# **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020** 

# **SOUTH HILL CHURCH (HEMEL HEMPSTEAD)** 

**(A COMPANY LIMITED BY GUARANTEE)** 

**CHARITY REGISTRATION No: 1137502 COMPANY REGISTRATION No: 07273639** 

Independent Examiners Ltd 

Unit 2 The Broadbridge Business Centre Delling Lane Bosham PO18 8NF 

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||**SOUTH HILL CHURCH (HEMEL HEMPSTEAD)**|
|---|---|
||**(A COMPANY LIMITED BY GUARANTEE)**|
||**CONTENTS**|
|Page 3|Legal & Administrative Information|
|Pages 4 to 10|Report of the Directors'|
|Page 11|Statement of Financial Activities|
|Page 12|Balance Sheet|
|Pages 13 to 20|Notes to the Financial Statements|
|Page 21|Independent Examiner's Report|



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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **LEGAL AND ADMINISTRATIVE INFORMATION** 

**CHARITY NUMBER** 1137502 **COMPANY REGISTRATION NUMBER** 07273639 **DATE OF INCORPORATION** 4th June 2010 **START OF FINANCIAL YEAR** 1st January 2020 **END OF FINANCIAL YEAR** 31st December 2020 **DIRECTORS AT 31ST DECEMBER 2020** Kathryn McKerrell (Chair) Robin Oakes Claire Nicell Richard Hudson Gabriele Henderson John Sweetnam 

**SPIRITUAL LEADERS** Brian Boggis (Pastor) Robin Oakes 

**GOVERNING DOCUMENT** Memorandum and Articles of Association Dated 4th June 2010. 

To advance the Christian faith in Hemel Hempstead, **OBJECTS** Hertfordshire and other parts of the UK or the world as the trustees may see fit. To relieve sickness and financial hardship and to promote good health by the provision of funds, goods or services. To promote community facilities for educational, recreational and other leisure time occupation in the interest of social welfare for persons who have need. 

**REGISTERED ADDRESS** South Hill Centre Cemetery Hill Hemel Hempstead Hertfordshire HP1 1JF **BANKERS** Santander UK Plc 2 Triton Square Regent's Park London NW1 3AN 

**INDEPENDENT EXAMINER** K Gomes Independent Examiners Ltd Unit 2 ,The Broadbridge Business Centre Delling Lane, Bosham PO18 8NF 

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# **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **REPORT OF THE DIRECTORS** 

## **FOR THE YEAR ENDED 31ST DECEMBER 2020** 

The Trustees present their report and the financial statements of the Company for the period 1st January to 31st December 2020. 

## **Constitution and Governance** 

The Church was registered as a Private Limited Company, limited by guarantee on 4th June 2010 - company number 7273639 - and subsequently with the Charity Commission - charity number 1137502. 

The Company is established under a Memorandum of Association which sets out its objects and powers. It is governed under its Articles of Association. 

The Trustees have dual roles, one being Trustees, the other being as Directors of the Company for the purpose of company law. 

The Trustees during the period were: Kathryn McKerrell (Chair) Robin Oakes Claire Nicell Richard Hudson John Sweetnam (Company Secretary) Gabriele Henderson 

These Trustees bring a unique set of skills to the company’s business. They include an accountant, a nurse, two engineers, a learning mentor and a teacher. Each has significant professional skills and recognises the importance of personal training, including the need to attend appropriate training courses in order to keep up to date with developments in Trustee and Director responsibilities. They are all committed to the aims and objectives of the Charity. 

The Church’s Memorandum of Association recognises the role of Spiritual Leadership in the spiritual governance of the Church. Spiritual Leadership during the period of these accounts was Robin Oakes and Brian Boggis (the Church leaders). This Report therefore is concerned with the proper management and administration of the charity in accordance with the Articles and in furtherance of the Objects. 

The Trustees have purchased Trustee indemnity insurance. 

## **Aims and Objectives for the Public Benefit** 

This statement is required by the Charities Act 2006. In preparing these comments we have had regard to the Charity Commission’s public benefit guidance (Reg 40 (2) (c) (ii)) 

The Church Leaders and Trustees are aware of the Commission’s guidance on public benefit and in particular the specific guidance on charities for the advancement of religion. 

