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2021-12-31-accounts

CORNERSTONE EVANGELICAL CHURCH

A Charitable Company Limited By Guarantee

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

For the Year Ended 31 December 2021

Charity Number 1128533 Company Number 06805205

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Report of the Trustees for the Year Ended 31 December 2021

The Trustees are pleased to present their annual report and financial statements for the year ending 31 December 2021 which also are prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 (FRS102) (effective 1 January 2019).

Elders’ Report

We began the year as the auditorium returned to its usual format after the amazing ‘Narnia Experience’ came to close. The truths that are represented in the Narnia stories would be known and experienced throughout 2021 as we continued through the pandemic. In-person services began in the new year, though we did pause them for a few weeks to move exclusively online at the height of that wave of infections.

By mid-February, we were welcoming people back to gathered worship in-person on Sundays, though being able to stay for conversation and prayer after services was not yet possible. Many aspects of church life were held online or in smaller groups or outside, in line with the then restrictions.

In this period, we were privileged to have the opportunity to record a number of services that were broadcast on Notts TV. In addition, Phil Moore and others produced a ‘Hope for Easter’ CD and evangelistic resource which was a wonderful encouragement and opening for the gospel.

The Prime Minister had said ‘We can certainly look forward to a very, very different world for this country from Easter onwards.’ and we continued during these months, looking forward to Easter 2021 and looking back to the first Easter and the certain hope that Christ’s death and resurrection guarantees.

At Easter time, a number of innovative events helped people to engage with the Easter story. International students were welcomed to an Easter event, children and families came to the Easter Extravaganza (run multiple times to accommodate numbers in a Covid-secure way), and the traditional Good Friday Communion service was held twice.

Acts of Worship for Men, for Women and for those in their 20s and 30s also provided helpful time and space for worship and teaching at various points over these months.

By late April, our Bible Workshops and Youth Groups were permitted to begin meeting on Sundays again, and we welcomed more and more people back to Sunday worship. We were also able to increase the numbers of places we had available in the auditorium, which was a great blessing.

We found the phrase ‘coming down the mountain’ to be a helpful way of describing our experience of journeying together down from the peaks of the pandemic, and then spending time ‘beside still waters’ as Psalm 23 enabled us to do.

Congregational singing returned, albeit outside in the car park on a couple of sunny evenings in the summer months! Also a first for Cornerstone was the Secret Detective Training Academy, a Holiday Club for primary school aged children, which was a fantastic and creative way to engage this age group with the truths of who Jesus is and why he came to this world.

Autumn term arrived and much of church life had returned to a slightly more normal feel, without the need to book places on Sundays or socially distance in the same way. Our teaching series in Revelation gave us a focus on God’s good reign and sovereign rule, enabling us to work and to rest without fear.

The Elders praise God for His provision for Cornerstone, especially demonstrated in the willing and sacrificial service to others that is given by so many hundreds of people within the life of the church.

‘We remember before our God and Father your work produced by faith, your labour prompted by love, and your endurance inspired by hop[e in our Lord Jesus Christ.’ (1 Thessalonians 1:3)

May our God continue to lead us on into all he has planned, for his glory and the good of his people.

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Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Report of the Trustees for the Year Ended 31 December 2021 - continued

1. Our Purposes and Activities

In working towards the objectives below, the Trustees have considered the Charity Commission’s guidance on public benefit and have worked towards making Cornerstone as accessible as possible to all the community. The Trustees confirm that they have complied with their duties under Section 17(5) of the 2011 Charities Act with regard to public benefit.

1.a Objectives

1.b Aims

Our Mission: To make disciples of Jesus Christ in Nottingham, all nations and the next generation.

Our Values: The word of God, mission of God, people of God, worship of God and grace of God

Cornerstone relies on every member being actively involved in witness and service to continue its operation as a local Christian Church congregation:

  1. Providing for the spiritual, physical, emotional and social needs - of its members, the local community in and around Nottingham and by means of gifts and through the work of its representatives across the world.

  2. Supporting and equipping volunteers and paid staff - to work alongside those struggling locally and the provision of funds and paid workers to various deprived areas of the world to provide education, training, medical services and the like.

  3. Encouraging Christian education - by supporting and equipping Christian leaders and ministers, production of books and other written or recorded material, holding and sponsoring conferences and courses.

1.c Strategies

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2. Achievements and Performance

2.a Significant Activities during the Year

  1. Provision of gathered worship services on Sunday. Predominantly these were in-person throughout, with a short period in January/February which was exclusively online.

  2. Continued support of isolated and vulnerable members of the church.

  3. Notts TV: recorded three special Cornerstone services, broadcast on 31[st] January, 28[th] March and 30[th] May

  4. Hong Kong Welcome – various initiatives to welcome people who have moved to the UK from Hong Kong in recent months.

  5. Open Air Worship: At various times during the year the church met in the car park for Covid Secure gathered worship.

  6. Summer Holiday Club: a weeklong event for primary age children

  7. Small Groups: Cornerstone gives great importance to encouraging attendees to meet in small groups during the week for bible teaching, prayer, pastoral support and mutual encouragement in the Christian faith. Groups were meeting on-line and in-person during the year.

  8. The Intern scheme (usually 1 year): A programme to help teach and develop the next generation of church leaders, providing experience and training in the church setting. The Interns year starts in August. 2 new Interns were appointed during the year with one intern from the previous year staying on for a 2[nd] year.

  9. Emerging Leaders Group: Recognising the importance of raising new leaders for the life and growth of the church, a pilot group was established for 6 months, training those emerging into leading small groups of 1015 people.

  10. Thanksgiving services for the life and faith of our dear friends who have been promoted to glory:  Gill Fox

  11. Wedding services:

  12. Josh Ison & Lizzie Kavanagh

  13. Katie Gribbin and Ben Moon

  14. Mari Fletcher & Tom Barkley

  15. Ben Kennedy and Abi Chang

2.b Delivery of Public Benefit

  1. Acts of Christian worship: Available to the public in-person and on-line with Christian songs and hymns, praying and preaching.

  2. Beliefs of the church: Information is available to the public on the church website.

  3. Women of the Word: Meeting on Friday mornings during term time. This initiative is for women of all ages and cultures to study the Bible, pray together and enjoy each other’s company with refreshments. This year was a combination of in-person and zoom meetings.

  4. Student Ministry: The church supports and provides resources for the University Christian Unions in Nottingham. Approx. 50 Students regularly attend the church’s Sunday evening Preview sessions which include bible study and a meal before the 7pm service.

  5. Curious Course: A 4-week course each term, exploring the Christian faith from creation to Christ and providing the opportunity to consider the evidence and ask questions. In 2021 the Curious course was carried out on-line rather than the usual in-person meetings.

