Registered Charity no. 1133178 Registered Company no. 06972512
City Church Newcastle
Trustees Annual Report and Accounts
Year Ended 31 August 2021
WYATT & CO
Chartered Accountants 125 Main Street Garforth Leeds LS25 1AF
City Church Newcastle
Year Ended 31 August 2021
Contents Page
| Page | |
|---|---|
| Legal and Administrative Information | 1 |
| Trustees Annual Report | 2 |
| Independent Examiners Report | 7 |
| Statement of Financial Activities | 8 |
| Statement of Financial Position | 9 |
| Satement of Cash Flows | 10 |
| Notes to the Financial Statements | 11 |
City Church Newcastle
Year Ended 31 August 2021
Legal and Administrative Information
Reference
The Charity is called 'City Church Newcastle' also known as City Church.
Registered Charity Number 1133178 Registered Company Number 06972512 Registered Office The CastleGate Melbourne Street Newcastle upon Tyne NE1 2JQ Website www.city-church.co.uk Trustees and Directors Bethan Elliott Appointed 11 March 2022 James Faraday Philip Forthgill Rebecca Mason Appointed 10 March 2021 James Shepherd Janet Smith Chair of Trutsees Andrew Kahn Resigned 31 December 2021 Michelle Reed Appointed 10 March 2021 Simphiwe Swakamisa Resigned 10 March 2021 Key Management Personnel The Board of Trustees and Eldership Team Primary 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 Independent Examiner: Nigel Wyatt BSC FCA Wyatt & Co Chartered Accountants 125 Main Street, Garforth Leeds, LS25 1AF
1
City Church Newcastle
Year Ended 31 August 2021
Trustees Annual Report
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.
2
City Church Newcastle
Year Ended 31 August 2021
Trustees Annual Report
Risk management
The directors have identified risks and taken steps to mitigate them:
-
Risks to buildings and contents are insured.
-
Public liability risks are insured.
-
A safeguarding policy is in place including vetting procedures. The Safeguarding co-ordinator has the full backing of the leadership team and directors to implement the policy across all areas of Church life. The Church is a member of thirty-one:eight, formerly known as CCPAS; we are advised by them and run training provided by them.
-
The fire safety risk has been assessed. Detection and fire fighting equipment is maintained to current standards. An evacuation policy is in place with designated responsibilities. All those involved were offered training during the year.
-
Our financial risk was assessed and our reserves policy reviewed. In the event of the Church being unable to repay the bank loan, the buildings have more than sufficient equity.
A member of staff is charged with health and safety and risk assessing.
Objectives and activities
The objectives of the Church community are:-
-
The advancement of the Christian Faith.
-
The relief of persons who are in conditions of need, hardship or distress or who are aged or sick.
-
The provision of instruction in the Christian Faith at any educational establishment.
Purpose
City Church has the following vision and strategy:
Identity – who are we?
Enjoying God, Making Friends, Changing Lives
Vision – where are we going?
Gathering Thousands to Jesus
– Strategy how are we going to get there?
-
Making Room
-
Drinking Deeply
-
Living Generously
-
Stewarding Faithfully
Our values – what really matters to us?
-
Grace: life-changing unconditional love
-
Authenticity: discovering the truth of who we are
-
Leadership: equipping everyone to flourish and thrive
-
Courage: passionate enough to take bold steps
3
City Church Newcastle
Year Ended 31 August 2021
Trustees Annual Report
Achievements
September 2020 to August 2021 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 along the “covid journey”. 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
Having been required to move church life almost entirely online in March 2020 this year has seen us slowly but surely re-gathering in person, as rules have permitted. In November 2020 we regathered people in a safe and socially distanced way for the first time. There have been further spells of lockdowns and restrictions but since July 2021 we have been able to gather largely without restrictions whilst still streaming a high quality experience online.
It has been wonderful to see the church family growing and becoming more diverse as we have emerged from Covid.
Our City Kids groups have also been able to regather in person again. We have seen lots of new families join the church and have safely recruited many new volunteers to serve in our City Kids teams.
