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2023-01-31-accounts

CORNERSTONE CHURCH SWANSEA (A COMPANY LTD BY GUARANTEE)

REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023

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 2023

CONTENTS

Page
Trustees Report 3 -19
Trustees, Officers and Professional Advisers 19
Independent Examiners Report 20
Statement of Financial Activities 21
Balance Sheet 22-23
Notes to the Financial Statements
 24 – 35

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

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 2023. 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 2023

Organisational Structure - Cornerstone Community Project/ Office

Director Sarah Richards Centre Manager Adam Day Community Projects Team Leader Matt Richards / Church worker Project Worker Beth Elis Youth Team Leaders: Matt Richards. Bethan Sharpe and Ffion Bowen (volunteers) Kid’s Club Team Leader Beth Elis Little Rascals Team Leader Suzanne Brown (volunteer) Finance Administrator Paul Burnell Administrator Tammy Pece (volunteer)

The Director has 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 both Centres 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 2023

Organisational Structure - Cornerstone Church

Senior Pastor: Sarah Richards Leadership Team Elders: Adam Day and Suzanne Brown Leadership Team Matt Richards and Jenny Dwamena Apostolic Oversight: Julian Richards Small Group Leaders: Adam and Sian Day Simon and Suzanne Brown Mike and Rachel Leach Surinder and Jason Williams (until February 22) Andrew and Angela Harvey (until February 22) Jez and Helen Fage Beth and Sion Elis Sam and Jenny Dwamena Sam Day and Bethan Day Russo and Chloe Swart Zoe and Ben Rattley Ffion Bowen, Fenia Patricia Student/ Church Worker: Chloe Richards Support Student Worker: Bethan Day (Sharpe) Worship leaders: Beth Elis and Zoe Rattley

The Senior Pastor 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 Pastor and Eldership Team. Church Members are encouraged to participate fully in the life of the Church.

The Trustees fulfil their legal obligations on behalf of the Charity providing legal governance and administrative oversight, 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 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.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Related Parties - Contacts and Connections

We co-operate and work with several charities, organisations and forums:

Matt has supported the Swansea Super Teams Football League for Primary aged children with additional learning needs, referring matches and running football-based fun activity sessions.

Matt, Beth and Bethan ran lunchtime Alpha clubs in Bishop Vaughan and Dylan Thomas Secondary Schools. They also hosted GSUS LIVE, partnering with Counties Network, to provide a week of interactive R.E lessons to both schools. Matt also helped host GSUS LIVE in Cefn Hengoed Secondary School.

Matt and Bethan returned to Birchgrove Comprehensive School’s STF where they gave lessons on the Christmas Story & the theme of identity with years 7,8, 9 and 10.

Matt Richards is a governor at Gwyrosydd Primary School.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

For over 31 years, Cornerstone has been serving the local community and the wider church in Wales. We have accomplished this through our community projects and schools work, and, through our vibrant and thriving multigenerational church. This year has been busy and fruitful. The work of Cornerstone continues through Cornerstone Community Project and Cornerstone Church. We have around 95 volunteers who help make this work possible.

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 work of Cornerstone Church and Cornerstone Community Projects fulfil the Objects of the Charity contained in the Company’s memorandum of association:

The main objectives and activities for the year for our Community Projects continue to focus on tackling social exclusion within the City and County of Swansea through the various community projects we have established and schools work as well as supporting other projects locally.

The strategies employed to assist the charity to meet these objectives include the following:

Achievements and Performance

Annual reports on projects that are part of Cornerstone Community Projects 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 2023

Achievements and Performance (Cont’d)

Cornerstone Community Projects

ASSEMBLIES

After a final few online assemblies at the start of the year, Matt, Beth & Bethan were able to restart in-person assemblies - delivering a combination of games, quizzes, songs and Biblestories to support local primary schools. During term-time the assemblies are delivered fortnightly in Blaenymaes, Brynhyfred, Clwyd, Portmead and, from September, Penllergaer primary schools. In addition, Gwyroysdd and Gors Primary schools have received visits this year.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Achievements and Performance (Cont’d)

BIRCHGROVE COMPREHENSIVE STF & SUPER TEAMS FOOTBALL LEAGUE

In February Matt & Beth visited Birchgrove Comprehensive School’s Specialist Teaching Facility (STF) to deliver activity-filled lessons with years 7-9 and year 10 classes. They tailored a lesson to support the topics the classes had been exploring that term, including the question of ‘Who Am I?’ and themes from the book StoneCold. The pupils especially loved comparing their fingerprints and creating their own identity cards.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Achievements and Performance (Cont’d)

Matt returned to Birchgrove in December with a lesson on the Christmas story. The pupils discovered the story for themselves through a game of ‘Guess the Gift’ and then recreated it comic-book style for their files.

