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2020-12-31-accounts

Company Registration No. 05899708 Charity Registration No. 1117985

Citygate Church

Report and Financial Statements

31 December 2020

Citygate Church

Contents

Page
Trustees and Trust Information 2
Report of the Trustees 3 - 15
Independent Examiners’ Report 16
Consolidated Statement of Financial Activities 17
Balance Sheet 18 - 19
Cash flow statement 20
Accounting Policies 21 - 22
Notes to the Accounts 23 - 35

Page 1

Citygate Church

Trustees and Trust Information Year ended 31 December 2020

Trustees Mr J S Salway
Mr S D Theunissen
Mr R J White
Mr J D Cornish
Mr J Morton (retired 13 November 2020)
Mr N Beal
Secretary Mr S D Theunissen
Auditors Saffery Champness LLP
Midland House
2 Poole Road
Bournemouth
Dorset
BH2 5QY
Solicitors Lester Aldridge
Russell House
Oxford Road
Bournemouth
Dorset
BH8 8EX
Bankers HSBC Bank Plc
59 Old Christchurch Road
Bournemouth
Dorset
BH1 1EA
Company Registration Number 05899708
Charity Number 1117985
Principal Office 138A Holdenhurst Road
Bournemouth
Dorset
BH8 8AS
Elders Mr R White
Mr M Taylor (retired 31 January 2020)
Mr T Francis
Mr S Theunissen

Page 2

Citygate Church

Report of the Trustees Year ended 31 December 2020

The trustees, who are also directors for the purposes of company law, have pleasure in presenting their Report and Financial Statements of the Charity for the year ended 31 December 2020.

The trustees named on page 2 served throughout the year.

Objectives and Activities

Principal Aims & Objectives

The main objectives of Citygate Church are to advance the Christian faith, to proclaim and further the gospel of God the Father, the Son and the Holy Spirit and to preach and teach the Christian faith.

To relieve sickness, poverty and distress to persons in need by virtue of age or social or economic circumstances.

To advance the education whether of children or of adults.

To further such other charitable purposes as the trustees from time to time in their absolute discretion determine.

Principal Activities

In order to achieve its objectives, Citygate Church works through the following core activities:

  1. Sunday meetings – Citygate Church meets on Sunday mornings for worship and preaching of the gospel message.

2.Teaching and Training

3. Youth and children’s work, students to twenties

Page 3

Citygate Church

Report of the Trustees Year ended 31 December 2020

4. Mission Work

Page 4

Citygate Church

Report of the Trustees Year ended 31 December 2020

Achievements and performance

Overview

In 2020 Russell White, Lead Elder of Citygate Church, with the support of the leadership team and staff, brought a fresh focus for the year on blessing our community; becoming those who make a difference wherever we find ourselves because of our faith. Little did we know that a global pandemic was about to change the landscape of society.

When the pandemic hit, we quickly turned our building into a Foodbank distribution centre with the hope of adding more relief agencies in order to bless our community where they needed it most. Our Foodbank has provided emergency food and support to over 3300 people by March 2021. We are now looking to set up a Community Hub to be open 6 days a week providing relief, restoration and reform to those in need.

We also moved all of our church meetings online and started streaming our Sundays on YouTube and Facebook as well as opened up prayer meetings on Zoom three times per week. We started a Kids channel for supporting families and our Youth and Student ministries went on Zoom. Our life groups started meeting online and very quickly started to look out for the vulnerable and those who were shielding.

We were able to set up a Covid Fund to support those who were not able to access government support and we also set up a Community Hub fund to set up our onsite provision.

We had started to support a local church in Southbourne called Southbourne Evangelical Church in late 2019, by providing teaching and leadership when needed. John and Pauline Hughes who were leading the church and were wanting to retire, asked Citygate if we could partner more sustainably for the future of the church.

Throughout 2020 we have been partnering with SEC on forming a way forward for the congregation in Southbourne, with the view of adopting the church into the Citygate Church charity. Through the pandemic a lot of our progress was halted, nevertheless in March 2021 Southbourne Evangelical Church were officially adopted in to Citygate Church and have become a site of Citygate.

Our venue income at the Citygate centre decreased significantly due to the pandemic, nevertheless we were able to reduce spending significantly with help from the government’s furlough scheme as well as removing usual activity from our budget.

Page 5

Citygate Church

Report of the Trustees Year ended 31 December 2020

At the end of 2020 we saw 19 new members added, 2 people baptised, 20 people complete our Alpha courses, nearly 310 people in life groups and over 81 people wanting to know more about Citygate Church or get involved. Although numerical growth is important, we are more concerned with personal lives being changed by the gospel and we are therefore thrilled with the many testimonies of people who have been affected in this way throughout the year.

Review of the year’s activities

Each of the areas of activities of Citygate Church along with the development of the Citygate Centre are outlined below with significant achievements for 2020 noted.

1. Sunday meetings

One of Citygate Church’s key activities are our Sunday meetings where our focus is to worship and encounter God, preach from the Bible and offer prayer for those in need or those wanting to grow in their faith. It is also an opportunity to welcome new people from all walks of life and help each person to find their place in Citygate Church. When the pandemic hit in March 2020, we moved our Sunday meetings online as well as all the ways to connect with our existing congregation and guests. We saw high numbers of guests at our special Sunday meetings including our Easter Sunday and Christmas celebrations as well as our Cultural Diversity Celebration.

Throughout 2020, we worked hard to help people connect with us online and integrate those who were new to Citygate Church, helping them to find their place. In September we were able to reopen our building for onsite meetings. This required a lot of resources and expertise to enable a safe environment under Covid guidelines, including social distancing measures, sanitising stations, online sign ups and seating plans.

