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2020-12-31-accounts

Charity Registration No. 1126718

Company Registration No. 6738209 (England and Wales)

HOPE CHURCH ORPINGTON

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

HOPE CHURCH ORPINGTON

LEGAL AND ADMINISTRATIVE INFORMATION

Directors Tony Hall
Barry Palmer
Matthew Bulpitt
Olayemi Shyllon
Gary Carvosso
Ruth Marchant
Sarah Palmer (Appointed 24 June 2021)
Ifey Njoku (Appointed 1 September
2021)
Esau Mapondo (Appointed 1 September
2021)
Secretary Barry Palmer
Charity number 1126718
Company number 6738209
Principal address The Goodmead Centre
36 Chislehurst Road
Orpington
Kent
BR6 0DG
Registered office The Goodmead Centre
36 Chislehurst Road
Orpington
Kent
BR6 0DG
Independent examiner Nigel Hewson FCA DChA
Hewsons
Chartered Accountants
80 Woodhurst Avenue
Orpington
Kent
BR5 1AT
Bankers Metro Bank
72-76 High Street
Bromley
BR1 1EG

HOPE CHURCH ORPINGTON

CONTENTS

Page
Directors' report 1 - 5
Independent examiner's report 7
Statement of financial activities 8
Balance sheet 9 - 10
Statement of cash flows 11
Notes to the financial statements 12 - 29

HOPE CHURCH ORPINGTON

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The Directors present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and articles of association , the Companies Act 2006 and "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)".

Objectives and activities

The objects of the charity are the advancement of the Christian faith and the relief of hardship. There have been no changes in the charitable objects of the church during the year. In furtherance of these objects the charity operates churches in five locations in the local area offering a range of activities and pastoral support to both church members and the wider community.

When considering the aims and objectives in general and those that were to apply for the year, the Elders and the other Directors have considered the Commission's guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. During this year particular attention has been paid to the Government regulations and best practice surrounding the Covid-19 pandemic that has hampered activities during the year. As with many other churches we have had to adapt and change our activities at various times during the year to meet our obligations to staff, members and to the wider society.

Values statement

The church has a detailed values statement which can be summarised as follows:

We are an evangelical church being built upon apostolic and prophetic foundations to display and express the love and grace of God to the community around us committed to worship, prayer, evangelism, discipleship and building friendships that endorse family life where everyone can feel secure enough to grow.

Practices Adopted

These practices plus many other activities resulting from our aims and Vision Statement have continued throughout the year, with many members being involved in various types of mission work of one kind or another but subject to social distancing and travel restrictions. The use of social media to make contact has become part of the way the church does mission.

In addition it is our policy to alleviate distress and provide care when appropriate.

HOPE CHURCH ORPINGTON

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Hope Church and the Local Community

Hope Church Orpington is a member of the Churches Together in Orpington, Bromley Common, West Wickham and regularly participates in church forums in Downham. We are also part of Transform Bromley Borough and actively participate in joint initiatives. Through our contacts and direct referrals we have been able to use funds that have been set aside to alleviate hardship caused by the Covid-19 pandemic and also to offer support and help from our staff and church members.

Part of the church's value statement is to "express the love and grace of God to the community". The Church recognises the need to serve the local community and is involved in many initiatives to achieve this; some examples that we operated between January 2020 and the outbreak of the Covid-19 pandemic, were as follows:

The church operates out of five locations within the London Boroughs of Bromley and Lewisham.

HOPE CHURCH ORPINGTON

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance

Given that the objects of the church are to advance the Christian Faith and relieve hardship the Directors are pleased with what has been achieved during the year under review. There has been continued expansion of the work of the church in spreading the Christian faith through the five congregations now in operation. Various courses have been run to encourage Christians in their faith, and to give opportunity to those wishing to explore the Christian faith. The Alpha course was run several times online, and the Vision and Values course was run frequently for new members to the church.

In addition, grants totalling £72,703 have been made to various organisations and individuals which are advancing the Christian faith or seeking to relieve hardship including individuals involved in those activities or to individuals who are facing hardship. (This does not include food distributed in kind from the Food Hub)

Financial review

The church's principal source of income is from voluntary donations. Reviewing our financial position for 2020:

We gave away 9% of our income from church activities, with a further 2.5% designated for making grants, and ended the year with a surplus of £144,823 (2019 deficit £21,607) on unrestricted funds (including designated funds).

