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2021-03-31-accounts

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Southgate Church Bury St Edmunds Suffolk (a company limited by guarantee)

Annual Report and Financial Statements for the period ended 31 March 2021 Charity Number: 1115737 Company registration number: 05815695

Southgate Church Bury St Edmunds Suffolk

Annual report and financial statements for the period ended 31 March 2021

Contents

Page:

Reference and administrative details Report of the trustees Independent Examiner’s report Statement of financial activities Balance sheet Notes to the financial statements

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Southgate Church Bury St Edmunds Suffolk

Reference and administrative details

Trustees:

Dr Stuart Lowe (Chair, Resigned 09/02/21) James C Harrington Robert Jones (Chair from 09/02/21) Adrian Lingwood Peter Maddock Helen Moore (Resigned 30/9/20) Shaun Richardson Susan Strachan David Wakeford Roger Whomes Philip Lloyd-Jones (Appointed 07/04/21)

Secretary to the Trustees:

J C Harrington

Registered office:

Southgate Community Centre, Caie Walk, Bury St Edmunds, Suffolk IP33 2PJ Tel: (01284) 703705

Registered Charity number: 1115737

Registered Company number: 05815695

Reporting Accountant

Andrew Prentice Partnership 5, Market Place, Stowmarket, Suffolk IP14 1DT

Bankers

CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ

Solicitors

Gross & Co, 83-84 Guildhall Street, Bury St Edmunds, IP33 1LN

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Southgate Church Bury St Edmunds Suffolk

Report of the trustees for the period ended 31 March 2021

The trustees present their report and accounts for the period ended 31 March 2021.

As for many people, the year has been one of adaption to trying circumstances and learning new ways of maintaining fellowship with each other and fulfilling our charitable objects and duties to serve others as per the example of the Lord Jesus Christ. It presented challenges and led to reflection on our blessings compared with many across the world who are denied such opportunities.

Review of April 2020 to March 2021

Although we could not meet in person, we are very grateful to those within the church community who used their gifts and abilities to enable us to use Zoom and other technology to meet on line and hence at least see, hear and speak to others. In this way, we were able to continue with our Sunday Morning Worship and Teaching and even have time after services for a chat with each other over a self-made drink and in some instances a cake or two. When permitted, we have trialled a few live services with restricted numbers attending but are looking forward to all meeting regularly and safely together in the coming months. We have been mulling over maintaining on line services etc. so that those who are unable to go to the Church’s premises are not left out of fellowship. The Church building adjoins the Southgate Community Centre with whom we have close links and the Church office is also situated there.

Using Zoom we were able to continue to hold mid-week prayer meetings and Bible studies. Some house groups were able to meet in a member’s garden to study the bible and pray for individuals, the local community as well as national and international needs. We are also grateful to many members who led our services and also to the guest preachers. Many of the latter came from other churches as we were without a Minister throughout the year. Through prayer and the help of our denominational partners, as of 18[th] April this year, Rev Mike Simm and Sarah, his wife came to join our fellowship and community. More about that in next year’s report!

Adapting to New Ways

One challenge was how to keep in touch with those who were isolating or preferred not to go out or not to appear on line. The elderly and ill were particularly of concern so to help to keep in touch with the Church community, a telephone network was set up to see how individuals were coping and to provide practical help. if permitted. With some help from family or church members, some were able to master a device to join in on line and others found the telephone network reassuring.

Another challenge was how could we continue to provide activities and teaching for the young people and others? That question soon gained an answer from Alison, our Family and Community Support Worker, with the help of many volunteers from the Church and some surprise guests. Meetings and activities were adapted to allow on line participation by youngsters and adults. Examples are:

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Southgate Church Bury St Edmunds Suffolk

Report of the trustees for the period ended 31 March 2021

If you want to know what is on or watch some of our services or events click on this link go to our website - or type into your browser https://www.southgatechurch.org.uk/

An Annual Report without data may disappoint some – so how about these statistics. Keeping the youth and children’s meetings going meant that the following could join in:

So a big thanks to all those who volunteered their skills and time in many different ways to maintain the work and help of the Church whether through leading services, preaching, zooming, leading prayer and Bible studies; youth and children’s activities, keeping the wheels going via admin and office work, maintenance, telephone network or being on the Leadership Team or a Trustee.