In 2020 we continued to prioritise helping people to commit to life groups in which they can find friendship on a deeper level than is possible at our larger Sunday meetings.

2. Teaching and training

Our Alpha, Beta and Bible courses were well attended in the year with 20 people completing all 7 sessions of our Alpha course. We also had 19 new members come through our Rooted course and are getting established in building community and in mission.

3. Youth and children’s work, students and twenties

  1. Our children and youth work has continued to develop in 2020 by moving online to our very own YouTube channel presented by our Children’s & Families Worker Hannah Agus and Andy & George Oates via zoom for our Youth work. Students & Revive also continued to meet online via zoom and have continued to grow during the pandemic.

5. Mission Work

Worldwide

The projects in Tamil Nadu in India are continuing to serve the local community, with two churches now established, a school serving over 600 pupils, as well as an agricultural initiative. There is also a children’s home to care for orphans and vulnerable children.

Page 6

Citygate Church

Report of the Trustees Year ended 31 December 2020

We continued to support Dave and Karen Priest and the team in Beirut as they look to settle as a family, learn Arabic and care for the community through the gospel.

Our support to Commission Apostolic Trust, both in time and monetary resources, is helping to support churches being started, leaders being trained and equipped, and communities being transformed by the Christian message both nationally and internationally. We also provide free office space to Commission throughout the year.

We continued to offer opportunities for overseas mission through our Bursary Fund. This fund is available to church members who choose to join a volunteer team for mission trips overseas. Citygate Church looks to provide a contribution towards mission costs.

Local

Our established local ministries and projects such as Little Acorns continue to support and serve the local community. Our community ministries also serve different spheres of our society and they have continued to gather momentum in 2020 –

Page 7

Citygate Church

Report of the Trustees Year ended 31 December 2020

These groups are making a tangible difference in people’s lives and we are seeing a number of those attending

The Citygate Centre

The Citygate Centre during the pandemic opened its doors as a Community Hub, partnering with Bournemouth Foodbank providing emergency food and support to local people in crisis. As rules allowed ministries were able to utilise the building and our congregation were able to return subject to Covid guidelines.

Citygate Events Ltd, Citygate Church’s trading arm, having started trading in 2014, had to close doors to clients during the lockdowns in 2020 therefore income dramatically decreased but when allowed long term clients did return to the centre. We have managed to keep good relationships with existing clients and look forward to welcoming them back to the venue, we are also looking to diversify our range of clients for hiring the venue as part of our Community Hub, we want to build partnerships with local organisations who can hire a desk within our building to meet and support their local clients.

Citygate Events Ltd had turnover of £32k (2019: £91k) for the year. We took the decision to continue to gift Commission the use of some office space. This income has allowed us to significantly subsidise the centre running costs and we look to grow our turnover in subsequent years.

Communications and resources

In 2020 we invested in a new website. Natalie King, our communications manager designed the website during lockdown and we prioritised ways for people to engage with our Sunday talks and online events. The website is still a work in progress but it is nevertheless serving our vision and is often a person’s first interaction with Citygate church.

In 2020 we invested significantly in our social media activity. Natalie King has formulated and implemented a strategy for engaging our Citygate family and guests on Instagram and Facebook and we are seeing high levels of engagement. We also send regular updates on Citygate activities through our weekly e-bulletin.

Incoming resources

Total incoming resources for the year were £657k (2019: £650k). This income is made up of donations, event ticket income, rental income and gifted profits from Citygate Events Ltd.

Page 8

Citygate Church

Report of the Trustees Year ended 31 December 2020

Undesignated donations are mainly received from Citygate Church members and those who would call Citygate their church. These gifts amounted to £477k (2019: £440k). Gifted profits from Citygate Events Ltd amounted to £27k (2019: £77k).

The trustees set out some funding objectives for the gift week in 2020. Funds raised during the gift week were to predominantly be used to invest in our online presence and develop our Southbourne site as well as continuing to support local and global mission. From gift weeks we raised donations of £95k (2019: £94k).

We received restricted funds for the Community Hub, Covid-19 Assistance fund, Christmas Hamper Appeal, The Ark, Youth, Support & Outreach and Missional work in India.

Future objectives

2020 was a year that changed the global landscape on so many levels and it will also reshape the future. As a church our desire is to meet the needs of our community, both now and in the future as we start to see the psychological; emotional; spiritual and financial ramifications of this pandemic on society.

Our vision will continue to be ‘Seeing lives transformed, every day, across the bay’ but our focus for 2021 is to ‘Restore the broken’. God has called us to demonstrate the love of Jesus in the everyday. In 2021 we will look to build a Community Hub and partner with agencies that bring relief to those in need. We will look to partner and set up social action ministries that bring restoration and be a voice for social reform.

Citygate Church is now a multisite church and we believe that more sites will be added over the years in order to see lives transformed across the bay. We will continue to welcome visitors from all walks of life whether through our community outreach or during our Sunday services and integrate them in to Citygate church, helping them to find their place to belong.

We have invested significantly in resourcing online church as we believe it is not just a means of getting through lockdown, but rather an opportunity for people to hear the good news of Jesus and take a step towards becoming part of our church community. We will therefore continue to invest staff time and resources in building this area of church life.

Our Alpha, Beta and Bible courses will continue to be key activities in helping people to explore Christianity and grow in their faith.

Finally, continuing to build a strong administrative base is key in order to facilitate growth in all the above pursuits and demonstrate sustainable good practice as a UK charity.

