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2020-12-31-accounts

Charity No. 1130780

Thornton Heath Evangelical Church

Report and Financial Statements

31 December 2020

Thornton Heath Evangelical Church

Page Legal and administrative information Report of the trustees 3-6 Independent examiner’s report Statement of financial activities Balance sheet Cash flow statement 10 Notes to the financial statements 11-18

1

Thornton Heath Evangelical Church

Legal and administrative information

Trustees:

Mr SPJ Ridgeway (Pastor)(Appointed 01/09/2020) Mr GJS Bull (Pastor) (Resigned 31/08/2020) Mr CE Appleton (Resigned 01/08/2020) Mr WN Bismark (Resigned 31/08/2020) Mr DA Bristow Mr DC Damani Mr L Dente Mr PA Dunn (Resigned 10/08/2020) Mr DWJ Easton Mr BFV Hadjard Mr SM Harris Mr EC Powell Mr PJ Taylor Mr IE Whybrow

Charity registration number:

1130780

Address:

Corner of Malvern Road and London Road Thornton Heath Surrey CR7 7LH

Bankers:

CAF Bank, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ Lloyds Bank plc, Croydon Central Branch, High Street, Croydon, Surrey, CR9 1TL

Solicitors:

Cooke Matheson, 8/9 Gray's Inn Square, London, WC1R 5JQ

Independent examiner:

Miriam Hickson FCA CTA Chartered Accountant Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW

2

Thornton Heath Evangelical Church

Report of the trustees for the year ended 31 December 2020

The Trustees submit their annual report and the financial statements for the year ended 31 December 2020. The Trustees have adopted the provisions of the Statement of Recommended Practice (Charities SORP (FRS102) and Financial Reporting Standard 102 (FRS102)).

Structure, governance and management

The Church was originally constituted by a Trust Deed dated 20 October 1904 with the object of promoting religion on evangelical protestant lines. In 2009, the Church was registered under the Charities Act 2006, having previously been excepted from registration. The Church adopted a constitution and Church Rules on 22[nd] October 2008 (ratified on 28[th] January 2009 as required under the original church rules) and was registered with the Charity Commission on 28[th] July 2009.

The Church officers (Pastor, Elders, and Deacons) are Managing Trustees under the constitution and are responsible for directing the affairs of the Church in accordance with the aims set out in the constitution and they meet regularly to review the activities of the Church.

The Managing Trustees of the Church are the persons appointed as Church officers as laid down in Section 6 of the constitution, subject to them not being disqualified from being trustees by Section 178 of the Charities Act 2011. Church officers are appointed by the Church membership at a Church Business Meeting, in accordance with Section 2.4 of the Church Rules.

The Trustees who served during 2020 and those in office at the date of this report are set out on page 2.

The Trustees are considered to be the Key Management Personnel of the church.

Objectives and activities

The Church was established with the aim of the advancement of the Christian faith and promoting the evangelical protestant religion. The church seeks to serve the Thornton Heath community through encouraging wholehearted discipleship of Jesus Christ, firstly knowing Him as their Saviour, and also through their love and service for Him. This is continued primarily through public worship each Sunday morning and evening, prayer and Bible study, and through other weekly meetings and activities, including activities for children and young people. In addition, there would normally be a weekly Bible study meeting for women, a monthly meeting for retired men and a monthly lunch provided for elderly members of the congregation and those in the neighbourhood. The Church would also carry out other evangelistic and outreach ministries. Most of these ministries are carried out at its premises in London Road, Thornton Heath, Surrey.

Achievements and performance

Due to the Covid19 pandemic, there has been considerable disruption to church life. When churches have been permitted to open, the church has run two Sunday morning services (to be able to manage numbers expected to attend), a Sunday evening service and a midweek Bible study and prayer meeting. When churches have been required to close, services have been recorded for viewing on the church’s YouTube channel. A midweek morning devotional for those who can attend has been run on Zoom for the duration of the pandemic. A children’s online activity has also been recorded for YouTube and is published on Friday afternoons during term

3

time. In keeping with the government guidance for places of worship, the seating in the main church was re-arranged to facilitate social distancing, services were limited to one hour’s duration and no congregational singing was permitted. The church has been using an online booking system to regulate numbers and for use with the Test and Trace program. The Pastor has continued to make pastoral visits within the permitted guidance, and those on social media have been updated with requests for prayer. In place of the normal quarterly business meetings, the trustees have sent out letters to church members with information they would normally receive in such meetings, including a quarterly financial summary.

