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2020-08-31-accounts

DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD (a company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

Charity Number: 1112705 Company Number (England and Wales): 05642162

DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

CONTENTS Page
Reference and administrative details 1
Trustees’ report 2
Independent examiners’ report 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12

DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHURCH

Trustees/Directors Simon Cleminson (resigned 5 December 2020)
David Coleman
Juan Esquivel
Casian Sala (Chair)
Tirrian Sharp
Wesley Vaughan (appointed 1 September 2019)
Lesley Walker
Christopher Whealy
Registered office address Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Independent Examiners Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Bankers Barclays Bank plc
Broadgate Corporate Banking Centre
155 Bishopsgate
London
EC2M 3XA
Charity registration number 1112705
Company registration number 05642162 (England and Wales)

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

The Board of Trustees present the statutory report with the accounts of Trinity Church Brentwood for the year ended 31 August 2020.

The accounts have been prepared in accordance with current accounting policies and comply with the charitable company’s memorandum and articles of association, applicable laws and the requirements of the 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.

1. TRUSTEES

During the financial year, one trustee (Rev. Wesley Vaughan) was appointed on 1 September 2019. After the financial year-end, one trustee (Simon Cleminson) retired on 5 December 2020.

Statement of Trustees’ Responsibilities

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

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company of its incoming resources and the application of those resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and taking any such reasonable steps to prevent and detect fraud or other irregularities.

So far as each of the trustees is aware at the time the report is approved:

Trustee and employee liability insurance

Trustees and employee liability insurance has been purchased by the charity as permitted by the Charity Commission and the Company’s Memorandum of Association.

Trustee recruitment, induction and training

Trustees are nominated by the Church congregation, candidates are screened and formally approved for appointment by the Trustee Board. All new Trustees are provided with information on the duties and responsibilities of being a Trustee.

All Trustees are encouraged to undertake continuation training from time to time, including attending relevant courses and seminars held within and outside the charity. The Trustees are also kept informed on charity sector issues by professional advisors, fact sheets and newsletters from auditors.

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

Remuneration of key management personnel

The trustees recognise that as a board, they comprise the key management personnel of the charity in charge of directing, controlling, running and operating the Charity on a day to day basis. With the exception of Rev Wesley Vaughan who, as a minister of religion, is permitted by the Articles of Association to be remunerated, all trustees give their time freely and no trustee has received any remuneration in the year.

2. STRUCTURE, GOVERNANCE AND MANAGEMENT

The Board of Trustees sets the overall strategic policy framework and budget of the charity and is responsible for safeguarding its assets. The Trustees usually meet formally on a fortnightly basis. Discussions and resolutions agreed within meetings are recorded in the meeting minutes. The Trustees have also held formal meetings with the Leadership Group.

The Board has delegated responsibility for the day-to-day management to the following department heads:

Public Benefit

In setting the charity’s objectives, the Trustees have paid due regard to the Public Benefit guidance published by the Charity Commission. The manner in which it fulfils this obligation is detailed in the sections below.

Principal aims and activities – Mission Statement

We are a family church. We believe in people coming face to face with the reality of the living, miracle-working God. With the Bible as our touchstone, we proclaim the Gospel of Jesus Christ to all, teaching the principles of God and equipping people old and young to fulfil His purposes.

The aims of the charity are to reach the lost, care for the needy, develop tomorrow’s church by upholding traditional Christian values through the advancement of religion and the propagation and furtherance of the Gospel of God concerning His Son Jesus Christ and the preaching and teaching of the Word of God.

3. OBJECTIVES & ACTIVITIES

Our main strategic objectives are:

The Trustees keep the activities under continual review to ensure that we are achieving our main aim of reaching people with the gospel.

4. ACHIEVEMENTS AND PERFORMANCE

Pastoral Report for 2019/20

Trinity Church is a gathering of believers in Jesus Christ from the Brentwood and surrounding district. This church is aligned with the Elim denomination through its association with Elim Church Incorporated (ECI).