Throughout the year Matthew has supported the Swansea Super Teams Football League. Run by STF teacher Ben Brown from Clwyd Primary School, the League meets termly and has over 200 children with Additional Learning needs from across Swansea taking part! Matthew has been able to support Ben by refereeing matches and hosting fun football activities.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Achievements and Performance (Cont’d)

GSUS LIVE & YOUTH ALPHA

In April and May we hosted two week of GSUS Live in Bishop Vaughan and Dylan Thomas Secondary Schools. GSUS Live is an interactive R.E lesson that explores the themes of fear, rejection & forgiveness. During the lesson pupils work on a tablet to help a character who is experiencing one of these issues. Pupils draw on stories from the life of Jesus and other historical characters to guide their responses, before each lesson ends with a Q&A session. These are always a highlight, as pupils express their thoughts and home in on issues and questions important to them.

Matt, Beth & Bethan hosted the week in Bishop Vaughan, with Reverend Dr Jonathon Wright from St Peter’s Church Cockett joining them in Dylan Thomas. Across the two schools the lessons served over 750 pupils.

Following GSUS Live, the team hosted a Youth Alpha lunchtime club in both schools. Youth Alpha is a video series which explores life’s ‘Big Questions’ of life, faith and meaning.

Each week Matt, Beth & Bethan prepare quizzes, games and prizes to compliment the themes of the videos and kick-start discussion. In Bishop Vaughan Alpha served over 40 pupils during the summer and proceeding Autumn Term. In Dylan Thomas the clubs served 12 pupils for 8- weeks during the summer term.

One of the highlights of Youth Alpha this year was the end of term ‘Summer Youth Night Takeaway’ & ‘Christmas Extravaganza’ - two interactive games-show quiz nights with snacks and prizes hosted at Cornerstone Church Centre with Cornerstone’s Youth.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Achievements and Performance (Cont’d)

YOUTH & KID’S CLUB

Cornerstone church’s young people age 11-16 meet together on Thursday nights for ‘Youth’. Alongside games, snacks and laughter, Youth provides a supportive space for the young people to explore the Christian faith and topics relevant to their age group, such as handling exam stress and other peer pressures. The young people particularly love the Youth trips throughout the year, whether for social time together or to join in with other Church Youth Group events. This year we’ve made trips to Barry Island for a beach day, Cardiff for Worship Nights with The Message Wales and joined City Church Swansea for a Christmas Ball! Youth is hosted by Beth, Matt, Ffion and Sam. This year Youth has served 20 young people.

Kid’s Club is a fun-filled after school club for children age 7-11 in Cornerstone Church. Run by Beth, and Tom & Naomi on a Thursday afternoon 4-5pm, with games, Bible stories, snacks and crafts. This year Kid’s Club has served 9 children.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Achievements and Performance (Cont’d)

LITTLE RASCALS

Little Rascals is a play group for pre-school children and their carers, held every Tuesday during term-time at our Penlan building. It is run by volunteers from Cornerstone. Here the children enjoy playing with a variety of toys that inspire their imagination, as well as engaging in a more structured story time, craft and songs. This provides them with opportunities to interact with others of the same age, equipping the children with much needed social skills for the future. The project also provides a space for the adults to connect with others in the same stage of life with coffee and a chat.

23 children came during the year and we played, talked and sang songs. We found that after the pandemic there has been a shift in provision locally and interest from parents/ carers towards more of an emphasis on sensory experiences for babies and toddlers. So we are looking at adapting what we do in response and will trial a shorter more interactive sensory and messy playtime with a view to launching a new parent and toddler group ‘Stay & Play’ in September 2023.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Cornerstone Church’s 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.

Achievements and performance

During 2022 we continued to meet our objectives, to serve the local church and the local community in Swansea, and serving the wider church across Wales to grow, develop and reach their communities too.

In the first part of the year, we were still negotiating Covid restrictions. Up until Easter we still had to run a booking system for various events and services, then finally from May 2022 all Covid restrictions were dropped.

We ran our usual activities of local church life during the year, including youth club, baptisms, ladies’ nights, men’s nights & football, Sunday school, student activities and Sunday services, plus our schools’ work and community projects.

