Highgate United Reformed Church Report and Accounts
year ended 31st December 2021
HIGHGATE UNITED REFORMED CHURCH
LEGAL & ADMINISTRATIVE DETAILS
FOR THE YEAR ENDED 31 DECEMBER 2021
ADDRESS FOR CORRESPONDENCE Highgate United Reformed Church Pond Square Highgate London N6 6BA GOVERNING DOCUMENT Trusts distilled from the United Reformed Church Acts (1972 & 1981) and Scheme of Union (1972) 01/01/1973
CHARITY REGISTRATION NUMBER 1131691
TRUSTEES RESPONSIBLE FOR Beth Chaudhary MANAGING THE CHARITY Zacky Choo (Appointed March 2022) Rowena Courtney Robert Gorrie Dietrich Hauptmeier (Resigned April 2022) Thomas Jenkins (Appointed March 2022) CUSTODIAN TRUSTEES URC Thames North Synod Trust KEY MANAGEMENT Rev David Currie INDEPENDENT EXAMINER Archie McDowall BA, CA Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
INDEX
Page 1 Legal & Administrative Details Page 2-4 Trustees' Report Page 5 Independent Examiner's Report Page 6 Receipts and Payments Account Page 7 Statement of Assets & Liabilities Page 8-9 Notes
1
HIGHGATE UNITED REFORMED CHURCH
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees have pleasure in submitting the Report and Accounts for the year ended 31 December 2021.
Objects of the charity
Thecharity, which is a church, is governed by Trusts distilled from the United Reformed Church Acts (1972 & 1981) and Scheme of Union (1972) 01/01/1973. It is constituted as a charitable incorporated organisation. Thepurposeofthechurch, as defined in it's charitableobjectives is: Theadvancement of theChristian faith for the benefit of the public in accordance with the Scheme of Union of the United Reformed Church.
In planning the activities the Trustees and Elders have regard to theguidance on public benefit issued by the Charities Commision. During the past year the Church has continued its pursuit of this purpose by making availableto thepublic opportunities for Public Worship every Sunday of theyear, and additionally on special occasions as required by the Christian Calendar. When possible Worship has taken place in the Church building but in the faceof thegovernment restrictions on public gathering and public worship implemented as part ofefforts to control the spread of theCoronavirus theChurch has made availableservices and worship on line. The Church, through its minister and, within the government guidelines and restrictions in placeat any given time, its facilities, is availablefor baptisms, weddings and funerals to anyonewhom the Minister and Elders considers makes a genuine request for such services. Highgate United Reformed Church is active in encouraging its members and congregation to represent, individually, the intentions of the Church in the particular contributions they make not only to the immediate community, but also through paid or voluntary activity to the wider community.
In addition to public worship the Church and its congregation support weekly Bible Study meetings in members homes, periodic Bible Study after worship, and a weekly Christian Meditation Group in theChurch. As with Public Worship theseactivities havetaken placeon lineduring periods when Coronavirus restrictions have prevented face to face physical gatherings. The Church and its congregation are also active in practical support to the local community through financial contributions and volunteering with the Highgate Newtown Community Partnership with whom, when Coronavirus restrictions allow, a weekly Community Lunch is hosted and spaceprovided for a Toddler Group, and Pathway which takes theChristian messageinto local schools. The C4WS Homeless Shelter, normally hosted on nights over the winter, was forced by the Coronavirus restrictions to operate this year from a single venue in central London. The Church made a financial contribution to C4WS.
2
Summary of the charity's main activities and achievements
The first half of 2021 continued to be dominated by the impact and restrictions of Coronavirus. The Church building remained closed to worship until May. Even when the building reopened some members and worshippers were unable, or reluctant, to return to the church building for worship. As a result we have continued to make services available live on line and have ensured that for Church Meetings members can participate on-line if unable to attend in person. Outreach and activities in the church began again in the second half of the year, including the church extending its financial support for the HNCP Community Lunch programme which the church hosts once a week. At the end of 2020 our Minister, David Currie, confirmed his intention to retire in 2022. Church Meeting established a Search Group to lead the search for a new Minister which process successfully completed in early 2022. Since the end of the year one Trustee has moved away but the leadership group has been extended by the appointment of two new Elders & Trustees.
