Charity No. 1130780
Thornton Heath Evangelical Church
Report and Financial Statements
31 December 2021
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
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Thornton Heath Evangelical Church
Legal and administrative information
Trustees:
Mr SPJ Ridgeway (Pastor) Mr DA Bristow Mr DC Damani Mr L Dente 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
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Thornton Heath Evangelical Church
Report of the trustees for the year ended 31 December 2021
The Trustees submit their annual report and the financial statements for the year ended 31 December 2021. 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 2021 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 and a weekly a weekly Bible study meeting for women. All of these services and ministries are carried out at its premises in London Road, Thornton Heath, Surrey.
Achievements and performance
During 2021 and following the easing of restrictions relating to the Covid19 pandemic, a number of ministries have continued or have now restarted. The church has reverted back to one Sunday morning service, an evening service and a midweek Bible Study and Prayer Meeting. Singing during services has also been restarted, and there is no longer a requirement to book for services. The Sunday services sermons are still recorded and placed on the church’s YouTube channel. Wayfinders (for children in school years 1 to 6) and Impact (for teenagers) are now running during school term time. The women’s meeting for Bible Study restarted in March 2022.
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The Open Door ministry has re-started and is available for those who wish to come into the church to talk or seek spiritual advice or be pointed to other agencies if their need is of a more practical nature.
The Pastor is now able to make pastoral visits without any restrictions and Church Business Meetings have returned to normal in-person meetings.
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, a mid-week meeting for those who wish to meet for prayer and to study the Bible and meetings for women, children and young people.
Risks
The Trustees normally 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 2021. The Trustees again acknowledge the provision and goodness of God in providing for the ongoing financial needs of the Church.
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 £2,197,895 of which £2,195,931 represent fixed and net current assets held in the Capital Fund. At the end of the year the cash balances were £187,805.
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The trustees will continue to review the reserves during this year, as there was a reduction in income in 2021 compared to 2020.
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 is continuing to open up following the Covid pandemic, but is now facing serious economic issues, including a rising inflation rate, which will mean increased costs to the Church, and could potentially affect future income if donors have to cut back on their donations to the church. The trustees are also investigating means by which expenditure can be reduced, as the current deficits of the last couple of years are unsustainable in the mid to long term.
The accounts have been prepared on the basis that the church continues to operate as a going concern. Due to the previous restriction on public gatherings, cash income has reduced, although this has partly been offset by donations via electronic channels. 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 are still to review the position during the year.
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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:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether the policies adopted are in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” and with applicable accounting standards, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue.
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: 24[th] September 2022
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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 2021 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:
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accounting records were not kept in respect of the Church as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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
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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: 28[th] September 2022
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Thornton Heath Evangelical Church Statement of Financial Activities for the year ended 31 December 2021
| 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 3 Movement in Funds Funds brought forward (1st January 2021) Funds carried forward (31st December 2021) |
--Unrestricted Funds-- --Unrestricted Funds-- General Account £ Capital Fund £ Restricted Funds £ Total 2021 £ General Account £ Capital Fund £ Restricted Funds £ Total 2020 £ 107,830 - 21,227 129,057 111,384 4,988 24,385 140,757 220 184 688 1,092 1,620 158 4,042 5,820 |
|---|---|
| 108,050 184 21,915 130,149 113,004 5,146 28,427 146,577 |
|
| 126,704 500 31,665 158,869 117,364 27,745 26,304 171,413 - 688 688 - 155 4,042 4,197 |
|
| 126,704 500 32,353 159,557 117,364 27,900 30,346 175,610 |
|
| (18,654) (316) (10,438) (29,408) (4,360) (22,754) (1,919) (29,033) 19,000 (26,811) 7,811 - - - - - |
|
| 346 (27,127) (2,627) (29,408) (4,360) (22,754) (1,919) (29,033) 1,618 2,223,058 5,303 2,229,979 5,978 2,245,812 7,222 2,259,012 |
|
| 1,964 2,195,931 2,676 2,200,571 1,618 2,223,058 5,303 2,229,979 |
All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above.
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Thornton Heath Evangelical Church
Balance sheet at 31 December 2021
| 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 |
2021 £ 2,006,890 2,500 5,942 187,805 196,247 (2,566) 193,681 2,200,571 - 2,200,571 1,964 2,195,931 2,197,895 2,676 2,200,571 |
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 |
The financial statements on pages 8 to 18 were approved by the trustees on 15[th] September 2022 and signed on their behalf by
(Original signed copy held by the charity)
P J Taylor Trustee
Date: 24[th] September 2022
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Thornton Heath Evangelical Church
Cash Flow Statement Year Ending 31[st] December 2021
| 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 |
2021 2020 £ £ (28,971) (899) - - - - |
|---|---|
| (28,971) (899) 216,776 217,675 |
|
| 187,805 216,776 |
|
| (29,408) (29,033) 500 500 (223) 27,796 160 (162) |
|
| (28,971) (899) |
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Thornton Heath Evangelical Church
Notes to the financial statements
1 Accounting policies
(a) Basis of preparation
- The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102) and Financial Reporting Standard 102 (FRS102)) and the Charities Act 2011.
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
- Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled conditions attaching to that grant are outside the control of the charity.
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.
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(i) Cash at bank and at hand Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.
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(j) Creditors and provisions
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Creditors and provisions are recognised where the charity has a present obligation arising 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 recognised at their settlement amount.
(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.
