## **River Church Sutton** ## **Trustees’ Annual Report** 1 January 2022 to 31[st] December 2022 |**Contents**|**Page**| |---|---| |Charity Information|2| |Trustees' Annual Report|3 - 6| |Statement of Financial Activities|7-10| |Independent Examiner's Report|11| ## **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 Roz Ullman Simon Waters Ed Rodriguez ## **Independent Examiner** Peach Accounting ## **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. **2** ## **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** 2022 was a year of consolidation after many months of Covid disruption. The key aim was to build community and strengthen our sense of family together. We did this through: - **Sunday Morning Services:** These are a key way we serve our community by gathering together to worship, listen to teaching from the bible and offer prayer. We made the decision to continue to livestream our services but on a private link. This helped those who could not physically attend our services to still engage, while encouraging those that could, to gather in person. We introduced a ‘creative worship board’ to help people to express their worship in different ways. We kicked off the year reminding people of our core values (Empowered, Engaged and Extravagant), before exploring themes of restoration and hope using the books of Ezra and Ruth. Attendance numbers steadily grew throughout the year and it has been wonderful to see an increase in diversity, with people from many different cultures and backgrounds joining us. - **Kids:** It was great to re-establish our vibrant kids’ program and have seen an increase in numbers. This has required an increase in competent helpers and relevant training. - **Youth:** Our youth group continues to grow and this year had a wonderful time at their summer camp “NewDay”. Many of the youth made commitments to Jesus and we had the joy of baptising nine of them in water in the autumn term. - **Mid Week Groups** continued to meet back in person and on Zoom. Two new groups started this year and we look to establish another two next year. The aim of these diverse groups is to build friendship, encourage people in their faith, and equip people to serve their neighbourhood. - **Prayer** continues to underpin all that we do as a church. We held a week of prayer along with regular monthly prayer meetings. It was also a joy to gather with other local churches for a prayer day for our borough. - **The Alpha Course** offers people an opportunity to explore faith and spirituality in a safe and relaxed environment. We ran two courses this year along with a newly developed discipleship course which served as a great next step after Alpha. - **International:** It has been a privilege to support IGC church in the Philippines for several years and we were able to see via Zoom their new church building that we helped to finance. This will provide a vital hub for their community. We took part in coordinating financial support for the churches in Ukraine as part of our Newfrontiers family of churches. **3** ## **Review of activities (cont.)** - **Highfield Hall:** continues to be a hub for the community hosting dance classes, toddler groups, exercise classes, creative workshops as well as kids’ parties at the weekends. Our free badminton club continues to encourage fitness and develop friendships. The hall also continues to be a good revenue stream for us. - **Community:** This year we ran a ‘Winter Hug’ event donating household items and warm clothes for those in temporary accommodation – including the many Ukrainian families fleeing the war. 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 church. - **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. - **Men’s and women’s ministries:** This year we relaunched regular men’s and women’s events. These included Guy’s Curry Nights to build friendships and encourage one another and several women’s conferences throughout the year. - **Mental Health Support:** The very real need to support those caring for loved ones with mental health needs continues with our monthly group called “Space to Breathe” to facilitate open and honest conversation and support. - **Seasonal:** We were able to host a wonderful easter egg hunt and craft afternoon this year. All our easter services were well attended. We enjoyed summer picnics and a trip to the seaside, again building a sense of family. Christmas was a real highlight with a well-attended family carol service and a separate service in a local care home. We were able to bless many local families with hampers of Christmas treats. We finished the year off with a wonderful New Year’s Eve party. ## **Future plans** Looking ahead to 2023 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 recruit a part time facilities and operations manager to look after our venue and to manage our proposed coffee shop. - To continue to raise leaders and develop small groups **4** ## **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. We welcomed Ed Garcia to the board of trustees at the beginning of this year. ## **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 non-regular 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. **5** 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 resources of £185,321, an increase of 5.7% on 2021 (£175,349). Giving reduced in 2021 however rental income rose by 169% as a result of demand post-covid. It is expected that rental income will continue to increase in 2023 at a lesser rate as activity returns to pre-COVID levels. Expenses in the year totalled £152,618, a decrease of 4.5% on 2021 (£159,757). Operating costs were consistent with 2021 with the exception of giving and donations which reduced to £31,984 (2020: £56,248) which is the main driver for the decrease year-on-year. The result was