# **CORNERSTONE CHURCH SWANSEA (A COMPANY LTD BY GUARANTEE)**
# **REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2021**
**CHARITY NO: 1126582 COMPANY NO: 6653010**
Bevan Buckland LLP Chartered Accountants & Registered Auditors SWANSEA
**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees Report|3 - 21|
|Trustees, Officers and Professional Advisers|22|
|Independent Examiners Report|23|
|Statement of Financial Activities|24|
|Balance Sheet|25 - 26|
|Notes to the Financial Statements
|27–38
|
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 January 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **Structure, Governance and Management**
## **Governing Document**
The organisation is a charitable company limited by guarantee, incorporated on 22 July 2008 and as a registered charity on 5 November 2008. The company was established under a Memorandum and Articles of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10. The Charity is the successor body to Cornerstone Church Swansea Trust (registered charity number 1040639).
## **Recruitment and Appointment of Trustees of the Charity**
The Church Leadership Team have responsibility for identifying potential candidates with appropriate ethos and skills for the position and discuss this with the Trustees. A new Trustee may then be appointed by the Members at a general meeting (and must agree with the Statement of Belief set out in the Schedule to the Memorandum).
## **Trustee Induction and Training**
Most Trustees are already familiar with the practical work of the charity but will undergo an orientation meeting with the Chair of the Trustees and CEO to brief them on their duties and responsibilities as trustees, the content of the Memorandum and Articles of Association, the decision making processes and the current financial position of the charity as set out in the latest published accounts. Trustees are encouraged to attend appropriate training events where these will facilitate the undertaking of their role.
## **Risk Management**
The Trustees review the major risks to which the charity is exposed. The Trustees believe that maintaining reserves at the levels stated, combined with regular reviews of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The Trustees are aware of other operational and external risks and compliance with law risks which Cornerstone Church Swansea face and confirm that they have given consideration to mitigate the significant risks.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Organisational Structure - Cornerstone Community Project**
Director Sarah Richards Director Julian Richards Centre Manager Adam Day Church Worker Matt Richards Project Worker Beth Elis Finance Administrator Paul Burnell Treasurer Adam Day Office Staff Margaret Kelly (volunteer) to March Office Staff Helen Fage (volunteer) to March Administrator Tammy Pece (volunteer) Little Rascals Team Leader Suzanne Brown (volunteer) Gap Projects Team Leader Matt Richards Buttons Team Leader Helen Fage (volunteer) to March
The Directors have managerial responsibility for the projects and oversee all aspects such as Staff supervision, policies and communication. The Team Leaders are responsible for the smooth running of the projects, including day-to-day management of resources, Staff and Volunteers. The Centre Manager is responsible for practical day-to-day running of the Centre and Office Staff. The Trustees are kept informed of decisions and review the activities of the Trust. The Church Leadership are responsible for the broad framework and direction of the Community Project, responding to local needs.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Organisational Structure - Cornerstone Church**
Senior Pastors: Julian and Sarah Richards Leadership Team Elders: Adam Day and Suzanne Brown Leadership Team Matt Richards and Jenny Dwamena Small Group Leader Co-ordinators: Julian and Sarah Richards Small Group Leaders: Tracy and Rob Bowen (to October) Adam and Sian Day Simon and Suzanne Brown Mike and Rachel Leach Surinder and Jason Williams Andrew and Angela Harvey Jez and Helen Fage Beth and Sion Elis Sam and Jenny Dwamena Christie Hornby and Nathan Sadler Russo and Chloe Swart Zoe Bowring and Ben Rattley Matt and Precious Richards Ffion Bowen, Fenia Patricia Youth Leaders: Matt Richards and Beth Elis (Youth 11-16) (to September) Ffion Bowen and Beth Sharpe (From September) Student Worker: Chloe Richards Worship leader: Beth Elis Treasurer: Adam Day
The Senior Pastors and the Elders are responsible for the spiritual leadership, vision, policy and decisions of Cornerstone Church. This is facilitated through the Church by the Small Group Leaders in small group settings. The Small Group Leaders are responsible for pastoral care, - discipleship, outreach and teaching under the supervision of the Small Group Leaders’ Co ordinators. Church Members are encouraged to participate fully in the life of the Church.
The Trustees fulfil their legal obligations on behalf of the Charity, aiming to meet at least four times a year.
Cornerstone is also a member of **New Wine Cymru** , which works with church leaders and churches across Wales.
Cornerstone is part of **Pioneer** - a relational network of over 60 churches across the UK and globally.
Cornerstone is a member of the **Evangelical Alliance** , which represents 1000’s of churches across the United Kingdom.
Cornerstone is one of four founding members of **Gweini** - The Council for Christian Community Work in Wales. Gweini represents churches involved in community work to the Welsh Assembly and supports those churches in their community endeavours.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Related Parties - Contacts and Connections**
We co-operate and work with several charities, organisations and forums:
- Schools: Our schools team Matt and Beth have carried out assemblies and virtual assemblies in Gwyrosydd, Clwyd, Blaen-y-maes, Brynhyfryd and Portmead Primary Schools.
Matt and Beth ra n two weekly ‘Youth Alpha’ lunchtime clubs in Bishop Vaughan and Dylan Thomas secondary schools until lockdown in March. Matt carried out digital story telling courses in Birchgrove Comprehensive School during the Autumn term.
Matt Richards is a governor at Gwyrosydd Primary School.
Gap Food and Gap Extra worked with Portmead Primary School until the middle of March.
- We have supported Blaen-y-maes Foodshare and Penderry Community Hub Foodbank.
- We are members of thirtyone:eight a charity which provides safeguarding advice and support.
- We are members of Evangelical Alliance Wales and Evangelical Alliance UK. Chloe Swart is on the E.A. UK board of trustees.
- We are members of Gweini, the council of Christian community work in Wales.
- We are members of New Wine Cymru, a coalition of churches, leaders and ministries in Wales. Julian Richards leads New Wine Cymru and Sarah is part of the core team.
- Cornerstone is part of the Pioneer network of Churches.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
Cornerstone has been serving the local community and the wider church in Wales for over 29 years. This is both through our community projects and special events, and, through our vibrant and thriving church of all ages. In light of the pandemic we have had to adapt and change the way we do things finding new ways to engage and serve. This has been a busy, challenging and productive time. The work of Cornerstone continues through Cornerstone Community project and Cornerstone Church.
An overview of our activities follows including a brief description of our financial management systems as a charity. The trustees have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the public benefit guidance.
## **Objectives and Activities**
The Cornerstone Community Project **was initiated by Cornerstone Church as a response to local needs. The Project relates specifically to the following Objects of the Charity contained in the company’s memorandum of association:**
- To relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind, including through the provision of counselling and support.
- To provide community facilities for educational recreational and other leisure-time occupation in the interests of social welfare for persons who have need by reason of their youth poverty or social and economic circumstances with the object of improving their conditions of life.
The main objectives and activities for the year continue to focus on tackling social exclusion within the City and County of Swansea through the various community projects we have established and supporting other projects locally.
The strategies employed to assist the charity to meet these objectives include the following:
- Providing a range of services, which are meeting the needs of different sections of the local community in a variety of relevant and creative ways.
- Helping children, young people and adults gain various skills be it social and/or educational that will improve their prospects for the future.
- Use of committed volunteers in many of our projects.
Around 19 volunteers work within Cornerstone Community Project. Their contribution is greatly valued. These volunteers are committed, generous with their time and full of enthusiasm. They play an important part in the ongoing work of Cornerstone Community Project.
