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2020-08-31-accounts

Company Registration number 06972512 Charity Registration number 1133178

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

ANNUAL REPORT AND FINANCIAL STATEMENTS

31 August 2020

(a company limited by guarantee without share capital)

CITY CHURCH NEWCASTLE

CONTENTS

Page
Report of the directors 1-8
Independent examiner’s report 9
Statement of financial activities 10
Statement of financial position 11-12
Cash flow statement 13
Notes to the financial statements 14-22

CITY CHURCH NEWCASTLE (a company limited by guarantee without share capital)

REPORT OF THE DIRECTORS

The directors present their report and the financial statements for the year ended 31 August 2020.

Reference and administrative details

Company number: 06972512
Charity number: 1133178
Principal address: The CastleGate
Melbourne Street
Newcastle upon Tyne
NE1 2JQ
Independent examiner: John Oswald BA FCA
Stephenson Coates Audit Limited
Chartered Accountants
West 2, Asama Court
Newcastle Business Park
Newcastle upon Tyne, NE4 7YD
Bankers: Barclays Bank PLC
49-51 Northumberland Street
Newcastle upon Tyne
NE1 7AF
Solicitors: Hay & Kilner
Merchant House
30 Cloth Market
Newcastle upon Tyne
NE1 1EE

Directors

The following directors of the charitable company (who are its trustees for the purposes of charity law) served during the year and up to the date of approval of this report:

J M Smith Chair
J Faraday
P M Fothergill appointed 18 January 2020
A Kahn
R Mason appointed 10 March 2021
M R Reed appointed 10 March 2021
J P Shepherd
S N Swakamisa
S Wade resigned 31 December 2020
Correspondent : J P Shepherd

Page 1

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

REPORT OF THE DIRECTORS

(continued )

Structure, governance and management

Governing document

City Church Newcastle is a company limited by guarantee, governed by its Memorandum and Articles of Association dated 25 July 2009.

The charitable company was incorporated on 25 July 2009 (registration number 06972512) in order to provide a distinct legal entity to carry out the activities of City Church Newcastle which since 1989 had been undertaken through a charitable trust. The company was registered with the Charity Commission on 8 December 2009.

On 1 January 2010, the entire assets, liabilities and undertakings of City Church Newcastle charitable trust (charity number 702322) were transferred to the charitable company.

There are currently three subscribers, each of whom agree to contribute £1 in the event of the charitable company winding up.

Appointment and retirement of directors

The leadership team are authorised to appoint new directors to fill vacancies arising through resignation or death of an existing director.

Directors’ induction and training

The Charity Commission website is used to keep directors up to date with developments in the charitable sector. We also maintain links with Stewardship Services and the Evangelical Alliance who arrange training and circulate advice to directors.

Organisation

The direction of the Church and the priorities of the year are set by the Leadership team of the Church (also known as the Elders’ team). The main instrument that governs expenditure through the year is the annual budget, which is drawn up by the finance team in consultation with those leading areas of ministry in the Church and is aimed at fulfilling the priorities set by the Leadership team. The budget is then agreed by the Leadership team and by the directors. Progress through the year is monitored by the Finance team. The directors meet six times each year. Budgets are monitored, policy is set and new initiatives agreed.

Day to day management of the Church finances is delegated to the Finance team. A computerised accounting system is used and bi-monthly reports from this are sent to all directors and those on the Leadership team. A member of staff keeps the books and all associated paperwork; all giving is recorded using the ChurchSuite system. Online payments are under the control of the finance officer.

In setting our objectives and planning our activities, the board of directors have regard to the Charity Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant.

Page 2

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

REPORT OF THE DIRECTORS (continued)

Risk management

The directors have identified risks and taken steps to mitigate them:

A member of staff is charged with health and safety and risk assessing.

Objectives and activities

The objectives of the Church community are:-

Purpose

City Church has the following vision and strategy:

Identity – who are we?

Vision – where are we going?

Strategy – how are we going to get there?

Our values – what really matters to us?

