THE CITY CHURCH
Report and Financial Statements for the year ended 31 August 2023
Company number: 6732225
Registered charity number: 1130031
THE CITY CHURCH
Trustees’ Report and Financial Statements for the year ended 31 August 2023
| Index | |
|---|---|
| Page | |
| Trustees’ report | 1 |
| Independent examiner’s report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Statement of cash flows | 7 |
| Notes to the financial statements | 8 |
| ------------------------------------------ | |
| Company number | 6732225 |
| Registered charity number | 1130031 |
| Secretary | Mr S D Clark |
| Trustees | Mrs K Bailey |
| Mr S D Clark | |
| Mr P Gregory | |
| Mr A Ntung | |
| Mr C Pickford | |
| Mr M S Segal | |
| Mrs F Thomas | |
| Mr T J Wilson | |
| Registered office: | 34a Simmonds Road |
| Wincheap Industrial Estate | |
| Canterbury | |
| Kent | |
| CT1 3RA | |
| Independent examiner | Mr C M Geary |
THE CITY CHURCH
Trustees’ Report
The Trustees present their annual report and financial statements of The City Church for the year ended 31 August 2023.
The City Church is a company limited by guarantee, and it is registered as a charity with the Charity Commission. Its principal address is 34a Simmonds Road, Wincheap Industrial Estate, Canterbury, Kent, CT1 3RA.
Principal activity
The objectives of The City Church are the advancement of the Christian religion according to evangelical and biblical principles.
Trustees
The trustees during the year were as follows:
Mrs K Bailey Mr J P Christopher – resigned 18 January 2023 Mr S D Clark Mr P Gregory Mr C Pickford Mr M S Segal Mr T J Wilson Mr A Ntung – appointed 24 July 2023 Mrs F Thomas – appointed 6 November 2023
All of the trustees are also directors of the company. Mr A Ntung was appointed a director on 24 July 2023 and Mrs F Thomas was appointed a director on 6 November 2023, while Mr J P Christopher resigned during the financial year on 18 January 2023.
Review of activities and achievements
The church is led by a four man Eldership team, with one being both a full-time employee and a director. They are supported in the day-to-day operations by a team of ten men and women comprising six full-time and four parttime staff.
During the year the church has continued to grow and thrive with Sunday service attendance regularly over 500 people, necessitating a move to a larger venue. The church continues to utilise technology to stream Sunday meetings to reach a wider audience and provide access to those who are unable to come to church services in person.
During the year the church continued a social action project to support those in the local community in need. We also reviewed and relaunched our membership values to better reflect our mission statement and ethos as a church.
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THE CITY CHURCH
Trustees’ Report
(continued)
Weekly worship meetings were held at St Stephens School in Canterbury, before a move to Canterbury Academy. Other church activities and programmes listed below continued throughout the year:-
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Weekly and monthly prayer meetings.
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Weekly Small Groups where church members meet in small gatherings usually 8 – 16 in number. These meetings include, inter alia, worship, prayer and Bible study.
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Children’s work is undertaken primarily on Sunday mornings.
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Regular youth work takes place during the week and weekends.
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A “Coffee and Chaos” meeting is held during the week for mothers and toddlers.
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Weekly meetings for students for praise, worship, prayer and teaching.
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“Make Lunch” is an outreach project designed to engage with and provide food during school holidays for families reliant on school dinners.
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Various Alpha courses are held to enable non-Christians to discuss and find out more about Christianity. During the year these have included courses for adults, students and youth.
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Various community events take place throughout the year.
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Marriage enrichment courses.
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Specific Men’s and Women’s events
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The church also works with other churches in Canterbury to support various community initiatives such as Street Pastors and Healing on the Streets.
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Volunteer workers undertake a formal teaching programme during their designated period to equip them for future roles and leadership either in the church or elsewhere.
The church has continued to thrive, with finances remaining stable, Sunday attendance and Small Groups significantly increasing. As a church we have been called to be an equipping and sending church, yet despite some members moving on during the year on missional activities the church continues to attract new members, and as a result membership has grown.
A main objective of the church is the advancement of the Christian Religion and to this end the church has supported various churches in the East Kent region as well as church plants into continental Europe. In previous years we have sent church members to begin church plants in France (Lille), Finland (Helsinki), Colchester (UK), Whitfield (UK) and a Gospel Plant into Sheppey (UK), and continue to support these ventures financially.
Currently the church rents accommodation for administrative offices and various Church meetings. However, it aims to buy premises and with this in mind it has built up a “Building Fund” over a number of years to achieve this purpose.
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THE CITY CHURCH
Trustees’ Report (continued)
Review of Finances
The statement of financial activities for the year is set out on page 5. A summary of the financial results is set out below.
The Charity’s income during the year was £506,000, and expenses were £482,000. All donated income is derived from Church members and no outside fund raising is undertaken. All funds donated to the Charity are used either for the day-to-day operation and meetings of the Church or to further Christian work in the UK or overseas in accordance with the objectives of the Charity. A separate building fund is maintained as funds are raised towards a new building project, and this has continued to grow.
