**Registered number: 07530478 Charity number: 1141424**
# **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
**(A company limited by guarantee)**
## **UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2021**
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 7|
|**Independent examiner's report**|8|
|**Statement of financial activities**|9|
|**Balance sheet**|10 - 11|
|**Statement of cash flows**|12|
|**Notes to the financial statements**|13 - 30|
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021**
**Trustees** Dr Oludare Adetokunbo Demuren, Chair Dr Adeniyi Faboya Dr Abiodun Olayinka Obisesan Mr Akintayo Akinsooto Ojo **Company registered number** 07530478 **Charity registered number** 1141424 **Registered office** CO2 8GU **Pastor in charge** Pastor Abiodun Obisesan **Accountants** AdeKay & Co Limited Chartered Certified Accountants 6 Medcalf Road Enfield EN3 6HL **Bankers** HSBC 26 High Street Colchester CO1 1DQ Barclays Bank Plc 9 High Street Colchester Essex CO1 1DA
Page 1
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
## **(A company limited by guarantee)**
## **BOARDS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
The trustees present their annual report together with the financial statements of the Charity for the year ended 31 December 2021. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Objectives and activities**
## **a. Policies and objectives**
The Charity is constituted as a company limited by guarantee, and is therefore governed by a Memorandum and Articles of Association.
The principal object of the Redeemed Christian Church of God is the advancement of the Christian faith worldwide and relief of poverty.
Our primary objective is to seek the advancement of Christian religion in accordance with preaching of the faith of the early Apostles and wherever possible, educate people using the word of God as our guide. We aim to establish and manage schools, Bible schools, vocational Bible schools, correspondence courses, and to teach religious knowledge in schools, institutions and the wider community.
In setting objectives and planning for activities, the trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **b. Strategies for achieving objectives**
The charity has adopted the following strategies for achieving the above objectives: • organisation of conferences and events with proven speakers and ministers of the faith to inspire and guide members; and
- financial and administrative support for other charities and Christian events with like purposes.
## **c. Activities undertaken to achieve objectives**
The charity seeks to achieve its objectives by:
- Various missionary activities.
- Community Outreach Events.
- Provision of welfare support to members; and
- Conferences & Events.
Page 2
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
**BOARDS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Objectives and activities (continued)**
## **d. Public Benefit Statement**
The Board of Trustees confirm that they have met their duties in strict compliance with the provisions of section 4 and 17 of the Charities Act 2011, and have had due regards to the Charity Commission’s general guidance on public benefit. Particular consideration has been given to the Charity Commission's supplementary public guidance provisions on the advancement of religion for the public benefit
## **e. Volunteers**
The Church is grateful for the unstinting efforts of its volunteers who are involved in service provision. It is estimated that over 7,150 volunteer hours were provided during the year. If this is conservatively valued at £8.50 per hour, the volunteer efforts amount to over £60,775.
Page 3
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
## **(A company limited by guarantee)**
## **BOARDS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Achievements and performance**
## **a. Review of activities**
During the year under review, the Church was of benefit to its congregation and its local community both spiritually and to a limited extent, financially. The church continues to run its Sunday and midweek services for the benefit of local community members.
The outbreak of Corona virus in the year 2020 means the church had to review her operations. The government lockdown was lifter in the second quarter of 2021, the year in report, and the church was able to start physical service. However, since not all parishioners were ready to return to the physical service, the church had to adopt the hybrid approach where parishioners can join services physically and virtually.
The charity was able to return to some of her charitable activities which were put on hold during the lockdown.
The charity supported poverty alleviation in the community by giving out food items for those who need it during the year.
We continue to support our community through our food bank donations month on month.
We participated in a Christmas initiative tagged “Love Your Neighbour.” In this initiative with our fund commitment and counterpart funding received we were able to make boxes of Christmas dinner available to families in Colchester
We supported the Blind Society in Nigeria
Support the elderly and members who are infirmed by supplying groceries.
Support people and help people to lose weight by allowing Slimming World to use our facilities.
Support fellow Christians such as Jesus Reigns Ministry by allowing them to use our facilities.
Support Samaritan’s Christmas Child Appeal.