Similarly our student, youth groups and around 20 City Groups have been able to begin meeting together in person again creating contexts for people to build community and grow in their faith.
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.
Behind the scenes, we have continued to improve 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.
Drinking deeply of God’s love
We have continued to prioritise being a praying church in 2020-21. People gather every week day morning to pray on zoom and we have led many other prayer and worship initiatives which have engaged 100s of people. We also continue to share pastoral and prayer needs via our “Donkey Prayer” prayer chain emails.
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.
4
City Church Newcastle
Year Ended 31 August 2021
Trustees Annual Report
Living generously
In 2020-21 we decided to use at least 10% of our budget to invest in mission, social justice and partnerships as well as regularly inviting people to give to one off local and global funds. This has represented a significant increase in our giving “beyond ourselves”.
We continue to partner with our Catalyst Church family, particularly some churches in the North East of England, in supporting church planting locally and globally.
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 were able to assist them financially and practically in enjoying a well-earned sabbatical in the UK in summer 2021.
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.
We have worked hard over the course of the year to create a Covid safe environment and implement government guidelines, to ensure that staff and visitors can return to the building safely.
This we have also refurbished and redecorated our 3[rd] floor meeting space creating a welcoming environment enjoyed by various church groups including our Student and City Kids ministries.
Financial review
The statement of financial activities shows net unrestricted income of £151,071 for the period ending 31[st] of August 21, with higher income, and lower than anticipated expenditure due to Covid-19 restrictions.
Our regular giving this year increased to £376,112, compared with £240,280 in the prior financial year (which was only 8 months rather than 12).
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 £224,784 (up from the prior year end which was £124,867
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 2021, we held free reserves of £218,576, with some of this set aside for building improvement works.
5
City Church Newcastle
Year Ended 31 August 2021
Trustees Annual Report
Public Benefit
In considering the activities, the Trustees have had regard to the guidance issued by the Charity Commission on public benefit.
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:
-
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; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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.
This report has been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
Approved by the directors and signed on their behalf by:
James Paul Shepherd Director 23/06/2022 Date:
6
City Church Newcastle
Year Ended 31 August 2021
Independent Examiners Report
I report to the Trustees on my examination of the financial statements of City Church Newcastle ('the charity') for the year ended 31st August 2021.
Responsibilities and basis of report
As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 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 confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the charity as required by section 130 of the Act; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) 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.
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.
23/06/2022 Nigel Wyatt BSC FCA Date: Independent Examiner 125 Main Street Garforth Leeds LS25 1AF
7
City Church Newcastle
Year Ended 31 August 2021
Statement of Financial Activities
| Statement of Financial Activities | |||||
|---|---|---|---|---|---|
| 8 Months | |||||
| 2021 | 2020 | ||||
| Unrestricted | Restricted | Total | Total | ||
| Funds | Funds | Funds | Funds | ||
| Note | £ | £ | £ | £ | |
| Income | |||||
| Donations and legacies | 460,124 | 25,017 | 485,141 | 333,800 | |
| Charitable activities | 1,522 | - | 1,522 | 7,649 | |
| Other trading activities | 79,538 | - | 79,538 | 40,734 | |
| Investment income | 31 | - | 31 | 64 | |
────────── |
────────── |
────────── |
────────── |
||
| Total Income | 2 | 541,215 | 25,017 | 566,232 | 382,247 |
────────── |
────────── |
────────── |
────────── |
||
| Expenditure | |||||
| Expenditure on charitable activities | 3 | 390,144 | 25,194 | 415,338 | 343,116 |
────────── |
────────── |
────────── |
────────── |
||
| Total Expenditure | 390,144 | 25,194 | 415,338 | 343,116 | |
────────── |
────────── |
────────── |
────────── |
||
────────── |
────────── |
────────── |
────────── |
||
| Net income / (expenditure) | 151,071 | (177) | 150,894 | 39,131 | |
────────── |
────────── |
────────── |
────────── |
||
| Net income and net movement in funds | |||||
| Total funds brought forward | 13 | 1,233,339 | 3,167 | 1,236,506 | 1,197,375 |
| Transfers | (127) | 127 | - | - | |
────────── |
────────── |
────────── |
────────── |
||
| Total funds carried forward | 1,384,283 | 3,117 | 1,387,400 | 1,236,506 | |
────────── |
────────── |
────────── |
────────── |
All income and expenditure derive from continuing activities.