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  1. Connect Central: A six week ‘Introduction to Cornerstone’ course to help newcomers feel part of the church family, learn about our history, meet church leaders & members and understand our mission and values. This year Connect Central was carried out in a combination of on-line and in-person meetings.

  2. English Language Class: A Wednesday morning class with crèche available for local people whose first language is not English. Run by trained volunteers, this is a popular class providing for a mixed range of abilities. In 2021, the English Language Class was carried out on-line rather than the usual in-person meetings.

  3. Cornerstone Money Advice (Affiliated to the national charity Community Money Advice): Providing free confidential advice to help people manage debt, negotiate with creditors and learn budgeting skills. The very capable volunteers who provide this service are hugely appreciated by those who come for assistance.

  4. Crossteach: Cornerstone is pleased to financially and prayerfully support Crossteach; a national charity, whose aim is to ‘teach about the Christian faith in schools’. Despite ongoing Covid restrictions, the team saw a growth in their work over 2021 as they were able to go into schools and teach more lessons, clubs, assemblies and experiences than in previous years. They were also able to continue providing online resources where appropriate to schools. In September, they welcomed their first trainee onto the team and have enjoyed growing, both as a team and in the amount of work we’re able to do. We continue to pray for God’s sustaining financial provision and open doors in schools.

  5. Cornerstone School of Theology: For those wanting to study theology and be equipped for life and ministry. Members study online material from Crosslands and meet monthly to discuss and apply what they’ve been reading.

  6. Lenton Globe Café: Run in partnership with Friends International. The cafe usually meets in Cornerstone’s building on Monday nights during term time. The café is popular with international students and scholars from many countries, cultures and faiths. It offers the opportunity to make friends, meet local people, practice English and enjoy different cultural activities. Each evening includes a fun activity, group discussions and conversations about life topics and the Christian faith. Globe café started meeting in-person again in October this year.

  7. The great BIG family Easter Eggstravaganza. An event for families including Act of worship, Crafts, Songs, Story and Chocolate eggs. Carried out 3 times on a Saturday so that people could take part Covid securely.

  8. Ignite the Light: An alternative to Halloween. Sunday afternoon this year - crafts, games, a short talk and hot dogs for children in school years 3-6.

  9. International Women’s group: For women who have come from other countries to make their home in the UK. The group meets on Sundays for discipleship and at other times for lunches, walks and picnics.

  10. Youth Groups: The church provides three Christian youth groups that meet on Friday nights for ages 7-11, 1114 and 14-18 and also Sunday mornings. Due to the Covid crisis, these ministries met on-line during much of the 1[st] half of the year with some outdoor walks and other activities. From June it was possible to meet inperson again.

  11. The church building is a collection point for a local Food Bank run by Grace Church, Nottingham.

  12. Tots & Toys: A community group for babies and young children under 5, along with their carers (mums, dads, grandparents, child minders etc). The group meets on Thursday mornings in the main auditorium and offers; craft, Bible stories, singing and refreshments. The group started meeting again in June this year.

  13. Twenties and Thirties: The group meets for an event or activity approximately once a month to build friendships and a sense of community, whilst encouraging each other to live for Christ in this season of life.

  14. Dad Club: Meets on the 2nd Saturday of each month. This is a time for dads and their 0-5 year olds to meet up and play, to enjoy refreshments and an interactive bible story. The group started meeting again in June this year.

  15. Overseas Mission: The church provides financial, prayer and care support for a number of Christian Overseas Workers and their families who teach and care for people in 10 different countries. The Mission workers are overseen by the Mission Coordinators group.

  16. Fostering and Adoption support group: Open to anyone who has fostered or adopted in the past, is currently doing so or hopes to in the future.

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  1. Employment support group: A group which is open to anyone who is experiencing unemployment, or a lack of security in their employment, either as an employer or employee. The group exists to offer spiritual input as well as mutual encouragement and prayer support for those attending.

  2. Fruitful Faith in Later Life: A fellowship group for those in the retired or near retirement age group. During 2021 we have continued to meet monthly on zoom with occasional in person meetings when restrictions have allowed. We have continued to share in times of prayer, sharing of testimonies, hearing from overseas workers and encouraging one another with what God is teaching us through his word. We are beginning to return to in person gatherings more regularly and we’re looking forward to these times when we can continue to fellowship together and encourage one another.

  3. The church hosts events to support other local, regional and national Christian organisations. Although the pandemic curtailed a considerable number of activities, the following events took place during the year:

  4. January Hope for Easter - Evangelistic Recording Project

  5. February Friends International - Cross cultural training Friends International - Cluster Day CrossTeach meeting Living Leadership - 3 day Formation Course

  6. March ‘Growing Young Disciples’ Conference

  7. Friends International – Easter Act of Worship

  8. April Music Ministries Conference June Friends International - Apprentice Staff Worker Interview

  9. July Keswick Convention band rehearsal Friends International - Nottingham Prayer & Praise

  10. September Redeemer Church - Music practice CrossTeach meeting

  11. October Midlands Women’s’ Convention Redeemer Church - Prayer & Praise Scripture Union meeting Crosslands - Seminar Day

  12. November Midland Men’s Convention Living Leadership meeting Friends International - Cluster day CAN slavery-free Notts event

  13. December MGP Steering Committee meeting Friends International - Christmas Event OMF team meeting Grace Church using Cornerstone kitchen resourses

2.c Voluntary Help

  1. The church depends on every member’s active involvement in the life of the church and volunteers staff and often lead the many ministries of the church.

  2. On Sundays, around 110 people are needed to run church services (stewarding and welcoming, music and technical operators, crèche and Bible Workshop teachers, providing tea/coffee and other responsibilities).

  3. During the week, around 50 volunteers lead over 20 Connect groups that usually meet at members’ homes having the purposes of community, discipleship, pastoral care and mission.

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Report of the Trustees for the Year Ended 31 December 2021 - continued

2.d Charitable activities - Material fund raising

Giving to Cornerstone is a matter for God and the believer. The leadership occasionally gives guidance on this issue. Leaflets are available at the church building and information on the website. New membership candidates are interviewed by a Church Elder during which giving and tithing are discussed.

As well as giving to the General Fund, appeals are made for contributions to the Building Fund to pay for the outstanding mortgage (see note 12).

The church has an annual Christmas Appeal for funds to support external organisations (see note 13). All the money received is sent out, including the Gift Aided tax reclaimed. No funds are kept back to cover operating costs. No targets are set for the appeal.