Financial review
Receipts for theyear were£171k.This was £20k up on 2020, albeit still £22k below 2019 pre-pandemic level. While the Nursery significantly increased their hours the balance of letters continued to be impacted by Coronavirus restrictions. The Ballet remained closed for the first term of theyear and general letting income remained unchanged on 2020 at less than half pre pandemic levels. Receipts from giving and non property related sources were down 20%. While there was one generous legacy in 2021 the comparatives for 2020 included several significant oneoffgifts from members, an additional gift aid claim, and thelast grant received for the 2019 kitchen refurbishment.
Payments for 2021 were £128k, a decrease of £36k on 2020 and a total of £56k below 2019 pre pandemic levels. The principal change from 2020 was a £19k reduction in Chapel Maintenance to only £4k in 2021. Therewerein fact two major maintenanceprojects in theChapel during 2021. Thefirst was reparing theflood damage in the hall, which cost was covered by insurance, and the second a significant refurbishment of the boilers and their controls. This latter project was not completed until after theend oftheyear and none ofthe expected £18k cost had been paid by year end. 2020 payments for Equipment included the£7k for streaming equipment. Reduced Professional Fees, £4k, and Giving, £3k, were the other principal changes in 2021.
As a result there was a surplus of £43k for 2021 against a breakeven budget. This substantial variance was becausetheadditional Nursery hours werenot forecast and theboiler project had been budgeted to complete during the year.
Thecharity has a budgeted loss of£31.5k in 2022. This assumes no Covid restricitons and thecontinued useof thechurch buildings by theexisting tenants and hirers. Thebudget includes the cost of the2021 boiler work, a return to pre pandemic levels of Giving from Church funds, a catch up on the Giving from 2020, an allowance for the costs of a change in Minister, and professional fees relating to a new leasefor theNursery. The trustees continue to monitor the principal risk to income and manage controllable expenditure commitments in that context.
Reserves policy
The Reserves Policy is to hold 50% of annual expenditure as a reserve. Currently this Reserve is set at £66k. Total payments in 2020 were £128k. £32k relate to the direct employment of a full time Minister which cost is supported by the designated Future Ministry Fund. The2021 balanceof expenditurewas £96k which did not include £18k of costs for the boiler work or £5k ofdeferred 2021 Givings both paid in early 2022. Including these items indicates annual expenditure, excluding the Minister, of about £120k and as such Trustees view the current level of General Reserves as appropriate.
3
Governance & Organisational Structure
The Trustees meet as Elders, with the Minister, most months. Elders are appointed following a discernment process that ends with confirmation, or not, by Church Meeting. Elders also become Trustees. Under the leadership of the Minister Elders haveresponsibility for the management of theChurch delegated to them by Church Meeting which is thesovereign body. Church meetings areusually convened quarterly although when issues arise requiring more immediate consideration and decision additional meetings are called. TheElders delegate particular matters concerned with the upkeep and refurbishment of Church properties to the Management Committee. This Committee meets most months and when appropriate or helpful joint meetings with Elders are held.
Responsibilities of trustees
Charity law requires us as Trustees to preparefinancial statements for each accounting year which record the receipts and payments of the charity for the year.
We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable us to ensure that the financial statements comply with the Charities Act 2011.
We also have a responsibility to safeguard the assets of the charity and to take reasonable steps to prevent fraud or any other irregularities.
Approval
This report was approved by the trustees and signed on their behalf by:
………………………………………………………..
ROBERT GORRIE
04/10/2022 Date:_____
4
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF
HIGHGATE UNITED REFORMED CHURCH
I report to thetrustees on my examination oftheaccounts ofHighgate United Reformed Church ('the charity') for the year ended 31 December 2021 on pages 6 to 9 following.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).