One learning point for us was not to assume that everyone would wish to appear on screen plus some do not have access to WI-FI and/or a device to view an on line activity. Fortunately, some had been shown how to use their devices by a relative or a member of the Church. It was also good to see new individuals joining in regularly with some on line events. Hence, as we move forward, we shall consider how we can meet the needs to meet together in person and also the need to maintain an on-line access.

Letting Go

The pandemic meant that some activities had to stop temporarily as it was not easy to find alternative ways. Examples are: the weekly coffee morning which was very popular but may feature again! The annual toy service could not be held within the regulations which was disappointing as the gifts from the Church are presented to a charity, the Ormiston Families Trust, to wrap up for prisoners to give to their children and preserve that important link between families. Our large community events were also not appropriate for social distancing requirements. Some of our members volunteer at the hospital or with Town Pastors or other charities; several were not able to help in the same way and remote working was not a practicable solution. I have not listed all the activities and events that were affected adversely. Even so, we look forward to continuing and re-forging our links and help in the coming months provided we are all sensible and continue to maintain the precautions to prevent the spread of the virus.

Stuart, a Trustee for over 7 years and also the Chair of Trustees relinquished his role to take on another key role in the Parish Church. Stuart steered us through several key changes and provided wise insight to us.

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Southgate Church Bury St Edmunds Suffolk

Report of the trustees for the period ended 31 March 2021

Objects and Activities

The Church is a registered charity and its objective is to advance the principles, teaching and practices of the Christian faith for the benefit of the public in particular, but not exclusively, in the Southgate area of Bury St Edmunds, Suffolk.

Southgate Church affirms its mission: “to Glorify God in Church, Community and World, through worship, prayer, discipleship, fellowship, service and mission”.

The Church as a charity provided public benefit activities in the following ways:

Regular and accessible opportunities for Christian worship for all:

A wide range of social and educational activities for people of all ages;

Pastoral and social support to individuals and families;

Activities in local schools and contributions to the curriculum;

Encouraging young people to help in activities and develop new skills such as using the sound system;

The giving of tithes and other financial grants to charities and community groups at home and abroad;

Promotion of leisure and educational opportunities for the whole community through events which are open to the community as well as the Church’s involvement in and help at events with the Southgate Community Partnership;

Activities for young people, elderly and other age ranges and interest groups; Use of the Church premises for activities including a regular weekly coffee morning. Supporting local charities and needs in the local area and Bury St. Edmunds;

Recognised as a ‘Home for Good’ Church via the local partner charity, Transforming Futures - Suffolk.

The Church’s premises are attached to the Southgate Community Centre and the Church office is also situated there. The Church maintains close links with the Community Centre and the local community. Southgate Church serves the area included in the Southgate ward of St Edmundsbury Borough Council. Information on our activities is published in a monthly publication ‘Southgate Directory’ which is delivered to every address in the catchment area.

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Southgate Church Bury St Edmunds Suffolk

Report of the trustees for the period ended 31 March 2021

Financial Review

The surplus of £792 for the period was lower than the previous year’s surplus of £18,962. Our income was broadly in line with the previous year . The coronavirus pandemic meant that the church did not regularly meet face to face during the year and therefore ad hoc collections were not received nor the associated gift aid. Some donors however switched to paying via the bank. Expenditure was higher by a little under £2,500 as there was significantly more expenditure on church house in readiness for the church’s new minister and additional ministry costs but these were offset by reductions in Fellowship costs, church group costs, Flower ministry, Church Centre maintenance and community centre hire all related to the pandemic. The church was without a minister during this and indeed the prior period allowing the Church Manse to be let to tenants thereby gaining an income of £10,634. The regular and faithful ongoing financial support of the congregation has continued albeit at a reduced level compared to recent years, the majority of this through tax efficient means. Expenditure was well controlled during the year and whilst the budget was set prior to the pandemic meaning there were a number of significant variations all of these were directly or indirectly related to the Pandemic. The charity’s policy of keeping three month’s running costs in reserves has been more than maintained with net current assets at the end of the period being £160,600 .