3. Financial Review

3.1 General Fund: Income – Unrestricted

Donations & Legacies: The church’s main source of sustainable income is in the form of Donations & Gifts (including Gift Aid tax) from members and other regular worshippers.

This income increased by 3.2% compared with last year. We praise God that underlying income remained consistent during the pandemic and that significant one-off gifts were received, bringing income back to a level comparable to 2019, before Cornerstone planted Redeemer Church which caused a reduction in income in 2020.

Income from Charitable Activities/Events: £6,913 This is income from events that have had a charge made on the participants e.g. tickets for entry, food etc. They are usually ministry events that have a cost associated with them that the church does not wish to fund, partially or in full. These activities are intended to be ministry enabling and not a net source of income for the church and consequently the corresponding Events Expenditure is expected to be of similar amount.

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3.2 General Fund: Expenditure – Unrestricted

The total expenditure on charitable activities (excluding Events Expenditure) of £780,550 does not represent any notable movement from last year. Expenses attributable to Redeemer Church Nottingham, when a ministry of Cornerstone, were removed when they became independent in 2019 and a reduction in activity due to Covid 19 in 2020 and 2021 show as a down step from expenses in 2019.

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3.3 General Fund: Net Resources – Unrestricted

Net resources (the difference between unrestricted income and outgoings) for the period are £17,433 giving total general funds at the year-end of £511,272.

In yet another extraordinary year, we thank God for 2021 and for his provision for the mission of Cornerstone Church; to make disciples of Jesus Christ in Nottingham, all nations and the next generation.

3.4 Restricted Funds

Restricted funds are funds received by the church for specific purposes, formally adopted by the church elders. They are usually for, but not restricted to, specific International or Home Mission workers, the annual Christmas Appeal and the Building Fund. Gift Aided tax reclaimed on restricted funds is included in the total for that fund.

Building Fund

Since 2004, the church has been running a fund ‘for premises to house the ministries of the church; its outreach, its teaching and its fellowship’ with the stipulation that ‘Gifts made to this fund will be used for: acquiring, running, furnishing and maintaining a property to house the ministries and worship of Cornerstone Church and any other costs associated with building, renting, occupying and using such a property’ .

Many members and regular attendees of the church are committed to regular giving to the building fund as well as their tithe to the general fund. The church also receives one off gifts for the building fund.

The total income to the building fund was £113,951. This income is used to pay for the capital and interest on the mortgage which stood at £850,186 at the end of the year.

Christmas Appeal

For Christmas 2020/2021; gifts and the recovered gift aid tax were disbursed in March 2021 as follows:

For Christmas 2021/2022; gifts of £14,522 has been received to be disbursed in March 2022 to:

Lead Minister John Russell registered a conflict of interest relating to Safe Families as a close family member is employed by them. He removed himself from discussions and decisions concerning support for this charity.

3.5 Policy on reserves

The church’s policy is to maintain 2-3 months’ cash reserves equivalent to: £147,000 - £221,000. The unrestricted reserve cash assets at the year-end amount to £511,272 of which £100,000 has been designated for building renewal.

3.6 Material funds in deficit

There are no material funds in overall deficit.

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3.7 Principal funding sources

By far the main source of income for the church is the gifts of its congregation representing 99% of total income including tax. The balance coming from investments, Bank Interest and Activities.

3.8 Investments

The Elders have no restriction on their investment powers subject to the approval of the church.

4. Plans for Future Periods

Income

5. Reference and Administrative details (of the Charity, its Trustees and Advisors)

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5.d Elders (Trustees/Directors) at 31 December 2021

Mark Collins Bill Rettie Paul Couchman John Russell, Lead Minister Jonathan Gribbin Colin Webster, Minister Richard Lewis David Devadason Roo Miller, Minister

5.e Other Elders (Trustees/Directors) in office during the year

None

5.f Other Management of the Charity

Company Secretary & Director of Operations– Spencer Hampton

5.g Other relevant organisations or persons

Banks:

Senior Statutory Auditor:

Diane Lockwood, Haines Watts (East Midlands) Ltd, Chartered Accountants and Registered Auditor, 10 Stadium Business Court, Millennium Way, Pride Park, Derby, De24 8HP

Solicitor (General):

Ellis, Fermor and Negus, 2 Devonshire Avenue, Beeston, Nottingham NG9 1BS

6. Structure, Governance & Management

6.a Constitution

The church was constituted under the Fellowship of Independent Evangelical Churches (FIEC) Model Trust Deed No. 1 declared in 1984 with subsequent amendments at church members’ meetings in October 1987, March 1989, May 1991, October 1998, February 2002 and March 2006.

A Charitable Company Limited by Guarantee was adopted for Cornerstone Evangelical Church and incorporated at Companies House on 29 January 2009, Company Number 06805205. This was in place of the trust based structure and preserves the constitution wherever possible.

Cornerstone Evangelical Church - was entered in the Central Register of Charities on 12 March 2009, Registration number 1128533.

On 31 March 2009 the Assets of the Charitable Trust were transferred to the new company.

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6.b Method adopted for recruitment and appointment of new Trustees (Elders)

Proposals for the appointment of Members as Trustees may be made in writing to the Trustees and shall be signed by not less than two Full Members and the Trustees shall duly consider such proposals. All future Trustees are to be appointed following:

The Trustees (who are also directors for the purposes of Company Law) shall consist of not more than twelve Members and not less than six (these numbers include Minister/s and Assistant Minister/s) who are men of twenty-five years of age or over, each having been a Christian for not less than five years and having been baptised on profession of faith in Christ and having been a Member of the Church for not less than two years. [Total immersion is the preferred and usual method of baptism though exceptional circumstances may be taken into account]. All Trustees must be Members. All Trustees must subscribe and adhere to, in belief and lifestyle, the Trustees’ Confession of Faith.

6.c Policies & procedures for the induction and training of Trustees (Elders)

All new Trustees must be checked with the Disclosure Barring Service (DBS).

New Trustees will receive:

6.d Organisational Structure

Full and Associate Members: The church depends on every member’s active involvement in the life of the church. The Church must hold at least 3 General Meetings in every Year to conduct the affairs of the Church which all Full and Associate Members are entitled to attend. One of these must be the AGM which shall be held between 1st January and 30th April in every Year. At an AGM the Members, receive and approve the accounts of the Church (which shall be independently audited) for the previous financial year, receive the Trustees’ report on the Church’s activities during the preceding 12 months period, appoint auditors for the Church (if necessary), discuss and determine any issues of policy or deal with any other business put before them.

Eldership (Acting Trustees and Directors): The church is led by the Elders and those serving during the year are listed under Reference and Administrative Details. They are the only committee required under the Memorandum and Articles of Association and take strategic decisions concerning the organisation.

