OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-09-30-accounts

REGISTERED COMPANY NUMBER: 07352319 (England and Wales) REGISTERED CHARITY NUMBER: 1138119

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021

FOR

CHURCH GROWTH TRUST LIMITED

Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH

CHURCH GROWTH TRUST LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 30 September 2021

Page
Report of the Trustees 1 to 12
Report of the Independent Auditors 13 to 14
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the Cash Flow Statement 18
Notes to the Financial Statements 19 to 28
Detailed Statement of Financial Activities 29

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 September 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES Objects

The charity's objects are for the public benefit and are specifically restricted to the following:

  1. To permit properties held by the charity to be used by independent churches and Christian missions and evangelical churches as churches, mission halls, church centres, ministers' residences and otherwise for furthering the religious and other charitable work of such independent churches, Christian missions and evangelical churches.

  2. To make grants or loans or give guarantees for the purpose of:

  3. encouraging the planting of independent churches in the United Kingdom;

  4. developing, encouraging and supporting independent churches in the United Kingdom;

  5. assisting Christian missions whose primary purpose is to plant and/or support and/or work with independent churches in the United Kingdom.

  6. Also to apply the income of the charity:

  7. in developing encouraging and supporting independent churches outside the United Kingdom and in assisting Christian missions whose primary purpose is to plant independent churches outside the United Kingdom;

  8. in making grants or loans or giving guarantees to evangelical churches;

  9. in making grants or loans or giving guarantees to Christian missions.

  10. To promote the effectiveness and efficiency of independent churches, evangelical churches and Christian missions by the provision of:

  11. Advice services on property issues, new legislation and good practice in relation to the operation and management of churches and missions;

  12. Seminars, guidance and information on legal, property and charity matters affecting churches and Christian charities

Vision

As the name suggests, Church Growth Trust (“CGT”) aims to offer not only property and trusteeship services but also ways of helping churches to grow. Our current working vision is “We aspire to glorify God by safeguarding for Gospel use independent church properties and making them fit for their God-given purpose”.

In furtherance of the objects CGT permits church congregations to occupy CGT’s properties for a rent that is concessionary to the commercial market and also CGT helps fund extensions and improvements to the Trust’s properties. The Trustees continue to look for new ways of encouraging church growth.

Church Growth Trust supports church planting work through working closely with Counties (Charity Number 264278) and GLO (Charity Number SC007355) and making an annual grant to them, as well as giving free advice to church planters and churches supported by Counties.

The Trustees want to combine the work of ensuring that churches have good governance, with inspiring and equipping them for future growth.

Mission

Church Growth Trust aims to fulfil its vision by:

Page 1

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

OBJECTIVES AND ACTIVITIES Values

At the heart of Church Growth Trust's approach to everything CGT does are four core values of:

Generosity

The heart of God is generous, and Christians are to be imitators of Him. CGT staff and Trustees commit to being generous with their dealings with others, their time, sharing knowledge, their openness to collaborate and their willingness to work with others and point to and promote other organisations. They commit to speaking well of others and of their colleagues. They commit to being ready to give their best and give that bit extra when circumstances require it.

Relationship

The Trustees understand that God prioritises relationship above all else. They and CGT’s staff want to behave in a way that values relationships highly. CGT’s aim is to develop long term, mutual value relationships. It seeks to understand where it fits relationally into the Kingdom of God. The Trustees and staff commit to do all they can to maintain good relationships with others.

Integrity

The Trustees and staff commit to being straightforward and honest with all those they interact with. Their aim is that what they present or say will always be matched by what they are and/or do. They will comply with all current legal and regulatory requirements relevant to their work and strive to promote the spirit, not just the letter, of the legal framework.

Excellence

Everything the Trustee and staff of CGT do they want to do well. If this is the work of the Kingdom, it must be done excellently. They commit, and expect their colleagues to be committed, to high quality work. They seek constantly to improve what they offer and when they make mistakes, they will take responsibility, learn from them and thereby improve. They will develop new processes and systems to improve the efficiency, effectiveness and quality of the services that they provide.

The Bible gives clear guidance that Christians should be above reproach in all they do. Seeking to apply this Biblical imperative the Trustees endeavour to apply the Charity Governance Code, including the updated Code published on 8 December 2020, and the Nolan principles (selflessness, integrity, objectivity, accountability, openness, honesty and leadership). Furthermore, believing that corruption, bribery and unfair actions hamper development and impede progress they insist on integrity in all the Charity's activities.

ACHIEVEMENT AND PERFORMANCE

Principal Activities - review of the last year

In exercising their powers and duties and in making decisions concerning the operations of the charity in the period under review the Trustees have had regard to the public benefit guidance issued by the Charity Commission, including the guidance which relates to charities for the advancement of religion. The following paragraphs explain how the charity’s activities give public benefit, including keeping places of worship open for public worship. The main activities which the charity has undertaken in furtherance of its aims are set out below.

1. Management of Existing Properties

CGT owns for its own charitable purposes 94 properties. CGT continued to manage its properties in line with its objects. This includes over 20 visits to its owned and trusteeship properties over the last year. This is less than would be normal due to Covid-19 restrictions. In almost all cases where the Chief Executive, Property Manager and the Architect have visited the properties, a report on the condition of the property and other issues that have been raised at the visit, is produced and given both to the occupying church (for them to action) and to the Trustees. CGT continue to engage with all its occupying churches by telephone and conference call to deal with issues as they arise and to ensure they meet their legal obligations under their tenancies/leases and general legislation. To help them do so, CGT has produced a booklet “Your guide to running church premises: Legal and compliance issues for churches”. It is also now issuing a “Property Book” for each church to record and keep up to date its documents relating to compliance issues, such as electrical checks, gas checks and asbestos management plans. To ensure that CGT’s own properties are fit for their God-given purpose, CGT carries out assessments of each property to see whether they are fit for purpose. This includes assessing whether they are in good condition, whether they (and the occupying churches) are compliant with legislation and whether the buildings are suitable for modern church use. CGT’s Architect carries out assessments, based on a list of objective criteria, as a desktop exercise, using floor plans of the properties and photographs of the buildings, and results in each property having a score showing the areas where it is not fit for purpose and a sketch layout plan showing an “ideal” building layout. The assessments are carried out for new properties as well and the trustees have agreed targets to work with the occupying churches to bring the scores down. Many of these assessments are resulting in building projects to improve the buildings and discussions are taking place with 12 churches.

Page 2

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

CGT employ a Property Manager, to pro-actively manages CGT’s properties and continue to improve services to the occupying churches. The part-time Property Administrator assists the Property Manager in his role.