Our small group communities continued to thrive; designed for pastoral care, discipleship and building strong relationships across the church. It was another year of church growth and seeing new members join, and a continuation of seeing people healed from various sicknesses and conditions. Our livestreaming of Sundays and special events such as weddings and funerals continued, along with training the various teams and resourcing with new equipment. It was great to have full use of venue2 again after Covid, enjoying using our café space every month when we drew all our small groups together, and for special events and conferences. It proved to be an excellent resource and a great space to gather. We ran Alpha throughout the year.

We met as a wider leadership team monthly for training and envisioning. It was a positive year for the church, with a fresh anticipation for gathering together after the Covid period, and new people coming along in person having watched services online.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Achievements and Performance (Cont’d)

SOME 2022 HIGHLIGHTS

On Sunday 5th June we celebrated the Queen’s Platinum Jubilee with the rest of the U.K. hosting a “Big Sunday Lunch” at v2. This involved an indoor picnic in the café and breakout rooms, games and activities for the children, bouncy castle, ice-cream van and a Jubilee cake stall. The whole venue was full and everyone enjoyed.

We served Wales with two conferences for New Wine Cymru. A national Leader’s Conference in June serving leaders and their teams from all over Wales. Then in October we ran a oneday conference, Women Who Lead, for women leaders and their teams. Both were well attended and Cornerstone volunteers did a great job of hosting both events.

Other conferences in the year included Sarah Richards & Chloe Swart travelling to Stockholm to teach in the New Wine Sweden Leader’s Conference. Plus, Chloe contributed to the HTB Conference in London in May that was an online conference livestreamed all over the world, praying for healing.

We ran a ‘Made to Last,’ preparation for marriage course in the Café area at venue2 during February and March. A film series recorded by Sarah & Julian Richards for couples approaching marriage or those wanting a refresher. It was well attended and appreciated by all.

On Sat 9 July we ran an online safeguarding training for all Cornerstone children and youth workers simultaneously at both our buildings, Penlan and venue2. As a church we are deeply committed to safe practice for all the children, youth and vulnerable adults in our care. The event also provided some fun time to hang out as children’s workers.

In both July and September we held baby dedications on a Sunday morning for parents and their guests. We were delighted to dedicate six more babies as the church continues to grow with young families. Also, in July we celebrated the wedding of Sam Day & Beth Sharpe, our student worker at v2. It was a day of joy and venue2 was full.

In October, we ran a men’s weekend away, at St.Madoc camp, situated at the beautiful Llanmadoc beach, Gower. We also hosted a ladies weekend away at the Towers Hotel & Spa in Jersey Marine. Both events provided time for relationship and friendship as well as worship and teaching. Events like this continue to strengthen the community of the church.

During December we ran many guest activities to draw together community contacts from the year and to host new friends. Events included hosting a ladies Christmas wreath making at our Penlan centre, for the first time, with mulled wine & mince pies. This event was packed with many guests enjoying the night and their first visit to Cornerstone.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Achievements and Performance (Cont’d)

We held a Christmas party at the Towers for the church and their guests, enjoying a 2-course dinner & silent disco! We served the local community with two Christmas services. An evening service with a cava & canapés reception for guests and local councillors and contacts, and on Sun 18 Dec a family service for all the family.

Throughout the year we continued to support our two local Foodshares in Penlan and Blaenymaes. At Christmas once again church members created Christmas hampers, and we also donated gift bags of a total Christmas roast dinner ingredients that were delivered to Blaenymaes Foodshare.

In January the first Sunday fell on New Year’s Day so we kicked off 2023 with cheese toasties in the café at 3pm and children’s games and activities in the main hall, followed by our first service of the year.

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Cornerstone 2022
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STAFF & VOLUNTEERS

Once again, the church ran with the commitment and enthusiasm of so many volunteers. As a leadership team, we are deeply grateful for the unwavering commitment and sacrifice of all our staff and volunteers who make leading a healthy thriving church possible. Thank you for your continued passion, hard work and devotion.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Financial Review

The charity’s balance sheet shows a satisfactory position with Unrestricted Funds totalling £1,163,342 and Restricted Funds totalling £28,285. Incoming resources during the year were £275,759 of which £29,375 was restricted. The resources expended during the year totalled £ 300,485 of which £285,182 was spent on direct charitable objectives, £15,303 was spent on support costs. This has resulted in net outgoing resources of £24,726.