No charge is made for any regular Church activities and they are open to the general public. 

## **The Vision of the Church** 

The vision God has given us is to equip the Church to serve God and reach our community. 

## **The Church’s Mission Statement** 

We aim to be a place: 

**i)** - To belong, where everyone is valued. 

- **ii)** - Of exciting discovery and dynamic growth. 

**iii)** - Where everyone is encouraged through the compelling Love of God to reach their true potential. 

- **iv)** - Where the Bible is truly taught and its values upheld. 

- **v)** - That is passionate about worship. 

- **vi)** - That experiences the joy and privilege of prayer and understands its importance and value. 

- **vii)** - With a heart of compassion that engages with and connects to our contemporary world. 

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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

The following points highlight some of the benefits provided by the Church: **i)** - The Church holds weekly services on Sunday mornings. The format and content of these meetings vary from week to week and include Bible teaching, worship, baptism, communion, dedications, family worship and other activities. 

**ii)** - At the same time as the Sunday morning services there are activities for children and youth which include Bible teaching, worship, craft and other activities. 

**iii)** - Some 125 people regularly attend the Sunday morning services, of which 40 youngsters attend the children and youth activities 

**iv)** - The Church has groups which meet for Prayer and encourages personal prayer and devotion times for members. There are a number of Family Care groups which provide support and encouragement in the Christian life to those who attend Church. A weekly email is issued with a summary of recent services, news and issues for the Church members to pray about and be involved in. 

**v)** - The Church has also organised informal social activities. Some of these are for men and women separately, some are geared to families and all provide an opportunity to support and encourage one another as well as a relaxed atmosphere to introduce others to the activities of the Church. 

## **vi)** - The Church’s web-site is www.southhillchurch.co.uk. 

**vii)** - The Church has continued to support a number of ministers and their work in the Eastern Cape Province in South Africa as well as missionaries in the UK and overseas during the reporting period. 

The Church also works very closely with South Hill Centre, a separate charity originally set up by the Church to offer pre-school education facilities, but which now also runs the building in which the Church meets and provides a comprehensive range of community activities. The Centre’s activities include family support, activities for the elderly, careers and job seeking advice, health and fitness clubs, and makes available facilities for many local charities and community groups to use. Church members are actively encouraged to support the Centre both financially and as volunteers at its activities. More information can be found at www.southhillcentre.co.uk 

## **Main Objectives for 2020** 

The main objectives for 2020 were set early in 2020 as the Covid19 pandemic was in its early stages.  As the pandemic has continued to affect the Church’s activities into 2021 many of the objectives have not been achieved as originally envisaged as set out in the table below 

## **OBJECTIVES** 

## **ACHIEVEMENTS** 

**·** Maintain close contact with our members and those we **·** Throughout the pandemic we have been live help who attend our various activities during the streaming our services, holding zoom chat times lockdown as a result of the Coronavirus pandemic. after the service when we were not allowed to meet together, encouraging Family Care groups to meet on zoom and WhatsApp, holding zoom and telephone prayer meetings and keeping in touch with members, youth and children and their parents through social media, whilst maintaining social distancing and isolation where appropriate, by personal visits and telephone contact. When allowed we have opened the building and held services, as has the group of Romanian Christians. 

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# **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

**REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **OBJECTIVES** 

## **ACHIEVEMENTS** 

**·** With the Spiritual Leadership, consider ways of **·** This is an ongoing process. strengthening the leadership and the group of trustees. 

**·** Support those in the Church family who are called to serve throughout the world. 

**·** Tim and Miranda Heathcote are based in Spain with YWAM\CMS and we are supporting them. 

**·** Ric and Tulin Munro continue their work in Turkey. Their aim when they retire is to settle in Hemel Hempstead, and they have used their own accommodation in Hemel when they returned during 2020. 

**·** Dean and Ruth Such are working in Bolivia amongst the disadvantaged young people and the Church has continued to support them in their mission. 

**·** Review our general policies and procedures to ensure they meet the Charity Commission best practice recommendations. 