The purposes of Trinity Church encompass a number of areas:

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

1) To provide Christian fellowship for those of ‘like precious faith’;

2) To reach people at home and overseas by communicating the ‘Good News’ of Jesus Christ;

3) To raise believers in Christian maturity;

4) To release people to biblically meet the needs of others locally within the world in which they engage;

5) To maintain a place of worship for the meeting of believers;

6) To observe the sacraments of baptism by full immersion and the ceremony of the Lord’s table;

7) The solemnisation of marriages;

8) The dedication of children and infants;

9) To undertake funeral services;

10) To create needs-led leadership and departments, to promote the work of God at home and abroad in preaching, teaching pastoral care and social assistance/ministries.

Review of progress and achievements 2019/20

The appointment of a new Senior Pastor at the start of the financial year reshaped some of the ongoing activities and set in motion other actions. Some of them have been completed, while others are on-going.

The Pastor provides pastoral care to the congregation by leading the Sunday meetings and Wednesday prayer meetings. In addition, an estimated ¾ of the congregation has met the Pastor individually (or as families). Delivered in person, through video conference or by phone, these meetings have given the Pastor and the congregation an opportunity to get to know each other. These meetings are scheduled to continue in perpetuity.

Church departments have been identified or reviewed, and leaders have been appointed. These included a Missions Team, a Worship Team, a Men’s Ministry, and a Welcome Team.

After one year of getting to know the new congregation and prayerful consideration, the Pastor appointed a new Church Leadership Team. Together with the Pastor, the Leadership Team will be responsible for setting up the church mission, defining and implementing its purposes and providing pastoral care.

The review of other activities such as the Children’s department (Sunday School) and the Youth department is ongoing.

Weekly church services, teaching series and prayer meetings have been maintained online through the COVID-19 pandemic, along with pastoral care bubbles offering a sense of inclusion during the lockdown.

During this period, the platform in the church hall was refurbished to complement a new season of ministry and worship team structure. Diversification into online services is being planned with a longer-term purpose in mind, enabling a greater reach to people of faith who are either housebound or unable to attend church service, or who are seeking faith, or consider connecting with the church.

The Pastor has also engaged with the wider Brentwood Christian community, through foodbank initiatives, Brentwood Churches Together and minister fraternals.

Other achievements

The arrival of a new senior Pastor enabled the trustees to focus on their compliance and charity-driven activities. Having already started, the trustees will continue to work on shaping the relationship between the leadership team and trustee board, and establishing open communication and accountability through Terms of Reference.

In December 2019, we completed the renovation of the ground floor flat of Bellhouse. The works were procured following a tender process and supervised by the trustees.

Starting in March 2020, we decided to make the Fellowship Building available to various social outreach initiatives, as well as offering pandemic specific support (e.g. accommodation to a church member working for the NHS and one external education worker). The Manna Meals charity used the premise’s kitchen facilities to prepare and store frozen meals ready for circulation within the local community as part of a wider Brentwood Borough Council initiative during the COVID-19 lockdown and beyond, free of charge.

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

Given the frequent changes in legislation and government advice, the trustees set up a COVID-19 Health & Safety committee, comprised of two members of the board and three members of the congregation. The committee is meeting regularly, and make recommendations about the restricted use and impending opening of the physical church grounds (the site currently remains closed to all but essential maintenance activities and preparation for online streaming).

We would like to thank the skeleton staff operating the premises and the gardening team for their support throughout the pandemic.

COVID-19

In response to the coronavirus pandemic, the charity has followed the government guidelines. We have conducted a risk assessment of all activities and made sure that wherever possible, employees can work from home and maintain social distancing for the activities that cannot be conducted remotely. We will continue to monitor closely the situation and update our position in line with any future developments.

We have successfully transferred the main activities of the church online, making them more accessible to the wider community.

From a financial perspective, during the twelve months, the church continued to receive donations at the same levels seen before the pandemic.

We have updated the risk register to include COVID-19. Should the lockdown and social distancing rules continue for an extended period of time, based on the current data, we believe that church membership will stay the same. However, we recognise that other, longer-term consequences, such as job losses or a drop in member’s income may affect the level of donations. Consequently, we are monitoring the situation on a monthly basis and we will be able to respond in a timely manner should this happen.