The statement is a combined Statement of Financial Activities and Income and Expenditure Account for the purposes of meeting both Companies Act and charity SORP reporting requirements.
8
City Church Newcastle
Year Ended 31 August 2021
Statement of Financial Position
| Statement of Financial Position | |||
|---|---|---|---|
| 2021 | 2020 | ||
| Note | £ | £ | |
| Fixed assets | |||
| Tangible fixed assets | 8 | 1,665,915 | 1,645,704 |
| Long term loan debtor | 9 | 120,000 | 135,000 |
| Current assets | |||
| Debtors | 10 | 23,466 | 21,554 |
| Cash at bank and in hand | 224,784 | 124,867 | |
────────── |
────────── |
||
| 248,250 | 146,421 | ||
| Creditors: amounts falling due within one year | 11 | 54,557 | 54,717 |
────────── |
────────── |
||
| Net current assets | 193,693 | 91,704 | |
| Creditors: amounts falling due after one year | 12 | 592,208 | 635,902 |
────────── |
────────── |
||
| Net assets | 14 | 1,387,400 | 1,236,506 |
────────── |
────────── |
||
| Funds of the charity | |||
| Restricted funds | 13 | 3,117 | 3,167 |
| Unrestricted funds | 13 | ||
| Unrestricted general | 39,392 | 121,614 | |
| Designated funds | 1,344,891 | 1,111,725 | |
────────── |
────────── |
||
| 1,384,283 | 1,233,339 | ||
────────── |
────────── |
||
| Total charity funds | 1,387,400 | 1,236,506 | |
────────── |
────────── |
Directors Responsibilities
The Directors are satisfied that for the year ended on 31st August 2021 the charitable company was entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 and that no member or members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Act. However, in accordance with section 145 of the Charities Act 2011, the accounts have been examined by an Independent Examiner.
The Directors acknowledge their responsibility for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. These Financial Statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and with FRS 102 (effective January 2019).
James Shepherd
Name of Trustee:
───────────────────────────────────────────────────
Signed on behalf of the Trustees:
Date of approval:
─────────────────────────────────────────────────── 23/06/2022
───────────────────────────────────────────────────
9
City Church Newcastle
Year Ended 31 August 2021
Statement of Cash Flows
| Statement of Cash Flows | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Cash flows from operating activities: | ||
| Net cash provided by (used in) operating activities | 173,331 | 41,805 |
────────── |
────────── |
|
| 173,331 | 41,805 | |
────────── |
────────── |
|
| Cash flows from investing activities: | ||
| Interest | 31 | 64 |
| Purchase of tangible fixed assets | (29,751) | (2,992) |
────────── |
────────── |
|
| Net cash provided by (used in) investing activities | (29,720) | (2,928) |
────────── |
────────── |
|
| Cash flows from financing activities: | ||
| Repayments on borrowing | (43,694) | (18,452) |
────────── |
────────── |
|
| Net cash provided by (used in) financing activities | (43,694) | (18,452) |
────────── |
────────── |
|
| Change in cash and cash equivalents in the reporting period | 99,917 | 20,425 |
| Cash and cash equivalents at the beginning of the reporting period | 124,867 | 104,442 |
────────── |
────────── |
|
| Cash and cash equivalents at the end of the reporting period | 224,784 | 124,867 |
────────── |
────────── |
|
| Reconciliation of net movement in funds to net cash flow from operating activities | ||
| 2021 | 2020 | |
| £ | £ | |
| Net movement in funds for the reporting period (as per the statement of financial activities) |
150,894 | 39,131 |
| Adjustments for: | ||
| Interest received | (31) | (64) |
| Depreciation of tangible fixed assets | 9,540 | 5,242 |
| (Increase)/Decrease in debtors | 13,088 | 4,449 |
| Increase/(Decrease) in creditors | (160) | (6,953) |
────────── |
────────── |
|
| Net cash provided by (used in) operating activities | 173,331 | 41,805 |
────────── |
────────── |
|
| Analysis of cash and cash equivalents | ||
| 2021 | 2020 | |
| £ | £ | |
| Cash in hand | 224,784 | 124,867 |
────────── |
────────── |
|
| Total cash and cash equivalents | 224,784 | 124,867 |
────────── |
────────── |
10
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
Basis of Preparation
City Church Newcastle is a registered charity with the Charity Commission for England and Wales. The address of the registered office is given in the charity information on page 1 of these financial statements. The principal activity is to advance the Christian faith in accordance with the statement of beliefs.
