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← City Church Newcastle

2023-08-31-accounts

Registered Charity no. 1133178 Registered Company no. 06972512

City Church Newcastle

Trustees Annual Report and Accounts

Year Ended 31 August 2023

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WYATT & CO

Chartered Accountants 125 Main Street Garforth Leeds LS25 1AF

City Church Newcastle

Year Ended 31 August 2023

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 2023

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 Janet Mary Smith Chair of trustees James Keith Senior Bethan Elliot Michelle Reed Rebecca Mason James Shepherd Philip Fothergill Resigned January 2024 Joseph Williams Appointed 15 November 2023 Andrew Bramhall Appointed 15 Novemeber 2023

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 2023

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 Senior Leadership Team). The main instrument that governs expenditure throughout the year is the annual budget, which is drawn up by the finance team (Lead Pastor, Finance Administrator, ExpensePlus) 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 upon 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 are 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 the directors. 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.

Risk management

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

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City Church Newcastle

Year Ended 31 August 2023

Trustees Annual Report

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 values:

Vision – where are we going?

Gathering Thousands to Jesus

Our values – what really matters to us?

3

City Church Newcastle

Year Ended 31 August 2023

Trustees Annual Report

Achievements

It is impossible to capture the vast array of things which have happened across the life of City Church between September 2022 and August 2023. But it was a year in which we focussed, and saw significant changes, across the following 4 categories:

We are profoundly thankful to God for the way he has led us through this season, and the patience, generosity and faith with of the City Church family. So much love, kindness, care and understanding has been expressed within the community and also given and received by friends and neighbours across the city and beyond.

Some of our highlights are shown below:

Growth

Our Sunday gatherings continued to grow – both in number and in the diversity of our church family. Across the course of the year it was our absolute joy to baptise 33 people.

Ministries like City Kids, youth and students and City Groups have also continued to grow – creating contexts for people of all ages and stages to build community and grow in faith. Much work has gone into raising up and supporting leaders to serve across all these contexts.

Some particular highlights across these ministries would be:

Depth

We have continued to prioritize prayer – particularly through our 24-7 week of prayer, our morning Zoom prayer, our “donkey prayer” prayer chain and our new encounter nights.

We also placed a fresh emphasis on discipleship – drawing over 150 people into “discipleship triplets”, groups designed to help them grow in their faith.

We launched a new internship programme – which gathered a dozen or so people who committed to a year of more intentional discipleship and serving the church. This internship programme is designed to work alongside people's regular jobs and lives. The highlight of the year was probably their mission trip to Albania.

We also saw a number of people engage with theological training through our connection with groups such as the Leeds School of Theology.

Our sense of connection with our wider Catalyst family of churches has grown through leaders' events and many from our church family at the Love: Nations conference.

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City Church Newcastle

Year Ended 31 August 2023

Trustees Annual Report

Serving the City and Beyond

Our City Refugee Welcome project, serving asylum seekers and refugees in Gateshead and beyond, has gone from strength to strength with regular drop-ins, sports clubs, activities for kids and advocacy work. Similarly, our Food Pantry in Shieldfield continues to play a vital role in that community.

Further afield we have continued to give generously to a range of mission partners and are exploring deeper connections with some wonderful churches and projects in India and beyond.

Wise Stewardship

After a year of gathering on a trial basis, our new Senior Leadership Team is now firmly established bringing oversight to the whole life of the church.

We have invested significantly in our building undertaking a substantial high-level works project on our windows and building structure. We have also been responding to the growing complexity of the church by improving our systems for line management (staff and volunteer), HR policies and more.

Other Significant Info

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.

Financial Review

The church is currently in a good financial position.

Our regular giving this year increased to £446,300 compared with £443,167 in 2021-22, and we continue to be very thankful for the financial commitment of Church members, particularly in these difficult times.

The statement of financial position shows cash balance increased from £327,790 to £384,517 during the 2022-23 financial year.

Significant building works took place in the 2022-23 financial year. We also had a Gift Day which raised £133,094, which is held in a restricted fund for future charitable spending.

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 £78,000 (approx. 2 months of expenditure) as free reserves. At 31 August 2023 – including effective “reserves” in our general fund - we held free reserves of £112,437, providing some extra reserves (in addition to money held in funds such as our “Big Ticket Building Fund”).

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City Church Newcastle

Year Ended 31 August 2023

Trustees Annual Report

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.

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

James Shepherd

Name of Trustee:

Signed on Behalf of the Trustees:

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20/05/2024 Date of Approval:

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City Church Newcastle

Year Ended 31 August 2023

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 2023.