We conducted a health and safety training in line with the government Covid-19 protocols. This is to enable members of the community understand the disease and prevent the spread.
We conducted trainings on PA console management and training on maximising the use of Zoom App.
We also conducted training on safeguarding for volunteers within and outside our charity.
Regular Weekly & Monthly Online Activities:
1. Weekly Midweek prayers.
2. Weekly House Fellowship.
3. Weekly Bible studies.
4. Monthly Communion Services.
5. Monthly Night Vigil.
6. Women’s Early Morning Prayers.
7. Women’s Monthly Night Vigil.
8. Marriage Seminar.
Page 4
**THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **BOARDS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **b. Reserves policy**
The Board of Trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets ('the free reserves') held by the charitable company should be 3 months of average annual expenditure. At this level, the Board of Trustees holds the view that they would be able to continue the current activities of the charitable company in the event of a significant drop in funding.
The Board of Trustees are in the process of considering a review of the reserve policy to be in the light of the wider strategic future plans. This is to ensure that the level of the reserve we hold are not only appropriate to our current position and annual expenditure, but also taking into full cognisance what our future strategic plans are.
## **c. Investments policy and performance**
The Board have decided that at present, funds should continue to be retained in Banks and Building Societies. Any change in such banking arrangements should be agreed by the Board. As far as possible, funds will be retained in interest bearing accounts.
## **d. Principal funding**
This is provided mainly through voluntary tithes and offerings by the church members and through gift aid scheme. Pledges are also taken for specific projects.
## **Structure, governance and management**
## **a. Constitution**
The Redeemed Christian Church of God- Stillwaters Colchester is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
## **b. Methods of appointment or election of Trustees**
The management of the Charity is the responsibility of the trustees who are elected and co-opted under the terms of the Memorandum of Association.
## **c. Organisational structure and decision-making policies**
The church is organised so that the trustees meet regularly to manage its affairs. There is a part time administrator, who manages the day to day administration of the church.
Page 5
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **BOARDS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Structure, governance and management (continued)**
## **d. Policies adopted for the induction and training of Trustees**
Most trustees are already familiar with the activities of the charitable organisation as they are drawn from members who have the skill set to offer and empathy with our core values. Newly elected trustees are encouraged to attend a series of training sessions led by the Chair.
The courses attended equip the trustees with skills to carry out their duties as trustees. The training enables them to understand:
- Their obligation as trustees.
- The importance of the main documents which set out the operational framework for the charity including
- the Memorandum and Articles of association.
- The control of resources and current financial position using the management accounts.
- Their responsibility for the statutory accounts.
- How to translate future plans and objectives into budgets and plans.
- Use of budgetary control.
During induction, they meet other trustees. As part of the induction training, they are encouraged to attend appropriate external events where these will facilitate the undertaking of their role. An induction pack is provided for new Directors/Trustees.
## **e. Related party relationships**
The RCCG Stillwaters Colchester is member of the Redeemed Christian Church of God (RCCG) which has parishes all over the world. The parish's relationship with RCCG and other parishes is governed by an 'Agreement for Common Purposes'.
The parish supports visiting ministers of the gospel from within and outside the UK. Support is also given to RCCG Central Office, World Evangelism Mission, Festival of Live and other RCCG Programmes. The parish also gives occasional grant to congregational members who are in need.
## **f. Financial risk management**
The trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
## **Plans for future periods**
The Church intends to continue with its activities for the foreseeable future and enlarge its operations as the resources allow and according to leading of the Holy Spirit.
The charity continues to expand its influence in and support for the community programmes and events. The charity plans to roll over the activities held for charitable purposes in 2020 to 2021 and adopt new projects.
## **Board Members' liability**
The Board Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up.
Page 6
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **BOARDS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Statement of Trustees' responsibilities**
The trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report 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 . Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) 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 Charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of trustees and signed on their behalf by:
**Dr Abiodun Obisesan** Trustee Date: 19 August 2022
**Mr Akintayo Akinsooto Ojo** Trustee
Page 7
**THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Independent examiner's report to the Trustees of The Redeemed Christian Church of GodStillwaters Colchester ('the Charity')**
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 December 2021.