a surplus of £32,703 for the year, a significant improvement of 210% over 2021 (£15,592). The total accumulated reserves stood at £266,636 of which net current assets account for £82,747 (2021: £57,519) demonstrating the Charity has liquidity to cover its reserves policy and debt obligations referred to below. At the time of signing the report the BOE interest rate has increased to 5.25% vs a low of 0.25% in 2021. This is expected to substantially increase the cost of debt held, however the Charity has received substantial post-balance sheet donations and has adequate reserves to cover the interest exposure in the short-term. Note that the charity has no restricted funds which restrict assets being used to manage debt during this period of high interest. ## **Declaration** The Trustees declare that they have approved the trustees’ report above. Signed on behalf of the Trustees: ………………………………… Chair - Steve Musters **6** ## **Financial Statements for the year ended 31 December 2022** ## **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
**Current Liabilities**
_4_
**Net Current Assets (Liabilities)**
**Total Assets less Current Liabilities**
**Non-Current Liabilities**
_5_
**Net Assets**
**Accumulated Funds**|**2022**
**£**
**122,954**
**62,336**
**31**
**185,321**
**152,618**
**32,703**
**233,933**
**266,636**
**522,909**
**17,489**
**82,050**
**99,539**
**(16,792)**
**82,747**
**605,656**
**(339,020)**
**266,636**
**266,636**|(Restated)
2021
£
138,489
36,858
2| |---|---|---| |||175,349
159,757| |||**15,592**
218,341| |||233,933| |||522,593
14,816
60,997| |||75,813
(18,294)| |||57,519| |||580,112
(346,179)| |||233,933| |||| |||233,933| **7** ## **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 25% per annum on a straight line 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 2022
Additions
At 31 December 2022
**Depreciation**
At 1 January 2022
Charge in the year
At 31 December 2022
**Net Book Value**
At 31 December 2022
At 31 December 2021|**Buildings**
**and**
**improv.**
**Equipment**
**and other**
**assets**
**Total**
**517,298**
**7,323**
**524,621**
**-**
**1,390**
**1,390**| |---|---| ||**517,298**
**8,713**
**526,011**| ||**-**
**2,028**
**2,028**
**1,074**
**1,074**| ||**-**
**3,102**
**3,102**| ||**517,298**
**5,611**
**522,909**| ||517,298
5,295
522,593| **8** |**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)
**2022**
2021
**£**
£
**669**
1,222
**16,820**
13,594
**17,489**
14,816
(Restated)
**2022**
2021
**£**
£
**2,226**
1,915
**520**
498
**6,886**
5,488
**7,160**
10,393
**16,792**
18,294
(Restated)
**2022**
2021
**£**
£
**339,020**
346,179
**339,020**
346,179| |---|---| ## **6 Average Number of Employees** During the year the average number of employees was 2 (2021: 2). ## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES** |**Donations**
Gift Aided Giving
Non Gift Aided Giving
Tax Reclaimed
**Charitable Activities**
Rental Income
**Investment Income**
Interest Received
**Total Incoming Resources**|(Restated)
**2022**
2021
**£**
£
**91,871**
106,219
**8,115**
5,727
**22,968**
26,543
**122,954**
138,489
**62,336**
36,858
**62,336**
36,858
**31**
2
**185,321**
175,349| |---|---| **9** ## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES (CONT)** |**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
Hospitality
Gifts and Donations
Miscellaneous Expenses
**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**|(Restated)
**2022**
2021
**£**
£
**60,597**
57,430
**1,694**
1,508
**4,548**
5,557
**66,839**
64,495
**862**
1,337
**7,108**
5,029
**6,808**
5,099
**14,778**
11,465
**3,138**
652
**122**
-
**3,260**
652
**283**
153
**871**
808
**31,984**
56,248
**682**
867
**38,554**
58,362
**1,840**
1,924
**1,499**
1,343
**2,552**
3,222
**643**
539
**3,161**
3,439
**858**
450
**1,074**
588
**11,627**
11,505
**17,560**
13,278
**152,618**
159,757
**32,703**
15,592| |---|---| **10** Qo Peach Accounting 7 Jacquard Apartrnenls 11 CouTlhouse Way London. SW18 4PG +44 7342 631 057 It) @peachaccountlThg.co.uk lei rector. David Pestel, ACA 27 August 2023 Thè Membèrs RNer Church Sutt H￿jh[Ieky Hall 320 Carshalton Road SURREY SM5 30B Cbent Rel". RN01 Indopondent *xamln*r's report to thè trust*es of Rlv*r Chureh Sutton I report lo the trustees C￿ my examknatloTr of the accounts ol the al)ove charty lor the year ended 31 Decem￿1 2022. Responsibilrtie5 and basis of report As the charrty's trustees. you are responsib￿ for Ihe preparatb)n of the accounts In accordance wilh the tequiretnents of the Chartbes Act 2011 llhe Acri. I report in respect of my exarnination of the TtU5fs accounts catie(J oui urKler section 145 of Ihe 2011 Act and in carrying out my examination. I have followed al the applicable Drect￿)nS gNen by Ihe Charty Commission under section 14515llbl of the Act. Ind•p•nd•nt •xamln•r's st*•m•nt I have compseled my eXaminat￿n. I confim) that no materkal matters have corne to my attent￿n In connection with the exarninatK)n which gwes me cause to believe that in. any fflatefial resped_ the atcounbng records were not kept in accordance wilh sett￿Tr 130 of the Chanlies Ac¢ or the accounts (Jid not aC￿￿d with the accounting recor(Js". or the accounts dio not eompty wilh the applicable requirements coThcemlng the form and conlenl ol accounts set out in Ihe ChariiE5 (Accounts an(J Reports) Regulations 2008 othei than any requirement Ihal the accounts gNe a knje and fair vlew whlch ts not a matler conSIde￿ as part ol an ItKJepen(Jent examination. I have Tro concems and have COTne acros5 no othei tnatte15 tn coTrnedio￿ wrth Ihe exarninatK>n to which attentK)n Shou￿ be drawn in this report to enable a proper understanding of the accounts to tse reached. Davld P•si•ll ACA Directoi CHARTERE[> A¢COVNTApirs Pe4thPKcwDtrq15thethd*MmedPexhCwulaw Lbl. lnc¢WJrted￿ EW*landW*e5 12170875 Re&￿er￿j￿rKe.J2Carnar￿ th5PDQ P￿12 11