Page 3

CITY CHURCH NEWCASTLE (a company limited by guarantee without share capital)

REPORT OF THE DIRECTORS

(continued)

Achievements

January to August 2020 has been a time of rapid change and uncertainty for people across the globe. We are profoundly thankful to God for the way he has led us through this season, and the patience, generosity and faith with which the City Church family has adapted to a very different life. So much love, kindness, care and understanding has been expressed within the community and also given and received with friends and neighbours across the city and beyond. And the power of technology has enabled us to connect to many new people locally and across the world as never before.

Some of our highlights are shown below:

Making Room for new people to come in

We have moved our Sunday morning services online, opening them up to many new attendees.

Kids church

Our kids church also became ‘virtual’ and moved online. We had weekly activity sheets which explored Bible stories and aspects of faith, with activities and games. These were emailed to parents for children to complete at home. We ran weekly story-times for kids aged 3-9. These stories were shared over Zoom and each focused on a Biblical story or truth.

Kids Church also spent time with the safeguarding team working out how to ensure we did kids church safely in a virtual environment. We are deeply grateful to all who work with our children for the thought and care that has gone into loving and serving them so well.

Our weekly story times stopped over summer and were replaced with kids Zoom calls on a Sunday morning after the service. These were fun, themed calls for the children to catch-up, pray, and learn more about having a relationship with God.

We also started a new kids’ group during this time, called Comets for children aged 9-11. This is a fun discipleship group which mixes games, Bible, and challenges!

Church online

Indeed, the reach of everything we are doing online as City Church has grown massively. With all our Gatherings, Groups and Events happening online, it’s become far easier for people to extend a virtual invitation, share info about the Alpha course, and show Sunday Gatherings to their friends from the comfort of their own home. We’ve seen countless people tuning in to City Church Sundays for the first time ever and we’re reaching people from all over the world. We’ve been motivated to produce much more creative video footage than ever before which has meant we are now capturing lots of the great stories, testimonies and updates from the church family in a really engaging way.

At some points of the year, and where this was in line with government restrictions, we ran services with a small team present in the building to lead us in live worship and bring us God’s word. At other times, services have run from peoples’ homes. The focus at all times has been on warmth, welcome and clarity in declaring and demonstrating the good news about Jesus.

Time spent building and expressing family is key to what we do, and so alongside our Sunday meetings, we have 200 - 300 people in over 20 smaller “City Groups” who meet midweek at various times. Many groups have found new life and meaning in this Covid-19 season, and we continue to launch new groups, as we seek to draw more people into community life.

Page 4

(a company limited by guarantee without share capital)

CITY CHURCH NEWCASTLE

REPORT OF THE DIRECTORS

(continued)

Achievements (continued)

Making Room for new people to come in (continued)

We invest in training and supporting our group leaders who play such a vital role in church life, and have provided them support and advice, as well as a range of excellent online courses to help in discipling and building their group life and outreach.

We ran an online Alpha course and it was so good to see new people join in with this and find a safe space to ask questions and encounter Jesus.

Behind the scenes, we have also improved our systems to help new people connect into church life, and have received excellent feedback from new folk about the proactive and constructive way we have helped them to connect into community life as well as Sunday attendance.

We have a thriving students community at City Church, who have met regularly online in 2020 for worship, teaching and growing in faith. This has included running online courses such as the Freedom in Christ ‘Disciple’ Course and the ‘Character Course’, before moving briefly back to socially distanced in person meetings in the autumn.

Our City Groups do a great job in supporting and loving one another, and alongside them, in light of the increased pastoral needs generated by the loneliness and sickness of recent months, we have launched a new Pastoral Care Team to work with our City Groups to ensure we provide the best possible support to one another.