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:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the financial statements do not accord with those records; or

  3. 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.

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Nigel Wyatt BSC FCA Date: 20/05/2024 Independent Examiner 125 Main Street Garforth Leeds LS25 1AF

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City Church Newcastle

Year Ended 31 August 2023

Statement of Financial Activities

Statement of Financial Activities
2023 2022
Unrestricted Restricted Total Total
Funds Funds Funds Funds
Note £ £ £ £
Income
Donations and legacies 565,167 201,429 766,596 555,420
Charitable activities 24,126 - 24,126 13,427
Other trading activities 70,406 - 70,406 65,322
Investment income 1,008 - 1,008 80
Other income 30 - 30 458
────────── ────────── ────────── ──────────
Total Income 2 660,737 201,429 862,166 634,707
────────── ────────── ────────── ──────────
Expenditure
Expenditure on charitable activities 3 677,586 72,247 749,833 490,614
────────── ────────── ────────── ──────────
Total Expenditure 677,586 72,247 749,833 490,614
────────── ────────── ────────── ──────────
────────── ────────── ────────── ──────────
Net Income / (Expenditure) (16,849) 129,182 112,333 144,093
────────── ────────── ────────── ──────────
Net Income and Net Movement in Funds
Total funds brought forward 13 1,530,229 1,264 1,531,493 1,387,400
Transfers (20,040) 20,040 - -
────────── ────────── ────────── ──────────
Total Funds Carried Forward 1,493,340 150,486 1,643,826 1,531,493
────────── ────────── ────────── ──────────

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.

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City Church Newcastle

Year Ended 31 August 2023

Statement of Financial Position

Statement of Financial Position
2023 2022
Note £ £
Fixed Assets
Tangible fixed assets 8 1,682,448 1,677,913
Long term loan debtor 9 90,000 105,000
Current Assets
Debtors 10 64,684 25,379
Cash at bank and in hand 384,517 327,790
────────── ──────────
449,201 353,169
Creditors: amounts falling due within one year 11 67,129 55,587
────────── ──────────
Net Current Assets 382,072 297,582
Creditors: amounts falling due after one year 12 510,695 549,002
────────── ──────────
Net Assets 14 1,643,826 1,531,493
────────── ──────────
Funds of the Charity
Restricted funds 13 150,486 1,264
Unrestricted funds 13
Unrestricted general 21,331 19,076
Designated funds 1,472,009 1,511,153
────────── ──────────
1,493,340 1,530,229
────────── ──────────
Total Charity Funds 1,643,826 1,531,493
────────── ──────────

Directors Responsibilities

The Directors are satisfied that for the year ended on 31st August 2023 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:

───────────────────────────────────────────────────

20/05/2024

───────────────────────────────────────────────────

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City Church Newcastle

Year Ended 31 August 2023

Statement of Cash Flows

Statement of Cash Flows
2023 2022
£ £
Cash Flows From Operating Activities
Net cash provided by (used in) operating activities 99,203 173,245
────────── ──────────
99,203 173,245
────────── ──────────
Cash Flows From Investing Activities
Interest 1,008 80
Purchase of tangible fixed assets (20,176) (37,832)
────────── ──────────
Net cash provided by (used in) investing activities (19,168) (37,752)
────────── ──────────
Cash Flows From Financing Activities
Repayments on borrowing (23,308) (43,206)
────────── ──────────
Net cash provided by (used in) financing activities (23,308) (43,206)
────────── ──────────
Change in cash and cash equivalents in the reporting period 56,727 103,006
Cash and cash equivalents at the beginning of the reporting period 327,790 224,784
────────── ──────────
Cash and Cash Equivalents at the End of the Reporting Period 384,517 327,790
────────── ──────────
Reconciliation of Net Movement in Funds to Net Cash Flow From Operating Activities
2023 2022
£ £
Net movement in funds for the reporting period (as per the
statement of financial activities)		 112,333 144,093
Adjustments for:
Interest received (1,008) (80)
Depreciation of tangible fixed assets 15,641 15,115
(Increase)/Decrease in debtors (24,305) 13,087
Increase/(Decrease) in creditors (3,458) 1,030
────────── ──────────
Net cash provided by (used in) operating activities 99,203 173,245
────────── ──────────
Analysis of Cash and Cash Equivalents
2023 2022
£ £
Cash at bank 384,517 327,790
────────── ──────────
Total cash and cash equivalents 384,517 327,790
────────── ──────────

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City Church Newcastle

Year Ended 31 August 2023

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 prepared 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.

