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2021-03-31-accounts

Registered number: 5400985 Charity number: 1111470

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 6
Independent auditors' report on the financial statements 7 - 10
Consolidated statement of financial activities 11
Consolidated balance sheet 12 - 13
Company balance sheet 14 - 15
Consolidated statement of cash flows 16
Notes to the financial statements 17 - 36

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees

Julian Melfi Alan Samways Olawale Dada (resigned 2 March 2021) Abimbola Akingbolagun (appointed 6 October 2021)

Company registered number

5400985

Charity registered number

1111470

Registered office

22 Rectory Road Beckenham Kent BR3 1AA

Company secretary

Mellissa Whittle

Independent auditors

Baldwin Scofield Limited Chartered Accountants Statutory Auditors 3 Newhouse Business Centre Old Crawley Road Horsham West Sussex RH12 4RU

Page 1

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements of the Company for the 1 April 2020 to 31 March 2021. 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 group and the Company qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

Policies and objectives

The principal object of the charity is to advance the Christian religion through worship, preaching and teaching of Christian doctrine and principles, fellowship, and the distribution of Bible teaching in all forms of media and the advancement of the Christian faith generally.

The Incorporated Charity’s objects are:

• The advancement of the Christian religion through worship, preaching and teaching of Christian doctrine and principles, fellowship, and the distribution of Bible teaching in all of media, and the advancement of the Christian faith generally.

During the year, all Citygate Church Policies were reviewed and updated as necessary. Also, as our staff team is growing and expanding, Employment Contracts were rewritten in consultation with Stewardship Services and other Charity HR bodies

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, including the guidance 'Public benefit: running a charity (PB2)'.

Strategies for achieving objectives

Citygate Christian Outreach Centre progresses these objectives directly through:

a) the running of a vibrant church community.

b) through the printing of materials to educate and evangelise the public and members of all ages.

c) providing economic relief and other assistance to persons experiencing hardships, poverty or other conditions of need.

Page 2

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance

Review of activities

The advance of the Christian religion through worship, preaching and teaching of Christian doctrine and principles, fellowship, and the distribution of bible teaching in all media, and the advancement of the Christian faith generally

Citygate Church has had another very healthy year in every way despite of the Covid pandemic, and this has been indicated by Sunday attendance (both online and in-person) and membership again increasing significantly due to our online presence. Citygate continues to focus on the growth of the church through teaching, preaching and pastoral care of both Christians and the un-churched/community alike. With the national “lock-downs” taking place, Citygate transitioned our whole operation to function remotely away from the Church offices and set up online Sunday Services, leadership meetings, training programs, Small groups (people gathering in homes), Kids Church and our Youth Work. Our Food Bank program (Food+) continued to function apart from the first month or so of the Covid pandemic.

Our Sunday services began to meet again in person as early as we could in line with Government Guidelines. We invested in hospital grade air purifiers and disinfectant sprayers, re-configured our building to be fully Covid Compliant with hand sanitisers, one-way systems, mask wearing and a socially distanced environment. We are happy to report that out of a church of nearly 1000 people in London we have thankfully not lost one person to Covid at the time of writing.

Attendance, both to Sunday services and other Church related activities, had to rebuild following the lockdown, but has grown well over the six months since we were able to re-open. As Citygate Church have for some time outgrown their current facilities both for Church and community activities, Citygate have been looking at purchasing a large site to build a new Church and Community Centre. Unfortunately the piece of land we were actively pursuing had to be dropped as planning permission for a larger building was becoming more and more problematic. We have however now entered into negotiations for another building and are hopeful that this will materialise in the coming year or so.

Venue 28 had to close during the pandemic like every other hospitality and event facility. Most staff were furloughed with the others working from home. Venue 28, as well as Citygate Church, were able to obtain funding and Government grants during the pandemic, and any shortfall in Venue 28 was subsidised by Citygate Church. Venue 28 serves the local community with outstanding hall hire facilities for functions and classes/workshops etc. at the time of writing, Venue 28 has fully re-opened and is operating successfully at maximum capacity for the first time since it opened in 2015.