Ministry Staff and Operations Team: They meet every Tuesday morning to review performance, to plan activities and attend to the daily demands of the church. They report directly to the Eldership.

Mission Committee: Led by Elder Joff Gribbin, this committee has the responsibility under the Eldership to promote cross cultural ministry interest in the church, propose people to work in cross cultural environments and oversee them when they are working. This will involve mobilising the church to pray and care for them and keeping the Elders and church up-to-date with their news and relevant local developments.

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Risk Management Committee: This committee has delegated responsibility from the Eldership for oversight of the management of risk across all aspects of the church’s ministry and operations. It comprises Elder Paul Couchman, the Director of Operations and 3 risk professionals from the membership. The committee submits a report to the Elders at least once per year.

Remuneration Committee: Chaired by Elder Paul Couchman and comprising all non-salaried elders. This committee has delegated responsibility from the Eldership to review and recommend the remuneration for all salaried members of staff. The committee presents its recommendations to the full eldership for approval on an annual basis.

Safeguarding Committee: This committee has responsibility under the Eldership for leading the church in all aspects of safeguarding policy, procedures, awareness and reporting. During the year the committee comprised: Elder Bill Rettie, Safeguarding Coordinator and church member Matt Storey, DBS Manager and church member Elisabeth Simpson, Director of Operations Spencer Hampton, Director of Ministry Amanda Smart-Gosrani, Children’s Ministry Worker Katrina Harper, Safeguarding Professional and church member Anne Batley, Retired Safeguarding Professional and church member Chris McNee. The committee submits a report to the Elders at least once per year.

Lead Minister: John Russell. As well as responsibility as Minister and Elder he chairs the Eldership meetings and leads the Staff Team. He also has pastoral, preaching, and service leading responsibilities. John also serves on the FIEC Trust Board and the MGP Steering Committee.

Minister: Colin Webster. As well as responsibility as Minister and Elder he has responsibility for the evangelistic outreach of the church. He also has pastoral, preaching, music and service leading responsibilities.

Minister: Roo Miller. As well as responsibility as Minister and Elder he is a member of the Staff Team with responsibility for small group leaders and training within the church. He also has pastoral, preaching and service leading responsibilities. Roo also serves as a Tutor for Crosslands, and is seconded for 100 hours per annum for this purpose.

Minister in Training: Sam Payne is a member of the Staff Team seconded to Redeemer Church but also responsible for leading Cornerstone’s Student ministry. He is learning theology and church leadership on a seminary course at Crosslands.

Director of Ministry: Amanda Smart-Gosrani is a member of the Staff Team with responsibility for pastoral coordination, small group leaders, mercy ministries and the Intern & Voluntary Associate Schemes. She also has pastoral, teaching/training and service leading responsibilities.

Director of Ministry : Phil Moore is a member of the Staff Team with responsibility for Youth and Music. He also has pastoral, preaching and service leading responsibilities.

Director of Ministry: Kathryn Jackson is a member of the Staff Team responsible for supporting and facilitating family ministry groups. She also has pastoral and service leading responsibilities. Kathryn also chairs the MGP Children’s & Youth Ministry Group. Children’s Ministry Worker: Katrina Harper is a member of the Staff Team with responsibility for Children’s work. She also has pastoral and service leading responsibilities.

Pastoral Ministry Worker: Sara Girling works alongside Amanda Smart-Gosrani and Colin Webster, with a focus on developing and mobilising pastoral care within the life of the church. Sara is part of the ministry staff and gives her time in a voluntary capacity.

Director of Operations: Spencer Hampton is a member of the Staff Team with responsibility for the day-to-day running of the church, the finances, planning and administration. Spencer leads the Operations Team.

Event Operations Manager : Sarah Daniels, ensuring all the events are planned, resourced and delivered in a way that meets Cornerstone’s ministry aims and purposes.

Project Operations Manager : Charlie Tyrrell, supporting the ministries and change projects with operational and systems support.

Administration Manager : Katie Grundy (up to 31/10/2021), providing administrative support and office functions to support the life of the church.

DBS Manager: Elisabeth Simpson, ensuring DBS (Disclosure and Barring Service) applications are properly processed and that renewals are dealt with in a timely manner. Elisabeth is part of the Operations Team and gives her time in a voluntary capacity.

Accounts Assistant : Mike Shouler, maintaining financial systems, payments and records.

The church also employs a number of Interns, and appoints Voluntary Associates to work as part the staff team for a year or two.

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6.e Charity Networks

Cornerstone Church is an independent organisation and is not part of any wider network.

6.f Associated Charities

The church is a member of the Fellowship of Independent Evangelical Churches (FIEC), the Evangelical Alliance (EA) and the Midlands Gospel Partnership (MGP).

6.2 Risk Management

The Elders have delegated risk management to the Risk Management Group comprising Elder Paul Couchman, Director of Operations Spencer Hampton and 3 risk professionals from the membership. The major risks to which the church is exposed are considered to be:

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7. Statement of Trustees’ Responsibilities

Company Law requires the Elders to be responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

The Elders are required to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Elders should follow best practice and:

The Elders are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the applicable law, regulations and the trust deed. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofar as the Elders are aware:

The Elders are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the Eldership

Members of the Eldership who are directors for the purpose of the company law and Trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 9.

Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charitable company in the event of winding up. The total number of such guarantees at 31 December 2021 was 9 (2020: 9).

A resolution to appoint Haines Watts as auditors of the company will be proposed at the Annual General Meeting.

This report has been prepared in accordance with the Statement of Recommended Practice Accounting and Reporting by Charities and in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities.

Signed: ......................................................................................................... Date: ... ........................................................................... John Russell

Cornerstone Evangelical Church 90 Castle Boulevard Nottingham NG7 1FP

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Report of Independent Auditors to the Members of Cornerstone Evangelical Church A Charitable Company Limited by Guarantee

Opinion

We have audited the financial statements of Cornerstone Evangelical Church for the year ended 31 December 2021 on pages seventeen to twenty eight which comprise the Statement of Financial Activities, the summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note seventeen to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the charities’ ability to continue as a going concern. The COVID-19 viral pandemic is one of the most significant events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charities finances and wider economy.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Auditors report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatements in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page 15

Report of Independent Auditors to the Members of Cornerstone Evangelical Church

A Charitable Company Limited by Guarantee

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Director’s report included within the Trustees report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees Responsibilities set out on page thirteen, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or has no realistic alternative but to do so.