Drinking deeply of God’s love

We have prioritised becoming a praying church in 2020. At the start of the Covid outbreak, God led us to launch regular Facebook devotionals as well as morning zoom prayer. The prayer times are now a regular part of church life, coupled with 24 hours of prayer every two months, attracting over 170 people, and including tremendous diversity through the 24 hours - worship and thanksgiving, praying for other churches in the city, praying for our streets, time quietly waiting on God, a special kids prayer time, sharing communion together, some great night-time prayer sessions and praying for revival and for our many friends and partners round the world. Typically around 30-40 church members help to lead the various sessions.

We have also developed our prayer letter to our ‘Donkey prayer’ team – the focus is on the faithful persistence of a donkey carrying Jesus to the heart of all we are doing, and praying for the church, the city and the world, in-season and out of season. We have over 50 people committed to praying “in the moment” as prayer needs arise for people who are part of our church or known to a church member and have been delighted by the number of answers to prayer for healing, financial provision and other needs.

Our prophetic team serve the church through helping members to connect to God and to learn to discern his voice, they also gather to pray for the church, and provide input to our leadership team. They have been very active in seeking God with individuals and groups across the church, including the Elders team and our students. They have also been out and about praying for our city, and have helped to shape our regular 24 hour prayer events.

Living generously

Action Foundation, the refugee charity born out of City Church continued strongly through Covid to provide invaluable services to many beneficiaries through an adapted business model. More details of an amazing year can be found at https://actionfoundation.org.uk/wp-content/uploads/2020/11/WEB-FINAL.pdf. We supported one of our leaders to become the new chair of Action Foundation and will continue to work together to welcome and serve the many vulnerable refugees and asylum seekers coming to our city.

Page 5

CITY CHURCH NEWCASTLE (a company limited by guarantee without share capital)

REPORT OF THE DIRECTORS

(continued)

Achievements (continued )

Living generously (continued)

We significantly increased our external giving in 2020, in response to the challenges of Covid. This included gifts of £19,964 sent via our Catalyst Church Network to support churches working with the very poorest in Africa and India, £5,971 to Open Doors to support the suffering church in Syria and Iraq, £5,639 to support the work of Live Vineyard Church Newcastle in relieving food poverty in Newcastle. We partner closely with Life Vineyard and have recently joined with them in a new project to provide food to the city. In total, our external giving came to £41,611.

Within our Catalyst Church family, we are working particularly closely with a growing band of eight other churches in the North East of England and are supporting new churches starting up in Wakefield and Bradford. We can achieve much more together than we can apart.

We continued to support and partner with Foundations Zambia, a farming and discipleship programme run by our friends and former members, Ben and Cat Frampton, and look forward to welcoming them to the North East in 2021 for a well-earned sabbatical.

We plan to continue and expand our investment in serving the poor, preaching the gospel and working with others to transform the world.

Stewarding faithfully the resources God gives us

The CastleGate

Much of the Church’s activities usually take place at our Grade 2 listed building called The CastleGate in the centre of Newcastle upon Tyne. Throughout the year the building also provides a community space for local charities to meet, as well as office and classroom space for other local charities. However, during the Covid-19 pandemic, we have had significantly to curtail access to the building.

We have worked hard to create a Covid safe environment and implement government guidelines, to ensure that as staff and visitors can return to the building safely. We have worked with our amazing charity tenants and the various church groups to ensure consistent safety measures, and have installed hand sanitising stations throughout the building, created one-way systems, limited room capacities and instituted a thorough cleaning procedure.

We took the opportunity of the building being quieter to undertake the refurbishment of our lift, including new parts in the motor room and a whole car refurbishment to bring it up to industry standard. The refurbishment included a new emergency call system should there be any issues whilst in the lift.

We also started phase 1 of our heating system improvements, replacing all the valves in the system, giving us much more granular control in choosing which parts of the building to heat at any one time. Next stages to upgrading the building will be to upgrade the controls for the heating system, and eventually to replace the boilers.

As part of our commitment to our young people, we also partially re-decorated the main second floor room with new colour on the walls; new hard-wearing, stylish flooring; sofas; and table tennis tables to make a more functional room for our youth meetings. In the coming year we plan to add the finishing touches.