**·** All policies and procedures are regularly reviewed. 

**·** GDPR and the use of iKnow (church management software), continue to be priorities 

**·** In South Africa we continue to support Pastor Monde and the church and development projects at Mgezwa. 

**·** The Church in Mgezwa has faced a number of challenges over recent years in relation to its ownership of its main site. The Church has supported the Church in Mgezwa with information and history that we were party to, plus prayer and encouragement. This issue now appears to have receded. 

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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **Activities** 

Our activities for most of the year were curtailed by Covid-19 restrictions put in place by the Government. When we were allowed to meet together in the church building we held some of the following activities: 

**. Sunday Services** , although throughout the year we have videoed our services and uploaded them to our YouTube channel. 

. Our Sunday Activities for **children and young people** continued when possible but when the building was closed we used social media to keep in touch with our **Lookout** children between 5 and 11, **Lookout Junior** for those under 5, and our young people who are catered for in **Ignite** . A number have left to go to university in the last few year, but continue in their faith and come back to South Hill when home. . During the week **Zone** club members for youngsters between 5 and 11 years and **Girl Talk** young ladies met when they were able. 

Also during the week **Prayer and Family Care groups** met by phone or on-line. 

Other activities organised and run by volunteers from amongst church people but under the auspices of South Hill Centre, the charity which supports the Church’s community activity, were only able to operate when lockdown was completely lifted: 

## . **Squealers** Carers’ and Toddlers’ group 

. **Table Talk** , a meal and social engagement with our senior citizens and those who are lonely. Many of these people have no formal connection with the Church. 

. We have continued to provide support for victims of violence and hard to reach people, mainly on-line. All this activity can only be maintained because approximately 50 people from the church 

volunteer to help lead them. This involves significant preparation and clearing up. In addition, many of these same people support other activities in the Centre giving freely of their time and resources. The Church Leaders and Trustees really appreciate all the resources given so willingly to help achieve the vision God has given the church. 

## **Working together with other Churches in Hemel** 

The Church is a member of Churches Together in Hemel Hempstead. 

A number of the Church members are part of the Street Pastors team. 

The Church is regularly represented at the monthly Pray Hemel and gives support to DENS (working with the homeless) and the Dacorum Foodbank, where it is now a distribution centre. The Church also supports Youth across Hemel, the Christian secondary schools work. 

The Church has for many years supported Andrew Masters and Discovery which works in a large number of junior schools throughout Hemel. 

## **Supporting those in our Church family called to serve in the UK and throughout the world** 

Eleven full time workers and outreach opportunities, as listed in the attached accounts, both overseas and in the UK, were supported via the Missionary Fund. These included Ric and Tulin Munro working in Turkey, Tim and Miranda Heathcote in Spain, Dean and Ruth Such in Bolivia, Youth across Hemel’s work amongst secondary schools, Kim Hobbs work with ex-offenders and Andrew Masters’ Discovery work in primary schools and with the distribution of Bibles to primary school children. Kim and Andrew are both based in Hemel Hempstead. 

## **Assisting fellowships overseas to develop, particularly in South Africa** 

South Hill Church has for many years had an ongoing relationship with Pastor Monde and his church at Mgezwa, near Lusikisiki. 

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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **Main Objectives for 2021** 

The main objectives for 2021 are to: 

•Re-envision Church after the restrictions imposed during the pandemic are lifted. 

•Continue to support the Spiritual Leadership of the Church as they seek to grow the Church in maturity, numbers and Christian witness and service in the community as we live out the vision set out in this document and specifically in 2020 as we focus on the use of social media to promote Church growth during and following the pandemic. 

•With the Spiritual Leadership, consider ways of strengthening both leadership and the group of trustees in the light of the changed demands following the pandemic. 

•Identify new opportunities for serving the community and implement those that are appropriate and achievable with the resources available. 

•Coordinated by our Children and Youth workers, encourage the discipleship of the children and youth that belong to the church and in the local community through appropriately designed sessions and groups 

•Participate in ensuring we remain a living dynamic family, providing support, discipleship and encouragement for all ages including an Alpha course and other material for new Christians and those enquiring about the Christian faith. 

