## COVENANT OF PEACE
## **Limited by Guarantee**
## **Trustees Report**
## **and Financial Statements**
## **for the year ended 31[st] December 2020**
**Registered Charity Number 1139137 Registered Company Number 7331258**
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
##
|Contents||
|---|---|
|Reference and administrative details|02|
|Report of the trustees|03|
|Report of The Auditors|06|
|Statement of financial activities|07|
|Charity balance sheet|08|
|Accounting policies|09|
|Notes to the financial statements|12|
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Covenant of Peace Vision – Building Character, Making Disciples and Transforming Lifestyles.**
A multicultural church made up of spiritually mature people of all ages, living out their God-given purpose; a group of people who are passionate about social justice and committed to the spiritual transformation of society through the preaching of the complete message of Christ.
## **Trustees (and Directors)**
Pastor Akinola Soroye
Mr Gboyega Falomo
## **Mike Tiamiyu**
## **Registered and Principal Office**
487, Blackfen Road
Blackfen Sidcup DA15 9NP
## **Charity registered number**
## **1139137**
## **Company registered number**
## **7331258**
## **Accountants**
PPS Accountants Suite 10 3rd Floor
St Luke's Building 85 Tarling Road London
E16 1HN
## **Bankers**
Lloyds TSB Bank plc
P.O.Box 1000 BX1 1LT
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **REPORT OF THE TRUSTEES**
The Trustees, who are also Directors for the purposes of Company Law, are pleased to present the annual report for the purposes of Charities Act 2011 and sections 415 to 419 of the Companies Act 2006, together with the accounts for the period ended 31st December 2020. In preparing the financial statements the trustees have adopted the updated provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102).
## **STRUCTURE GOVERNANCE AND MANAGEMENT**
Covenant of Peace is a charitable company limited by guarantee, incorporated on 30[th] July 2010 and registered as a charity on 22[nd] November 2010.
Covenant of Peace is a parish of the Redeemed Christian Church of God – a network comprised of churches all over the world. It is governed by its Memorandum and Articles of Association and is managed by a Board of Trustees. Decisions are determined by a simple majority vote by the Trustees who set the strategic direction of the Charity. Trustees are selected based on the contribution that they will make to the governance of the organisation and the skills that they will contribute. They are provided with copies of the Charity Commission’s Guidance to Trustees. Additional information and training is also provided as at when required.
Delegated authority has been given to the Pastor and Leadership Team for the day-to-day running of the operations of the Charity.
The Trustees have assessed the major risks to which the Charity is exposed, those relating to the specific operational areas of the Charity and its finances. The Trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems and by examining the operational and business risks faced by the Charity, they have established effective systems to mitigate those risks.
## **OBJECTIVES AND ACTIVITIES**
The Charity’s objects are:
“The advancement of the Christian religion worldwide;”
“The relief of poverty worldwide.”
These objects are charitable and operate for the public benefit. The charity pursues these objectives via its mission statement from its premises at 487, Blackfen road Blackfen Sidcup Kent.
In determining how best to pursue these objects the Trustees have given regard to the Charity Commission’s guidance on public benefit.
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **ACHIEVEMENTS AND PERFORMANCE FOR THE PUBLIC BENEFIT**
- The Charity, through its departments, organises activities, events and meetings to promote its objectives.
- The Charity continues to provide invaluable financial support to the Festival of Life prayer event held bi-annually in London and in other regions in the United Kingdom.
- The Charity continues to provide financial support to other charities (locally, nationally) operating within its objectives.
## **RISK MANAGEMENT**
The Trustees have conducted a review of the major risks which the Charity is exposed. A risk register has been established which identifies the major risks by area of activity, the nature of those risks, the likelihood of the risks happening, and the measures taken to manage them.
The Trustees review the risk register regularly at their meetings and are satisfied those systems are in place to manage the risks that have been identified. Insurance cover is in place and the finances of the Charity are kept under review. Where appropriate, systems have been established to mitigate the risks the Charity faces. Significant external risks to funding have led to the development of a strategic plan which will allow for the diversification of funding and activities. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of members of staff, volunteers, clients and visitors to the Charity.
