2021-12-31-accounts - River Church Sutton

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

River Church Sutton

Trustees’ Annual Report

1 January 2021 to 31[st] December 2021

Contents	Page
Charity Information	2
Trustees' Annual Report	3 - 6
Statement of Financial Activities	7-11
Independent Examiner's Report	12

Charity Contact information

River Church Sutton

Charity Registration Number: 1104168

Principal office

River Church Sutton Highfield Hall 320 Carshalton Road Sutton SM5 3QB

Trustees

Steve Musters (Chair) Roz Ullman Simon Waters

Independent Examiner

Peach Accounting

Due to unforeseen circumstances, we have had to change our Independent Examiner which has caused a delay in finalising the financial statement and lead to us filing late this year.

Bankers

Santander Business Banking Centre, 287-301 St. Vincent Street,

Glasgow G2 5NT

Objectives of the charity

i) To advance the Christian faith and express God’s love through practical support and compassion for those in physical, mental and spiritual hardship, without discrimination or passing judgment.

ii) To promote such charitable purposes as which benefit the local community and those overseas, bringing hope through the message of Jesus Christ.

Achievements and performance

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit.

Review of activities

Some activities have had to be altered or suspended during the year due to the lockdown rules and government advice.

Sunday Morning Services are a key way we serve our community by gathering together to worship, listen to teaching from the bible and offer prayer. This year started with a lockdown, due to the Covid pandemic, that prevented gathering in numbers. However, we were able to live-stream our services that helped people connect. We preached on looking after our wellbeing. From Easter we gathered in-person at Highfield Hall once again, observing government guidance at all times, while also continuing our online service for those unable to attend in person.
Kids and Youth. We were able to run an online kids program every Sunday and the youth group met online each week. This proved invaluable, particularly for the youth as they were offered emotional and spiritual support.
Mid Week groups continued to meet on Zoom and, along with WhatsApp group chats, helped people feel connected. Our group leaders did an amazing job ensuring no one felt left out.
Prayer continues to underpin all that we do as a church. We were able to hold two weeks of prayer online along with regular monthly prayer meetings.
The Alpha Course offers people an opportunity to explore faith and spirituality in a safe and relaxed environment. We ran two courses this year which were a huge success, with several people finding faith and developing deep friendships.
Church Planting: In February 2021 we launched a new church in Epsom called Gateway Church. We sent out two key leaders along with around 15 church members, to start this new work in the town of Epsom. We continue to support them financially and in prayer.
Highfield Hall continues to be a hub for the community and this year has hosted dance classes, toddler groups, exercise classes, creative workshops as well as kids parties at the weekends. We started a free badminton club to encourage fitness (post lockdown) and develop friendships. The hall also continues to be a good revenue stream for us.
Community Foodshop: We had the privilege of hosting the Sutton Community Foodshop at Highfield Hall while its own premises, in the St. Nicholas Centre, was in lockdown. This allowed people on low incomes to access good quality food. The Foodshop moved back to the St. Nicholas Centre at the end of April as restrictions lifted.

Review of activities (continued)

Sutton Community Works: We continue to support both financially and through volunteers, Sutton Community works, the charity through which several churches in the borough operate initiatives such as Sutton Foodbank, Foodshop, Street Pastors, School Pastors and homeless ministries. We also offer them office space at Highfield Hall for no charge.
New Ground: We continue to be part of New Ground family of churches. We give regular financial support, which goes towards church planting and equipping leaders, nationally and internationally. We also receive training, support and accountability from the New Ground team.
Welcoming people from Hong Kong: Sutton is a key place for people from Hong Kong to relocate to. As a church we signed up with Welcome churches to be a "Hong Kong friendly church".
Mental Heath Support: As we emerged from lockdown it became clear that there was a real need to support those caring for loved ones with mental health needs. We launched a monthly group called “Space to Breathe” to facilitate open and honest conversation and support.

Future plans

Looking ahead to 2022 we plan the following:

To continue to build community and serve our borough through acts of service.
To continue to encourage and equip members to participate in every part of church life – gathering, serving, giving, praying and reaching out to those around them.
To develop Highfield Hall Coffee Lounge into a ‘Safe Space’ for those who feel isolated or vulnerable.
To recruit a weekend caretaker to look after the weekend bookings.
To continue to raise leaders and develop small groups

Structure, governance and management

Type of governing document

Trust Deed dated 29 October 2003 as amended on 13 June 2016

River Church Sutton is a registered charitable trust, number: 1104168.