•Support those in the Church family who are called to serve throughout the world. 

•Continue to review our general policies and procedures to ensure we meet the Charity Commission best practice recommendations. 

•Continue to support Pastor Monde and the church and development projects at Mgezwa, South Africa partly by encouraging Brian the pastor and others in the Church to visit the project when it becomes safe to travel again. South Hill will also help the local Church to develop its mission in a neighbouring village. 

## **Financial Review** 

The accounts reflect 12 months activity. 

The accounts have been prepared using the FRS102. 

Voluntary donations of £87,492 were received in the period, a reduction of £9,242 from the previous year which is partly due to the pandemic. A substantial amount of the donations come from monthly standing orders set up by members of the church, with the rest coming in our weekly offerings on Sunday mornings. The benefits of Gift Aid are explained to donors and a significant majority meet the Gift Aid criteria, so that £13,426 is included in the total for Gift Aid reclaims. 

During the period the Company spent £85,451 on charitable activities, a decrease of £18,103 from the previous year. 

An amount of £15,130 was given to mission groups and individuals in the UK and £6,629 was paid out to various projects in South Africa, some of which were supporting individuals through training and education to benefit their local communities and churches. This compares to £17,028 and £5,408 respectively in the previous year. These gifts are detailed in Note 5. 

We are aware of the best practice requirements relating to finance given to overseas charities and have appropriate controls in place to verify that money donated is being spent on charitable activities. These include controls over release of funds from the UK and regular visits by members of the Church to verify that money has been spent on the projects to which it was designated. 

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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **Reserves Policy and Going Concern** 

The financial position of the Church remains satisfactory, with £27,723 of unrestricted funds in the bank (£24,505 at the end of the previous year) and a restricted funds of £3,999 (£4,093 end of previous year). With expenses running at some £85,451 (excluding one off items) in calendar year 2020, best practice would require us to have 3 months expenditure in the bank to ensure we have sufficient to meet an unexpected down-turn in giving or an unexpected expense. The Trustees are satisfied that carrying 3.8 months expenditure in the bank account is sufficient, although being mindful that 2020 expenditure was depressed by the COVID lockdowns. The Trustees will seek to maintain this ratio during 2021 despite the pressure on reserves resulting from the pandemic. 

The restricted funds of £3,999 represent gifts made to support the various people and activities as listed in Note 5. At the end of the previous year this was £4,122. 

There is regular communication with the people and activities, for which funds are being held, and funding needs are identified and funds transferred as necessary. 

## **Risk Management** 

The Trustees are aware of the need to properly manage and mitigate the risks faced by the company. They work closely with the Directors of South Hill Centre to ensure a comprehensive approach is adopted to the major strategic, business and operational risks faced by the Companies and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to minimise those risks. They also regularly consider emerging risks which might affect the company. 

A risk register is in place, and comprehensive child protection, equality and diversity, health and safety and data protection policies have been adopted. Specific training is given where appropriate to volunteers and employees to help mitigate risks. 

## **Related Parties** 

The Company has no related parties but has worked closely with South Hill Centre and other agencies in fulfilling its aims and objectives. 

## **Small Companies Provisions** 

The report has been prepared in accordance with the special provisions of part vii of the Companies Act 2006 relating to small companies. 

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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **Statement of Directors' Responsibilities:** 

The Charities Act and the Companies Act require the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to :- 

**a)** 

select suitable accounting policies and then apply them consistently; 

**b)** 

make judgements and estimates that are reasonable and prudent; 

**c)** 

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business; 

**d)** 

state whether applicable accounting standards and statements of recommended practice have been followed subject to any material departures disclosed and explained in the financial statements. 

The Directors are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act 2006 and comply with regulations made under the Charities Act. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The Directors are also responsible for the contents of the Directors' report, and the responsibility of the independent examiner in relation to the Directors' report is limited to examining the report and ensuring that, on the face of the report, there are no inconsistencies with the figures disclosed in the financial statements. 

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. 

The Directors have approved the attached statement of financial activities and balance sheet for the year ended 31st December 2020 and confirm that they have made available all information necessary for it's preparation. 