## **Achievements and Performance**
Annual reports on projects that are part of Cornerstone Community Project undertaken to further our charitable purpose for the public benefit follow:
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
## Cornerstone Community Projects
With the arrival of lockdown in March 2020, this past year has seen us find new ways to engage with and serve our local community.
Initially we began running our regular after-school clubs during February and the first twoweeks of March, including Gap Extra and Gap Food with Portmead Primary school, serving over 20 children age 8-11.
Alongside this we ran ‘Youth’ on Thursday nights for local teenagers and Lunchtime Alpha groups in Bishop Vaughan and Dylan Thomas Comprehensive schools, together serving over 50 teenagers.
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Youth Zoom
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With the arrival of lockdown the Youth team took Youth online. Each Thursday the young people would gather on Zoom for an hour’s session including a weekly catch -up, games, tips on surviving lockdown, stories from Jesus’ life and finishing off by joining in with th e weekly ‘clap for the NHS’! The young people loved seeing each other and being able to share their news as they navigated the first few months of lockdown before the summer holidays. In September 2020 we launched a Youth Girls Zoom, hosted by Beth, Ffion & Naomi, which served a group of 7 young people aged 12 – 14.
## Online School Assemblies
From September 2020 Matt & Beth produced a series of online School Assemblies for the local primary schools, including Blaenymaes, Brynhyfryd, Clwyd, Gwyrosydd and Portmead. These fun-packed short videos included games, quizzes, songs and Bible-stories. We received great feedback from the schools, saying that the children loved the videos and – as whole school- assemblies weren’t able to run - that they helped plug a gap for teachers. Here are some examples:
_“Please can you send me a link to more of your fantastic cornerstones assemblies so that we can share them with the children? The all loved the last one.”_ Mrs Evans, Deputy Head – Portmead Primary School
_“Just wanted to drop you a message! The youtube vid eo was AMAZING! everyone absolutely loved it and the kids loved having a sing along!! We can’t wait for the next one!”_ Mrs Bacon, Class Teacher - Blaenymaes School
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## **CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
_Amazing thank you! Anything you can send would be amazing thank you!! All year groups are in "bubbles" so no gathered halltime. Keep sending anything you have my way if possible please!_ – _Hugely grateful.”_ Mr Knight, Deputy Head Brynhyfryd school.
_“Hey Matt and Beth. The latest assembly is top quality! There is a buzz around the school about them. We'd love to show more when you do them. Thanks so much.”_ Mr Brown, STF Teacher - Clwyd Primary School.
## Digital StoryTelling with Birchgrove Comprehensive School’s STF
During the Christmas Term Matthew ran a 6-week Digital Story-Telling course for 11 young people with additional learning needs across two STF classes in Birchgrove Comprehensive School.
Every two- weeks Mrs Kay Lee’s Year 7 and Year 8-9 classes would engage in a fun lesson filled with games, quizzes, story- telling and art. These activities explored the theme of ‘Bravery’ and the story of the Good Samaritan, with the children progressing towards telling their own ‘Brave Stories.’
- These stories took the form of ‘Digital Story Telling’. The young people created a short storyboard to illustrate a time they did something ‘Brave,’ using Emoji stickers to share how they felt at each stage of the story. Matthew then recorded the young people narrating their stories and combined the two into animated videos.
On the final week the Young People were treated to a cinema experience of their own films, complete with drinks and popcorn! The young people were amazed to see their stories come to life. Their faces lit up with excitement as they saw their work on the big screen and heard their own voices! Mrs Lee and the class’s Teaching Assistants, knowing the challenges these young people face in their learning, were moved to tears seei ng their achievement. The School’s Head and Deputy-Head Teachers also joined in to support. Each child was presented with a certificate and USB copy of their video to take home to their families.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
## Food Share
From July 2020 we began supporting our two local Food Shares in Blaenymaes and Penlan (now Penderry Community Hub Food Bank). This involved:
- Announcing the details of the Food Shares on our weekly ‘Sunday online’ videos
- Regular food donations from church members
- Collecting monetary donations through a ‘Giving page’ on our website - which were then used to purchase the specific food items requested by the Food Shares on a weekly basis.
This regular giving has been a big help to the Food Share and Food Bank who have often faced queues of people in need of support throughout the pandemic. Both have commented on occasions that these donations have kept them from running out of food when stocks have run low.
In addition, at Christmas we ran a campaign to collect 100 Christmas Treat Boxes for the Food Share. These boxes were to be given out alongside a standard Food Parcel, so that those needing help at this time could enjoy some Christmas treats over the festive period. The Food Share was thrilled to receive them. Having exceeded our target of 100, we even had some extra boxes to give to the Phoenix Centre, Townhill.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
The Christmas Treat Boxes were then match-funded by HTB Church, London! This meant we were able to provide food for families struggling during those often difficult weeks following Christmas and the New Year. Penderry Community Hub were so amazed that they even weighed one week’s donation – measuring it at almost a metric-tonne!
## Little Rascals
Our popular weekly playgroup continued until lockdown in March with up to 23 pre-school children and their parents/carers attending each week.
The team contacted the parents/ carers during lockdown to let them know they were there for them including sending them a little gift. They also informed parents about the Cornerstone online kids resources which were accessible through our website and included kids cook-alongs, games, fun activities and Bible stories.
## Buttons Charity Shop
As planned we brought the work of Buttons Charity shop to an end in March. We felt it was the right time to close whilst we were still generating a small net profit. A number of our volunteers had retired and the shop was only able to open a maximum of 3 ½ days a week. The timing proved fortuitous as we closed just before the arrival of the first lockdown.
Our vision was to be a welcoming
presence in Morriston where our Venue2 building is also situated, provide affordable clothing in a poor area of Swansea and to raise funds for our community work with children and young people predominantly in the deprived Penderry ward.
The warm and friendly atmosphere created by the volunteers’ was a hallmark of Buttons over 6+ years. The team made time to chat to customers, providing a listening ear and building a rapport with regulars. The kindness of volunteers was often commented on. We are extremely grateful for the hard work of all our volunteers, especially Helen Fage, who led the team.
Locally many people supported us with second-hand donations which were a great help and enabled us to provide affordable clothing to many. Any net profit we made over this time went back into our community projects serving children and young people in some of the most disadvantaged communities in our city.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
The work of Cornerstone Church
relates especially to the following Object of the Charity contained in the company’s memorandum of association:
- To advance the Christian faith in accordance with the Statement of Beliefs appearing in the Schedule hereto in Swansea and in such other parts of the United Kingdom or the World as the directors of the Charity (herein called “the trustees”) may from time to time think fit and to fulfil such other purposes which are exclusively charitable according to the law of England and Wales and are connected with the charitable work of the Charity.
The main **objectives and activities** for the year continue to focus on outreach, training, teaching, pastoral care and working with other churches in the U.K. and overseas.
## **1 Feb 2020 – 31 Jan 2021 Annual Report**
**2020** turned out to be a challenging year, all over the world, with the Covid-19 pandemic. As countries went into lockdown, and the streets went quiet, everything changed almost overnight. As a local church and charity, we needed to respond quickly to fast changing circumstances and long seasons of uncertainty. The year revealed the resilience of the church, the love of the people for one another and an opportunity for new talents to emerge. We were able to continue to serve the poor in our locality, although in a different way. This is a Summary of our Covid year by month.