The instruction and care of Christians including young people and children

Razzle Dazzle, Citygate's community Toddler group, which attracted over 250 children on a weekly basis across 4 sessions had to close due to the pandemic. At the time of writing it has now re-opened and is functioning well again. Citygate Kids Church transitioned to an online Sunday program which was hugely successful, with other churches and groups taking advantage of our production. Citygate Kids serves to encourage and guide the children in Citygate Church in Christian values and principles. Citygate Youth also operated for the year online on a Friday evening as a youth club for 11 to 18 year olds.

The evangelisation of non Christians

The pandemic prevented most personal contact, but our online Services were a great opportunity for other people to see what Citygate Church is and does and helped to grow the Church with over 150 new people during lockdown.

The relief of persons who are in conditions of need, hardship, poverty or distress or aged or sick The church continues to run an initiative which provides a food bank , both perishable and non-perishable, to those most in need by partnering with the Council and local organisations. The Church also supports a home for women rescued from human trafficking.

Page 3

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Investment policy and performance

The Directors have the power to invest in such assets as they see fit. As Citygate currently has excess funds, some of these continue to be invested at a very favourable interest rate.

Financial review

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the 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.

Reserves policy

The Directors intend to plough funds into the development of the Church as they become available. Citygate is a growing Church with strong, stable, and committed income and a healthy nett funds position, reserve funds have previously been invested, but at the time of writing are now growing in our bank accounts as a healthy liquid reserve of at least 2 months’ core expenses.

Financial risk management objectives and policies

The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. Previous year’s accounts were “qualified” due to a potential risk identified regarding the repayment of loaned Charity funds. The Trustees are confident of the return of the funds.

As a result of the risk to charity funds noted above the Charity Commission has commenced an inquiry into the situation on 20 August 2021.

Structure, governance and management

Constitution

Citygate Christian Outreach Centre is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 29 June 2004.

Methods of appointment or election of Trustees

The management of the Group and the Company is the responsibility of the Trustees who are elected and coopted under the terms of the Articles of Association.

Organisational structure and decision-making policies

The Directors of the company also act as Trustees for the purpose of charity law and are authorised to appoint additional Directors under the terms of the Articles of Association. The company operates from premises in Beckenham where the main church and offices are located. Decisions are made in accordance with conditions set out in the company’s governing document.

Page 4

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

Policies adopted for the induction and training of Trustees

New Directors are supplied with information published by the Charity Commission on the responsibilities and expectations of those appointed to charity work. Latest accounts, previous minutes and statutory information are provided and whatever interview time the new appointee requires with other Directors or senior managers is made available.

Plans for future periods

As a Church we are constantly considering how we can develop our operation and activities. During the Covid pandemic we were able to easily transition to an online model for Church. This proved very successful and engaged the community in a new and effective way. We had already decided that we were going to return to online broadcasting of our Church services and the pandemic forced that into being. As the Church returns back to full in-person meetings and services we have decided that a number of our training programs for Citygate members will be available online. This would involve training in leadership, pastoral care, financial stewardship, marriage and parenting courses etc. We will also continue to broadcast tailor-made Church services for the local community, as well as live-streaming our Sunday and other meetings.

We have been progressing slowly with the acquisition of new Church property as we have significantly outgrown our current facilities. This will still take some years to come to fruition but is something we are passionately pursuing.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the 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 . 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 Group and the Company and of their incoming resources and application of resources, including their 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 Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Baldwin Scofield Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on 31 January 2022 and signed on their behalf by:

Julian Melfi

Page 6

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CITYGATE CHRISTIAN OUTREACH CENTRE

Qualified opinion

We have audited the financial statements of Citygate Christian Outreach Centre (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

Except for the matter described in the basis for qualified opinion section, in our opinion the financial statements:

Basis for qualified opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to note 2.2 in the financial statements, which indicates that the non-payment of loans identified may cast significant doubt on the Group's ability to continue as a going concern. As stated in note 2.2, these events or conditions, along with the other matters as set forth in the note 26, indicate that a material uncertainty exists that may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the Trustees' assessment of the Group's ability to continue to adopt the going concern basis of accounting included enquiries of management and review of the most recent correspondence with regards to the investment recovery. We note that the charity has considerable equity in its fixed assets against which it may be able to borrow to provide working capital and the group is currently operating a surplus which may allow it to continue to meet its financial obligations. This may enable the group to continue to operate for the foreseeable future.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 7

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CITYGATE CHRISTIAN OUTREACH CENTRE (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 8

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CITYGATE CHRISTIAN OUTREACH CENTRE (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant are those that relate to the reporting framework in conformity with the requirements of the Companies Act 2006, Charities Act 2011 and the relevant direct and indirect tax compliance regulations in the United Kingdom.