The charity constitutes a public benefit entity as defined by FRS 102. 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 (FRS 102) issued on 16 July 2014 as amended by Bulletin 1, the Financial Reporting Standard applicable in the United Kingdom (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are repared in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
Assessment of Going Concern
Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.
Fund Accounting
Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have set aside resources for a specific purpose.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or the term of specific appeal, often know as a ‘special offering’ in the church.
Further explanation of the nature and purpose of each fund is included in the notes to the accounts.
Accounting Period
For the financial year ending 31st of August 2020 the charity had a short 8 month period of account from the 31st December 2020 to the 31st of August 2020.
11
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
Incoming Resources
All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability.
• All voluntary income from members of the church are recognised as donations and are included in full, with associated Gift Aid receivable in the Statement of Financial Activities.
• Grants where entitlement is not conditional on the delivery of specific performance by the charity are recognised when the charity becomes unconditionally entitled to the grant.
• Income resources from charitable trading activities such as the letting of the building are accounted for when invoices are drawn up (as the point of entitlement).
• Donated services and facilities are included at the value to the charity where this can be quantified.
• Gifts in Kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised.
• Volunteer time, the value of voluntary support for the work of the church is not included in the accounts but is described in the Trustees Annual Report.
• Investment Income is included in the accounts when receivable.
Resources expended
Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.
Governance Costs
Include costs of the preparation and examination of statutory accounts, the costs of the trustees' meetings and cost of any legal advice to trustees on governance or constitutional matters.
Liability Recognition
Abilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
12
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
Tangible fixed assets
Assets over the value of £500 are capitalized. 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 | Not depreciated |
|---|---|
| Musical and Technical Equipment | 5 years on straight line basis |
| Office and computer equipment | 3 years on straight line basis |
| Furniture, fixtures and fittings | 15% on a 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.
Pensions
The charity operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.
Operating Leases
Rental charges payable under operating leases are charged on a straight line basis over the terms of the lease.
Taxation
The charity is exempt from tax on its charitable activities.
Judgements and key sources of estimation
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 5 for the carrying amount of the property plant and equipment, and note 1.5 for the useful economic lives for each class of assets.
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.
13
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
| **2 ** | Analysis of Income | |||
|---|---|---|---|---|
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2021 | ||
| £ | £ | £ | ||
| Donations and legacies | ||||
| Donations | 372,690 | 21,987 | 394,677 | |
| Gift Aid | 72,942 | 3,030 | 75,972 | |
| Grants | 14,492 | - | 14,492 | |
────────── |
────────── |
────────── |
||
| 460,124 | 25,017 | 485,141 | ||
| Charitable activities | ||||
| Church activities | 742 | - | 742 | |
| Serving others | - | - | - | |
| Reimbursements | 780 | - | 780 | |
────────── |
────────── |
────────── |
||
| 1,522 | - | 1,522 | ||
| Other trading activities | ||||
| Rental income | 79,538 | - | 79,538 | |
────────── |
────────── |
────────── |
||
| 79,538 | - | 79,538 | ||
| Investment Income | ||||
| Bank interest | 31 | - | 31 | |
────────── |
────────── |
────────── |
||
| 31 | - | 31 | ||
| Other | ||||
| Other Income | - | - | - | |
────────── |
────────── |
────────── |
||
| - | - | - | ||
────────── |
────────── |
────────── |
||
| Total Income | 541,215────────── |
25,017────────── |
566,232────────── |
During the year, the church received £14,492 (2020: £15,441) from the Governments Covid-19 Job Retention Scheme. There were no unfulfilled conditions of the funds received from the Government during the year.
