other social and mission projects.

Church activities have been based in Soho, Camden and All Hallows-on-the-Wall, but due to Covid-19 restrictions, we have consolidated much of our work in the latter stages of the reporting period to our site in Camden. As a charity, we are looking for opportunities post lock-down to reopen our activities across all our sites, as and when appropriate and in line with Government guidelines.

International mission continues to be supported in a wide portfolio of areas across the world.

Page 2

CITY GATES CHURCH

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Objectives and activities (continued)

d. Volunteers

Like most churches the charity is grateful for the unstinting efforts of its members who work towards achieving its objects as volunteers.

e. Main activities undertaken to further the charitable company's purposes for the public benefit

The charity has due regard to guidance published by the CC on public benefit. The charity's commitment to promote the Christian faith creates an opportunity for all to hear the gospel and respond to it. Historically there is much testimony as to the benefit of faith and the lifestyle that goes with it, as it produces those who are willing to love, serve and care for those less fortunate than themselves.

This is evidenced in the charity’s commitment to relieve hardship amongst sex-workers in London, the training of overseas students through its free English classes, and its commitment to overseas projects run by our mission partners. Our members are involved in a variety of work that gives rise to public benefit too numerous to mention, and the work of the church is to support them to persevere in it. As it says in Hebrews 10:24 "spur one another on to love and good deeds”.

Achievements and performance

a. Main achievements of the charitable company

• We continued to hold Sunday services during the reporting period, where Covid-19 restrictions permitted. During Covid-19, the activities of the church transitioned first to being a virtual collective gathering and as restrictions have eased, have been consolidated to our Camden site.

• We have developed and began to utilise our Camden missional hub, which serves alongside a coffee shop run by a charity with whom we work.

• Numbers at our homeless drop-in continued to grow until lockdown. Due to the layout of our Soho site, we were unable to continue running the homeless drop-in site during lockdown, but we have looked and continue to look for alternative ways to continue the provision of meals, discussion, mentoring and voluntary opportunities (see below).

• Since lockdown restrictions have been in place we have sought to maintain as many of the activities above as possible, and have expanded in some areas, such as:

Page 3

CITY GATES CHURCH

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The trustees have examined the charity’s requirements for reserves in light of the main risks to the organisation. They have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be approximately 3 months of expenditure, which at current levels amounts to approximately £35,500 (after adjusting for the impact of Covid-19 in 2019/20). The trustees are pleased to report that unrestricted reserves currently exceed this threshold, however, income and expenditure of activities have reduced in recent years and the trustees hope to reverse this trend, so the current level of reserves is not felt to be excessive. Recent guidance from the Charity Commission recommends that charities should hold up to 6 months operating costs in reserves, which at current levels would be £71,000 against the unrestricted reserves of £117,764. Restricted funds held at 31 August 2020 were £3,832 and represent amounts received but not spent before the end of the year; the trustees expect these to be spent during 2020/21.

c. Principal funding

Historically, the charity has been funded by donations from members of the church congregation topped up by Gift Aid tax relief reclaimed from HM Revenue and Customs. However, during 2019/20 Covid-19 related grant funding made up 22% of incoming resources, which resulted in a surplus of £45,583 some of which will be used for mission support in 2020/21.

Structure, governance and management

a. Constitution

City Gates Church is registered as a charitable company limited by guarantee and is governed by its Memorandum and Articles of Association.

b. Methods of appointment or election of Trustees

One third of the trustees shall retire by rotation. Unless otherwise determined by the Charity in general meeting, the term of office of a trustee shall continue until he retires or is removed in accordance with the relevant provisions of the Articles. The appointment of trustees is in accordance with the provisions of the company’s Articles of Association.

c. Organisational structure and decision-making policies

The Charity is governed by its trustees who are also the directors and meet regularly to manage its affairs. The charity engaged four staff at different points during the year ended 31 August 2020, making up a maximum of 2 full time equivalents, who were engaged in charitable activities, finance and day to day administration. Although only three of the staff team were paid by the Charity. Day to day management is delegated to the church leadership team. The trustees make the major decisions regarding the funds of the charity. This would include the purchase or sale of major property assets and decisions with major funding implications.