We understood how Citygate Christian Outreach Centre is complying with those frameworks by making enquiries of management to understand how the group maintains and communicates its policies and procedures in these areas and corroborated this by reviewing supporting documentation and minutes of meetings of those charged with governance.

We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override to be a fraud risk. In addition, we considered the risk of management override by sampling from the entire population of journals, identifying specific transactions which did not meet our expectations based on specific criteria and investigated these to gain an understanding and then agree back to source documentation.

Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved verifying that material transactions were recorded in compliance with Financial Reporting Standards in conformity with the requirements of the Companies Act 2006, the Charities Act 2011 and the charity SORP.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 9

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CITYGATE CHRISTIAN OUTREACH CENTRE (CONTINUED)

Use of our report

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. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Baldwin Scofield Limited

Chartered Accountants Statutory Auditors 3 Newhouse Business Centre Old Crawley Road Horsham West Sussex RH12 4RU

31 January 2022

Baldwin Scofield Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 10

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
Charitable activities
8
Total expenditure
Net income
Revaluation of properties
19
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
1,093,854
16,255
108,875
4
-
1,218,988
219,647
627,769
847,416
371,572
2,170,000
2,541,572
2,284,276
2,541,572
4,825,848		 Total
funds
2021
£
1,093,854
16,255
108,875
4
-
1,218,988
219,647
627,769
847,416
371,572
2,170,000
2,541,572
2,284,276
2,541,572
4,825,848		 Total
funds
2020
£
1,138,038
84,034
138,447
5,004
270
1,365,793
295,824
764,512
1,060,336
305,457
-
305,457
1,978,819
305,457
2,284,276

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 17 to 36 form part of these financial statements.

Page 11

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee) REGISTERED NUMBER: 5400985

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Total net assets
Charity funds
Restricted funds
19
Unrestricted funds
19
Total funds		 892,440
56,315
948,755
(153,936)		 2021
£
5,794,536
794,819
6,589,355
(1,763,507)
4,825,848
-
4,825,848
4,825,848		 459,756
44,638
504,394
(158,276)		 2020
£
3,629,848
346,118
3,975,966
(1,691,690)
2,284,276
-
2,284,276
2,284,276

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

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

However, an audit is required in accordance with section 151 of the Charities Act 2011.

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

Page 12

CITYGATE CHRISTIAN OUTREACH CENTRE (A company limited by guarantee) REGISTERED NUMBER: 5400985

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

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 31 January 2022 and signed on their behalf by:

Alan Samways

The notes on pages 17 to 36 form part of these financial statements.

Page 13

CITYGATE CHRISTIAN OUTREACH CENTRE (A company limited by guarantee) REGISTERED NUMBER: 5400985

COMPANY BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Total net assets
Charity funds
Restricted funds
19
Unrestricted funds
19
Total funds		 1,349,721
43,944
1,393,665
(94,884)		 2021
£
5,793,135
11
5,793,146
1,298,781
7,091,927
(1,677,674)
5,414,253
-
5,414,253
5,414,253		 890,313
36,669
926,982
(101,209)		 2020
£
3,627,815
11
3,627,826
825,773
4,453,599
(1,691,690)
2,761,909
-
2,761,909
2,761,909

The Company's net movement in funds for the year was £ 2,652,344 (2020 - £462,564) .

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

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

However, an audit is required in accordance with section 151 of the Charities Act 2011.

Page 14

CITYGATE CHRISTIAN OUTREACH CENTRE (A company limited by guarantee) REGISTERED NUMBER: 5400985

COMPANY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

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 31 January 2022 and signed on their behalf by:

Alan Samways

The notes on pages 17 to 36 form part of these financial statements.