Approved by the Directors on the ……………………………………… 

Signed on their behalf by Director ………………………………………… 

Printed Name: 

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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **Incorporating Income & Expenditure Account** 

|**Notes**<br>**INCOMING RESOURCES**<br>**Incoming Resources from Generated Funds**<br>Donations & Legacies<br>**3a**<br>Charitable Activities<br>**3b**<br>**TOTAL INCOMING RESOURCES**<br>**RESOURCES EXPENDED**<br>**Costs of Generating Funds**<br>Cost of Charitable Activities<br>**4a**<br>Governance Costs<br>**4b**<br>**TOTAL RESOURCES EXPENDED**<br>**NET INCOMING/ (OUTGOING) RESOURCES**<br>Total Funds Brought Forward<br>Transfer Between Funds<br>**TOTAL FUNDS CARRIED FORWARD**|Unrestricted<br>Restricted<br>**TOTAL**<br>**TOTAL**<br>Funds<br>Funds<br>**2020**<br>**2019**<br>£<br>£<br>£<br>£<br>80,957<br>6,535<br>87,492<br>96,734<br>2,074<br>-<br>2,074<br>3,045|
|---|---|
||**83,031**<br>**6,535**<br>**89,566**<br>**99,779**|
||63,692<br>21,759<br>85,451<br>103,554<br>990<br>-<br>990<br>990|
||**64,682**<br>**21,759**<br>**86,441**<br>**104,544**|
||**18,349**<br>**(15,224)**<br>**3,125**<br>**(4,765)**<br>24,505<br>4,093<br>28,598<br>33,362<br>(15,130)<br>15,130<br>-<br>-|
||**27,723**<br>**3,999**<br>**31,722**<br>**28,598**|



Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing. 

The notes on pages 13 to 20 form part of these financial statements. 

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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **BALANCE SHEET FOR THE YEAR ENDED 31ST DECEMBER 2020** 

|**Note**<br>**Fixed Assets**<br>Tangible Assets<br>**2**<br>**Current Assets**<br>Debtors & Prepayments<br>**7**<br>Cash at Bank and in Hand<br>**6**<br>**Total Current Assets**<br>**8**<br>**NET CURRENT ASSETS**<br>**9**<br>**NET ASSETS**<br>**Total Funds of the Charity**<br>General Funds<br>Restricted Funds<br>**5**<br>**Creditors:** amounts falling due within one<br>year<br>**Long**<br>**Term**<br>**Liabilities:**<br>amount<br>due<br>in<br>more than one year|Unrestricted<br>Restricted<br>**31-Dec-20**<br>**31-Dec-19**<br>Funds<br>Funds<br>**Total**<br>**Total**<br>£<br>£<br>**£**<br>**£**<br>-<br>-<br>-<br>-<br>6,841<br>-<br>6,841<br>2,001<br>22,287<br>3,999<br>26,286<br>27,810|
|---|---|
||**29,128**<br>**3,999**<br>**33,127**<br>**29,811**|
||1,405<br>-<br>1,405<br>1,213<br>27,723<br>3,999<br>31,722<br>28,598|
||-<br>-<br>-<br>-|
||**27,723**<br>**3,999**<br>**31,722**<br>**28,598**|
||27,723<br>-<br>27,723<br>24,505<br>-<br>3,999<br>3,999<br>4,093|
||**27,723**<br>**3,999**<br>**31,722**<br>**28,598**|



For the financial year ending 31 March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. 

Director's responsibilities : 

**.** The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476 ; and 

**.** 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 financial statements on pages 11 to 20 were approved by the Trustees, and authorised and signed on their behalf by: 

Approved by the Directors on the ……………………………………… 

Signed on their behalf by Director ………………………………………………………… 

Print Name .............................. 

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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **1. ACCOUNTING POLICIES** 

## **Basis of Preparation & Assessment of Going Concern** 

## **Basis of Preparation** 

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) - (Charities SORP - FRS102) and the Charities Act 2011. 

The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes. 