One significant change in 2020 was a change of Pastor, the previous incumbent taking a teaching role in a Bible college overseas. The new Pastor had already been identified and appointed earlier in 2020 and there was handover of responsibilities at the end of August.

In accordance with the objectives outlined above, the public services continue to be an encouragement to the congregation through the preaching of the Bible each week, to seek to know Jesus Christ as their Saviour and to love and serve Him.

Public Benefit

The Trustees have complied with the duty to have due regard to guidance published by the Charity Commission, including public benefit guidance.

The Trustees believe that the gospel of Jesus Christ transforms lives and thereby has a great benefit on the wider society in general, and particularly to the people of the local area where the members of a particular church are located. Therefore, the Church continues to provide a public benefit in providing weekly Sunday services for Divine Worship, and a mid-week meeting for those who wish to meet for prayer and to study the Bible.

Sadly, most of the other activities of the church have had to be put on hold during the pandemic. However, it is the trustees desire that many of these activities re-commence as soon as possible once the church is permitted to do so, and subject to appropriate risk assessments.

Risks

The Trustees meet each month and review the principal risks facing the church and any new risks that become apparent. The church has a Health and Safety Policy in place, which is to be subject to annual review.

The Church also has a “Safeguarding Policy for children, young people and vulnerable adults” in place.

Trustees training

New trustees are provided with relevant guidance issued by the Charity Commission. The current Church Treasurer is a member of the Association of Church Accountants and Treasurers (ACAT) and attends relevant courses from time to time to keep his knowledge of applicable Charity accounting and trustee related requirements up to date.

Financial review

The attached financial statements disclose the financial position of the Church at 31 December 2020. The Trustees again acknowledge the provision and goodness of God in providing for the ongoing financial needs of the Church.

4

In general, the policy of the Trustees is to distribute substantially all of the income of the Restricted Funds during the year subject to suitable needs being identified and to retain a working balance within the General Account and the Missionary Fund to provide a contingency to meet routine expenditure in the event of a reduction in offerings.

Reserves Policy

It is the policy of the Trustees to maintain reserves of the equivalent of three month’s general account expenditure. This equates to about £30,000. The unrestricted reserves at the end of the year were £2,224,676 of which £2,223,058 represent fixed and net current assets held in the Capital Fund. At the end of the year the cash balances were £216,776.

The trustees will continue to review the reserves during this year, as there has been a reduction in income towards the end of 2020, and there will be a need to fund future missionary support.

Grant Making Policy

The Church makes discretionary grants to institutions and individuals.

The amount and duration of grants are considered at the discretion of the Trustees. Where such grants are for a significant amount, or granted on regular basis, these are agreed by the Church members at a Church Business Meeting.

The Church primarily supports Missionary work and other Christian institutions and Christian workers whose beliefs and practices accord with the Church's aims and objectives.

On occasions, the Church also provides humanitarian aid as well as helping in cases of individual financial hardship. This will be either given directly to beneficiaries or channelled through a trusted intermediary Church or other organisation.

Plans for the future

At the time of this report the country continues to go through a period of uncertainty due to the Coronavirus pandemic. Although the church is meeting again for Sunday and midweek services, there remains uncertainty regarding some of the other activities and ministries that the church has previously engaged in. The trustees continue to monitor the situation together with the government advice as it is released.

The accounts have been prepared on the basis that the church continues to operate as a going concern. Due to the restriction on public gatherings, cash income has reduced, although this has partly been offset by donations via electronic channels. There has also been a reduction in income due to a number of substantial donors having moved away within the last year. However, the trustees are satisfied that the church has sufficient reserves to cover the reduction in income in the short term.

In May 2018, the Church appointed a Community Outreach Co-ordinator which was initially for a period of three years. The trustees will review the position during the year.

The apprenticeship program ended in the summer of 2020. One of the apprentices was appointed as the church Youth Worker from September 2020, and another took a position on the ministry team at another church in North London. There are no plans to take on new apprentices in the short term.

5

Responsibilities of the trustees

Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity at the end of the year and of its financial activities during the year then ended. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.

