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2020-12-31-accounts

TRUSTEES' REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

Registered Charity No. 1141725

HILLFIELDS CHURCH, COVENTRY

LEGAL AND ADMINISTRATIVE INFORMATION

Treasurer: Mr Daniel Field Office address: 18 Lower Ford Street Coventry CV1 5QJ Bankers: Yorkshire Bank Current Trustees: James Young Paul Watts Simon Hook Peter Cordle Daniel Field

CONTENTS

Trustees' report Independent examiner's report Statement of Financial Activities Balance Sheet Notes to the Accounts

TRUSTEES' REPORT

The Trustees present their report and accounts for the year ended 31 December 2020.

Structure, governance and management

Hillfields Church Coventry is an independent Baptist Church located in Lower Ford Street and Waterloo Street, Coventry. The Church was first registered as a charitable unincorporated association with the Church Constitution adopted on 3[rd] March 2011.

Trustees & Staffing

The Trustees who served during the year were:-

Pastor Paul Watts Pastor James Young Pastor Simon Hook Mr Peter Cordle Mr Daniel Field

The Trustees are the designated Officers of the Church as laid down in the constitution. These are the Elders, including the Pastors. A Pastor is one of the Elders whose gift in preaching, teaching and pastoral care has been recognised by the Church and has been appointed by the Church to exercise such a ministry.

During 2020 James Young and Simon Hook have served as full time pastors of the church. Paul Watts retired as a paid pastor during the year but continues as an elder. The Trustees are required by the constitution to meet at least twice in a twelve month period, but have met more frequently during the year to address specific issues. Any matter requiring a decision of the Trustees requires a simple majority of those present and voting at a properly convened meeting. In the event of an equality of votes the chairman of the meeting is entitled to a second or casting vote.

In addition to the work carried out by the Elders the church has a finance team led by our treasurer, Daniel Field. The work of the finance team includes producing an annual forecast of our estimated expenditure needs, collecting and allocating gifts to the church, reclaiming tax from HMRC on gift aided income, paying staff members, maintaining the financial accounts and distributing monies to those in need in accordance with the wishes of the Trustees.

Policies

Church policies are set by the Trustees. HCC currently has policies addressing the following:

Safeguarding of children, young people and vulnerable adults. Reserves Data protection Trustees’ conflict of interest Finance, including Investment, Internal control and paying staff Managing volunteers Risk management Disability

A Health and Safety policy is in process with a view to being fully implemented in 2022.

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Objectives and activities

The purposes of the Church are the advancement of the Christian faith in accordance with the Doctrinal Basis of Faith primarily but not exclusively within Coventry and the surrounding neighbourhood, and such other charitable purposes as shall, in the opinion of the members of the church in general meeting, further the work of the church. To this end our regular Sunday worship and biblical preaching ministry have been maintained with morning and evening services each Sunday open to members and all visitors, though these services were live-stream only for periods where this was required by law as a result of the COVID-19 pandemic. Access to the church worship services online has been a help to many listeners both in the UK and overseas.

We have maintained a comprehensive programme of teaching and activities for children, young people and students on Sundays and during the week to help them understand the Bible and the way in which its teaching should affect our lives. During the week the church has held regular meetings for prayer, Bible study and fellowship, generally either at the church or in small home groups on alternating weeks, as well as promoting informal contact between members and others for mutual help and encouragement. The COVID-19 pandemic meant that all activities had to cease “in person” for varying periods but most activities were continued online in some form.

Apart from specific meetings during the year for church members our meetings for worship, prayer, Bible study and fellowship are freely open to the public.

We have a number of church members and visitors with learning disabilities. They take an active part in the life of the church and we are grateful for the contributions which they make to our meetings for worship, fellowship, prayer and Bible study.

The church has been able to give financially in response to several UK and overseas needs which have arisen during the year and which have been brought to our attention. This has been done with the recommendation of the Trustees.

The church supports a number of missionaries in prayer and receives their prayer letters and emails. Missionaries are prayed for by individuals and also from time to time at the Church prayer meeting. The Church has been particularly supporting Alex and Mari Walker and their three children in Africa for a number of years. We also support David and Georgina Gray in their work of Bible translation and Scripture engagement.

During the year we began a major program of refurbishments at our Waterloo Street site with a complete renovation of the existing toilet facilities and addition of a new disabled toilet, funded by a generous grant of £26,800 from the Grace Baptist Trust Corporation.

Achievements and performance

We rely entirely upon God’s grace and power to produce lasting benefit from our activities. At the same time we encourage everyone in the church family to be involved in serving.

We are very grateful to God for the consistent and helpful biblical ministry from our pastors, other preachers from within the church and visiting preachers during the year. This has been a great help to many people, some of whom have understood their need of repentance and of putting their trust in the Lord Jesus Christ as their Saviour and Lord. We are very pleased to report that during 2020 we welcomed 11 new members into the church fellowship. 2 ceased membership, bringing the number to 225 at the end of the year.

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Financial review

The Church made a surplus for the year on its General Fund of £20,891. This is higher than forecast due primarily to a significant reduction in expenditure as a result of the limitations on activities caused by the pandemic. The Trustees consider the financial position at the year-end to be satisfactory. The Trustees review the level of reserves each year to ensure that it is sufficient for ongoing day to day purposes. A budget for 2021 has been set based on the Church's ongoing and projected activities and a small deficit is expected as a result of increasing the hours of our student worker Sophia Browne to 4.5 days per week and the exhaustion of the restricted fund which has paid Simon Hook’s salary up to the end of 2020. This deficit will be met from reserves carried forward. In setting the budget the Trustees have considered the possible impact of the economic climate on donations and they are satisfied that their assumptions are reasonable.

