## **River Church Sutton**
## **Trustees’ Annual Report**
1 January 2023 to 31[st] December 2023
|**Contents**|**Page**|
|---|---|
|Charity Information|2|
|Trustees' Annual Report|3 - 6|
|Statement of Financial Activities|7-10|
|Independent Examiner's Report|11|
Independent Examiner's Report
## **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**
2023 was a year of numerical growth as new people decided to call River Church home. As with the previous year we wanted to focus on building community and unity in our increasing cultural diversity. We also opened our new coffee shop to offer our local community a safe welcoming space.
- **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 continued to livestream our services 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 started the year focussing on the subject of identity and who we are in Christ before then going on later in the year to look at how we are called to live out that new identity in Christ. 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:** Our kids work continues to offer a full curriculum on Sunday mornings. We are looking to increase the number of groups to facilitate more targeted
- **Youth:** Several of the older kids moved up to youth this year. This has increased the age range of the group but there is a great sense of unity with the older youth welcoming the younger. Once again, their summer camp “NewDay” was a hugely significant time with the ticket price covered by generous donations from the congregation.
- **Mid-Week Groups** continued to meet in person and on Zoom. We are looking to expand the number of groups as some have become quite large. 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 with different members of the congregation recording daily devotionals. We also ran a prayer course over the summer.
- **The Alpha Course** offers people an opportunity to explore faith and spirituality in a safe and relaxed environment. We once again ran two well attended courses this year.
- **International:** This year we developed links with a church in Sao Paulo, Brazil, financially supporting some of their leaders to attend a UK New Ground conference. We continue to support IGC church in the Philippines. We continue to give financially to Newfrontiers family of churches to support international church planting and aid projects.
**3**
## **Review of activities (cont.)**
- **Highfield Hall:** This year we were able to employ an operations manager to help look after general logistics and maintenance of Highfield Hall. Our building 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 – we even held our first wedding ceremony! 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 used our coffee shop as a winter “Warm Space” to help those struggling with the cost-of-living crisis. As with the previous year, we ran a ‘Winter Hug’ event donating household items and warm clothes for those in temporary accommodation. 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 cost.
- **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. This year we paid for four people to attend the New Ground Leadership Academy.
- **Men’s and women’s ministries:** Regular men’s and women’s events were held throughout the year. These included Pizza Nights, walks and afternoon teas to build friendship. The women’s book club continues to grow and a good number went to the “Courage” women’s conference.
- **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. We plan next year to offer time and space in our coffee shop as a wellbeing venue.
- **Seasonal:** All our easter services were well attended with a very moving Good Friday reflective service. Christmas was a real highlight with our best ever attended family carol service. We were able to bless many local families through a present donation initiative based in the coffee shop. We finished the year off with a New Year’s Day brunch.
## **Future plans**
Looking ahead to 2024 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 our coffee shop further increasing its community impact.
- 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 6 months of essential operating expenditure, which would be approximately £65,000.
## **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.
**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 £288,967, an increase of 56% on 2022 (£185,321). This was driven by a small number of large donations received by the Church during the period, as well as a 6% increase in income from charitable activities with strong hall rent income and the introduction of a coffee shop as the Church looks to diversify its income streams.
Expenses for the year totalled £191,555, an increase of 25% on 2022 (£152,618). This was driven by the introduction of another staff member, repairs to the Church, and increased borrowing costs on the loan due to the economic climate. This was partially offset by a decrease in gifts and donations during the year as the Church looked to manage its costs.
The result was a surplus of £97,412 for the year, a significant improvement over 2022 by +300%, driven again by the large donations received. Total accumulated reserves stood at £364,048, of which net current assets account for £116,265 (2022: £82,747), demonstrating that the Charity has the liquidity to cover its reserves policy and debt obligations referred to below.
At the time of signing the report, the BOE interest rate had started to decrease to 5% after one year at 5.25%. Although there is unlikely to be any immediate impact, the Church may see a reduction in its borrowing rates later in the year and into 2025 should more rate decreases be announced.