Post reporting date events

The Coronavirus (Covid 19) pandemic has had a significant impact on the activities of Citygate Church. We were able to meet briefly in September/October 2020 before the second lockdown. From January to March 2021 we moved back to being fully online using streaming technology in order to serve our church and wider community. In April 2021 we moved to Covid restricted onsite meetings across two sites and three congregations, as well as streaming online.

Page 9

Citygate Church

Report of the Trustees Year ended 31 December 2020

The Trustees have continued to meet regularly to review the charity’s cash position and plans for 2021 and beyond, assessing decisions that have already been made and reassessing in light of new information. To assist with the charity’s cash position, 4 members of staff were placed on furlough and have continued to utilise the scheme until April 2021, to take advantage of the government’s Job Retention Scheme.

On 27[th] January 2021, Citygate Church officially adopted Southbourne Evangelical Church. Southbourne Evangelical Church (charity no. 1161706) and Citygate Church completed a Deed of Asset transfer whereby all assets of Southbourne Evangelical Church were transferred to Citygate Church.

Grant making policy

Grants are made to organisations or individuals that we have long standing relationship with.

We continue to support Steve and Beth Deveraj, members of Citygate Church who moved to Tamil Nadu in India to start a school and church. We have had a long-standing relationship with the family and look to support them coming back to England every 3 or 4 years for respite. We are in communication a number of times during the year, receiving reports on the development of both projects.

We have continued to financially support Dave and Karen Priest in Beirut as part of a mission team reaching in to this area.

We have continued to support the PACE Trust, a Christian Charity which brings the practical Christian message to young people in local schools in Bournemouth. We have good relationships with both the board of trustees and the school’s workers.

We regularly give to Commission Apostolic Trust Ltd which is a network of churches who support each other and apostolically oversee Citygate Church. In 2017 we took the decision to offer the office space that Commission occupy in the Citygate Centre for free. The market value of the fully serviced space is approximately £30,000.

We have started to support a Christian ministry called Town Pastors which works to provide help and support on the streets on Friday and Saturday nights.

We support Faithworks, to enable the running of Sleepsafe, a project which helps house the homeless during the winter months.

We have started to support two additional charities in 2020: Teen Challenge, a charity who help people nationally suffering with addiction to help them become mentally sound, physically well, emotionally balance, socially adjusted and spiritually alive; and Safe Families who offer hope, belonging and support to children, families and care leavers; they do this primarily with and through local churches.

Reserves Policy

The trustees review the charity’s reserves regularly in the light of Charity Commission guidance. The trustees believe that the charity should hold free reserves of between three and six months of regular church giving income, as it is believed that this will provide sufficient funds to respond to any shortfalls in donations and event income, and would cover all costs in unforeseen circumstances.

Page 10

Citygate Church

Report of the Trustees Year ended 31 December 2020

The charity’s current reserves position is as follows:

Within the total funds there is £1,779,189 which could only be realised by selling the fixed assets held by the charity.

The total free reserves held by the charity at the year-end are £192,094 (2019: £265,900).

This amount is within the policy set by the trustees as three to six months of regular church income is between £110k and £220k.

Support, volunteers and other organisations

Citygate Church is only able to continue in the work it does because of the time and resources given by volunteers. The trustees express their thanks for the ongoing generosity of individuals in both donations and volunteer time.

Employees

The work of Citygate Church relies on the commitment and hard work of its valued staff. At the year-end Citygate Church directly employed 17 members of staff (both full-time and part-time)

The trustees wish to take this opportunity to thank all staff, past and present, for their service and commitment.

Remuneration policy

Trustees decide on salaries for all staff. The process for review involves using a Salary Matrix which was developed by one of the trustees which considers key responsibility areas for each role which are scored on a systematic basis and weighted depending on the level of responsibility and value that each category is to the organisation. Appraisal review feedback is also given to the trustees and used in determining where on the scale each employee is performing based on the matrix.

Salaries are reviewed at the end of each financial year and coincide with the production of budgets. These are reviewed and discussed by trustees and approved at the year end.

Page 11

Citygate Church

Report of the Trustees Year ended 31 December 2020

Public Benefit

One of the main objectives of a church is to engage in social action work for the benefit of the community it serves. This principle is strongly encouraged as a core belief of the Christian faith. The nature of this work varies enormously, but typically, churches will engage in a number of different projects - a recent survey of churches associated with ‘Commission’, found that each church was involved in an average of seven social action projects. The most common are:

Mothers and toddlers groups Marriage counselling /courses Community festivals/fun days Debt counselling Children’s clubs (not including Sunday school type activities) School assemblies / RE work Parenting help/courses Food distribution Caring for the Elderly (not exclusively for church members) Youth work

While these are the most common, there are many others which churches run, and also in conjunction with other churches in their local vicinity. These include street patrols, sex workers/ trafficking, pregnancy/post abortion help, working with the homeless and other community improvement initiatives (such as clean ups). Working with those in or recovering from addiction (e.g. drugs/alcohol) is also a common social action project among this family of churches.

Citygate Church is involved in most of the above activities and its work among those in recovery from addiction and abuse as well its support and reaching out to sex workers is benefiting the community it serves.

Our public meetings on Sundays provide an opportunity for teaching, worship, envisioning and sharing time together as a community of people. This is with the aim of individuals enjoying being together to develop a strong sense of community and also to envision church members to serve their own local community.