## **FEB 2020**
In the middle of February, we had our annual Student weekend away, Friday 14 - Sunday 16 at St. Madoc camp, at the beautiful beach of Llanmadoc. 65 students, youth & post-grads gathered for fun and relationship building, for worship, prayer and teaching to go deeper in their faith. The event was student led, with peer teaching. It was a great time away, led by our student leader Chloe Richards, and her team. This was the last close contact encounter the church had in the year.
## **MARCH 2020**
1 - 7 March, Julian & Sarah joined leaders from all over the world at the New Wine International Conference in Harrogate. Then they spoke at the New Wine England Leaders conference on mission, using the experiences of ‘ Mission to Wales ’ to help New Wine England vision-cast their intended mission strategy for 2020. This was followed directly by joining leaders from across the U.K. at the Pioneer Annual Leaders Conference in Southampton. This intensive period of meeting with leaders from across the U.K. and the world was to be the last in-person connection of its kind for the year ahead.
Weddings! With a national lockdown looming, three weddings in the church calendar were swiftly brought forward. At this stage we could no longer meet in a large group and very minimum numbers were allowed. So, with no congregation or bridesmaid in sight, we married three young couples with just a few of us at venue2. Saturday 21 March Matthew & Precious
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
Richards and then on Monday 23 March, Chloe & Russo Swart and Bea & Darko Biney married in our venue2 café area with Julian & Sarah, registrar, and witness!
During the year 2020 we ran 6 Alpha courses, on zoom with around 10 people becoming Christians on the course.
Pre- lockdown we ran a “24/7 Prayer” all -nighter at Penlan to pray for our community and our world.
On March 15 and 22 we live-streamed our Sunday services from venue2 as a trial in case of lockdown. Julian drove around the city dropping off cameras and lighting equipment to our team, so we could create a Sunday meeting in a different way. Then the inevitable happened, on the evening of 23 March 2020, the Prime Minister announced a National Lockdown for the whole of the U.K.
From 29 March 2020, lockdown forced us to begin a year of pre-filmed services, going out “live” on a Sunday morning, taking 1 -2 weeks for the team to prepare each one. This process was highly work intensive. The team filmed, then the material was edited, and played in our 11am Sunday morning slot. Our small groups met for coffee on zoom, pre-meeting, to continue a sense of togetherness. Our meetings contained as many photos and films of church ‘family’ as possible , to help people to feel connected.
During this intense period, of creating pre-filmed meetings, a season of creativity erupted among the team! We had very creative contributions from the children’s team, providing a Kids Spot in the meeting, even to animation & puppets. Creative venues were used for filming, from the kitchen to the park, Penllergaer woods to Rhosilli sunflower fields.
The students began to post “Takeover Tuesdays” on our Student Instagram; each week a student Small Group Leader shared their day, complete with a Bible verse, to encourage and unite the students now scattered across the world.
Our worship leader, Beth created “Beth’s playlist”, a weekly online worship set for the church, so people could access a ready-made worship experience.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
– For the children we created an online Sunday school on Sunday afternoons alternating the weeks for 3- 6’s / 7 - 11’s / and a Family Cook-along with Sian Day, making homemade pizza, cream tea, welshcakes etc.
During 2020 we sent out a church email most Fridays, with news and encouragement, information and Covid updates, so that we could ensure good communication with all our members to feel connected and informed. We could also add some fun stuff, pictures, recipes, and children’s activity books. This was an important way to keep in touch.
## **APRIL**
Once we had found our confidence in producing a quality meeting, we went from private viewing via a shared link, to putting our Sunday meetings publicly on YouTube from Sunday April 5. From this Sunday we also created a GIVE tab on our website for tithes and offerings, as we could no longer meet on Sundays or pass an offering basket round. Throughout the pandemic the church continued to give faithfully and generously.
On 9 April, Easter Sunday, our service was watched by people from all over the world! The 4 home nations; Wales, Scotland, Ireland & England. Plus, it got viewed in Sweden, Canada, America, Brazil, Nigeria, Kenya, India, Malaysia and even Russia, to name a few.
A real plus for us as a church in this unexpected season of Covid restrictions, was that all church members belonged to a small group community. So, although our buildings were closed, people could still connect as church family together and this was a real lifeline to people. Throughout the pandemic the small groups met on zoom, and as restrictions eased, in the park, in gardens, on the seafront, in cafes. They continued to show care for one another, with doorstep drop offs, and other creative ways of showing love and care during the restrictions.
Early on, in the pandemic we ran a few online courses. Julian ran 2 Theology courses, and then 4 Sunday night sessions on Women in Leadership from his dvd series, both followed by an interactive Q&A. As lockdown was extended and people were working on zoom all day, we scaled this kind of zoom provision back. The human connection was the most important thing, through spiritual support in small groups and the online Sunday meetings.
## **MAY**
On May 15 we hel d a Men’s Quiz Night on zoom, which the men all enjoyed.
At the end of May and early June we put up large visible signs at both our buildings, Penlan and venue2, to communicate that the church was accessible online. Through both the signs and word of mouth, this began an online following watching the Sunday meetings.
We wanted to continue to reach children in the community while our projects were closed, so we created and advertised a dedicated KIDS page on our website. The content featured all the Kids Spots, Sunday Schools & Assemblies that our team were filming for local schools. All the Kids activities became easily accessible in one place for all children stuck at home during lockdown.
All over the UK there was an increase in spiritual searching. By mid-May statistics showed that 24% of UK adults and 34% of UK adults aged 18-34 had engaged with an online church service since lockdown. Popular Google searches were ‘prayer’ and ‘church’. Tearfund released a study with statistics on prayer and spiritual searching during lockdown.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
We continued to have an online following for our meetings from all over the world. We would have 100 devices logged on during the Sunday meeting, followed by up to 400 views by the end of the month.
https://www.tearfund.org/en/media/press_releases/many_brits_look_to_faith_during_lockdown /
From Sunday 24 May we started a “Lockdown Life” teaching series, using “lockdown” stories from the Bible to help us, and our online following with all aspects of life in lockdown!
By the end of May, we had good news that two households could now meet in the open air, still social distanced, within a 5-mile radius of home. So, at last people could meet local friends and family outside, one household at a time.
## **JUNE**
By Sunday 14 June we had reached our Café Fund target to pay off the tax on this area of venue2. We had decided not to run a commercial café, as originally planned, as we needed the café area space for the growing church and couldn’t afford to lose this space to another activity. The church were incredibly generous and willing in giving to this need.
For Father’s Day, Sun 21 June, we posted out a Yorkie bar to all the dads! As we could still not me et in person, we tried to find creative ways to ‘love one another’.
## **JULY**
As our buildings were closed, our usual projects were on hold because of social distancing and other Covid restrictions. So we looked for other ways to support our community. From 10 July we launched a new initiative for helping the poor in our area, especially around our Penlan building where we have been helping serve the needs in our community for over 27 years. We encouraged the church to support our 2 local FoodShare community initiatives. These were more informal than Foodbank, where people in need could just turn up and receive food. This was a very practical way of supporting the local Foodshare teams, and the families who were most hit by the pandemic, adjus ting to redundancy’s, pay cuts and having children home over the holidays.
We continued to support the homeless through our donation to The Big Issue.
During July we took the opportunity of doing some refurbishment and maintenance on our two buildings during lockdown. Including repainting the main foyer, corridor, toilets, and all three 3 breakout rooms at venue2.