We have slowly been changing the majority of the lighting to LED lights, and are changing our electricity supplier to ensure we keep our costs down and our environmental impact as low as possible.

Page 6

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

REPORT OF THE DIRECTORS

(continued)

Financial review

The statement of financial activities on page 10 shows net unrestricted income of £39,597 for the first eight months of 2020, continuing the now regular pattern of sound finances.

Our regular giving in the first eight months of 2020 increased to £288,575, compared with £271,711 in 2019. We continue to be very thankful for the financial commitment of Church members, particularly in these difficult times.

Our cash balances increased by the end of the financial period to £124,867 (2019 £104,442) – see page 13.

We invested around £45,000 across 2020 and into 2021 to upgrade the lift and improve the heating system, with around half the spend in each financial year.

Investment policy

Surplus funds are held in interest bearing accounts which allow easy access to the funds should the need arise. A review of returns is periodically undertaken to ensure a competitive return and the maximum security of our funds.

Reserves policy

The Church aims to hold a minimum of two months of expenditure as free reserves (£78,000). At 31 August 2020, we held free reserves of £101,991, providing some extra reserves in the current Covid crisis.

Statement of the directors' responsibilities in relation to the financial statements

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 7

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

REPORT OF THE DIRECTORS

(continued)

This report has been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

Approved by the directors on 10 March 2021 and signed on their behalf by:

J M Smith Director

Page 8

REPORT OF THE INDEPENDENT EXAMINER TO THE DIRECTORS OF CITY CHURCH NEWCASTLE

I report to the charity trustees on my examination of the accounts of the charitable company for the eight months ended 31 August 2020, which are set out on pages 10 to 22.

Responsibilities and basis of report

As the charity’s trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (the ‘2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s report

I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales.

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:

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.

John Oswald BA FCA Stephenson Coates Audit Limited Chartered accountants West 2 Asama Court Newcastle Business Park Newcastle upon Tyne NE4 7YD

10 March 2021

Page 9

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

STATEMENT OF FINANCIAL ACTIVITIES

(including income and expenditure account)

EIGHT MONTHS ENDED 31 AUGUST 2020

Note
INCOME FROM:
Giving
2
Charitable activities
3
Other trading activities:
Rental income
Interest received
Other incoming resources
4
EXPENDITURE ON:
Charitable activities
5-7
NET INCOME/(EXPENDITURE)
Fund transfers
Fund balances at 1 January 2020
Fund balances at 31 August 2020		 Unrestricted
Restricted
Total
funds
funds
funds
£
£
£
288,575
29,784
318,359
7,649
-
7,649
40,734
-
40,734
64
-
64
15,441
-
15,441
352,463
29,784
382,247
312,866
30,250
343,116
312,866
30,250
343,116
39,597
(466)
39,131
-
-
-
1,193,742
3,633
1,197,375
1,233,339
3,167
1,236,506		 2019
(year)
£
393,140
25,251
58,831
134
-
477,356
454,704
454,704
22,652
-
1,174,723
1,197,375

All income and expenditure derive from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised for the period.

The notes on pages 14 to 22 form part of these financial statements.