Page 4

CITY GATES CHURCH

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management (continued)

d. Related party relationships

City Gates Church works closely with another charity, Turn Trust, who provides office facilities at the registered office and trainees who help deliver the City Gates activities, the Living Room cafe is operated as a joint venture from which Turn Trust receives a profit share. Both B A Skrentny (senior pastor) and R H Ashworth (trustee) are involved in the day to day management of Turn Trust.

e. Financial risk management

The Trustees have assessed the major risks to which the charitable company is exposed, in particular those related to the operations and finances of the charitable company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks, including insurance arrangements. The trustees do not envisage any significant external risks to funding which will not be met by church member donations. Internal control risks are being minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are being put in place to ensure the compliance with health and safety of staff, church members, volunteers, and visitors.

f. Trustees' indemnities

The charitable company's annual insurance arrangements include cover for trustee indemnity although the premium is not broken down to indicate the cost of providing the cover.

g. Compliance with laws and regulations

The trustees confirm that the charity has complied with all legal and regulatory requirements for charitable companies registered under the Companies Act 2006 and the Charities Act 2011.

Plans for future periods

Working with our training partners and volunteers we are looking forward to fully re-opening and expanding the number of social outreach and mission projects.

Of particular focus will be our base in Camden, developing new streams of connection with local residents, and interested parties. We hope to replicate some of those successful social projects which we have run for many years, benefiting those we connect with.

We will also look to re-open our work in Soho as soon as practicable, increasing the numbers of people we are helping and supporting.

Funds held as custodian

The members of City Gates congregation give to specific projects, individuals or charities via earmarked gifts received during church services. These funds are banked by the charity and passed on the specified project or charity. During the year, £8,837 including Gift Aid was received in this way and all was paid out during the year.

Members' liability

The Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up.

Page 5

CITY GATES CHURCH

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees on 12 July 2021 and signed on their behalf by:

David Coleman (Jul 28, 2021 17:17 GMT+1)

................................................ David Coleman (Chair of Trustees)

Date: Jul 28, 2021

Page 6

CITY GATES CHURCH

(A Company Limited by Guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Independent Examiner's Report to the Trustees of City Gates Church ('the charitable company')

I report to the charity Trustees on my examination of the accounts of the charitable company for the year ended 31 August 2020 which comprise the Statement of Financial Activities (incorporating the Income and Expenditure Account) and the Balance Sheet and supporting Notes to the Financial Statements.

Responsibilities and Basis of Report

As the Trustees of the charitable company (and 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 charitable 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 the charitable company's accounts 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 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 charitable 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.

This report is made solely to the charitable company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charitable company's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charitable company and the charitable company's Trustees as a body, for my work or for this report.

Signed: Dated: Aug 2, 2021 James Lambden FCA, CTA

Calculus Accountants and Tax Advisers Limited

Accountants 5 Priory Road Loughton Essex IG10 1AF

Page 7

CITY GATES CHURCH

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Other income
8
Total income
Expenditure on:
Charitable activities
10
Total expenditure
Net income
Transfers between funds
21
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
126,728
732
4,672
1,140
885		 Restricted
funds
2020
£

8,832

-

-

-

-		 Total
funds
2020
£

135,560

732

4,672

1,140

885		 Total
funds
2019
£

127,427

13,677

10,148

975

1,221
134,157
8,832
142,989
153,448

92,089


5,317


97,406

147,314
92,089
5,317
97,406
147,314






42,068
3,515
45,583
6,134
(56)
56
-		 -
42,012
3,571
45,583
6,134

75,752
42,012


261

3,571


76,013

45,583


69,879

6,134
117,764
3,832
121,596
76,013

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 10 to 27 form part of these financial statements.