Trustee recruitment and appointment

The policy and operating decisions of the charity rest with the trustees who meet regularly to monitor the activities of the charity. New trustees are recruited and appointed by the existing trustees and receive relevant training. Tom Lawton and Vlada Rakin have stepped down from being trustees and Simon Waters has been appointed. We are currently looking to recruit one or two more trustees at the beginning of 2022 to gain a broader mix of skills.

Organisational structure and decision-making policies

River Church Sutton is a charismatic evangelical Church, which has been established in Sutton since 2004.

The trustees delegate responsibility for the day-to-day running of the charity's activities to the Leadership Team personnel. Trustees approve an annual budget each year, with nonregular items outside of budgeted amounts that exceed £250 requiring additional trustee approval.

Related party relationships

River Church Sutton is a separate and self-governing church, but is also part of the New Ground group in the NewFrontiers family of Churches and a member of the Evangelical Alliance.

We enjoy great working partnerships with several other local churches in the borough through which Sutton Community Works was founded.

Financial risk management

The Trustees have carried out a risk assessment regarding the Church’s operations and are continually taking action to ensure that the risks are minimized as much as possible.

Reserves Policy

The Church’s Reserves Policy is to retain approximately 3 months of essential operating expenditure, which would be approximately £30,000.

Principal funding

River Church Sutton receives the majority of its income as donations from members who have informally or formally committed to regular giving. On going financial support is encouraged of new and existing members, but such support is not a requirement of membership and there is no pressure to give. Most Church members have been able to continue their regular giving despite the Covid-19 pandemic.

The Church also holds 'gift days' from time to time to support specific projects or fundraising targets. A majority of church members use the HMRC 'Gift Aid' scheme where possible.

Hall hire also contributes to our income. We offer competitive rates and prioritise chartable and community focused events.

Financial review

The financial statements show total incoming of £175,349, an increase of 3.5% on 2020 (£168,928). Giving reduced marginally in 2020 however rental income rose by over 50% as a result of demand post-covid. This trend continues into 2022.

Expenses in the year totalled £150,596, a decrease of 5.1% on 2020 (£158,721). Strong control over costs was exercised over the period, with savings in payroll costs due to reduced headcount which enabled the Charity to donate more as a result with donations up to £56,248 (2020: £27,509).

The result was a surplus of £15,592 for the year, a significant improvement over 2020 which showed a deficit of £3,714. The total accumulated reserves stood at £233,933 of which net current assets account for £57,519 demonstrating the Charity has liquidity to cover its reserves policy.

The charity still benefits from low interest rates, however at the time of writing the Bank of England (BOE) base rate has increased to 4.25% vs 0.25% at the reporting date which will impact the Charities cost of debt held. The Charity however believes it can manage the additional cost.

In preparing the financial statements in the recommended SORP format, the new accountants highlighted a number of mis-postings for previous years which have been restated for 2020, the most significant of which is to increase the asset position of the charity by £15,030. A reconciliation can be found in note 7 of the financial statements.

Declaration

The Trustees declare that they have approved the trustees’ report above.

Signed on behalf of the Trustees:

………………………………… Chair - Steve Musters

Financial Statements for the year ended 31 December 2021

STATEMENT OF FINANCIAL ACTIVITIES

STATEMENT OF FINANCIAL ACTIVITIES
Income and endowments from Donations Charitable activities Investment income Total Expenditure on Charitable activities Net income Reconciliation of Funds Accumulated Funds Bfwd Accumulated Funds Cfwd STATEMENT OF FINANCIAL POSITION Fixed Asset Note Tangible Assets 2 Current Assets Debtors 3 Cash and cash equivalents	(Restated) 2021 2020 £ £ 138,489 145,356 36,858 23,509 2 63 175,349 168,928 159,757 172,642 15,592 (3,714) 218,341 222,055 233,933 218,341 522,593 511,621 14,816 18,239 60,997 63,129
Current Liabilities 4 Net Current Assets (Liabilities) Total Assets less Current Liabilities Non-Current Liabilities 5 Net Assets Accumulated Funds	75,813 81,368 (18,294) (17,219) 57,519 64,149 580,112 575,770 (346,179) (357,429) 233,933 218,341 233,933 218,341

1 Accounting Policies

Basis of preparation

The financial statements of the charity have been prepared in accordance with the Charities SORP (FRS102). The financial statements have been prepared under the historical cost convention.