Auditors responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Page 16

Report of Independent Auditors to the Members of Cornerstone Evangelical Church A Charitable Company Limited by Guarantee

Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

................................................................................................................. Mrs D J Lockwood, FCA, FCCA, ATT – Senior Statutory Auditor For and on behalf of Haines Watts (East Midlands) Ltd- Statutory Auditors 10 Stadium Business Court Millennium Way Pride Park Derby DE24 8HP

Date:

Page 17

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Statement of Financial Activities (Incorporating Income and Expenditure Account) for the Year Ended 31 December 2021

Notes
Income
Donations and Legacies
1
Income from Charitable Activities
Events Income
2
Investment Income
Total Income
Expenditure
Expenditure on Charitable Activities
Operation of Cornerstone Church
and delivery of Mission Costs
Events Expenditure
Total Expenditure
5
Net Income (expenses) and
net movement in funds for the year
Transfer Between Funds
Reconciliation of funds – Total funds
brought forward
Total funds carried forward
14		 2021
2020
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
£
£
798,338
158,706
957,044
773,775
169,164
942,939
6,913
-
6,913
5,543
-
5,543
1,603
-
1,603
2,699
-
2,699
806,854
158,706
965,560
782,017
169,164
951,181
780,550
177,470
958,020
780,498
876,896
1,657,394
8,871
-
8,871
3,067
-
3,067
789,421
177,470
966,891
783,565
876,896
1,660,461
17,433
(18,764)
(1,331)
(1,548)
(707,732)
(709,280)
112
(112)
-
-
-
-
493,727
5,154,528
5,648,255
495,275
5,862,260
6,357,535
511,272
5,135,652
5,646,924
493,727
5,154,528
5,648,255

The Statement of Financial Activities includes all gains and losses in the year. All incoming resources, and resources expended derive from continuing activities.

Page 18

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Balance Sheet for the Year Ended 31 December 2021

Note
Fixed Assets
Tangible Assets
6
Current Assets
Cash at Bank and in Hand
7
Debtors
8
Total Current Assets
Current Liabilities
Creditors due within one year
9
Net Current Assets
Total Assets less Current Liabilities
Creditors
Amounts falling due after more than
one year
10
NET ASSETS
The Funds of the Charity
Unrestricted – General
13
- Designated
Restricted
13
Total Charity Funds		 £
773,742
49,531		 2021
£
5,716,298
701,893
6,418,191
(771,267)
5,646,924
511,272
-
5,135,652
5,646,924		 £
721,392
53,529		 2020
£
5,804,106
651,091
6,455,197
(806,942)
5,648,255
493,727
-
5,154,528
5,648,255		 2020
£
5,804,106
651,091
6,455,197
(806,942)
5,648,255
493,727
-
5,154,528
5,648,255
823,273 774,921
121,380 123,830
121,380 123,830
6,455,197
(806,942)
5,648,255
493,727
-
5,154,528
5,648,255

The accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The accounts were approved by the Elders:-

Signed: ......................................................................................... Dated: ................................................................

John Russell

The notes on pages 21 to 30 form part of these accounts

Page 19

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Cash Flow Statement as at 31 December 2021

Net Cash Flow from Operating Activities
Returns on Investments:
Interest Received
Interest Paid
Capital Expenditure and Financial Investments:
Purchase of Tangible Fixed Assets
Disposal of Fixed Assets
Financing:
Capital Element of Loan Repayments Made
Net Cash Inflow/(Outflow)
Increase/(Decrease) in Cash in the Year
Net Cash Resources at 1 January 2021
Net Cash Resources at 31 December 2021		 Notes
18		 2021
£
134,617
1,603
(43,173)
93,047
(5,022)
-
818,025
(35,675)
52,350
52,350
721,392
773,742		 2020
£
(507,985)
2,699
(43,515)
(548,801)
(7,054)
-
(555,855)
(33,963)
(589,818)
(589,818)
1,311,210
721,392

Page 20

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Notes forming part of the Financial Statement for the Year Ended 31 December 2021

ACCOUNTING POLICIES

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period.

BASIS OF PREPARATION

The financial statements have been in accordance with the 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 (FRS102) (effective 1[st] January 2019) – (Charities SORP (FRS102)), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts

Cornerstone Evangelical Church meets the definition of a public benefit entity under FRS102.

The Trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern.

The financial statements are presented in sterling (£).

FUNDS

General Funds – are funds generated from activities of the church such as bookstalls, events, outside preaching, etc.

Unrestricted Funds – are general funds available for use at the discretion of the Elders to further the general objectives of the church and which have not been designated for specific purposes. They are usually gifts from members of the congregation and the tax recovered on those gifts.

Restricted Funds – are funds that can only be used in accordance with specific restrictions imposed by the donors or which have been raised for particular purposes with the objects of the church and the tax recovered on those funds. The aim and use of each restricted fund is set out in the Notes to the Financial Statements.

Designated Fund – this fund is set aside during the year by the Elders for the refurbishment of the building.

INCOMING RESOURCES

All incoming resources are included in the Statement of Financial Activities (SOFA) when the church is legally entitled to the income and the amount can be quantified with reasonable certainty.

Collections are recognised when received by or on behalf of the Elders. Planned giving is recognised only when received.

Income tax recoverable on Gift Aid donations is recognised when the donation has been received.

Legacies are recognised at the earlier of receipt or at the time the amount can be measured with reasonable certainty.

Donated services and facilities are recognised as income when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt, where this can be quantified.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Page 21

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Notes forming part of the Financial Statement for the Year Ended 31 December 2021 - Continued

LIABILITIES FOR HOME AND INTERNATIONAL MISSION

The Church financially supported 13 missionaries or mission families during the period. Where a missionary has been supported by the Church for a number of years, strict compliance with the Charities Statement of Recommended Practice (SORP) may regard some arrangements as constituting constructive obligations such that future years’ support is accounted for in these accounts as a liability. The Trustees consider that to comply with the accounting requirements of SORP would not present a true and fair view because it does not communicate reality.

Further, accounting for these liabilities in this way would require the Trustees to build up unnecessary reserves that could not, in the meantime, be used to pursue the charity’s objectives.

The Trustees are confident that the missionaries supported would not view their support as an open ended obligation on the part of the Church.

RESOURCES EXPENDED

Expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. All costs have been directly attributable to one of the functional categories of resource used in the SOFA. The Church is not registered for VAT and accordingly expenditure is shown gross of irrecoverable VAT.

PENSION POLICY

The charity operates a defined contribution pension scheme. Contributions to the scheme are recognised as resources expended upon payment. The assets of the scheme are held separately from those of the charity in an independently administered fund. Contributions payable for the year are shown within the statement of financial activities.

