Charity registration number: 1133003
## Southgate Family Church
Annual Report and Financial Statements for the Year Ended 30 June 2021
David Dixie F C A Dixie Associates 167 Black Haynes Road Selly Oak Birmingham B29 4RE
## **Southgate Family Church**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 3|
|Statement of Trustees' Responsibilities|4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Financial Statements|8 to 17|
## **Southgate Family Church**
**Reference and Administrative Details Trustees** Dr R G Buick Revd Canon J P Hughes Mr P F Hubbard Dr A D Coward (resigned 5 December 2020) Mrs Annie Hughes Mr J Coad (appointed 17 May 2021) **Secretary** Mr N R Hoult **Principal Office** 5 Primrose Hill Kings Norton Birmingham B38 9BE **Charity Registration Number** 1133003 **Bankers** Lloyds TSB Northfield 798 Bristol Road South Northfield Birmingham B38 2NP **Independent Examiner** David Dixie F C A Dixie Associates 167 Black Haynes Road Selly Oak Birmingham B29 4RE
Page 1
## **Southgate Family Church**
## **Trustees' Report**
The trustees present the annual report together with the financial statements of the charity for the year ended 30 June 2021.
## **Objectives and activities**
## **Objectives**
- To serve the local community practically and spiritually.
- To generate hope and opportunity within the wider community.
- To increase employment and promote a healthy community.
- To grow and multiply a new congregation every few years to serve and benefit other local urban areas.
- To be a catalyst of employment in the community, either directly or indirectly.
- To acquire a larger venue from which to expand the work.
- Provide opportunities for young people.
- Strengthen community cohesion and promote community values.
- Promote holistic living: physical and emotional health.
- Further develop the church congregations and their work in the heart of the Kings Norton 3-estates
- � area.
- Make relevant the spiritual and practical meaning of the gospel to the people in and beyond Kings
- � Norton.
- Administer emotional and physical healing for people with sickness, mental health and ill-health.
- Network with other third-sector organisations to better help individuals who have suffered trauma and
- � abuse. Current partnerships include: Kings Norton Surgery, The Freedom Project and Spring to Life.
- Support the local schools.
- Develop leadership in people.
- Develop groups to support marginalized and isolated people.
- Develop the church food bank, particularly in identifying more families and individuals who need the
- � support of food and household items.
## **Progress**
Throughout the covid season, the church has held online meetings most days of the week (sometimes twice daily). These meetings have all been on Facebook live so that folks connected with the church would be able to join in with comments and questions. The online meetings have varied from bible studies and Sunday morning services to communion services, bedtime bible stories, kids worship services, seasonal services (Christmas, Easter, etc) and even practical cooking videos to help foodbank users learn how to cook affordable, healthy meals.
The first part of the financial year was spent heavily supporting the community through food distribution. People came in large numbers needing food for their family. A conservative calculation is that a staggering 187,000 meals were distributed to the community over the year. Alongside of this was a fresh food counter where people could come and help themselves to fresh leftover food from Tesco and Asda (bread, veg, fruit, etc). This would be handed out in large quantities over several days each week. This food is not counted in the above figures!
The church has been proud to serve the community in this way and has been able to minister to and support many struggling families through this difficult season.
Page 2
## **Southgate Family Church**
## **Trustees' Report**
The church opened for public worship (outdoors) on 23rd May 2021 and was conducted in a covid secure manor.
## **Financial Report**
The Church has received one (recurring) annual grant of £4,792 towards the running costs of the church,
The income otherwise is from monthly and one-off gifts from inside and outside of the congregation.
The charity recorded a surplus this year. This is very encouraging and reflects the growing nature and momentum of the work.
## **Key priorities for the future are:**
Spotting and developing potential leaders (a current and future priority).
- Spotting and developing potential leaders (a current and future priority).
- Developing and expanding the children’s work.
- Further develop sustainable partnerships with other third sector organisations in the area, who have a common vision to address trauma and abuse in particular.
## **Thanks**
The other Trustees wish to thank Andrew Coward for his excellent service as Trustee and Chairman, he finished in December 2020.
The trustees also wish to thank Tesco, Asda, Greggs and Jacks for their generosity and help in providing vast amounts of food for the community. They also would like to thank the church volunteers who gave a huge amount of time and effort in helping the food distribution to happen.
Finally, our thanks go to all of those who have supported this venture in volunteering, prayer and financial seeding. We are very grateful. We look forward to another fruitful year!
## _**Public benefit**_
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
The annual report was approved by the trustees of the charity on 28 March 2022 and signed on its behalf by:
......................................... Dr R G Buick Trustee
Page 3
## **Southgate Family Church**
## **Statement of Trustees' Responsibilities**
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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 and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 28 March 2022 and signed on its behalf by:
......................................... Dr R G Buick Trustee
Page 4
## **Southgate Family Church**
## **Independent Examiner's Report to the trustees of Southgate Family Church**
I report on the accounts of the charity for the year ended 30 June 2021 which are set out on pages 6 to 17.