Page 10

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

STATEMENT OF FINANCIAL POSITION AT 31 AUGUST 2020

Note
Non-current assets
Tangible assets
8
Loan
9
Current assets
Debtors
10
Cash and bank
Creditors:
Amounts due within one year
11
Net current assets
Total assets
less current liabilities
Creditors:
Amounts due after one year
12
Net assets
Funds
Unrestricted funds
Restricted funds
14
Total funds		 31 December
2020
2019
£
£
1,645,704
1,647,954
135,000
135,000
_
_
1,780,704
1,782,954
_
_
21,554
26,003
124,867
104,442
_
_
146,421
130,445
_
_
54,717
60,170
_
_
91,704
70,275
_
_
1,872,408
1,853,229
635,902
655,854
_
___
1,236,506
1,197,375
_
_
1,233,339
1,193,742
3,167
3,633
_
_
1,236,506
1,197,375
_
__		 31 December
2020
2019
£
£
1,645,704
1,647,954
135,000
135,000
_
_
1,780,704
1,782,954
_
_
21,554
26,003
124,867
104,442
_
_
146,421
130,445
_
_
54,717
60,170
_
_
91,704
70,275
_
_
1,872,408
1,853,229
635,902
655,854
_
___
1,236,506
1,197,375
_
_
1,233,339
1,193,742
3,167
3,633
_
_
1,236,506
1,197,375
_
__		 31 December
2020
2019
£
£
1,645,704
1,647,954
135,000
135,000
_
_
1,780,704
1,782,954
_
_
21,554
26,003
124,867
104,442
_
_
146,421
130,445
_
_
54,717
60,170
_
_
91,704
70,275
_
_
1,872,408
1,853,229
635,902
655,854
_
___
1,236,506
1,197,375
_
_
1,233,339
1,193,742
3,167
3,633
_
_
1,236,506
1,197,375
_
__

130,445
_
60,170
_
70,275
_
1,853,229
655,854
_
130,445
_
60,170
_

1,197,375
__

1,193,742
3,633
_
1,197,375
_

The Statement of Financial Position continues on the following page.

The notes on pages 14 to 22 form part of these financial statements. Page 11

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

STATEMENT OF FINANCIAL POSITION

AT 31 AUGUST 2020

(continued)

Directors’ statements required by the Companies Act 2006 For the eight months ended 31 August 2020

In approving these financial statements as directors of the company we hereby confirm:

(1) ensuring that the company keeps adequate accounting records which comply with section 386 of the Companies Act 2006, and

(2) preparing financial statements which give a true and fair view of the state of affairs of the charitable company at the end of the financial year and of its profit or loss for the year then ended in accordance with the requirements of sections 394 and 395, and which otherwise comply with the provisions of the Companies Act relating to financial statements, so far as applicable to the charitable company.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved by the directors on 10 March 2021 and are signed on their behalf:

J M Smith

Director

Company registration no. 06972512

The notes on pages 14 to 22 form part of these financial statements.

Page 12

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

CASH FLOW STATEMENT EIGHT MONTHS ENDED 31 AUGUST 2020

Reconciliation of net income to net
cash flows from operating activities
Net income for period
Interest received
Depreciation
Decrease in operating debtors
(Decrease)/increase in creditors
Net cash inflow from operating activities
Cash flows from investing activities
Cash received from sale of
Rickleton property
Purchases of tangible fixed
assets
Interest received
Net cash flows from investing activities
Cash flows from financing activities
Repayments of bank loan
Net cash flow from financing activities
Net increase in cash
and cash equivalents
Cash and cash equivalents at start of period
Cash and cash equivalents at end of
period
Cash and bank
Bank overdraft
Cash and cash equivalents		 2020
£
£
39,131
-64
5,242
4,449
-6.953
41,805
-
-2,992
64
-2,928
-18,452
-18,452
20,425
104,442
124,867
124,867
-
124,867		 2020
£
£
39,131
-64
5,242
4,449
-6.953
41,805
-
-2,992
64
-2,928
-18,452
-18,452
20,425
104,442
124,867
124,867
-
124,867		 2019 (year)
£
£
22,652
-134
15,941
7,293
370
46,122
34,000
-12,210
134
21,924
-26,108
-26,108
41,938
62,504
104,442
104,442
-
104,442		 2019 (year)
£
£
22,652
-134
15,941
7,293
370
46,122
34,000
-12,210
134
21,924
-26,108
-26,108
41,938
62,504
104,442
104,442
-
104,442
20,425 41,938
104,442
124,867		 62,504
104,442
124,867
-		 104,442
-
124,867 104,442

Analysis of changes in the charitable company’s net debt in the year is shown in note 15 to the financial statements.