Page 8

REGISTERED NUMBER: 05039715

CITY GATES CHURCH

(A Company Limited by Guarantee)

BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2020

Note
Fixed assets
Tangible assets
16
Current assets
Debtors
17
Investments
18
Cash at bank and in hand
Creditors:amounts falling due within one year
19
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
21
Unrestricted funds
21
Total funds		 7,860
33,500
80,903		 2020
£
2,914
2,914

4,116

33,500

39,342

76,958

(5,526)
118,682
121,596
121,596
121,596
3,832
117,764
121,596		 2019
£
4,581
4,581





71,432
122,263
(3,581)
76,013
76,013
76,013

261
75,752
76,013

The charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees on 12 July 2021 and signed on their behalf by:

David Coleman (Jul 28, 2021 17:17 GMT+1) David Coleman (Chair of Trustees)

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

Robert Ashworth (Aug 2, 2021 10:26 GMT+1) ................................................ Robert Ashworth (Trustee)

Date: Jul 28, 2021

The notes on pages 10 to 27 form part of these financial statements.

Page 9

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. General information

The charity is a private company limited by guarantee incorporated in England and Wales, the address of the registered office is shown on page 1. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), 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), the significant accounting policies detailed below and in accordance with applicable legislation (the Companies Act 2006 and the Charities Act 2011).

City Gates Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The charity is dependent on continuing donations from members of the congregation and, as a consequence, the going concern basis is also dependent on these donations continuing. There is no indication that they will be discontinued in the foreseeable future.

2.3 Income

All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the repayment claim.

Other income from charitable activities or trading activities is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

The charity recives gifts in kind from volunteers, however volunteer time is not recognised in the accounts either as income or an expense as it is impractical to measure this with any degree of accuracy.

Page 10

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charitable company's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of Financial Activities as the related expenditure is incurred.

2.6 Taxation

The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charitable company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 11

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Plant and machinery - 25% on straight line basis
Fixtures and fittings - 25% on straight line basis
Office equipment - 25% on straight line basis
Computer equipment - 25% on straight line basis
Other fixed assets - 25% on straight line basis

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charitable company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.11 Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised 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.

2.12 Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Page 12

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.13 Pensions

The charitable company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charitable company to the fund in respect of the year.

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes. These funds are held to finance working capital and capital investment.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The key assumptions concerning the future and at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

Tangible fixed assets: tangible fixed assets are depreciated over their useful lives considering residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on several factors. In re-assessing asset lives factors such as technological innovation, product life cycles and maintenance programmes are considered. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Carrying value at 31 August 2020 is £2,914 (2019: £4,581).

Other key sources of estimation uncertainty and assumptions:

Allocation of administration costs: a proportion of expenditure is either not directly attributable to specific projects or related to the central administration of the charity. In determining how to allocate these costs the trustees have considered the level of activities in each project, use of facilities and administrative support.

The charitable company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Page 13

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

4. Income from donations and legacies

Unrestricted
funds
2020
£
Donations
101,718
Grants
25,010
126,728
Unrestricted
funds
2019
£
Donations
118,590
Income from charitable activities
Income from charitable activities - Living Room cafe (including GLO and
GDM)
Income from charitable activities - Weekend Away
Unrestricted
funds
2019
£
Income from charitable activities - Living Room cafe
(including GLO and GDM)
3,637
Income from charitable activities - Weekend Away
1,245
4,882		 Unrestricted
funds
2020
£
101,718
25,010		 Restricted
funds
2020
£