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City Church Newcastle

Year Ended 31 August 2023

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 at 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

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

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City Church Newcastle

Year Ended 31 August 2023

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.

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City Church Newcastle

Year Ended 31 August 2023

Notes to the Financial Statements

**2 ** Analysis of Income
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Donations and Legacies
Donations 446,300 124,327 570,627
Gift aid 84,646 20,236 104,882
Grants 34,221 56,866 91,087
────────── ──────────
──────────
565,167 201,429 766,596
Charitable Activities
Church activities 21,176 - 21,176
Serving others - - -
Reimbursements 2,950 - 2,950
────────── ──────────
──────────
24,126 - 24,126
Other Trading Activities
Rental income 70,406 - 70,406
────────── ──────────
──────────
70,406 - 70,406
Investment Income
Bank interest 1,008 - 1,008
────────── ──────────
──────────
1,008 - 1,008
Other
Other income 30 - 30
────────── ──────────
──────────
30 - 30
────────── ──────────
──────────
Total Income 660,737
──────────		 201,429
──────────		 862,166

──────────

During the year, the church received £0 (2022: £342) from the Governments Covid-19 Job Retention Scheme.

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City Church Newcastle

Year Ended 31 August 2023

Notes to the Financial Statements

2 Analysis of Income (Continued)

Analysis of Income(Continued)
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Donations and Legacies
Donations 433,167 14,759 447,926
Gift aid 84,653 1,962 86,615
Grants 879 20,000 20,879
────────── ──────────
──────────
518,699 36,721 555,420
Charitable Activities
Church activities 11,509 - 11,509
Serving others - - -
Reimbursements 1,918 - 1,918
────────── ──────────
──────────
13,427 - 13,427
Other Trading Activities
Rental income 65,322 - 65,322
────────── ──────────
──────────
65,322 - 65,322
Investment Income
Bank interest 80 - 80
────────── ──────────
──────────
80 - 80
Other
Other income 458 - 458
────────── ──────────
──────────
458 - 458
────────── ──────────
──────────
Total Income 597,986 36,721 634,707
────────── ──────────
──────────

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City Church Newcastle

Year Ended 31 August 2023

Notes to the Financial Statements

3 Expenditure on Charitable Activities By Fund Type

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Activity and event costs 44,413 11,528 55,941
Administration costs 6,985 1,214 8,199
Bank charges 2,633 - 2,633
Depreciation 14,577 - 14,577
External giving 25,744 30,721 56,465
Governance 2,135 - 2,135
Interest 11,337 - 11,337
IT, equipment and technology costs 11,897 - 11,897
Ministry costs 15,951 - 15,951
Premises costs 271,822 - 271,822
Staff expenses 11,886 637 12,523
Staff salaries 257,086 28,147 285,233
Volunteer expenses 1,120 - 1,120
────────── ──────────
──────────
677,586 72,247 749,833
────────── ──────────
──────────
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Activity and event costs 23,252 17,207 40,459
Administration costs 7,033 - 7,033
Bank charges 1,679 - 1,679
Depreciation 6,231 - 6,231
External giving 30,638 15,999 46,637
Governance 3,583 - 3,583
Interest 11,972 - 11,972
IT, equipment and technology costs 12,829 611 13,440
Ministry costs 9,221 - 9,221
Premises costs 89,260 - 89,260
Staff expenses 8,846 - 8,846
Staff salaries 244,829 5,102 249,931
Volunteer expenses 2,322 - 2,322
────────── ──────────
──────────
451,695 38,919 490,614
────────── ──────────
──────────

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City Church Newcastle

Year Ended 31 August 2023

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:
2023 2022
£ £
Independent examination and preparation of the financial
statements		 2,109 1,981

6 Staff Costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2023 2022
£ £
Wages and salaries 253,754 206,967
Social security costs 12,174 9,405
Employer contributions to pension plans 19,305 17,911
────────── ──────────
285,233 234,283
────────── ──────────

The average headcount of employees during the year was as follows:

2023 2022
Average Headcount 14 14

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 £96,365 (2022: £77,364).