Structure, Governance and Management

Southgate Church is foremost a fellowship of individuals who believe that God is living and his son, the Lord Jesus Christ exemplified God’s life for us by dying in our place so that we may be restored to a real, living relationship with our God.

In legal terms, the Church is a company limited by guarantee incorporated on 12th May 2006 and was registered as a charity on 9th August 2006. The governance principles of the Church are set out in the Articles which are registered with both Companies House and the Charity Commission. The Articles were amended on 17th October 2018 and on 11th September 2019. The latter amendment provides for the Minister of the Church to be eligible to become a trustee if he opts to do so. Those amendments also included additional safeguards for the governance of the Church.

In the event of the company being wound up Church Members are required to contribute an amount not exceeding £10. That applies also to individuals who were past Members in the last 12 months prior to dissolution.

Southgate Church is a Local Ecumenical Partnership founded by Churches Together in Bury St. Edmunds and District over forty years ago. The founding denominations that signed the Sharing Agreement are the Church of England, the Baptist Church and the United Reformed Church. The Church has a Board of Trustees, the composition of which was amended by special resolution in October 2018 and allows the Church to draw upon the experience and guidance of other denominations. The Trustees meet several times during the year. The Board may comprise up to 12 trustees:

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Southgate Church Bury St Edmunds Suffolk

Report of the trustees for the period ended 31 March 2021

To retain its Christian ecumenical character, the Articles allow certain vacancies to be filled by drawing upon nominations from Churches Together in Bury St Edmunds & District and in other ways.

The ecumenical nature of the Church is overseen by a Local Advisory Group (LAG) comprised of a representative from each of the three last listed denominations above. The LAG may provide advice to the Minister and the Trustees/Church. The LAG has agreed that should the denominations above not be able to find a nominee to be a Trustee then the Trustees of Southgate Church could fill such a vacancy by electing a Trustee from the members of Southgate Church and/or from Churches Together in Bury St Edmunds. This is reflected in the amended governance documents.

The Church Leadership Team consists of the Minister and up to three members elected to the Team. To help with the work of the Church, several committees, known as teams or groups, have been established formally. The Annual General Meeting is held usually in September.

The Trustees regularly review the potential major risks to which the charity may be exposed and, if appropriate, establish policies, systems or procedures to manage those risks. For example, the Safeguarding Policy and Procedure is reviewed annually and training is kept under review. One Trustee is designated to keep a watching brief over safeguarding practices, checks and training.

Trustees' Responsibilities in Relation to the Financial Statements

Company law requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on 14th September 2021 and signed on their behalf by

R H Jones

Robert Jones Chair of the Trustees of Southgate Church, Bury St. Edmunds Suffolk

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Southgate Church Bury St Edmunds Suffolk

Independent Examiner’s Report to the Trustees of Southgate Church

I report on the accounts of the Southgate Church for the year ended 31 March 2021, which are set out on pages 9 to 17.

Respective responsibilities of trustees and examiner

As the charity’s trustees of the Company (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).

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

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

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.