3,832

5,000		 Total
funds
2020
£

105,550

30,010
126,728
8,832
135,560

Unrestricted
funds
2019
£
118,590

Restricted
funds
2019
£

8,837

Total
funds
2019
£

127,427
Unrestricted
funds
2020
£
732
-		 Total
funds
2020
£

732

-
732
732
Restricted
funds
2019
£

-

8,795		 Total
funds
2019
£

3,637

10,040
4,882
8,795
13,677

5. Income from charitable activities

Page 14

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

6. Income from other trading activities

Income from fundraising events

Fundraising miscellaneous
Income from non charitable trading activities
Charity trading income - Domestic (Living Room Cafe)
Charity trading income - Domestic (Living Room Cafe)
Investment income
Investment income - other local unlisted
Investment income - other local unlisted		 Unrestricted
funds
2020
£
18		 Total
funds
2020
£

18		 Total
funds
2020
£

18		 Total
funds
2019
£

-
Unrestricted
funds
2020
£
4,654		 Total
funds
2020
£

4,654

Unrestricted
funds
2019
£
10,148

Total
funds
2019
£

10,148
Unrestricted
funds
2020
£
1,140		 Total
funds
2020
£

1,140

Unrestricted
funds
2019
£
975




Total
funds
2019

£
975

7. Investment income

Page 15

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. Other incoming resources

Other incoming resources (Employment Allowance)
Other incoming resources (Employment Allowance)
Analysis of grants
Grants, Mission support
Grants, Designated gifts
Grants, Mission support
Grants, Designated gifts		 Unrestricted
funds
2020
£
885		 Total
funds
2020
£

885
Total
funds
2019
£

1,221
Unrestricted
funds
2019
£
1,221
Grants to
Individuals
2020
£
9,550
2,732		 Total
funds
2020
£

9,550

2,732
12,282
12,282

Grants to
Individuals
2019
£
9,350
4,873

Total
funds
2019
£

9,350

4,873
14,223
14,223

9. Analysis of grants

Page 16

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

10. Analysis of expenditure on charitable activities

Summary by fund type

City Gates congregation
Mission support
Designated gifts
Living Room cafe (including GLO and GDM)
Weekend Away
Governance costs
City Gates congregation
Mission support
Designated gifts
Living Room cafe (including GLO and GDM)
Weekend Away
Governance costs		 Unrestricted
funds
2020
£
68,731
9,550
-
11,241
-
2,567		 Restricted
funds
2020
£

-

-

3,532

1,468

317

-		 Total
funds
2020
£

68,731

9,550

3,532

12,709

317

2,567
92,089
5,317
97,406

Unrestricted
funds
2019
£
82,286
9,356
-
33,873
-
2,485

Restricted
funds
2019
£

-

-

5,873

2,858

10,583

-

Total
funds
2019
£

82,286

9,356

5,873

36,731

10,583

2,485
128,000
19,314
147,314

Summary by expenditure type

City Gates congregation
Mission support
Designated gifts
Living Room cafe (including GLO and GDM)
Weekend Away
Governance costs		 Staff costs
2020
£
27,260
-
-
-
-
-

Other costs
2020

£

41,471

9,550

3,532

12,709

317

2,567

Total
funds
2020

£

68,731

9,550

3,532

12,709

317

2,567
27,260
70,146
97,406

Page 17

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

10. Analysis of expenditure on charitable activities (continued)

Summary by expenditure type (continued)

City Gates congregation
Mission support
Designated gifts
Living Room cafe (including GLO and GDM)
Weekend Away
Governance costs		 Staff costs
2019
£
31,706
-
-
3,750
-
-

Other costs
2019

£

50,580

9,356

5,873

32,981

10,583

2,485

Total
funds
2019

£

82,286

9,356

5,873

36,731

10,583

2,485
35,456
111,858
147,314

11. Analysis of support costs

Pension costs
Administration staff and consultants
Depreciation
Office running costs
Governance costs
Total 2020
Pension costs
Mission support
Administration staff and consultants
Depreciation
Office running costs
Governance costs
Total 2019		 City Gates
congregation
2020
£
303
19,184
2,441
3,901
-		 Mission
support
2020
£