DEPRECIATION

Fixed assets costing more than £250 have been capitalised at cost, with the exception of IT equipment which is fully written off on acquisition, and the depreciation has been reviewed and is calculated so as to write off the cost of fixed assets on the following basis:

Fixtures and Fittings 20% - reducing balance Equipment 20% - reducing balance New Building Audio & Visual Equipment 20% - reducing balance (charged to the general fund) New Building Fixtures and Fittings 20% - reducing balance (charged to the general fund) Buildings 2% - on cost (charged to restricted building fund)

Land – the land value has not been depreciated.

New building assets consisting of fixtures and fittings and audio equipment have been depreciated from the date that the property was occupied.

DEBTORS

Debtors are recognised at the settlement amount owed to the Charity or prepaid.

CREDITORS

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Page 22

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Notes forming part of the Financial Statement for the Year Ended 31 December 2021 - Continued

FINANCIAL INSTRUMENTS

The Charity 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.

JUDGEMENT AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of accounts using generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the accounts and the reported amounts of revenues and expenses during the reporting period.

The key estimates and assumptions used in the Financial Statements are detailed in the accounting policies.

LEASE AGREEMENTS

Rentals applicable to operating lease agreements where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.

LIMITED BY GUARANTEE

The charity is limited by guarantee and in the event of it being wound up, every member is liable to contribute a sum not exceeding £1. There are no shares of any class either authorised or allocated.

1. Donations, Gifts and Legacies (Unrestricted)

1. Donations, Gifts and Legacies (Unrestricted)
Gift Aid Giving
Gift Aid Tax Recoverable
General Giving
Tax Inclusive Giving
Legacies
Donations, Gifts and Legacies (Restricted)
Redeemer Town Hall Fund
Building Fund
Restricted Home Funds
Christmas Appeal
Christmas Appeal
Total Donations
2. Charitable Activities
Other Events
Training Events
Youth/Children’s Events
Books, Tapes and CDs
Social Events
Evangelistic Events
Donations		 2021
2020
£
£
525,635
498,666
132,908
124,933
109,209
128,379
19,586
21,797
11,000
-
798,338
773,775
-
3,750
113,951
128,206
1,975
5,425
28,258
19,365
14,522
12,418
158,706
169,164
957,044
942,939
-
51
-
215
5,425
543
756
500
30
39
-
160
702
4,035
6,913
5,543

Page 23

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Notes forming part of the Financial Statement for the Year Ended 31 December 2021 – Continued

3. Total Salaries & Staff Summary
3. Total Salaries & Staff Summary
Salaries
Employer’s NI
Pension
Child Care Vouchers
The allocation of salaries is made on a time spent basis. Sam Payne is employed on a full time
basis by Cornerstone Evangelical Church but is seconded for 50% of his time to Redeemer Church.
This cost is shown as a charitable donation of £14,836.
Average Weekly Number of Employees, calculated as full time equivalents
Pastoral Staff
Management and Support
(No employee received remuneration of more than £60,000)
The number of employees to whom retirement benefits were accruing was as follows:
Defined Contributions Scheme		 2021
2020
£
£
372,721
357,052
32,632
30,272
17,299
16,114
1,451
2,622
424,103
406,060
8
8
6
6
14
14
16
16

The key management personnel of the charity, comprise the elders and director of operations. The total employee benefits of key management personnel of the charity were £166,901 (2020: £161,141).

Elders giving in the financial year totalled £51,582 (2020: £51,760).

4. Trustee Remuneration

Some trustees and relatives of trustees are remunerated, as permitted in the Memorandum and Articles of Association – this includes salary, pension and expenses. The expenses are incurred as a direct result of their work and include office and travel expenses.

Colin Webster
Remuneration
Pension
Expenses
John Russell
Remuneration less child care vouchers
Pension
Expenses
Roo Miller
Remuneration less child care vouchers
Pension
Expenses		 2021
2020
£
£
38,890
37,849
1,944
1,892
143
219
40,977
39,960
42,261
41,555
2,141
2,084
1,252
974
45,654
44,613
32,117
30,671
1,646
1,569
1,525
572
35,288
32,812

Page 24

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Notes forming part of the Financial Statement for the Year Ended 31 December 2021 - Continued

5. Expenditure on Charitable Activities

5.1 Core ministry
Salaries (Note 3)
Colin Webster
John Russell
Roo Miller
Other Employees
Employment Allowance
Staff Development
Staff Travel
Pastoral Team Discretionary Gifts
Visiting Speakers
Schools
Students
Evangelism
Children
Youth
Members Training / Teaching
Website Maintenance
Flowers Pastoral
Flowers Sunday
Catering
Music
Sundry Expenses Ministry
Charitable Donations (see note 3)
5.2 Overseas Ministry
Support for Missionaries and their
Families
5.3 Home Mission
Home Mission Contingency
C U Missions
Earlesfield Community Church
Friends International
Friends International Admin
Other Mission Support
Globe Cafe
Returning Students Ministry
COCM
Cross Teach
Cornerstone Money Advice
English Language Class
International Student Expenses
Cornerstone School of Theology		 Unrestricted
Restricted
2021
2020
£
£
£
£
319,403
-
319,403
296,336
143
-
143
219
1,252
-
1,252
974
1,525
-
1,525
572
10,133
-
10,133
6,790
(4,000)
-
(4,000)
(4,000)
4,444
-
4,444
4,096
245
-
245
149
3,753
-
3,753
2,357
1,217
-
1,217
905
-
-
-
7
1,041
-
1,041
86
2,596
-
2,596
525
1,610
-
1,610
1,340
1,175
-
1,175
402
1,698
-
1,698
694
497
-
497
1,004
1,810
-
1,810
1,300
146
-
146
63
4,643
-
4,643
4,309
2,051
-
2,051
1,608
6,603
-
6,603
5,807
14,836
-
14,836
28,626
376,821
-
376,821
354,169
103,800
-
103,800
114,400
103,800
-
103,800
114,400
600
-
600
-
500
-
500
-
4,000
-
4,000
4,000
29,012
-
29,012
29,012
3,045
-
3,045
3,045
-
-
-
1,600
-
-
-
56
9,000
-
9,000
9,000
7,000
-
7,000
7,000
5,000
-
5,000
5,000
3,126
-
3,126
2,087
102
-
102
166
7,577
-
7,577
7,271
(316)
-
(316)
-
68,646
-
68,646
68,237

Page 25

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Notes forming part of the Financial Statement for the Year Ended 31 December 2021 – Continued