## **Fund raising standards**
The charity raises funds from its partners and congregation members with all contributions freely given. As such the charity does not subscribe to any standards on fundraising.
## **FINANCIAL REVIEW**
The statement of the financial activities shows net used resources for the year of £20,113 and our resources stands at £111,793. The present level of funding is adequate to support the continuation of the church objectives. The Charity’s principal funding source continues to be the individuals who attend services and make contributions in the form of freewill offerings, tithes and other donations.
## **TRUSTEES' RESPONSIBILITIES STATEMENT**
The trustees (who are also directors of Covenant of Peace for the purposes of company law) 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).
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 group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing these financial statements, the trustees are required to:
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable group and 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 group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable group’s auditor is unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **VOLUNTEERS**
Many volunteers give up their time to help at the Charity, particularly at weekends and in the evenings. We are greatly indebted to these volunteers for their commitment and support.
This report has been prepared having taken advantage of the small companies exemption in the Companies Act 2006.
Approved by the Trustee Board on 25[th] September 2021 and signed on its behalf by:
## Gboyega Falomo
**Member, Board** of Trustees
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Independent examiner's report to the trustees on the unaudited financial statements of Covenant of Peace**
I report on the financial statements of Covenant of Peace for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, and the related notes. These financial statements have been prepared under the historical cost convention and the accounting policies set out therein.
## **Respective responsibilities of trustees and independent examiner**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Basis of independent examiner's statement**
My examination was carried out in accordance with the General Directions given by the Charities Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
## **Thomas Ojo (BA, BSc, ACIE, ACPA)**
## **Independent examiner**
**02/10/2021**
## **COVENANT OF PEACE**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Statement of Financial Activities (Including Income and Expenditure account) for the year ended 31st December 2020**|**Statement of Financial Activities (Including Income and Expenditure account) for the year ended 31st December 2020**|**Statement of Financial Activities (Including Income and Expenditure account) for the year ended 31st December 2020**|**Statement of Financial Activities (Including Income and Expenditure account) for the year ended 31st December 2020**|**Statement of Financial Activities (Including Income and Expenditure account) for the year ended 31st December 2020**|**Statement of Financial Activities (Including Income and Expenditure account) for the year ended 31st December 2020**|
|---|---|---|---|---|---|
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|||**Funds**|**Funds**|**Funds**|**Funds**|
|||||**2020**|**2019**|
||**Notes**|||||
|**Incoming resources**||||||
|Incoming resources from generated funds :||||||
|_Voluntary Income_|2a|117,143|0|117,143|140,385|
|_Activities for generating Funds_|2b|0|0|0|0|
|_Investment Income_|2c|0|0|0|0|
|**Total Incoming Resources**||117,143|0|117,143|140,385|
|**Resources expended**||||||
|**Charitable Activities**||||||
|_Religious Organisation: donations_|3|9,170|0|9,170|11,990|
|_Other charitable purposes_|4|77,064|0|77,064|82,124|
|_Relief of poverty_|5|2,882|0|2,882|4,551|
|_Goverance costs:_|6|1,500|0|1,500|1,200|
|_Management & Administration_|6|6,414|0|6,414|5,906|
|**Total Resources expended**||97,030|0|97,030|105,771|
|**Net income/ (expenditure)**||20,113|0|20,113|34,614|
|**Net Movement in funds**||20,113|0|20,113|34,614|
|**Funds at 1st January 2020**|13|91,680|0|91,680|57,066|
|**Funds at 31st December 2020**|14|111,793|0|111,793|91,680|
The notes on pages 12 to 14 form part of these accounts. Movement in funds are disclosed in Note 14 to the financial statements
The statement of financial activities includes all gains and losses in the year and therefore a separate statement of total and losses has not been prepared.
All of the above amounts relate to continuing activities.