The trustees believe that the charity meets the public benefit requirements and have complied with the duty in Section 4 and 17 of the Charities Act 2011 and that we have given due regard to the guidance issued by the Charity Commission on delivery of public benefit, including the Supplementary Guidance.

Structure, Governance and Management

Governing document

Citygate Church is a charitable company, limited by guarantee, incorporated on 8 August 2006 and registered as a charity on 15 February 2007. The company’s Memorandum of Association established the objects and powers of the charitable company. The company is governed by its Articles of Association.

Page 12

Citygate Church

Report of the Trustees Year ended 31 December 2020

Recruitment and appointment of Trustees

Trustees are recruited and appointed by the members at the Annual General Meeting where they are deemed to possess the experience and skills required to perform the role of a director. The trustees may also appoint a director to serve until the next Annual General Meeting, at which time he or she would cease to hold office but would be eligible for election.

Induction and training of trustees

All trustees are considered to be highly experienced and skilled individuals. Training is provided where considered necessary.

Organisational structure

Overall, Citygate Church is led by Russell White and a team of elders. They are responsible to God for the leadership of the church. They will work to ensure that the vision of the church is fully implemented.

The elders named on page 2 served throughout the year.

The trustees carry out legal responsibilities and duties. The trustees (who are appointed by the elders) have a dual responsibility: -

They are the people responsible in law under the charity’s governing document for controlling the management and administration of the charity. They have a major responsibility to support the elders in their leadership of the church, which leadership is accountable to God for every aspect of church life including the oversight of the work of the Trustees.

The board of trustees consists of two executive trustees, two of whom are elders (Russell White and Sean Theunissen), and 4 non-executive trustees. The non-executive trustees bring experience and expertise in business, human resources, risk management, information governance, security and law.

The trustees have delegated the day to day responsibilities of the charity to key staff and executive trustees. These include Finance, Governance, HR and Risk systems and processes. The executive trustees will report to the trustees on a regular basis on these areas of responsibility. The Elders will set the vision and direction of the church and lead the church through teaching and training.

Related parties

The charity was born out of a movement of churches in the United Kingdom and across the world called Newfrontiers. Newfrontiers has now multiplied into a number of networks which work both individually and in partnership where there is mutual benefit. Guy Miller, an elder of Citygate Church until his resignation in March 2018, leads one of these networks, set up as a charity under the name Commission Apostolic Trust Limited. The charity was established on 14 November 2012 and runs the above activities under its charitable objectives.

Risk management

The trustees have overall responsibility for the charity’s internal control. Such a system can provide only reasonable and not absolute assurance against errors or fraud. There is a clear delegation of the trustees’ authority through the executive trustees and the elders to the rest of the charity.

Page 13

Citygate Church

Report of the Trustees Year ended 31 December 2020

The charity operates a planning and budgeting system with an annual budget approved by the board of trustees. A financial reporting system monitors the income and expenditure of the charity against the budget on a monthly basis.

A register of the risks faced by the charity is being developed, identifying the major strategic and operational risks faced and how they are being managed. The major risks identified are reputational risk and loss of key staff.

Citygate Church is developing a register of the key risks identified. Reputational risk is managed through a number of strategies including accountability of senior leaders and clear management of communications and public relations. Loss of key staff risks are mitigated to an extent through the performance appraisal process which encourages open communication and line management of staff, as well as a clear policy on reviewing salaries and other benefits.

The trustees are satisfied that systems are in place to monitor, manage, and mitigate the charities exposure to major risks. They consider that the development of the charity’s reserves and reviewing internal controls and risk will provide the charity with adequate risk assurance and sufficient resources in the event of adverse conditions. They also recognise that the nature of some of the charity’s work requires active acceptance and management of some risks when undertaking activities to achieve the objectives of the charity.

Trustees’ responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the 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 charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 14

Citygate Church

Independent Examiner’s Report to the Trustees of Citygate Church

I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 December 2020, which are set out on pages 17 to 35.

Respective responsibilities of trustees and examiner

As the charity’s trustees of the Company (and also its directors 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 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 report

My examination was carried out in accordance with the 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 you as 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

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the FCA, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  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.

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.

Nicholas Fernyhough FCA DChA For and on behalf of Saffery Champness LLP Date 21 July 2021 Chartered Accountants Midland House 2 Poole Road Bournemouth BH2 5QY

Page 16

Citygate Church

Consolidated Statement of Financial Activities (including Income and Expenditure account) For the year ended 31 December 2020

Unrestricted

funds
Notes
2020
£
Income
Donations
2
572,827
Other trading activities
3
32,270
Charitable activities
4
2,242
Investment income
-
Total income
607,339
Expenditure
Raising funds
5
5,686
Charitable activities
5
589,427
Total expenditure
595,113
Net income
12,226
Transfers
(1,588)
Net income after transfers
10,638
Reconciliation of funds:
Total funds brought forward
2,023,581
Total funds carried forward
2,034,219		 Restricted
funds
2020
£
49,565
-
-
-
49,565
251
29,419
29,670
19,895
1,588
21,483
2,425
23,908		 2020
£
622,392
32,270
2,242
-
656,904
5,937
618,846
624,783
32,121
-
32,121
2,026,006
2,058,127		 2019
£
549,482
91,252
9,519
1
650,254
14,771
634,014
648,785
1,469
-
1,469
2,024,537
2,026,006

All gains and losses are included above. The surplus for the year for Companies Act purposes was £32,121 2019: £1,469)

The notes and accounting policies on pages 21 to 35 form part of these accounts.