Page 15

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Advancing loans
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
New loans
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
377,736
(49,054)
(418,500)
(467,554)
(48,505)
150,000
101,495
11,677
44,638
56,315		 2020
£
376,383
(4,247)
(261,300)
(265,547)
(56,844)
-
(56,844)
53,992
(9,354)
44,638

The notes on pages 17 to 36 form part of these financial statements

Page 16

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

Citygate Christian Outreach Centre is a company limited by guarantee incorporated in England & Wales on 22 March 2005 by under Memorandum and Articles of Association with company registration number 05400985. Other company information can be found on page 1.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Citygate Christian Outreach Centre 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.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Going concern

As more fully explained in note 26, the charity may be unable to recover loans amounting to £875,450 at the balance sheet date and £915,450 at the report date. This may have an impact on the charity's ability to continue to meet its financial obligations.

2.3 Income

All income is recognised once the 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 Consolidated 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 investment income is recognised at the time the investment income is receivable.

Page 17

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

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 raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

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

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Property fixed assets are initially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliably shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.

Fair values are determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, a Company may need to estimate fair value using an income or depreciated replacement cost approach.

Gains and losses on revaluation are recognised in the Consolidated statement of financial activities, with a separate revaluation reserve being shown in the Statement of funds note.

Othe 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 18

CITYGATE CHRISTIAN OUTREACH CENTRE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.6 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, using the straight-line method.

Depreciation is provided on the following bases:

2.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

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 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 Consolidated statement of financial activities as a finance cost.

2.11 Financial instruments

The Group 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.

Page 19

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.12 Pensions

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

2.13 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 Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group 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. Income from donations and legacies

Donations
Grants
Similar incoming resources
Donations
Similar incoming resources		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
1,054,308
-
39,546
-
-
-
1,093,854
Restricted
funds
2020
Unrestricted
funds
2020
£
£
2,789
1,135,219
-
30
2,789
1,135,249		 Total
funds
2021
£
1,054,308
39,546
-
1,093,854
Total
funds
2020
£
1,138,008
30
1,138,038

Page 20

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from charitable activities

Unrestricted
funds
2021
£
Income from charitable activities - Church events
16,255
Unrestricted
funds
2020
£
Income from charitable activities - Church events
84,034
5.
Income from other trading activities
Income from non charitable trading activities
Unrestricted
funds
2021
£
Charity trading income - venue rental
20,759
Sales
7,426
Coronavirus government grants
80,690
108,875
Unrestricted
funds
2020
£
Charity trading income - venue rental
138,447		 Total
funds
2021
£
16,255
Total
funds
2020
£
84,034
Total
funds
2021
£
20,759
7,426
80,690
108,875
Total
funds
2020
£
138,447

Page 21

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6.
Investment income
Unrestricted
funds
2021
£
Investment income
4
Unrestricted
funds
2020
£
Investment income
5,004
7.
Other incoming resources
Unrestricted
funds
2020
£
Other operating income
270
8.
Analysis of expenditure on charitable activities
Summary by fund type
Unrestricted
funds
2021
£
Charitable activities
627,769		 Total
funds
2021
£
4
Total
funds
2020
£
5,004
Total
funds
2021
£
Total
funds
2020
£
270
Total
funds
2021
£
627,769

Page 22

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Analysis of expenditure on charitable activities (continued)

Summary by fund type (continued)

Restricted Unrestricted Total
funds funds funds
2020 2020 2020
£ £ £
Charitable activities 3,936 760,576 764,512

9. Analysis of expenditure by activities

Charitable activities
Charitable activities		 Activities
undertaken
directly
2021
£
146,656
Activities
undertaken
directly
2020
£
284,561		 Support
costs
2021
£
481,113
Support
costs
2020
£
479,951		 Total
funds
2021
£
627,769
Total
funds
2020
£
764,512

Page 23

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Analysis of expenditure by activities (continued)

Analysis of direct costs

Church hosting
Premises costs
Ministry and pastoral costs
Media costs
Studio costs
Camp and conference costs
Giving
Church hosting
Premises costs
Ministry and pastoral costs
Media costs
Studio costs
Camp and conference costs
Giving
Covenant seed		 Church
operations
2021
£
8,010
42,808
53,520
21,979
857
(20)
19,502
146,656
Church
operations
2020
£
52,561
66,584
76,393
24,684
3,426
2,485
31,933
26,495
284,561		 Total
funds
2021
£
8,010
42,808
53,520
21,979
857
(20)
19,502
146,656
Total
funds
2020
£
52,561
66,584
76,393
24,684
3,426
2,485
31,933
26,495
284,561