Approved by the trustees and signed on their behalf by:

(Original signed copy held by the charity)

P J Taylor Trustee

Date: 19/07/2021

6

Thornton Heath Evangelical Church

Independent examiner’s report to the trustees of Thornton Heath Evangelical Church I report to the charity trustees on my examination of the accounts of the Thornton Heath Evangelical Church (the Church) for the year ended 31 December 2020 set out on pages 8 to 18.

Responsibilities and basis of report

As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Church’s accounts as carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Church as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Report) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of 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 the Republic of Ireland (FRS 102).

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

(Original signed copy held by the charity)

Miriam Hickson CTA FCA Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW

Date: 20/07/2021

7

Thornton Heath Evangelical Church Statement of Financial Activities for the year ended 31 December 2020

Note
Income from:
Donations and Legacies (Inc. Gift Aid recovered)
Other Income:
Other income
Total Income
Expenditure on:
Charitable activities
2
Other expenditure
Total Expenditure
Net Income/(Expenditure)
Transfers:
Transfers between funds
Movement in Funds
Funds brought forward (1st January 2020)
Funds carried forward (31st December 2020)
--Unrestricted Funds--
--Unrestricted Funds--
General
Account
£
Capital
Fund
£
Restricted
Funds
£
Total
2020
£
General
Account
£
Capital
Fund
£
Restricted
Funds
£
Total
2019
£
111,384
4,988
24,385
140,757
113,569
26,689
25,640
165,898
1,620
158
4,042
5,820
915
543
1,109
2,567
113,004
5,146
28,427
146,577
114,484
27,232
26,749
168,465
117,364
27,745
26,304
171,413
116,252
36,081
34,124
186,457
-
155
4,042
4,197
-
-
1,109
1,109
117,364
27,900
30,346
175,610
116,252
36,081
35,233
187,566
(4,360)
(22,754)
(1,919)
(29,033)
(1,768)
(8,849)
(8,484)
(19,101)
-
-
-
-
(776)
-
776
-
(4,360)
(22,754)
(1,919)
(29,033)
(2,544)
(8,849)
(7,708)
(19,101)
5,978
2,245,812
7,222
2,259,012
8,522 2,254,661
14,930
2,278,113
1,618
2,223,058
5,303
2,229,979
5,978 2,245,812
7,222
2,259,012

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above.

8

Thornton Heath Evangelical Church

Balance sheet at 31 December 2020

Note
Fixed assets
Tangible fixed assets
4
Current assets
Stocks
Debtors
5
Cash at bank and in hand
Creditors: amounts falling due within one year
6
Net current assets
Total Assets less current liabilities
Creditors falling due after more than one year
Net assets
7
Funds:
Unrestricted funds
General account
Capital fund
Restricted funds
3
Total funds
2020
£
2,006,890
3,000
5,719
216,776
225,495

(2,406)

223,089
2,229,979
-

2,229,979

1,618
2,223,058
2,224,676
5,303
2,229,979
2019
£
2,006,890
3,500
33,515
217,675
254,690
(2,568)
252,122
2,259,012
-
2,259,012
5,978
2,245,812
2,251,790
7,222
2,259,012

The financial statements on pages 8 to 18 were approved by the trustees on 15[th] July 2021 and signed on their behalf by

(Original signed copy held by the charity)

P J Taylor Trustee

Date: 19/07/2021

9

Thornton Heath Evangelical Church

Cash Flow Statement Year Ending 31[st] December 2020

Net Cash inflow/(outflow) from operating activities
Capital expenditure and financial investment
Property: Net sale proceeds
Financing: Loan repayments within the year
Increase/(decrease) in cash in the year
Net cash resources at 1stJanuary
Net cash resources at 31st December
Notes to the Cash Flow Statement
Reconciliation of net movement in funds to
net cash flow from operating activities
Net movement in funds for the year
Depreciation of Stock
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash flow from operating activities
2020
2019
£
£
(899)
(44,949)
-
-
-
-
(899)
(44,949)
217,675
262,624
216,776
217,675
(29,033)
(19,101)
500
500
27,796
(26,478)
(162)
130
(899)
(44,949)

10

Thornton Heath Evangelical Church

Notes to the financial statements

1 Accounting policies

(a) Basis of preparation

The charity meets the definition of a public benefit entity under FRS 102.