Page 17

Citygate Church

Balance Sheets at 31 December 2020

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: Amounts falling due
within one year
14
Net current assets
Total assets less current
liabilities
Funds
Restricted funds
15
Unrestricted funds
16
Total funds
17
Group
£
1,779,189
-
1,779,189
32,415
260,685
293,100
(14,162)
278,938
2,058,127
23,908
2,034,219
2,058,127		 2020
Charity
£
1,779,189
131
1,779,320
54,393
235,681
290,074
(11,136)
278,938
2,058,258
23,908
2,034,350
2,058,258
Group
£
1,816,817
-
1,816,817
39,006
197,234
236,240
(27,051)
209,189
2,026,006

2,425
2,023,581
2,026,006		 2019
Charity
£
1,816,817
131
1,816,948
103,559
121,926
225,485
(16,296)
209,189
2,026,137
2,425
2,023,712
2,026,137

Page 18

Citygate Church

Consolidated cash flow statement Year ended 31 December 2020

Notes
Cash flows from operating activities:
Net cash provided by operating activities
22
Cash flows from investing activities:
Dividends, interest and rents from
investments
Proceeds from the sale of property, plant
and equipment
Purchase of property, plant and equipment
Net cash used in investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period
23		 £
-
(40,171)		 2020
£
103,622

(40,171)
63,451
197,234
260,685		 £
1
(95,693)		 2019
£
75,322
(95,692)
(20,370)
217,604
197,234

Page 20

Citygate Church

Notes to the accounts Year ended 31 December 2020

1 Accounting policies

1.1 Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom accounting standards, the Charity Commission Statement of Recommended Practice - Accounting and Reporting by provisions of the Charities SORP (FRS 102) – Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (effective 1 January 2019) and the Companies Act 2006.

Citygate Church constitutes a public benefit entity as defined by FRS102.

The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.

1.2 Consolidation

These accounts present the results of the Charity and its wholly owned subsidiary Citygate Events Limited. The Charity has taken advantage of the exemption under section 408 of Companies Act 2006, not to publish its own Statement of Financial Activities. The Charity made a surplus for the financial year of £32,121 (2019: £1,469)

1.3 Investments

Investments are stated at historical cost less provision for any diminution in value.

1.4 Fund Accounting

The general unrestricted fund is available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

The designated funds represent unrestricted funds earmarked by the trustees for specific purposes.

The restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

1.5 Fixed Assets

All fixed assets are initially recorded at cost.

All assets costing more than £400 are capitalised.

1.6 Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Motor vehicles – 25% reducing balance

Other plant and machinery – 25% reducing balance

Depreciation is not provided on buildings that have an anticipated life of over 100 years. The charity’s policy is to maintain its property in an adequate state of repair. Accordingly, the trustees consider that the life of the property is so long and its residual value is at such a level that depreciation is immaterial.

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Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

1.6 Depreciation (continued)

Leasehold property improvements are to be depreciated over 10 or 25 years depending on the nature of the assets.

1.7 Pension costs

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the statement of financial activities.

1.8 Incoming Resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. Specific policies are applied to particular categories of income.

Voluntary income is received by way of grants and donations and is included in full in the statement of financial activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Investment income, being interest, is included when receivable.

Incoming resources from grants which are related to performance and specific deliverables are accounted for as the charity earns the rights to consideration by its performance.

1.9 Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Irrecoverable VAT is reported as part of the expenditure to which it relates.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the time spent.

Governance costs include those costs associated with meeting with constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management of the charity.

1.10 Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

1.11 Financial instruments

The group has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised initially in the accounts at transaction price, including any transaction costs. At the end of each accounting period, basic financial instruments are recognised at amortised cost.

Page 22

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

1.12 Critical estimate and judgements and key sources of estimation uncertainty

In the application of the Charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision effects both current and future periods.

2 Donations and legacies

Unrestricted Restricted
Total Unrestricted
funds
funds
funds
funds
2020
£
£
£
£
Donations
General gifts
476,527
49,565 526,092
439,831
Designated gifts
(Building Fund)
96,300
-
96,300
99,013
572,827
49,565 622,392
538,844

Other trading activities
Rental income
All income from other trading activities was unrestricted in both years.

Charitable Activities
Other events and activities		 Unrestricted Restricted
Total Unrestricted
funds
funds
funds
funds
2020
£
£
£
£
Donations
General gifts
476,527
49,565 526,092
439,831
Designated gifts
(Building Fund)
96,300
-
96,300
99,013
572,827
49,565 622,392
538,844

Other trading activities
Rental income
All income from other trading activities was unrestricted in both years.

Charitable Activities
Other events and activities		 Restricted
funds
£
10,638
-
10,638
2020
£

32,270
2020
£

2,242		 Total
funds
2019
£
450,469
99,013
549,482
2019
£
91,252
2019
£
9,519

3 Other trading activities

4 Charitable Activities

All income from charitable activities was unrestricted in both years.

