Registered Charity no. 1133178 Registered Company no. 06972512
City Church Newcastle
Trustees Annual Report and Accounts
Year Ended 31 August 2024
WYATT & CO
Chartered Accountants 125 Main Street Garforth Leeds LS25 1AF
City Church Newcastle
Year Ended 31 August 2024
Contents Page
| Page | |
|---|---|
| Legal and Administrative Information | 1 |
| Trustees Annual Report | 2 |
| Independent Examiners Report | 8 |
| Statement of Financial Activities | 9 |
| Statement of Financial Position | 10 |
| Statement of Cash Flows | 11 |
| Notes to the Financial Statements | 12 |
City Church Newcastle
Year Ended 31 August 2024
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 James Keith Senior Chair Bethan Elliot Michelle Reed Rebecca Mason James Shepherd Joseph Williams Appointed 15 November 2023 Andrew Bramhall Appointed 15 November 2023 Philip Fothergill Resigned 14 January 2024 Janet Mary Smith Resigned 14 July 2024 Key Management Personnel The Board of Trustees and Eldership Team Senior Leadership Team/ Pastors James Shepherd Sarah Shepherd Andrew Bramhall Kate Howorth David Lyall Ros Bramhall 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
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City Church Newcastle
Year Ended 31 August 2024
Legal and Administrative Information
Independent Examiner
Nigel Wyatt BSC FCA Wyatt & Co Chartered Accountants 125 Main Street, Garforth Leeds, LS25 1AF
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City Church Newcastle
Year Ended 31 August 2024
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.
Staff salaries/remuneration is approved by a Pay Review Board (PRB) which consists of; a non-staff trustee, a non-staff Senior Leadership Team member, and a church member. Remuneration follows a formal salary structure we have developed, wherein people move up a scale depending on their role within the organisation and ongoing performance review. Recommendations are made to the PRB by the Senior Leadership Team. The PRB also consider any “across the board” pay rises due to the rate of inflation and other factors (e.g. we are a Real Living Wage employer).
The budget, including any changes to salaries/remuneration, 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 upon.
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.
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City Church Newcastle
Year Ended 31 August 2024
Trustees Annual Report
Risk Management
The directors have identified risks and taken steps to mitigate them:
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Risks to buildings and contents are insured.
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Public liability risks are insured.
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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.
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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.
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Our financial risk was assessed and our reserves policy was 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 assessment.
Objectives and Activities
The objectives of the Church community are:-
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The advancement of the Christian Faith.
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The relief of persons who are in conditions of need, hardship or distress or who are aged or sick.
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The provision of instruction in the Christian Faith at any educational establishment.
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?
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Grace: life-changing unconditional love
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Authenticity: discovering the truth of who we are
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Leadership: equipping everyone to flourish and thrive
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Courage: passionate enough to take bold steps
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City Church Newcastle
Year Ended 31 August 2024
Trustees Annual Report
Wider Church Network
City Church is part of a wider network of churches called Catalyst which in turn is part of the New Frontiers network. Whilst City Church is an independent charity, being part of Catalyst/New Frontiers provides additional helpful accountability and support.
Achievements
It is impossible to capture the vast array of things which have happened across the life of City Church between September 2023 and August 2024. But it was a year in which we focussed, and saw significant changes, across the following 4 categories:
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Growth
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Depth
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Serving the City and Beyond
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Wise Stewardship
We are profoundly thankful to God for the way he has led us through this season and for the patience, generosity and faith 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 39 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:
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Our Easter Kids Holiday Club.
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Taking nearly 50 young people away to Newday in the summer.
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Around 50 students attended our student weekend away.
We also ran two large Alpha Courses – courses designed for people who want to explore the Christian faith. The attendance across both courses was around 150 people.
Depth
We have continued to prioritize prayer – particularly through our morning Zoom prayer and our encounter nights.