## **Responsibilities and basis of report**
As the Trustees of the Charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
Signed: Dated: 22 August 2022 Adegboyega Adesigbin FCCA ACCA
## **AdeKay & Co Limited**
Chartered Certified Accountants 6 Medcalf Road Enfield EN3 6HL
Page 8
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Note**
**Income from:**
Donations and legacies
3
Investments
4
**Total income**
**Expenditure on:**
Charitable activities
6
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2021**
**£**
**8,767**
**-**
**8,767**
**8,767**
**8,767**
**-**
**181,301**
**-**
**181,301**|**Unrestricted**
**funds**
**2021**
**£**
**237,190**
**7,090**
**244,280**
**216,654**
**216,654**
**27,626**
**544,326**
**27,626**
**571,952**|**Total**
**funds**
**2021**
**£**
**245,957**
**7,090**
**253,047**
**225,421**
**225,421**
**27,626**
**725,627**
**27,626**
**753,253**|_Total_
_funds_
_2020_
_£_
_226,811_
_4,994_|
|---|---|---|---|---|
|||||_231,805_|
|||||_212,826_|
|||||_212,826_|
|||||_18,979_|
|||||_706,648_
_18,979_|
|||||_725,627_|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 13 to 30 form part of these financial statements.
Page 9
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee) REGISTERED NUMBER: 07530478**
## **BALANCE SHEET AS AT 31 DECEMBER 2021**
|**Note**
**Fixed assets**
Tangible assets
11
**Current assets**
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
14
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
15
Unrestricted funds
15
**Total funds**|**749**
**86,399**
**87,148**
**(70,297)**|**2021**
**£**
**1,208,445**
**1,208,445**
**16,851**
**1,225,296**
**(472,042)**
**753,254**
**753,254**
**181,301**
**571,953**
**753,254**|_748_
_68,967_
_69,715_
_(66,627)_|_2020_
_£_
_1,235,593_
_1,235,593_
_3,088_
_1,238,681_
_(513,054)_
_725,627_
_725,627_
_181,301_
_544,326_
_725,627_|
|---|---|---|---|---|
The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
Page 10
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
**(A company limited by guarantee) REGISTERED NUMBER: 07530478**
**BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2021**
The financial statements were approved and authorised for issue by the Trustees on 19 August 2022 and signed on their behalf by:
**Dr Abiodun Olayinka Obisesan Mr Akintayo Akinsooto Ojo** Trustee Trustee
The notes on pages 13 to 30 form part of these financial statements.
Page 11
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Interests receivable and rents from investments
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Cash flows from financing activities**
Repayments of borrowing
**Net cash used in financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 13 to 30 form part of these financial statements|**2021**
**£**
**67,927**
**7,090**
**(16,574)**
**(9,484)**
**(41,011)**
**(41,011)**
**17,432**
**68,967**
**86,399**|_2020_
_£_
_80,637_
_4,995_
_(15,389)_
**(10,394)**
_(45,452)_
**(45,452)**
**24,791**
_44,176_
_68,967_|
|---|---|---|
Page 12
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. General information**
Redeemed Christian Church of God - Stillwaters Colchester is a company limited by guarantee incorporated and registered with the Charity Commission in England & Wales. The registered address is Heath House, Heath Business Park, Grange Way, Colchester, C02 8GU.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Redeemed Christian Church of God- Stillwaters Colchester meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **2.2 Going concern**
The Board consider that there are no material uncertainties about the charitable company ability to continue as a going concern. The trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future and do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
## **2.3 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 13
**THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. Accounting policies (continued)**
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
Charitable activities and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.
## **2.5 Government grants**
Government grants relating to tangible fixed assets are treated as deferred income and released to the statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the statement of financial activities as the related expenditure is incurred.
## **2.6 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Page 14
**THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. Accounting policies (continued)**
## **2.7 Tangible fixed assets and depreciation**
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following basis:
Freehold property - 2.0% straight line Music & church equipment - 25.0% straight line Motor vehicles - 25.0% reducing balance Office equipment - 25.0% straight line Computer equipment - 33.3% straight line
## **2.8 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.9 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.10 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.