Page 24

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Printing, post and stationery
Insurance
Telephone and internet
Computer costs
Professional fees
Bank and cardnet charges
Bank interest
Other expenses
Staff costs
Depreciation
Printing, post and stationery
Insurance
Telephone and internet
Computer costs
Professional fees
Bank and cardnet charges
Bank interest
Other expenses		 Support
activities
2021
£
332,543
53,734
6,541
9,222
8,892
836
8,578
1,369
50,120
9,278
481,113
Support
activities
2020
£
304,113
44,835
9,650
9,669
9,481
1,291
12,481
3,576
69,762
15,093
479,951		 Total
funds
2021
£
332,543
53,734
6,541
9,222
8,892
836
8,578
1,369
50,120
9,278
481,113
Total
funds
2020
£
304,113
44,835
9,650
9,669
9,481
1,291
12,481
3,576
69,762
15,093
479,951

Page 25

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Auditors' remuneration

2021 2020
£ £
Fees payable to the Company's auditor for the audit of the Company's
annual accounts 5,700 5,400

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£
418,354
38,688
11,522
468,564		 Group
2020
£
420,295
-
9,507
429,802		 Company
2021
£
296,471
27,506
8,566
332,543		 Company
2020
£
297,198
-
6,915
304,113

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

Church and administration
Venue hire operations		 Group
2021
No.
11
7
18		 Group
2020
No.
11
7
18		 Company
2021
No.
11
-
11		 Company
2020
No.
11
-
11

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

Julian Melfi, a trustee, and his wife Sharon are employed as pastors of the church. Their total remuneration including salary, rent and utilities on the manse provided come to a total of £99,211 (2020: £104,573). The pension contribution is £3,600 per annum.

In addition, Michael Melfi, the son of a trustee is employed by the trading subsidiary V28 Ltd and was paid £11,748 during the year (2020: £7,143).

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, expenses totalling £ 1,163 were reimbursed or paid directly to 1 Trustee (2020 - £4,651 to 1 Trustee) . These were charitable expenses incurred by the trustee on behalf of the charity and reimbursed accordingly.

Page 26

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Tangible fixed assets

Group

Cost or valuation
At 1 April 2020
Additions
Revaluations
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
3,050,000
-
2,170,000
5,220,000
-
-
-
5,220,000
3,050,000		 Long-term
leasehold
property
£
808,872
-
-
808,872
233,245
40,442
273,687
535,185
575,627		 Plant and
machinery
£
17,913
49,054
-
66,967
16,474
12,945
29,419
37,548
1,439		 Fixtures
and fittings
£
156,499
-
-
156,499
155,750
347
156,097
402
749		 Office
equipment
£
3,161
-
-
3,161
1,128
632
1,760
1,401
2,033		 Total
£
4,036,445
49,054
2,170,000
6,255,499
406,597
54,366
460,963
5,794,536
3,629,848

Company

Cost or valuation
At 1 April 2020
Additions
Revaluations
At 31 March 2021		 Freehold
property
£
3,050,000
-
2,170,000
5,220,000		 Long-term
leasehold
property
£
808,872
-
-
808,872		 Plant and
machinery
£
17,913
49,054
-
66,967		 Fixtures and
fittings
£
156,499
-
-
156,499		 Total
£
4,033,284
49,054
2,170,000
6,252,338

Page 27

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Tangible fixed assets (continued)

Company (continued)

Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
-
-
-
5,220,000
3,050,000		 Long-term
leasehold
property
£
233,245
40,442
273,687
535,185
575,627		 Plant and
machinery

£
16,474
12,945
29,419
37,548
1,439		 Fixtures and
fittings
£
155,750
347
156,097
402
749		 Total
£
405,469
53,734
459,203
5,793,135
3,627,815

The properties owned by the charity were revalued by Michael Yianni MRICS and Zain Ahmad MRICS for and on behalf of Belleveue Mortlakes, Chartered Surveyors on 21 June 2021. The directors/trustees of the charity are of the opinion that the valuation is not materially different to the market value at 31 March 2021.