We continued our Abide internship programme – which gathered around 20 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, although some people choose to commit additional time to serving the church through a gap year model. Some highlights of the year were some of the work in prisons and the mission trip to Albania.
Our sense of connection with our wider Catalyst family of churches has grown through leader's events and through many of our church family attending the Love: Nations conference and Catalyst Festival.
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City Church Newcastle
Year Ended 31 August 2024
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.
This year we also launched our CAP Debt Centre – serving those in financial need in our community. We have employed two part-time Debt Centre managers to lead this ministry.
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
We have invested significantly in our building undertaking a substantial project creating a new space for some of our City Kids ministries. 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.
2023-24 Objectives
More specifically, in 2023-24 we had some specific strategic objectives – over and above the continual growth and flourishing of our various ministries - that we wanted to accomplish in order to advance our charitable aims:
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Develop a Church Planting Strategy With An Eye To Planting in 2024-25
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We made some progress here in terms of starting to engage the church with this vision. We concluded that it was not time to plant a new work in 2024-25 and that we would more slowly with this objective going forward.
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Envisioning and Equipping the Church To Be Effective In Mission
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We made lots of progress here – finding various ways to engage the staff team and the whole church in thinking more missionally and invitationally.
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Developing Alpha as a Vehicle To Help Orientate The Whole Church Around Mission
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Good progress here. Alpha is happening more regularly (2-3 courses per year) and on a much larger scale than previously. It is proving to be an effective context for mission and growth.
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Multiply Morning Gatherings As Part Of Our Mission To See Thousands Gathered To Jesus
oCompleted objective. We launched a second Sunday morning gathering (we now have 0930 and 1130 services) in January 2024.
Plans for Future Periods
Our strategic objectives for 2024-25 are as follows:
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Strengthening Community Life and Belonging
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Developing a Church Multiplication Strategy and Taking Our First Steps
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Re-Defining our Vision and Values
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Advancing Key Building Projects: Heating System and Turbine Hall
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City Church Newcastle
Year Ended 31 August 2024
Trustees Annual Report
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.
Volunteers
The church benefits greatly from the voluntary contributions of church members. Whilst we have a staff team, the majority of the life and ministry of City Church is conducted through hundreds of volunteers for whom we are extremely grateful.
Financial Review
The church is currently in a good financial position; at the end of the financial year, the church held £50,550 in general unrestricted funds, £1,605,859 in designated funds (including our assets and reserves) and £100,793 in restricted funds.
Our principal funding sources are our generous donations from our church members, rental income from other charities sharing our building and grant funding for projects. Our regular giving this year was £549,551 compared with £570,627 in 2023-24, and we continue to be very thankful for the financial commitment of Church members.
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 2 months of running costs/expenditure costs as free reserves. At 31[st] August 2024, including “reserves” in our general fund, we held free reserves of £150,550 – representing at least 2.5 months of running costs. (This does not include money held in designated funds such as our “Big Ticket Building Fund”).
Going Concern
The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.
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City Church Newcastle
Year Ended 31 August 2024
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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent; and
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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 on 12 January 2025 and signed on their behalf by:
J P Shepherd Director
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City Church Newcastle
Year Ended 31 August 2024
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 2024.
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:
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Accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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The financial statements do not accord with those records; or
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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.