Andrew Prentice FFA

22nd September 2021

Andrew M Prentice FFA

Andrew Prentice Partnership

Southgate Church Bury St Edmunds Suffolk

Statement of Financial Activities for the period ended 31 March 2021

_______________ _

Note
Unrestricted
Funds
Restricted
Funds
£
£
Income from:
Donations
2
70,425
901
Charitable activities
3
12,219
-
Investment income
2,005
-


Total incoming resources
84,649
901
Resources expended
Charitable activities
Charitable activities
4
83,530
401
Governance costs
6
827
-


Total resources expended
84,357
401
Net incoming/(outgoing) resources before
transfers
292
500
Transfers


Gross transfers between funds - in
-
-
Gross transfers between funds - out
-
-


Net incoming/(outgoing) resources for
the year
292
500
Fund balances at 1April 2020
396,871
500
Fund balances at 31 March 2020
397,163
1,000		 Total
Funds
2021
£
71,326
12,219
2,005

85,550
83,931
827

84,758
792

-
-

792
397,371
398,163		 Total
Funds
2020
£
72,619
26,362
2,146
101,127
81,484
681
82,165
18,962
3,250
(3,250)
18,962
378,409
397,371

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities. An analysis by fund of the comparative figures for 2020 is shown in note 2.

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Southgate Church Bury St Edmunds Suffolk

Balance sheet at 31 March 2021

Fixed assets
Tangible assets
Current assets
Debtors and prepayments
Cash at bank and in hand
Creditors amounts falling due within one year
Net current assets
Net assets
Funds
Unrestricted
Restricted
Total Reserves		 Note
8
9
10
11		 £
4,217
164,626
……….
168,843
(8,243)
……….		 2021
£
237,563
……......
160,600

398,163
……….
397,163
1,000
……….
398,163		 £
1,933
155,863
……..
157,796
(2,418)
………		 2020
£
241,993
155,378
………..
397,371
……….
396,871
500
………..
397,371

In approving these financial statements as trustees of the charitable company we hereby confirm:

The financial statements were approved by the Board on 14 September 2021 and signed on its behalf by

R H Jones

Robert Jones Trustee

The notes on pages 11 to 17 form part of these financial statements.

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Southgate Church Bury St Edmunds Suffolk

Notes forming part of the financial statements for the period ended 31 March 2021

1 Accounting policies

These financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16 July 2014, the Financial Reporting Standard for Smaller Entities (effective January 2015) and the Charities Act 2011.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

Income

Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Expenditure

All expenditure is accounted for on an accruals basis and is recognised when there is a legal or constructive obligation to pay. Expenditure has been classified under headings that aggregate all costs related to that category.

Costs of activities in furtherance of the charity’s objectives include staff costs. Support costs are those costs incurred indirectly in support of expenditure on the objects of the charity and include the costs of running the office and administration.

Governance costs are those incurred in connection with compliance with constitutional and statutory requirements.

Tangible fixed assets

The cost of tangible fixed assets is written off over their expected useful economic lives, on a straight line basis, as follows:

Freehold buildings - over 50 years Church Centre ramp - over 20 years Office and computer equipment - over 5 years

Taxation

The charity is not liable to tax on its activities for the period.

Fund accounting

Funds held by the charity are:

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Southgate Church Bury St Edmunds Suffolk

Notes forming part of the financial statements for the period ended 31 March 2021 (Continued)

2 Income Resources
Unrestricted
Funds
Restricted
Funds
£
£
Gift Aid – General
53,110
Legacy
Gift Aid – Envelopes
500
-
Gift Aid – Youth
-
Other Collections
2,131
Income Tax Recovered
11,909
Donations
2,775
Restricted Gifts
901
70,425
901
3
Income Resources
Unrestricted
Funds
Restricted
Funds
£
£
Fellowship Activities
516
-
Church Groups
90
-
Miscellaneous
319
-
SCP
660
-
Church House rental income
10,634
-

12,219
-
 Total
Funds
2021
£
53,110
500
-
-
2,131
11,909
2,775
901
71,326
Total
Funds
2021
£
516
90
319
660
10,634
12,219		 Total
Funds
2020
£
44,422
2,500
5,085
-
3,238
13,476
900
2,998

72,619

Total
Funds
2020
£
5,729
4,459
164
660
15,350

26,362

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Southgate Church Bury St Edmunds Suffolk

Notes forming part of the financial statements for the period ended 31 March 2021 (Continued)