5. FINANCIAL REVIEW

The charity recorded a deficit for the year of £262,351 compared with a deficit of £131,709 in 2019. Total income was £358,448 with the main income being from the church activities which amounted to £354,841, a fall of £65,861 compared to 2019. The trustees view this as a positive result in line with the challenges caused by the pandemic and the resultant lockdown. Expenditure increased from £561,382 in 2019 to £620,799. The trustees will continue to review the costs of its activities with the aim of increasing efficiency, reducing costs and focusing on those areas that maximise the public benefit.

Reserves policy

It is the policy of the Trustees to hold minimal reserves. This is considered acceptable in view of the number of donors who make regular donations to the charity. At the year end, the charity had a deficit in free reserves, defined as unrestricted funds less those tied up in fixed assets, of £354,450 (2019: deficit of £153,849). This position will be brought into surplus over the next financial years with the completion of the sale of Brizes Park after the year end. The trustees continually review their working capital needs and will continue to monitor the free reserves position to ensure that the charity continues to have a firm base from which to pursue its objectives.

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

Principal Risks and uncertainties

Risk management

The Board of Trustees has ensured that the process of identifying, assessing and mitigating risk is linked to the objectives of Trinity Church Brentwood; that the process covers key risk areas; and that risk management is ongoing and embedded within its management and operating procedures. The process covers all areas of risk - financial, governance, operational and reputational, and is focused primarily on major risks. The Trustees are satisfied that systems are in place to mitigate any exposure to major risks but recognise the need to review and make appropriate changes to its governance arrangements. An external Health and Safety Advisor provides external monitoring of Health and Safety as well as to provide advice on new legislation and promote better adherence to safe working practices on both sites. An external advisor provides HR support to ensure employment legislation and procedures are up to date and complied with. The principal risks and uncertainties identified by the charity are as follows:

1. Leadership transition

With the senior pastor role now filled, the Board recognises that the Church remains in a period of transition in which the pastor requires time to gain understanding of the congregation’s needs, and to create a clear vision and mission statement for the Church going forward. This should not be rushed as these decisions are integral to the future of the Church. Currently, the Church has a senior pastor and a youth pastor and has a newly appointed leadership team and music ministry. The risk associated with destabilising church members due to ongoing change and limited pastoral support has lowered as the focus now shifts onto the establishment of the leadership team and the setting of the Church’s direction moving forward.

2. Church Estate

There has been restricted investment into the Church estate over a sustained period, resulting in operational limitations and raising the risk profile associated with both health and safety and security. Over 2019/20, immediate requirements have been prioritised and smaller projects undertaken within the limits imposed by funding restrictions. With the sale of Brizes Park, there is an acknowledgement by the Board that the Coxtie Green Road site requires investment and to this end, a site survey was undertaken in 2020. This allowed the Board to better understand the extent of investment required and there is an ongoing task to prioritise the work required in line with Church key priorities. In the meantime, the Church holds a register of operational works required and approval of funding associated with health and safety has been prioritised.

Apart from essential maintenance activities, charity related activities and access to the Trinity Nursery, the church site has remained closed to the church congregation and public since April 2020. Health and safety is monitored by the Site Manager and restricted activities are risk assessed in line with Government guidelines.

3. Investment from the sale of Brizes Park

The sale of Brizes Park will result in a significant investment of funds into the charity trust and the Board has a legal duty to ensure that funds are invested wisely and in line with the Church mission. The Board has therefore engaged with specialist providers to support the development of the Church Investment Policy and is in the process of agreeing an Ethical Investment Policy. There will be an allocation of funds for both investment and contingency planning, and the Board will seek opportunities to donate to other charitable causes that align with the Church mission statement.

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

6. FUTURE PLANS

With the senior pastor now in place and a new church leadership team appointed, the key role and responsibilities of the leadership is to provide spiritual oversight, direction and vision for the church.

We are committed to being a welcoming church, serving both its congregation and also seeking appropriate opportunities to serve those in the local and wider community.

We will continue to strengthen and develop links with other local churches for the mutual benefit of spiritual edification, and to combine efforts to support the needs of our community, either providing direct support or through partnering with associated charities.