On Friday 17 July we held our first in-person leadership meeting in the open air in venue2 car park! We brought together all our Small Group Leaders and Student Leaders. It was such a great experience to be together. We ended with a walk through of venue2, to see the freshly painted rooms and to experience the new main hall set-up, of chairs at 2metres distance, in advance of bringing back our congregation.
At this time the Welsh Assembly Government announced that churches could resume meeting, with various health and safety protocols to keep people Covid-safe in the venue. So as a team we began to work on the guidelines and necessary protocols to start meeting back.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
During July we began creating an expanded Media team. Consulting with a livestream ‘expert’ from another organisation, Jake Russell. We purchased new equipment for filming and livestreaming, expanded the team, learnt new skills, and provided online zoom training with Jake for singers & camera operators. We built some new staging and purchased some additional lights. This was a period of intense growth and investment to take our livestreamed meetings to the next level. The church teams, all volunteer, showed incredible commitment and tenacity to wrestle with new ideas and ways of doing things.
On Tuesday 28 July we held a church member’s Small Groups Together on zoom, during this meeting we were able to explain the necessary Covid guidelines for return to v2, which were also sent to every church member. Everyone was very excited to come back, but also cautious. We felt that trying out a couple of Tuesday nights in holiday season would be the ideal soft come-back to trial our new protocols.
## **AUGUST**
In August we held our first in-person services since March 2020! We took it on as a process, meeting on Tuesday nights in August as small group members only. We met on August 4, 18 and September 8. As restrictions meant we couldn’t share food and drink, or equipment, members brought their own communion with them.
We decided that a slow but sure return would enable us all to create a safe environment for everyone to come back together to worship and to see each other!
Meeting first as adult members, mid-week, meant we could make sure every attender knew the new protocols so that we could build a Covid-safe culture and way of behaviour, ready to welcome guests on a public Sunday.
At our first in-person meeting on Tues 4 Aug we gathered 62 members in venue2 and 30 devices on zoom. This was the start of our hybrid meetings; live and online together.
We began to trial a booking system, so that we could accommodate everyone safely, and when all the seats were filled the bookings would be ‘Sold Out’. By the end of 2020 our meetings were regularly ‘sold out’ by midweek, and so the livestream enabled us to include everyone by having an online congregation participate simultaneously.
From 21 August children were allowed to come back to church and age 11 and under were no longer required to social distance. We began working on “Cornerstone Guidelines for Chi ldren in Church”, based on the Government guidelines for keeping children and adults safe. A copy went out to all parents and children’s workers by the end of August, to allow plenty of time for both parents and children’s workers to absorb the new guideli nes before our planned return to Sunday meetings on 20 September.
This was a busy season of writing Risk Assessments for all church activities. Trustees Adam Day and Tammy Pece worked faithfully on these and are to be commended for their faithfulness to government guidelines in keeping our congregation safe.
## **SEPT**
It was with great joy that we met together in-person finally! Sunday 20 September was our first meeting back in venue2. We could only fit 100/120 in the room. No singing was allowed, as it was considered a high-risk activity. The band could play, and as a congregation we began to learn to worship without singing. On that first Sunday back, we also released a pre-filmed service for our online congregation not able to be with us in v2.
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**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
By Sunday 20 September we had produced a total of 28 online services, 26 of which were prefilmed, from March 15 - 20 September 2020.
The congregation embraced being back, some tentative if shielding, all vigilant on Covid regulations. We all sat at 2 metre distance, no mingling in the foyer, straight to our seats, and were dismissed covid-style in sections into the car park, at the end of the meeting. This was a very counter-cultural season, contrary to all the social interaction we had previously practised as a welcoming relational church. So we worked hard at keeping a kind and friendly culture in every other way possible.
Then masks were introduced. From Tues 15 Sept the Welsh Assembly Government communicated that face coverings were required. This was quite a blow, although we were all happy for this extra level of safety, it did make meetings more uncomfortable.
As regulations allowed, some small groups ventured back to ‘in - person’ worship in the breakout rooms at venue2. It was still challenging with wearing masks and social distancing, but a relief to be together.
On Wednesday 23 Sept Julian ran a live online interview with John Burke, the New York Times best-selling author of _Imagine Heaven_ , from Austin, Texas which had a wide reach. In late September Sarah filmed leading & facilitating the Global Leadership Summit with its CEO Roger Fairhead for the online conference events across the U.K.
By late September, Covid case rates had once again risen across the nation and various counties across Wales went into lockdown, including the City & County of Swansea from Sunday evening 27 Sept. Church meetings could still go ahead, for now, but only those living in the City & County of Swansea were allowed to attend in person. This left us with a problem, as it did for many churches, of volunteers on our production team unable to come as they lived ‘across the County border’ . After some negotiation with the Welsh Government, volunteers were allowed to ‘cross the boundary line’ to provide volunteer services.
## **OCTOBER**
During this season, we made our Preparation for Marriage course “Made to Last” available as a digital course to many young couples. One of these couples was Laura and Damian, who were our first Covid Wedding, celebrated on October 3. Due to Government restrictions, the service was in masks, and their reception was on zoom. Yet we made it all as fun as we could for them.
From Sunday 4 October we started 2pm Student Meetings. We had reached capacity in venue2. Although we continued with hybrid meetings for our 11am service, by creating an extra 2pm service, the student work was able to grow and flourish. It also gave opportunity to train up new young leaders.
- October saw us back in full Lockdown again, for a “2 week firebreak”. For the 3 Sundays of 25 Oct, 1 and 8 Nov we went swiftly back to online meetings, with a combination of new and recycled pre-filmed content. The commitment and agility of the production team, to film and edit in time for these meetings with little warning was exemplary throughout the year.
**17**
**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
The Firebreak was followed by severe restrictions in the City & County of Swansea, as well as most of Wales.
## **NOV**
From Nov 1 we started an Advent series leading up to Christmas. We noticed that in lockdown the mood of the nation was embracing Christmas early, as a season of hope, and some anticipated relief from Covid monotony.
On Thurs 5 November, the Church celebrated its 29-year anniversary.
We had good news from the Welsh Government on 9 Nov that more than 1 lead singer would be allowed. So, we resumed our band backing vocalists on Sunday 15 Nov when we could once again meet at venue2.
During November we had a very generous personal gift from a church member, of a second set of stage stairs, to enable the band to maintain social distancing getting on and off the stage, by using both sides. This is just one example of people’s goodwill toward one another and the church community during this stressful season.
In November we launched a Christmas box initiative to give to the Foodshares. As a church we made a goal of creating and providing 100 “Treat Boxes” as well as the usual food shopping, for families who had been supported by the Foodshare during Covid. The church embraced this with enthusiasm and began to shop and create wonderful boxes of treats.
## **DEC**
We exceeded our goal of 100 treat boxes, with a total of 108 boxes. The boxes were gratefully received and were more than needed, so we donated 34 of the boxes to The Pheonix Centre in the heart of Townhill.
In December we applied for match funding for the Treat Boxes. HTB Church in London ran a campaign called “Love Christmas”, focused on local churches giving Christmas boxes to those in need. Due to a kind donor, they offered to match fund every box of food already given. Many churches all over Wales applied for this and doubled their giving. Our funding application was successful! This meant that Cornerstone received funds to provide another 108 boxes worth of food for those in need up to Jan 14, 2021. Many volunteers engaged with this opportunity to make it happen within the timescale.