Gifts to external organisations and individuals are considered by the Elders and approved by the Directors on the basis of need and fulfilment of the Charitable objectives. There is no upper or lower limit of support.

The reserves policy of the charity is to maintain the reserve of a minimum of two months’ to a maximum of twelve months’ expenditure, which would cover the employment needs for approximately 3 months and act as operating capital. Two month's unrestricted fund expenditure amounted to approximately £108,000 and unrestricted reserves on general fund, excluding designated funds, held as net current assets amounted to approximately £107,700.The directors continue to look for ways in which reserves may be strengthened although it would be possible to draw on designated fund balances if the need arose (see below).

The Directors have set aside designated funds from general funds for various purposes. The amounts set aside at the end of the year were £172,903.

Reserves which were restricted and not available for general purposes of the charity amounted to £54,978 Details of the purpose for which these funds were held are detailed in note 20 to the accounts.

Impact of coronavirus (COVID19) pandemic

The impact of COVID-19 in early 2020 and the subsequent lockdown by the United Kingdom Government has caused a huge impact on all aspects of life in the United Kingdom. Hope Church Orpington has not been spared as it has affected all aspects of church life and activities. However, the church is blessed to have a large percentage of attendees who contribute electronically, which has minimised the negative impact of lockdown of church gatherings. There has been a significant increase in regular income in 2020 and in fact a significant one off gift in excess of £80,000 meant that income to 31 May 2020 was considerably more than budgeted. The church building in Orpington has become a hub for food distribution in the area and the charity has received grants towards equipment and supplies to store and distribute frozen, chilled, fresh, canned and dried food goods to various food banks and churches for wider distribution to the needy in the Borough.

Reference and administrative information is provided on the page following the cover sheet.

The Elders are responsible for monitoring risks and a Risk Register is in place which is reviewed at both Elders and Directors meetings at least annually. All major insurable risks are subject to normal church and employers' insurance. The Elders and Directors of Hope Church Orpington believe that the most acute risks facing the organisation lie in the area of health and safety: either risks in the way that we use our buildings or risks because a building’s fabric is old and not up to modern standards.

HOPE CHURCH ORPINGTON

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

We have been doing and are continuing to do a significant amount of work in these areas by implementing a programme of repairs to our buildings, communication with staff, volunteers and church attendees, fire drills and liaison with third parties regarding security. With respect to church finances, we recognise that the church is always dependent on the continued generosity of church members and members of the public in support of the charity. Income (excluding food donated in kind) increased by 18% during the year with a notable increase in regular giving. The Directors are constantly monitoring cash flow and forward budget to ensure that the church can meet all its liabilities as they fall due. We do have a loan from Metro Bank which we used to purchase the Orpington Goodmead Centre. We see the loan as relatively low risk from the Bank’s perspective as it is 50% underwritten by guarantors from the church.

Plans for the future

During 2021 we recognise that the continuance of the pandemic is still shaping our civic lives and the work of the church. We will seek to remain flexible in the delivering of ministry and meeting the physical needs of the people of the Borough of Bromley and through our wider work with Regions Beyond into the UK and abroad. We will achieve this by

Structure, governance and management

The charity is a company limited by guarantee.

The Directors who served during the year were: Tony Hall Barry Palmer Matthew Bulpitt Olayemi Shyllon Gary Carvosso Ruth Marchant Sarah Palmer (Appointed 24 June 2021) Ifey Njoku (Appointed 1 September 2021) Esau Mapondo (Appointed 1 September 2021)

Directors are appointed and removed by a majority of E lders. E lders are appointed by existing Elders.

HOPE CHURCH ORPINGTON

DIRECTORS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Organisation and staffing of Hope Church - Hope Church Orpington is an orthodox, evangelical Protestant Christian church. The church is governed by seventeen Elders headed by a lead Elder who is employed by the Church. Seven of the Elders are employed by the Church. Two are full time and five are part time. There are also employed six further full time staff, four part time members of staff.

A significant number of volunteer members of the church lead, sustain and develop ministries and activities of the church. Their contribution is vital to the success of the charity.

