## **CENTRAL HARVEST CHURCH**
**Charity Number: 1135769 Company Number: 05554856**
**Annual Report and Financial Statements for the Year Ended 31 October 2021**
## **Annual Report and Accounts**
## **Contents**
**Trustees’ Annual Report (including Director’s Report) for the Year Ended 31 October 2021............ 1 Income and Expenditure Account for the period ending 31 October 2021 ...................................... 4 Balance Sheet as at 31 October 2021 ............................................................................................ 5 Notes to the Accounts .................................................................................................................. 6**
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**Trustees’ Annual Report (including Director’s Report) for the Year Ended 31 October 2021** The trustees present their report and financial statements for the year ended 31 October 2021
## **Reference and Administrative Details**
Charity Name: Central Harvest Church Other Name the Charity Uses: CHC Charity Registration Number: 1135769 Company Registration Number: 05554856 Registered Office Address 20 St. Edwards Way Romford RM1 4DD, England
## **Trustees**
The following are the trustees during the year under review.
Miss Regina Quarcoo (Chair) Emmanuel Ettoh Rev Anthony Bright Atwam (minister in charge)
Enyonam Atwam Cecilia Fletcher Sharon Smith Sydney Smith
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## **Objectives and Activities**
## **Our Aim**
The aim of Central Harvest church (CHC) can be summarised as follows:
To advance the Christian faith for the benefit of the public, through organising Christian worship and prayer meetings, conferences and seminars, the public celebration of religious festivals, the provision of counselling and pastoral care and through missionary and evangelistic outreach.
## **Objectives and how our activities deliver public benefit**
Our objectives and activities are set to reflect the aim of the church. These are reviewed each year. In carrying out this review the charity has considered the Charity Commission’s guidance on public benefit, particularly, the specific guidance on charities for the advancement of religion.
In pursuance of its charitable aims, Central Harvest Church carries out a wide range of activities which the trustees deem beneficial to both members of the church and the community.
**Christian worship and prayer meetings:** three days in a week we organise worship and prayer meetings to contribute to the spiritual well-being of people. These meetings are accessible to the members and those who wish to know more about the Christian faith.
At these meetings people learn about the Gospel and develop their relationship and trust in God, and we actively encourage people to practise their faith in a socially responsible way within the wider community. We also offer prayers for individuals, the wider community and contribute to the spiritual and moral education of children through our Sunday School.
**Young Adult ministry:** this ministry champions the cause for young adults on matters such as finance, marriage, social responsibility, and reverence for authority. Conferences and seminars are organised regularly to build the self-confidence of young Christians in their faith, promote their mental and social well-being and actively encourage them to live peaceably within the wider community.
**Conducting religious ceremonies:** the church conducts water baptisms, marriage and naming ceremonies for both members and the public.
**Counselling and pastoral care through our “Jesus helpline project”** : we offer counselling, emotional and financial support to members and those who seek refuge and help from the church. These services include marriage counselling, emotional and financial aid to the bereaved as well as interest-free loans to members struggling financially.
**Missionary and outreach work:** evangelism is central to our missionary and outreach work. This takes the form of street and door-to-door communications, production and distribution of religious books and tracts to the public, as well as radio and video broadcasts of sermons and religious programmes.
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## **Brief Financial Review**
The charity’s main sources of funds are receipts from voluntary giving – regular donations, offering and tithes from church members. These are usually boosted by credits from HMRC. Total receipts for the period were £145,671 compared to £134,675 for the previous period. No special fund-raising activities were carried out, and in spite of the negative impact of COVID-19 on the church’s activities, total receipts remained stable.
The church’s financial position remained strong throughout the period. This afforded us the opportunity to executive and fulfil several of our objectives; Our newly acquired church building was restored to excellent condition, thereby providing a stable and a much-needed venue for worship and prayer meetings, conferences, seminars and other charitable activities. £16,225 was spent to repurpose sections of the church building in hopes of generating rental income in the future to bolster the church’s finances.
We successfully recovered £17,600 from borrowers and at the same time issued several interest-free repayable financial help totalling £37,137 to support the vulnerable, and people in dire need of financial support. We equally spent £2,238 to support missionary work. Overall, the stable financial performance allowed us to deliver on our objectives and remain relevant with regards to public benefit.
## **Plans for the future**
The challenges posed by the lockdown restrictions due to C0VID-19 has highlighted the need for church to strengthen its online presence, plant more branches and be more involved actively in community engagements. Hence, for periods ahead, we intend to be more active on social media platforms, continue training more pastors and ministers to meet the growing need for spiritual and moral leadership and as well, help reduce the crime rate among the young adults within the community.