The Group has adopted a policy of revaluation for tangible fixed assets. Had these assets been measured at historic cost, the carrying values would have been as follows:

Freehold property
Accumulated depreciation		 Group
2021
£
3,544,835
(608,197)
2,936,638		 Group
2020
£
3,544,835
(537,300)
3,007,535		 Company
2021
£
3,544,835
(608,197)
2,936,638		 Company
2020
£
3,544,835
(537,300
3,007,535

Page 28

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Fixed asset investments

Company
Cost or valuation
At 1 April 2020
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Investments
in
subsidiary
companies
£
11
11
11
11

Principal subsidiaries

The following were subsidiary undertakings of the Company:

Names Company Registered office or principal Principal activity
number place of business
V28 Ltd 10081260 22 Rectory Road, Beckenham, Letting operations
Kent, BR3 1JA
Citygate Property Holdings Ltd 09817830 22 Rectory Road, Beckenham, Developing building
Kent, BR3 1JA projects
Class of Holding Included in
shares consolidation
Ordinary 100% Yes
Ordinary 100% Yes

The financial results of the subsidiaries for the year were:

Names Income Expenditure Profit/(Loss) Net assets
£ £ / Surplus/ £
(Deficit) for
the year
£
V28 Ltd 108,875 (189,511) (80,636) (361,217)
Citygate Property Holdings Ltd - (30,136) (30,136) (227,177)

Page 29

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors		 Group
2021
£
16,600
-
875,840
892,440		 Group
2020
£
-
-
459,756
459,756		 Company
2021
£
-
474,271
875,450
1,349,721		 Company
2020
£
-
433,177
457,136
890,313

Included within other debtors due within one year is a loan to an individual amounting to £875,450 (2020 - £456,950). The main conditions are as follows:

The loan is unsecured and is repayable on demand with 60 days notice and the annual interest accruing is 10 percent payable on repayment of the loan.

Further details are disclosed in note 26.

16. Creditors: Amounts falling due within one year

Bank loans
Other loans
Trade creditors
Other taxation and social security
Pension contributions payable
Other creditors
Accruals and deferred income		 Group
2021
£
86,522
28,000
12,294
9,945
2,080
9,695
5,400
153,936		 Group
2020
£
56,844
28,000
40,024
20,210
2,051
5,747
5,400
158,276		 Company
2021
£
72,355
-
6,956
7,043
1,793
1,337
5,400
94,884		 Company
2020
£
56,844
-
20,782
14,795
2,051
1,337
5,400
101,209

The mortgage loans are secured on the charity's freehold properties at 22 Rectory Road, Beckenham, BR3 1AA and 2 Beckenham Road, Beckenham, BR3 4LR.

17. Creditors: Amounts falling due after more than one year

Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Bank loans 1,763,507 1,691,690 1,677,674 1,691,690

Page 30

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Included within the above are amounts falling due as follows:

Between one and two years
Bank loans
Between two and five years
Bank loans
Over five years
Bank loans		 Group
2021
£
94,850
284,551
1,384,106		 Group
2020
£
56,844
170,532
1,464,314		 Company
2021
£
74,850
224,551
1,378,273		 Company
2020
£
56,844
170,532
1,464,314

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Payable or repayable by instalments Group
2021
£
1,384,106
1,384,106		 Group
2020
£
1,464,314
1,464,314		 Company
2021
£
1,378,273
1,378,273		 Company
2020
£
1,464,314
1,464,314

The mortgage loans are secured on the charity's freehold properties at 22 Rectory Road, Beckenham, BR3 1AA and 2 Beckenham Road, Beckenham, BR3 4LR.

18. Financial instruments

Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Financial assets
Financial assets measured at fair value
through income and expenditure 56,315 44,638 43,944 36,669

Financial assets measured at fair value through income and expenditure comprise balances held at bank.