We planned to hold three Christmas services. Our Student Christmas Service 6 December, an evening Christmas Service 6pm on 13 December, and a Family Christmas Service on 20 December. We created a hybrid invite of online or in-person, as we only had room for 120 people in venue2 at 2m distance. By 20 December Covid rates had risen again so much that
**18**
**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Achievements and Performance (Cont’d)**
we took the decision not to bring people together in-person at venue2, and quickly re-created the Family Service as a pre-filmed event to be watched online.
By 23 Dec 2020, the nation was at Level 4 coping with the new Delta variant of Covid-19. The Welsh Assembly Government advised no in-person meetings. We went back to pre-filmed services and Lockdown No.3 started from Boxing Day. This was a very challenging and disappointing period in the middle of winter, and in a festive season. The team continued working hard in reaching out, caring for the sick and helping support one another.
## **JAN 2021**
The New Year was celebrated in lockdown and saw us going back to pre-filmed services, using a combination of new and recycled material from the past year. We were back on zoom and on Tues 12 Jan we came together as a whole church for a Small Groups Together online. During January, New Wine Cymru started a 10-week ‘ Kingdom Intensive ’ online course with Bruce Collins and a team from Cornerstone, Matthew Richards, Chloe Swart and Julian and Sarah. We saw many people get miraculously healed during these weeks on zoom.
From Jan 31 we started a new teaching series on our pre-filmed Sunday services called “Journey to the Cross”, to lead up to Easter.
During the year, several church members encountered family bereavements, as well as deaths of church members. So, we initiated the church to go on the online Bereavement Training course with Care for the Family.
## **STAFF & VOLUNTEERS**
The staff team stayed busy and active during 2020, pivoting their attention to the new needs with great agility. Learning new skills of filmmaking and live-streaming, as well as running two buildings and caring for the social and spiritual well-being of the congregation. Adapting and motivating the church body to care for the poor in new ways. Although 2020 was a time of huge challenge it was also a year of fast growth and development.
As a leadership team, we are also so grateful to the unwavering commitment and sacrifice of all our volunteers who make leading a healthy thriving church possible, supporting one another, and reaching out to our local community. From trustees, elders, pastoral small group leaders, those in our student, children and youth work, our production team and all the many volunteers who serve at venue2, thank you for your continued passion, hard work and devotion.
**19**
**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Financial Review**
The charity’s balance sheet shows a satisfactory position with Unrestricted Funds totalling £1,170,793 and Restricted Funds totalling £21,719.
Incoming resources during the year were £299,548 of which £47,730 was restricted. The resources expended during the year totalled £264,019 of which £713 was spent on the charity shop, £249,453 was spent on direct charitable objectives, £13,853 was spent on support costs. This has resulted in net incoming resources of £35,529.
The Leadership and Trustees monitor financial activity closely to ensure that expenditure and budgets relate to income. Regular giving and use of the gift-aid scheme by Church Members is essential for the Church to continue at its present level of ministry and to develop in the mid-tolong term. We continue to monitor our income carefully.
Our regular giving, offerings and other donations have continued to increase this year which is positive. Last year we raised funds from members for chairs for Bethel Church in Carmarthen. This year we raised money for Foodshare (as well as physical food donations) and a Café Fund for costs related to the Café.
## **Principal Funding Sources**
The principal funding sources for the charity are Cornerstone Church Members Other private donors
## **Investment Policy**
The Trustees have generally operated a policy of keeping available surplus funds in interest bearing deposit accounts.
## **Reserves Policy**
The designated capital asset fund is £1,011,966, this represent the value of reserves spent on tangible fixed assets. As we no longer intend to run the Café at venue2 as a commercial venture the Café Refurbishment/ Costs fund of £30,000 were instead designated for medium term Planned Strategic Spend. The restricted Café Fund of £18,820 has now been unrestricted and may be used for ongoing phases of development of venue2 and community work among other things. Community Project Funds of £3,849 are designated for use in costs related to projects. Reach Funds are designated funds to reach needs around the world of poverty and injustice and total £976.
There are designated funds for Cornerstone Church Swansea Future Running Costs of £80,000. The Trustees feel the ideal designated future running costs in unrestricted funds would be at a level, which equates to 4 months of unrestricted charitable expenditure. The Trustees consider that this level of reserves will provide sufficient funds for implementation of a contingency plan in the event of a significant drop in income. At present the current level of designated future running costs is below this level at 13 weeks. The Trustees aim to increase this further to obtain a level nearer their ideal reserve level, once the refurbishment of the new property has been fully completed. This policy is kept under regular review.
**20**
**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Plans for Future Periods**
## Cornerstone will:
- Continue to develop work with churches nationally and internationally.
- Continue to raise volunteers, ministries and resources for ongoing expansion of Cornerstone’s activities .
- Complete ongoing phases of the development of our venue2 building, Morriston in order to further expand the work of Cornerstone.
**21**
**CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2021**
## **Reference and Administrative Information**
**Charity Name:** Cornerstone Church Swansea **Charity Registration Number** : 1126582 **Company Registration Number:** 6653010 **Registered Office and Operational Address:** Cornerstone Church 32 Mynydd Newydd Road Penlan Swansea SA5 5AE Telephone: (01792) 516031 Email: info@cornerstonechurch.co.uk Web: www.cornerstonechurch.co.uk **Trustees:** Tamsin Pece (Chair) Robert Bowen (Company Secretary) Adam Day Andrew Harvey Suzanne Brown Hannah Jones (from 13/01/21)
**Chief Executive Officers:** Sarah and Julian Richards
**Accountants:** Bevan Buckland LPP Chartered Accountants Ground Floor Cardigan House Llansamlet Swansea SA7 9LZ
**Bankers:** Lloyds Oxford Street Swansea SA1 3AF **Solicitors:** Lawson Lewis Blakers Solicitors 11-12 Hyde Gardens Eastbourne East Sussex BN21 4PP
Approved by order of the board of trustees on ………………………………………. and signed on its behalf by:
…………………………………………… Mr A Day
**22**
**INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF CORNERSTONE CHURCH SWANSEA**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
## **Independent examiner's report to the trustees of Cornerstone Church (Swansea)**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 January 2021.
## **Responsibilities and basis of report**
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 requirement of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Charitable Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of 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.
## **Independent examiner's statement**
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Institute of Chartered Accountants in England and Wales which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention 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 requirements that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- **4** the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Alison Vickers
Institute of Chartered Accountants in England & Wales Bevan Buckland LLP Langdon House, Langdon Road SA1 Swansea Waterfront SA1 8QY
23
## **CORNERSTONE CHURCH SWANSEA**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **(Incorporating the Income and Expenditure Account)**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
|**NOTE**
**Incoming Resources**
**Incoming resources from**
**Generated funds:**
**Voluntary income**
Regular Givings and
Other Offerings
**_Activities generating funds:_**
Trading income
**_Investment income:_**
Investment income:
**3**
**Incoming resources from**
**charitable activities:**
Charitable
**Total Incoming Resources**
**Resources Expended**
**Fundraising trading:**
Charity shops
**Charitable activities**
**Support costs**
**Total Resources Expended**
**4**
**Net incoming/ (Outgoing)**
**resources**
Transfer Between Funds
**Funds Brought forward**
**Funds Carried forward**||**Unrestricted**
**Funds**
**£**
243,746
1,939
42
6,091|**Restricted**
**Funds**
**£**
47,730
-
-
-|**Total**
**Funds**
**2021**
**£**
291,476
1,939
42
6,091|**Total**
**Funds**
**2020**
**£**
271,930
7,885
52
3,475|
|---|---|---|---|---|---|
|||251,818|47,730|299,548|283,342|
|||713
244,812
13,853|-
4,641
-|713
249,453
13,853|7,606
270,331
13,559|
|||259,378|4,641|264,019|291,496|
|||(7,560)
43,170|43,089
(43,170)|35,529
-|(8,154)
-|
|||35,610
1,135,183|(81)
21,800|35,529
1,156,983|(8,154)
1,165,137|
|||1,170,793|21,719|1,192,512|1,156,983|
The results for the year derive from continuing activities and there are no gains or losses other than those shown above.