## **Signed on behalf of the board**
Rev Anthony Bright Atwam (Minister in Charge)
## **Date: 18[th] April, 2022**
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|**Income and Expenditure Account for the period ending 31 October**
**Notes**
**2021**
**£**
**Income**
Donations, Tithes & Offerings
145,671
Interest from savings
-
**Total Gross Income**
**145,671**
**Less Expenditure**
Printing and Stationery
2,143
Rent
2,425
Employee Costs
2
60,138
Utility Bills
3,058
Travelling Expenses
-
Welfare
655
Webhosting & IT
354
Miscellaneous
8,739
Building Insurance
1,117
Mortgage Expense
18,247
Maintenance & Repairs
2,885
Depreciation
1,777
Missions
2,238
**Total Expenditure**
**103,776**
**Net Income for the period**
**41,895**|**2021**
**2020**
**£**
133,888
787|
|---|---|
||**134,675**|
||1,473
2,150
58,790
520
161
4,581
368
350
106
33,131
4,290
435|
||**106,354**|
|||
||**28,321**|
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|**Balance Sheet as at 31 October 2021**
**Notes**
**Fixed Assets**
Tangible Assets
3
**Total Fixed Assets**
**Current Assets**
Receivables: financial support repayable
4
Prepayments: Insurance
Cash in Hand and at Bank
5
**Total Current Assets**
**Short Term Liabilities**
Mortgage Loan falling due within one year
Employee Costs Outstanding
**Net Current Assets (Liabilities)**
**Total Assets less Current Liabilities**
**Long Term Liabilities**
Mortgage Loan Payable
Coronavirus Business Support Loan
**Net Assets**
**Funds of the Charity**
Funds and Reserves brought forward
Income Surplus for the period
**Total Charity Funds**|**2021**
**£**
932,271
**932,271**
19,537
1,790
45,168
**66,494**
17,246
2,076
**47,172**
**979,444**
575,500
40,000
**363,944**
322,050
41,894
**363,944**|**2020**
**£**
916,093|
|---|---|---|
|||**916,093**|
|||13,337
1,619|
|||**14,957**|
|||16,254|
|||**(1,297)**|
||||
|||**914,796**|
|||592,746|
|||**322,050**|
|||293,729
28,321|
|||**322,050**|
- For the year ending 31 October 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies
- The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts
- These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and Charities SORP (FRS102)
## **SIGNED ON BEHALF OF THE BOARD**
Rev Anthony Bright Atwam **Date: 26[th] 18[th] April 2022**
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## **Notes to the Accounts**
## **1. Accounting Policies**
## **a. Basis of preparation**
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts **.**
The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued October 2019 and the Charities Act 2011
## **b. Going Concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue operating for the foreseeable future. The accounts are thus, prepared on a going concern basis.
## **c. Presentation currency**
The accounts are presented in £ Sterling.
## **d. Change of accounting policy**
The accounts present a true and fair view and the principal accounting policies have remained unchanged and been applied consistently throughout the year and in the preceding year.
## **e. Recognition of income & donations**
Income is recognised when the charity becomes entitled to it, the trustees are virtually certain they will receive it and the monetary value can be measured with sufficient reliability. Donations are only included and recognised when the charity has unconditional entitlement to it.
## **f. Deferred income**
No material item of deferred income has been included in the accounts.
## **g. Offsetting**
There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP.
## **h. Tax reclaims on donations and gifts**
Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.
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## **i. Corporation Tax**
The charity is exempt from tax on income and gains within sections 466 to 493 of the Corporation Tax Act 2010 (CTA 2010), sections 532 and 534 of the Income Tax Act 2007 (ITA 2007) to the extent that these are applied to its charitable purposes.
## **j. Expenditure and Liabilities**
Expenditure is recognised on an accrual basis as liability is incurred. Liabilities are recognised as soon as there is legal or constructive obligation committing the charity to pay out the resources, and the amount of the obligation can be measured with reasonable certainty.
## **k. Tangible Fixed Assets & Depreciation**
Tangible fixed assets are valued at historic costs and capitalised if they cost over £100 (including any incidental expenses of acquisition) and can be used for more than one year. They are stated at cost less accumulated depreciation.