Nigel Wyatt BSC FCA Independent Examiner 125 Main Street Garforth Leeds LS25 1AF
Date: 01/05/2025
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City Church Newcastle
Year Ended 31 August 2024
Statement of Financial Activities
| Statement of Financial Activities | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| Unrestricted | Restricted | Total | Total | ||
| Funds | Funds | Funds | Funds | ||
| Note | £ | £ | £ | £ | |
| Income | |||||
| Donations and legacies | 607,764 | 82,572 | 690,336 | 766,596 | |
| Charitable activities | 34,866 | - | 34,866 | 24,126 | |
| Other trading activities | 73,914 | - | 73,914 | 70,406 | |
| Investment income | 4,279 | - | 4,279 | 1,008 | |
| Other income | 550 | - | 550 | 30 | |
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| Total Income | 2 | 721,373 | 82,572 | 803,945 | 862,166 |
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| Expenditure | |||||
| Expenditure on charitable activities | 3 | 607,278 | 83,291 | 690,569 | 749,833 |
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| Total Expenditure | 607,278 | 83,291 | 690,569 | 749,833 | |
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| Net Income / (Expenditure) | 114,095 | (719) | 113,376 | 112,333 | |
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| Net Income and Net Movement in Funds | |||||
| Total funds brought forward | 13 | 1,493,340 | 150,486 | 1,643,826 | 1,531,493 |
| Transfers | 48,974 | (48,974) | - | - | |
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| Total Funds Carried Forward | 1,656,409 | 100,793 | 1,757,202 | 1,643,826 | |
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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 the Companies Act and the Charity SORP reporting requirements.
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City Church Newcastle
Year Ended 31 August 2024
Statement of Financial Position
| Statement of Financial Position | |||
|---|---|---|---|
| 2024 | 2023 | ||
| Note | £ | £ | |
| Fixed Assets | |||
| Tangible fixed assets | 8 | 1,777,801 | 1,682,448 |
| Long term loan debtor | 9 | 75,000 | 90,000 |
| Current Assets | |||
| Debtors | 10 | 49,109 | 64,684 |
| Cash at bank and in hand | 397,176 | 384,517 | |
| ────────── | ────────── | ||
| 446,285 | 449,201 | ||
| Creditors: amounts falling due within one year | 11 | 75,848 | 73,644 |
| ────────── | ────────── | ||
| Net Current Assets | 370,437 | 375,557 | |
| Creditors: amounts falling due after one year | 12 | 466,036 | 504,180 |
| ────────── | ────────── | ||
| Net Assets | 14 | 1,757,202 | 1,643,826 |
| ────────── | ────────── | ||
| Funds of the Charity | |||
| Restricted funds | 13 | 100,793 | 150,486 |
| Unrestricted funds | 13 | ||
| Unrestricted general | 50,550 | 21,331 | |
| Designated funds | 1,605,859 | 1,472,009 | |
| ────────── | ────────── | ||
| 1,656,409 | 1,493,340 | ||
| ────────── | ────────── | ||
| Total Charity Funds | 1,757,202 | 1,643,826 | |
| ────────── | ────────── |
Directors Responsibilities
The Directors are satisfied that for the year ended on 31st August 2024 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).
Name of Trustee:
Signed on Behalf of the Trustees:
Date of Approval:
James Shepherd
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Registered Company No. 06972512
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City Church Newcastle
Year Ended 31 August 2024
Statement of Cash Flows
| Statement of Cash Flows | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Cash Flows From Operating Activities | ||
| Net cash provided by (used in) operating activities | 172,727 | 99,203 |
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| 172,727 | 99,203 | |
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| Cash Flows From Investing Activities | ||
| Interest | 4,279 | 1,008 |
| Purchase of tangible fixed assets | (112,237) | (20,176) |
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| Net cash provided by (used in) investing activities | (107,958) | (19,168) |
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| Cash Flows From Financing Activities | ||
| Repayments on borrowing | (52,110) | (23,308) |
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| Net cash provided by (used in) financing activities | (52,110) | (23,308) |
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| Change in cash and cash equivalents in the reporting period | 12,659 | 56,727 |
| Cash and cash equivalents at the beginning of the reporting period | 384,517 | 327,790 |
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| Cash and Cash Equivalents at the End of the Reporting Period | 397,176 | 384,517 |
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| Reconciliation of Net Movement in Funds to Net Cash Flow From | Operating Activities | |
| 2024 | 2023 | |
| £ | £ | |
| Net movement in funds for the reporting period (as per the statement of financial activities) |
113,376 | 112,333 |
| Adjustments for: | ||
| Interest received | (4,279) | (1,008) |
| Depreciation of tangible fixed assets | 16,885 | 15,641 |
| (Increase)/Decrease in debtors | 30,575 | (24,305) |
| Increase/(Decrease) in creditors | 16,170 | (3,458) |
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| Net cash provided by (used in) operating activities | 172,727 | 99,203 |
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| Analysis of Cash and Cash Equivalents | ||
| 2024 | 2023 | |
| £ | £ | |
| Cash at bank | 397,176 | 384,517 |
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| Total cash and cash equivalents | 397,176 | 384,517 |
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City Church Newcastle
Year Ended 31 August 2024
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) (effective 1 January 2019), the Charities Act 2011, and the Companies Act 2006.