14
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
2 Analysis of Income (Continued)
| Analysis of Income(Continued) | |||
|---|---|---|---|
| 8 Months | |||
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Donations and legacies | |||
| Donations | 240,084 | 25,030 | 265,114 |
| Gift Aid | 48,491 | 4,754 | 53,245 |
| Grants | 15,441 | - | 15,441 |
────────── |
────────── |
────────── |
|
| 304,016 | 29,784 | 333,800 | |
| Charitable activities | |||
| Church activities | 4,885 | - | 4,885 |
| Serving others | 300 | - | 300 |
| Reimbursements | 2,464 | - | 2,464 |
────────── |
────────── |
────────── |
|
| 7,649 | - | 7,649 | |
| Other trading activities | |||
| Rental income | 40,734 | - | 40,734 |
────────── |
────────── |
────────── |
|
| 40,734 | - | 40,734 | |
| Investment Income | |||
| Bank interest | 64 | - | 64 |
────────── |
────────── |
────────── |
|
| 64 | - | 64 | |
────────── |
────────── |
────────── |
|
| Total Income | 352,463 | 29,784 | 382,247 |
────────── |
────────── |
────────── |
15
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
3 Expenditure on Charitable Activities By Fund Type
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Activity and Event Costs | 6,291 | - | 6,291 |
| Administration Costs | 5,502 | - | 5,502 |
| Bank Charges | 1,482 | 127 | 1,609 |
| Depreciation | 8,990 | - | 8,990 |
| External Giving | 27,445 | 25,067 | 52,512 |
| Governance | 2,275 | - | 2,275 |
| Interest | 9,870 | - | 9,870 |
| IT, Equipment and Technology Costs | 11,352 | - | 11,352 |
| Ministry Costs | 2,512 | - | 2,512 |
| Premises Costs | 65,384 | - | 65,384 |
| Staff Expenses | 3,657 | - | 3,657 |
| Staff Salaries | 242,305 | - | 242,305 |
| Volunteer Expenses | 3,079 | - | 3,079 |
────────── |
────────── |
────────── |
|
| 390,144 | 25,194 | 415,338 | |
────────── |
────────── |
────────── |
|
| 8 Months | |||
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Activity and Event Costs | 9,563 | - | 9,563 |
| Administration Costs | 1,093 | - | 1,093 |
| Bank Charges | 1,141 | - | 1,141 |
| Depreciation | 5,242 | - | 5,242 |
| External Giving | 11,827 | 30,250 | 42,077 |
| Governance | 1,567 | - | 1,567 |
| Interest | 7,882 | - | 7,882 |
| IT, Equipment and Technology Costs | 8,807 | - | 8,807 |
| Ministry Costs | 1,467 | - | 1,467 |
| Premises Costs | 60,715 | - | 60,715 |
| Staff Expenses | 5,443 | - | 5,443 |
| Staff Salaries | 194,922 | - | 194,922 |
| Volunteer Expenses | 3,195 | - | 3,195 |
────────── |
────────── |
────────── |
|
| 312,866 | 30,250 | 343,116 | |
────────── |
────────── |
────────── |
16
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
4 Volunteers
The church benefits greatly from the voluntary contributions of time and money by its formal members and regular attendees. Please refer to the trustees' report for further detail about volunteer contributions in the organisation.
