Chiltern Church
Report and Accounts Year ended 31 December 2023
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
CHILTERN CHURCH
LEGAL AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2023
ADDRESS FOR CORRESPONDENCE Mrs Susan Legg Chiltern Church 83 Chiltern Road Sutton SM2 5QY GOVERNING DOCUMENT Trust deed dated 1963 Trust deed dated 1958 for church buildings only CHARITY REGISTRATION NUMBER 1116502 TRUSTEES RESPONSIBLE FOR Rachel Berende MANAGING THE CHARITY Mark Constantinou (resigned January 2023) Susan Legg David Lunn John Morton Adebimpe Oki David Roberts CUSTODIAN TRUSTEES The Church Growth Trust BANKERS CAF Bank Ltd HSBC UK National Westminster Bank Plc Nationwide Building Society INDEPENDENT EXAMINER Jaimée Young Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
INDEX
Page 1 Legal and Administrative Details Pages 2-4 Trustees' Report Page 5 Independent Examiner's Report Page 6 Receipts and Payments Account Page 7 Statement of Assets & Liabilities Pages 8-9 Notes to the Accounts
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Chiltern Church – Charity 1116502
Report of the Trustees for the year ended 31 December 2023
The Trustees are pleased to submit their Report and Accounts for the year. The accounts incorporate the accounts of Chiltern Church Property Trust.
Objects of the Church
The objects of the Church comprise –
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The advancement of the Protestant and evangelical tenets of the Christian Faith, either in the United Kingdom or overseas.
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The encouragement of missionary activity designed for the spread of the Christian faith.
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The furtherance of religious education.
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The relief of the poor and needy.
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The help and comfort of the sick and aged.
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The administration of any property or estate for any religious or other charitable object, institution or work.
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The general advancement of any religious or other charitable object, not inconsistent with the above.
Governance, staff and volunteers
The Trustees are responsible for ensuring that the property and activities of Chiltern Church (the Church) are applied to the objects of the Church and this includes managing the Church building and any property owned by the Church. They are legally responsible for all activities, employees and funds used in the Church and its associated activities.
The Trust Deeds do not specify the arrangements for the running and day to day management of the Church. The Church Constitution therefore complements the Trusts by setting out guidance and procedures for the internal governance of the Church, subject always to the requirements of the Trust Deeds. Under the Constitution, the Leadership Team, chaired by the Pastor, lead the day to day organisation and operation of the Church and plan and supervise the activities of the Church under delegated authority from the Trustees. A series of policies are also in place to provide for the effective operation and safety of the Church (e.g. Health and Safety, Safeguarding) and these are reviewed regularly and any changes are agreed by the Leadership Team and/or Trustees.
The staff, Trustees, Leadership Team, and church members comprise people of a wide variety of backgrounds, ethnicity and ages, whose lives have been changed by the Christian faith. The Church is blessed to have two full-time members of staff, namely the Pastor and the Youth & Worship Pastor, and three part-time staff (Children & Families Leader, Children & Families Worker and Church Administrator). A large proportion of the membership of the church are also involved as volunteers in leading and helping to run the activities of the Church.
Review of Activities
The vision of the Church is for our fellowship to be energized by the love and power of God, to grow as followers of Jesus and share His message of hope with our community, city and world. These three elements are summarized as Loved, Equipped and Involved. The inspiration of the Bible, the essential role of the Holy Spirit and Jesus’ message of love and redemption are at the core of the ministry of the church. Further details of our vision and core values and all the activities of the church are available on the church’s website at www.chilternchurch.org.uk.
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The activities of the church have continued to grow and develop following the end of the era of Covid restrictions. Attendance at Sunday morning services has grown steadily. Cameo, our seniors’ group, and Tots & Toys, our parent and toddlers’ group, are very well attended. The children’s ministry held a very successful holiday club in the summer holidays. Our youth ministry (Pursuit) continues to be very popular. Attendance on Friday club evenings reaches around 30 young people on average, which is ahead of pre-pandemic levels.
In recent years, the membership of the Church has remained roughly stable at around 90 members with a significant number of persons coming into membership offset by members passing away or leaving the church area. The Church also has around a further 50 adherents that attend Sunday services regularly but are not yet part of the membership. Following last year’s reorganisation and relaunch of our small group ministry, this has bedded down successfully in the current year. We currently have seven Connect Groups meeting regularly that serve over 80 people.
The church premises are used as a community facility for various local initiatives and this usage has grown substantially following the end of Covid restrictions. We have continued to maintain a high standard of maintenance and facilities across all the Church’s property.