## **Respective responsibilities of trustees and examiner**
The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
- examine the accounts under section 145 of the 2011 Act;
- 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
- 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 charity 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 you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
- (1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act 2011; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
...................................... David Dixie F C A
Dixie Associates 167 Black Haynes Road Selly Oak Birmingham B29 4RE
28 March 2022
Page 5
## **Southgate Family Church**
## **Statement of Financial Activities for the Year Ended 30 June 2021**
|**Income and Endowments from:**
Donations and legacies
Other trading activities
Total Income
**Expenditure on:**
Charitable activities
Total Expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
**Note**
**Income and Endowments from:**
Donations and legacies
Other trading activities
Total Income
**Expenditure on:**
Charitable activities
Total Expenditure
Net income
Gross transfers between funds
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
14|**Note**
14
**Unrestricted**
**funds**
**£**
123,334
300
123,634
(90,174)
(90,174)
33,460
300
33,760
24,692
58,452|**Unrestricted**
**funds**
**£**
85,568
92
85,660
(76,245)
(76,245)
9,415
58,453
67,868
**Restricted**
**funds**
**£**
300
-
300
-
-
300
(300)
-
-
-|**Total**
**2021**
**£**
85,568
92|
|---|---|---|---|
||||85,660|
||||(76,245)|
||||(76,245)|
||||9,415
58,453|
||||67,868|
||||**Total**
**2020**
**£**
123,634
300|
||||123,934|
||||(90,174)|
||||(90,174)|
||||33,760
-|
||||33,760
24,692|
||||58,452|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 14.
Page 6
## **Southgate Family Church**
## **(Registration number: 1133003) Balance Sheet as at 30 June 2021**
|**Note**
**Fixed assets**
Tangible assets
11
**Current assets**
Debtors
12
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
13
**Net current assets**
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
14|**2021**
**£**
-
3,266
65,067
68,333
(465)
67,868
67,868
67,868
67,868|**2020**
**£**
1,750
6,256
50,929|
|---|---|---|
|||57,185
(483)|
|||56,702|
|||58,452|
|||58,452|
|||58,452|
The financial statements on pages 6 to 17 were approved by the trustees, and authorised for issue on 28 March 2022 and signed on their behalf by:
......................................... Dr R G Buick Trustee
Page 7
## **Southgate Family Church**
## **Notes to the Financial Statements for the Year Ended 30 June 2021**
## **1 Accounting policies**
## **Statement of compliance**
The financial statements have been prepared in accordance with 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
## **Basis of preparation**
Southgate Family Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Exemption from preparing a cash flow statement**
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
## **Income and endowments**
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
## _**Donations and legacies**_
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
## _**Grants receivable**_
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Page 8
## **Southgate Family Church**
## **Notes to the Financial Statements for the Year Ended 30 June 2021**
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## _**Grant provisions**_
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Government grants**
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Tangible fixed assets**
Individual fixed assets costing £500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
## **Research and development**
Research and development expenditure is written off as incurred.
Page 9
## **Southgate Family Church**
## **Notes to the Financial Statements for the Year Ended 30 June 2021**
## **Trade debtors**
are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of is established when there is objective evidence that the will not be able to collect all amounts due according to the original terms of the receivables.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Borrowings**
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
## **Financial instruments**
## _**Classification**_
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Page 10
## **Southgate Family Church**
## **Notes to the Financial Statements for the Year Ended 30 June 2021**
## _**Recognition and measurement**_
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
## _**Fair value measurement**_
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
## **2 Income from donations and legacies**
|Donations and legacies;
Donations from individuals
Gift aid reclaimed
Grants, including capital grants;
Government grants
Grants from other charities|**Unrestricted**
**funds**
**General**
**£**
57,233
12,876
3,180
12,279
85,568|**Total**
**2021**
**£**
57,233
12,876
3,180
12,279
85,568|**Total**
**2020**
**£**
58,541
12,006
-
53,087|
|---|---|---|---|
||||123,634|
Page 11