## **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. 

## **Incoming Resources** 

## _**Recognition of Incoming Resources**_ 

These are included in the Statement of Financial Activities (SOFA) when: 

▪ the charity becomes entitled to the resources; ▪ the Directors are virtually certain they will receive the resources; and ▪ the monetary value can be measured with sufficient reliability 

## _**Incoming Resources with Related Expenditure**_ 

Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resource and related expenditure are reported gross in the SOFA. 

## _**Grants and Donations**_ 

Grants and Donations are only included in the SOFA when the charity has unconditional entitlement to the resources. 

## _**Tax Reclaims on Donations and Gifts**_ 

Incoming resources from tax reclaims are included in the SOFA in the same financial period as the gift to which they relate. 

## _**Volunteer Help**_ 

The value of any voluntary help received is not included in the accounts but is described in the Directors' annual report if applicable. 

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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **Expenditure and Liabilities** 

## _**Liability Recognition**_ 

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

## _**Governance Costs**_ 

Include costs of the preparation and examination of statutory accounts, the costs of the Directors' meetings and cost of any legal advice to Directors on governance or constitutional matters. 

## _**Changes in Accounting Policies and Previous Accounts**_ 

There has been no change to the accounting policies (variation rules and methods of accounting) since last year, and no changes to the previous accounts. 

## _**Fixed Assets**_ 

These are capitalised if they can be used for more than one year, and cost at least £1,500. They are valued at cost or, if gifted, at the value to the charity on receipt. 

## **2. TANGIBLE FIXED ASSETS** 

The Charity held no fixed assets investments during this or the previous financial year. 

The annual commitments under non-cancelling operating leases and capital commitments are as follows: 31st December 2020 : None. 31st December 2019 : None. 

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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **3. INCOMING RESOURCES** 

|**a) Donations & Legacies**<br>Gifts, Tithes & Offerings<br>Gift Aid Tax Recovered<br>Missionary Fund<br>**b) Charitable Activities**<br>Conference Book Sales<br>Embrace<br>Wreath Making<br>Youth Camp|Unrestricted<br>Restricted<br>**TOTAL**<br>**TOTAL**<br>Funds<br>Funds<br>**2020**<br>**2019**<br>£<br>£<br>£<br>£<br>68,798<br>-<br>68,798<br>78,613<br>12,160<br>1,266<br>13,426<br>12,763<br>-<br>5,269<br>5,269<br>5,358|
|---|---|
||**80,958**<br>**6,535**<br>**87,492**<br>**96,734**|
||-<br>-<br>-<br>322<br>2,074<br>-<br>2,074<br>1,842<br>-<br>-<br>881<br>-<br>-<br>-|
||**2,074**<br>**-**<br>**2,074**<br>**3,045**|



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## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **4. RESOURCES EXPENDED** 

|**Notes**<br>**a) Charitable Activities**<br>Activities & Events<br>Advertising & Publicity<br>Bank Charges<br>Books & Manuals<br>CAP Membership<br>Child Protection<br>Children's & Youth Expenses<br>Children's Worker & Youth Workers Salary<br>**10**<br>Christian Music Copyright<br>Churches Together Subscription<br>Conferences Costs<br>Evangelical Alliance<br>Gifts & Donations<br>Insurance Costs<br>Missionary Fund<br>**5**<br>PA / Music Equip<br>Pastoral Expenses<br>Pastor's Expenses - South Africa<br>Pastor's Fees<br>Printing, Printing & Stationery<br>South Hill centre use donation<br>Speakers Expenses<br>Telephone Costs<br>Travel & Entertaining<br>Website Costs<br>**b) Governance Costs**<br>Independent Examiners Fees<br>**8**|Unrestricted<br>Restricted<br>**TOTAL**<br>**TOTAL**<br>Funds<br>Funds<br>**2020**<br>**2019**<br>£<br>£<br>£<br>£<br>2,782<br>-<br>2,782<br>2,260<br>-<br>-<br>18<br>-<br>-<br>18<br>-<br>68<br>97<br>-<br>97<br>448<br>-<br>-<br>246<br>-<br>246<br>333<br>1,432<br>-<br>1,432<br>1,998<br>26,020<br>-<br>26,020<br>25,420<br>934<br>-<br>934<br>803<br>-<br>-<br>50<br>50<br>-<br>50<br>65<br>250<br>-<br>250<br>250<br>105<br>-<br>105<br>16<br>679<br>-<br>679<br>679<br>21,759<br>21,759<br>22,437<br>830<br>-<br>830<br>389<br>19<br>-<br>19<br>55<br>-<br>-<br>1,528<br>27,193<br>-<br>27,193<br>39,500<br>193<br>-<br>193<br>428<br>2,500<br>-<br>2,500<br>6,000<br>-<br>-<br>325<br>123<br>-<br>123<br>-<br>57<br>-<br>57<br>29<br>200<br>-<br>200<br>473|
|---|---|
||**63,692**<br>**21,759**<br>**85,451**<br>**103,554**|
||990<br>-<br>990<br>990|
||**990**<br>**-**<br>**990**<br>**990**|