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City Church Newcastle

Year Ended 31 August 2023

Notes to the Financial Statements

7 Trustee Remuneration, Expenses and Donations

During the year two trustees (who were also a members of the Eldership Team) received remuneration. The remuneration paid during the year was 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:

2023 2022
£ £
James Shepherd 44,744 44,747
Andrew Bramhall 51,621 -

During the year two trustees incurred out of pocket expenses totalling £3,796 which were all incurred for the day to day running of the charity's activities. (2022: £134)

During the year the total aggregated donations made to the charity by the trustees was £61,220. There were no conditions attached to the donations. (2022: £31,723)

8 Tangible Fixed Assets

Musical and Office and Furniture
Freehold Technical Computer Fixtures and
Property Equipment Equipment Fittings Total
£ £
Costs
At 1st September 2022 1,627,252 86,383 15,210 221,867 1,950,712
Additions - 10,073 774 9,329 20,176
Disposals - - (1,889) - -
────────── ────────── ────────── ────────── ──────────
At 31st August 2023 1,627,252 96,456 14,096 231,196 1,970,888
────────── ────────── ────────── ────────── ──────────
Depreciation
At 1st September 2022 - 68,111 15,026 189,662 272,799
Depreciation Charge - 7,433 441 7,767 15,641
Disposals - - (1,889) - -
────────── ────────── ────────── ────────── ──────────
At 31st August 2023 - 75,544 13,578 197,429 288,440
────────── ────────── ────────── ────────── ──────────
Net Book Value
────────── ────────── ────────── ────────── ──────────
At 31st August 2023 1,627,252 20,912 518 33,767 1,682,448
────────── ────────── ────────── ────────── ──────────
At 31st September 2022 1,627,252 18,272 184 32,205 1,677,913

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City Church Newcastle

Year Ended 31 August 2023

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.

2023 2022
£ £
Between one and two years 30,000 30,000
Between three and five years 45,000 45,000
After more than five years 15,000 30,000
────────── ──────────
90,000 105,000
────────── ──────────
**10 ** Debtors
2023 2022
£ £
Accounts receivable 41,949 -
Gift Aid recoverable 7,726 6,089
Prepayments 9 4,290
Other debtors - -
Loan 15,000 15,000
────────── ──────────
64,684 25,379
────────── ──────────

11 Creditors: amounts falling due within one year

2023 2022
£ £
Members loans 30,000 15,000
Bank loan (secured) 28,000 28,000
Trade creditors 5,898 4,896
Accruals 852 5,376
Deferred income 970 -
Credit card 1,409 2,315
────────── ──────────
67,129 55,587
────────── ──────────

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City Church Newcastle

Year Ended 31 August 2023

Notes to the Financial Statements

12 Creditors: amounts falling due after one year

2023 2022
£ £
Members loans 90,000 105,000
Bank loan (secured) 420,695 444,002
────────── ──────────
510,695 549,002
────────── ──────────

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 2023 is analysed as follows:

2023 2022
£ £
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 280,695 304,002
────────── ──────────
448,695 472,002
────────── ──────────

20

City Church Newcastle

Year Ended 31 August 2023

Notes to the Financial Statements

13 Analysis of Charitable Funds

Unrestricted Funds

1 Sept 22 Income Expenditure Transfers 31 Aug 2023
£ £ £ £ £
Unrestricted
General 19,076 602,390 (419,734) (181,732) 20,000
Events & chargeables - 26,672 (24,356) (985) 1,331
────────── ──────────
──────────		 ──────────
──────────
19,076 629,062 (444,090) (182,717) 21,331
Designated
Builidng, assets
mortgage		 & 1,205,911 - (25,914) 38,757 1,218,754
Working capital 78,000 - - - 78,000
Big ticket building 121,394 31,675 (178,778) 173,555 147,846
Building development
fund		 87,751 - - (87,751) -
Mission, social action
& partnerships		 18,097 - (28,804) 30,616 19,909
International
leadership - - - 7,500 7,500
d
l
t f		 d ────────── ──────────
──────────		 ──────────
──────────
1,511,153 31,675 (233,496) 162,677 1,472,009
────────── ──────────
──────────		 ──────────
──────────
Total Unrestricted 1,530,229 660,737 (677,586) (20,040) 1,493,340
────────── ──────────
──────────		 ──────────
──────────
Restricted Funds
Gifts 722 10,469 (10,851) - 340
Alpha food gift 197 - (197) - -
Welcome boxes 345 - (345) - -
Mission, social action
& partnerships: CRW		 - 56,866 (39,770) 20,040 37,136
Gift day 2022 - 133,094 (21,084) - 112,010
Punjab trip restricted
gift		 - 1,000 - - 1,000
────────── ──────────
──────────		 ──────────
──────────
Total Restricted 1,264 201,429 (72,247) 20,040 150,486
────────── ──────────
──────────		 ──────────
──────────
────────── ──────────
──────────		 ──────────
──────────
Total Funds 1,531,493 862,166 (749,833) - 1,643,826
────────── ──────────
──────────		 ──────────
──────────

21

City Church Newcastle

Year Ended 31 August 2023

Notes to the Financial Statements

Analysis of Charitable Funds cont.