During the year, we started the process of transitioning the church to becoming a charitable incorporated organisation (CIO), subject to church approval, with a view to this taking full effect during 2025.
Financial Review
Details of the Church’s finances are set out in the accompanying accounts. Offerings and donations are the primary source of the Church’s income and these grew by over 10% compared with the previous year. This is especially encouraging given the constrained economic environment and follows a similar rate of growth in 2022. The growth in donations was underpinned by the regular giving of our members and friends by standing order and bank transfer. Income from use of church premises also showed a significant increase. Increases in income were partially offset by cost increases due to inflation and increased activity. During the year we substantially upgraded the internal lighting of the church. We also invested significant sums in replacing and upgrading audio-visual and IT equipment.
The Church sets aside 10% of its undesignated donation income and associated gift aid to assist missionaries, charitable organizations and relief projects in the UK and overseas. The amount paid out from this allocation in 2023 exceeded £16k. The Church’s Christmas Appeal contributed £4K from this allocation split between Sutton Community Work’s community food shop, Horizon Church, Tearfund’s Middle East Appeal and ACT’s work in Tanzania. Members and friends also gave substantial funds to these causes.
In 2020, the Church assisted the pastor and his wife to purchase a home on a shared ownership basis. The Church has an interest of approximately 40% in this property. It financed its stake with an existing fund designated for this purpose and funds raised from a mortgage on the flat owned by the church.
Reserves
The Church has a minimum reserves policy which is reviewed annually by the Trustees. The minimum reserve is not invested in fixed assets or designated for specific purposes. The Trustees consider that the church should continue to maintain the minimum level of general reserves at a level broadly equivalent to three months of expenditure on salaries and other committed costs. In accordance with this policy, the Trustees agreed in October to increase minimum general reserves from £30,000 to £35,000 with effect from the end of 2023 in view of the increased level of the church’s salary costs and committed costs given significant inflation in recent years. This minimum level of reserves provides
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flexibility to cover short term risks and uncertainties, such as fluctuations in donations and other shortterm timing differences and meet contractual obligations.
At the year end, the charity held unrestricted cash of £55,265. The church currently has significant undesignated reserves above the minimum level of reserves, and these are available for investment in the ministry and facilities of the church. In addition, the church has a designated reserve which enables the church to invest in accommodation for the pastor in the church area. This reserve was invested in the purchase of a house for the pastor and his family on a shared ownership basis in 2020 as described in the Financial Review section above.
Investment Policy
The policy for investing liquid funds is as follows: -
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Funds in the general reserves representing the minimum amount seen as being required by the Trustees, are held in current accounts or interest-bearing deposits with up to a three months’ notice period.
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Funds in excess of the minimum required level of general reserves are held in current accounts or interest-bearing deposits with no restrictions on notice period.
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In either case, deposits are placed with UK banks, building societies or other UK institutions of good standing (e.g. the Charities Aid Foundation) and are covered by the Financial Services Compensation Scheme.
Risk Control
The Trustees review, on an annual basis, the significant risks to which the church may be exposed and the measures in place to contain such risks. The Leadership Team and activity leaders are also involved in risk assessment and mitigation.
Provision of Public Benefit
The Leadership Team and the Trustees acknowledge the guidance of the Charity Commission in respect of Public Benefit and Religion and have paid due regard to it. The wide ranging and varied activities of the Church supply much appreciated benefit and support both to those in the church, the community and to various projects and individuals around the world. These benefits have helped to meet spiritual, physical and educational needs and supported and helped communities irrespective of background and status. As noted in the Financial Review, the Church sets aside 10% of its undesignated donation income and associated gift aid for funding missionaries, charitable organizations and relief projects in the UK and overseas.
Trustee Responsibilities
Charity law requires us as Trustees to prepare financial statements for each accounting year which record the receipts and payments of the Church for the year. We are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the Church and enable us to ensure that the financial statements comply with the Charities Act 2011. We also have responsibility to safeguard the assets of the Church and to take reasonable steps to prevent fraud or any other irregularities.
