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2023-04-05-accounts

REDEEMED CHRISTIAN CHURCH OF GOD Covenant Restoration Assembly Nottingham

TRUSTEE’S REPORT AND ANNUAL ACCOUNTS FOR THE YEAR ENDED 5[th] April 2023

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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 .................................................................................................................................... 11 5.1 Principal Funding Sources ................................................................................................................. 11 5.2 Reserves Policy .................................................................................................................................. 11 5.3 Scope and Basis of the Financial Statements .................................................................................... 12 5.4 Statement of Financial Activities ....................................................................................................... 13 5.5 Statement Of Financial Position ........................................................................................................ 14 5.6 Notes to Financial Statements .......................................................................................................... 15 Independent Examiner’s Report ................................................................................................................ 20

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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 15months period ending April 5[th] , 2023. RCCG CRA Nottingham changed its accounting period from December 31[st] to April 5[th] .

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. In the UK, CRA Nottingham falls under Region 7 Province 2.

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

2022: Year of Divine Acceleration & Fulfilment of Purpose - Gen 41; Job 42, Exo 3:1-10; Acts 10:1-48, 2:41; Dan 6:1-3 2023: Year of Supernatural Help and Victory - Daniel 4:17; Psalm 34:7, 40; Hebrew 13:5-6; Psalm 40:17

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

Regular Church Activities

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Special Programmes Held Within the Period Jan1st 2022 – April 5[th] , 2023

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4.0 Achievement and Performance

The church continues to see an increase in its membership, cutting across students, working families and children. The church makes it a priority to help new members especially those that have just relocated into Nottingham to settle in with ease by connecting them to members who live within their location, similar jobs, students with lecturers etc.

Due to our increased number, the church commenced having 2 services – Morning Service to start at 9am – 10.30 am followed by Sunday school at 10:30 – 11am and then a 2[nd] service for 11am – 12.45pm. The church is also looking into other ways it can maximize its current space or increase capacity.

During the year, the church had come to the end of its 10year fixed term mortgage loan with Unity bank and a new loan/remortgage was taken.

At the time of this exercise, the mortgage balance was £47,118. A revaluation of the church property was one of the clauses for the remortgage which brought the property value to £700,000.

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.

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:

Matthew Project – The church continued with the initiative launched in June 2020 after covid hit and saw a lot of families struggling to make ends meet or losing their jobs. This non-referral foodbank born out of the need to provide individuals and families with food and counselling services continues to run every Saturday between 12.30pm – 2pm and is available to all without any restrictions which is the main difference between the service and our other foodbank service. The project has been very successful in providing for average of 150 beneficiaries monthly with over 22,000kg worth of food in the reporting period.

The project continues 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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On the 24[th] of Dec 2022, the team organised a Christmas lunch for some of its beneficiaries serving hot meal, games and gifts for its users.

Matthew Project has also launched a new initiative to reach out to a facility in our local community which houses

ex-offenders. The team visits this group monthly to fellowship with them and encourage them in the Lord.

Foodbank- The church continues to partner with Hope Nottingham in providing food bank services to the community. The foodbank is open every Saturday 10am –12 noon.

The church received a community fund grant from Arnold Clark of £2,500. This fund was used to buy groceries and food items for the Matthew project.

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

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 continues to benefit from the generous donations of its members. The Charity’s main source of fund has been through voluntary donations from members.

The accounts reported this period is for the 15month period ending April 5[th ] 2023. The charity took the decision to change its accounting year end in line with HMRC’s year end for easy submission of both its annual report and its selfassessment for Trusts returns to HMRC.

The charity received total funds of £251,808. £246,013 of which was unrestricted income (£28,149 Gift aid inclusive) and £5,795 in restricted income (community grant and mortgage fund). Voluntary income received for the same period was 17% more than prior year when comparing the same period.

Total expenditure was £206,922. CRA closed the year with a surplus of £44,886. Cash at bank at the end of the period was £50,721.

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 end, the church is very grateful to its generous donors and members.

As a result of its sustainable income support streams; various 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 £5,110 available at any point in time. As a result, the trustees deem it prudent to have reserves of 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 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. However, property has been revalued to present a true and fair view of its value. 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, as amended by the Charities Act 2022.