Unrestricted Funds
1 Sept 21 Income Expenditure Transfers 31 Aug 2022
£ £ £ £ £
Unrestricted
General 39,392 597,986 (390,239) (228,063) 19,076
────────── ──────────
──────────		 ──────────
──────────
39,392 597,986 (390,239) (228,063) 19,076
Designated
Building, assets &
mortgage		 1,165,707 - (19,394) 59,598 1,205,911
Working capital 78,000 - - - 78,000
Big ticket building 76,000 - (11,415) 56,809 121,394
Building development
fund		 25,184 - (9) 62,576 87,751
Mission, social action
& partnerships - - (30,638) 48,735 18,097
────────── ──────────
──────────		 ──────────
──────────
1,344,891 - (61,456) 227,718 1,511,153
────────── ──────────
──────────		 ──────────
──────────
Total Unrestricted 1,384,283 597,986 (451,695) (345) 1,530,229
────────── ──────────
──────────		 ──────────
──────────
Restricted Funds
Gifts - 16,721 (15,999) - 722
Alpha food gift 832 - (635) - 197
Welcome boxes 2,285 - (1,940) - 345
Mission, social action
& partnerships: CRW		 - 20,000 (20,345) 345 -
────────── ──────────
──────────		 ──────────
──────────
Total Restricted 3,117 36,721 (38,919) 345 1,264
────────── ──────────
──────────		 ──────────
──────────
────────── ──────────
──────────		 ──────────
──────────
Total Funds 1,387,400 634,707 (490,614) - 1,531,493
────────── ──────────
──────────		 ──────────
──────────

Fund Transfers

Building, assets & mortgage

Big ticket building Building development fund Mission, social action & partnerships

Transfer for the fund balance to match the closing fixed asset balance less secured mortgage.

Transfer to increase the designated fund. Transfer to increase the designated fund. Transfer to increase the designated fund.

22

City Church Newcastle

Year Ended 31 August 2023

Notes to the Financial Statements

Fund Descriptions Designated Funds

Building, assets & mortgage

Working capital Big ticket building

Building development fund Mission, social action & partnerships

International leadership 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. Grants Funding for a City Refugee Welcome Co-ordinator.

Money set aside for enabling individuals from overseas to come to the UK to serve the church and to study.

Restricted Funds

Gifts Alpha food gift Welcome boxes Mission, social action & partnerships: CRW Gift day 2022

Punjab trip restricted gift

Restricted one-off offerings where money is passed on. A restricted gift for Alpha Course Food. Grant for provision welcoming refugees to the church. Grants Funding for a City Refugee Welcome Co-ordinator.

Special Offering for Church Building works and Establishing a CAP Centre Restricted Gift to be used towards an overseas trip

23

City Church Newcastle

Year Ended 31 August 2023

Notes to the Financial Statements

14 Analysis of Net Assets Between Funds

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Fixed assets 1,772,448 - 1,772,448
Current assets 298,715 150,486 449,201
Creditors less than 1 year (67,129) - (67,129)
Creditors after one 1 year (510,695) - (510,695)
────────── ──────────
──────────
1,493,340 150,486 1,643,826
────────── ──────────
──────────
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Fixed assets 1,782,913 - 1,782,913
Current assets 351,905 1,264 353,169
Creditors less than 1 year (55,587) - (55,587)
Creditors after one 1 year (549,002) - (549,002)
────────── ──────────
──────────
1,530,229 1,264 1,531,493
────────── ──────────
──────────

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 (2022: £0).

17 Prior Period Adjustment

In the year ending 31st August 2022, £11,910 of building work professional fees were capitalised. However, during the accounts examination for the year ending 31st August 2023 (when the majority of the budiling work was completed) it was concluded that the nature of the building work carried out did not meet the criteria to recognise it as an asset and therefore the capitalisation of the 2022 expenses have reversed and associated depreciation removed. The 2022 figures in this set of accounts have been adjusted accordingly.

Original Restated
£ £
Fixed asset net book value 1,688,632 1,677,913
Unrestricted fund balance 1,540,948 1,530,229

24