Page 15
**THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. Accounting policies (continued)**
## **2.11 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 recognised 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.
## **2.12 Finance leases and hire purchase**
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Charity. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the statement of financial activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
## **2.13 Operating leases**
Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.
## **2.14 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 which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **3. Income from donations and legacies**
||**Restricted**|**Unrestricted**|**Total**|
|---|---|---|---|
||**funds**|**funds**|**funds**|
||**2021**|**2021**|**2021**|
||**£**|**£**|**£**|
|**Donations**||||
|Building fund|8,767|-|**8,767**|
|Tithes|-|141,172|**141,172**|
|Collection at all services|-|60,531|**60,531**|
|Gift Aid|-|32,376|**32,376**|
Page 16
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **3. Income from donations and legacies (continued)**
|**Similar incoming resources**
Bookstall income
Other income
**Subtotal detailed disclosure**
Donations
**Subtotal**
**Total 2021**
**Donations**
Building fund
Tithes
Collection at all services
Gift Aid
**Similar incoming resources**
Bookstall income
Vending machine income
**Subtotal detailed disclosure**
Donations
Government grants
**Subtotal**
_Total 2020_|**Restricted**
**funds**
**2021**
**Unrestricted**
**funds**
**2021**
**£**
**£**
-
70
-
141
8,767
234,290
-
2,900
-
2,900
8,767
237,190
_Restricted_
_funds_
_2020_
_Unrestricted_
_funds_
_2020_
_£_
_£_
_3,040_
_-_
_-_
_93,188_
_-_
_72,958_
_-_
_33,839_
_-_
_363_
_-_
_-_
_3,040_
_200,348_
_-_
_10,243_
_-_
_13,180_
_-_
_23,423_
_3,040_
_223,771_|**Total**
**funds**
**2021**
**£**
**70**
**141**|
|---|---|---|
|||**243,057**|
|||**2,900**|
|||**2,900**|
||||
|||**245,957**|
|||_Total_
_funds_
_2020_
_£_
_3,040_
_93,188_
_72,958_
_33,839_
_363_
_-_|
|||_203,388_|
|||_10,243_
_13,180_|
|||_23,423_|
||||
|||_226,811_|
Page 17
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **3. Income from donations and legacies (continued)**
## **4. Investment income**
|**Unrestricted**
**funds**
**2021**
**£**
Investment income - local investment properties
7,090
_Unrestricted_
_funds_
_2020_
_£_
Investment income - local investment properties
_4,994_
Bank interest receivable
_-_
_Total 2020_
_4,994_
**Analysis of grants**
**Grants to**
**Institutions**
**2021**
**£**
Grants- Missionary
28,574
_Grants to_
_Institutions_
_2020_
_£_
Grants - Missionary
_30,515_|**Total**
**funds**
**2021**
**£**
**7,090**|
|---|---|
||_Total_
_funds_
_2020_
_£_
_4,994_
_-_|
||_4,994_|
||**Total**
**funds**
**2021**
**£**
**28,574**|
||_Total_
_funds_
_2020_
_£_
_30,515_|
## **5. Analysis of grants**
The Charity has made the following material grants to institutions during the year:
Page 18
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **5. Analysis of grants (continued)**
|**Name of institution**
RCCG World Evangelism
RCCG Central Office
RCCG Inspiration House
Other grants to institutions|**2021**
**£**
**25,274**
**1,200**
**-**
**26,474**
**2,100**
**28,574**|_2020_
_£_
_24,706_
_1,200_
_3,000_|
|---|---|---|
|||_28,906_
_1,609_|
||||
|||_30,515_|
## **6. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Support costs
Direct costs
**Total 2021**
Support costs
Direct costs
_Total 2020_|**Restricted**
**funds**
**2021**
**Unrestricted**
**funds**
**2021**
**£**
**£**
8,767
176,183
-
40,471
8,767
216,654
_Restricted_
_funds_
_2020_
_Unrestricted_
_funds_
_2020_
_£_
_£_
_3,040_
_170,412_
_-_
_39,374_
_3,040_
_209,786_|**Total**
**funds**
**2021**
**£**
**184,950**
**40,471**|
|---|---|---|
|||**225,421**|
|||_Total_
_funds_
_2020_
_£_
_173,452_
_39,374_|
|||_212,826_|
Page 19