Over the year CGT has granted 11 new tenancies to occupying churches, and a further eight letting to new churches. In line with CGT’s objects and general policy all the tenancies have been let at a concessionary rent to the commercial market rate for church properties. The overall concessions from market rent levels for all CGT’s properties are estimated to be over £1.88 million. These lower rents help churches, especially during their early stages of growth to more effectively finance their charitable objects of proclaiming the Gospel, working in their community and general ministry and mission.

CGT continues to pay for the Stewardship Consultancy Helpline on behalf of all its occupying churches, so that they can make use of this facility (legal, property, accounting, insurance, employment and gift aid advice). CGT’s Architect, as well as undertaking consultancy work for church clients, has also helped 26 of CGT’s occupying churches with building projects, in most cases for no charge. This has included a number of feasibility studies to help churches consider how they can expand or adapt the properties. The largest project has been at Roe Green Hall, Kingsbury where an extension was built, using restricted funds set aside for this work.

Roe Green Hall, Kingsbury extension

CGT helped fund repairs to 12 of its own properties. Where the occupying church carried out the work, further rent concessions were given. Where CGT paid for the work, this is either through grants or loans to occupying churches. These included completing the reroofing of Princes Road Church, Buckhurst Hill, dealing with a rotten floor and damp at Jerusalem Chapel, South Elmsall, investigating structural problems at West Shore Baptist Church, Llandudno, investigating settlement problems at Latchett Hall, Woodford Green, new gutters at Franklynn Gospel Hall, Haywards Heath, provision of a portacabin at Bethany Gospel Hall, Crewe, seeking planning permission for a parking area at Maldon Road Chapel, Colchester, and roof and kitchen improvements at Coalville Evangelical Church.

2. New Trusteeships and Ownerships

CGT’s policy is to actively promote its services of holding church properties and to accept the transfer of the ownership or trusteeship of church properties in order to relieve individual trustees of the burden of responsibility, including the difficulty of finding new trustees when current trustees want to retire.

Page 3

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

----- Start of picture text -----
Ilford
----- End of picture text -----

----- Start of picture text -----
Stockton-on-Tees
----- End of picture text -----

----- Start of picture text -----
Wroughton Swindon
Horley Cleethorpes
----- End of picture text -----

When a congregation/assembly closes CGT will ensure, so far as possible, the church property continues to be occupied by an evangelical church as a place of worship and a centre for mission in the neighbourhood. CGT charges concessionary rents to make the properties affordable for occupying churches. The rental income contributes to CGT being able to fund its services to occupying churches, church building projects and church planting work

During the year Grange Road Evangelical Church Ilford, Hebron Hall Stockton-on-Tees Penhill Gospel Hall Swindon, Markham Road Gospel Hall Wroughton, Lee street Church Horley (previously where CGT were acting as custodian trustee) and Hey Street Evangelical Church Cleethorpes were gifted to CGT. CGT was appointed custodian trustee of Kew Evangelical Church, Southport and holding trustees of Blenheim Free Church, Maidenhead.

Page 4

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

The Chief Executive is also in discussion with a number of other churches and Brethren assemblies with regard to gifting properties beneficially to CGT, the appointment of CGT as sole trustee, and the appointment of CGT as custodian or holding trustee. CGT is working closely with the Fellowship Property Trust (the trusteeship services of the Fellowship of Independent Evangelical Churches), which is closing its trusteeship services. At present CGT has had contact with 52 churches and is likely to result in CGT being gifted beneficially seven properties, being appointed sole trustee of two properties and being appointed custodian/holding trustee of 17 properties. St Paul’s Road Gospel Hall Peterborough and Foxhill Evangelical Church Nottingham have been transferred since the financial year end. It is expected that all those where trustees have made a decision to gift to CGT will be completed within the next year.

CGT has employed two researchers in 2019/2020 to identify as many as possible independent evangelical churches in England and Wales, where the churches are not already provided for by other organisations (e.g. the Western Counties and South Wales Evangelization Trust). Just under 2,000 churches have been added to CGT’s database and are now being contacted sensitively and appropriately to make them aware of CGT’s trusteeship and consultancy services.

3. Sales and Transfers

Hamstall Ridware Gospel Hall was sold during the financial year, as it was not possible to find a church to use this very rural building.

4. Grants

In line with CGT’s objects of supporting church planting work, CGT made grants of £19,500 to Counties (Charity Number 264278) and £10,500 to GLO (Charity Number SC007355) for church planting work in the UK. It has also given a grant to the Lord’s Work Trust of £5,056. Four grants, totalling £16,000, from the sale proceeds of Hamstall Ridware Gospel Hall, were made to local evangelical churches to support evangelistic activities.

5. Guarantor

CGT acts as guarantor to a lease taken by Church in the Community (charity number 1159061) to help them continue to use a building for church and community use.

6. Building Projects

A number of CGT’s occupying churches have drawn up plans for building extensions to cope with their growth or provision for disabled access and CGT provides support, including architectural services and funding. These include:

Page 5

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

7. Website and Briefing Papers

CGT continues to upgrade its website, which now allows churches to see more clearly the services it offers and access the website resources more easily. These include five videos on its services and 34 briefing papers to keep its connected churches and property/charity trustees up to date with charity and other legislation. CGT continues to update past briefing papers and is working on four new papers which should be published in the next year.

8. Advice to Churches

In fulfilment of CGT’s objects, it continues to advise churches and trustees on various property and trusteeship matters, with much of this advice being given free of charge at meetings, on the telephone, by email and via its briefing papers on its website. CGT also provides a consultancy service for churches and other charities as many struggle to find suitable sympathetic and cost effective professionals to advise on major projects, purchases or leases or to carry out survey work to help them meet their legislative and trusteeship requirements. CGT is now focussing on helping independent evangelical churches in the following areas:

9. Magazine, Email Bulletin, Monthly Tips and News

In furthering its mission to keep churches and charities up to date with legislation and the services that it provides, CGT produced two “Foundations” magazines over the year, which were sent out by normal post to approximately 1,000 Brethren assemblies, other independent evangelical churches and other interested parties.

These have been received well. CGT also sends its quarterly email bulletin and posts monthly tips and news items on its website. CGT booklet “You Guide to Church Growth Trust’s Property Trusteeship Services – What can Church Growth Trust do for you” has been well received by trustees who need CGT’s help, along with a booklet on CGT’s general services. The “Warehouse or winebar” video, which highlights CGT’s work in recycling otherwise redundant church properties for occupation by new church congregations, is sent to trustees. The booklet “Your guide to running church premises: Legal and compliance issues for churches” was sent to CGT’s connected churches and has received a positive response. Two new booklets on building projects have been produced, partly to help client churches know what to expect from a building project, but mainly for CGT’s occupying churches for when CGT is working with them on building projects.