Page 23

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

5 Analysis of total resources expended

Current year
Costs of activities for
generating funds
Fundraising expenses
Costs in respect of Citygate
Events Ltd
Charitable activities
Citygate Centre
Sunday meetings
Mission
Youth and children’s work
Training and teaching
Pastoral care
Total resources expended
Support staff costs		 Grants
£
-
-
-
-
-
57,307
-
-
-
57,307
57,307
 Staff
costs
£
-
-
-
71,877
26,343
27,396
46,732
22,129
29,623
224,100
224,100
136,246
360,346		 Other
direct
costs
£
302
5,635
5,937
132,744
4,805
16,266
6,242
6,624
2,879
169,560
175,497

 (note 6)
Support
costs
£
-
-
-
25,181
33,576
25,182
16,788
33,576
33,576
167,879
167,879
(136,246)
31,633		 Total
2020
£
302
5,635
5,937
229,802
64,724
126,151
69,762
62,329
66,078
618,846
624,783

Page 24

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

5 Analysis of total resources expended (continued)

Prior year
Costs of activities for
generating funds
Fundraising expenses
Costs in respect of Citygate
Events Ltd
Charitable activities
Citygate Centre
Sunday meetings
Mission
Youth and children’s work
Training and teaching
Pastoral care
Total resources expended
Support staff costs		 Grants
£
-
-
-
-
-
43,304
-
-
-
43,304
43,304
 Staff
costs
£
-
-
-
72,160
32,457
33,722
30,362
26,246
39,043
233,990
233,990
95,986
329,976		 Other
direct
costs
£
428
14,343
14,771
155,555
8,703
26,323
10,957
29,986
1,418
232,942
247,713

 (note 6)
Support
costs
£
-
-
-
18,567
24,755
18,567
12,378
24,756
24,755
123,778
123,778
(95,986)
27,792		 Total
2019
£
428
14,343
14,771
246,282
65,915
121,916
53,697
80,988
65,216
634,014
648,785

Page 25

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

6
Allocation of support costs
Current year
Property costs
Travel costs
Staff costs
Office costs
Information Technology
Teaching & training costs
Finance costs
Communications
Governance costs:
• Audit and accountancy
• Legal and professional
• Staff costs
Prior year
Property costs
Travel costs
Staff costs
Office costs
Information Technology
Teaching & training costs
Finance costs
Communications
Governance costs:
• Audit and accountancy
• Legal and professional
• Staff costs
Total
2020
£
2,294
1,515
116,588
9,349
9,313
553
442
4,746
4,854
359
17,866

167,879
Total
2019
£
2,576
2,076
79,269
5,090
6,294
1,100
561
4,881
4,854
360
16,717

123,778
Church
activities
£
459
303
23,317
1,870
1,863
111
88
949
971
72
3,573

33,576
Church
activities
£
516
415
15,854
1,018
1,259
220
112
976
971
72
3,343

24,756
Mission
activities
£
1,032
682
52,464
4,207
4,191
248
200
2,136
2,184
162
8,040
75,546
Mission
activities
£
1,159
935
35,671
2,290
2,832
494
253
2,197
2,184
162
7,523
55,700		 Teaching &
Training
£
459
303
23,317
1,870
1,863
111
88
949
971
72
3,573
33,576
Teaching &
Training
£
515
415
15,854
1,019
1,259
221
112
976
971
72
3,343
24,757		 Buildings
£
344
227
17,490
1,402
1,396
83
66
712
728
53
2,680
25,181
Buildings
£
386
311
11,890
763
944
165
84
732
728
54
2,508
18,565

Page 26

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

7 Grant expenditure

The charity made the following grants during the period:

Mission work in India
Mission work in Beirut
Mission work with the
poor
Commission Apostolic
Trust Limited -
Westpoint
Other local mission
work

Other mission work
worldwide
 Local
£
-
-
1,500
-
24,114
-

25,614		 Worldwide
£
5,640
15,000
-
11,053
-
-

31,693		 2020
£
5,640
15,000
1,500
11,053
24,114
-

57,307		 Local
£
-
-
1,200
-
10,750
-

11,950		 Worldwide
£
5,740
15,294
-
10,320
-
-

31,354		 2019
£
5,740
15,294
1,200
10,320
10,750
-
43,304

8 Net incoming resources for the year

This is stated after charging:

Staff pension contributions
Depreciation
Independent examiner’s fees		 2020
2019
£
£
9,756
5,948
77,798
76,660
5,758
4,200

Page 27

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

9 Staff costs

Total staff costs were as follows:

otal staff costs were as follows:
Wages and salaries
Social security costs
Pension costs		 2020
£
329,858
20,732
9,756

360,346		 2019
£
303,724
20,304
5,948
329,976

The average numbers of employees during the year, calculated on the basis of full-time equivalents, was as follows:

was as follows:
2020 2019
No
Average number of employees 13 12

No employee earned over £60,000 during the current or prior year.

During the year the key management personnel received remuneration, including national insurance contributions, of £130,432 (2019: £161,640)

10 Trustees’ remuneration

The Memorandum of Association authorises the payment of remuneration to trustees for services other than acting as a trustee. The following paragraphs outline the payments so made.

Mr S D Theunissen is a trustee of the Charity. During the year, Mr S D Theunissen received a salary of £35,000 (2019: £35,000) and pension contributions of £1,295 (2019: £869) were made on his behalf, for his role as finance director.

Mr R White is a trustee of the Charity. During the year, Mr R White received a salary of £43,272 (2019: £41,767) and pension contributions of £1,667 (2019: £1,072) were made on his behalf, for his role as Elder of the Church.

No other trustees received any remuneration during the current or previous year.

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the current or previous year, other than as disclosed in note 18.

No expenses were reimbursed to any trustee during the current or previous year, other than as disclosed in note 18.

