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2021-12-31-accounts

REDEEMED CHRISTIAN CHURCH OF GOD Covenant Restoration Assembly Nottingham

TRUSTEE’S REPORT AND ANNUAL ACCOUNTS FOR THE YEAR ENDED 31ST DECEMBER 2021

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Contents

CORPORATE INFORMATION .............................................................................................................................. 3 TRUSTEES ANNUAL REPORT .............................................................................................................................. 4 1.0 Introduction ............................................................................................................................................ 4 2.0 Structure, Governance and Management .............................................................................................. 4 2.1 Governing Document .......................................................................................................................... 4 2.2 Trustee Appointments ........................................................................................................................ 4 2.3 Organisational Structure ..................................................................................................................... 4 2.4 Related Party Relationship .................................................................................................................. 4 2.5 Risk Management ................................................................................................................................ 4 3.0 Objectives and Activities ......................................................................................................................... 5 3.1 Objectives ............................................................................................................................................ 5 3.2 Activities .............................................................................................................................................. 5 4.0 Achievement and Performance .............................................................................................................. 7 4.1 Public Benefit Statement .................................................................................................................... 7 4.2 Grant Making Policies .......................................................................................................................... 9 4.3 Contributions Made by Volunteers ..................................................................................................... 9 4.4 Future Development ........................................................................................................................... 9 5.0 Financial Review .................................................................................................................................... 10 5.1 Principal Funding Sources ................................................................................................................. 10 5.2 Reserves Policy .................................................................................................................................. 10 5.3 Scope and Basis of the Financial Statements .................................................................................... 11 5.4 Statement of Financial Activities ....................................................................................................... 12 5.5 Statement Of Financial Position ........................................................................................................ 13 5.6 Notes to Financial Statements .......................................................................................................... 14 Independent Examiner’s Report ................................................................................................................ 18

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CORPORATE INFORMATION

Charity Registered Number: 1136253

Board of Trustees

Pastor Taiwo Enoch Olugbenga – Chairman Pastor Chukwuka John – Secretary Pastor Adebowale Babatunde Adesina Pastor Sunday Afolabi Dr Presidor Kendabie

Pastor-In-Charge

Pastor Vincent T. T. Ibikunle

Registered Office

75 Raleigh Street Nottingham. NG7 4DL

Bankers:

HSBC Bank Plc Unity Trust Bank Plc Kingdom Bank

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TRUSTEES ANNUAL REPORT

1.0 Introduction

The Board of Trustees of RCCG Covenant Restoration Assembly, Nottingham presents their annual report and accounts for the year ended 31st December 2021.

2.0 Structure, Governance and Management

2.1 Governing Document

The charity is constituted as a “Trust” and governed by ‘Trust Deed’ dated 31[st ] December 2009.

2.2 Trustee Appointments

Trustees are appointed under the terms of the trust deed.

New Trustees are given induction on appointment, explaining the overview objectives of the charity and the requirements of the Charity Commission.

2.3 Organisational Structure

The spiritual aspect of the church is handled by the Parish Pastor including the day to day running of the charity which is overseen by the Trustees and Board of Ministers, who meet regularly to review the operations of the church and make decisions on major issues affecting the church.

The church’s key activities and operations are centred on the various constituent cellular groups: Men, Women, Elders, Youth and Singles, Teenagers and Children for effective organisation. The cellular structure is effective at ensuring that the expectations and needs of every group are adequately met.

2.4 Related Party Relationship

RCCG, Covenant Restoration Assembly Nottingham, is a member of the Redeemed Christian Church of God (RCCG), a global church with parishes in over 190 countries. The relationship is governed by an “Agreement for Common Purposes” between the parish and RCCG. The referenced “Agreement for Common Purposes” document is constantly monitored and recommended for updates, to take cognisance of unfolding events (policies, regulations) in the United Kingdom.

2.5 Risk Management

The trustee board performs its duty of safeguarding the charity against major risk. The board regularly reviews the charity’s governance structures, policies, procedures, and practices. It recommends strategic and operational options and implements adequate prudent controls and preventative action to safeguard the assets of the charity, as well as its reputation.

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3.0 Objectives and Activities

3.1 Objectives

RCCG Covenant Restoration Assembly Nottingham’s main objectives are:

In furtherance of the above objectives, the activities of the charity are classified under the following themes:

3.2 Activities

The year 2021 was declared as ‘THE YEAR OF UNPRECEDENTED MULTIPLICATION’ Genesis 1:27–28; 2Corinthians 9:10; Acts 6:1

The church engages in regular activities as detailed below in pursuance of our charitable objectives. Some of these programs were held online/virtually and still ongoing.