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 and offerings and other donations were steady. As expected we used some of our Planned Strategic Spend reserves in order to help fulfill our strategic plan in the medium term. This year we continued to raise money for Foodshare.

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 £994,487, this represent the value of reserves spent on tangible fixed assets. The Planned Strategic Spend is £50,000 and represents funds to be able to meet the strategic plan in the medium term as well as to help absorb the impact of escalating utility bills. Planned Capital Project reserves represent funds to be used to meet future capital spend. Community Project Funds of £3,527 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 £89,000. 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. This year we are at this reserve level. This policy is kept under regular review.

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Plans for Future Periods

Cornerstone will:

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CORNERSTONE CHURCH SWANSEA REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

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) (retired 13/07/23) Adam Day Andrew Harvey Suzanne Brown Hannah Jones

Chief Executive Officer: Sarah Richards

Accountants: Bevan Buckland LPP Chartered Accountants Ground Floor Cardigan House Llansamlet Swansea SA7 9LZ

Bankers: Lloyds Oxford Street Swansea SA1 3AF

Solicitors: Mayo Wynne Baxter 20 Gilredge Road Eastbourne East Sussex BN21 4RP

Approved by order of the board of trustees on ………………………………………. and signed on its behalf by:

……………………………………………

Mrs J T Pece

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INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF CORNERSTONE CHURCH SWANSEA

FOR THE YEAR ENDED 31 JANUARY 2023

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 2023.

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:

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, Chartered Ground Floor, Cardigan House Castle Court, Swansea Enterprise Swansea, SA7 9LA

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CORNERSTONE CHURCH SWANSEA

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating the Income and Expenditure Account)

FOR THE YEAR ENDED 31 JANUARY 2023

NOTE
Incoming Resources
Incoming resources from
Generated funds:
Voluntary income
Regular Givings and
Other Offerings
Investment income:
Investment income:
3
Incoming resources from
charitable activities:
Charitable
Total Incoming Resources
Resources Expended
Charitable activities
Support costs
Total Resources Expended
4
Net incoming/ (Outgoing)
resources
Transfer Between Funds
Funds Brought forward
Funds Carried forward		 Unrestricted
Funds
£
235,979
715
9,690		 Restricted
Funds
£
29,375
-
-		 Total
Funds
2023
£
265,354
715
9,690		 Total
Funds
2022
£
302,560
65
6,589
246,384 29,375 275,759 309,214
281,942
15,303		 3,240
-		 285,182
15,303		 272,440
12,933
297,245 3,240 300,485 285,373
(50,861)
26,180		 26,135
(26,180)		 (24,726)
-		 23,841
-
(24,681)
1,188,023		 (45)
28,330		 (24,726)
1,216,353		 23,841
1,192,512
1,163,342 28,285 1,191,627 1,216,353

The results for the year derive from continuing activities and there are no gains or losses other than those shown above.

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CORNERSTONE CHURCH SWANSEA

BALANCE SHEET

FOR THE YEAR ENDED 31 JANUARY 2023

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		 £
£
£
£
1,063,576
1,092,815
20,792
18,233
192,953
212,697
213,745
230,930
(40,431)
(36,948)
173,314
193,982
(45,263)
(70,444)
1,191,627
1,216,353
1,163,342
1,188,023
28,285
28,330
1,191,627
1,216,353
2023
2022		 £
£
£
£
1,063,576
1,092,815
20,792
18,233
192,953
212,697
213,745
230,930
(40,431)
(36,948)
173,314
193,982
(45,263)
(70,444)
1,191,627
1,216,353
1,163,342
1,188,023
28,285
28,330
1,191,627
1,216,353
2023
2022
213,745
(40,431)
1,216,353
1,188,023
28,330
1,216,353

For the year ended 31 January 2023 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

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CORNERSTONE CHURCH SWANSEA

BALANCE SHEET CONTINUED

FOR THE YEAR ENDED 31 JANUARY 2023

ii) Preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at 31st January 2023 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........................................ Mrs J T Pece

DATE...............................................

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CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

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:

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.

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CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

(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 over the expected useful lives using the following rate:-

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

25

CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

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.