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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) |
2021 £ 81,720 10,705 4,244 4,362 4,106 10,568 99 - 1,900 500 9,000 127,204 31,665 158,869 |
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 |
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 |
2021 £ 86,512 2,587 4,038 93,137 **3 ** |
2020 £ 100,695 1,978 4,748 |
|---|---|---|
| 107,421 | ||
| 4.5 |
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 | ||||||||
| 01/01/2021 | 31/12/2021 | 01/01/2020 | 31/12/2020 | ||||||||
| £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | ||
| Missionary | 3,146 | 14,644 | 25,600 | 7,811 | 1 | 5,131 | 19,015 | 21,000 | - | 3,146 | |
| Inasmuch | 475 | 563 | 15 | - | 1,023 | - | 475 | - | - | 475 | |
| Inasmuch (Food bank) | 1,340 | - | - | - | 1,340 | 1,334 | 20 | 14 | - | 1,340 | |
| Harvest | - | 6,020 | 6,020 | - | - | - | 4,875 | 4,875 | - | - | |
| Evangelism | 342 | - | 30 | - | 312 | 757 | - | 415 | - | 342 | |
| Suspense | - | 688 | 688 | - | - | 4,042 | 4,042 | - | - | ||
| Total | 5,303 | 21,915 | 32,353 | 7,811 | 2,676 | 7,222 | 28,427 | 30,346 | - | 5,303 |
The Restricted funds were established for the following purposes:
Missionary - to support missionary work in the UK and overseas. The transfer from unrestricted funds during the year, was made to cover restricted expenditure in excess of restricted income.
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 2021, the offering (£6,020) was given to Barnabas Fund to support projects in Ethiopia and India.
Evangelism – to provide funds relating to the church’s outreach and evangelism activities.
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.
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Thornton Heath Evangelical Church
Notes to the financial statements (continued)
| Significant distributions from the Missionary and Harvest funds amounting to £1,000 or more: | Significant distributions from the Missionary and Harvest funds amounting to £1,000 or more: | Significant distributions from the Missionary and Harvest funds amounting to £1,000 or more: |
|---|---|---|
| Operation Mobilisation | 13,400 | |
| Mission Africa | 12,000 | |
| Barnabas Fund | 6,020 | |
| Total grants included in resources expended: | ||
| Number | £ | |
| Individuals | 10 | 45 |
| Institutions | 4 | 31,620 |
| 14 | 31,665 |
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Thornton Heath Evangelical Church
Notes to the financial statements (continued)
4 Tangible fixed assets
| Freehold land | Total | |
|---|---|---|
| Asset cost | & buildings | 2021 |
| £ | £ | |
| At 1 January 2021 | 2,006,890 | 2,006,890 |
| Additions: | - | - |
| Disposals: | - | - |
| At 31 December 2021 | 2,006,890 | **2,006,890 ** |
| 5 Debtors Prepayments Other debtors 6 Creditors: amounts falling due within one year Accruals |
2021 £ 192 5,750 5,942 2021 £ 2,566 2,566 |
2020 £ 324 5,395 |
|---|---|---|
| 5,719 | ||
| 2020 £ 2,406 |
||
| 2,406 |
7 Analysis of net assets between funds
| Tangible fixed assets Net current assets Creditors due after more than one year |
General £ Capital £ Restricted £ Total 2021 £ General £ Capital £ Restricted £ Total 2020 £ - 2,006,890 - 2,006,890 - 2,006,890 - 2,006,890 1,964 189,041 2,676 193,681 1,618 216,168 5,303 223,089 - - - - - - - - |
|---|---|
| 1,964 2,195,931 2,676 2,200,571 1,618 2,223,058 5,303 2,229,979 |
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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.
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Stephen Ridgeway (Pastor from 01/09/20) | ||
| Salary | 37,000 | 12,333 |
| Employer’s Pension Contributions | 1,850 | 617 |
| Gordon Bull (Pastor to 31/08/20) | ||
| Salary | - | 21,782 |
| Employer’s Pension Contributions | - | 1,089 |
| Provision of Manse (Paid by church to landlord) | - | 8,800 |
| Lucio Dente (Community outreach co-ordinator) | ||
| Salary | 9,504 | 9,457 |
| Employer’s Pension Contributions | 475 | 473 |
| David Easton (Apprenticeship scheme to 31/08/20) | ||
| (Youth Worker from 01/09/2020) | ||
| Salary | 27,720 | 17,540 |
| Employer’s Pension Contributions | 1,386 | 877 |
| William Bismark (Apprenticeship scheme to 31/08/20) | ||
| Salary | - | 8,300 |
| Employer’s Pension Contributions | - | 415 |
One Trustee was reimbursed a total of £Nil (2020: £166) 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.
| 2021 | 2020 | ||
|---|---|---|---|
| £ | £ | ||
| Mrs SM Bull (wife of Mr GJS Bull) | Women’s worker | ||
| (to 31/08/20) | |||
| Salary | - | 8,637 | |
| Employer’s Pension Contributions | - | 432 | |
| Mrs TM Harris (wife of Mr SM Harris) | Office Administrator | ||
| Salary | 6,528 | 6,495 | |
| Employer’s Pension Contributions | 326 | 325 | |
| Mrs M Easton (wife of Mr DWJ Easton) | Apprenticeship Scheme | ||
| (to 31/10/20) | |||
| Salary | - | 10,420 | |
| Employer’s Pension Contributions | - | 521 | |
| Mrs F Hadjard (wife of Mr BFV | Cleaner | ||
| Hadjard) | |||
| Salary | 5,760 | 5,730 |
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 |
2021 £ 2020 £ 2,961 3,172 10,365 12,688 |
|---|---|
| 13,326 15,860 |
|
| 3,010 3,172 |
|
| 3,010 3,172 |
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