24
**CORNERSTONE CHURCH SWANSEA**
## **BALANCE SHEET**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
|**NOTE**
**FIXED ASSETS**
Tangible Assets
9
**CURRENT ASSETS**
Debtors
10
Cash at Bank and in Hand
**CREDITORS:**amount falling
due within one year
11
**NET CURRENT ASSETS**
**CREDITORS:**amount falling
due after one year
12
**FUNDS**
Unrestricted Funds
13
Restricted Funds
13|**£**
**£**
**£**
**£**
1,123,023
1,154,581
34,441
16,471
167,040
134,577
201,481
151,048
(41,445)
(36,442)
160,036
114,606
(90,547)
(112,204)
1,192,512
1,156,983
1,170,793
1,135,183
21,719
21,800
1,192,512
1,156,983
**2021**
**2020**|**£**
**£**
**£**
**£**
1,123,023
1,154,581
34,441
16,471
167,040
134,577
201,481
151,048
(41,445)
(36,442)
160,036
114,606
(90,547)
(112,204)
1,192,512
1,156,983
1,170,793
1,135,183
21,719
21,800
1,192,512
1,156,983
**2021**
**2020**|
|---|---|---|
||201,481
(41,445)||
||||
|||1,156,983|
|||1,135,183
21,800|
|||1,156,983|
For the year ended 31 January 2021 the charitable company is entitled to exemption from an audit under section 477 of the Companies Act 2006.
The members have not required the charitable company to obtain an audit of its financial statements for the year in question in accordance with section 476 of the Companies Act 2006.
The trustees acknowledge their responsibility for:
i) Ensuring that the charitable company keeps accounting records which comply with Section 386 and 387 of the Companies Act 2006 and
25
## **CORNERSTONE CHURCH SWANSEA**
## **BALANCE SHEET CONTINUED**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
ii) Preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at 31st January 2021 and of its surplus or deficit for the year ended in accordance with the requirements of Section 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
Approved by the Board on
TRUSTEE........................................ Adam Day
DATE...............................................
26
## **CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
## **1 ACCOUNTING POLICIES**
## **a**
## **Accounting Convention**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charity SORP (FRS 102), 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland' (FRS 102) (effective 1 January 2019)' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **b Financial reporting standard 102-reduced disclosure exemptions**
The charity has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
-the requirements of Section 7 Statement of Cash Flows.
## **c Fund Accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
The Designated funds are held as a contingency fund, to cover future running costs. The amount is based on costs incurred for six months.
## **d 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. The following specific policies are applied to particular categories of income:
- Voluntary income is received by way of 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 and rental income are included when receivable
- • Incoming resources from grants when related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance
## **e Resources Expended**
Resources expended are included in the Statement of Financial Activities on an accrual basis as a liability is incurred, including irrecoverable VAT.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities, both costs directly attributable and indirect support costs.
27
**CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
## **(Resources Expended continued)**
Governance costs include those costs associated with meeting constitutional and statutory requirements, principally accounting/audit and AGM expenses.
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of expenditure to which it relates:
## **f Fixed Assets**
Fixed assets are stated at cost, less accumulated depreciation.
Depreciation has been computed to write off the cost of the tangible fixed assets
Furniture & Equipment 25% Reducing Balance Motor Vehicle 25% Reducing Balance Property 2% Straight Line
Assets below £2,500 are not capitalised, but included within expenses.
## **g**
## **Pensions**
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in th period to which they relate.
## **h Financial instruments**
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## **i Basic financial assets**
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised
## **j Debtors**
Short term debtors are measured at transaction price, less any impairment.
## **k Cash at bank and in hand**
Cash at bank and cash in hand includes cash and current and deposit accounts.
28
**CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
## **l Impairment of financial assets**
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss
## **m Basic financial liabilities**
Basic financial liabilities, including creditors,that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## **n Creditors**
Short term creditors are measured at transaction price.
## **o Provision for liabilities**
Provisions are recognised when the company has a present obligation (legal and constructive) from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
## **p Functional and Presentation Currency**
The company's functional and presentation currency is pounds sterling.
## **q Going Concern**
The company continues to adopt the going concern basis in preparing its financial statements.
29
## **CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
|**2**
**NET (OUTGOING)/INCOMING RESOURCES FOR YEAR**
This is stated after charging
Depreciation of owned fixed assets
Accountancy fees
**3**
**INTEREST RECEIVABLE**
Bank Interest|**2021**
**£**
31,558
5,883
**2021**
**£**
42|**2020**
**£**
32,458
4,706|
|---|---|---|
|||**2020**
**£**
52|
30
|**Total resources expended**|Foodshare expenses|Gift of Chairs to other Church|Bank Charges & Interest|Depreciation|Accountancy fee|Legal & Professional Fees|Other Expenses|31
Travel & Accommodation|IT & Telephone|Postage, Advertising|& Equipment|Activities, supplies|Repairs, Renewals & improvements|Premises|Staff|Costs Directly Allocated To Activities|Costs Directly Allocated To Activities|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||Direct|Direct|Direct|Direct|Direct|Direct|Direct|Direct|Direct||Direct||Direct|Direct|Direct|||**allocation**|**Basis of**|
|250,166|3,608|-|4,941|31,558|-|-|34,346|5,951|5,320||8,419||8,577|15,809|131,637||**£**|**Church**|**Cornerstone**|
|13,853|-|-|-|-|5,883|7,970|-|-|-||-||-|-|-||**£**|**Costs**|**Support**|
|264,019|3,608|-|4,941|31,558|5,883|7,970|34,346|5,951|5,320||8,419||8,577|15,809|131,637||**£**|**TOTAL**|**2021**|
|291,496|-|5,250|5,987|32,458|4,706|8,853|38,721|11,715|7,404||5,598||8,984|28,476|133,344||**£**|**TOTAL**|**2020**|
## **CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
## **5 KEY MANAGEMENT EMOLUMENTS**
The amount paid to the key management of the charity during the year, was as follows;
|Emoluments (excluding pension contributions)
No key management received emoluments over £60,000.|**2021**
**£**
118,968|**2020**
**£**
117,539|
|---|---|---|
||||
## **6 EMPLOYEE INFORMATION**
|Staff Costs
Total Emoluments
Social Security
Pension costs|**2021**
**_£_**
118,580
6,858
6,199
131,637|**2020**
**_£_**
119,351
7,794
6,199|
|---|---|---|
|||133,344|
The average number of employees during the year, calculated on the basis of full time equivalents.