Staffing needs are kept under regular review by the Elders and other Directors. The Elders, Directors and staff are all committed members of the church, and support the vision and values of the church. Hope Church has a structured approach to staff induction, supervision and annual review. Each employee has a written job description that reflects the scope of the role and responsibility they undertake. Their line manager is responsible for coordinating a planned induction at the beginning of their employment. Regular supervision, usually monthly, is given to all employees and interns.

Salaries for staff are set annually by the salary subcommittee. They make recommendations based on performance during the year, any significant changes in responsibilities and RPI.

The oversight of the church is the responsibility of a team of seventeen Elders (Tony Hall - lead Elder, Gary Carvosso, David Jackson, Trevor Payne, Julian Sanders, Peter Harwood, Matt Lofthouse, Kennedy Mark, Mike Garforth, Colin Potter, Bruce Anderson, Peter Heath, Jerome Kalan, Darren Upton, Gideon Bodi, Mathew Bulpitt and Olayemi shyllon), assisted by the other Directors, particularly in the administrative and regulatory oversight of the church.

The Directors and the Elders are assisted by a team of paid employees and, in common with many churches, a large number of volunteers.

The day to day running of the charity is delegated by the Directors to the Core Team which meets weekly. Summaries of these meetings are sent to all the Directors. The Directors agree the overall strategy and budgets, as recommended by the Core team. Two of the Directors usually sit on the Core team and are responsible for communicating any changes and representing the Directors’ decisions.

New Directors are given induction training provided by the Chair of Directors. They receive recent minutes, the latest report and accounts, the governing document and the guidance produced by Stewardship on being a Director/Trustee. Directors are encouraged to attend training and are informed of relevant opportunities.

Hope Church Orpington is part of the Regions Beyond movement and a member of the Evangelical Alliance. Neither of these bodies has control over the operation of the church or its financial affairs.

Employee involvement

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the charity continues and that the appropriate training is arranged. It is the policy of the charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Barry Palmer

Director Dated: 9 September 2021

HOPE CHURCH ORPINGTON

STATEMENT OF DIRECTORS' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The directors, who also act as trustees for the charitable activities of Hope Church Orpington, are responsible for preparing the Directors' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the Directors are required to:

The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HOPE CHURCH ORPINGTON

INDEPENDENT EXAMINER'S REPORT TO THE DIRECTORS OF HOPE CHURCH ORPINGTON

I report to the Directors on my examination of the financial statements of Hope Church Orpington (the charity) for the year ended 31 December 2020.

Responsibilities and basis of report

As the Directors of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England & 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 that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Nigel Hewson FCA DChA

Hewsons Chartered Accountants 80 Woodhurst Avenue Orpington Kent BR5 1AT

Dated: 10 September 2021

HOPE CHURCH ORPINGTON

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
777,867
154,678
C haritable activities
4
12,852
-
Investment s
5
505
-
Total income
791,224
154,678
Expenditure on:
Charitable activities
6
646,401
111,419
Gross transfers
between funds
-
-
Net income/(expenditure)
for the year/
Net movement in funds
144,823
43,259
Fund balances at 1
January 2020
1,014,780
11,719
Fund balances at 31
December 2020
1,159,603
54,978		 TotalUnrestricted
funds
2020
2019
£
£
932,545
659,609
12,852
28,497
505
495
945,902
688,601
757,820
715,278
-
5,070
188,082
(21,607)
1,026,499
1,036,387
1,214,581
1,014,780		 Restricted
funds
2019
£
61,292
282
-
61,574
47,831
(5,070)
8,673
3,046
11,719		 Total
2019
£
720,901
28,779
495
750,175
763,109
-
(12,934)
1,039,433
1,026,499

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

HOPE CHURCH ORPINGTON

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
12
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
17
Net assets
Income funds
Restricted funds
20
Unrestricted funds
Designated funds
21
General unrestricted funds		 2020
£
£
1,236,360
6,660
25,699
354,675
387,034
(51,452)
335,582
1,571,942
(357,361)
1,214,581
54,978
172,903
986,700
1,159,603
1,214,581		 2019
£
£
1,267,150
3,181
37,899
160,109
201,189
(58,281)
142,908
1,410,058
(383,559)
1,026,499
11,719
56,652
958,128
1,014,780
1,026,499

HOPE CHURCH ORPINGTON

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2020

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.

The Directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Directors on 9 September 2021

Barry Palmer

Trustee

Company Registration No. 6738209

HOPE CHURCH ORPINGTON

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from operations
25
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
(13,974)
505
(24,122)		 £
232,157
(13,469)
(24,122)
194,566
160,109
354,675		 2019
£
(35,289)
495
(22,255)		 £
45,997
(34,794)
(22,255)
(11,052)
171,161
160,109

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Hope Church Orpington is a private company limited by guarantee incorporated in England and Wales. The registered office is The Goodmead Centre, 36 Chislehurst Road, Orpington, Kent, BR6 0DG.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006 and “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). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

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

1.2 Going concern

The Directors have considered the day to day cash flow requirements of the charity and have a reasonable expectation that the charity has adequate resources to continue in operational existence for at least a further 12 months. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements. This assessment is undertaken in light of the recent developments arising from the coronavirus (COVID 19) pandemic. The charity has not seen a significant reduction in voluntary income since lockdown measures were imposed in the UK and the directors believe that finances will not be significantly impacted by the pandemic.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Directors in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Designated funds comprise funds which have been set aside at the discretion of the Directors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts .

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

1.4 Income recognition

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Goods donated for distribution are valued at estimated cost to the charity were it to purchase those goods itself and are included in income when received and in grants payable when distributed. Where impractical to measure the value of donated goods on receipt they are included in income when distributed.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised in these accounts. More information about the contribution of volunteers is provided in the directors' report.

1.5 Expenditure recognition

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Grants and donations payable are taken into account at the earlier of when they are paid or become legally enforceable.

Other than the normal commitments under contracts of employment there are no contractual or constructive obligations to future expenditure at the balance sheet date. Where the directors have authorised expenditure which is not yet legally enforceable or has become a constructive obligation, amounts are set aside into funds designated for the purpose.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.. The cost of assets transferred from Hope Church Orpington trust is the market value on the date of transfer. Assets costing less than £250 are written off as an expense in the year in which the expenditure is incurred. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings straight line basis over 50 years (buildings only) Improvements to short leasehold over the term of the lease to the earliest break point Fixtures, fittings & equipment straight line basis over 3 - 10 years depending on useful life

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
747,867
25,113
Grants receivable
30,000
68,560
Donated goods and
services
-
61,005
777,867
154,678		 TotalUnrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
772,980
629,609
61,292
98,560
30,000
-
61,005
-
-
932,545
659,609
61,292		 Total
2019
£
690,901
30,000
-
720,901

Of the donated goods and services referred to above £49,776 relates to the activities of the initiative operating under the name of the Transform Bromley Borough Food Partnership. More detailed information is provided at note 7. The balance of the donated goods relate to Baby Basics which is a general church initiative providing essential equipment, clothing and toiletries for women and families in extreme need .

During the year an amount of £nil (2019: £100) was received as agent, not as principal, for payment to a third party. This amount is not included in income or expenditure. No such amount was held at the year end.

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 C haritable activities
2020 2019
£ £
Church activities and events 1,848 24,554
Charitable rental income 560 4,225
Other income 10,444 -
12,852 28,779
Analysis by fund
Unrestricted funds 12,852 28,497
Restricted funds - 282
5 Investment s
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Interest receivable 505 495

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Charitable activities

Church
activities
Food
distribution
£
£
Staff costs
326,086
-
Depreciation and impairment
44,764
-
Orpington premises and operating costs
30,552
5,000
Bromley premises and operating costs
25,721
-
West Wickham & Chislehurst premises and
operating costs
7,922
-
Downham premises and operating costs
8,854
-
Evangelism and community outreach
4,454
8,716
Children's and youth work
3,792
-
Church family activities
5,787
-
Training future leaders
5,551
-
Conferences and other training
4,000
-
Gifts for visiting speakers
-
-
Ministerial and travel expenses
8,001
-
Other charitable expenditure
563
-
476,047
13,716
Grant funding of activities (see note 8)
72,703
68,479
Share of support costs (see note 9)
123,722
-
Share of governance costs (see note 9)
3,153
-
675,625
82,195
Analysis by fund
Unrestricted funds
644,624
1,777
Restricted funds
31,001
80,418
675,625
82,195		 Total
2020
£
326,086
44,764
35,552
25,721
7,922
8,854
13,170
3,792
5,787
5,551
4,000
-
8,001
563
489,763
141,182
123,722
3,153
757,820
646,401
111,419
757,820		 Total
2019
£
284,500
44,051
40,249
35,709
25,376
10,167
7,373
25,402
8,158
14,511
6,526
3,500
12,714
-
518,236
93,662
145,846
5,365
763,109
715,278
47,831
763,109

Congregations meet in Orpington, Bromley, West Wickham, Downham and Chislehurst. The premises and operating costs referred to above reflect the costs of facilitating meetings in each of these locations.