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 known 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
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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 the 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 2024
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 a straight line basis |
| Office and computer equipment | 3 years on a 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 2024
Notes to the Financial Statements
| **2 ** | Analysis of Income | |||
|---|---|---|---|---|
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2024 | ||
| £ | £ | £ | ||
| Donations and Legacies | ||||
| Donations | 508,392 | 41,159 | 549,551 | |
| Gift aid | 92,366 | 2,413 | 94,779 | |
| Grants | 7,006 | 39,000 | 46,006 | |
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| 607,764 | 82,572 | 690,336 | ||
| Charitable Activities | ||||
| Church activities | 32,260 | - | 32,260 | |
| Serving others | - | - | - | |
| Reimbursements | 2,606 | - | 2,606 | |
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| 34,866 | - | 34,866 | ||
| Other Trading Activities | ||||
| Rental income | 73,914 | - | 73,914 | |
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| 73,914 | - | 73,914 | ||
| Investment Income | ||||
| Bank interest | 4,279 | - | 4,279 | |
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| 4,279 | - | 4,279 | ||
| Other | ||||
| Other income | 550 | - | 550 | |
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| 550 | - | 550 | ||
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| Total Income | 721,373 | 82,572 | 803,945 | |
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City Church Newcastle
Year Ended 31 August 2024
Notes to the Financial Statements
2 Analysis of Income (Continued)
| Analysis of Income(Continued) | |||
|---|---|---|---|
| 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 |
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| 565,167 | 201,429 | 766,596 | |
| Charitable Activities | |||
| Church activities | 21,176 | - | 21,176 |
| Serving others | - | - | - |
| Reimbursements | 2,950 | - | 2,950 |
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| 24,126 | - | 24,126 | |
| Other Trading Activities | |||
| Rental income | 70,406 | - | 70,406 |
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| 70,406 | - | 70,406 | |
| Investment Income | |||
| Bank interest | 1,008 | - | 1,008 |
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| 1,008 | - | 1,008 | |
| Other | |||
| Other income | 30 | - | - |
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|
| 30 | - | - | |
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|
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|
| Total Income | 660,737 | 201,429 | 862,136 |
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16
City Church Newcastle
Year Ended 31 August 2024
Notes to the Financial Statements
3 Expenditure on Charitable Activities By Fund Type
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2024 | |
| £ | £ | £ | |
| Activity and event costs | 63,651 | 18,580 | 82,231 |
| Administration costs | 8,750 | 1,175 | 9,925 |
| Bank charges | 3,190 | - | 3,190 |
| Depreciation | 16,953 | - | 16,953 |
| External giving | 31,126 | 18,807 | 49,933 |
| Governance | 2,383 | - | 2,383 |
| Interest | 31,357 | - | 31,357 |
| IT, equipment and technology costs | 17,889 | 1,968 | 19,857 |
| Ministry costs | 42,028 | 1,352 | 43,380 |
| Premises costs | 102,892 | 5,806 | 108,698 |
| Staff expenses | 10,086 | 839 | 10,925 |
| Staff salaries | 274,909 | 34,764 | 309,673 |
| Volunteer expenses | 2,064 | - | 2,064 |
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|
| 607,278 | 83,291 | 690,569 | |
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|
| 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 |
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|
| 677,586 | 72,247 | 749,833 | |
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17
City Church Newcastle
Year Ended 31 August 2024
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 detaito about volunteer contributions to the organisation.