-

-

-

-

-		 Governance
costs
2020
£

-

-

-

-

2,567		 Total
funds
2020
£

303

19,184

2,441

3,901

2,567
25,829
-		 2,567
28,396

City Gates
congregation
2019
£
257
-
19,293
2,410
4,031
-
Mission
support
2019
£

-

6

-

-

-

-
Governance
costs 2019
£

-

-

-

-

-

2,485

Total
funds
2019
£

257

6

19,293

2,410

4,031

2,485
25,991
6
2,485
28,482

Page 18

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

12. Analysis of expenditure by activities

Activities
undertaken
directly
2020
Grant
funding of
activities
2020
£
£
City Gates congregation
42,902
-
Mission support
-
9,550
Designated gifts
800
2,732
Living Room cafe (including GLO and GDM)
12,709
-
Weekend Away
317
-
Governance costs
-
-
56,728
12,282
Activities
undertaken
directly
2019
Grant
funding of
activities
2019
£
£
City Gates congregation
56,295
-
Mission support
-
9,350
Designated gifts
1,000
4,873
Living Room cafe (including GLO and GDM)
36,731
-
Weekend Away
10,583
-
Governance costs
-
-
104,609
14,223
Independent examiner's remuneration
Fees payable to the charitable company's independent examiner for the
independent examination of the charitable company's annual accounts
Fees payable to the charitable company's independent examiner in respect
of:
All accountancy and other services not included above		 Activities
undertaken
directly
2020
£
42,902
-
800
12,709
317
-		 Grant
funding of
activities
2020
£

-

9,550

2,732

-

-

-		 Support
costs
2020
£

25,829

-

-

-

-

2,567		 Total
funds
2020
£

68,731

9,550

3,532

12,709

317

2,567
56,728
12,282
28,396
97,406

Activities
undertaken
directly
2019
£
56,295
-
1,000
36,731
10,583
-

Grant
funding of
activities
2019
£

-

9,350

4,873

-

-

-

Support
costs
2019
£

25,991

6

-

-

-

2,485

Total
funds
2019
£

82,286

9,356

5,873

36,731

10,583

2,485
104,609
14,223
28,482
147,314


2020
£
650
2,005

2019
£

630

1,960

13. Independent examiner's remuneration

Page 19

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

14. Staff costs

Staff costs
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2020
£
25,759
885
615		 2019
£

32,714

1,221

1,521
27,259
35,456

The average number of persons employed by the charitable company during the year was as follows:

Charitable activities
Management and administration		 2020
No.
2
1		 2019
No.

2

1
3
3

No employee received remuneration amounting to more than £60,000 in either year.

15. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL)

During the year ended 31 August 2020, no Trustees expenses have been incurred (2019 - £NIL) .

Page 20

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16. Tangible fixed assets

Cost or valuation
At 1 September 2019
Additions
At 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Fixtures and
fittings
£
6,886
-
 Plant and
machinery
£

1,408

774
 Office
equipment
£

14,869

-
 Computer
equipment
£

3,102

-
 Total
£

26,265

774
6,886
2,182
14,869
3,102
27,039
6,886
-
606

506
11,641

1,660
2,551

275
21,684

2,441
6,886
1,112
13,301
2,826
24,125
-
1,070
1,568
276		 2,914
-
802


3,228

551
4,581

Page 21

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

17. Debtors

17.
Debtors
Due within one year
Other debtors
Prepayments and accrued income
18.
Current asset investments
Unlisted investments
19.
Creditors: Amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income
20.
Financial instruments
Financial assets
Financial assets measured at fair value through income and expenditure		 2020
£
3,162
4,698		 2019
£

2,950

1,166
7,860
4,116

2020
£
33,500

2019
£

33,500

2020
£
20
45
3,516

2019
£

20

47

5,459
3,581
5,526

2020
£
114,403

2019
£

72,842

Financial assets measured at fair value through income and expenditure comprise investment bonds and bank balances

Other financial liabilities measured at fair value through income and expenditure comprise trade creditors accruals and deferred income.