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Description of charitable activities

Church activities

Church activities includes all expenditure directly related to the activities of the congregations meeting in Orpington, Bromley, West Wickham, Downham and Chislehurst.

Food distribution:

The figures reported relate to an initiative organised by churches in Bromley Borough, listed below, of which Hope Church Orpington is the lead church and provides warehouse space at their Orpington premises. The initiative operates under the name of Transform Bromley Borough Food Partnership (TBBFP). All the income of the initiative has been reported in these accounts and food distributed from the Orpington hub to food banks and other food distribution efforts by participating churches has been included as grants to institutions.

The majority of food received by TBBFP is from the Fareshare initiative with a very short shelf life and has been valued at 26p per kilo and included in income under the heading donated goods and services. Food purchased is included at cost. Food distributed and included in grants to organisations has been valued at cost or estimated market value in the same way as described for income. Due to the short life of the food no stock was held at the distribution centre at the year end as it is received and dispatched to food banks on the same day.

The participating churches and associated groups who have received food from the initiative are: Hope Church Orpington Bromley Christian Centre Christ Church Anerley Citygate Beckenham Whitefoot & Downham Food Plus Brook Lane Community Church Hayes Community Food Bank Living Well, Bromley St Edwards Mottingham Unity Church Community Fridge Christchurch Orpington Orpington Baptist (ceased) Anchor Housing (ceased)

Jubilee Church Bromley is involved in supporting the initiative but did not receive donated food.

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8 Grants payable

Church
activities
Food
distribution
£
£
Grants to institutions:
Regions Beyond
38,718
-
London City Mission
10,500
-
Destiny House Children's Home Mtubtuba
-
-
Transform Bromley Borough Food Partnership
-
65,543
New Life Church Biggin Hill
-
-
Rio Vivo Church Brazil
2,177
-
Other grants of less than £1,000
710
-
52,105
65,543
Grants to individuals
20,598
2,936
72,703
68,479		 Total
£
38,718
10,500
-
65,543
-
2,177
710
117,648
23,534
141,182		 2019
£
55,900
10,500
1,000
2,150
1,336
-
1,563
72,449
21,213
93,662

Grants categorised above as Transform Bromley Borough Food Partnership represent food and equipment distributed by Hope Church to members of the Transform Bromley Borough Food Partnership initiative. Hope Church Orpington acted as lead church in the initiative offering warehouse facilities and coordinating distribution to the other organisations. The organisations participating in the initiative are listed in note 7.

9 Support costs

Support
costs
Governance
costs
£
£
Staff costs
69,043
-
Administration expenses
36,124
-
Interest & bank charges
18,555
-
Accountancy
-
2,640
Legal and professional
-
513
123,722
3,153		 2020
£
69,043
36,124
18,555
2,640
513
126,875		 Support
costs
Governance
costs
£
£
98,299
-
26,435
-
21,112
-
-
5,302
-
63
145,846
5,365		 2019
£
98,299
26,435
21,112
5,302
63
151,211

Accountancy costs include fees payable to the independent examiner of £2,500 (2019: £3,000) for fees in connection with their report and £1,400 less an overprovision for previous years of £1,260 (2019: £3,000 less an over provision of £968) for other services.

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

10 Directors

The following Directors received remuneration in accordance with the provisions of the governing document: Tony Hall received remuneration of £50,667 (2019: £44,663) plus pension contributions of £5,067 (2019 £4,463) and his wife, Tina Hall, received remuneration of £11,200 (2019: £10,600) plus pension contributions of £1,120 (2019: £1,060). Gary Carvosso received remuneration of £15,733 (2019: £3,900) plus pension contributions of £1,573 (2019: £390). In 2019 Gary Carvosso's daughter received £1,449 in connection with her placement as an intern with the charity. Her internship commenced before the appointment of Gary Carvosso as a director,

None of the other Directors (or any persons connected with them) received any remuneration during the year, but two of them incurred expenses of £1,909 (2019: £3,038) in connection with their duties as employees or volunteers rather than as directors and one of them received £800 to cover expenses accommodating an intern working at the church

Donations received from the directors and persons connected to them for the year to 31 December 2020 totalled £75,334 (2019: £70,856)

11 Employees

Number of employees

The average monthly headcount during the year was:

Ministerial staff
Support staff
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
11
4
15
2020
£
341,781
26,550
26,798
395,129		 2019
Number
10
4
14
2019
£
331,094
26,676
25,029
382,799

There were no employees whose annual remuneration was £60,000 or more.