Approval This report was approved by the Trustees and signed on their behalf by:
Susan Legg Susan Legg (May 28, 2024 16:29 GMT+1)___ Susan Legg
May 28, 2024 Date: ____
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INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF
CHILTERN CHURCH
I report to the trustees on my examination of the accounts of Chiltern Church ('the charity') for the year ended 31 December 2023 on pages 6 to 9 following.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in accordance with section 130 of the 2011 Act; or
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the accounts do not accord with the accounting records.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Jaimée Young
Jaimée Young (May 28, 2024 17:09 GMT+1)
Jaimée Young
Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
Date: May 28, 2024
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CHILTERN CHURCH
RECEIPTS AND PAYMENTS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted | Funds | Restricted | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| General | Designated | Property | Other | Total | Total | |||||||
| Funds | Funds | Trust | Restricted | 2023 | 2022 | |||||||
| Notes | £ | £ | £ | £ | £ | £ | ||||||
| Income receipts | ||||||||||||
| Donations | 137,827 | - | - | 11,533 | 149,360 | 139,992 | ||||||
| Gift aid receipts | 40,180 | - | - | - | 40,180 | 27,251 | ||||||
| Legacies | 2,000 | - | - | - | 2,000 | - | ||||||
| Income from charitable activities | 11,272 | 577 | - | 1,220 | 13,069 | 11,365 | ||||||
| Income from letting of facilities | - | - | 4,588 | - | 4,588 | 3,245 | ||||||
| Events including church weekend | 6,799 | - | - | 438 | 7,237 | 184 | ||||||
| Investment income | 1,072 | - | - | - | 1,072 | 145 | ||||||
| Other | 1,502 | - | - | - | 1,502 | 831 | ||||||
| Total receipts | 200,652 | 577 | 4,588 | 13,191 | 219,008 | 183,013 | ||||||
| Payments | ||||||||||||
| Payments in relation to activities undertaken directly |
charitable | 2 | 162,048 | 592 | 12,759 | 11,915 | 187,315 | 168,308 | ||||
| Grants paid in relation to activities undertaken by others |
charitable | 3 | 16,425 | - | - | 5,913 | 22,338 | 17,537 | ||||
| Total payments | 178,473 | 592 | 12,759 | 17,828 | 209,653 | 185,846 | ||||||
| Net of receipts / (payments) transfers |
before | 22,179 | (15) | (8,171) | (4,638) | 9,355 | (2,833) | |||||
| Transfers between funds | 5 | (10,614) | 410 | 8,171 | 2,033 | - | - | |||||
| Net movement in funds | 11,565 | 395 | - | (2,604) | 9,355 | (2,833) | ||||||
| Cash funds as at last year | end | 28,826 | 14,480 | - | 3,824 | 47,130 | 49,963 | |||||
| Cash funds at this year end | A | 40,390 | 14,875 | - | 1,220 | 56,485 | 47,130 |
The notes on pages 8-9 form part of these accounts.
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CHILTERN CHURCH
STATEMENT OF ASSETS AND LIABILITIES
AS AT THE YEAR ENDED 31 DECEMBER 2023
| A Cash funds Bank operating accounts Bank deposits Petty cash and prepaid card B Other monetary assets Gift aid due to charity Other debtors C Liabilities Falling due within one year: Mortgage Accounts preparation and independent examination Falling due after one year: Mortgage Total |
Unrestricte | Designated funds £ - 14,875 - 14,875 - - - - - - - - - d Funds |
Property Trust £ - - - - - - - - - - - - - Restri |
Restri | Other Restricted £ - 1,220 - 1,220 - - - - - - - - - cted |
Total 2023 £ 3,165 52,640 680 56,486 2,869 2,890 5,760 13,451 1,860 15,311 91,368 91,368 106,679 |
Total 2022 £ |
|
|---|---|---|---|---|---|---|---|---|
| 5,815 40,663 652 |
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| 47,130 | ||||||||
| 7,502 2,696 |
||||||||
| 10,198 | ||||||||
| 11,559 1,440 |
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| 12,999 99,677 |
||||||||
| 99,677 | ||||||||
| 112,676 |
The mortgage, secured on a freehold property owned by the church, is repayable over 15 years at a variable rate of interest.
| D Assets retained for charity's own use Freehold and leasehold properties General Contents and equipment General |
Value 2023 £ 149,345 149,345 |
Value 2022 £ |
|---|---|---|
| 132,516 | ||
| 132,516 |
The trustees have used insurance values as the trustees are unable to reliably estimate current values; insurance values may differ materially from current values.
Current values have not been quoted because reliable valuations are not available (disclosure is not mandatory).
E Investment assets
Investment property (interest in property owned by Mission Housing).
| Value 2023 £ 237,949 237,949 |
Value 2022 £ |
|---|---|
| 250,473 | |
| 250,473 |
The accounts were approved by the trustees and signed on their behalf
Susan Legg by _____ Susan Legg (May 28, 2024 16:29 GMT+1) date ____ Susan Legg
----- Start of picture text -----
May 28, 2024
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The notes on pages 8-9 form part of these accounts.