5.4 Administration and Support Costs
Salaries (note 3)
FIEC & MGP Affiliation
Evangelical Alliance Subscription
Postage
Printing and Advertising
Computer and Software
Photocopier
Office Stationery and Sundries
Evangelical Now
Bank Charges
Child Protection Reports
General Sub’s and Donations
Accountancy Fees
Audit Fees
Pension Fees
5.5 Building and Fabric Costs
Building Insurance
Car Parking
Church Utilities
Church Telephone
Church Cleaning and Waste
Salaries (note 3)
Church Maintenance
Internet and Computer Support
Security
Servicing
5.6 Equipment
Church Equipment Purchases
Office Equipment Purchases
Depreciation – Fixtures and Equipment
Technical Equipment Purchases
5.7 Events Expenditure
Bookstall
Events
Tapes and CD’s
5.8 Restricted Costs
Redeemer Town Hall Costs
Loan Interest Charges
Depreciation - Property
Depreciation – Original Assets
Christmas Appeal
Home Funds
Sundry Building Costs
TOTAL EXPENDITURE ON
CHARITABLE ACTIVITIES		 Unrestricted
Restricted
2021
2020
£
£
£
£
105,000
-
105,000
102,407
10,371
-
10,371
10,371
540
-
540
540
730
-
730
337
1,177
-
1,177
1,360
4,826
-
4,826
5,675
3,144
-
3,144
4,233
1,802
-
1,802
2,059
135
-
135
145
2,863
-
2,863
5,891
1,665
-
1,665
1,224
170
-
170
120
1,900
-
1,900
1,800
4,687
-
4,687
4,568
300
-
300
300
139,310
-
139,310
141,030
5,962
-
5,962
4,449
2,557
-
2,557
8,713
23,416
-
23,416
26,967
4,178
-
4,178
4,138
17,446
-
17,446
14,623
-
-
-
2,497
2,391
-
2,391
324
482
-
482
460
3,611
-
3,611
2,667
12,445
-
12,445
17,108
72,488
-
72,488
81,946
6,378
-
6,378
4,403
895
-
895
-
12,027
-
12,027
13,778
185
-
185
2,535
19,485
-
19,485
20,716
213
-
213
945
7,908
-
7,908
2,122
750
750
8,871
-
8,871
3,067
-
3,750
3,750
720,677
-
43,173
43,173
43,515
-
70,000
70,000
70,000
-
10,804
10,804
13,504
-
40,588
40,588
24,525
-
1,350
1,350
4,675
-
7,805
7,805
-
-
177,470
177,470
876,896
789,421
177,470
966,891
1,660,461

Page 26

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Notes forming part of the Financial Statement for the Year Ended 31 December 2021 – Continued

Operating Profit/Loss

The operating profit (loss) is stated after charging:-

Auditors Remuneration
For other services
Depreciation
6. Tangible Assets and Depreciation
Cost
Freehold
Land and
Legal Costs
Building
Cost
Building
Audio &
Visual
Balance at Start of Year
2,750,920
3,504,056
126,490
Additions During Year
-
-
-
Disposals
-
-
-
Balance at End of Year
2,750,920
3,504,056
126,490
Depreciation
Balance at Start of Year
-
560,000
106,329
Depreciation
During Year
-
70,000
4,032
Disposals
-
-
-
Balance at End of Year
-
630,000
110,361
Net Book Value (NBV)
At Start of Year
2,750,920
2,944,056
20,161
At End of Year
2,750,920
2,874,056
16,129		 Auditors Remuneration
For other services
Depreciation
6. Tangible Assets and Depreciation
Cost
Freehold
Land and
Legal Costs
Building
Cost
Building
Audio &
Visual
Balance at Start of Year
2,750,920
3,504,056
126,490
Additions During Year
-
-
-
Disposals
-
-
-
Balance at End of Year
2,750,920
3,504,056
126,490
Depreciation
Balance at Start of Year
-
560,000
106,329
Depreciation
During Year
-
70,000
4,032
Disposals
-
-
-
Balance at End of Year
-
630,000
110,361
Net Book Value (NBV)
At Start of Year
2,750,920
2,944,056
20,161
At End of Year
2,750,920
2,874,056
16,129		 Building
Fixtures &
Fittings
128,449
-
-		 Fixtures
& Fittings
112,978
-
-		 Equipment
143,842
5,023
-		 2021
£
4,687
1,900
92,830		 2020
£
4,568
1,800
97,282
Total
6,766,734
5,023
-
2,750,920
3,504,056
126,490		 128,449 112,978 148,865 6,771,757
-
560,000
106,329
-
70,000
4,032
-
-
-		 94,590
6,772
-		 87,746
5,046
-		 113,964
6,980
-		 962,629
92,830
-
-
630,000
110,361		 101,362 92,792 120,944 1,055,459
2,750,920
2,944,056
20,161		 33,859 25,232 29,878 5,804,106
2,750,920
2,874,056
16,129		 27,086 20,186 27,921 5,716,298

As shown above the purchase of the land at 90 Castle Boulevard totalled £2,750,920. Other costs totalling £3,504,056 relate to the purchase and development of the land .

7. Cash at Bank and in Hand

7. Cash at Bank and in Hand
Deposit and Current Accounts
Catering Float
Petty Cash
The current account balance is held with an automatic overdraft offset to the deposit account which ensu
credit.
8. Prepayments and Debtors
Tax Refundable on Gift Aid
Other Debtors and Prepayments
9. Creditors & Accruals: amounts falling due within one year
Creditors
Social Security and other taxes
Other Creditors
Bank Property Loan – falling due in 12 months
Bank Loan Interest
Accruals
Audit Fee		 2021
2020
773,676
721,326
60
60
6
6
773,742
721,392
res the account remains in
38,653
45,174
10,878
8,355
49,531
53,529
8,261
8,547
28,072
30,365
78,919
78,919
1,728
1,799
4,400
4,200
121,380
123,830

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Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Notes forming part of the Financial Statement for the Year Ended 31 December 2021 – Continued

10. Creditors: Amounts falling due after more than 1 year

Amounts falling due after more than 1 year
Bank Property Loans 1 - 2 years
Bank Property Loans 3 -5 years
Bank Property Loans after 5 years		 2021
2020
78,919
78,919
236,756
236,756
455,592
491,267
771,267
806,942

11. Commitments under Operating Leases – 31 December 2021

A new photocopier lease was agreed in April 2021 for three years.

The church had annual commitments under a non-cancellable operating lease as follows:-

12. Secured Debts

Bank Loans

2021 2020
1styear 1,566 651
1-5 years 4,698 -
2021 2020
850,186 885,861

The Bank holds security in the form of a legal charge over the Cornerstone Evangelical Church, Castle Boulevard, Nottingham. The loan is charged at 2.7% per annum above the base rate and is for a 25 year period.