16 



## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **5. RESTRICTED FUNDS** 

|Missionary Fund|**Balance**<br>**Balance**<br>**31-Dec-19**<br>Income<br>Expenditure<br>Transfers<br>**31-Dec-20**<br>4,093<br>6,535<br>21,759<br>15,130<br>3,999|
|---|---|
||**4,093**<br>**6,535**<br>**21,759**<br>**15,130**<br>**3,999**|



The Charity's cash reserves include an amount representing the balance of the restricted fund. 

## **Missionary Fund Analysis** 

|**GENERAL**<br>Andrew Masters<br>Bibles for Children<br>Bolivia - Dean and Ruth<br>Children's Society<br>Dacorum Food Bank<br>Dacorum Night Shelter<br>Dean & Ruth Such<br>Ex Offenders<br>Gifts to Individuals<br>Ric & Tulin Munro<br>Soul Survivor<br>Tim & Miranda Heathcote<br>Youth Across Hemel<br>**AFRICA**<br>Agricultural Project at Lusikisiki<br>Victoria<br>Pastor Matheson<br>Pastor Monde and family<br>Pre-School Support at Lusikisiki<br>Africa General fund|**Balance**<br>**Balance**<br>**31-Dec-19**<br>Income<br>Expenditure<br>Transfers<br>**31-Dec-20**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>850<br>850<br>-<br>-<br>900<br>900<br>-<br>1,500<br>3,725<br>2,225<br>-<br>-<br>250<br>250<br>-<br>-<br>500<br>500<br>-<br>-<br>500<br>500<br>-<br>-<br>-<br>-<br>1,830<br>1,830<br>-<br>-<br>100<br>100<br>-<br>3,000<br>3,000<br>-<br>-<br>-<br>-<br>1,500<br>3,575<br>2,075<br>-<br>-<br>-|
|---|---|
||-<br>3,100<br>15,130<br>12,130<br>100<br>250<br>-<br>250<br>1,750<br>1,801<br>(51)<br>938<br>1,125<br>1,142<br>921<br>202<br>456<br>749<br>91<br>-<br>3,133<br>327<br>-<br>2,937<br>3,000<br>2,869<br>431<br>-<br>431<br>-<br>-<br>-|
||4,093<br>3,435<br>6,629<br>3,000<br>3,899|
||**4,093**<br>**6,535**<br>**21,759**<br>**15,130**<br>**3,999**|



General Africa Fund includes amounts transferred to the church in Lusikisiki's Standard Bank account to be drawn down as directed by South Hill Church. When amounts are withdrawn they will be recorded against the appropriate expense line and an offsetting reduction recorded against General Africa Fund. 

17 



## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **6. CASH AT BANK AND IN HAND** 

|Cash at Bank|Unrestricted<br>Restricted<br>**Total**<br>**Total**<br>Fund<br>Fund<br>**31-Dec-20**<br>**31-Dec-19**<br>£<br>£<br>**£**<br>**£**<br>22,287<br>3,999<br>26,286<br>27,810|
|---|---|
||**22,287**<br>**3,999**<br>**26,286**<br>**27,810**|