Depreciation is recognised in order to write off the cost or valuation of assets less their residual values over their useful lives on the following basis;
|**Asset category**|**Estimated useful life**|**Depreciation**|
|---|---|---|
|Electronic devices|5|20% straight line|
|Furniture, Fixtures & Fittings|5|20% straight line|
|Sundry Equipment|3|33.3% straight line|
## **l. Pension**
Since the introduction of the "Auto -Enrolment" pension scheme by the government, the charity has joined a government recommended pension company, Nest. The contribution rate for the employer is 3% and employee contribution rate is 5% as recommended by the new pension regime.
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## **2. Employee costs**
|Salary and wages
Pension Costs (Defined Contribution Scheme)
**Total Staff Costs**|**2021**
**£**
**2020**
**£**
59,255
57,980
883
810
**60,138**
**58,790**|
|---|---|
**Trustees’ remuneration and benefits** : Employee costs for the period include £20,412.84 paid to Rev Anthony Bright Atwam on a separate appointment for his role as the Minister overseeing all church activities, programmes, and training of other pastors. The trustee has agreed by contract of employment that it is in its best interest to pay for his service as the missionary head, overseer, and trainer. He is the Bishop for APC North East London, and has the qualifications and competence required to serve the church in that capacity. In this sense, Rev Anthony Bright Atwam is both a trustee and a paid employee for the role as the missionary head, overseer, and trainer. However, he volunteers his service and receives no pay for his role as a trustee. All other trustees volunteer their services and receive no pay.
The charity made no redundancy payments during the reporting period.
No employee received employee benefits (excluding employer pension costs) for the period of more than £60,000.
||**2021**|**2020**|
|---|---|---|
|Average employee headcount|3|3|
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## **3. Tangible Fixed Assets**
|Cost
As at 31 Oct 2020
Additions
As at 31 Oct 2021
**Depreciation**
As at 31 Oct 2020
Charge for the year
As at 31 Oct 2021
**Net Book Value**
As at 31 Oct 2020
As at 31 Oct 2021|**Electronic**
**Devices**
**£**
1,305
450
1,755
254
366
620
1,051
1,135|**Sundry**
**Equipment**
**£**
1,484
-
1,484
292
495
787
1,192
697|**Furniture,**
**Fixtures &**
**Fittings**
**£**
3,642
1280
4,922
61
916
977
3,581
3,944|**Freehold**
**Property**
**£**
910,270
16,225
926,495
-
-
-
910,270
926,495|**Total**
**£**
916,701
17,955|
|---|---|---|---|---|---|
||||||934,656|
||||||608
1,777|
||||||2,385|
||||||916,093|
||||||932,271|
The freehold property comprises the church building located at 20 St. Edwards Way, Romford, RM1 4DD acquired in August 2020. It is valued at historic cost, plus refurbishment and other incidental costs. No depreciation was charged for the period under review.
|**Freehold Property**
Cost
Amounts Capitalised:
Baptismal Pool built and Refurbishment cost
Legal Fees
As at 31 Oct 2020
Capitalised for the period:
Work on flat
As at 31 Oct 2021|**£**
901,086
6,613
2,571|
|---|---|
||910,270|
||16,225|
||926,495|
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## **4. Receivables**
The amount represents interest-free sums given to people experiencing financial difficulties. The charity expects to recover this amount in full without any interest. As explained in the Trustees’ Annual Report (under objectives and how our activities deliver public benefit), the church offers financial aid to the bereaved and members who are in financial difficulties and who, in most cases, find it hard to access loans from traditional banks and other similar institutions. Those who are able, pay back the money to the church without any interest. This is one of the ways we help to ease the financial struggles of our members, build stable homes, combat homelessness and suicidal inclinations of those struggling financially.
## **5. Cash in Hand and at Bank**
|**5. Cash in Hand and at Bank**|||
|---|---|---|
|Barclays Savings Account
Barclays Current Account
Total|32,931
12,237
45,168|487
1,132|
|||1,619|
## **6. Fees for examination of accounts**
Independent examiner’s fees is nil.
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## **TAX EXEMPTION CLAIM**
**Central Harvest Church would like to claim for tax exemption for financial support repayable given to people in dire need. As at 31st October 2021, financial support repayable was £19,537. The sum was given in line with the charities aims and purposes.**
**According to the Memorandum of Association, under objects 4: the church offers non-interest based financial help to people in need. Those who are able, pay back the money without any interest. This is one of the ways we deliver public benefit. This is not for the avoidance of tax.**
**Central Harvest Church would therefore like to make a tax exemption claim in line with Sections 511 and 514 Corporation Tax Act (CTA) 2010 and sections 558 and 561 Income Tax Act (ITA) 2007.**
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