## **Southgate Family Church**
## **Notes to the Financial Statements for the Year Ended 30 June 2021**
## **3 Income from other trading activities**
|Events income;
Other events income|**Unrestricted**
**funds**
**General**
**£**
92
92|**Total**
**2021**
**£**
92
92|**Total**
**2020**
**£**
300|
|---|---|---|---|
||||300|
Page 12
## **Southgate Family Church**
## **Notes to the Financial Statements for the Year Ended 30 June 2021**
## **4 Expenditure on charitable activities**
|**Note**
Conferences and
training
Insurance
Repairs and renewals
Telephone and internet
Print, post and
stationery
Church resourses
Church activities and
events
Hospitality and cleaning
Travel and subsistence
Depreciation,
amortisation and other
similar costs
Grant funding of
activities
Staff costs
Allocated support costs
Governance costs|**Unrestricted funds**
**General**
**£**
**Other**
**£**
-
18
-
320
-
3,529
-
1,625
-
39
1,584
-
3,586
-
-
4,419
-
1,836
-
-
3,212
-
59,671
-
(4,475)
-
750
131
64,328
11,917|**Total**
**2021**
**£**
18
320
3,529
1,625
39
1,584
3,586
4,419
1,836
-
3,212
59,671
(4,475)
881
76,245|**Total**
**2020**
**£**
-
318
7,792
1,860
181
3,772
9,212
4,687
5,180
875
2,758
52,564
-
975|
|---|---|---|---|
||||90,174|
Page 13
## **Southgate Family Church**
## **Notes to the Financial Statements for the Year Ended 30 June 2021**
## **5 Analysis of governance and support costs**
## **Governance costs**
|Independent examiner fees
Examination of the financial
statements
Marketing and publicity|**Unrestricted funds**
**General**
**£**
**Other**
**£**
750
-
-
131
750
131|**Total**
**2021**
**£**
750
131
881|**Total**
**2020**
**£**
750
225|
|---|---|---|---|
||||975|
## **6 Net incoming/outgoing resources**
Net incoming resources for the year include:
**2021 £**
## **7 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
## **8 Staff costs**
The aggregate payroll costs were as follows:
|**Staff costs during the year were:**
Wages and salaries
Pension costs|**2021**
**£**
55,771
3,900
59,671|**2020**
**£**
48,664
3,900|
|---|---|---|
|||52,564|
No employee received emoluments of more than £60,000 during the year
## **9 Independent examiner's remuneration**
|**9**
**Independent examiner's remuneration**|||||
|---|---|---|---|---|
||**2021**||**2020**||
||**£**||**£**||
|Examination of the financial statements||750||750|
Page 14
## **Southgate Family Church**
## **Notes to the Financial Statements for the Year Ended 30 June 2021**
## **10 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **11 Tangible fixed assets**
|**Cost**
At 1 July 2020
Disposals
At 30 June 2021
**Depreciation**
At 1 July 2020
Eliminated on disposals
At 30 June 2021
**Net book value**
At 30 June 2021
At 30 June 2020
**12 Debtors**
Accrued income
Other debtors|**Furniture and**
**equipment**
**£**
10,374
-
10,374
10,374
-
10,374
-
-|**Furniture and**
**equipment**
**£**
10,374
-
10,374
10,374
-
10,374
-
-|**Motor**
**vehicles**
**£**
3,500
(3,500)
-
1,750
(1,750)
-
-
1,750
**2021**
**£**
3,266
-
3,266|**Motor**
**vehicles**
**£**
3,500
(3,500)
-
1,750
(1,750)
-
-
1,750
**2021**
**£**
3,266
-
3,266|**Total**
**£**
13,874
(3,500)
10,374
12,124
(1,750)
10,374
-
1,750
**2020**
**£**
5,749
507|
|---|---|---|---|---|---|
||10,374|||||
||10,374
-|||||
||10,374||-|||
||-||-|||
||-||1,750|||
||||**2021**
**£**
3,266
-
3,266|||
||||||6,256|
Page 15
## **Southgate Family Church**
## **Notes to the Financial Statements for the Year Ended 30 June 2021**
## **13 Creditors: amounts falling due within one year**
|Other taxation and social security
Other creditors
**14 Funds**
**Unrestricted funds**
General
Other
**Total funds**
**Unrestricted funds**
General
Other
**Total unrestricted funds**
**Restricted funds**
**Total funds**|**2021**
**£**
**2020**
**£**
465
482
-
1
465
483
**Balance at 1**
**July 2020**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Balance at 30**
**June 2021**
**£**
(58,453)
(85,660)
64,328
(79,785)
-
-
11,917
11,917
(58,453)
(85,660)
76,245
(67,868)
**Balance at 1**
**July 2019**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Transfers**
**£**
**Balance at**
**30 June**
**2020**
**£**
(24,692)
(123,634)
69,816
(300)
(78,810)
-
-
20,358
-
20,358
(24,692)
(123,634)
90,174
(300)
(58,452)
-
(300)
-
300
-
(24,692)
(123,934)
90,174
-
(58,452)|**2020**
**£**
482
1|**2020**
**£**
482
1|
|---|---|---|---|
|||483||
|||**Balance at 30**
**June 2021**
**£**
(79,785)
11,917||
||||(67,868)|
||||**Balance at**
**30 June**
**2020**
**£**
(78,810)
20,358|
||||(58,452)
-|
||||(58,452)|
Page 16
## **Southgate Family Church**
## **Notes to the Financial Statements for the Year Ended 30 June 2021**
## **15 Analysis of net assets between funds**
|Current assets
Current liabilities
Total net assets|**Unrestricted**
**funds**
**General**
**£**
68,333
(465)
67,868|**Total funds**
**£**
68,333
(465)
67,868|
|---|---|---|
## **16 Analysis of net funds**
|**16 Analysis of net funds**||||
|---|---|---|---|
|Cash at bank and in hand
Net debt|**At 1 July 2020**
**£**
50,929
50,929|**Cash flow**
**£**
**At 30 June 2021**
**£**
14,138
65,067
14,138
65,067||
||||65,067|
## **17 Related party transactions**
There were no related party transactions in the year.
Page 17