Together with our Senior Pastor and leadership team, the trustees will be seeking to set in place a clear governance structure, defining the church ministry and trusteeship roles and responsibilities and the mutual accountability between them.

THANKS

Our thanks to all those who have supported us during the past year. We go forward building on the foundation of God’s divine purposes and seeking to fulfil His will in what we do.

APPROVAL

In preparing this report the Trustees have taken advantage of the exemptions available to small companies by the Companies Act.

This report was approved by the Trustees on the 30[th] January 2021 and signed on their behalf, by:

Casian Sala

Trustee

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF TRINITY CHURCH BRENTWOOD

I report to the Trustees on my examination of the accounts of Trinity Church Brentwood for the year ended 31 August 2020 which are set out on pages 9 to 21.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”). The trustees are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination.

Having satisfied myself that the accounts of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the requirements of the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

Since the charity’s income is in excess of £250,000, your examiner must be a member of a body listed in the 2011 Act. I can confirm that I am qualified to undertake the examination because I am a registered member of the Institute of Chartered Accountants of England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Adam Halsey Haysmacintyre LLP Institute of Chartered Accountants of England and Wales

10 Queen Street Place London EC4R 1AG

Date: 30 January 2021

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

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

INCOME FROM:
Notes
Unrestricted
Funds
£

Charitable activities: -
Church
312,100
School
-
Book Shop
3,325
Total income
2
315,425
EXPENDITURE ON:
Charitable activities:-
Church
581,265
School
-
Conferences and Choir
8,216
Book Shop
3,506
Total expenditure
2
592,987
Net income/expenditure
(277,562)
Transfers between funds
9,11
3,360
Net movement in funds
(274,202)
Funds brought forward
2,758,186
Funds carried forward
2,483,984
===========
 Designated
Funds
£
Restricted
Funds
£
Total
2020
£
Total
2019
£
21,580
21,161
354,841
420,702
-
-
-
2,651
-
282
3,607
6,320
21,580
21,443
358,448
429,673
7,416
20,114
608,795
463,909
-
-
-
74,084
-
-
8,216
17,294
-
282
3,788
6,095
7,416
20,396
620,799
561,382
14,164
1,047
(262,351)
(131,709)
-
(3,360)
-
-
14,164
(2,313)
(262,351)
(131,709)
26,805
18,967
2,803,958
2,935,667
40,969
========
16,654
========
2,541,607
=========
2,803,958
=========

There were no recognised gains and losses other than those included above.

The accompanying accounting policies and notes form an integral part of these financial statements.

Full comparatives for the 2019 year are shown in note 15.

All the activities above relate to continuing activities.

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

COMPANY NUMBER: 05642162

TRINITY CHURCH BRENTWOOD

BALANCE SHEET

FOR THE YEAR ENDED 31 AUGUST 2020

2020 2019
Notes £ £ £ £
FIXED ASSETS
Tangible assets 4 2,838,434 2,912,035
CURRENT ASSETS
Stock 19,068 18,838
Debtors 5 12,108 47,527
Cash at bank and in hand 126,112 348,771
157,288 415,136
CREDITORS: amounts falling due
within one year 6 (353,854) (408,601)
NET CURRENT ASSETS/
(LIABILITIES) (196,566) 6,535
TOTAL ASSETS LESS CURRENT
LIABILITIES 2,641,868 2,918,570
CREDITORS: falling due in more than 7
one year (100,261) (114,612)
NET ASSETS 2,541,607 2,803,958
========== ==========
RESERVES
Unrestricted funds 9 2,483,984 2,758,186
Designated funds 10 40,969 26,805
Restricted funds 11 16,654 18,967
2,541,607 2,803,958
========== ==========

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

The financial statements were approved and authorised for issue by the Board of Trustees on the 30[th] of January 2021 and were signed below on its behalf by:

Casian Sala

Trustee

The accompanying accounting policies and notes form an integral part of these financial statements.