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12
Tangible fixed assets
Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Land and
buildings
Improvements
to short
leasehold
£
£
1,359,421
115,006
-
-
-
-
1,359,421
115,006
172,039
52,257
18,558
15,569
-
-
190,597
67,826
1,168,824
47,180
1,187,382
62,749		 Fixtures,
fittings &
equipment
£
153,145
13,974
(716)
166,403
136,126
10,637
(716)
146,047
20,356
17,019		 Total
£
1,627,572
13,974
(716)
1,640,830
360,422
44,764
(716)
404,470
1,236,360
1,267,150

13 Financial instruments

Financial instruments measured at amortised cost comprise the loan financing provided by Metro Bank PLC to the church.

Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2020
£
382,807
25,446
357,361
243,753		 2019
£
406,929
23,370
383,559
277,767

The bank loan financing is in the form of a secured loan with an interest rate of 4.25% above the lender's published base rate. The charge is over a property at the principal address of the charity which had a net book value at December 2020 of £1,168,824 (Two of the directors have each provided a personal guarantee of £41,250 in support of the bank loan.)

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14
Stocks
Finished goods and goods for resale
15
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Bank loans
Other taxation and social security
Deferred income
18
Other creditors
Accruals and deferred income
17
Creditors: amounts falling due after more than one year
Bank loans
18
Deferred income
Other deferred income		 2020
£
6,660
2020
£
12,087
13,612
25,699
2020
£
25,446
10,367
1,465
-
14,174
51,452
2020
£
357,361
2020
£
1,465		 2019
£
3,181
2019
£
25,900
11,999
37,899
2019
£
23,370
8,840
1,226
5,920
18,925
58,281
2019
£
383,559
2019
£
1,226

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

19 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to the statement of financial activities in respect of defined contribution schemes was £26,798 (2019 - £25,029). It is not currently the policy of the charity to make a re-charge to restricted funds for any employee costs including employer pension contributions; therefore the above costs are allocated entirely against unrestricted funds.

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 January 2019

£
Special offering and collections
62
Overseas aid
-
Apostolic Extension
227
West Wickham
154
Chislehurst
2,137
Baby Basics
466
Hardship fund
-
Food distribution fund
-
3,046		 Movement in funds
Incoming
resources
Resources
expended
£
£
40,877
(28,584)
5,809
(5,100)
3,150
(3,377)
-
-
-
(2,137)
11,738
(8,633)
-
-
-
-
61,574
(47,831)		 Movement in funds
Transfers
Balance at
1 January 2020
Incoming
resources
Resources
expended
Balance at
31 December
2020
£
£
£
£
£
(5,070)
7,285
12,596
(19,505)
376
-
709
2,131
(2,790)
50
-
-
-
-
-
-
154
-
-
154
-
-
-
-
-
-
3,571
14,621
(8,570)
9,622
-
-
5,005
(1,688)
3,317
-
-
120,325
(78,866)
41,459
(5,070)
11,719
154,678
(111,419)
54,978

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

20 Restricted funds

(Continued)

Special offerings and collections - receives monies from special offerings or gifts received for a restricted purpose which do not form part of another restricted fund. The transfer out of restricted funds reflects restricted income fully expended on assets for ongoing use for unrestricted purposes.

Overseas aid - this fund represents monies raised specifically for relief of poverty in overseas countries .

Apostolic Extension - this fund receives grants towards salary costs of leaders, which are borne by Hope Church Orpington, where leaders spend part of their time working with other churches at home and abroad.

West Wickham - this fund receives income restricted for use in meeting expenses of the West Wickham congregation.

Chislehurst - this fund receives income restricted for use in meeting expenses of the Chislehurst congregation.

Baby Basics - this fund receives income restricted for use in providing essential equipment, clothing and toiletries for women and families in extreme need. Hardship fund - this fund receives gifts for helping those facing financial difficulties.