|equivalents.|||||
|---|---|---|---|---|
||**2021**||**2020**||
|Church||4||4|
32
## **CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
|**7 COMPARATIVES FOR THE STATEMENT**
**Incoming Resources**
**Voluntary income**
Regular Givings and
Other Offerings
**_Activities generating funds:_**
Trading income
**_Investment income:_**
Investment income:
**Incoming resources from**
**charitable activities:**
Charitable
**Total Incoming Resources**
**Resources Expended**
**Fundraising trading:**
Charity shops
**Charitable activities**
**Support costs**
**Total Resources Expended**
**Net incoming/ (Outgoing)**
**resources**
Transfer Between Funds
**Funds Brought forward**
**Funds Carried forward**|**7 COMPARATIVES FOR THE STATEMENT**
**Incoming Resources**
**Voluntary income**
Regular Givings and
Other Offerings
**_Activities generating funds:_**
Trading income
**_Investment income:_**
Investment income:
**Incoming resources from**
**charitable activities:**
Charitable
**Total Incoming Resources**
**Resources Expended**
**Fundraising trading:**
Charity shops
**Charitable activities**
**Support costs**
**Total Resources Expended**
**Net incoming/ (Outgoing)**
**resources**
Transfer Between Funds
**Funds Brought forward**
**Funds Carried forward**|**OF FINANCIAL ACTIVITIES**
**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
237,319
34,611
271,930
7,885
-
7,885
52
-
52
3,475
-
3,475
248,731
34,611
283,342
7,606
-
7,606
259,696
10,635
270,331
13,559
-
13,559
280,861
10,635
291,496
(32,130)
23,976
(8,154)
23,992
(23,992)
-
(8,138)
(16)
(8,154)
1,143,321
21,816
1,165,137|**OF FINANCIAL ACTIVITIES**
**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
237,319
34,611
271,930
7,885
-
7,885
52
-
52
3,475
-
3,475
248,731
34,611
283,342
7,606
-
7,606
259,696
10,635
270,331
13,559
-
13,559
280,861
10,635
291,496
(32,130)
23,976
(8,154)
23,992
(23,992)
-
(8,138)
(16)
(8,154)
1,143,321
21,816
1,165,137|**OF FINANCIAL ACTIVITIES**
**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
237,319
34,611
271,930
7,885
-
7,885
52
-
52
3,475
-
3,475
248,731
34,611
283,342
7,606
-
7,606
259,696
10,635
270,331
13,559
-
13,559
280,861
10,635
291,496
(32,130)
23,976
(8,154)
23,992
(23,992)
-
(8,138)
(16)
(8,154)
1,143,321
21,816
1,165,137|
|---|---|---|---|---|
|||248,731|34,611||
|||7,606
259,696
13,559|-
10,635
-||
|||280,861|10,635||
|||(32,130)
23,992|23,976
(23,992)||
|||(8,138)
1,143,321|(16)
21,816||
|||1,135,183|21,800|1,156,983|
33
## **CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
## **8 TAXATION**
As a charity, Cornerstone Church Swansea Trust is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable object. No tax charges have arisen in the Charity.
## **9 TANGIBLE FIXED ASSETS**
|**Cost / Valuation**
At 1 February 2020
Additions
At 31 January 2021
**DEPRECIATION**
At 1 February 2020
Charge for year
At 31 January 2021
**NET BOOK VALUE**
At 31 January 2021
At 31 January 2020|**Freehold**
**Property**
**_£_**
1,090,313
-
1,090,313
130,685
21,806
152,491
937,822
959,628|**Leasehold**
**Property**
**_£_**
219,800
-
219,800
46,448
4,352
50,800
169,000
173,352|**Motor**
**Vehicles**
**£**
13,380
-
13,380
12,815
141
12,956
424
565|**Furniture &**
**Equipment**
**£**
87,544
87,544
66,508
5,259
71,767
15,777
21,036|**Totals**
**£**
1,411,037
-|
|---|---|---|---|---|---|
||||||1,411,037|
||||||256,456
31,558|
||||||288,014|
||||||1,123,023|
||||||1,154,581|
The leasehold property was valued at £195,000 with vacant possession by external valuers, Clee Tomkinson Francis, at 23 June 2015, on an open market basis, in acccordance with RICS Appraisal and Valuation Standards.
The property purchased at Neath Road Morriston for £650,000 in October 2012 is a freehold property.
34
## **CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
|**10 DEBTORS: amount falling due within**
**one year**
Other debtor
Tax Recoverable
Prepayments
**11 CREDITORS: amounts falling**
**due within one year**
Bank loan
Trade Creditors
Tax and Social Security
Credit Card
Other Creditors
Accruals|**2021**
**£**
923
30,899
2,619
34,441
**2021**
**£**
20,266
971
2,533
3,407
6,065
8,203
41,445|**2020**
**£**
214
12,530
3,727|
|---|---|---|
|||16,471|
|||**2020**
**£**
18,666
668
2,954
459
6,245
7,450|
|||36,442|
Included in other creditors is a balance of £6,425 (2020 £6,425) owed to Cymru Leadership Trust, a charity which A.Day, J.T.Pece and R.P.Bowen are trustees.
|**12 CREDITORS: amounts falling**
**due after one year**
Bank loans - 1 - 2 years
Bank loans - 2 - 5 years
Bank loans - > 5 years|**2021**
**£**
20,266
60,798
9,483
90,547|**2020**
**£**
18,966
56,898
36,340|
|---|---|---|
|||112,204|
The charitable company's lenders Stewardship has a first legal charge over the land on the east side of Neath Road, Morriston.
35
## **CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
## **13 MOVEMENT IN FUNDS**
|**General**
**Designated**
**Restricted**
**TOTAL FUNDS**|**At**
**1.2.2020**
**£**
8,970
1,126,213
21,800|**Net**
**movement **
**in funds**
**£**
(7,352)
(208)
43,089|**Transfer**
**between**
**funds**
**£**
42,592
578
(43,170)|**At**
**31.1.2021**
**£**
44,210
1,126,583
21,719|
|---|---|---|---|---|
||1,156,983|35,529|-|1,192,512|
Detailed net movement in funds are included in note 14.
## **COMPARATIVE FOR MOVEMENT IN FUNDS**
|**General**
**Designated**
**Restricted**
**TOTAL FUNDS**|**At**
**1.2.2019**
**£**
9,550
1,133,771
21,816|**Net**
**movement**
**in funds**
**£**
(32,717)
587
23,976|**Transfer**
**between**
**funds**
**£**
32,137
(8,145)
(23,992)|**At**
**31.1.2020**
**£**
8,970
1,126,213
21,800|
|---|---|---|---|---|
||1,165,137|(8,154)|-|1,156,983|
Comparative net movement in funds included in above are as follows;
|**General**
**Designated**
**Restricted**|**incoming**
**resources**
**£**
247,561
1,170
34,611|**resources**
**expended**
**£**
(280,278)
(583)
(10,635)|**movement**
**in funds**
**£**
(32,717)
587
23,976|
|---|---|---|---|
||283,342|(291,496)|(8,154)|
A current 12 months and prior year 12 months combined position is as follows
|**General**
**Designated**
**Restricted**
**TOTAL FUNDS**|**At**
**1.2.2019**
**£**
9,550
1,133,771
21,816|**Net**
**movement**
**in funds**
**£**
(40,069)
379
67,065|**Transfer**
**between**
**funds**
**£**
74,729
(7,567)
(67,162)|**At**
**31.1.2021**
**£**
44,210
1,126,583
21,719|
|---|---|---|---|---|
||1,165,137|27,375|-|1,192,512|
36
**CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
|**14 RESTRICTED FUNDS**
**Brought**
**Forward**
**£**
**Restricted Revenue**
Building
12,645
Refurbishment/running costs
Fundraising Chairs
to Bethal Church
-
Café refurbishment
/ Café funds
8,833
Stewardship Mortgage Gift
-
**Restricted Capital**
GAP Capital Fund
322
21,800
**UNRESTRICTED FUNDS**
**Designated**
Church Future Running
Costs
68,000
Café refurbishment/costs
30,000
Planned strategic spend
-
Community Project Funds
3,849
Reach project
976
Capital Asset Spend
1,023,388
1,126,213
**General Funds**
8,970
1,135,183|**Income**
**£**
-
-
18,820
28,910
-|**Expenditure**
**£**
-
-
(4,560)
(81)|**Transfer**
**Between**
**Reserves**
**£**
-
(18,820)
(24,350)
-|**Carried**
**Forward**
**£**
12,645
-
8,833
-
241|
|---|---|---|---|---|
||47,730|(4,641)|(43,170)|21,719|
||-
-
-
72
-
-|-
-
-
(280)
-
-|12,000
(30,000)
30,000
-
-
(11,422)|80,000
-
30,000
3,641
976
1,011,966|
||72
251,746|(280)
(259,098)|578
42,592|1,126,583
44,210|
||251,818|(259,378)|43,170|1,170,793|
The Café funds of £18,820 were raised for the VAT repayment on the café but due to time restrictions, the repayment is no longer required. Therefore, the donors have agreed the funds can be transferred to general funds and may be used towards ongoing phases of development at Venue 2 and community work among other things.