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2020

Net cash provided by (used in) operating activities
Note
A
Cash flows from investing activities
Interest income
Interest paid
Purchase of tangible fixed assets
Cash provided by (used in) investing activities
Cash flows from financing activities
Repayment of bank loans
Increase (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year
==		 2020
£
(199,390)
421
(2,342)
(6,998)
(8,919)
(14,350)
(222,659)
348,771
126,112
========
==		 2019
£
282,110
)
)
)
460
(3,911
-
(3,451
(13,665
264,994
83,777
348,771
========

A: RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

2020
£
Net income/(expenditure) for the reporting period
(262,351)
Adjustments for:
Investment income
(421)
Interest paid
2,342
Depreciation charge
80,599
Increase in stock
(230)
Decrease/(Increase) in debtors
35,419
Increase/(decrease) in creditors
(54,748)
Net cash provided by (used in) operating activities
(199,390)
=========
 2019
£
(131,709)
(460)
3,911
75,501
(123)
(1,224)
336,214
282,110
==========

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES

BASIS OF PREPARATION

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the 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 2015.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 August 2020 and the comparative information presented in these financial statements for the year ended 31 August 2019. The financial statements are drawn up under the historical cost convention.

The Charity is a Public Benefit Entity registered as a charity and company in England and Wales, it was registered on 1 December 2005 (charity number 1112705 and company registration number 05642162).

Donations and gifts

All monetary donations and gifts are included in full in the statement of financial activities when receivable, provided that there are no donor-imposed restrictions as to the timing of the related expenditure, in which case recognition is deferred until the pre-condition has been met.

Legacies are included in the statement of financial activities when the charity is advised by the personal representative of an estate that payment will be made and the amount involved can be quantified.

Donations under Gift Aid together with the associated income tax recoveries are credited as income when the donations are receivable.

Investment income

Investment income, including associated income tax recoveries, is recognised when receivable.

Expenditure

Expenditure is accounted for on an accruals basis. The irrecoverable element of VAT is included with the item of expense to which it relates.

Charitable expenditure relates to costs incurred in delivering the charity’s activities and services to its beneficiaries. Governance costs comprise the costs of running the charity, including strategic planning for its future development, internal and external audit, and costs of complying with constitutional and statutory requirements.

Fund accounting

Restricted funds are funds used for purposes as specified by the donor. Related expenditure is charged to the fund, together with a fair allocation of overheads and support costs.

Unrestricted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the charity. Designated funds are unrestricted funds earmarked by the Trustees for specific projects.

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost net of depreciation. Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets other than freehold land over their estimated useful economic lives. A full years’ worth of depreciation is charged in the year of asset purchase regardless at which point the asset is purchased. The rates generally applicable are:

Freehold properties 2% straight line Freehold improvements 2-10% straight line Plant and equipment 10% straight line Furniture and fittings 10% straight line Motor vehicles 25% reducing balance Computer equipment 33.3% straight line

Stock

Stock consists of items of books and stationery and is held in the balance sheet at the lower of cost and Net Realisable Value.

Leased assets

Assets held under finance leases and hire purchase contracts are capitalised in the balance sheet and depreciated over their expected useful lives. The interest element of leasing payments represents a constant proportion of the capital balance outstanding and is charged to the statement of financial activities over the period of the lease.

All other leases are regarded as operating leases and the payments made are charged to the statement of financial activities on a straight line basis over the lease term.

Taxation

By virtue of its charitable status, Trinity Church Brentwood is not liable for corporation tax on its charitable activities under the Corporation Taxes Act 2010.

Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.

Debtors

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

Creditors

Creditors are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Employee benefits

Pensions

The charity contributes into a Defined Contribution Pension Scheme on behalf of its paid employees. The pension costs charged against incoming resources are the employer's contributions to employee's own private pension scheme in the accounting period. Other than these contributions, the Charity has no liability to these schemes.

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DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING POLICIES (continued)

Going concern

Having reviewed the funding facilities available to the Charity together with the future projected cash flows, the Trustees have a reasonable expectation that the Charity has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the Charity’s financial viability. Accordingly, they also continue to adopt the going concern basis in preparing the financial statements.