Regular Church Activities

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Special Programmes Held Within the Year

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4.0 Achievement and Performance

The year 2021 was a year of recovery from the global pandemic that hit the world. The church saw increased members return physically to worship in church and our activities resumed in full swing.

The church also experienced a wave of new members to its congregation

4.1 Public Benefit Statement

The charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the charity has achieved these are provided in this report. The trustees confirm that they have paid due regard to the Charity Commission’s guidance on public benefit before deciding what activities the charity should undertake.

The community was still reeling from the effects of Covid-19 Pandemic which brought about various challenges for the community…ranging from job losses and income to lack of basic amenities like groceries and toiletries.

In addition to our life transforming messages preached every Sunday and streamed live on different social media platforms to help bring a message of hope, joy, and love to all people irrespective of their race, sex, beliefs, etc, the church also carried out the following community service actions during the year:

The project continued to partner with FareShare who supply a variety of fresh food and off the shelf food items. We also have had support from private individuals.

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The church also continued with its existing activities/service to both the immediate community and those at large.

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4.2 Grant Making Policies

Under the “Agreement for Common Purposes”, Covenant Restoration Assembly Nottingham has agreed to make regular contributions to the Central Office Funds (COF) and the World Evangelism Mission (WEM) through RCCG Central Office UK. We support Africa Missions, an aid relief Agency to underprivileged people and communities, mainly in Africa. We also actively and strongly support other missionary organisations, such as Christ For All Nations (CFAN), UCB Word for Today, Festival of Life, Good Women Fellowship, Annual Conventions held at the RCCG National Headquarters and other missions whose goals and visions are aligned with ours.

4.3 Contributions Made by Volunteers

The charity enjoys the services of various volunteers, who contribute enormously to various areas of service provision, development, and implementation of the church’s vision. The volunteers are encouraged to attend various training and development programmes organised by the charity and other organisations which could also have a positive impact in their secular activities and add value to themselves.

4.4 Future Development

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5.0 Financial Review

5.1 Principal Funding Sources

CRA had a brilliant financial year despite the challenges of the pandemic from the previous year, the church has been able to sustain its activities through the generous donations of its members. The Charity’s main source of fund this year has been through voluntary donations from members.

During the year ending Dec 31[st] , 2021, the charity received total funds of £174k. £170k of which was unrestricted income (£24k Gift aid inclusive) and £4k in restricted income (community grant and LYN matched fund). Voluntary income received was 31% more than 2020.

Total expenditure of £144k for the year 2021 was also 9.1% lower than prior year thus resulting in a surplus of £30k for the year. Cash at bank at the end of the period was £52k.

This financial support (mainly from member donations) continues to enable the church to be self-sustaining in meeting its day-to-day operational needs, planned investments in its growth and in fulfilling a myriad of public benefit and charitable services. To this, the church is very grateful to its generous donors and members.

As a result of sustainable income support streams, charities, and various other charitable objectives and community needs are being continually met. The present level of funding is adequate to support the continuation of the church objectives and hence continues to operate as a going concern.

5.2 Reserves Policy

The charity is aware of the need to have a documentary policy in place regarding reserve. As part the church’s mortgage loan covenant, it is imperative that the church has a minimum of 12months mortgage payment which is approximately £7k available at any point in time. As a result, the trustees deem it prudent to increase the free reserves to 3 month’s running cost to cover any unforeseen circumstances. These reserves are in unrestricted funds that can be used to mitigate any short-term financial difficulties. This policy is reviewed on an ongoing basis.

This report was approved by the Board of Trustees on 28[th] July 2022 and signed on their behalf by:

Full Name: Pst.Taiwo Enoch Olugbenga

Position: Chairman

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5.3 Scope and Basis of the Financial Statements

The accounts have been prepared under historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The accounts were prepared in accordance with the Statement of Recommended Practice SORP: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and with the Charities Act 2011.

Income

Revenue is recognised in the period in which the charity is entitled to receipt once the amount can be measured with reasonable certainty.

Expenses

Expenditure is included in the Statement of Financial Activities (SoFA) on an accruals basis and is recognised at the point when a legal or constructive obligation arises. Most costs are directly attributable to specific activities. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Fixed assets

Fixed assets with an individual purchase value of £500 is depreciated on a straight-line basis and stated at cost less depreciation; with plant and machinery depreciated over 5 years with no residual value and building over 50years.