5 Independent Examination Fees
Fees payable to the independent examiner for:
| Independent Examination Fees Fees payable to the independent examiner for: |
||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Independent examination and preparation of the financial statements |
2,214 | 2,109 |
6 Staff Costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 254,729 | 253,754 |
| Social security costs | 14,828 | 12,174 |
| Employer contributions to pension plans | 21,871 | 19,305 |
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|
| 291,427 | 285,233 | |
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The average headcount of employees during the year was as follows:
| 2024 | 2023 | |
|---|---|---|
| Average Headcount | 16 | 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 Senior Leadership Team. The total employee benefits received by the key management personnel (including employer national insurance and pension contributions) was £120,742 (2023: £96,365).
18
City Church Newcastle
Year Ended 31 August 2024
Notes to the Financial Statements
7 Trustee Remuneration, Expenses and Donations
During the year two trustees (who are also members of the Eldership Team) received remuneration. The remuneration paid during the year is for the employee's 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:
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| James Shepherd | 46,212 | 44,747 |
| Andrew Bramhall | 49,569 | 51,621 |
During the year four trustees incurred out-of-pocket expenses totalling £5,118 which were all incurred for the day-to-day running of the charity's activities. (2023: 3,796)
During the year the total aggregated donations made to the charity by the trustees was £38,008. There were no conditions attached to the donations. (2023: 61,220)
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 2023 | 1,627,252 | 96,456 | 14,096 | 231,196 | 1,969,000 |
| Additions | 106,133 | 2,554 | 2,147 | 1,403 | 112,237 |
| Disposals | - | - | (550) | - | (550) |
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|
| At 31st August 2024 | 1,733,385 | 99,010 | 15,693 | 232,599 | 2,080,687 |
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|
| Depreciation | |||||
| At 1st September 2023 | - | 75,544 | 13,578 | 197,429 | 286,551 |
| Depreciation Charge | - | 7,944 | 974 | 7,967 | 16,885 |
| Disposals | - | - | (550) | - | (550) |
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|
| At 31st August 2024 | - | 83,488 | 14,002 | 205,396 | 302,886 |
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|
| Net Book Value | |||||
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|
| At 31st August 2024 | 1,733,385 | 15,522 | 1,691 | 27,203 | 1,777,801 |
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|
| At 31st September 2023 | 1,627,252 | 20,912 | 518 | 33,767 | 1,682,448 |
19
City Church Newcastle
Year Ended 31 August 2024
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.
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| 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 | |
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||
| 75,000 | 90,000 | ||
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||
| **10 ** | Debtors | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Accounts receivable | 25,000 | 41,949 | |
| Gift Aid recoverable | 8,088 | 7,726 | |
| Prepayments | 1,021 | 9 | |
| Loan | 15,000 | 15,000 | |
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||
| 49,109 | 64,684 | ||
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||
| **11 ** | Creditors: amounts falling due within one year | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Members loans | 15,000 | 30,000 | |