Income

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

Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs 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

Tangible fixed assets are stated at cost.

Building and improvements are held at cost and revalued periodically at the discretion of the board of trustees.

Equipment and other assets are capitalised at cost and depreciated over their useful economic life of the asset concerned at 10% per annum on a reducing balance basis.

Taxation

The Company is a registered Charity and, in the opinion of the trustees, is exempt from corporation tax on its surpluses on financial activities in accordance with section 486 of the corporation tax act 2010.

2 Tangible Assets Cost At 1 January 2021 Additions At 31 December 2021 Depreciation At 1 January 2021 Charged in the year At 31 December 2021 Net Book Value At 31 December 2021 At 31 December 2020	Buildings and improv. Equip. and other assets Total 507,438 5,623 513,061 9,860 1,700 11,560
	517,298 7,323 524,621
	- 1,440 1,440 588 588
	- 2,028 2,028
	517,298 5,295 522,593
	507,438 4,183 511,621

3 Debtors Hall Rent Gift Aid Receivable 4 Current Liabilities Deposits Held Tax and Social Security Accruals Capital Lease Obligations 5 Non-current Liabilities Capital Lease Obligations	(Restated) 2021 2020 £ £ 1,222 157 13,594 18,082 14,816 18,239 (Restated) 2021 2020 £ £ 1,915 790 498 2,550 5,488 3,081 10,393 10,798 18,294 17,219 (Restated) 2021 2020 £ £ 346,179 357,429 346,179 357,429

6 Average Number of Employees

During the year the average number of employees was 2 (2020: 3).

7 Prior Period Restatement

During the preparation of the accounts it was discovered that the period period accumulated funds were materially mistated. This has been restated and reconciled below:

Originally reported Gift recognised as a long term liability Restatement of Gift Aid Receivable Restatement of PAYE / pension liability Restatement of Fixed Assets not capitalised Depreciation never recognised Immaterial restatements Restated accumulated funds as at 1 Jan 2020	207,025 (5,000) 17,766 2,165 1,000 (975) 74
	222,055

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

Donations Gift Aided Giving Non Gift Aided Giving Tax Reclaimed Charitable Activities Rental Income Events Investment Income Interest Received Total Incoming Resources Wages and Salaries Salaries, Wages and Benefits-in-Kind Social Security Costs Pension Costs Property Costs Rate and Utilities Light and Heat Repairs and Maintenance Conference Expenses Registrations Travel and Subsistence Church Activity Costs Evangelism Books and Publications Hospitality Gifts and Donations Miscellaneous Expenses	2021 £ 106,219 5,727 26,543 138,489 36,858 0 36,858 2 175,349 57,430 1,508 5,557 64,495 1,337 5,029 5,099 11,465 652 0 652 153 286 808 56,248 867 58,362	(Restated) 2020 £ 109,943 8,783 26,630
		145,356 23,404 105
		23,509 63

		168,928
		98,850 2,461 6,248
		107,559 1,463 6,673 3,654
		11,790 748 281
		1,029 217 31 447 27,509 1,302
		29,506

DETAILED STATEMENT OF FINANCIAL ACTIVITIES (CONT)

Church Running Costs Telephone and Internet Subscriptions Insurance Office Supplies Audio/ Visual Professional Fees Depreciation Finance Costs Interest Payable Total resources expensed Surplus (Deficit) for the year	2021 £ 1,924 1,343 3,222 539 3,439 450 588 11,505 13,278 159,757 15,592	(Restated) 2020 £ 1,422 1,536 3,217 404 571 1,008 465
		8,623 14,135

		172,642

		(3,714)

7 Jacquard Apartments 11 Courthouse Way London, SW18 4PG

+44 7342 631 057 (t) info@peachaccounting.co.uk (e)

Director:

David Pestell, ACA

12 April 2023

The Members

River Church Sutton Highfield Hall 320 Carshalton Road SURREY SM5 3QB

Client Ref: RIV01

Independent examiner’s report to the trustees of River Church Sutton

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

Responsibilities and basis of report

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:

the accounting records were not kept in accordance with section 130 of the Charities Act; or
the accounts did not accord with the accounting records; or
the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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 to enable a proper understanding of the accounts to be reached.

David Pestell ACA Director

Peach Accounting is the trading name of Peach Consulting Ltd, Incorporated in England and Wales Registration number: 12170375 Registered office: 32 Carnarvon Road, Gosport, PO12 3QP