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5.4 Statement of Financial Activities

RCCG Covenant
Restoration Assembly
RCCG Covenant
Restoration Assembly
RCCG Covenant
Restoration Assembly
CharityNo 1136253
Annual accounts for the period
Period
start
date
01/01/2021 To Period end
date
31/12/2021

Section A Statement of financial activities (including summary income and expenditure account)

Recommended categories by
activity
Recommended categories by
activity
Notes Unrestricted
funds
Restricted
income
funds
Endowment
funds
Total funds Prior year
funds
£ £ £ £ £
Income 3 F01 F02 F03 F04 F05
Income and endowments from:
Donations and legacies 164,475 5,695 - 170,170 129,858
Charitable activities 3,695 - 3,695 31,646
Interest Income 27 - - 27 39
Investments - - - - -
Separate material item of income - - - - -
Other - - - - -
Total 164,501 9,390 - 173,891 161,543
Expenditure 4
Expenditure on:
Raising funds 85,599 5,534 - 91,134 90,010
Charitable activities 48,304 3,695 - 51,998 68,306
Separate material expense item
Other 500 - - 500 250
Total 134,403 9,229 - 143,632 158,566
~~Net income/(expenditure)~~
before tax for the reporting
period
30,099 161 - 30,259 2,977
Taxpayable
(
p
) - - - - -
after tax before investment
gains/(losses)
30,099 161 - 30,259 2,977
Net gains/(losses) on
investments
- - - - -
Net income/(expenditure) 30,099 161 - 30,259 2,977
Extraordinary items - - - -
Transfers between funds 5 - - -
Other recognised
Gains and losses on revaluation of fixed
assets for the charity’s ow n use
- - - - -
Other gains/(losses) - - - - -
Net movement in funds 30,099 161 - 30,259 2,977
Reconciliation of
funds:
Total funds brought forw ard 176,551 2,350 - 178,901 175,923
Total funds carried forward 206,650 2,510 - 209,160 178,901

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5.5 Statement Of Financial Position

RCCG Covenant
Restoration Assembly
Nottingham
RCCG Covenant
Restoration Assembly
Nottingham
RCCG Covenant
Restoration Assembly
Nottingham
Charity No 1136253 1136253
Section B Balance sheet
Note Unrestricted
funds
Restricted
income
funds
Endowment
funds
Total this
year
Total last
year
£ £ £ £ £
Fixed assets F01 F02 F03 F04 F05
Intangible assets - - - - -
Tangible assets 6 286,053 - - 286,053 293,938
Total fixed assets 286,053 - - 286,053 293,938
Current assets
Debtors - - - - 363
Cash at bank and in hand 49,849 2,510 - 52,360 29,612
Total current assets 49,849 2,510 - 52,360 29,975
Creditors: amounts falling due
within oneyear
7 12,932 - 12,932 22,680
Net current assets/(liabilities) 36,917 2,510 - 39,427 7,295
liabilities 322,970 2,510 - 325,480 301,233
Creditors: amounts falling due
after oneyear
8 116,320 - - 116,320 122,332
- - - - -
Total net assets or liabilities 206,650 2,510 - 209,160 178,901
Funds of the Charity 9
Endowment funds - -
2,510
206,650
-
-
Restricted income funds 2,510 2,350
Unrestricted funds 206,650 - 176,551
Revaluation reserve
Fair value reserve
Total funds 206,650 2,510 - 209,160 178,901

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5.6 Notes to Financial Statements

1. Going concern

There are no material uncertainties related to events or conditions that cast significant doubt on the charity's ability to continue as a going concern.

2. Change in Accounting Estimate/Policy

There has been no change to accounting estimates or policies in the reporting period.

3. Income

Income is recognised in the period on the SoFA when the charity becomes entitled to the resources and the monetary value can be measured with sufficient reliability.

Income
Donations and legacies
Restricted Income
Total donations & legacies
Other Income Sources
Other income
Interest Income
Gain on Disposal of Asset
Total Other Income Sources
Total Income
2021
2021
2021
2020
Unrestricted
funds - £
Restricted
funds - £
Total Funds
- £
164,474.82
5,695.00
170,169.82
0.00
Prior year
funds - £
129,858.09
0.00
164,475
5,695
170,170
129,858
0.00
0.00
0.00
3,694.51
3,694.51
26.59
26.59
0.00
0.00
0.00
31,646.46
38.82
0.00
27
3,695
3,721
31,685
164,501
9,390
173,891
161,543

Unrestricted Income funds – is made up of voluntary donations at £146,239 and gift aid claims of £23,958

Restricted Income funds– is made up of voluntary donations received specifically for building maintenance /mortgage, and £3,694.51 made up of £2,500 Arnold Clark community fund and £1,164.91 LYN fund.