Page 13

CITY CHURCH NEWCASTLE (a company limited by guarantee without share capital)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE EIGHT MONTHS ENDED 31 AUGUST 2020

1 Accounting policies

1.1 Basis of preparation of financial statements

The financial statements of the charitable company have been prepared under the historical cost convention and in accordance with the 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), the Companies Act 2006 and United Kingdom Generally Accepted Accounting Practice applicable to smaller entities. The charitable company is a public benefit entity as defined by FRS102.

The financial accounts are prepared in Sterling (£), which is the functional currency of the charitable company.

1.2 Going concern

The directors of the charitable company are satisfied that there are no material uncertainties concerning the charitable company’s ability to continue as a going concern for a period of at least 12 months from the date of approval of the financial statements. Accordingly, the financial statements continue to be prepared on the going concern basis.

1.3

Fund accounting

Unrestricted funds are those available for use at the discretion of the directors in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are those that are to be used in accordance with the specific restrictions imposed by donors or which have been raised by the charity for particular purposes.

Designated funds are earmarked by the directors for particular purposes.

1.4 Income

Giving - Collections are recognised when received by or on behalf of the Church. Planned giving under Gift Aid is recognised only when received. Income tax recoverable on Gift Aid donations is recognised when the income is recognised. Legacies are accounted for as soon as the Church is notified of its legal entitlement, the amount due is quantifiable and its ultimate receipt by the Church is certain. Rental income - is recognised on an accruals basis.

Investment income – interest entitlements are accounted for as they accrue.

Government grants – those relating to income are recognised using on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.

1.5 Expenditure

Charitable activities – The cost of charitable activities represents the cost of undertaking the charity's objectives. All expenditure is accounted for on an accruals basis. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Value added tax is not recoverable by the charitable company and as such it is included in the relevant costs in the Statement of Financial Activities.

Page 14

CITY CHURCH NEWCASTLE (a Company limited by guarantee without Share Capital)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE EIGHT MONTHS ENDED 31 AUGUST 2020

(continued)

1 Accounting policies (continued)

1.6 Tangible fixed assets

Depreciation is provided on tangible fixed assets at rates calculated to write off the cost of an asset, less its estimated residual value, over the expected useful economic life of that asset, as follows:

Freehold property Nil Musical and technical equipment 20% on straight line basis Office and computer equipment 33⅓% on straight line basis Furniture, fixtures and fittings 15% on straight line basis

In view of the maintenance programme in place which aims to keep the building in good condition, the directors consider that any depreciation of freehold property would be immaterial and accordingly no provision has been made. The carrying amount of the freehold property is reviewed annually for impairment by the directors.

1.7 Impairment of fixed assets

Property, equipment, fixtures and fittings are reviewed for impairment if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared against its carrying amount. Where the estimated recoverable amount is lower, an impairment loss is recognised immediately in the Statement of Financial Activities.

1.8

Debtors and creditors due within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses from impairment are recognised in expenditure.

1.9 Concessionary loans

The charity initially recognises and measures concessionary loans at the amount received or receivable. The carrying amount is adjusted in subsequent years to reflect repayments and any accrued interest.

1.10 Operating leases

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are reflected in the Statement of Financial Activities as incurred.

1.11 Pension costs

The charity operates defined contribution pension schemes for its staff. The schemes and the assets are held by independent managers. The pension cost charge in the financial statements represents contributions due from the charity for the year.

1.12 Voluntary assistance

Time is expended on the charity’s activities and governance which is donated free of charge. It is impractical to quantify the value of the time given, and accordingly it is neither recorded as donated income nor as an expense in the financial statements.