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CHILTERN CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
The accounts have been prepared on a receipts and payments basis and comprise a statement that shows the charity's receipts and payments, a statement that summarises the charity's assets and liabilities and related notes. The accountancy profession have determined that only accounts prepared in accordance with applicable accounting standards present a 'true and fair' view and, as these receipts and payments accounts have not (and cannot) be prepared in accordance with accounting standards, these accounts do not present (and are not intended to present) a 'true and fair' view of the charity's financial activities and state of affairs.
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
| 2 Payments in relation to charitable activities undertaken directly Ministry employment costs Building refurbishment costs Events including church weekend Youth and children (including salary) Note 4 Equipment Church property: Insurance Utilities Repairs & maintenance Devonshire House: Service charge Other expenses New property purchase: Property costs (purchase, refurbishment etc.) Mortgage Rent Administration and support costs Cleaning Kitchen and cleaning supplies Governance and professional fees Subscriptions Sunday Services and other ministries Telephone Other 3 Grants and gifts paid to others Organisations: Sutton Schools Work Sutton Community Works African Child Trust Tearfund Hope Together Horizon Church Organisations < £1,000 Individuals |
Unrestrict | Designated funds £ - - - - - - - - - - - - - - - - - - 592 - - 592 - - - - - - - - - ed Funds |
Property Trust £ - - - - - 1,749 8,510 2,500 - - - - - - - - - - - - - 12,759 - - - - - - - - - Rest |
Rest | Other Restricted £ - 6,770 438 - 4,320 - - 88 - - - - - - - - 300 - - - - 11,915 - 1,411 1,593 1,036 182 1,411 282 - 5,913 ricted |
Total 2023 £ 101,353 6,770 9,151 17,463 7,452 1,749 8,510 2,588 1,112 1,195 - 13,451 1,090 2,233 5,449 1,451 2,520 2,257 929 414 180 187,315 2,075 3,611 3,443 3,786 182 2,411 6,832 - 22,338 |
Total 2022 £ |
|
|---|---|---|---|---|---|---|---|---|
| 95,160 10,020 2,781 17,126 1,608 1,437 4,778 3,562 1,112 1,873 800 11,559 999 2,700 5,087 1,555 2,160 1,983 1,191 334 485 |
||||||||
| 168,308 | ||||||||
| 2,075 3,234 2,505 2,700 1,918 - 4,455 650 |
||||||||
| 17,537 |
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CHILTERN CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2023
4 Transactions with related parties
The spouse of trustee David Lunn, was paid a total of £5,152 [2022: £4,880] as church administrator and as a leader of the church's parent and toddler group. Mr Lunn does not participate in any trustee discussions concerning his wife's employment. This payment is permitted by the Charity Commission.
During the year, £1,800 [2022: £9,770] was paid to a company for roofing services. The company is connected by family to a trustee who was not part of the decision-making regarding this appointment.
| 5 Movement of funds General funds Designated funds Property fund Mission fund CAMEO Tots & Toys Restricted funds Property Trust Special Appeals PA project Lighting project Events (including church weekend) Pursuit Roof Other Total funds |
Opening balance £ 28,826 6,035 8,425 - 20 43,306 - - - 2,144 - - 1,593 88 3,824 47,130 |
Receipts £ 200,652 - - 577 - 201,229 4,588 5,913 4,320 1,000 438 1,220 - 300 17,779 219,008 |
Payments £ (178,473) - - (592) - (179,065) (12,759) (5,913) (4,320) (4,250) (438) - (2,520) (388) (30,588) (209,653) |
Transfers £ (10,614) - 347 83 (20) (10,205) 8,171 - - 1,106 - - 928 - 10,205 - |
Closing balance £ |
|---|---|---|---|---|---|
| 40,390 6,035 8,772 68 - |
|||||
| 55,265 | |||||
| - - - - - 1,220 - - |
|||||
| 1,220 | |||||
| 56,485 |
The designated Property fund represents monies set aside to assist pastors of the church secure appropriate accommodation in the church area.
The Chiltern Church Property Trust is the original Trust set up in 1958 and limited to the church buildings. In 1963 the trustees signed another trust deed to provide wider powers. The Charity Commission has recognised the second trust as the prime charity with the earlier 1958 trust set up as a linked charity.
The Special Appeals fund relates to donations given for the following charities: Sutton Community Works, Hope Together, African Child Trust and Horizon Church.
The Lighting project is for an upgrade to the lighting within the church including installation of LED lights
Events fund included funds raised for the church weekend.
The Pursuit Fund is for the work of Pursuit including the purchase of equipment and the cost of attending DTI. Funds donated for the Roof fund were put towards the cost of essential repairs to the church roof.
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