Page 22

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

21. Statement of funds

Statement of funds - current year

Unrestricted funds
City Gates Congregation
Mission support
Living Room café (including GLO and GDM)
Restricted funds
Community outreach
Designated gifts
Weekend Away
Total of funds		 Balance at 1
September
2019
£
75,752
-
-		 Income
£

103,291

-

30,866		 Expenditure
£

(71,298)

(9,550)

(11,241)		 Transfers
in/out
£

10,019

9,550

(19,625)		 Balance at
31 August
2020
£

117,764

-

-

117,764

3,532

300

-

3,832

121,596
75,752
134,157
(92,089)
(56)
-
-
261
5,000

3,832

-

(1,468)

(3,532)

(317)


-

-

56
261
8,832
(5,317)
56
76,013
142,989

(97,406)

-

Page 23

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

21. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
City Gates Congregation
Living Room café (including GLO and GDM)
Restricted funds
Mission Support
Weekend Away
Total of funds		 Balance at
1 September
2018
£
67,490
-		 Income
£

118,210

17,606		 Expenditure
£

(85,571)

(36,731)		 Transfers
in/out
£

(24,377)

19,125		 Balance at
31 August
2019
£

75,752

-

75,752

-

261

261
76,013
67,490
135,816
(122,302)
(5,252)
1,585
804
8,837

8,795

(14,429)

(10,583)


4,007

1,245
2,389
17,632
(25,012)
5,252
69,879
153,448

(147,314)

-

Page 24

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

22. Summary of funds

Summary of funds - current year

General funds Restricted funds

Summary of funds - prior year

General funds Restricted funds

Balance at 1
September
2019
£
75,752
261		 Income
£

134,157

8,832		 Expenditure
£

(92,089)

(5,317)		 Transfers
in/out
£

(56)

56		 Balance at
31 August
2020
£

117,764

3,832

121,596
Balance at
31 August
2019
£

75,752

261
76,013
76,013
142,989
(97,406)
-

Balance at
1 September
2018
£
67,490
2,389

Income
£

135,816

17,632

Expenditure
£

(122,302)

(25,012)
Transfers
in/out
£

(5,252)

5,252
69,879
153,448
(147,314)
-

Page 25

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

23. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets
Current assets
Creditors due within one year
Total
Analysis of net assets between funds - prior period
Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
2,914
118,431
(3,581)		 Restricted
funds
2020
£

-

3,832

-
 Total
funds
2020
£

2,914

122,263

(3,581)
117,764
3,832
121,596

Unrestricted
funds
2019
£
4,581
76,697
(5,526)

Restricted
funds
2019
£

-

261

-

Total
funds
2019
£

4,581

76,958

(5,526)
75,752
261
76,013

24. Pension commitments

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable by the charitable company to the fund and amounted to £615 (2019 - £1,521) and £45 was payable to the fund at the balance sheet date and is included in creditors.

Page 26

CITY GATES CHURCH

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

25. Operating lease commitments

At 31 August 2020 the charitable company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2020
£
14,500
33,833		 2019
£

14,500

48,333

62,833
48,333

26. Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.

27. Related party transactions

City Gates Church works closely with Turn Trust (charity number 1088758), operating the Living Room café as a joint venture from which Turn Trust receives a profit share, City Gates Church also re-imbursed Turn Trust for purchase of cafe equipment. Turn Trust provides trainees as volunteers to City Gates Church to help deliver ministry and projects. Turn Trust also provides shared office space at no cost. Gifts in kind are not recognised.

Turn Trust - Living Room Café Expenditure
2020
£
1,378
1,378

Trustee donations during the year amounted to £14,285 (three trustees).

28. Controlling party

The charitable company has no share capital and is therefore controlled by the directors who are the trustees acting together. The directors are appointed by the members in general meeting.

Page 27