Due to the change in the organisation’s accounting period from Dec 31[st] to April 5[th] , these are the first set of accounts, and it is prepared for 15months, for the period starting 01/01/2022 – 05/04/2023. Comparative data is the last set of accounts prepared for the 12months period 01/01/2021 – 31/12/2021.

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 a 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		 01/01/2022 To Period end
date		 05/04/2023

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 245,929 3,295 - 249,224 170,170
Charitable activities 2,500 - 2,500 3,695
Interest Income 85 - - 85 27
Investments - - - - -
Separate material item of income - - - - -
Other - - - - -
Total 246,013 5,795 - 251,808 173,891
Expenditure 4
Expenditure on:
Raising funds
Charitable activities 197,847 5,795 - 203,642 143,132
Separate material expense item 2,811 2,811
Other 469 - - 469 500
Total 201,127 5,795 - 206,922 143,632
Net income/(expenditure) before
tax for the reporting period		 44,886 - - 44,886 30,259
Taxpayable - - - - -
Net income/(expenditure) after tax
before investment gains/(losses)		 44,886 - - 44,886 30,259
Netgains/(losses)on investments - - - - -
Net income/(expenditure) 44,886 - - 44,886 30,259
Extraordinary items - - - -
Transfers between funds - - -
Other recognised gains/(losses): 5
Gains and losses on revaluation of fixed assets for the
charity’s own use		 430,531 - - 430,531 -
Other gains/(losses) - - - - -
Net movement in funds 475,417 - - 475,417 30,259
Reconciliation of funds:
Total funds brought forward 209,160 - 209,160 178,901
Total funds carried forward 684,577 - - 684,577 209,160

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5.5 Statement of Financial Position

----- Start of picture text -----
RCCG Covenant Charity No 1136253
Restoration Assembly
Nottingham
Section B Balance sheet
Restricted
Unrestricted income Endowment Total this Total last
funds funds funds year year
£ £ £ £ £
Fixed assets F01 F02 F03 F04 F05
Intangible assets - - - - -
Tangible assets 6 706,487 - - 706,487 286,053
Total fixed assets 706,487 - - 706,487 286,053
Current assets
Debtors 3,030 - - 3,030 -
Cash at bank and in hand 50,721 - 50,721 52,360
Total current assets 53,751 - - 53,751 52,360
Creditors: amounts falling due
within one year 7 14,990 - 14,990 12,932
Net current assets/(liabilities) 38,761 - - 38,761 39,427
Total assets less current
liabilities 745,248 - - 745,248 325,480
Creditors: amounts falling due
after one year 8 60,671 - - 60,671 116,320
- - - - -
Total net assets or liabilities 684,577 - - 684,577 209,160
Funds of the Charity 9
Endowment funds - - -
Restricted income funds - - 2,510
Unrestricted funds 254,046 - 254,046 206,650
Revaluation reserve 430,531 430,531
Fair value reserve
Total funds 684,577 - - 684,577 209,160
Note
----- End of picture text -----

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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 a change in valuation of fixed asset. Property was previously valued at cost less depreciated amount however during the year, the organisation decided to change this policy to revalue its property. The resulting gain in revaluation has been recognised in the fixed asset and revaluation reserve. All other categories of fixed assets remain unchanged.

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.

Donations and legacies
Restricted Income
Other income
Interest Income
Gain on Disposal of Asset
Income
Total donations & legacies
Other Income Sources
Total Other Income Sources
Total Income		 2023
2023
2023
2021
Unrestricted
funds - £
Restricted
funds - £
Total Funds -
£
Prior year
funds - £
245,929
3,295
249,224
170,170
0
0
245,929
3,295
249,224
170,170
0
2,500
2,500
3,695
85
85
27
0
0
0
85
2,500
2,585
3,721
246,013
5,795
251,808
173,891

Unrestricted Income funds – is made up of voluntary donations at £217,864 and gift aid claims of £28,149

Restricted Income funds– is made up of £3,295 voluntary donations received specifically as contribution towards our mortgage repayment and £2,500 Arnold Clark community fund.