10. Other Connected Organisations

CGT is corporate trustee of the Church Planting Initiative (CPI) (charity number 1085172) along with CGT’s company secretary, in order to keep it active to receive any future legacies. CGT continues to be involved in organising and sponsoring, with Counties (Charity Number 264278), GLO (Charity Number SC007355), Partnership (Charity Number 802564) and Echoes International (Charity Number 1173851), the national Living the Passion conference, which successfully took place October 2021.

CGT is participating in the Church Support Network (http://churchsupportnetwork.uk/), to explore how different organisations serving the Open Brethren constituency can work more closely together, and has been involved in discussions with other sister organisations and local church leaders to set up a network of independent evangelical churches, as well as considering effective ways of supporting church revitalisation. The Chairs and CEOs of CGT, Counties (Charity Number 264278), GLO (Charity Number SC007355) and Partnership (Charity Number 802564) have met twice this year to consider ways of working more closely and sharing resources.

11. Covid-19

All members of staff have continued to work (from home) during the lockdowns and no one was put on furlough or made redundant. The office has been regularly visited by one member of staff. Although the restrictions have meant physical visits to CGT’s properties have been limited since March 2020, there has been regular contact with the occupying churches and new lettings have taken place. Some additional rent concessions were given to help occupying churches where they needed them. The Trustees have reviewed the effect of the pandemic on the immediate and long-term viability of CGT and believe there will be little impact on its operations and ability to provide the services it currently offers.

Page 6

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

FINANCIAL REVIEW AND RESERVES POLICY

CGT is registered for VAT. This enables CGT to recoup VAT on appropriate major building projects. CGT seeks advice from the auditors and VAT specialists as necessary.

The charity's financial position is satisfactory. Operational activities in the year resulted in a small surplus of £4,953, as the charity was focussed on ensuring owned properties were brought up to the highest standard possible. This surplus was augmented by the gift of six properties valued at £581,386 and reduced by £8,356 property holding fund expenditure and £107,637 restricted funds expenditure giving an overall surplus of £470,346.

During the year the charity supported nine of its occupying churches through the Covid-19 lockdowns by giving £5,950 in rent concessions, which was in addition to £16,000 of concessions given in the previous year.

The value of the freehold properties owned by the charity, which provides a nominally strong financial position, decreased by £992,110 during the year. This decrease was a combination of the net effect of an increase following the gift of six properties and a reduction in valuations to reflect new lettings and external advice on values. The holding of these property assets is fundamental to the charity's objects and, although unrestricted assets, they are held for the long-term purposes of the charity. To reflect this and to distinguish them from fixed assets held for general operational purposes the Board of Trustees has resolved they should be held in a designated Property holding fund.

The Board of Trustees reviews the charity's reserves policy annually at their October meeting and has resolved that the reserve held in the Operating fund should not be less than £300,000, which is the same as the previous year. The figure is broken down as follows:

If at any time the Operating fund is projected to reduce to less than £300,000, only urgent and necessary works will be undertaken.

This policy is reviewed annually at the October Trustees’ meeting. During the financial year, CGT supported nine of its occupying church through the Covid-19 lockdowns by giving further rent concessions of £5,950, in addition to a further £16,000 of concessions in the previous year. Although a larger allowance had been made by the Trustees and if necessary for this support to come from reserves, with other savings CGT were able to make, no reserves were used.

ASSETS HELD ON BEHALF OF OTHERS

Church Growth Trust acts as Sole Trustee of the following Trusts, which hold properties or funds and in seven cases both:

Barton Hall Trust Kings Road Chapel Rushall Trust
Bermondsey Gospel Hall Trust Loampit Gospel Hall Trust
Chadwell Evangelical Church Trust Poulner Baptist Chapel Trust
Chainhurst Gospel Hall Trust Rock Dene Chapel Manse Trust
Clapton Hall Trust Shirley Hall Trust
Craigdale Gospel Hall Trust Shrewsbury Chapel Redhill Trust
Ebenezer Baptist Chapel, Chester Skellow Evangelical Church Trust
Emerson Park Evangelical Church Trust Toftwood Gospel Hall Trust
Emmanuel Chapel, Ditchling United Mission Manse Trust
Hebron Hall Tipton Trust Wilmington Christian Fellowship, Dartford

Although CGT holds the legal title to all properties within these trusts, it has no beneficial interest in those properties and they are not incorporated in the charity’s financial statements.

Page 7

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

CGT is Custodian Trustee of the following properties, being mostly church buildings which are used for Christian worship:

Acton, Berrymead Evangelical Church Dudley, Hellier Street Gospel Hall
Banstead Baptist Church East Hanningfield, Bethel Church
Barnstaple, Grosvenor Church Edmonton, Croyland Evangelical Church
Bedford, Rutland Road Church Fishersgate, Lighthouse Community Church
Boyton Mission, Woodbridge Hereford, Priors Frome Chapel
Bradfield St George Gospel Hall Orpington, Coppice Mission Church
Braintree Evangelical Church Salisbury, Emmanuel Church and Grove House
Brentwood Vineyard Church Southport, Kew Evangelical Church
Burston Chapel, Diss Sutton, Chiltern Church and house
Camberwell, Victoria Hall Watford, Harebreaks Gospel Hall
Dagenham Community Church Woodford Bridge, Canfield Chapel
Dereham, 29 & 30 Eckling Grange

CGT’s involvement as Custodian Trustee is generally limited to holding legal title to each property and because CGT has no beneficial interest in those properties they are not incorporated in the charity’s financial statements.

PLANS FOR 2021/2022

1. Management of Properties

CGT will continue to look at ways of improving its pro-active management of its properties, including continuing its policy of reviewing risks, visiting each property every year or every other year, producing reports on each property visit and keeping regular contact with the occupying churches. It will also continue to provide the Stewardship’s Consultancy Helpline for each of the occupying churches. CGT’s Property Manager and Property Administrator are improving CGT’s proactive management of its properties. This is enabling CGT to deal more effectively with the increased number of properties coming to CGT and to provide an even better service to the occupying churches.

Their work includes helping churches deal with major repairs, ensuring the churches are compliant with legislation and discussing building projects to improve the buildings.