4. Expenditure

Expenditure is included in the Statement of Financial Activities (SoFA) on an accruals basis and is recognised at the point when a legal or constructive obligation arises. Most costs are directly attributable to specific activities.

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Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

----- Start of picture text -----
Expenditures 2021 2021 2021 2020
Unrestricted Restricted Total Funds - Prior year
funds - £ funds - £ £ funds - £
Raising Funds
Premises Maintenance 2,907.37 2,468.97 5,376.34 9,779.35
Utilities 13,426.38 13,426.38 14,502.40
Motoring & Transportation 237.47 237.47 0.00
Insurance 1,956.18 1,956.18 1,947.34
Administration 43,889.81 43,889.81 41,846.25
Operations 8,561.68 8,561.68 1,888.75
Honorarium 2,250.00 2,250.00 1,050.00
Training/subscriptions 974.62 974.62 2,816.78
Finance Charges 1,114.37 3,065.37 4,179.74 6,177.13
Depreciation 10,281.30 10,281.30 10,001.57
Total Cost of Generating Funds 85,599 5,534 91,134 90,010
Charitable Activities
Outreach 6,788.77 3,694.51 10,483.28 26,828.70
Central office 33,463.35 33,463.35 34,240.63
Welfare & Benevolence 2,864.50 2,864.50 2,500.00
Charitable Donations 5,187.00 5,187.00 4,737.00
Total Charitable Activities 48,304 3,695 51,998 68,306
Other Costs
Accountancy fees 500.00 0.00 500.00 250.00
Total Other Costs 500.00 0.00 500.00 250.00
----- End of picture text -----

5. Transfer between funds

There was no transfer between funds in the reporting period.

6. Tangible Fixed Asset

Fixed assets with an individual purchase value of £500 is depreciated on a straight-line basis and stated at cost less depreciation.

Fixtures and fittings 7years
Equipment 5yrs
Computers 5yrs
Property 50yrs

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Fixed Asset Schedule

----- Start of picture text -----
Freehold land & Plant, Computer Fixtures, fittings Total
buildings machinery and Equipment - and equipment
motor vehicles Cost b/fwd
£ £ £ £
At the beginning of the year 305,228 18,388 8,280 - 331,896
Additions - 1,754 - 642 2,396
Revaluations - - - -
Disposals - - - -
Transfers * - - - -
At end of the year 305,228 20,142 8,280 642 334,292
Depreciation and impairments
SL (Straight
Basis SL SL SL
Line)
At beginning of the year 24,420 12,922 617 - 37,958
Disposals - - - - -
Depreciation 6,105 2,481 1,656 39 10,281
Impairment - - - - -
Transfers* - - - - -
At end of the year 30,524 15,404 2,273 39 48,240
----- End of picture text -----**

7. Creditors falling due within one year

These figures include accrued expenses of £6,160 relating to December WEM of £3,646k and unspent grant fund.

Also included is mortgage commitment payment of £6,671.

8. Creditors falling due after one year

The church has a total balance of £79,842 on its mortgage of which £73,070 is due after one year, the church took out a Bounce Back Loan of £43,250 from HSBC. This was received in Dec 2020 with first repayment due in Jan 2022.

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9. Funds of the Charity

Capital & Reserves

Special reserves b/fwd £178,900.86
Surplus for current year £30,259.27
Total funds £209,160.13

These funds are further reconciled in the SoFA as below.

£2,510 are restricted for building purposes with the balance of £206,650 unrestricted.

10. Material Prior Year Errors

No material prior year error has been identified in the reporting period (3.47 FRS 102 SORP).

11. Related Party Transactions

During the year, the church made donations and contributions to other RCCG, and charitable organisations as shown in note 4 under Central Office and Charitable Giving.

12. Trustee Remuneration & Expenses

During the year, none of the trustees have been paid any remuneration or received any other benefits from an employment with the charity or a related entity

13. Staff cost and numbers

The church had 1 full time staff and 1 part time staff during the reporting year. The church also had 2 work placements students within the Digital Transformation Team of the church. The Salaries and wages included in the administrative cost is: £43,329.63

No employee received remuneration amounting to more than £60,000 in the year

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Independent Examiner’s Report

Report to the trustees/members of:

The Redeemed Christian Church of God, Covenant Restoration Assembly Nottingham

On accounts for the year ended:

31st December 2021

Charity No: 1136253

Respective responsibilities of trustees and examiner

The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent examiner’s statement,

In connection with my examination, no matter has come to my attention:

Signed: QaziArshad

Date: 20[th] September, 2022

Qazi Naveed Arshad (MA, FIAB) For and on behalf of

Solutions Accountants and Financial Services Ltd

149 Radford Road, Nottingham. NG7 5EH

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