| Bank loan (secured) | 35,549 | 34,515 | |
| Trade creditors | 12,222 | 5,898 | |
| Accruals | 8,138 | 852 | |
| Deferred income | - | 970 | |
| Credit card | 4,939 | 1,409 | |
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||
| 75,848 | 73,644 | ||
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20
City Church Newcastle
Year Ended 31 August 2024
Notes to the Financial Statements
12 Creditors: amounts falling due after one year
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Members loans | 75,000 | 90,000 |
| Bank loan (secured) | 391,036 | 414,180 |
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|
| 466,036 | 504,180 | |
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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 2024 is analysed as follows:
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Within one year | 35,549 | 34,515 |
| Between one and two years | 71,097 | 69,030 |
| Between three and five years | 106,647 | 103,545 |
| After more than five years | 213,292 | 241,605 |
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|
| 426,585 | 448,695 | |
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21
City Church Newcastle
Year Ended 31 August 2024
Notes to the Financial Statements
13 Analysis of Charitable Funds
| Unrestricted Funds | |||||
|---|---|---|---|---|---|
| 1 Sept 23 | Income | Expenditure | Transfers | 31 Aug 2024 | |
| £ | £ | £ | £ | £ | |
| Unrestricted | |||||
| General | 20,000 | 679,071 | (478,444) | (172,326) | 48,301 |
| Events & chargeables | 1,331 | 35,296 | (41,850) | 7,472 | 2,249 |
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|
| 21,331 | 714,367 | (520,294) | (164,854) | 50,550 | |
| Designated | |||||
| Big ticket building | 147,846 | 7,006 | 4,693 | (36,816) | 122,729 |
| Builidng, assets & mortgage |
1,218,754 | - | (48,310) | 180,908 | 1,351,352 |
| International leadership development fund |
7,500 | - | - | (7,500) | - |
| Mission, social action & partnerships |
19,909 | - | (43,367) | 55,236 | 31,778 |
| Working capital | 78,000 | - | - | 22,000 | 100,000 |
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|
| 1,472,009 | 7,006 | (86,984) | 213,828 | 1,605,859 | |
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|
| Total Unrestricted | 1,493,340 | 721,373 | (607,278) | 48,974 | 1,656,409 |
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|
| Restricted Funds | |||||
| CAP debt centre | - | 2,000 | (16) | - | 1,984 |
| Catalyst offering 2024 | - | 2,787 | (2,672) | - | 115 |
| Catering training project |
- | 9,500 | (6,539) | - | 2,961 |
| Christmas appeal 2023 | - | 5,424 | (5,424) | - | - |
| Gifts | 340 | 12,043 | (12,043) | (340) | - |
| Gift day 2022 | 112,010 | - | (10,006) | (68,634) | 33,370 |
| Minibus | - | 15,000 | - | - | 15,000 |
| Mission, social action & partnerships: CRW |
37,136 | 29,068 | (43,428) | 20,000 | 42,776 |
| Pantry food project | - | 1,500 | (195) | - | 1,305 |
| Punjab trip restricted gift | 1,000 | - | (1,000) | - | - |
| Tech equipment gift 2023 | - | 5,250 | (1,968) | - | 3,282 |
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|
| Total Restricted | 150,486 | 82,572 | (83,291) | (48,974) | 100,793 |
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|
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────────── |
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────────── |
|
| Total Funds | 1,643,826 | 803,945 | (690,569) | - | 1,757,202 |
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22
City Church Newcastle
Year Ended 31 August 2024
Notes to the Financial Statements
Analysis of Charitable Funds cont.