## **COVENANT OF PEACE**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Balance Sheet as at 31st December 2020**
|**Unrestricted**
**Funds**
**Notes**
**Fixed Assets**
_Tangible assets_
8
73,888
**Current Assets**
_Debtors_
9
68,143
_Cash at bank and in hand_
10
13,716
81,859
**Creditors: amounts falling due within**
**one year**
11
(11,679)
**Net current assets ( liabilities)**
70,180
**Total assets less current liabilities**
144,068
**Creditors: amounts falling due after**
**more than one year**
12
(32,275)
**Total Net Assets/ liabilities**
13
111,793
**Funds**
14
111,793|**Restricted**
**Funds**
0
0
0
0
0
0
0
0
0
0|**Total**
**Total**
**Funds**
**Funds**
**2020**
**2019**
73,888
76,551
68,143
31,000
13,716
13,766
81,859
44,766
(11,679)
(11,679)
70,180
33,087
144,068
109,637
(32,275)
(17,957)
111,793
91,680
111,793
91,680|
|---|---|---|
The notes on pages 12 to 14 form an integral part of these financial statements .
The Balance Sheet continues on the following page
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **ACCOUNTING POLICIES**
## **General information, scope, and basis of the financial statements**
Covenant of Peace is an incorporated charity, limited by guarantee, incorporated in England with the company number 7331258.
In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information page of these financial statements. The nature of the charity’s operations and principal activities are outlined in the trustees' report.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **Incoming recognition**
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received, and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings:
● Expenditure on charitable activities, which includes costs in furtherance of the charity's objects and costs to support those activities
## **Religious Organisation Donations: Grants**
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity
## **Support cost allocation**
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management. Where support costs cannot be directly attributed to particular headings, they have been allocated to expenditure on charitable activities on a basis consistent with use of the resources.
## **Governance costs**
Governance costs comprise the costs associated with the governance arrangements of the charity and include audit fees, legal advice (if any) for trustees, costs associated with constitutional and statutory requirements and any costs associated with the strategic as opposed to the day-to-day management of the charity’s assets.
## **Taxation**
The charity is considered to pass the tests set out in sections 466 to 493 Corporation Tax Act 2010 (CTA 2010), as such no income tax is payable on the charity's activities.
## **Fixed assets**
Fixed assets are for use by the Charity in fulfilling its main charitable objects. Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life which in all cases is set at 12.5 years.
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or raised by the charity for purposes. The cost of raising and administering such funds is charged against the specific fund. The aim and use of each restricted fund are set out in the notes to the financial statements where applicable.
## **Going concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
## **COVENANT OF PEACE**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Notes on financial statements fo the year ended**
**2a**
_Volutary Donation & similar income_
**_Tithes & Offerings_**
**_Grant Received_**
**_Sundry Donation_**
**2b**
_Activities in furtherance of the charity's objects_
**_Sales of Tapes, Bookstalls_**
**_Church Hall Lettings & Other Income_**
**2c**
_Investment Income_