13. Restricted Fund

For the Year Ended 31 December 2021
Details
a) Building Fund
b) Redeemer Building Fund
c) Restricted Home Funds
d) Christmas Appeal 01/01/20 – 24/02/21
e) Christmas Appeal 24/02/21 – 31/12/21
f) Christmas Appeal (old balance)
Unrestricted Fund
g) General Fund
For the Year Ended 31 December 2020
Details
a) Building Fund
b) Redeemer Building Fund
c) Restricted Home Funds
d) Christmas Appeal 13/3/18 – 19/03/20
e) Christmas Appeal 20/03/20 – 31/12/20
Unrestricted Fund
h) General Fund		 Balance b/f
Income
Expenditure
Transfer
Balance c/f
5,134,586
113,951
131,782
-
5,116,755
3,750
-
3,750
-
-
3,720
1,975
1,350
-
4,345
12,448
28,258
40,588
(88)
30
14,522
14,522
24
-
-
(24)
-
5,154,528
158,706
177,470
(112)
5,135,652
493,727
806,854
789,421
112
511,272
Balance b/f
Income
Expenditure
Transfer
Balance c/f
5,133,399
128,206
127,019
-
5,134,586
720,677
3,750
720,677
-
3,750
2,970
5,425
4,675
-
3,720
5,214
19,365
24,525
-
54
-
12,418
-
-
12,418
5,862,260
169,164
876,896
-
5,154,528
495,275
782,017
783,565
-
493,727

h) General Fund

a) Building Fund

A fund for premises to house the ministries of the Church; its outreach, its teaching and its fellowship. Gifts made to this fund are used for acquiring, running, furnishing and maintaining property to house the ministries and worship of Cornerstone Church and any other costs associated with building, renting, occupying and using such a property (includes non-taxable giving, Gift Aided giving and tax allowable on gifts).

b) Redeemer Building Fund

An amount of £3,750 has been paid out in the year, the balance is now fully paid.

c) Restricted Home Funds

Funds to support home mission (includes non-taxable giving, Gift Aided giving and tax allowable on gifts).

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Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Notes forming part of the Financial Statement for the Year Ended 31 December 2021 - Continued

d) 2020/21 Christmas Appeal

Funds raised in December 2020 and January 2021 for Safe Families, Open Homes, Jericho Road, Friends of CME and Together for the Family.

e) 2021/22 Christmas Appeal

Funds raised in December 2021 and January 2022 for Safe Families, Open House, Jericho Road, Friends of CME and Together for the Family.

f) Christmas Appeal Old Balance

Funds raised in December 2018 and January 2019 for Syrian Refugees, Hope Nottingham and Open Doors. Funds raised in December 2019 and January 2020 for Syrian Refugees, CME Medical Relief in Democratic Republic of Congo and Open House Nottingham Night Stop Project. All now spent.

g) General Fund

This is the balance of unrestricted funds.

14. Analysis of Net Assets between funds
For the Year Ended 31 December 2021
Fixed Assets
Current Assets
Current Liabilities
Long Term Liabilities
Net Assets at 31.12.21
14. Analysis of Net Assets between funds
For the Year Ended 31 December 2020
Fixed Assets
Current Assets
Current Liabilities
Long Term Liabilities
Net Assets at 31.12.20		 General
Funds
Restricted
Funds
48,107
5,668,191
505,626
317,647
(42,461)
(78,919)
-
(771,267)
511,272
5,135,652
General
Funds
Restricted
Funds
55,110
5,748,996
483,528
291,393
(44,911)
(78,919)
-
(806,942)
493,727
5,154,528		 Total Funds
2021
Total Funds
2020
5,716,298
5,804,106
823,273
774,921
(121,380)
(123,830)
(771,267)
(806,942)
5,646,924
5,648,255
Total Funds
2020
Total Funds
2019
5,804,106
5,894,334
774,921
1,432,023
(123,830)
(127,917)
(806,942)
(840,905)
5,648,255
6,357,535

15. Taxation

The charitable company is exempt from Corporation Tax on its charitable activities. The Elders have reviewed Cornerstone Evangelical Church’s activities and are confident that they fulfil charitable aims and as such are considered to be for the primary purpose.

16. Pension Commitments

The charity contributes to a defined contribution pension scheme. The assets are held and administered by individually selected pension providers. The pension cost charge represents contributions payable by the charity to the pension scheme and amounts to £18,246(2020: £16,114).

17. FRC Ethical Standard – Provisions Available for Small Entities

In common with many other entities of our size and nature, we use our auditors to assist with the preparation of the Financial Statements.

Page 29

Cornerstone Evangelical Church A Charitable Company Limited by Guarantee Company Number 06805205

Notes forming part of the Financial Statement for the Year Ended 31 December 2021 - Continued

18. Cash Flow Statement

Reconciliation of net movement in funds to net cash flow’s from operating activities:

Reconciliation of net movement in funds to net cash flow’s from operating activities:
Net incoming resources
Adjustments:
Interest Paid
Investment Income
Depreciation Charges
(Increase)/ Decrease in Debtors
Increase/ (Decrease) in Creditors		 2021
£
(1,331)
43,173
(1,603)
92,830
3,998
(2,450)
134,617		 2020
£
(709,280)
43,515
(2,699)
97,282
67,284
(4,087)
(507,985)

19. Redeemer Church – Contingent Liability

During 2017 a church known as the Redeemer Church was established in the west of the city using resources of Cornerstone Church, both money and people. Up to 1 July 2019 the Redeemer Church remained under the control of and received financial support from Cornerstone Church. In 2019 a bid was accepted to purchase the premises known as Beeston Town Hall for an amount of £425,000. The purchase of the property took place after 31 December 2019 and funds held at the year end date of £720,677 were used to aid this purchase.

The costs to develop the Town Hall may be in the region of £1 million pounds. A new charitable incorporated organisation has been formed which has taken over the running of the Redeemer Church.

At their meeting on 10[th] December 2020 the Cornerstone members agreed to underwrite development of the Town Hall by passing the following resolution with 100% agreement.

Resolution: In the light of their partnership in the Gospel it is resolved that Cornerstone Evangelical Church stand as Guarantor for the borrowing by Redeemer Church Nottingham of £875,000 from CAF Bank for the purpose of carrying out the redevelopment of Beeston Town Hall.

20. Related Party Transactions

Sam Payne is employed by Cornerstone Evangelical Church but is seconded for 50% of his time to Redeemer Church. This cost is shown as a charitable donation of £14,836 (see note 3).

There are no transactions to note other than those shown in note 3.

Page 30