5 Independent examination fees
Fees payable to the independent examiner for:
| Independent examination fees Fees payable to the independent examiner for: |
||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Independent examination and preparation of the financial statements |
2,040 | 1,281 |
6 Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 8 Months | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Wages and salaries | 216,142 | 179,149 |
| Social security costs | 8,593 | 7,728 |
| Employer contributions to pension plans | 17,570 | 8,045 |
────────── |
────────── |
|
| 242,305 | 194,922 | |
────────── |
────────── |
The average head count of employees during the year was as follows:
Average Head Count
| 2021 | 2020 |
|---|---|
| 14 | 13 |
No employees received employee benefits of more than £60,000 during the year or the prior year.
Key Management Personnel
The charity considers its key management personnel to be The Board of Trustees together with the Eldership Team. The total employee benefits received by the key management personnel (including employer national insurance and pension contributions) was £89,589.
17
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
7 Trustee Remuneration, Expenses and Donations
During the year one trustee (who is also a member of the Eldership Team) received remuneration. The remuneration paid during the year is for the employees role within the church and not for their role as a trustee. The charity's memorandum of articles gives authority for such remuneration to be paid. The total remuneration paid during the year is as follows:
| 8 | Months | ||
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| James Shepherd | 40,710 | 27,140 |
During the year two trustees incurred out of pocket expenses totalling £45.39 which were all incurred for the day to day running of the charity's activities.
During the year the total aggregated donations made to the charity by the trustees during the year was £21,750. There were no conditions attached to the donations.
8 Tangible Fixed Assets
| Tangible Fixed Assets | |||||
|---|---|---|---|---|---|
| Musical and | Office and | Furniture | |||
| Freehold | Technical | Computer | Fixtures and | ||
| Property | Equipment | Equipment | Fittings | Total | |
| £ | £ | ||||
| Costs: | |||||
| At 1st September 2020 | 1,627,252 | 67,605 | 14,660 | 185,522 | 1,895,039 |
| Additions | - | 885 | 550 | 28,316 | 29,751 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| At 31st August 2021 | 1,627,252 | 68,490 | 15,210 | 213,838 | 1,924,790 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| Depreciation: | |||||
| At 1st September 2020 | - | 60,853 | 10,541 | 177,941 | 249,335 |
| Depreciation Charge | - | 1,840 | 2,413 | 5,287 | 9,540 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| At 31st August 2021 | - | 62,693 | 12,954 | 183,228 | 258,875 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| Net Book Value: | |||||
────────── |
────────── |
────────── |
────────── |
────────── |
|
| At 31st August 2021 | 1,627,252 | 5,797 | 2,256 | 30,610 | 1,665,915 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| At 31st September 2020 | 1,627,252 | 6,752 | 4,119 | 7,581 | 1,645,704 |
18
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
9 Long Term Loan Debtor
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.
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Between one and two years | 30,000 | 30,000 |
| Between three and five years | 45,000 | 45,000 |
| After more than five years | 45,000 | 60,000 |
────────── |
────────── |
|
| 120,000 | 135,000 | |
────────── |
────────── |
|
| Debtors | ||
| 2021 | 2020 | |
| £ | £ | |
| Accounts receivable | 1,579 | 315 |
| Gift Aid recoverable | 6,045 | 5,739 |
| Prepayments | 500 | 500 |
| Other debtors | 342 | - |
| Loan | 15,000 | 15,000 |
────────── |
────────── |
|
| 23,466 | 21,554 | |
────────── |
────────── |
10 Debtors
11 Creditors: amounts falling due within one year
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Members loans | 15,000 | 15,000 |
| Bank loan (secured) | 28,000 | 28,000 |
| Trade creditors | 7,881 | 2,965 |
| Accruals | 2,040 | 5,603 |
| Other taxes and social security | - | 3,149 |
| Credit card | 1,636 | - |
────────── |
────────── |
|
| 54,557 | 54,717 | |
────────── |
────────── |
19
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
12 Creditors: amounts falling due after one year