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

Premises Maintenance
Utilities
Motoring & Transportation
Insurance
Administration
Operations
Honorarium
Training/subscriptions
Finance Charges
Depreciation
Outreach
Central office
Welfare & Benevolence
Charitable Donations
Total Charitable Activities
Accountancy fees
Legal and Professional fees
Total Other Costs
Charitable Activities
Expenditures
Other Costs		 2023
2023
2023
2021
Unrestricted
funds - £
Restricted
funds - £
Total
Funds - £
Prior year
funds - £
4,138
4,138
5,376
22,607
22,607
13,426
9,596
9,596
237
2,983
2,983
1,956
59,677
59,677
43,890
9,000
9,000
10,262
6,300
6,300
2,250
2,835
2,835
975
2,715
3,295
6,010
4,180
15,491
15,491
10,281
5,969
2,500
8,469
8,783
42,523
42,523
33,463
3,615
3,615
2,865
10,400
10,400
5,187
197,847
5,795
203,642
143,132
469
0
469
500
2,811
2,811
3,280
0
3,280
500
Total Expenditure 201,127
5,795
206,922
143,632

Legal and professional fees include fees paid for the revaluation of the church property and the loan arrangement fee.

5. Other Recognised Income

The church property was revalued during the year at £700,000. Carry value of the property at the time of revaluation was £269,469 leaving a revaluation gain of £430,531.

There was no transfer between funds in the reporting period nor any extraordinary items.

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6. Tangible Fixed Asset

Fixed assets (with the exception of property) with a purchase value of £500 or more is depreciated on a straightline basis and stated at cost less depreciation. Going forward, property will be valued at the revaluated amount less depreciation. The revalued property’s estimated life is 44years.

Fixtures and fittings 7years
Equipment 5yrs
Computers 5yrs
Property 44yrs

Fixed Asset Schedule

At the beginning of the year
Additions
Revaluations
Disposals
Transfers
At end of the year
Basis
At beginning of the year
Disposals
Depreciation
Revaluation Adjustment
Impairment
Transfers
At end of the year
Net book value at the beginning
of the year
Net book value at the end of the
year
Net book value
Depreciation and impairments**		 Freehold land &
buildings
£		 Plant, machinery
and motor
vehicles
£		 Computer Equipment
- Cost b/fwd
£		 Fixtures, fittings
and equipment		 Total
£
305,228 20,142 8,280 642 334,292
- - - 5,394 5,394
394,772 - - 394,772
- - - -
- - - -
700,000 20,142 8,280 6,036 734,458
SL (Straight
Line)		 SL SL SL SL
30,524 15,404 2,273 39 48,239
- - - - -
11,331 1,855 2,087 217 15,491
- 35,759 - 35,759
- - - - -
- - - - -
6,096 17,259 4,360 256 27,971
274,704 4,738 6,008 603 286,053
693,904 2,883 3,921 5,780 706,487

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7. Creditors falling due within one year

These figures include mortgage commitment of £5,110 for the year and 1 year repayment of Bounce back loan £9,211.

8. Creditors falling due after one year

The church has a total balance of £42,056 on its mortgage of which £5,110 is due after one year, the church took out a Bounce Back Loan of £43,250 from HSBC in 2021. The balance on this is £32,936 whilst £9,210 of it is due within 1 year.

9. Funds of the Charity

Special reserves b/fwd £209,160 Surplus (deficit) £44,886 Revaluation of Fixed Assets £430,531 Total Funds £684,577

None of this is restricted funds.

Revaluation If an accounting policy of revaluation is adopted, please provide: This year

09/11/2022 the effective date of the revaluation Eric C Spencer MRICS - the name of independent valuer, if applicable Bruton Knowles LLP the methods applied and significant Comparable method assumptions the carrying amount that would have been £267,010 recognised had the assets been carried under the cost model.

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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 2 part time staff during the reporting year. One of the part-time staff was on maternity leave at during the year hence the need for a second part-time staff for maternity cover. The church also had 2 work placements students within the Digital Transformation Team of the church who completed their placements during the year. The Salaries and wages included in the administrative cost is: £58,391.

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

14. Independent Examiner Fees

Independent Examiner Fees has been accrued at £469.

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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: 5th April 2023

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: 13[th] December, 2023

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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