Critical judgements and estimates

In the application of the accounting policies, the Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

2. ANALYSIS OF INCOME AND EXPENDITURE

Income
Church
£
Donations and legacies
246,150
Operating activities
-
Investment income
421
Other income
60,774
Furlough Receipts
4,755
Total income
312,100
Expenditure
Staff costs
133,629
Premises and equipment
193,729
Operating costs
122,351
Depreciation
80,599
Finance costs
3,239
Governance
44,322
Other costs
3,311
581,180
Grants and donations
85
Total expenditure
581,265
Net income/
(expenditure)
(269,165)
=========		 Conferences
and Choir
£
Book
Shop
£
-
-
-
3,325
-
-
-
-
-
-
-
3,325
-
-
-
-
-
2,712
-
-
-
595
-
-
8,216
199
8,216
3,506
-
-
8,216
3,506
(8,216)
(181)
=========
========		 Designated
£
21,580
-
-
-
-
21,580
-
-
-
-
-
-
-
-
7,416
7,416
14,164
=========		 Restricted
£
Total 2020
£
Total
2019
£
21,443
289,173
357,714
-
3,325
5,385
-
421
460
-
60,774
66,114
-
4,755
-
21,443
358,448
429,673
-
133,629
113,469
-
193,729
123,987
-
125,063
78,488
-
80,599
81,543
-
3,834
4,628
-
44,322
64,533
20,396
32,122
75,658
20,396
613,298
542,306
-
7,501
19,076
20,396
620,799
561,382
1,047
(262,351)
(131,709)
=========
=========
=========
=

14

DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

2. ANALYSIS OF INCOME AND EXPENDITURE (continued)

Conferences Book
Church Academy and Choir Shop Designated Restricted Total 2019
£ £ £ £ £ £ £
Income
Donations and legacies 296,210 2,359 - - 25,882 33,263 357,714
Operating activities - - - 5,385 - - 5,385
Investment income 460 - - - - - 460
Other income 65,822 292 - - - - 66,114
Furlough Receipts - - - - - - -
Total income - 5,385 25,882 33,263 429,673
Expenditure
Staff costs 113,895 (426) - - - - 113,469
Premises and equipment 75,575 48,328 - 84 - - 123,987
Operating costs 62,575 11,421 - 4,492 - - 78,488
Depreciation 73,618 7,925 - - - - 81,543
Finance costs 3,911 208 - 509 - - 4,628
Governance 63,139 1,394 - - - - 64,533
Other costs 17,361 - 17,294 150 - 40,853 75,658
410,074 68,850 17,294 5,235 - 40,853 542,306
Grants and donations 31 - - - 19,045 - 19,076
Total expenditure 410,105 68,850 17,294 5,235 19,045 40,853 561,382
Net income/
(expenditure) (47,613) (71,419) (17,294) 150 6,837 (7,590) (131,709)
========= ========= ========= ======== ========= ========= =========

15

DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

3. TRUSTEES AND EMPLOYEES 2020 2019
£ £
Staff costs during the period were as follows:
Gross salaries and wages 121,685 102,593
Social security costs 6,490 5,543
Pension costs 4,341 3,428
Benefits 1,113 1,905
Redundancy and termination payments - -
133,629 113,469
======== =========
2020 2019
Number Number
Ministry and ministry support 2 1
Administration 2 7
Premises and Other 2 3
6 11
====== ======

No employees received emoluments exceeding £60,000 during the year (2019: none).

The charity contributed to a Defined Contribution Pension Scheme on behalf of the above employee during the prior financial year.

Details of remuneration and reimbursement of expenses received by Trustees in connection with their duties as Trustees of the Charity are disclosed in Note 14.

In 2020 and 2019 all key management members were Trustees and were unremunerated, with the exception of Rev Wesley Vaughan who, as a minister of religion, is permitted by the Articles of Association to be remunerated.