Regular monthly giving has been sustained at a high level, which has allowed the Church to maintain its day-today operations and its general cash reserves. These general reserves are important, enabling the Church to meet any additional expenditure and to support any new Church work or project.
A prime objective of the Church is to give away an average of 10% of unrestricted income each year to support the advancement of the Christian religion in the UK and overseas. During the period covered by these accounts the amount given away or set aside for church planting projects has met this target.
Trustees’ responsibilities regarding the financial statements
Company law requires the trustees to prepare financial statements which give a true and fair view of the state of affairs of the Church and of the income and expenditure of the Church for that period. In preparing those financial statements, the trustees are required to:-
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. select suitable accounting policies and then apply them consistently;
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. observe the methods and principles of the Charities Statement of Recommended Practice;
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. make judgements and estimates that are reasonable and prudent;
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. follow applicable accounting standards, subject to any material departures disclosed and explained in the financial statements; and
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. prepare the financial statements on the going concern basis unless it is inappropriate to assume that the Church will continue in existence.
The trustees have overall responsibility for ensuring that the Church has an appropriate system of controls, financial and otherwise. They are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Church and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Church and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 in preparing the annual report and financial statements of the Church.
......................................................................... S D Clark
22 May 2024
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Independent Examiner’s Report to the Trustees of THE CITY CHURCH
I report to the trustees on my examination of the accounts of The City Church (the church) for the year ended 31 August 2023, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and the related Notes to the accounts.
Respective responsibilities of Trustees and Examiner
The church’s trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this period under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. I am qualified to undertake the examination by being a member of the Institute of Chartered Accountants in England and Wales.
It is my responsibility :
. to examine the accounts under section 145 of the 2011 Act;
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. to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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. to state whether particular matters have come to my attention.
Basis of Independent Examiner’s Report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the church and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. My report is limited to those matters set out in the statement below.
Independent examiner’s statement
I confirm that no matter has come to my attention in connection with the examination giving me reasonable cause to believe:
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1 accounting records were not kept in respect of the church in accordance with section 130 of the 2011 Act; or
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2 the accounts do not accord with those records; or
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3 the accounts do not comply with the accounting requirements of the 2011 Act.
I have not come across any other matter in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Christopher Geary Chartered Accountant Geary Partnership Church Hill Farm, Elmstone, Canterbury, Kent, CT3 1HN
22 May 2024
4
THE CITY CHURCH
Statement of Financial Activities for the year ended 31 August 2023
| Unrestricted funds Note £ INCOME & EXPENDITURE Income Donations 412,530 Grant - Charitable activities – church & social 20,180 Interest receivable 4,113 _ Total income 436,823 Expenditure Charitable activities & support costs 3 (425,728) _ Net income/(expenses) before transfers 11,095 Transfers between funds - _ Net movement in funds 11,095 RECONCILIATION OF FUNDS Total funds brought forward 933,460 _ Total funds carried forward 944,555 |
Restricted funds £ 69,265 - - - _ 69,265 (56,629) _ 12,636 - _ 12,636 44,500 _ 57,136 |
Total funds 2023 £ 481,795 - 20,180 4,113 _ 506,088 (482,357) _ 23,731 - _ 23,731 977,960 _ 1,001,691 |
Total funds 2022 £ 476,898 1,875 12,157 591 _ 491,521 (520,247) _ (28,726) - _ (28,726) 1,006,686 _ 977,960 |
|---|---|---|---|
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THE CITY CHURCH
Balance Sheet at 31 August 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | £ | £ | |
| Tangible fixed assets | |||||
| Equipment | 4 | 12,242 | 11,584 | ||
| Current assets | |||||
| Debtors | 5 | 80,905 | 72,085 | ||
| Bank balances | 924,685 | 910,266 | |||
| __ | __ | ||||
| 1,005,590 | 982,351 | ||||
| Current liabilities | |||||
| Creditors due within one year | 6 | (16,141) | (15,975) | ||
| __ | __ | ||||
| Net current assets | 989,449 | 966,376 | |||
| __ | __ | ||||
| Net assets | 1,001,691 | 977,960 | |||
| __ | __ | ||||
| REPRESENTED BY: | |||||
| Funds | |||||
| Unrestricted funds | 944,555 | 933,460 | |||
| Restricted funds | 57,136 | 44,500 | |||
| __ | __ | ||||
| 1,001,691 __ |
977,960 __ |
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
For the year ended 31 August 2023, the company was entitled to exemption from audit under section 477 of the Companies Act 2006, and no notice has been deposited under section 476.
The trustees, who are also the directors of the company, acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and preparation of accounts.
These financial statements were approved and authorised for issue by the Board on 22 May 2024.