Page 28

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

11 Tangible fixed assets - Group and Charity

Cost or valuation
At 1 January 2020
Additions
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net book value
31 December 2020
31 December 2019		 Land and
buildings
£
1,962,212
-
1,926,212
230,460
39,228
269,688
1,656,524
1,695,752		 Other plant
& machinery
£
344,066
40,171
384,237
223,001
38,570
261,571
122,666
121,065		 Total
£
2,270,278
40,171
2,310,448
453,461
77,798
531,259
1,779,189
1,816,817

Land and buildings represent costs incurred in respect of premises in long leasehold property totalling £1,926,212 (2019: £1,926,212). Depreciation charged in respect of the property amounted to £39,228 (2019: £39,225)

12 Investments

Movement in value:

Cost at 31 December 2020 and
31 December 2019
Historical cost at 31 December 2019		 2020
Group
Charity
£
£


-
131




-
131		 2019
Group
Charity
£
£
-
131

-
131

The charity owns 100% of the issued share capital of Citygate Events Limited, a company registered in England and Wales (07734479).

The subsidiary undertaking, Citygate Events Limited lets and operates the conference and exhibition centres of the Citygate Centre.

Page 29

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

12 Investments (continued)

A summary of the subsidiary undertaking results for the year is given below:

Gross income
Gross expenditure (excluding gift aided profits to charity)
Net surplus before donating profits to charity		 2020
£
32,270
(5,634)
26,636		 2019
£
91,252
(14,343)
76,909

At the balance sheet date the aggregate share capital and reserves of the subsidiary undertaking stood at £1 (2019: £1)

13 Debtors

Trade debtors
Amounts owed by group undertakings
Prepayments
VAT recoverable
Gift aid debtor
Other debtors
Creditors
Amounts due within one year:
Trade creditors
Deferred income
VAT payable
PAYE and social security
Amounts due from group undertakings
Accruals		 2020
Group
Charity
£
£
6,662
580
-
28,060
15,939
15,939
583
583
5,849
5,849
3,382
3,382
32,415
54,393
2020
Group
Charity
£
£

10,778
10,728
-
-
-
-
23
23
385
385
2,976
-
14,162
11,136		 2019
Group
Charity
£
£
20,802
3,953
-
81,776
12,208
12,208
374
-
5,622
5,622
-
-
39,006
103,559
2019
Group
Charity
£
£
14,356
14,266
11,334
-
-
669
-
-
-
-
1,361
1,361
27,051
16,296		 2019
Group
Charity
£
£
20,802
3,953
-
81,776
12,208
12,208
374
-
5,622
5,622
-
-
39,006
103,559
2019
Group
Charity
£
£
14,356
14,266
11,334
-
-
669
-
-
-
-
1,361
1,361
27,051
16,296
16,296

14 Creditors

Page 30

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

15 Restricted income funds

Group and Charity

Current year
Oasis refuge
Thomson
The Ark
Community Hub
Youth
D Goldsworthy – The
Ark
Covid-19
Priests donation
Christmas Hamper
Appeal
Sleepsafe
Westpoint restricted
Support & Outreach
Total
Prior year
Oasis refuge
The Ark
India
D Goldsworthy – The
Ark
Christmas Hamper
Appeal
Sleepsafe
Westpoint restricted
Total		 Balance at
1 January
2020
£
38
-
43
-
-
-
-
-
1,653
571
120
-
2,425
Balance at
1 January
2019
£
38
41
3,317
-
-
120
3,516		 Incoming
resources
£
-
10,650
4,500
5,382
895
-
11,849
50
9,989
-
-
6,250
49,565
Incoming
resources
£
-
3,512
500
-
5,526
1,000
100
10,638		 Outgoing
resources
£
-
10,650
877
1,931
-
397
5,726
50
8,988
47
-
1,004
29,670
Outgoing
resources
£
-
3,510
500
3,317
3,873
429
100
11,729		 Balance at
31 December
Transfers
2020
£
£
-
38
-
-
-
3,666
-
3,451
-
895
1,588
1,191
-
6,123
-
-
2,654
-
524
-
120
-
5,246
1,588
23,908
Balance at
31 December
Transfers
2019
£
£
-
38
-
43
-
-
-
-
-
1,653
-
571
-
120
-
2,425		 Balance at
31 December
Transfers
2020
£
£
-
38
-
-
-
3,666
-
3,451
-
895
1,588
1,191
-
6,123
-
-
2,654
-
524
-
120
-
5,246
1,588
23,908
Balance at
31 December
Transfers
2019
£
£
-
38
-
43
-
-
-
-
-
1,653
-
571
-
120
-
2,425
2,425

Restricted funds are made up as follows: -

Oasis Refuge – Donation received specifically for our work with the Women’s Refuge.

Page 31

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

15 Restricted income funds (continued)

Thomson – A donation to support the Deverajs missionary work in India.

The Ark – A donation given by the ASDA Foundations for Citygate Church’s work among the poor and vulnerable. A large proportion of the activities relate to work among the homeless.

Community Hub – A fund to support Citygate Community Hub which is a partnership of local agencies, charities and churches in Bournemouth supporting people with social, financial and health issues. It is a secure drop-in providing emergency food in partnership with Bournemouth Foodbank and support to local people in crisis.

Youth – A donation to be used for our Youth ministry.

D Goldsworthy – The Ark – A donation to support our work with the poor and vulnerable including the homeless.

Covid-19 – A fund set up to support those affected by Coronavirus who are not able to access government support.

Priests donation – A donation to support Dave & Karen Priests work of bringing the gospel message to Beirut.

Christmas Hamper Appeal – A project set up in partnership with Bournemouth Foodbank and other local agencies, to provide food hampers to families in crisis at Christmas.

Sleepsafe – A project set up in partnership with Faithworks Wessex and other local churches to provide shelter at the Citygate Centre for the homeless during the coldest months of the year.

Westpoint restricted – Donations received specifically to fund individuals Westpoint Event costs.