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **6. Analysis of expenditure on charitable activities (continued)**
## **Summary by expenditure type**
|Support costs
Direct costs
Support costs
Direct costs|**Staff costs**
**2021**
**Depreciation**
**2021**
**£**
**£**
61,843
43,722
-
-
61,843
43,722
_Staff costs_
_2020_
_Depreciation_
_2020_
_£_
_£_
_56,181_
_44,719_
_-_
_-_
_56,181_
_44,719_|**Other costs**
**2021**
**£**
79,385
40,471
119,856
_Other costs_
_2020_
_£_
_72,552_
_39,374_
_111,926_|**Total**
**funds**
**2021**
**£**
**184,950**
**40,471**|
|---|---|---|---|
||||**225,421**|
||||_Total_
_funds_
_2020_
_£_
_173,452_
_39,374_|
||||_212,826_|
## **7. Analysis of expenditure by activities**
|Support costs
Direct costs
**Total 2021**|**Advanceme**
**nt of**
**christian**
**faith**
**2021**
**£**
-
11,897
11,897|**Grant**
**funding of**
**activities**
**2021**
**£**
-
28,574
28,574|**Support**
**costs**
**2021**
**£**
184,950
-
184,950|**Total**
**funds**
**2021**
**£**
**184,950**
**40,471**|
|---|---|---|---|---|
|||||**225,421**|
Page 20
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **7. Analysis of expenditure by activities (continued)**
|Support costs
Direct costs
_Total 2020_|_Advancemen_
_t of christian_
_faith_
_2020_
_£_
_-_
_8,858_
_8,858_|_Grant_
_funding of_
_activities_
_2020_
_£_
_-_
_30,515_
_30,515_|_Support_
_costs_
_2020_
_£_
_173,452_
_-_
_173,452_|_Total_
_funds_
_2020_
_£_
_173,452_
_39,373_|
|---|---|---|---|---|
|||||_212,826_|
## **Analysis of direct costs**
|Visiting Ministers expenses
Rates
Ministry expenses
Hire of equipment
Other
**Total 2021**
Rates
Ministry expenses
_Total 2020_
**Analysis of support costs**|**Advanceme**
**nt of**
**christian**
**faith**
**2021**
**£**
3,150
7,329
928
491
(1)
11,897
_Advancemen_
_t of christian_
_faith_
_2020_
_£_
_8,186_
_672_
_8,858_|**Total**
**funds**
**2021**
**£**
**3,150**
**7,329**
**928**
**491**
**(1)**|
|---|---|---|
|||**11,897**|
|||_Total_
_funds_
_2020_
_£_
_8,186_
_672_|
|||_8,858_|
||||
Page 21
**THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **7. Analysis of expenditure by activities (continued)**
## **Analysis of support costs (continued)**
|Staff costs
Depreciation
Hire purchase interest
Music and equipment
Gas and electricity
Insurance
Telephone
Cleaning
Loan interest
Welfare
Professional fees
Printing, postages and stationery
Bank charges
Motor expenses
Travel
Sundry expenses
Mortgage interest
Training
Admin services & costs
Dues and subscription
Advertising and promotion
Volunteer costs
Evangelism
Bookkeeping and accounting services
Computer and IT support
Equipment rental
Health and safety
Repairs , renewals and maintenance
Governance costs
**Total 2021**|**Total**
**funds**
**2021**
**£**
**61,843**
**43,722**
**1,140**
**2,431**
**3,929**
**2,963**
**1,483**
**1,901**
**6,589**
**6,419**
**563**
**200**
**148**
**428**
**50**
**750**
**10,178**
**411**
**16,186**
**1,041**
**1,800**
**-**
**-**
**5,250**
**997**
**478**
**8**
**12,542**
**1,500**
**184,950**|_Total_
_funds_
_2020_
_£_
_56,181_
_44,719_
_1,140_
_-_
_3,876_
_1,821_
_10_
_2,240_
_7,348_
_3,053_
_-_
_210_
_123_
_3,425_
_1,349_
_-_
_11,527_
_2,627_
_12,624_
_1,366_
_2,344_
_1,250_
_200_
_4,250_
_2,358_
_113_
_2,140_
_5,658_
_1,500_|
|---|---|---|
|||_173,452_|
Page 22
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **8. Independent examiner's remuneration**
||**2021**|_2020_|
|---|---|---|
||**£**|_£_|
|Fees payable to the Charity's independent examiner for the independent|||
|examination of the Charity's annual accounts|**1,500**|_1,500_|
## **9. Staff costs**
|Wages and salaries
Social security costs|**2021**
**£**
**60,000**
**1,843**
**61,843**|_2020_
_£_
_54,917_
_1,264_|
|---|---|---|
||||
|||_56,181_|
The average number of persons employed by the Charity during the year was as follows:
||**2021**|_2020_|
|---|---|---|
||**No.**|_No._|
|Administrative|**2**|_2_|
No employee received remuneration amounting to more than £60,000 in either year.