I report in respect ofmy examination ofthecharity’s accounts carried out under section 145 of the2011 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 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have cometo my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in accordance with section 130 of the 2011 Act; or
-
the accounts do not accord with the accounting records.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Archie McDowall BA, CA
Stewardship 1 Lamb's Passage EC1Y 8AB
05/10/2022
5
HIGHGATE UNITED REFORMED CHURCH
RECEIPTS AND PAYMENTS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted | Funds | |||||||
|---|---|---|---|---|---|---|---|---|
| General | Designated | Restricted | ||||||
| Funds | Funds | Funds | 2021 | 2020 | ||||
| Notes | £ | £ | £ | £ | £ | |||
| Income receipts | ||||||||
| Donations & Legacies | 20,420 | - | 655 | 21,075 | 23,936 | |||
| Gift aid receipts | 4,371 | - | 750 | 5,121 | 8,236 | |||
| Church Lettings | 82,731 | - | - | 82,731 | 55,172 | |||
| Elthorne Road | 60,000 | - | - | 60,000 | 60,000 | |||
| Fund Raising Events | - | - | - | - | - | |||
| Grants | - | - | - | - | 2,000 | |||
| Other | 2,566 | - | - | 2,566 | 1,947 | |||
| Total receipts | 170,088 | - | 1,405 | 171,493 | 151,291 | |||
| Payments | ||||||||
| Payments in relation to charitable activities undertaken directly |
2 | 59,104 | 31,610 | - | 90,714 | 123,431 | ||
| Contribution to URC Ministry & Mission Fund |
30,000 | 30,000 | 30,000 | |||||
| Grants paid in relation to charitable activities | ||||||||
| undertaken by others | 3 | 6,700 | - | 555 | 7,255 | 10,395 | ||
| Total payments | 95,804 | 31,610 | 555 | 127,969 | 163,826 | |||
| Net of receipts / (payments) before transfers | ||||||||
| 74,284 | (31,610) | 850 | 43,524 | (12,535) | ||||
| Transfers between funds | 5 | (50,000) | 50,000 | - | - | - | ||
| Net movement in funds | 24,284 | 18,390 | 850 | 43,524 | - | 12,535 |
||
| Cash funds as at last year end | 56,795 | 155,726 | 873 | 213,394 | 225,929 | |||
| Cash funds at this year end | A | 81,079 | 174,116 | 1,723 | 256,918 | 213,394 |
The notes on pages 8 - 9 form part of these accounts.
6
HIGHGATE UNITED REFORMED CHURCH
STATEMENT OF ASSETS AND LIABILITIES
FOR THE YEAR ENDED 31 DECEMBER 2021
| Notes A Cash funds Cash at bank with immediate access B Other monetary assets Gift aid due to charity Other debtors C Liabilities Trade Creditors Debtors & Prepayments Fee for Independent Examination |
General Designated funds funds £ £ 81,079 174,116 81,079 174,116 2,800 - 2,300 - 5,100 - 770 - 15,773 - 1,200 - 17,743 - Unrestricted Funds |
Restricted funds £ 1,722 1,722 - - - - - - - |
2021 £ 256,917 256,917 2,800 2,300 5,100 770 15,773 1,200 17,743 |
2020 £ |
|---|---|---|---|---|
| 213,394 | ||||
| 213,394 | ||||
| 4,375 - |
||||
| 4,375 | ||||
| 1,083 15,000 1,200 |
||||
| 17,283 |
D Assets retained for charity's own use
Freehold Property: theTrustees ofthechurch, manse buildings, and theElthorne Road property, arethe URC Thames North Synod Trust who hold them upon trust for purposes connected with HighgateURC. Expenditureincurred on thechurch and manse is written offin theyear it is incurred.
For insurance purposes the church buildings are insured by the church for £9,434,392 and the manse for £1,000,000. The church contents are insured by the church for £155,554. Elthorne Road is insured for £2,350,066 with the premium paid by the tenant.
The accounts were approved by the trustees and signed on their behalf
Approval
ROBERT GORRIE
04/10/2022
The notes on pages 8 - 9 form part of these accounts.
7
HIGHGATE UNITED REFORMED CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
The accounts have been prepared on a receipts and payments basis and comprisea statement that shows the charity's receipts and payments, a statement that summarises the charity's assets and liabilities and related notes. The accountancy profession have determined that only accounts prepared in accordance with applicableaccounting standards present a 'true and fair' view and, as these receipts and payments accounts have not (and cannot) be prepared in accordance with accounting standards, these accounts do not present (and are not intended to present) a 'true and fair' view of the charity's financial activities and state of affairs.