(b)

Funds

The General Account includes Sunday offerings, electronic payments received from regular donors and other unrestricted gifts which may be used for any purpose within the terms of the constitution. Other gifts received for specified purposes are recorded in a Restricted Fund. The main Church premises, bookroom stock, legacies and interest received are all recognised in the Capital Fund. The General Account and the Capital Fund are unrestricted funds.

(c) Property

The main church property is included in the Balance Sheet at the original estimate of the value of the original main Church, plus the actual rebuilding costs paid during the rebuilding of the new halls and foyer in the period 2013/2014. The original estimate for the main Church has not been valued by an independent expert. On transition to FRS 102, this carrying value was treated as deemed cost going forward.

Freehold land is not depreciated. No depreciation is provided on freehold buildings where their estimated residual value is not less than their carrying amount.

(d) Stock

The value of the book-room stock is valued at the lower of cost and net realisable value.

(e)

Income

Offerings and donations are accounted for on receipt. Legacies are accounted for when notified and confirmed as probable by a competent executor, and the church has been supplied with a realistic estimate with sufficient accuracy of the value of the legacy.

(f) Expenditure

Expenditure is accounted for as amounts fall due.

Direct charitable expenditure comprises all expenditure directly related to the objects of the Church. Governance costs comprise expenditure related to the cost of compliance with statutory requirements.

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Thornton Heath Evangelical Church

Notes to the financial statements (continued)

(g) Grants

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount payable. A provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the charity that would permit the charity to avoid making the future payment(s), settlement is probable, and the effects of discounting is material.

(h)

Debtors

Grants receivable and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

(k)

Financial Instruments

The charity only has financial assets and 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.

12

Thornton Heath Evangelical Church

Notes to the financial statements (continued)

2 Expenditure

Charitable activities

Local ministry costs
Repairs, maintenance and cleaning
Telephone, postage, printing and stationery
Heating
Insurance
Sundry expenditure
Bank charges
Apprenticeship costs
Governance costs: Independent Examination
Depreciation of Bookroom stock
Missionary Furlough Costs
Grants: (See note 3)
2020
£

74,868
8,984
4,950
3,977
4,349
12,486
60
27,245
1,840
500
5,850
145,109
26,304
171,413
2019
£
71,799
9,408
5,877
4,851
4,217
13,273
60
35,581
1,735
500
5,032
152,333
34,124
186,457

Employee information

Included in Charitable expenditure above are the following employee costs:

Salaries
Employer's National Insurance
Employer Pension Contributions
Average number of full-time equivalent employees
2020
£
100,695
1,978
4,748

107,421

**4.5 **
2019
£
98,133
1,841
4,192
104,166
5.5

There were no employees who earned £60,000 or more in the year.

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Thornton Heath Evangelical Church

Notes to the financial statements (continued)

3 Restricted funds

Balance Income Expenditure Transfers Balance Balance Income Expenditure Transfers Balance
B/Fwd C/Fwd B/Fwd C/Fwd
01/01/2020 31/12/2020 01/01/2019 31/12/2019
£ £ £ £ £ £ £ £ £ £
Missionary 5,131 19,015 21,000 - 3,146 9,271 16,060 20,200 - 5,131
Inasmuch - 475 - - 475 1,266 330 2,372 776 -
Inasmuch (Food bank) 1,334 20 14 - 1340 1,395 - 61 - 1,334
Harvest - 4,875 4,875 - - - 7,250 7,250 - -
Evangelism 757 - 415 - 342 1,198 - 441 - 757
African Pastors Conference - - - - - 1,800 - 1,800 - -
Apprenticeship Fund - - - - - - 2,000 2,000 - -
Suspense - 4,042 4,042 - - - 1,109 1,109 - -
**Total ** 7,222 28,427 30,346 - 5,303 14,930 26,749 35,233 776 7,222

The Restricted funds were established for the following purposes:

Missionary - to support missionary work in the UK and overseas Inasmuch - to assist members of the Church and other Christians financially as the need arises.

Inasmuch (Food bank) – to provide visitors and those in need with food parcels.

Harvest - to support a designated beneficiary or beneficiaries as decided by a Church meeting each year: In 2020, the offering (£4,875) was given to World Orphans to support their work in Guatemala.

Evangelism – to provide funds relating to the church’s outreach and evangelism activities.

African Pastors Conference – to provide funding towards a pastor’s conference being run by “The Word For The World” in 2017, at which the Pastor was expected to be attending. This fund closed in 2019.