2. Projects

The Trustees anticipate being involved in a number of building projects over the next few years including the following:

Page 8

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

3. New Properties

The trustees of St Paul’s Road Gospel Hall Peterborough and Foxhill Evangelical Church Nottingham have gifted their properties since the year end. Trustees of Milland Evangelical Church, Liphook, Chorley Gospel Hall and West Street Gospel Hall, Hucknall have also agreed to gifting their properties to CGT. Stewards Company Ltd (Charity Number 234558) have indicated that they would like to gift Northumberland Hall Margate and International Christian Fellowship, Burnt Oak to CGT, as well as appointing CGT as sole trustee of Cherith Christian Fellowship, High Wycombe. The Fellowship Property Trust (previously FIEC Ltd) (Charity Number 251395) have already gifted two properties to CGT and appointed CGT as holding trustee for one church. CGT has had contact with 52 churches and this is likely to result in CGT being gifted beneficially seven properties, being appointed sole trustee of two properties and being appointed custodian/holding trustee of 17 properties. CGT is following up interest from 12 further groups of property trustees, who have expressed an interest in CGT’s trusteeship services.

4. Church and Charity Consultancy Work

There is a growing need for property consultancy services at reasonable rates for churches and charities. Advice on lease and charity matters will continue to be provided by the Chief Executive and the Property Manager. CGT’s Architect continues to provide architectural services, mainly to independent evangelical churches.

5. Advising Church Trustees & Model CIO

CGT will continue in line with its objects to give best practical advice on legislation and church governance to church and property trustees through meetings, conversations, briefing papers and working with other organisations such as Stewardship, Partnership and specialist solicitors, surveyors, architects and others with technical expertise. In conjunction with Partnership and the Western Counties and South Wales Evangelization Trust, CGT has produced a Model CIO for elder-led churches and this is available free of charge on CGT’s website.

6. Other Organisations

CGT anticipates making grants to Counties and GLO for their church planting work in the year. CGT will continue its involvement with the Church Support Network, church revitalisation cooperation (with Partnership UK, Counties and GLO) and future Living the Passion conferences. The Trustees anticipate working closely with Stewardship (Charity Number 234714) on joint briefing papers and as the property and charity advisor (on church property trusts) on Stewardship’s Consultancy Helpline. CGT will also work closely with specialist charity solicitors on trust matters for new church congregations and co-operating with other specialist advisors in producing relevant and up to date briefing papers.

7. Investments

Church Growth Trust has the power to deposit any moneys, deed, securities or investments with any banker or any person firm or corporation anywhere for safe custody or receipt of dividends or other income and to pay out of the income of the charity any charges payable for such deposit and custody. In order to maximum the return, to benefit from depositor protection and to maintain flexibility of access to its funds, CGT places funds in a range of charity deposit accounts, specifically agreed by the Trustees. The current policy is to retain in its current account £100,000 to cover three months cash flow and to hold other funds in various savings accounts to obtain the best rate of interest, but to maintain flexibility on being able to withdraw the funds for various anticipated building projects.

8. Magazine, Email Bulletins and Social Media

The Trustees anticipate sending out two Foundations magazines in the year and continuing with the quarterly email bulletins, sending these to connected churches and clients to keep them informed of new legislation and provide them with practical advice on property and charity matters. CGT is also intending to send its Foundations magazine to churches on its database from the recent research into independent evangelical churches. CGT is also investigating how to best use social media to build relations with and between its occupying churches and clients.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity was established under a Memorandum of Association which establishes the objects and the powers of the charity and is governed under its Articles of Association. All Directors of the Company are also Trustees of the charity, and there are no other trustees. The Trustees of Church Growth Trust Limited have the power by a two thirds majority to appoint additional Trustees. There is no formal recruitment practice, but the Trustees and the Chief Executive continue to look for new Trustees who will be able to add value to the existing team of Trustees and whose skills and experience would contribute to the development of the organisation.

Prospective Trustees are given the opportunity to examine the organisation extensively and to attend two trustee meetings before they, and other Trustees, reach a conclusion as to the appropriateness of the appointment. New Trustees are provided with the opportunity to meet other Trustees and the Chief Executive. Any new Trustee is given the CGT Trustee’s Handbook, which is regularly updated and a digital version of this is currently being considered by the Trustees.

Page 9

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

The Directors, who are the Trustees, have met together five times during the financial year to discuss and make decisions concerning the charity’s affairs, including one meeting in person and four by conference call (due to Covid-19 restrictions). A number of Boardcommittees, with clear delegated authority, deal with specific matters outside of and report to the main Board Meetings. These include Finance, Operations, Legal, Acquisitions & Lettings, Buildings and Nominations Committees. The briefs and effectiveness of the Board-committees were reviewed during the year and are reviewed regularly.

John Quinlan, a Chartered Architect with extensive experience of church buildings has been retained as an external non-executive advisor on CGT’s Buildings Committee. Ian Gardner, a retired charity solicitor, continues to help CGT by remaining part of the Legal Committee of CGT. Paul Withams, one of the trustees, has provided a considerable amount of time on a voluntary basis to help with IT issues in CGT’s office. Their contribution, along with all the Trustees, is appreciated.

The management of the charity is delegated to the Chief Executive, who is also the Company Secretary. He is employed on a full-time basis. He has experience of property management, charity law, church governance and church leadership. The Operations Director directs and coordinates the internal structure of CGT to ensure an efficient working environment and is responsible for developing new and improving operating methods, service provision and delivery. The Property Manager is

responsible for managing CGT’s properties and building good relations with the occupying churches. The part-time Property Administrator assists him and monitors CGT’s fit for purpose strategic objectives. The Architect is full-time and is employed to offer independent evangelical churches a wide range of property and architectural services. This includes providing architectural and survey services to CGT’s occupying churches, often free of charge. A full-time Administrator is employed to run the office and provide bookkeeping services. She is assisted by a part-time cleaner and administrative assistant.

RE-ELECTION OF BOARD OF TRUSTEES

Under the Articles of the Charity, one third of the current members of the Board retire and, being eligible, offer themselves for reelection at each annual general meeting. The Trustees to retire by rotation shall be those who have been longest in office since their last appointment.

The Charity may by ordinary resolution appoint a person who is willing to act to be a Trustee and determine the rotation in which any additional Trustees are to retire. No person other than a Trustee retiring by rotation may be appointed a Trustee at any general meeting unless he or she is recommended for election by the Trustees with the appropriate notice given. The Trustee must show his or her willingness to be appointed and he or she subscribes to the Statement of Beliefs. A Trustee appointed by a resolution of the other Trustees must retire at the next annual general meeting and must not be taken into account in determining the Trustees who are to retire by rotation.

TRUSTEE TRAINING

Trustees are encouraged to read the Charity Commission guidance on responsibilities of a trustee and specific training for Trustees has been given by Trustees attending trustee training seminars/conferences and reading specific trustee-related guidance. A review of CGT’s performance in relation to the Charity Governance Code and an assessment of the Board’s effectiveness was carried out in April 2020. Media and crisis training was provided in November 2020. Additional training was reviewed during the year.