## **10. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2020 - £NIL)_ .
During the year ended 31 December 2021, no Trustee expenses have been incurred _(2020 - £NIL)_ .
Page 23
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **11. Tangible fixed assets**
|**Freehold**
**property**
**£**
**Cost or valuation**
At 1 January 2021
**1,391,856**
Additions
**-**
At 31 December 2021
**1,391,856**
**Depreciation**
At 1 January 2021
**186,027**
Charge for the year
**27,837**
At 31 December 2021
**213,864**
**Net book value**
At 31 December 2021
**1,177,992**
_At 31 December 2020_
_1,205,829_
**12.**
**Debtors**
**Due within one year**
Other debtors
**13.**
**Creditors: Amounts falling due within one**
Bank overdrafts
Bank loans
Other taxation and social security|**Music and**
**church**
**equipment**
**£**
**106,142**
**-**
**106,142**
**90,248**
**6,918**
**97,166**
**8,976**
_15,893_
**year**|**Motor**
**vehicles**
**£**
**27,594**
**-**
**27,594**
**18,948**
**2,162**
**21,110**
**6,484**
_8,646_||**Computer**
**equipment**
**£**
**36,982**
**16,574**
**53,556**
**31,757**
**6,805**
**38,562**
**14,994**
_5,225_
**2021**
**£**
**749**
**749**
**2021**
**£**
**207**
**53,378**
**5,788**|**Total**
**£**
**1,562,574**
**16,574**|
|---|---|---|---|---|---|
||||||**1,579,148**|
||||||**326,980**
**43,722**|
||||||**370,702**|
||||||**1,208,446**|
||||||_1,235,593_|
||||||_2020_
_£_
_748_
_748_
_2020_
_£_
_-_
_53,378_
_3,326_|
Page 24
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **13. Creditors: Amounts falling due within one year (continued)**
|Obligations under finance lease and hire purchase contracts
Accruals|**2021**
**£**
**4,174**
**6,750**
**70,297**|_2020_
_£_
_4,173_
_5,750_|
|---|---|---|
||||
|||_66,627_|
## **14. Creditors: Amounts falling due after more than one year**
|Bank loans
Other loans
Net obligations under finance lease and hire purchase contracts|**2021**
**£**
**262,306**
**206,456**
**3,280**
**472,042**|_2020_
_£_
_287,540_
_218,061_
_7,453_|
|---|---|---|
||||
|||_513,054_|
The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:
|Payable or repayable by instalments|**2021**
**£**
**315,684**
**315,684**|_2020_
_£_
_340,918_|
|---|---|---|
||||
|||_340,918_|
The loan outstanding is a repayment mortgage of the church building at Heath House, Heath Business Centre, off Whitehall Road, Colchester, Essex CO2 8HG.
The bank loan is a Barclays Bank mortgage secured on the church premises at Heath House, Heath Business Centre, off Whitehall Road, Colchester, Essex CO2 8HG.