26

CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

2
NET (OUTGOING)/INCOMING RESOURCES FOR YEAR
This is stated after charging
Depreciation of owned fixed assets
Accountancy fees
3
INTEREST RECEIVABLE
Bank Interest		 2023
£
29,239
5,232
2023
£
715		 2022
£
30,208
4,333
2022
£
65

27

4
28		 Total Resources Expended
Basis of
allocation
Costs Directly Allocated To Activities
Staff
Direct
Premises
Direct
Repairs, Renewals & improvements
Direct
Activities, supplies
& Equipment
Direct
Postage, Advertising
IT & Telephone
Direct
Travel & Accommodation
Direct
Other Expenses
Direct
Legal & Professional Fees
Direct
Accountancy fee
Direct
Depreciation
Direct
Bank Charges & Interest
Direct
Church Outdoor Activities
Direct
Foodshare expenses
Direct
Total resources expended		 Cornerstone
Support
2023
2022
Church
Costs
TOTAL
TOTAL
£
£
£
£
153,575
-
153,575
145,603
24,021
-
24,021
21,864
11,048
-
11,048
8,278
2,486
-
2,486
8,725
6,841
-
6,841
8,097
9,495
-
9,495
6,205
41,692
-
41,692
35,808
-
10,071
10,071
8,600
-
5,232
5,232
4,333
29,239
-
29,239
30,208
3,442
-
3,442
4,547
93
-
93
-
3,250
-
3,250
3,105
285,182
15,303
300,485
285,373
CORNERSTONE CHURCH SWANSEA
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARD ENDED 31 JANUARY 2023

4 Total Resources Expended

CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

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.		 2023
£
116,364		 2022
£
115,840

6 EMPLOYEE INFORMATION

Staff Costs
Total Emoluments
Social Security
Pension costs		 2023
£
136,603
7,615
9,357
153,575		 2022
£
128,650
7,775
9,178
145,603

The average number of employees during the year, calculated on the basis of full time equivalents.

equivalents.
2023 2022
Church 5 5

29

CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

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
£
£
£
265,160
37,400
302,560
-
-
-
65
-
65
6,589
-
6,589
271,814
37,400
309,214
-
-
-
265,181
7,259
272,440
12,933
-
12,933
278,114
7,259
285,373
(6,300)
30,141
23,841
23,530
(23,530)
-
17,230
6,611
23,841
1,170,793
21,719
1,192,512		 OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
265,160
37,400
302,560
-
-
-
65
-
65
6,589
-
6,589
271,814
37,400
309,214
-
-
-
265,181
7,259
272,440
12,933
-
12,933
278,114
7,259
285,373
(6,300)
30,141
23,841
23,530
(23,530)
-
17,230
6,611
23,841
1,170,793
21,719
1,192,512		 OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
Total
Funds
Funds
Funds
£
£
£
265,160
37,400
302,560
-
-
-
65
-
65
6,589
-
6,589
271,814
37,400
309,214
-
-
-
265,181
7,259
272,440
12,933
-
12,933
278,114
7,259
285,373
(6,300)
30,141
23,841
23,530
(23,530)
-
17,230
6,611
23,841
1,170,793
21,719
1,192,512
271,814 37,400
-
265,181
12,933		 -
7,259
-
278,114 7,259
(6,300)
23,530		 30,141
(23,530)
17,230
1,170,793		 6,611
21,719
1,188,023 28,330 1,216,353

30

CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

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 2022
Additions
At 31 January 2023
DEPRECIATION
At 1 February 2022
Charge for year
At 31 January 2023
NET BOOK VALUE
At 31 January 2023
At 31 January 2022		 Freehold
Property
£
1,090,313
-
1,090,313
174,297
21,806
196,103
894,210
916,016		 Leasehold
Property
£
219,800
-
219,800
55,152
4,396
59,548
160,252
164,648		 Motor
Vehicles
£
13,380
-
13,380
13,062
79
13,141
239
318		 Furniture &
Equipment
£
87,544
87,544
75,711
2,958
78,669
8,875
11,833		 Totals
£
1,411,037
-
1,411,037
318,222
29,239
347,461
1,063,576
1,092,815

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.

31

CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

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		 2023
£
4,380
13,263
3,149
20,792
2023
£
23,687
841
2,359
606
5,990
6,948
40,431		 2022
£
600
15,450
2,183
18,233
2022
£
20,266
727
3,065
335
5,990
6,565
36,948

Included in other creditors is a balance of £5,990 (2022 £5,990) 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		 2023
£
23,687
21,576
-
45,263		 2022
£
20,266
50,178
-
70,444

The charitable company's lenders Stewardship has a first legal charge over the land on the east side of Neath Road, Morriston.