RISK REVIEW

A formal and systematic approach to identification and management of risks has been introduced and will continue to be fully reviewed and updated annually. A review of CGT’s operations was carried out to ensure that these are provided as efficiently as possible and to ensure that staff are not over-burdened. Keyman insurance for the Chief Executive, who has a key role in the charity, is in place to reduce CGT’s exposure should he die suddenly.

In line with the Charity Commission's guidance on reporting serious incidents, the Trustees declare that during the reporting period there were no serious incidents that they have failed to bring to the Commission's attention.

Page 10

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

KEY MANAGEMENT REMUNERATION POLICY

Salaries for key management posts are set with reference to the technical skills and experience required to fulfil the job duties, the comparative pay in the Christian charitable sector, and a differential to the salary of the Chief Executive (CE). The Chief Executive’s skill set and leadership capabilities are essential for CGT achieving its mission aims. The CE’s pay terms are set by the Trustees and take into account the responsibilities and expectations from the CE; the technical, management and promotion experience and expertise required; and the comparable salary for chief executives of Christian charities.

Recognising that CGT should be different from the commercial market on the pay ratio from the lowest salary level and that equity should characterise a Christian charity and CGT, the remuneration package of the Chief Executive is not to exceed a ratio of 4:1 to the lowest remuneration package of a clerical staff member at an annual full-time equivalent.

FUNDRAISING

CGT does not engage in fundraising. It always gives opportunities for people receiving mailings to unsubscribe. CGT has a privacy policy which includes how it aims to be GDPR compliant. This is available on CGT’s website.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

07352319 (England and Wales)

Registered Charity number 1138119

Registered office

The Barn, Baines Lane Seaton, Oakham Rutland LE15 9HP

Website

www.churchgrowth.org.uk

Trustees Neil J Walker Chairman Nigel E Allen Richard E Canham David Foster Trevor James FCA DChA Vice Chairman Richard Jones MRICS Paul Withams

Company Secretary (and Chief Executive)

A M Giles Arnold MRICS

Auditors

Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH

Bankers

CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

Church Growth Trust Key Management Personnel

A M Giles Arnold MRICS – Chief Executive Garryl Willis – Operations Director John Duffield MRICS – Property Manager

Page 11

CHURCH GROWTH TRUST LIMITED

REPORT OF THE TRUSTEES for the Year Ended 30 September 2021

REFERENCE AND ADMINISTRATIVE DETAILS Solicitors

Ellis-Fermor & Negus 2 Devonshire Avenue Beeston Nottingham NG9 1BS

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Brindley Millen Ltd, will be stepping down at the forthcoming Annual General Meeting.

May 10, 2022

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

.............................................................................. N J Walker - Trustee

Page 12

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CHURCH GROWTH TRUST LIMITED

Opinion

We have audited the financial statements of Church Growth Trust Limited (the 'charitable company') for the year ended 30 September 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Page 13

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CHURCH GROWTH TRUST LIMITED

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are those covered by the Statement of Recommended Practice for Charities (SORP 2019) and the Charities Act 2011. We assessed the risk of material misstatement in respect of fraud by making enquiries of management and trustees and by testing the implementation of accounting controls in place.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above by making enquiries with key personnel and reviewing relevant documentation such as minutes of Trustee meetings and correspondence with regulatory bodies. We considered the risk of fraud through management override by incorporation testing of journal entries and reviewing any requirements to meet performance targets. We also considered, and tested for, the possibility of unauthorised payments to related parties.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

mwbrindley

mwbrindley (May 13, 2022 14:45 GMT+1)

Maurice Brindley BSc FCA (Senior Statutory Auditor) for and on behalf of Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH May 13, 2022 Date: .............................................

Hewitt Warin is a trading name of Brindley Millen Ltd

Page 14

CHURCH GROWTH TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 30 September 2021

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS
FROM
Donations and legacies
2
310
Charitable activities
4
Property letting and upkeep
548,933
Professional Services
19,096
Investment income
3
5,336
Total
573,675
EXPENDITURE ON
Charitable activities
5
Property letting and upkeep
162,224
Direct services to churches
211,599
Office and support
159,543
Grants
35,356
Total
568,722
NET
INCOME/(EXPENDITURE)
4,953
Transfers between funds
18
150,438
Other recognised gains/(losses)
Gains/(losses) on revaluation of
fixed assets
(94,719)
Net movement in funds
60,672
RECONCILIATION OF FUNDS
Total funds brought forward
447,848
TOTAL FUNDS CARRIED
FORWARD
508,520		 Property

holding
fund
£
581,386
-
-
-
581,386
8,356
-
-
-
8,356
573,030
(137,964)
(1,385,330)
(950,264)
20,884,932
19,934,668		 Restricted
funds
£
-
-
-
-
-
107,637
-
-
-
107,637
(107,637)
(12,474)
(18,167)
(138,278)
184,880
46,602		 30.9.21

Total
funds
£
581,696
548,933
19,096
5,336
1,155,061
278,217
211,599
159,543
35,356
684,715
470,346
-
(1,498,216)
(1,027,870)
21,517,660
20,489,790		 30.9.20
Total
funds
£
408,070
491,760
19,961
5,943
925,734
143,230
199,758
160,718
52,191
555,897
369,837
-
2,075,875
2,445,712
19,071,948
21,517,660

The notes form part of these financial statements

Page 15

CHURCH GROWTH TRUST LIMITED (REGISTERED NUMBER: 07352319)

BALANCE SHEET 30 September 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
11
542
Investment property
12
-
542
CURRENT ASSETS
Debtors
13
78,385
Cash at bank
449,414
527,799
CREDITORS
Amounts falling due within one year 14
(19,821)
NET CURRENT ASSETS
507,978
TOTAL ASSETS LESS
CURRENT LIABILITIES
508,520
CREDITORS
Amounts falling due after more than
one year
15
-
NET ASSETS
508,520
FUNDS
18
Unrestricted funds:
Operating fund
Property holding fund
Restricted funds:
Roe Green Hall
Wednesbury Property fund
TOTAL FUNDS		 Property

holding
fund
£
-
20,277,416
20,277,416
-
-
-
(23,779)
(23,779)
20,253,637
(318,969)
19,934,668		 Restricted
funds
£
-
96,134
96,134
4,750
8,192
12,942
-
12,942
109,076
(62,474)
46,602		 30.9.21