Support & Outreach – A donation to support those in need of our outreach work.

Page 32

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2019

16 Unrestricted income funds

Group
Current year
Designated fund
General funds
Charity
Current year
Designated fund
General funds		 Balance at
1 January
2020
£
61,929
1,961,652
2,023,581
Balance at
1 January
2020
£
61,929
1,961,783
2,023,712		 Incoming
resources
£
96,300
511,039
607,339
Incoming
resources
£
96,300
505,404
601,704		 Outgoing

Resources
£
95,162
499,951
595,113
Outgoing

Resources
£
95,162
494,316
589,478		 Losses on
Balance at
revaluation
31 December
/Transfers
2020
£
£
-
63,067
(1,588)
1,971,152
(1,588)
2,034,219
Losses on
Balance at
revaluation
31 December
/Transfers
2020
£
£
-
63,067
(1,588)
1,971,283
(1,588)
2,034,350		 Losses on
Balance at
revaluation
31 December
/Transfers
2020
£
£
-
63,067
(1,588)
1,971,152
(1,588)
2,034,219
Losses on
Balance at
revaluation
31 December
/Transfers
2020
£
£
-
63,067
(1,588)
1,971,283
(1,588)
2,034,350
2,034,350

The designated fund is for the amount that the trustees deem necessary to be set aside for possible future emergency building work on Citygate Centre.

Group

Prior year
Designated fund
General funds
arity
Prior year
Designated fund
General funds		 Balance at
1 January
2019
£
263,999
1,757,022
2,021,021
Balance at
1 January
2019
£
263,999
1,757,153
2,021,152		 Incoming
resources
£
99,013
540,603
639,616
Incoming
resources
£
99,013
526,260
625,273		 Outgoing

Resources
£
101,083
535,973
637,056
Outgoing

Resources
£
101,083
521,630
622,713		 Losses on
Balance at
revaluation
31 December
/Transfers
2019
£
£
(200,000)
61,929
200,000
1,961,652
-
2,023,581
Losses on
Balance at
revaluation
31 December
/Transfers
2019
£
£
(200,000)
61,929
200,000
1,961,783
-
2,023,712		 Losses on
Balance at
revaluation
31 December
/Transfers
2019
£
£
(200,000)
61,929
200,000
1,961,652
-
2,023,581
Losses on
Balance at
revaluation
31 December
/Transfers
2019
£
£
(200,000)
61,929
200,000
1,961,783
-
2,023,712
2,023,712

Charity

Page 33

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

17 Analysis of net assets between funds

Funds balances are represented by: Group

Unrestricted
funds
2020
£
Tangible
fixed assets
1,779,189
Net current
assets
255,030
2,034,219
Charity
Unrestricted
funds
2020
£
Tangible
fixed assets
1,779,189
Fixed asset
investments
131
Net current
assets
255,030
2,034,350		 Restricted
funds
2020
£
-
23,908

23,908
Restricted
funds
2020
£
-
-
23,908

23,908		 Total
funds
2020
£
1,779,189
278,938

2,058,127
Total
funds
2020
£
1,779,189
131
278,938

2,058,258		 Unrestricted
funds
2019
£
1,816,817
206,764
2,023,581
Unrestricted
funds
2019
£
1,816,817
131
206,764
2,023,712		 Restricted
funds
2019
£
-
2,425
2,425
Restricted
funds
2019
£
-
-
2,425
2,425		 Total
funds 2019
£
1,816,817
209,189
2,026,006
Total
funds 2019
£
1,816,817
131
209,189
2,026,137

Designated funds of £63,067 (2019: £61,929) are represented by net current assets for both the Group and Charity.

18 Related party transactions

During the year 3 trustees (2019: 4) were reimbursed £1,128 (2019: £1,484) for travel expenses.

The charity owns 100% of the issued share capital of Citygate Events Limited, a company incorporated on 9 August 2011. Mr S D Theunissen and Mr J S Salway are directors of this company.

As at 31 December 2020 Citygate Events Limited owed Citygate Church £28,060 (2019: £81,776) which primarily relates to the gift aid distribution payable.

Page 35

Citygate Church

Notes to the accounts (continued) Year ended 31 December 2020

19 Company limited by guarantee

Citygate Church is a company limited by guarantee and therefore has no share capital. In the case of a winding up each member has guaranteed to contribute an amount not exceeding £10. At 31 December 2020 the total of such guarantees was £30 (2019: £30).

20 Taxation

Citygate Church is a registered charity and can claim exemption from Corporation Tax on income and gains which are applied for charitable purposes under section 505, Income and Corporation Taxes Act 1988.

The subsidiary company is subject to Corporation tax.

21 Commitments

The charity has operating lease commitment expiring within five years totalling £880 (2019: £2,054).

22 Reconciliation of net income to net cash flow from operating activities

Net income for the reporting period (as per the
statement of financial activities)
Depreciation
Dividends, interest and rents from investments
Decrease/ (increase) in debtors
(Decrease) in creditors
Net cash inflow from operating activity		 2020
£
32,121
77,798
-
6,592
(12,889)
103,622		 2019
£
1,469
76,660
(1)
5,688
(8,494)
75,322

23 Analysis of changes in net funds

Cash in hand
Cash in hand		 Balance at
1 January
2020
£
197,234
197,234
Balance at
1 January
2019
£
217,604
217,604		 Cash flows
£
63,451
63,451
Cash flows
£
(20,370)
(20,370)		 Balance at
31 December
2020
£
260,685
260,685
Balance at
31 December
2019
£
197,234
197,234

Page 35