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds compriseunrestricted funds that havebeen set asideby thetrustees for particular purposes. Restricted funds are donations which areto beused in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
| 2 Payments in relation to charitable activities undertaken directly Ministerial Costs (see note 2(a)) Administration Services Cost of Church Activities (see note 2(b)) Legal & Professional Fees Independent examination Other costs Ministerial Employment Pulpit Supply Ministerial Expenses Manse Costs Manse Maintenance 2 (b) Cost of Church Activities comprise: Church Insurance Utilities Maintenance Cleaning & Refuse Organists & Music Equipment Purchased Other Running Costs Junior Church Leader Junior Church Costs Training Communications Office Equipment & Supplies Printing, Postage, Advertising, Computer Telephones 3 Grants paid in relation to charitable activities undertaken by others Pathway Barnabas HNCC C4WS Other |
Unrestricted Fun General funds £ 4,574 9,228 40,625 2,998 1,020 660 59,104 - 200 332 3,258 784 4,574 5,260 7,219 4,192 6,919 4,819 517 1,682 30,608 4,338 520 204 5,062 29 3,973 952 4,954 4,000 - 2,000 500 200 6,700 |
ds Designated funds £ 31,610 - - - - - 31,610 31,610 - - - - 31,610 - - - - - - - - - - - - - - - - |
Restricted Funds £ - - - - - - - - - - - - - - - - - - - - - - - - - - 250 305 555 |
Total 2021 £ 36,183 9,228 40,625 2,998 1,020 660 90,714 31,610 200 332 3,258 784 36,183 5,260 7,219 4,192 6,919 4,819 517 1,682 30,608 4,338 520 204 5,062 29 3,973 952 4,954 4,000 - 2,000 750 505 7,255 |
Total 2020 £ |
|---|---|---|---|---|---|
| 36,456 9,569 68,391 7,213 1,080 722 |
|||||
| 123,431 | |||||
| 31,610 350 540 3,074 882 |
|||||
| 36,456 | |||||
| 6,685 7,457 23,388 9,114 4,459 7,494 1,207 |
|||||
| 59,804 | |||||
| 4,069 730 141 |
|||||
| 4,940 | |||||
| 106 2,586 955 |
|||||
| 3,647 | |||||
| 6,000 - - 1,598 2,797 |
|||||
| 10,395 |
8
HIGHGATE UNITED REFORMED CHURCH
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2021
4 Transactions with related parties
TheCharity employs D Currieas theFull timeMinister for theChurch. Heis not a Trusteeof theCharity. Thecosts ofhis employment, and in respect ofthe provision of accommodation (which is customary for ministers) so that they can better perform their duties, is shown in note 2 (a) above.
The total of donations funded by Trustees and related parties was £7,755 (2020 £7,755)
5 Movement of funds
| vement of funds | |||||
|---|---|---|---|---|---|
| General funds Designated funds Future Ministry Reserves Total Unrestricted General Funds Restricted funds C4WS Other Charity Collections Service Streaming Equipment Total funds |
Balance at 31 Dec 2020 £ 56,795 89,726 66,000 155,726 212,521 1,030 592 (750) 872 213,393 |
Receipts £ 170,088 - - - 170,088 350 305 750 1,405 171,493 |
Payments £ (95,804) (31,610) - (31,610) (127,414) (250) (305) - (555) (127,969) |
Transfers £ (50,000) 50,000 - 50,000 - - - - - - |
Balance at 31 Dec 2021 £ 81,079 108,116 66,000 |
| 174,116 | |||||
| 255,195 | |||||
| 1,129 592 - |
|||||
| 1,722 | |||||
| 256,917 |
The two Designated Funds are firstly the Future Ministry Fund which is comprised of monies set aside to fund the payment of full time ministerial leadership, and secondly themonies set asideto meet theobjectives oftheReservePolicy described in theTrusteeReport. The£50,000 transfer from General Funds was made to reflect costs of Ministry paid in 2020 & 2021.
The Restricted funds represent monies collected or received for particular causes or charities. The additional Service Streaming Equipment funds received represents Gift Aid claimed on donations received in 2020.
9