Page 25
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **15. Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
General Funds
**Restricted funds**
Restricted Fund
**Total of funds**|**Balance at 1**
**January**
**2021**
**£**
**544,326**
**181,301**
**725,627**|**Income**
**£**
**244,281**
**8,767**
**253,048**|**Expenditure**
**£**
**(216,654)**
**(8,767)**
**(225,421)**|**Balance at**
**31**
**December**
**2021**
**£**
**571,953**|
|---|---|---|---|---|
|||||**181,301**|
|||||**753,254**|
Page 26
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **15. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
General Funds
**Restricted funds**
Restricted Fund
**Total of funds**
**Summary of funds**
**Summary of funds - current year**
General funds
Restricted funds|_Balance at_
_1 January_
_2020_
_£_
_525,346_
_181,301_
_706,647_
**Balance at 1**
**January**
**2021**
**£**
**544,326**
**181,301**
**725,627**|_Income_
_£_
_228,766_
_3,040_
_231,806_
**Income**
**£**
**244,281**
**8,767**
**253,048**|_Expenditure_
_£_
_(209,786)_
_(3,040)_
_(212,826)_
**Expenditure**
**£**
**(216,654)**
**(8,767)**
**(225,421)**|_Balance at_
_31_
_December_
_2020_
_£_
_544,326_|
|---|---|---|---|---|
|||||_181,301_|
|||||_725,627_|
|||||**Balance at**
**31**
**December**
**2021**
**£**
**571,953**
**181,301**|
|||||**753,254**|
## **16. Summary of funds Summary of funds - current year**
Page 27
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **16. Summary of funds (continued)**
## **Summary of funds - prior year**
|General funds
Restricted funds|_Balance at_
_1 January_
_2020_
_£_
_525,346_
_181,301_
_706,647_|_Income_
_£_
_228,766_
_3,040_
_231,806_|_Expenditure_
_£_
_(209,786)_
_(3,040)_
_(212,826)_|_Balance at_
_31_
_December_
_2020_
_£_
_544,326_
_181,301_|
|---|---|---|---|---|
|||||_725,627_|
## **17. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**
**Analysis of net assets between funds - prior year**
Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Other unallocated
**Total**|**Restricted**
**funds**
**2021**
**Unrestricted**
**funds**
**2021**
**£**
**£**
181,301
1,027,144
-
87,148
-
(70,297)
-
(472,042)
181,301
571,953
_Restricted_
_funds_
_2020_
_Unrestricted_
_funds_
_2020_
_£_
_£_
_181,301_
_1,054,292_
_-_
_69,714_
_-_
_(66,627)_
_-_
_(513,054)_
-
2
_181,301_
_544,327_|**Total**
**funds**
**2021**
**£**
**1,208,445**
**87,148**
**(70,297)**
**(472,042)**|
|---|---|---|
|||**753,254**|
|||_Total_
_funds_
_2020_
_£_
_1,235,593_
_69,714_
_(66,627)_
_(513,054)_
_2_|
|||_725,628_|
Page 28
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **18. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Amortisation charges
Interests and rents from investments
Decrease/(increase) in debtors
Increase in creditors
**Net cash provided by operating activities**
**19.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**20.**
**Analysis of changes in net debt**
**At 1**
**January**
**2021**
**£**
Cash at bank and in hand
**68,967**
Bank overdrafts repayable on demand
**-**
Debt due within 1 year
**(53,378)**
Debt due after 1 year
**(505,600)**
Finance leases
**(11,628)**
**(501,639)**|**2021**
**£**
**27,626**
**15,885**
**27,837**
**(7,090)**
**(1)**
**3,670**
**67,927**
**2021**
**£**
**86,399**
**86,399**
**Cash flows**
**£**
**17,432**
**(207)**
**-**
**36,838**
**4,174**
**58,237**|_2020_
_£_
_18,979_
_16,882_
_27,837_
_(4,995)_
_17,692_
_4,242_
_80,637_
_2020_
_£_
_68,967_
_68,967_
**At 31**
**December**
**2021**
**£**
**86,399**
**(207)**
**(53,378)**
**(468,762)**
**(7,454)**
**(443,402)**|
|---|---|---|
Page 29
## **THE REDEEMED CHRISTIAN CHURCH OF GOD- STILLWATERS COLCHESTER (A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **21. Related party transactions**
During the year a company in which one of the trustee served as a director received fees amounting to £5,250 (2020 : £4,250).
Page 30