Page 15

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE EIGHT MONTHS ENDED 31 AUGUST 2020

(continued)

2
Income from giving
Regular giving
Restricted giving
Gift aid
3
Income from charitable activities
Church activities
Serving others
Reimbursements
Grants
Other
4
Other incoming resources
Coronavirus Job Retention
Scheme grants		 2020
Unrestricted
Restricted
Total
funds
funds
funds
£
£
£
240,084
-
240,084
-
25,030
25,030
48,491
4,754
53,245
288,575
29,784
318,359
4,096
-
4,096
300
-
300
2,464
-
2,464
-
-
-
789
-
789
7,649
-
7,649
15,441
-
15,441		 2019
(year)
Total
funds
£
323,018
2,176
67,946
393,140
11,409
4,678
5,462
2,888
814
25,251
-

Page 16

(a company limited by guarantee without share capital)

CITY CHURCH NEWCASTLE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE EIGHT MONTHS ENDED 31 AUGUST 2020

( continued)

5 Expenditure on charitable activities

Staff salaries
and expenses (note 6)
Giving made (note below)
Leadership, events and serving churches
The CastleGate
Ministries
Office expenses
Bank charges
Bank loan interest
Depreciation
Accountancy and payroll
Giving made comprises:
The Framptons
Evangelical Alliance
Catalyst Hub
Catalyst Hub Covid-19 Crisis fund
Newday support
Other Church gifts
Other restricted giving:
International China Concern
Open Doors
Vineyard Foodbank and Community
2019 restricted giving		 2020
Unrestricted
Restricted
Total
funds
funds
funds
£
£
£
201,464
-
201,464
11,827
29,784
41,611
3,837
-
3,837
56,904
-
56,904
10,546
466
11,012
12,247
-
12,247
1,141
-
1,141
7,882
-
7,882
5,242
-
5,242
1,776
-
1,776
312,866
30,250
343,116
800
-
800
188
-
188
4,000
-
4,000
3,353
16,611
19,964
3,276
-
3,276
210
-
210
-
1,563
1,563
-
5,971
5,971
-
5,639
5,639
-
-
-
11,827
29,784
41,611		 2019
(year)
Total
funds
£
272,954
8,972
8,458
81,654
25,218
21,628
1,238
14,833
15,941
3,808
454,704
1,200
113
5,000
-
-
483
-
-
-
2,176
8,972

Page 17

(a company limited by guarantee without share capital)

CITY CHURCH NEWCASTLE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE EIGHT MONTHD ENDED 31 AUGUST 2020

(continued)

6 Elders and staff salaries and expenses

2020 2019
(year)
£ £
Salaries and fees (note 13) 179,149 239,181
Pension contributions (note 13) 7,728 8,807
Employer's national insurance 8,045 4,711
Expenses 6,542 20,255
______ ______
201,464 272,954
______ ______
No employee received £60,000 p.a. or more.
No. No.
Average number of employees 13
____		 14
____

Key management personnel are considered to comprise the directors and elders. Further details of remuneration and expenses for such personnel are set out in note 13.

7 Net income for the period

Net income is stated after charging:

Depreciation
Independent examiner’s fees		 2020
2019
(year)
£
£
5,242
15,941
1,281
3,148
_
___

Page 18

CITY CHURCH NEWCASTLE

(a company limited by guarantee without share capital)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE EIGHT MONTHS ENDED 31 AUGUST 2020

(continued)

8
Tangible fixed assets
Cost:
At 1 January 2020
Additions
Disposals
_
At 31 August 2020
Depreciation:
At 1 January 2020
Charge for the period
Disposals
At 31 August 2020
Net book amount:
At 31 August 2020
At 31 December 2019		 Freehold
Musical and
Office and
Furniture,
property
technical
computer
fixtures and
equipment
equipment
fittings
£
£
£
£
1,627,252
64,613
14,660
185,522
-
2,992
-
-
-
-
-
-
_
_
_
_
1,627,252
67,605
14,660
185,522
_
_
_
_
-
59,292
7,971
176,830
-
1,561
2,570
1,111
-
-
-
-
_
_
_
_
-
60,853
10,541
177,941
_
_
_
_
1,627,252
6,752
4,119
7,581
1,627,252
5,321
6,689
8,692
__
_
_
_		 Total
£
1,892,047
2,992
-
_
1,895,039
_
244,093
5,242
-
_
249,335
_
1,645,704
1,647,954
__

All tangible fixed assets are held to further the main objects of the charity.