**_Bank Interest Received_**
**3**
**_Religious Organisation: donations_**
**_World Evangelism Mission_**
**_Donation of FOL_**
**_Offering to Other RCCG parishes_**
**_Honorarium_**
**4**
**_Other charitable purposes_**
**_Staff Costs_**
**_Rent & Rates_**
**_Heating & Lighting_**
**_Transportation Expenses_**
**_Telephone_**
**_Printing & Stationery_**
**_Equipment Hire & Rental_**
**_Maintenance_**
**_Youth Church & Outreach Activities_**
**_General expenses_**
**_Depreciation_**
**_Stock_**
**5**
**_Relief of poverty_**
**_Welfare_**|**31st December 20**
**Unrestricted**
**Funds**
**77,314**
77,314
24,875
14,954
117,143
0
0
0
0
0
(3,600)
(2,000)
(1,000)
(2,570)
(9,170)
(4,672)
(37,019)
(3,361)
(4,288)
(925)
(4,705)
0
(5,275)
(120)
(85)
(16,615)
(77,064)
(2,882)
(2,882)|**20**
**Restricted**
**Funds**
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0|**Total**
**Total**
**Funds**
**Funds**
**2020**
**2019**
77,314
82,601
24,875
30,250
14,954
27,534
117,143
140,385
0
0
0
0
0
0
0
0
0
0
(3,600)
(5,800)
(2,000)
(2,000)
(1,000)
(900)
(2,570)
(3,290)
(9,170)
(11,990)
(4,672)
(4,520)
(37,019)
(43,900)
(3,361)
(9,464)
(4,288)
(5,132)
(925)
(2,164)
(4,705)
(2,852)
0
(95)
(5,275)
(7,511)
(120)
(5,025)
(85)
(1,297)
(16,615)
(165)
0
(77,064)
(82,124)
(2,882)
(4,551)
(2,882)
(4,551)|
|---|---|---|---|
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**6**
**_Management & Administration_**
**_Audit Fee_**
**_Bank Charges & Interest_**
**_Consultancy /Professional Fees_**|**Unrestricted**
**Funds**
(1,500)
(3,082)
(3,332)
(7,914)|**Restricted**
**Funds**
0
0
0
0|**Total**
**Total**
**Funds**
**Funds**
**2020**
**2019**
(1,500)
(1,200)
(3,082)
(1,175)
(3,332)
(4,730)
(7,914)
(7,105)|
|---|---|---|---|
## **7** _**Taxaxtion**_
Covenant of Peace is a registered charity and is eligible for excemptions from taxation available to charities on their charitable activities. No charge to taxation therefore arises.
## **8** _**Tangible fixed assets**_
|**Chu**
**Cost**
At 1st January 2020
Additions
Disposals
**At 31st December 2020**
**Depreciation**
At 1st January 2020
Charge for the year
**At 31st December 2020**
Net Book Value
**At 31st December 2020**
**At 31st December 2019**|**rch Equipment**
**O**
**Equipment**
**O**|**ffice Furniture &**
**ffice Equipment**|**Motor**
**Total**
**Vehicle**|
|---|---|---|---|
||107,816|81,518|9,500
198,834|
||1,531
0
109,347
78,295
9,075
87,370
21,977
29,521|12,420
0
93,938
34,488
7,539
42,027
51,911
47,030|0
13,951
0
0
9,500
212,785
9,500
122,283
0
16,614
9,500
138,897
0
73,888
0
76,551|
- **9** _**Debtors**_
|**_Debtors_**
**_Rent Prepayments_**
**_Rent Deposit_**|**2020**
**2019**
46,393
9,250
7,250
7,250
14,500
14,500
68,143
31,000|
|---|---|
**COVENANT OF PEACE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**10**
**_Cash at bank and in hand_**
**_Cash at bank and in hand_**
**_Cash at bank and in hand_**
**11**
**Creditors: amounts falling due within one year**
**_Creditors_**
**_Accruals_**
**_Audit Fees_**
**12**
**Creditors: amounts falling due after one year**
**_Loans_**
**13**
**Analysis of Nets Asssets between Funds**
**_Fixed Assets_**
**_Current Assets_**
**_Current Liabilities_**
**_Long term liabilities_**
**Balance as at 31st December 2020**
**14**
**Funds**
**_Balance at 1st January 2020_**
**_Surplus/ (Deficit) for the year_**
**_Transfers between funds_**
**Balance as at 31st December 2020**|**Unrestricted**
**Funds**
73,888
81,859
(11,679)
(32,275)
111,793
**Unrestricted**
**Funds**
91,680
20,113
111,793|**Restricted**
**Funds**
0
0
0
0
0
**Restricted**
**Funds**
0
0
0|**Total**
**Total**
**Funds**
**Funds**
**2020**
**2019**
13,716
13,766
13,716
13,766
**2020**
**2019**
7,179
7,979
3,000
2,500
1,500
1,200
11,679
11,679
**2020**
**2019**
32,275
17,957
32,275
17,957
**Total**
**Total**
**Funds**
**Funds**
**2020**
**2019**
73,888
76,551
81,859
44,766
(11,679)
(11,679)
(32,275)
(17,957)
111,793
91,680
**Total**
**Total**
**Funds**
**Funds**
**2020**
**2019**
91,680
57,066
20,113
34,614
111,793
91,680|
|---|---|---|---|
.