## **7. DEBTORS AND PREPAYMENTS** 

|**7. DEBTORS AND PREPAYMENTS**||
|---|---|
|Gift Aid Tax Recoverable<br>Sundry Debtors|Unrestricted<br>Restricted<br>**Total**<br>**Total**<br>Fund<br>Fund<br>**31-Dec-20**<br>**31-Dec-19**<br>£<br>£<br>**£**<br>**£**<br>6,841<br>-<br>6,841<br>1,800<br>-<br>-<br>200|
||**6,841**<br>**-**<br>**6,841**<br>**2,000**|



## **8. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|PAYE & N.I<br>Sundry Creditors<br>Independent Examiners Fees|Unrestricted<br>Restricted<br>**Total**<br>**Total**<br>Fund<br>Fund<br>**31-Dec-20**<br>**31-Dec-19**<br>£<br>£<br>**£**<br>**£**<br>81<br>81<br>90<br>334<br>-<br>334<br>133<br>990<br>-<br>990<br>990|
|---|---|
||**1,405**<br>**-**<br>**1,405**<br>**1,213**|



## **9. LONG TERM LIABILITIES: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR** 

The Charity has no long term liabilities during this or the previous financial year. 

18 



## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD) (A COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **10. STAFF COSTS AND NUMBERS** 

|**10. STAFF COSTS AND NUMBERS**|||
|---|---|---|
|Gross Wages and Salaries<br>Employer's National Insurance Costs<br>Pension Contributions|**2020**<br>£<br>25,262<br>-<br>758<br>**26,020**|**2019**<br>£<br>24,740<br>-<br>680|
|||**25,420**|



|Employees who were engaged in each of the following|activities:||
|---|---|---|
||**2020**|**2019**|
||TOTAL|TOTAL|
|Activities in furtherance of organisation's objects|2|2|



The Charity operates a PAYE scheme to pay all employed members of staff and no employees received emoluments of over £60,000. (2019:None) 

## **11. DIRECTORS AND OTHER RELATED PARTIES** 

No payments were made to directors or any persons connected with them during this financial period. No material transaction took place between the charity and a director or any person connected with them. 

Total aggregated donations (excl Gift Aid) from Trustees and related parties in the financial year was £24,948 (2019:£33,601) 

## **12. RECONCILIATION OF MOVEMENT ON CAPITAL AND RESERVES** 

The Company is Limited by Guarantee and is a Charity registered with the Charity Commission number 1137502 and is not, therefore, subject to Corporation Tax and does not have a Share capital. 

|Profit / Deficit for the financial year<br>Other Recognised Gains<br>Balance Brought Forward<br>Closing Funds at 31st December 2020|**2020**<br>**£**<br>3,125<br>-<br>**3,125**<br>28,598<br>**31,722**|**2019**<br>**£**<br>(4,764)<br>-|
|---|---|---|
|||**(4,764)**|
|||33,362|
|||**28,598**|



19 



## **SOUTH HILL CHURCH (HEMEL HEMPSTEAD)** 

## **(A COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2020** 

## **13. RISK ASSESSMENT** 

The directors actively review the major risks which the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The directors have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks. 

## **14. RESERVES POLICY** 

The directors have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the level of financial commitments held. The directors aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The directors will endeavour not to set aside funds unnecessarily. 

## **15. PUBLIC BENEFIT** 

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 this are provided in the Directors' report. The Director's confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake. 

20 



## **INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS** 

I report to the charity trustees of South Hill Church (Hemel Hempstead) on my examination of the accounts for the year ended 31st December 2020 set out on pages 11 to 20. 

## **Respective responsibilities of trustees and examiner** 

As the charity’s Trustees of South Hill Church (Hemel Hempstead) (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). 

Having satisfied myself that the accounts of  South Hill Church (Hemel Hempstead) are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. Respective responsibilities of Trustees and examiner 

## **Independent examiner's statement** 

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 

1. accounting records were not kept in respect of South Hill Church (Hemel Hempstead) Surrey as required by section 386 of the 2006 Act; or 

2. the accounts do not accord with those records; or 

3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or 

4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

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. 

K Gomes MAAT Independent Examiners Ltd Unit 2,The Broadbridge Business Centre Delling Lane Signed Bosham PO18 8NF Date: 20.9.21 

21