16

DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

4.
TANGIBLE FIXED ASSETS
Cost
Land and
Buildings
£
Plant and
Equipment
£
Furniture
and fittings
£
At 1 September 2019
4,263,089
779,902
338,193
Additions
-
6,998
-
At 31 August 2020
4,263,089
786,900
338,193
Depreciation
At 1 September 2019
1,392,071
747,105
333,193
Charge for the year
72,731
6,869
150
At 31 August 2020
1,464,802
753,974
333,343
Net Book Value
At 31 August 2020
2,798,287
32,927
4,850
==========
========
========

At 31 August 2019
2,871,018
==========
32,797
========
5,000
========

5.
DEBTORS
Trade debtors
Prepayments and accrued income
Other debtors

6.
CREDITORS: amounts falling due
within one year
Trade creditors
Accruals
Taxation and social security
Other creditors
Bank loans
Brizes Deposit
 Motor
Vehicles
£
155,376
-
155,376
152,156
849
153,005
2,371
========
3,220
========
2020
£
-
12,108
-
12,108
========
2020
£
21,635
9,842
-
-
12,377
310,000
353,854
=========		 Total
£
5,536,560
6,998
5,543,558
2,624,525
80,599
2,705,124
2,838,434
==========
2,912,035
==========
2019
£
8,223
17,306
21,998
47,527
========
2019
£
31,876
7,338
2,900
44,111
12,376
310,000
408,601
========

17

DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

7.
CREDITORS: amounts falling due
after more than one year
Bank loans repayable in:
1 - 2 years
2 - 5 years
Over 5 years
Bank loan
==		 2020
£
2019
£
12,377
12,376
37,130
37,129
50,754
65,107
100,261
=======
114,612
========

The charity had one bank loan at the year end. This bank loan is secured against the freehold property for which the loan was obtained in November 2007 and bears an interest of 1.45% above Bank of England base rate. Only interest was payable on the loan for the first 5 years with capital and interest repayment commencing from November 2013. The loan is to be repaid in full by November 2027. The amount owing on this loan was £112,638 at 31 August 2020 (2019: £126,988).

8.
NET ASSETS BETWEEN FUNDS
Unrestricted
£
Designated
£
Restricted
£
Fixed assets
2,838,434
-
-
Current assets
99,605
40,969
16,654
Current liabilities
(353,854)
-
-
Liabilities due in more than one year
(100,261)
-
-
2,483,984
=========
40,969
========
16,654
========
.
NET ASSETS BETWEEN FUNDS 2019
Unrestricted
£
Designated
£
Restricted
£
Fixed assets
2,912,035
-
-
Current assets
261,287
19,968
18,967
Current liabilities
(408,601)
-
-
Liabilities due in more than one year
(6,535)
-
-
2,758,186
=========
19,968
=======
26,557
=======		 Total
£
2,838,434
157,288
(353,854)
(100,261)
2,541,607
=========
Total
£
2,912,035
415,136
(408,601)
(6,535)
2,935,667
==========

9. DESIGNATED FUNDS
DESIGNATED FUNDS Opening Closing
Balance Income Expenditure Transfers Balance
£ £ £ £ £
Special Projects fund 26,805 21,580 (7,416) - 40,969
======= ========== ========= ========= ========

The special projects fund represents 10% of unrestricted donations that have been designated towards worthy causes at the discretion of the church’s Leadership Group and Ministry Teams. The year-end balance is held in cash.

DESIGNATED FUNDS 2019 Opening Closing
Balance Income Expenditure Transfers Balance
£ £ £ £ £
Special Projects fund 19,968 25,882 (19,045) - 26,805
======= ========== ========= ========= ========

18

DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

10. RESTRICTED FUNDS Opening Closing
Balance Income Expenditure Transfers Balance
£ £ £ £ £
Bursary Fund 9,323 - - - 9,323
School Nursery 110 - - - 110
Medical Fund 3,709 - - - 3,709
Athletes in Action Fund 307 2,002 (1,082) - 1,226
Restricted Book Shop Funds (410) 282 (282) - (410)
Music Funds 1,979 - - - 1,979
Conference in Turkey 507 - (507) - -
Trinity Grounds Fund 82 1,540 (906) - -
Heater Donation 3,360 - - (3,360) -
Conference in Turkey - 9,960 (9,960) - -
Neal Morse - 1,000 (1,000) - -
CFM - 1,610 (1,610) - -
Kenya Mission - 2,049 (2,049) - -
Other Restricted Funds - 3,000 (3,000) - -
18,967 21,443 (20,396) (3,360) 16,654
======== ======== ======== ======== ========

The Bursary Fund represents donations received from members of the church to provide financial assistance to parents who wish to send their children to the Trinity School. The Trustees work alongside a Bursary Committee to award the bursaries.