Page 31

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Statement of funds

Statement of funds - current year

Unrestricted funds
General fund
Reserves
Revaluation reserve		 Balance at 1
April 2020
£
2,761,910
(477,634)
-
2,284,276		 Income
£
1,135,113
83,875
-
1,218,988		 Expenditure
£
(627,769)
(219,647)
-
(847,416)		 Transfers
in/out
£
-
-
2,170,000
2,170,000		 Balance at
31 March
2021
£
3,269,254
(613,406)
2,170,000
4,825,848

Page 32

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General fund
Reserves
Restricted funds
Love offering
Total of funds		 Balance at
1 April 2019
£
2,299,345
(320,526)
1,978,819
-
1,978,819		 Income
£
1,224,287
138,717
1,363,004
2,789
1,365,793		 Expenditure
£
(760,576)
(295,824)
(1,056,400)
(3,936)
(1,060,336)		 Transfers
in/out
£
(1,147)
-
(1,147)
1,147
-		 Balance at
31 March
2020
£
2,761,909
(477,633)
2,284,276
-
2,284,276

20. Summary of funds Summary of funds - current year

General funds Balance at 1
April 2020
£
2,284,276
Balance at
1 April 2019
£
1,978,819
-
1,978,819		 Income
£
1,218,988
Income
£
1,363,004
2,789
1,365,793		 Expenditure
£
(847,416)
Expenditure
£
(1,056,400)
(3,936)
(1,060,336)		 Transfers
in/out
£
2,170,000
Transfers
in/out
£
(1,147)
1,147
-		 Balance at
31 March
2021
£
4,825,848
Balance at
31 March
2020
£
2,284,276
-
Summary of funds - prior year
General funds
Restricted funds
2,284,276

Page 33

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
5,794,536
Current assets
948,755
Creditors due within one year
(153,936)
Creditors due in more than one year
(1,763,507)
Total
4,825,848		 Total
funds
2021
£
5,794,536
948,755
(153,936)
(1,763,507)
4,825,848

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2020
£
3,629,848
504,394
(158,276)
(1,691,690)
2,284,276		 Total
funds
2020
£
3,629,848
504,394
(158,276)
(1,691,690)
2,284,276

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Decrease/(increase) in debtors
Decrease in creditors
Net cash provided by operating activities		 Group
2021
£
371,572
54,366
(14,183)
(34,019)
377,736		 Group
2020
£
305,457
45,467
31,530
(6,071)
376,383

Page 34

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

23. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 Group
2021
£
56,315
56,315		 Group
2020
£
44,638
44,638

24. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1 April
2020
£
44,638
(86,895)
(1,691,690)
(1,733,947)		 Cash flows
£
11,677
(8,040)
56,516
60,153		 New loans
£
-
(21,667)
(128,333)
(150,000)		 At 31 March
2021
£
56,315
(116,602)
(1,763,507)
(1,823,794)

Page 35

CITYGATE CHRISTIAN OUTREACH CENTRE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

25. Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £11,522 (2020 - £9,507) Pension contribitions of £2,080 (2020: £2,051) were payable to the fund at the balance sheet date and are included in creditors.

26. Related party transactions

Advanced via Mr J Melfi and Mr A Samways, trustees 2021
£
304,700
304,700		 2020
£
256,000
256,000

The charity has made loans to an individual amounting to £875,450 (2020: £456,950) at the year end. The loans were made by the charity to the individual on a personal basis in order that he may build a home for disabled children in Dubai, United Arab Emirates. The terms of the loans are that they be repayable within 60 days of notice being given and bear interest at 10% per annum. The charity paid the funds amounting to £17,000 (2020: £167,500) initially to a trustee, Mr Julian Melfi, who then transferred the funds to the individual. A further £287,700 (2020: £88,500) was transferred via Mr A Samways, another trustee. £113,800 (2020: £5,300) of loans were paid directly to the individual.

The loans were advanced without being secured on any assets owned by the individual. There is some doubt as to whether the funds can be extracted from the United Arab Emirates or that the individual is in a position to repay these funds from assets available in the UK. It may be necessary to make full provision for loss on these funds in the accounts, which would result in a deficit for the year of £503,878, rather than a surplus of £371,572. The trustees consider that the loans are fully recoverable but have been unable to provide any evidence that this is the case.

Subsequent to the year end the charity has continued to provide loans to the individual, on similar terms to those offered by the year end. The charity's total exposure to amounts that may be non-recoverable totals £915,450 at the date of the approval of these financial statements.

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