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Members loans | 120,000 | 135,000 |
| Bank loan (secured) | 472,208 | 500,902 |
────────── |
────────── |
|
| 592,208 | 635,902 | |
────────── |
────────── |
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 2021 is analysed as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Within one year | 28,000 | 28,000 |
| Between one and two years | 56,000 | 56,000 |
| Between three and five years | 84,000 | 84,000 |
| After more than five years | 332,208 | 360,902 |
────────── |
────────── |
|
| 500,208 | 528,902 | |
────────── |
────────── |
20
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
13 Analysis of Charitable Funds
Unrestricted Funds
| Unrestricted Funds | |||||
|---|---|---|---|---|---|
| 1 Sept 20 | Income | Expenditure | Transfers | 31 Aug 2021 | |
| £ | £ | £ | £ | £ | |
| Unrestricted | |||||
| General | 121,614 | 541,215 | (369,854) | (253,583) | 39,392 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| 121,614 | 541,215 | (369,854) | (253,583) | 39,392 | |
| Designated | |||||
| Builidng, Assets & Mortgage |
1,086,877 | - | (18,859) | 97,689 | 1,165,707 |
| Working Capital | - | - | - | 78,000 | 78,000 |
| Big Ticket Building | 24,848 | - | - | 51,152 | 76,000 |
| Building Development Fund |
- | - | (1,431) | 26,615 | 25,184 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| 1,111,725 | - | (20,290) | 253,456 | 1,344,891 | |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| Total Unrestricted | 1,233,339 | 541,215 | (390,144) | (127) | 1,384,283 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| Restricted Funds | |||||
| Gifts | - | 25,017 | (25,144) | 127 | - |
| Alpha Food Gift | 832 | - | - | - | 832 |
| Welcome Boxes | 2,335 | - | (50) | - | 2,285 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
| Total Restricted | 3,167 | 25,017 | (25,194) | 127 | 3,117 |
────────── |
────────── |
────────── |
────────── |
────────── |
|
────────── |
────────── |
────────── |
────────── |
────────── |
|
| Total Funds | 1,236,506 | 566,232 | (415,338) | - | 1,387,400 |
────────── |
────────── |
────────── |
────────── |
────────── |
Fund Transfer
Building, Assets & Mortgage
Working Capital Big Ticket Building Building Development Fund
Transfer for the fund balance to match the closing fixed asset balance less secured mortgage.
Transfer to establish the designated fund Transfer to establish the designated fund Transfer to establish the designated fund
21
City Church Newcastle
Year Ended 31 August 2021
Notes to the Financial Statements
Fund Descriptions
Designated Funds
Building, Assets & Mortgage
Working Capital Big Ticket Building
Building Development Fund
Fund balance to match the closing fixed asset balance less secured mortgage.
Fund established to ringfence the organisations essential reserves balance in line with the updated reserves policy. Fund set aside for replacing and renewing significant and large building items.
Fund set aside for overall building development work.
Restricted Funds
Gifts Restricted one-off offerings where money is passed on Alpha Food Gift A restricted gift for Alpha Course Food Welcome Boxes Grant for provision welcoming refugees to the church
14 Analysis of net assets between funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Fixed Assets | 1,665,915 | - | 1,665,915 |
| Current Assets | 245,133 | 3,117 | 248,250 |
| Creditors less than 1 year | (54,557) | - | (54,557) |
| Creditors after one 1 year | (592,208) | - | (592,208) |
────────── |
────────── |
────────── |
|
| 1,264,283 | 3,117 | 1,267,400 | |
────────── |
────────── |
────────── |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Fixed Assets | 1,645,704 | - | 1,645,704 |
| Current Assets | 143,254 | 3,167 | 146,421 |
| Creditors less than 1 year | (54,717) | - | (54,717) |
| Creditors after one 1 year | (635,902) | - | (635,902) |
────────── |
────────── |
────────── |
|
| 1,098,339 | 3,167 | 1,101,506 | |
────────── |
────────── |
────────── |
15 Company Status
The company is a company limited by guarantee and not having a share capital. Every member of the company undertakes to contribute in a winding up sum not exceeding £1 whilst they are a member, or within one year after ceasing to be a member, towards debts and liabilities contracted before ceasing to be a member.
16 Related party transactions
There were no related party transactions which took place during the year (2020: £0).
22