The designated Church future running costs represents thirteen weeks of future running costs for the Church.
The balance of the designated Capital Asset Fund has been set up in line with SORP 2019 to represent the value of reserves spent on tangible fixed assets.
The Reach and Community Project funds are to be used to finance future project costs.
The restricted Church Building Refurbishment Fund is funds donated solely for the purpose of the refurbishment and any associated costs of a new property.
37
**CORNERSTONE CHURCH SWANSEA**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
## **14 RESTRICTED FUNDS continued**
The GAP Capital Fund are grants received towards the purchase of equipment and are released in line with the depreciation rate of the assets the grant is related to.
Planned strategic spend reserve represents funds to be able to meet the strategic plan in the medium term.
## **15 RECONCILIATION OF MOVEMENT IN FUNDS**
|**RECONCILIATION OF MOVEMENT IN FUNDS**||
|---|---|
|Opening funds
Net Incoming Resources
Closing Funds|**£**
1,156,983
35,529|
||1,192,512|
## **16 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Tangible Fixed Assets
Current Assets
Current Liabilities
Longterm Liabilities|**Restricted**
**Funds**
**£**
241
21,478
-
-|**Designated**
**Funds**
**£**
1,011,966
114,617
-
-|**Unrestricted**
**General**
**Funds**
**£**
110,816
65,385
(41,445)
(90,547)|**Total**
**Funds**
**£**
1,123,023
201,481
(41,445)
(90,547)|
|---|---|---|---|---|
||21,719|1,126,583|44,210|1,192,512|
## **17 RELATED PARTY DISCLOSURES**
A donation of £23,000 (2020 £23,000 ) has been made to Cymru Leadership Trust during the year, a charitable Trust of which A.Day, J.T.Pece and R.P.Bowen are trustees.
Also trustees made donations to the charity amounting to £19,374 (2020 £18,394) and other key management made donations of £12,292 (2020 £19,400) for the year ended 31st January 2021.
## **18 FINANCIAL COMMITMENTS**
Financial commitments under non cancellable operating leases will result in the following annual payments in respect of rent on the charity shop:
|Total capital commitment over the life of the lease;
Penlan building lease
Charity shop lease|**2021**
**2020**
£
£
1,950
2,000
-
1,375
1,950
3,375
**LAND & BUILDINGS**|**2021**
**2020**
£
£
1,950
2,000
-
1,375
1,950
3,375
**LAND & BUILDINGS**|
|---|---|---|
|||3,375|
38
**CORNERSTONE CHURCH SWANSEA**
Appendix I
## **INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
|**INCOME**
Regular Giving, Offerings & Other Donations
Stewardship Mortgage Gift
Property Offerings
Fundraising Chairs to Bethal Church
Miscellaneous Income
Charity shop income
Rental Income
Bank Interest
Little Rascals
Foodshare income
**CHURCH & COMMUNITY WORK**
Salaries & NI
Travel, Subsistence & Overseas Ministry Trips
Training & Conferences
Hospitality & Catering
Donations and Gifts
Youth & Children's Work
Community project spend
Special Events
Ministry gifts
Gift of chairs to Bethel Church
Gift to CLT
Sundries
Foodshare expenses
Student expenses|**£**
**£**
**£**
**£**
243,746
237,319
28,910
29,275
18,820
91
-
5,245
689
130
1,939
7,885
690
2,175
42
52
72
1,170
4,640
-
299,548
283,342
131,637
133,344
5,951
11,715
234
1,165
618
2,887
-
550
317
1,410
280
583
584
2,652
2,304
2,904
-
5,250
23,000
23,000
41
175
3,608
-
998
2,129
169,572
187,764
**2021**
**2020**|**£**
**£**
**£**
**£**
243,746
237,319
28,910
29,275
18,820
91
-
5,245
689
130
1,939
7,885
690
2,175
42
52
72
1,170
4,640
-
299,548
283,342
131,637
133,344
5,951
11,715
234
1,165
618
2,887
-
550
317
1,410
280
583
584
2,652
2,304
2,904
-
5,250
23,000
23,000
41
175
3,608
-
998
2,129
169,572
187,764
**2021**
**2020**|
|---|---|---|
|||283,342|
||||
||169,572||
**CORNERSTONE CHURCH SWANSEA**
Appendix I Cont'd
## **INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 JANUARY 2021**
|**ESTABLISHMENT**
**£**
**£**
Rent & Rates
795
Insurance
4,522
Heating & Lighting
6,936
Maintenance & Repair
8,577
Property improvements
-
Cleaning
2,843
Charity shop
713
24,386
**MANAGEMENT & ADMINISTRATION**
Printing, Postage, Stationery
324
IT Costs
710
Advertising
412
Telephone
3,874
Book, Materials
333
Media Production and Equipment
6,905
Licences, Subscriptions
7,151
Bank and credit card Charges
381
Mortgage interest & charges
4,560
Accountancy Fee
5,883
Legal & Professional Fees
7,970
38,503
Administrative Expenses before depreciation
232,461
**SURPLUS FOR THE YEAR PRIOR TO DEPRECIATION**
67,087
Depreciation
(31,558)
**RETAINED SURPLUS/(DEFICIT) FOR THE YEAR**
35,529
Impairment
**2021**|**£**
**£**
941
4,620
11,707
8,383
601
3,602
7,606
37,460
1,964
340
354
4,746
320
633
5,911
709
5,278
4,706
8,853
33,814
259,038
24,304
(32,458)
(8,154)
**2020**|**£**
**£**
941
4,620
11,707
8,383
601
3,602
7,606
37,460
1,964
340
354
4,746
320
633
5,911
709
5,278
4,706
8,853
33,814
259,038
24,304
(32,458)
(8,154)
**2020**|
|---|---|---|
||37,460||
||1,964
340
354
4,746
320
633
5,911
709
5,278
4,706
8,853||
||33,814||
||||
|||24,304
(32,458)|
|||(8,154)|
||||