Total
funds
£
542
20,373,550
20,374,092
83,135
457,606
540,741
(43,600)
497,141
20,871,233
(381,443)
20,489,790
508,520
19,934,668
20,443,188
3,124
43,478
46,602
20,489,790		 30.9.20
Total
funds
£
678
21,365,660
21,366,338
83,705
497,867
581,572
(38,611)
542,961
21,909,299
(391,639)
21,517,660
447,848
20,884,932
21,332,780
110,761
74,119
184,880
21,517,660

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

May 10, 2022

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. N J Walker - Trustee

The notes form part of these financial statements

Page 16

CHURCH GROWTH TRUST LIMITED

CASH FLOW STATEMENT for the Year Ended 30 September 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash used in operating activities
Cash flows from investing activities
Sale of investment property
Interest received
Net cash provided by investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 30.9.21
£
(195,861)
(8,530)
(204,391)
170,000
5,336
175,336
-
(11,206)
(11,206)
(40,261)
497,867
457,606		 30.9.20
£
(89,771)
(10,434)
(100,205)
-
5,943
5,943
50,000
(22,514)
27,486
(66,776)
564,643
497,867

The notes form part of these financial statements

Page 17

CHURCH GROWTH TRUST LIMITED

NOTES TO THE CASH FLOW STATEMENT for the Year Ended 30 September 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest received
Interest paid
Non-cash income - rent and lease premium
Non-cash income - gifts of properties
Decrease in debtors
Increase in creditors
Net cash used in operations		 30.9.21
£
470,346
136
(5,336)
8,530
(94,719)
(581,387)
570
5,999
(195,861)		 30.9.20
£
369,837
170
(5,943)
10,434
(103,683)
(407,640)
39,629
7,425
(89,771)

2.

ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.20 Cash flow At 30.9.21
£ £ £
Net cash
Cash at bank 497,867 (40,261) 457,606
497,867 (40,261) 457,606
Debt
Debts falling due within 1 year (24,789) 1,010 (23,779)
Debts falling due after 1 year (391,639) 10,196 (381,443)
(416,428) 11,206 (405,222)
Total 81,439 (29,055) 52,384

The notes form part of these financial statements

Page 18

CHURCH GROWTH TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 30 September 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements and assessment of going concern

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

The financial statements are presented in sterling (£).

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Critical accounting judgements and key sources of estimation uncertainty

In preparing financial statements it is necessary to make certain judgements, estimated and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements.

Useful economic life of tangible fixed assets:

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 20% on reducing balance

Fixed assets costing £1,000 or more are capitalised over their estimated useful lives. Assets costing less than £1,000 are written off in the year of purchase.

No depreciation is charged in respect of freehold land and buildings as the residual value of the property after its estimated useful life is anticipated to be at least the carrying value of the property show in the financial statements.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash, current bank accounts, deposit bank accounts and bonds maturing within twelve months or less.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount.

continued...

Page 19

CHURCH GROWTH TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 30 September 2021

1. ACCOUNTING POLICIES - continued

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Valuation of property

Property assets are valued internally by Giles Arnold, the Chief Executive and John Duffield, the Property Manager, who are Chartered Surveyors. They have a detailed knowledge of all the properties and experience of the church property market across the UK. The valuations are based on the estimated market rent for each property (rent per square foot multiplied by net lettable area) and divides the rental figure by a yield (a general term used to describe return on capital with an investment valuation), which is based on the type of property and quality of tenant, to find the capital value. This is then adjusted in each case for the type of letting arrangements, including allowances for any discounted rent paid now and potential increases in rent in the future. Comparable properties and any special circumstances for each property are also taken into account. Depreciation is not provided on rental properties, as their value is assessed and adjusted each financial year. As requested by the auditors CGT has arranged for an independent RICS valuer to check the values and methods of valuation used and this report has validated the value levels in the accounts.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Funds held for other organisations

Church Growth Trust hold funds on behalf of 21 other organisations. The charity has no legal rights over the monies, which are held in their bank accounts.

The amounts are excluded from the cash balance on the balance sheet in accordance with the SORP.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially settled at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2. DONATIONS AND LEGACIES

Gifts
Gifts of property
3.
INVESTMENT INCOME
Deposit account interest		 30.9.21
£
310
581,386
581,696
30.9.21
£
5,336		 30.9.20
£
430
407,640
408,070
30.9.20
£
5,943

continued...

Page 20

CHURCH GROWTH TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 30 September 2021

4. INCOME FROM CHARITABLE ACTIVITIES

INCOME FROM CHARITABLE ACTIVITIES
Activity
Rents
Property letting and upkeep
Recharged expenses
Property letting and upkeep
Professional work
Property letting and upkeep
Trusteeship Fees
Property letting and upkeep
Other income
Property letting and upkeep
Recharged expenses
Professional Services
Professional work
Professional Services		 30.9.21
£
481,651
40,296
575
10,411
16,000
782
18,314
568,029		 30.9.20
£
414,674
50,275
525
10,286
16,000
1,061
18,900
511,721

Included in rents above is £78,719 of rent concessions (2020 £87,683) which have been agreed with tenants.

5. CHARITABLE ACTIVITIES COSTS

Property letting and upkeep
Direct services to churches
Office and support
Grants
SUPPORT COSTS
Governance costs
Trustees' expenses
Auditors' remuneration
Accountancy and legal fees
Total governance costs
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets		 Direct
Costs
£
278,217
211,374
153,727
35,356
678,674		 Support
costs (see
note 6)
£
-
225
5,816
-
6,041
30.9.20
£
883
2,520
2,638
6,041
30.9.21
£
2,520
136		 Totals
£
278,217
211,599
159,543
35,356
684,715
30.9.20
£
1,569
2,520
1,912
6,001
30.9.20
£
2,520
169

6.

7. NET INCOME/(EXPENDITURE)

continued...

Page 21

CHURCH GROWTH TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 30 September 2021

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 September 2021 nor for the year ended 30 September 2020.

Trustees' expenses

Trustees' expenses
30.9.21 30.9.20
£ £
Trustees' expenses 883 1,569

Trustees' expenses comprise travel and accommodation costs reimbursed to or paid on behalf of seven trustees for attending trustees' meetings, including board committee meetings. Trustee expense claims are subject to the charity's internal controls and are supported by appropriate documentary evidence.

Due to the global pandemic many meetings were held online resulting in a reduction in costs in the year.

Key management personnel

The charity consider its key management personnel to comprise the Trustees, Chief Executive, Operations Director and Property Manager. Total Key Personnel remuneration for the year was £203,650 including employers national insurance and pension (2020: £202,340). Additionally vehicles were leased for two members of key personnel for the total sum of £6,076 (2020: £7,101), life assurance was paid of £1,797 (2020: £1,444) and key person insurance of £250 (2020: £250).

9. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Total employees		 30.9.21
£
254,408
24,206
24,544
303,158
30.9.21
6		 30.9.20
£
247,030
21,792
22,885
291,707
30.9.20
6

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

30.9.21 30.9.20
£70,001 - £80,000 1 1

10. 30 SEPTEMBER 2020 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Property letting and upkeep
Professional Services
Investment income
Total
EXPENDITURE ON
Charitable activities
Property letting and upkeep		 Unrestricted
funds
£
430
490,041
19,961
3,840
514,272
126,510		 Property

holding
fund
£
407,640
-
-
-
407,640
10,123		 Restricted
funds
£
-
1,719
-
2,103
3,822
6,597
Total
funds
£
408,070
491,760
19,961
5,943
925,734
143,230

continued...

Page 22

CHURCH GROWTH TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 30 September 2021

10. 30 SEPTEMBER 2020 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

Direct services to churches
Office and support
Grants
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
11.
TANGIBLE FIXED ASSETS
COST
At 1 October 2020 and 30 September 2021
DEPRECIATION
At 1 October 2020
Charge for year
At 30 September 2021
NET BOOK VALUE
At 30 September 2021
At 30 September 2020		 Unrestricted
funds
£
199,758
160,718
52,191
539,177
(24,905)
6,988
(103,683)
(121,600)
569,448
447,848		 Property

holding
fund
£
-
-
-
10,123
397,517
(6,988)
2,179,558
2,570,087
18,314,845
20,884,932		 Restricted
funds
£
-
-
-
6,597
(2,775)
-
-
(2,775)
187,655
184,880
Total
funds
£
199,758
160,718
52,191
555,897
369,837
-
2,075,875
2,445,712
19,071,948
21,517,660
Fixtures
and
fittings
£
4,695
4,017
136
4,153
542
678

continued...

Page 23

CHURCH GROWTH TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 30 September 2021

12. INVESTMENT PROPERTY

FAIR VALUE
At 1 October 2020
Additions
Disposals
Revaluation
At 30 September 2021
NET BOOK VALUE
At 30 September 2021
At 30 September 2020		 £
21,365,660
581,386
(170,000)
(1,403,496)
20,373,550
20,373,550
21,365,660

On 13th August 2012 a legal charge in favour of Stewardship Services (UKET) Ltd was created by Church Growth Trust. This is secured on the freehold property at Priory Terrace Gospel Hall, Leamington Spa in the sum of £240,000 together with all monies due or to become due from the managing trustees of Christchurch Leamington. The occupiers of the property, Christchurch Leamington, are responsible for servicing the mortgage and there are personal guarantees from two trustees of Christchurch Leamington in favour of Stewardship Services (UKET) Ltd. As at 30 September 2021 the balance is £23,557.

Fair value at 30 September 2021 is represented by:

Valuation brought forward
Re-valuation in 2021
13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.9.21
£
Trade debtors
12,307
Other debtors
68,917
Prepayments
1,911
83,135
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.9.21
£
Bank loans and overdrafts (see note 16)
23,779
Trade creditors
4,798
VAT
1,521
Other creditors
11,102
Accrued expenses
2,400
43,600		 £
21,777,046
(1,403,496)
20,373,550
30.9.20
£
12,825
70,151
729
83,705
30.9.20
£
24,789
1,313
1,692
7,467
3,350
38,611

continued...

Page 24

CHURCH GROWTH TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 30 September 2021

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 16)
Other loans (see note 16)
16.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans - more that 5 years
Other loans – more that 5 years
17.
SECURED DEBTS
The following secured debts are included within creditors:
Bank loans
Other loans		 30.9.21
£
318,969
62,474
381,443
30.9.21
£
23,779
23,779
71,338
223,852
62,474
286,326
30.9.21
£
342,748
62,474
405,222		 30.9.20
£
341,639
50,000
391,639
30.9.20
£
24,789
23,939
75,489
242,211
50,000
292,211
30.9.20
£
366,428
50,000
416,428

During 2014 CAF Bank granted to Church Growth Trust a mortgage of £600,000 and a first fixed legal charge was created. This is secured on the freehold property known as Miracle House, Silva Way, Wickford, Essex and the freehold property known as Bignold Hall, Forest Gate. The balance on the mortgage as at 30 September 2021 is £342,748.

During 2017 J W Laing Trust granted to Church Growth Trust a loan facility up to the value of £500,000, to be drawn down as needed. The agreement is secured against the freehold property Roe Green Hall, Kingsbury. The outstanding balance as at 30 September 2021 is £62,474.

Page 25

continued...

CHURCH GROWTH TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 30 September 2021

18. MOVEMENT IN FUNDS

Unrestricted funds
Operating fund
Property holding fund
Restricted funds
Roe Green Hall
Wednesbury Property fund
TOTAL FUNDS
Net movement in funds, included in the above are a
Unrestricted funds
Operating fund
Property holding fund
Restricted funds
Roe Green Hall
Wednesbury Property fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
Operating fund
Property holding fund
Restricted funds
Roe Green Hall
Wednesbury Property fund
TOTAL FUNDS		 At
1.10.20
£
447,848
20,884,932
21,332,780
110,761
74,119
184,880
21,517,660
s follows:
Incoming
resources
£
573,675
581,386
1,155,061
-
-
-
1,155,061
At
1.10.19
£
569,448
18,314,845
18,884,293
112,830
74,825
187,655
19,071,948		 Net
movement
in funds
£
(89,766)
(812,300)
(902,066)
(107,637)
(18,167)
(125,804)
(1,027,870)
Resources
expended
£
(568,722)
(8,356)
(577,078)
(107,637)
-
(107,637)
(684,715)
Net
movement
in funds
£
(128,588)
2,577,075
2,448,487
(2,069)
(706)
(2,775)
2,445,712		 Transfers
between
funds
£
150,438
(137,964)
12,474
-
(12,474)
(12,474)
-
Gains and
losses
£
(94,719)
(1,385,330)
(1,480,049)
-
(18,167)
(18,167)
(1,498,216)
Transfers
between
funds
£
6,988
(6,988)
-
-
-
-
-		 At
30.9.21
£
508,520
19,934,668
20,443,188
3,124
43,478
46,602
20,489,790
Movement
in funds
£
(89,766)
(812,300)
(902,066)
(107,637)
(18,167)
(125,804)
(1,027,870)
At
30.9.20
£
447,848
20,884,932
21,332,780
110,761
74,119
184,880
21,517,660

Page 26

continued...