32

CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

13 MOVEMENT IN FUNDS

General
Designated
Restricted
TOTAL FUNDS		 At
1.2.2022
£
16,520
1,171,503
28,330		 Net
movement
in funds
£
(50,782)
(79)
26,135		 Transfer
between
funds
£
49,614
(23,434)
(26,180)		 At
31.1.2023
£
15,352
1,147,990
28,285
1,216,353 (24,726) - 1,191,627

Detailed net movement in funds are included in note 14.

COMPARATIVE FOR MOVEMENT IN FUNDS

General
Designated
Restricted
TOTAL FUNDS		 At
1.2.2021
£
44,210
1,126,583
21,719		 Net
movement
in funds
£
(6,265)
(35)
30,141		 Transfer
between
funds
£
(21,425)
44,955
(23,530)		 At
31.1.2022
£
16,520
1,171,503
28,330
1,192,512 23,841 - 1,216,353

Comparative net movement in funds included in above are as follows;

General
Designated
Restricted		 incoming
resources
£
271,814
-
37,400		 resources
expended
£
(278,079)
(35)
(7,259)		 movement
in funds
£
(6,265)
(35)
30,141
309,214 (285,373) 23,841

A current 12 months and prior year 12 months combined position is as follows

General
Designated
Restricted
TOTAL FUNDS		 At
1.2.2021
£
44,210
1,126,583
21,719		 Net
movement
in funds
£
(57,047)
(114)
56,276		 Transfer
between
funds
£
28,189
21,521
(49,710)		 At
31.1.2023
£
15,352
1,147,990
28,285
1,192,512 (885) - 1,191,627

33

CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

14 RESTRICTED FUNDS
Brought
Forward
£
Restricted Revenue
Building
12,645
Refurbishment/running costs
Café refurbishment
/ Café funds
8,833
Stewardship Mortgage Gift
-
Donation from CAF
6,671
Restricted Capital
GAP Capital Fund
181
28,330
UNRESTRICTED FUNDS
Designated
Church Future Running
Costs
85,000
Café refurbishment/costs
-
Planned strategic spend
70,000
Community Project Funds
3,606
Reach project
976
Planned capital project
10,000
Capital Asset Spend
1,001,921
1,171,503
General Funds
16,520
1,188,023		 Income
£
-
-
29,375
-
-		 Expenditure
£
-
-
(3,195)
-
(45)		 Transfer
Between
Reserves
£
-
-
(26,180)
-
-		 Carried
Forward
£
12,645
8,833
-
6,671
136
29,375 (3,240) (26,180) 28,285
-
-
-
129
-
-
-		 -
-
-
(208)
-
-
-		 4,000
(20,000)
(7,434)		 89,000
-
50,000
3,527
976
10,000
994,487
129
246,255		 (208)
(297,037)		 (23,434)
49,614		 1,147,990
15,352
246,384 (297,245) 26,180 1,163,342

The designated Church future running costs represents seventeen 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.

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.

34

CORNERSTONE CHURCH SWANSEA

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

14 RESTRICTED FUNDS continued

Planned strategic spend reserve represents funds to be able to meet the strategic plan in the medium term including to absorb the impact of escalating utility bills.

Planned capital project reserve represents funds to be able to meet future capital spend.

The Café funds are to be used in relation to a café .

The donation from CAF is for media production and equipment.

15 RECONCILIATION OF MOVEMENT IN FUNDS

Opening funds
Net Incoming Resources
Closing Funds		 £
1,216,353
(24,726)
1,191,627

16 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible Fixed Assets
Current Assets
Current Liabilities
Longterm Liabilities		 Restricted
Funds
£
136
28,149
-
-		 Designated
Funds
£
994,487
153,503
-
-		 Unrestricted
General
Funds
£
68,953
32,092
(40,431)
(45,263)		 Total
Funds
£
1,063,576
213,745
(40,431)
(45,263)
28,285 1,147,990 15,352 1,191,627

17 RELATED PARTY DISCLOSURES

A donation of £25,292 (2022 £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 £20,811 (2022 £21,167) and other key management made donations of £11,592 (2022 £12,041) for the year ended 31st January 2023.

18 FINANCIAL COMMITMENTS

Financial commitments under non cancellable operating leases will result in the following annual payments in respect of rent on the Penlan building:

Total capital commitment over the life of the lease;
Penlan building lease		 2023
2022
£
£
1,850
1,900
1,850
1,900
LAND & BUILDINGS		 2023
2022
£
£
1,850
1,900
1,850
1,900
LAND & BUILDINGS
1,900

35