Food distribution fund - this fund receives income to facilitate the activities of the Transform Bromley Food Partnership initiative.

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 January 2019

£
New Congregations
8,000
Repair and maintenance fund
36,000
Social action fund
-
Infrastructure team
-
Hardship fund
-
Food distribution fund
-
Micro mission fund
-
44,000		 Movement in funds
Incoming
resources
Resources
expended
£
£
-
-
-
-
14,000
(348)
-
-
-
-
-
-
-
-
14,000
(348)		 Transfers
Balance at
1 January 2020

£
£
(8,000)
-
7,000
43,000
-
13,652
-
-
-
-
-
-
-
-
(1,000)
56,652		 Movement in funds
Incoming
resources
Resources
expended
£
£
-
-
-
-
-
-
-
-
3,000
(1,613)
7,000
(1,777)
-
(1,359)
10,000
(4,749)		 Transfers
Balance at
31 December
2020
£
£
38,000
38,000
7,000
50,000
-
13,652
44,000
44,000
-
1,387
12,000
17,223
10,000
8,641
111,000
172,903

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

21 Designated funds

(Continued)

New Congregations (formerly Bromley North fund) - money set aside to establish new congregations.

Repair and maintenance fund (previously called Spire Fund) - transfers have been made to this fund to facilitate repair of the spire at St Luke's Church Bromley Common. In accordance with a lease dated 23 December 2014 the charity is to repair and restore the spire within 5 years of the date of the lease. The spire repair was not carried out within 5 years of the date of the lease due to lengthy negotiations with the Diocese Rochester and the Covid pandemic. However, the repairs expected cost is estimated to be between £40,000 and £50,000.

Social action fund - a gift was received towards the social action of the church. It has since been clarified with the donor that the funds can be used at the discretion of the directors who have agreed it will be used as far as possible for social action and therefore the income has been treated as designated.

Infrastructure team - money set aside to facilitate the work of the infrastructure team.

Hardship fund - a fund to provided help for those facing financial hardship.

Food distribution fund - funds set aside to assist the work of the Transform Bromley Borough Food Partnership initiative.

Micro mission fund - funds set aside to facilitate smaller evangelistic ventures and initiatives.

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

22
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2020
2020
£
£
Fund balances at 31
December 2020 are
represented by:
Tangible assets
1,236,360
-
Current assets/
(liabilities)
280,604
54,978
Long term liabilities
(357,361)
-
1,159,603
54,978		 TotalUnrestricted
funds
2020
2019
£
£
1,236,360
1,261,102
335,582
137,237
(357,361)
(383,559)
1,214,581
1,014,780		 Restricted
funds
2019
£
6,048
5,671
-
11,719		 Total
2019
£
1,267,150
142,908
(383,559)
1,026,499

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

23 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as shown below. The commitments relate to a lease of St Luke's Bromley Common and the lease of photocopier equipment.

Within one year
Between two and five years
24
Related party transactions
Remuneration of key management personnel		 2020
£
20,632
30,158
50,790		 2019
£
20,632
50,790
71,422

The remuneration of key management personnel is as follows.

2020 2019
£ £
Aggregate compensation 159,800 143,449
Key management personnel comprise the employed directors and two other individuals who are part of the Key management personnel comprise the employed directors and two other individuals who are part of the Key management personnel comprise the employed directors and two other individuals who are part of the
leadership team.
25 Cash generated from operations 2020 2019
£ £
Surplus/(deficit) for the year 188,082 (12,934)
Adjustments for:
Investment income recognised in statement of financial activities (505) (495)
Depreciation and impairment of tangible fixed assets 44,764 44,051
Movements in working capital:
(Increase) in stocks (3,479) (3,181)
Decrease in debtors 12,200 18,794
(Decrease)/increase in creditors (9,144) 5,697
Increase/(decrease) in deferred income 239 (5,935)
Cash generated from operations 232,157 45,997

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

26 Analysis of changes in net (debt)/funds
At 1 January Cash flows At 31 December
2020 2020
£ £ £
Cash at bank and in hand 160,109 194,566 354,675
Loans falling due within one year (23,370) (2,076) (25,446)
Loans falling due after more than one year (383,559) 26,198 (357,361)
(246,820) 218,688 (28,132)