The School Nursery fund represents donations received to be attributed to the work of the school nursery.

The Medical Fund represents donations received to be attributed to those who attend the church and are in need of financial assistance towards their medical bills.

The Mission in Jos Fund consists of donations to Christian Faith Ministries International for its bible college in the city of Jos in Nigeria.

The Athletes in Action Fund represents donations received to provide organised sporting activities to young people in the local community. Such activities to be regular, affordable and supported by adults from this and other local churches. Where the teaching and sharing of the Christian faith and lifestyle is integral to each sports session.

The Music Fund represents donations received to help support the choir.

The Conference in Turkey Fund represents a team from the Church assisting with a Mission Conference in Turkey. Donations were received from members of the Church to help defray costs associated with this outreach.

The Trinity Grounds Fund represents £1,000 specifically set aside for maintaining the Church grounds.

The Heater Donation Fund represents donations received to replace the heaters in the Church hall that were no longer working.

Other restricted funds with £nil opening and closing balance represent income received for specific projects that has all been spent on those projects in the year.

19

DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

11. RESTRICTED FUNDS 2019 Opening Closing
Balance Income Expenditure Transfers Balance
£ £ £ £ £
Bursary Fund 14,557 - (5,234) - 9,323
School Nursery 110 - - - 110
Medical Fund 3,709 - - - 3,709
Athletes in Action Fund 1,142 10 (845) - 307
Restricted Book Shop Funds (485) 935 (860) - (410)
Choir Funds 1,979 - - - 1,979
Conference in Turkey 1,450 16,022 (16,965) - 507
Trinity Grounds Fund 575 89 (582) - 82
Matt Maguire - 150 (150) - -
Heater Donation 3,360 - - - 3,360
SNW Support - 7,120 (7,120) - -
Neal Morse - 1,153 (1,153) - -
Manna Meals -- 120 (120) - -
Other Restricted Funds 160 7,664 (7,824) - -
26,557 33,263 (40,853) - 18,967
======== ======== ======== ======== ========

12. CAPITAL COMMITMENTS

There were £nil capital commitments as at 31 August 2020 (2019 £nil).

13. INDEMNITY INSURANCE

The trustees have taken up indemnity insurance to cover losses arising from any claims made against them by reason of any wrongful act in their capacity of trustees.

14. TRANSACTIONS WITH TRUSTEES AND OTHER RELATED PARTIES

The aggregate of donations received from trustees in the year was £21,402.80 (2019: £30,553).

No Trustees were reimbursed for any expenses incurred during the year (2019: £364).

20

DocuSign Envelope ID: 4F8714B7-E47B-4624-BE7E-AE72BA656588

TRINITY CHURCH BRENTWOOD

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

15. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Designated Restricted Total
Funds Funds Funds 2019
Notes
£		 £ £ £
INCOME FROM:
Charitable activities:-
Church 362,492 25,882 32,328 420,702
School 2,651 - - 2,651
Book Shop 5,385 - 935 6,320
Total income 2 370,528 25,882 33,263 429,673
EXPENDITURE ON:
Charitable activities:-
Church 410,105 19,045 34,759 463,909
School 68,850 - 5,234 74,084
Conferences and Music 17,294 - - 17,294
Book Shop 5,235 - 860 6,095
Total expenditure 2 501,484 19,045 40,853 792,102
Net income/expenditure (130,956) 6,837 (7,590) )
(131,709
Transfers between funds 9,11 - - - -
Net movement in funds (130,956) 6,837 (7,590) )
(202,139
Funds brought forward 2,889,142 19,968 26,557 2,935,667
Funds carried forward 2,758,186 26,805 18,967 2,803,958
=========== ======== ======== =========

21