CHURCH GROWTH TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 30 September 2021

18. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
Operating fund
Property holding fund
Restricted funds
Roe Green Hall
Wednesbury Property fund
TOTAL FUNDS		 Incoming
resources
£
514,272
407,640
921,912
2,072
1,750
3,822
925,734		 Resources
expended
£
(539,177)
(10,123)
(549,300)
(4,141)
(2,456)
(6,597)
(555,897)		 Gains and
losses
£
(103,683)
2,179,558
2,075,875
-
-
-
2,075,875		 Movement
in funds
£
(128,588)
2,577,075
2,448,487
(2,069)
(706)
(2,775)
2,445,712

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
Operating fund
Property holding fund
Restricted funds
Roe Green Hall
Wednesbury Property fund
TOTAL FUNDS		 At
1.10.19
£
569,448
18,314,845
18,884,293
112,830
74,825
187,655
19,071,948		 Net
movement
in funds
£
(218,354)
1,764,775
1,546,421
(109,706)
(18,873)
(128,579)
1,417,842		 Transfers

between
funds
£
157,426
(144,952)
12,474
-
(12,474)
(12,474)
-		 At
30.9.21
£
508,520
19,934,668
20,443,188
3,124
43,478
46,602
20,489,790

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
Operating fund
Property holding fund
Restricted funds
Roe Green Hall
Wednesbury Property fund
TOTAL FUNDS		 Incoming
resources
£
1,087,947
989,026
2,076,973
2,072
1,750
3,822
2,080,795		 Resources
expended
£
(1,107,899)
(18,479)
(1,126,378)
(111,778)
(2,456)
(114,234)
(1,240,612)		 Gains and
losses
£
(198,402)
794,228
595,826
-
(18,167)
(18,167)
577,659		 Movement
in funds
£
(218,354)
1,764,775
1,546,421
(109,706)
(18,873)
(128,579)
1,417,842

Fixed asset fund - represents the value of properties held by the charity in pursuance of its charitable activities, less any outstanding mortgage liabilities on said properties.

Roe Green Hall - represents monies given to Church Growth Trust for building works on Roe Green Hall, Kingsbury.

Wednesbury Property fund - represents the value of the Gospel Hall on Price Road, Wednesbury, all monies are restricted to the advancement of the Gospel in the Wednesbury area only.

continued...

Page 27

CHURCH GROWTH TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 30 September 2021

18. MOVEMENT IN FUNDS – continued

Transfers between funds

During the year a transfer was made from Wednesbury Property fund of £12,474 to the Operating fund in order to show movement of the loan balances in respect of this property.

A transfer of £32,036 was made from the Operating fund to the Property Holding fund to show the movement of the mortgage balances in respect of properties held. In addition to this the gain from the sale of a property during the year of £170,000 was transferred to the Operating fund from the Property Holding fund.

19. RELATED PARTY DISCLOSURES

During the year the charity gave a grant of £Nil (2020: £2,000) to Partnership (UK) Ltd (Charity no. 802564) One trustee; Neil Walker is a trustee of Partnership.

During the year the charity gave a grant of £19,800 (2020: £19,500) to Counties (Charity no. 264278) One trustee; Mr Richard Canham is a trustee of Counties.

The named individuals took no part in the discussions or decision making regarding these grants.

20. FUNDS HELD ON BEHALF OF OTHER ORGANISATIONS

The charity holds £132,222 in its bank account on behalf of other charities, it has no legal right over these funds. As per the Statement of Recommended Practice these amounts have not been shown on the balance sheet.

Page 28

CHURCH GROWTH TRUST LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 30 September 2021

INCOME AND ENDOWMENTS
Donations and legacies
Gifts
Gifts of property
Investment income
Deposit account interest
Charitable activities
Rents
Recharged expenses
Professional work
Trusteeship Fees
Other income
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Social security
Pensions
Training & recruitment
Gifts and donations
Insurance (PI and general)
Direct expenditure on properties
Property Insurance
Professional Fees
Travel and subsistence
Advertising
Office - General
Unrecoverable VAT
Office Premises - Rent
Office Premises - Costs
Bad debts
Fixtures and fitting depreciation
Bank charges
Mortgage interest
Support costs
Governance costs
Trustees' expenses
Auditors' remuneration
Accountancy and legal fees
Total resources expended
Net income		 30.9.21
£
310
581,386
581,696
5,336
481,651
41,078
18,889
10,411
16,000
568,029
1,155,061
254,408
24,206
24,544
2,205
35,356
3,194
182,178
40,514
46,064
10,395
11,989
11,488
7,915
14,146
1,406
-
136
174
8,356
678,674
883
2,520
2,638
6,041
684,715
470,346		 30.9.20
£
430
407,640
408,070
5,943
414,674
51,336
19,425
10,286
16,000
511,721
925,734
247,030
21,792
22,885
2,275
52,191
3,149
52,920
50,528
25,982
14,737
9,947
12,330
7,472
13,583
1,851
620
170
311
10,123
549,896
1,569
2,520
1,912
6,001
555,897
369,837

This page does not form part of the statutory financial statements

Page 29

Church Growth Trust - final accounts approval

Final Audit Report 2022-05-13

Created: 2022-05-09 By: Hewitt Warin (luisa.hewitt@hewittwarin.com) Status: Signed Transaction ID: CBJCHBCAABAAv5F5Q5b7txi9eklbMKdI3daR488ZiRC3

"Church Growth Trust - final accounts approval" History

Document created by Hewitt Warin (luisa.hewitt@hewittwarin.com)

2022-05-09 - 09:44:50 GMT- IP address: 82.69.68.83

Document emailed to Neil Walker (neil.walker@churchgrowth.org.uk) for signature

2022-05-09 - 09:46:44 GMT

Email viewed by Neil Walker (neil.walker@churchgrowth.org.uk)

2022-05-09 - 10:13:22 GMT- IP address: 213.205.194.254

Document e-signed by Neil Walker (neil.walker@churchgrowth.org.uk)

Signature Date: 2022-05-10 - 11:55:08 GMT - Time Source: server- IP address: 213.205.194.254

Document emailed to mwbrindley (mwb@brindleyjacob.co.uk) for signature

2022-05-10 - 11:55:10 GMT

Email viewed by mwbrindley (mwb@brindleyjacob.co.uk)

2022-05-13 - 13:45:10 GMT- IP address: 80.44.89.94

Document e-signed by mwbrindley (mwb@brindleyjacob.co.uk)

Signature Date: 2022-05-13 - 13:45:48 GMT - Time Source: server- IP address: 80.44.89.94

Agreement completed.

2022-05-13 - 13:45:48 GMT