Note that the charity has no restricted funds which restrict assets from 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 2023**
## **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|**2023**
**£**
**222,251**
**66,271**
**445**
**288,967**
**191,555**
**97,412**
**266,636**
**364,048**
**521,094**
**8,034**
**126,530**|2022
£
122,954
62,336
31|
|---|---|---|
|||185,321
152,618|
|||32,703
233,933|
|||266,636|
|||522,909
17,489
82,050|
|**Current Liabilities**
_4_
**Net Current Assets (Liabilities)**
**Total Assets less Current Liabilities**
**Non-Current Liabilities**
_5_
**Net Assets**
**Accumulated Funds**|**134,564**
**(18,299)**
**116,265**
**637,359**
**(273,311)**
**364,048**
**364,048**|99,539
(16,792)|
|||82,747|
|||605,656
(339,020)|
|||266,636|
||||
|||266,636|
**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 2023
Additions
At 31 December 2023
**Depreciation**
At 1 January 2023
Charge in the year
At 31 December 2023
**Net Book Value**
At 31 December 2023
At 31 December 2022|**Buildings**
**and**
**improv.**
**Equipment**
**and other**
**assets**
**Total**
**517,298**
**8,713**
**526,011**
**-**
**484**
**484**|
|---|---|
||**517,298**
**9,197**
**526,495**|
||**-**
**3,102**
**3,102**
**2,299**
**2,299**|
||**-**
**5,401**
**5,401**|
||**517,298**
**3,796**
**521,094**|
||517,298
5,611
522,909|
**8**
|**3 Debtors**|||
|---|---|---|
||**2023**|2022|
||**£**|£|
|Hall Rent|**680**|669|
|Gift Aid Receivable|**7,354**|16,820|
||**8,034**|17,489|
|**4 Current Liabilities**|||
||**2023**|2022|
||**£**|£|
|Deposits Held|**1,770**|2,226|
|Tax and Social Security|**2,158**|520|
|Accruals|**2,891**|6,886|
|Capital Lease Obligations|**6,924**|7,160|
||**18,299**|16,792|
|**5 Non-current Liabilities**|||
||**2023**|2022|
||**£**|£|
|Capital Lease Obligations|**273,311**|339,020|
||**273,311**|339,020|
|**6 Average Number of Employees**|||
|During the year the average number of employees was 3 (2022: 2).|||
|**DETAILED STATEMENT OF FINANCIAL ACTIVITIES**|||
||**2023**|2022|
|**Donations**|**£**|£|
|Gift Aided Giving|**170,050**|91,871|
|Non Gift Aided Giving|**12,456**|8,115|
|Tax Reclaimed|**39,745**|22,968|
||**222,251**|122,954|
|**Charitable Activities**|||
|Rental Income|**63,421**|62,336|
|Other Income|**2,850**|0|
||**66,271**|62,336|
|**Investment Income**|||
|Interest Received|**445**|31|
||||
|**Total Incoming Resources**|**288,967**|185,321|
**9**
|**DETAILED STATEMENT OF FINANCIAL ACTIVITIES (CONT)**
**2023**
**Wages and Salaries**
**£**
Salaries, Wages and Benefits-in-Kind
**92,222**
Social Security Costs
**2,696**
Pension Costs
**2,299**
**97,217**
**Property Costs**
Rate and Utilities
**1,604**
Light and Heat
**10,346**
Repairs and Maintenance
**20,138**
**32,088**
**Conference Expenses**
Registrations
**2,129**
Travel and Subsistence
**15**
**2,144**
**Church Activity Costs**
Evangelism
**432**
Hospitality
**1,488**
Gifts and Donations
**15,900**
Coffee Shop Expenses
**4,600**
Miscellaneous Expenses
**548**
**25,653**
**Church Running Costs**
Telephone and Internet
**1,511**
Subscriptions
**754**
Insurance
**2,814**
Office Supplies
**951**
Audio/ Visual
**3,481**
Professional Fees
**1,210**
Depreciation
**2,299**
**13,350**
**Finance Costs**
Interest Payable
**21,103**
**Total resources expensed**
**191,555**
**Surplus (Deficit) for the year**
**97,412**|2022
£
60,597
1,694
4,548|
|---|---|
||66,839
862
7,108
6,808|
||14,778
3,138
122|
||3,260
283
871
31,984
682|
||38,554
1,840
1,499
2,552
643
3,161
858
1,074|
||11,627
17,560|
|||
||152,618|
|||
||32,703|
**10**
Honeystsne Cott
Oxford Road
En8tone.OX7 4LP
Peach Accounting
*44 7342631057ltl
PEathKCDuDts.co.UkICI
info
Dhwd PesteiLACA
7 August 2024
The Mvrnb¢r4
Riverchurch Sutton
320 Carshalion Rosd
SURREY
SM53QB
Cent Ref.. RWQI
Indepelld•ntex•rninerf• reporttothetru•teeBol AMTrrChurGh Sutton
I repDrt to tho tru8tses on myexamination of the accounts of the above charityforthe yearended31 Decotnbor2022.
RMpon•ibiiriieB •nd b••i•of report
Asthe chawivs trustees, you are [esponbleforthe pfeparation olthe occounts in accordancewith the requirementsof
thecharitsACt207J 1.the Act.).
I report ID respect of rny exatDination of the Twst'5 aGCOUDtS Garried out uder section 145 01 the 2011 kn aDd i
arrying out rny e¥arnination. I have louowed all the applKible DirEctions by the Charity Cotnmi55ion under
5eCtioD 14515llbl oltheAct.
Indopvlldontex•minDr'¥ ¥t•tomorrt
I havB Gotnpieted rny examination. I conlirrn that no material matters have Come to myattentiDn in connectth wTth the
ex4mination whlch wves meeauseto beevethSt In. any msierlslrespect..
the accouniing recordswere not kept in aecordancev4rth3ectlon 130 ofthe CharitiesAc[ or
the accourts did Dot IcGordwithth¢ accountingrecords.- or
the account5 did notcornplywith the appCable requirernents concewningtheform and content of accounts &et
out in the Charitiey IAceountS And Report31 Regulations 2008 other than any requirement thai the bccounts
ove a'true and Isir. vWhICh Is not a rnattei consklered 83 partof an independent exomination.
I h8ve no concefflj Bnd have eorne ocroJB no other matterg in connection wth the exbmination to whiEh attention
jhould be dravm in this reportto engblea FKoperunder8tandingolthe accountsto b2 reAched.
David Pe8telLACA
Director
IfA£W
CHARTEREO
ACCOVNTANTS
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