Apprenticeship – Funds donated to support the church’s Apprenticeship scheme. The fund closed at the end of 2019.

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Thornton Heath Evangelical Church

Notes to the financial statements (continued)

Suspense – funds that are not specifically part of the charitable activities the church, but for which the funds are passed through the church accounts. These funds include ET and EN personal subscriptions by members and friends, and personal gifts placed in the offering which are then distributed.

Significant distributions from the Missionary and Harvest funds amounting to £1,000 or more: Mission Africa 12,000 AIM International 3,200 Operation Mobilisation 4,400 World Orphans 4,875

Total grants included in resources expended:

Total grants included in resources expended:
Individuals
Institutions
Number
£
54
429
6
25,875
50
26,304

15

Thornton Heath Evangelical Church

Notes to the financial statements (continued)

4 Tangible fixed assets

Freehold land Total
Asset cost & buildings 2020
£ £
At 1 January 2020 2,006,890 2,006,890
Additions: - -
Disposals: - -
At 31 December 2020 2,006,890 **2,006,890 **
5
Debtors
Prepayments
Other debtors
6
Creditors: amounts falling due within one year
Accruals
2020
£
324
5,395
5,719
2020
£
2,406
2,406
2019
£
-
33,515
33,515
2019
£
2,568
2,568

7 Analysis of net assets between funds

Tangible fixed assets
Net current assets
Creditors
due
after
more than one year
General
£
Capital
£
Restricted
£
Total
2020
£
General
£
Capital
£
Restricted
£
Total
2019
£
-
2,006,890
-
2,006,890
-
2,006,890
-
2,006,890
1,618
216,168
5,303
223,089
5,978
238,922
7,222
252,122
-
-
-
-
-
-
-
-
1,618
2,223,058
5,303
2,229,979
5,978
2,245,812
7,222
2,259,012

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Thornton Heath Evangelical Church

Notes to the financial statements (continued)

8 Trustee Disclosures

The Trustees below were paid for services as employees, other than those of a Trustee, as permitted by the terms of the constitution. These trustees are absent from that part of the Trustees meeting where their salary for the following tax year is agreed.

2020 2019
£ £
Stephen Ridgeway (Pastor from 01/09/20)
Salary 12,333 -
Employer’s Pension Contributions 617 -
Gordon Bull (Pastor to 31/08/20)
Salary 21,782 29,340
Employer’s Pension Contributions 1,089 1,323
Provision of Manse (Paid by church to landlord) 8,800 13,200
Lucio Dente (Community outreach co-ordinator)
Salary 9,457 9,261
Employer’s Pension Contributions 473 418
David Easton (Apprenticeship scheme to 31/08/20)
(Youth Worker from 01/09/2020)
Salary 17,540 11,865
Employer’s Pension Contributions 877 536
William Bismark (Apprenticeship scheme to 31/08/20)
Salary 8,300 11,865
Employer’s Pension Contributions 415 536

One Trustee was reimbursed a total of £166 (2019: £0) for expenditure incurred wholly, exclusively and necessarily for the business of the Church in his capacity as a Trustee.

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Thornton Heath Evangelical Church

Notes to the financial statements (continued)

9 Related Party Transactions

The following related parties were paid for services as employees, as permitted by the terms of the constitution. Those Trustees related to the employees below are absent from that part of the Trustees meeting where the salaries for the following tax year are agreed.

2020 2019
£ £
Mrs SM Bull (wife of Mr GJS Bull) Women’s worker
(to 31/08/20)
Salary 8,637 12,347
Employer’s Pension Contributions 432 557
Mrs TM Harris (wife of Mr SM Harris) Office Administrator
Salary 6,495 6,357
Employer’s Pension Contributions 325 287
Mrs M Easton (wife of Mr DWJ Easton) Apprenticeship Scheme
(to 31/10/20)
Salary 10,420 11,865
Employer’s Pension Contributions 521 536
Mrs F Hadjard (wife of Mr BFV Cleaner
Hadjard)
Salary 5,730 5,233

10 Financial Commitments

The future minimum lease payments under non-cancellable operating leases are payable:

Within one year
Between one and five years
The operating lease charges for the year were:
Photocopier
Total
2020
£
2019
£
3,172
3,379
12,688
1,689
15,860
5,068
3,172
3,379
3,172
3,379

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