9 Loan

The loan represents deferred consideration arising from the sale in August 2019 of the charity’s Rickleton property to House of Destiny Ministries. The loan is interest free and is secured by a legal charge over the Rickleton property. The loan is repayable in annual instalments of £15,000 expiring in December 2029.

Page 19

(a company limited by guarantee without share capital)

CITY CHURCH NEWCASTLE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE EIGHT MONTHS ENDED 31 AUGUST 2020

(continued)

10 Debtors

31
2020
£
Accounts receivable
315
Gift aid recoverable
5,739
Prepayments
500
Other debtors – loan, note 9
15,000

21,554
__
11
Creditors: amounts falling due within one year
£
Members’ loans
15,000
Bank loan (secured)
28,000
Trade creditors
2,965
Accruals and deferred income
5,603
Other taxes and social security
3,149
54,717
_
12
Creditors: amounts falling due after one year
£
Members’ loans
135,000
Bank loan (secured)
500,902

635,902
___		 December
2019
£
623
5,830
4,550
15,000
26,003
__
£
15,000
26,500
10,182
5,362
3,126
60,170
_
£
135,000
520,854

655,854
___

The members’ loans are unsecured, interest free and repayable in a timescale that works for the charity.

The bank loan is fully secured on the CastleGate freehold property. It is repayable by instalments, maturing in 2036. The amount due at 31 August 2020 is analysed as follows:

£
Within one year 28,000
between one and two years 56,000
between three and five years 84,000
after more than five years 360,902
______

Page 20

CITY CHURCH NEWCASTLE (a company limited by guarantee without share capital)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE EIGHT MONTHS ENDED 31 AUGUST 2020

(continued)

13 Transactions with directors/trustees

Some of the directors/trustees are engaged in Ministry. Ministry fees and salaries were paid during the period as follows:

Ministry fees:
I D Galloway
Salaries:
J P Shepherd		 2020
£
-
__
22,000
___		 2019
(year)
£
51,176
______

11,000
_____

Pension contributions amounting to £1,534 in the period were made for one director. Expenses amounting to £2,490 (2019 - year: £7,997) were paid to one (2019: two) of the directors to cover travelling expenses, hospitality, telephone costs and attending conferences.

14 Restricted funds

Fund
Restricted giving
Welcome boxes grant
Alpha food gift
Total
Fund
Restricted giving
Open Arms
Welcome boxes grant
Alpha food gift
Total		 1 January
2020
£
-
2,801
832
3,633
1 January
2019
£
-
451
-
-
451		 2020 Transfer
£
-
-
-
-
Transfer
£
-
-451
451
905
905		 31 August
2020
£
-
2,335
832
Income
£
29,784
-
-
29,784		 Expenditure
£
-29,784
-466
-
-30,250
2019
3,167
31 December
2019
£
-
-
2,801
832
Income
£
2,176
-
2,888
-
5,064		 Expenditure
£
-2,176
-
-538
-73
-2,787
3,633

Page 21

CITY CHURCH NEWCASTLE (a company limited by guarantee without share capital)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE EIGHT MONTHS ENDED 31 AUGUST 2020

(continued)

14 Restricted funds (continued)

Restricted funds carried forward are held as current assets.

Welcome boxes grant: Action Foundation gave this grant to provide welcome boxes to refugees and asylum seekers, which is organised by one of our City Groups.

Alpha food gift: a gift was made to ensure that there are enough funds to provide catering at Alpha courses.

15 Analysis of changes in net debt in the year

Cash and cash equivalents
Cash at bank
Borrowings
Due within one year
Bank loan
Members' loans
Due after one year
Bank loan
Members' loans
Total - net debt		 At 1 January
2020
£
104,442
-26,500
-15,000
-520,854
-135,000
-697,354
-592,912		 Cash flows
£
20,425
18,452
0
0
0
18,452
38,877		 Other non-
cash
changes
£
0
-19,952
0
19,952
0
0
0		 At 31 August
2020
£
124,867
-28,000
-15,000
-500,902
-135,000
-678,902
**-554,035 **

Page 22