......................................................................... S D Clark
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Company number.. 6732225
THE CITY CHURCH
Statement of Cash Flows for the year ended 31 August 2023
| £ Operating activities Net income/(expenditure) for the year Adjustments Interest received Depreciation Movements in working capital (Increase)/decrease in debtors Increase/(decrease) in creditors Cash generated by/(used in) charitable operations Investing activities Equipment purchased (5,545) Loan repaid by Hope Church, Wymondham 25,000 Interest received 4,113 __ Net cash flows from investing 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 REPRESENTED BY: Bank balances |
2023 £ £ 23,731 (4,113) 4,887 (33,820) 166 _ (9,149) (4,101) 50,000 591 _ 23,568 _ 14,419 910,266 _ 924,685 __ 924,685 |
2022 £ (28,726) (591) 3,778 (7,127) 13,220 _ (19,446) 46,490 _ 27,044 883,222 __ 910,266 |
|---|---|---|
| __ 910,266 |
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THE CITY CHURCH
Notes to the financial statements for the year ended 31 August 2023
1 General information
The City Church is a public benefit entity and a company limited by guarantee and has no share capital. It is a registered charity.
2 Accounting policies
Basis of accounting
The accounts have been prepared under the historical cost convention and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (Charities SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Fund accounting
Unrestricted funds comprise accumulated surpluses and deficits on general funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Church and which have not been designated for other purposes.
Designated funds comprise unrestricted funds which have been put aside at the discretion of the trustees for particular purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions declared by their donors.
Income
All income is included in the Statement of Financial Activities when the Church is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Expenditure
All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Expenditure on charitable activities comprises all expenditure incurred directly in pursuance of the Church’s charitable objectives. Governance costs are those costs incurred in connection with administration of the Church and compliance with constitutional and statutory requirements. No amounts are included in the financial statements for the value of services donated by volunteers.
Tangible fixed assets and depreciation
Tangible fixed assets are capitalised and included at cost. Depreciation is provided on fixed assets at an annual rate of 20% on a straight line basis, over their expected useful lives.
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THE CITY CHURCH
Notes to the financial statements for the year ended 31 August 2023
(continued)
3 Expenditure
| Unrestricted Restricted funds funds £ £ Salaries 223,827 - Pension costs 16,880 - Staff costs 1,782 32 Sabbatical costs - - Operational costs 40,564 - Communications/IT 9,300 34 Meetings 24,258 356 Projects & Ministries 45,789 308 Training 2,130 425 Gifts for others - 23,980 Global Community - 30,458 Tithes – paid out 45,833 1,036 Building refurbishment & fees 9,278 - Accounts examination fee 1,200 - Depreciation 4,887 - _ _ 425,728 56,629 |
Total funds 2023 £ 223,827 16,880 1,814 - 40,988 9,334 26,519 40,107 649 23,980 30,458 53,178 8,536 1,200 4,887 _ 482,357 |
Total funds 2022 £ 212,668 16,199 1,901 2,578 33,913 8,162 20,720 28,576 3,314 33,388 32,328 46,208 75,314 1,200 3,778 _ 520,247 |
|---|---|---|
The average number of employees was 10 (2022: 10). No employee received remuneration above £60,000.
4 Fixed assets - Equipment
| Cost Brought forward Additions Disposals Carried forward Accumulated depreciation Brought forward Charge for the year Disposals Carried forward Net book value Brought forward |
£ 39,985 5,545 (3,948) __ 41,582 _ 28,401 4,887 (3,948) 29,340 ___ 11,584 |
|---|---|
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Carried fonvard 12,242 li
THE CITY CHURCH
Notes to the financial statements for the year ended 31 August 2023
(continued)
| 5 Debtors Income tax recovered Other debtors & prepayments Loan to Hope Church, Wymondham |
2023 £ 57,623 23,282 - ______ 80,905 |
2022 £ 38,386 8,699 25,000 ______ 72,085 |
|---|---|---|
| 6 Creditors – due within one year Creditors & accruals Deferred income |
2023 £ 13,197 2,944 ______ 16,141 |
2022 £ 6,189 9,786 ______ 15,975 |
|---|---|---|
7 Restricted funds
| Sheppey Global Community Gifts for others Total restricted funds |
Brought forward £ 10,877 33,623 - __ 44,500 |
Income Expenditure £ £ 7,081 2,191 38,204 30,458 23,980 23,980 _ _ 69,265 56,629 |
Transfers in/(out) £ - - - __ - |
Carried forward £ 15,767 41,369 - __ 57,136 |
|---|---|---|---|---|
8 Analysis of net assets between funds
| Unrestricted funds £ Tangible fixed assets 12,242 Debtors & prepayments 72,255 Bank balances 872,421 Creditors due within one year (12,363) __ Net assets 944,555 |
Restricted funds £ - 8,650 52,264 (3,778) __ 57,136 |
Total funds £ 12,242 80,905 924,685 (16,141) __ 1,001,691 |
|---|---|---|
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