4 Charitable Activities

Activities relating directly to the work of the church
Ministry
Youth worker
Sunday School & Youth work
Flowers, Libraries & Gifts
Church & Community Centre Occupancy costs
Church Centre Maintenance
Church House costs
Church House Maintenance
Fellowship activities
Depreciation of Fixed Assets
Mission & Training
Tithes
Events
Communications
Specific Gifts
Support costs allocated to activities
Staff costs
Telephone & Internet
Insurance
Postage & Stationery
Photocopier
Subscriptions
Computer costs
Payroll Administration
Bank charges
Total cost of Charitable Activities		 2021
£
10,403
23,876
1,728
117
3,079
553
902
13,303
400
5,504
27
9,200
-
1,568
401
71,061
9,552
404
406
485
589
1,185
-
180
69

12,870
83,931		 2020
£
4,466
23,957
3,860
712
6,644
2,445
342
3,174
6,576
5,577
157
9,140
-
667
1,472

69,189

9,523
460
427
341
431
863
5
180
65

12,295

81,484

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Southgate Church Bury St Edmunds Suffolk

Notes forming part of the financial statements for the period ended 31 March 2021 (Continued)

5 Staff costs

Wages and salaries
Social security costs
Pension costs		 2021
£
31,398
-
1,570

32,968
 2020
£
31,398
-
1,570

32,968

The charity employed 2 staff during the period. No employee received emoluments of over £60,000.

6 Governance costs

nance costs


Reporting accountant’s & independent examiner fees

Legal and professional fees

 2021

£

814

13

827		 2020
£
668
13
681

7 Trustees remuneration and related party transactions

The trustees did not receive any remuneration or reimbursement of expenses from the charity during the period.

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Southgate Church Bury St Edmunds Suffolk

Notes forming part of the financial statements for the period ended 31 March 2021 (Continued)

8
Tangible fixed assets
Freehold
Property
Office and
computer
equipment

£
£
Cost
At 1 April 2020
288,649
28,462
Additions
1,074
Disposals


At 31 March 2021
288,649
29,536


Depreciation
At 1 April 2020
56,937
18,181
Charge for the period
3,870
1,634
Disposals
-
-


At 31 March 2020
60,807
19,815


Net book value
At 31 March 2021
227,842
9,721


At 31 March 2020 231,712 10,280
9
Debtors
2021
£
Gift Aid debtor
2,344
Cyclescheme Loan
400
Other debtor
1,473

4,217


Total
£
317,111
1,074

318,185

75,118
5,504
-

80,622

237,563

241,993

2020
£

1,754
-
179

1,933

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Southgate Church Bury St Edmunds Suffolk

Notes forming part of the financial statements for the period ended 31 March 2021 (Continued)

10 Creditors: amounts falling due within one year


Tax, National Insurance and Pension
Expense creditors and accruals		 2021
£
1,111
7,132
8,243		 2020
£
1,144
1,274
2,418

11 Statement of Funds

Fund balances
at 31 March
2020
£
Restricted Funds
Gifts
500

500		 Incoming
resources
Resources
expended
Transfers
Fund
balances at
31 March
2021
£
£
£
901
401
-
1,000

901

401

-

1,000

Purposes of Restricted Funds:

Gift Fund represents donations received to be passed on to other organisations or for particular church projects.

12 Covid 19

Church activity during the year was impacted by the pandemic and both income and expenditure where not as expected though in truth the financial impact in the end was not as significant as originally feared. Whilst the early part of 2021/22 will continue to be affected as the pandemic continues there is an expectation that the church will reopen with face to face services in the summer and a return to some degree of normality and back to pre-covid operations but this is dependent on the Governments road map to recovery coming to fruition at the expected time.

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Southgate Church Bury St Edmunds Suffolk

Notes forming part of the financial statements for the period ended 31 March 2021 (Continued)

13 Limited liability

The charitable company has no share capital but is limited by guarantee. The members under the memorandum and articles of association each undertake to contribute to the assets of the charitable company, in the event of it being wound up, with each members liability limited to £10.

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