| Unrestricted Funds | |||||
|---|---|---|---|---|---|
| 1 Sept 22 | Income | Expenditure | Transfers | 31 Aug 2023 | |
| £ | £ | £ | £ | £ | |
| Unrestricted | |||||
| General | 19076 | 602390 | (419,734) | (181,732) | 20,000 |
| Events & chargeables | - | 26,672 | (24,356) | (985) | 1,331 |
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|
| 19,076 | 629,062 | (444,090) | (182,717) | 21,331 | |
| Designated | |||||
| Big ticket building | 121,394 | 31,675 | (178,778) | 173,555 | 147,846 |
| Building, assets & mortgage |
1,205,911 | - | (25,914) | 38,757 | 1,218,754 |
| Building development fund |
87,751 | - | - | (87,751) | - |
| International leadership | |||||
| development fund | - | - | - | 7,500 | 7,500 |
| Mission, social action | |||||
| & partnerships | 18,097 | - | (28,804) | 30,616 | 19,909 |
| Working capital | 78,000 | - | - | - | 78,000 |
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|
| 1,511,153 | 31,675 | (233,496) | 162,677 | 1,472,009 | |
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|
| Total Unrestricted | 1,530,229 | 660,737 | (677,586) | (20,040) | 1,493,340 |
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|
| Restricted Funds | |||||
| Alpha food gift | 197 | - | (197) | - | - |
| Gift day 2022 | - | 133,094 | (21,084) | - | 112,010 |
| Gifts | 722 | 10,469 | (10,851) | - | 340 |
| Mission, social action & partnerships: CRW |
- | 56,866 | (39,770) | 20,040 | 37,136 |
| Punjab trip restricted gift |
- | 1,000 | - | - | 1,000 |
| Welcome boxes | 345 | - | (345) | - | - |
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|
| Total Restricted | 1,264 | 201,429 | (72,247) | 20,040 | 150,486 |
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|
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────────── |
────────── |
|
| Total Funds | 1,531,493 | 862,166 | (749,833) | - | 1,643,826 |
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23
City Church Newcastle
Year Ended 31 August 2024
Notes to the Financial Statements
Fund Transfers
Big ticket building
Building, assets & mortgage Gift day 2022
International leadership development fund Mission, social action & partnerships Working capital
Transfer of fixed assets purchased by the designated fund but held in the assets fund for depreciation
Transfer for the fund balance to match the closing fixed asset balance less secured mortgage.
Transfer of fixed assets purchased by the restricted fund but held in the assets fund for depreciation
Redesignated funds to the Mission, social action & partnership fund
Transfer to increase the designated fund.
Transfer to increase the designated fund.
Fund Descriptions Designated Funds Big ticket building
Building, assets & mortgage Building development fund International leadership development fund
Mission, social action & partnerships Working capital
Fund set aside for replacing and renewing significant and large building items.
Fund balance to match the closing fixed asset balance less secured mortgage.
Fund set aside for overall building development work.
Money set aside to enable individuals from overseas to come to the UK to serve the church and to study.
Unrestricted grant funding designated for a City Refugee Welcome Co-ordinator.
Fund established to ringfence the organisations essential reserves balance in line with the updated reserves policy.
Restricted Funds
CAP debt centre
Catalyst offering 2024 Catering training project
Christmas appeal 2023
Gifts Gift day 2022
Grant received from the Cinamon Trust towards the running of our CAP debt centre.
Donations towards the catalyst network of churches. Funding received to run a catering project for asylum seekers and refugees.
Special offering to support two of our mission partners (food pantry and supporting churches in SE Asia).
Restricted one-off offerings where money is passed on. Special offering for church building works and establishing a CAP centre.
Minibus
Mission, social action & partnerships: CRW
Grant received for the purchase of a church minibus. Grants Funding for a City Refugee Welcome Co-ordinator.
24
City Church Newcastle
Year Ended 31 August 2024
Notes to the Financial Statements
Fund Descriptions, Restricted Funds cont.
Pantry food project Punjab trip restricted gift Tech equipment gift 2023
Restricted donations to go towards the running of our food pantry. Restricted Gift to be used towards an overseas trip.
Donation received from church members with the restriction that it is spent on church tech equipment.
14 Analysis of Net Assets Between Funds
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2024 | |
| £ | £ | £ | |
| Fixed assets | 1,852,801 | - | 1,852,801 |
| Current assets | 345,492 | 100,793 | 446,285 |
| Creditors less than 1 year | (75,848) | - | (75,848) |
| Creditors after one 1 year | (466,036) | - | (466,036) |
────────── |
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|
| 1,656,409 | 100,793 | 1,757,202 | |
────────── |
────────── |
────────── |
|
| 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) |
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|
| 1,493,340 | 150,486 | 1,643,826 | |
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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
Sarah Shepherd is a related party due to being an employee of the charity and a close family member to a trustee James Shepherd. The total remuneration received during the year including employer national insurance contribution and employer pension contribution was £15,996 (2023: nil).
25