The main source of funds comes from donations. These funds enable the Trustees to fulfil their aims and objectives as stated above. It is the current policy of the Church that liquid reserves (freely available unrestricted funds which have not been designated for a specific use) should be maintained at a level equivalent to at least 10% of annual General Fund expenditure, excluding costs of activities which are recharged to service users. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to achieve an orderly change in the Church's current activities while consideration is given to ways in which additional funds may be raised. The level of General Fund liquid reserves at 31 December 2020 was just under £27,000, higher than that required by policy. However, the trustees believe this to be reasonable due to the planned additional expenditure over the next few years.

There are no restrictions on the Trustees to invest. The unrestricted and restricted funds may be invested in any type of investment. The investment strategy is reviewed annually.

Due to the Grace Baptist Trust Corporation grant mentioned above as well as giving from church members to our Virus Relief Fund, the Church’s income increased to over £250,000 in the year and the Financial Statements have therefore been prepared on an accruals basis and in line with the Charities SORP as required by the Charity Commission. We anticipate income will again exceed £250,000 in 2021 as a result of grants and gifts towards the Waterloo Street renovations but reduce below that level from 2022 when the first phase of renovation works should have been completed.

Plans for future periods

All our plans for the future are made in dependence on God. We are intending to continue our regular worship, Bible teaching ministry and prayer to give spiritual support to Church members and visitors. We are also hoping to develop further our evangelism with initiatives designed to engage with those who are not currently Christians, so that more people in Coventry and beyond, but in the local district of Hillfields in particular, are able to hear and understand and given an opportunity to respond to the message of the Christian gospel. To this end we are actively thinking through new opportunities for outreach, building relationships and providing practical support to the local community based particularly at the Waterloo Street site. We plan to continue the renovations to the Waterloo Street building to ensure it is suitable as a base for ministry.

We continue to seek as far as we can to meet the need for pastoral help and support for families, men and women in our fellowship which continues to increase as the church grows.

We hope to see the use of our buildings increase for both church ministries and as a resource for our local community; rooms are available for hire to external groups.

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INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF HILLFIELDS CHURCH COVENTRY I report on the accounts of the Church for the year ended 31 December 2020, which are set out on pages 6t08. Respertlve responsibilities of trustee5 and independent examiner The Church's trustees are responsible for the preparation of the accounts. The twstees consider that an audit is not required for this year (under section 44121 of the Charities Act 2011 Ithe 2011 Actll and that an independent examination is needed. It is my responsibility to: Examine the accounts under section 145 of the 2011 Art,. To follow the procedures laid down in the General Directions given by the Charity Commissioners under section 145151 Ibl of the 2011 Act,. and To state whether particular matters have come to my attention. Basis of independent examlner's report My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accountinB records kept by the charity and a comparison of the accounts presented with those record5. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustee5 concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given a5 to whether the accounts present a 'true and fair, view and the report is limited to those matters set out in the statement below. Independent examiner's ststement The chariws gross income exceeded £250,000 and l am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England & Wales. I have completed my examination. I confirm that no material matters have come to my attention in connettion with the examination which give me cause to believe that, in any material respect the accounting records were not kept in accordance with section 130 of the Charfcies Att- or the accounts did not accord with the accounting records,. or the accounts did 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 fairf 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. D C S Cooke MA (Oxonl FCA FCIE David Cooke & Co 5 Briar Close Banbury OX16 9DS 12 October 2021

Statement of Financial Activities

for the year ended 31 December 2020

Designated Restricted
General Fund funds income funds Total this year Total last year
£ £ £ £
Incoming resources (Note 3)
Income from
Donations and legacies 175,557 - 82,073 257,630 206,347
Charitable activities 5,159 - - 5,159 14,457
Investments - - - - 12
Total incoming resources 180,716 - 82,073 262,789 220,816
Resources expended (Notes 4-7)
Charitable activities 159,825 11,683 93,567 265,075 226,890
Total resources expended 159,825 11,683 93,567 265,075 226,890
Net income/(expenditure) 20,891 (11,683) (11,494) (2,286) (6,074)
Transfers between funds (23,000) 23,000 - - -
Net movement in funds (2,109) 11,317 (11,494) (2,286) (6,074)
Total funds brought forward 53,514 86,591 56,181 196,286 202,360
Total funds carried forward 51,405 97,908 44,687 194,000 196,286

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Unrestricted Restricted
Note funds income funds Totalthisyear Totallastyear
£ £ £ £
Fixed assets
Tangibleassets 10 24,644 24,644 29,226
Total fixedassets 24,644 24,644 29,226
Currentassets
Debtors 8 7,614 597 8,211 10,728
Cashatbank and inhand 120,254 44,090 164,344 159,912
Total currentassets 127,868 44,687 172,555 170,640
Creditors: l:lmounts fallingduewithin
oneyear 9 3,199 3,199 3,580
Net current assets/(liabilities) 124,669 44,687 169,356 167,060
Totalassetslesscurrent liabilities 149,313 44,687 194,000 196,286
Netassets 149,313 44,687 194,000 196,286
FundsoftheCharity
General Fund 11 51,405 51,405 53,514
Designated Funds 11 97,908 97,908 86,591
Restricted incomefunds 12 44,687 44,687 56,181
I Tota/funds 149,313 44,687 194,000 196,286

Notes to the accounts

Note 1 Basis of preparation

1.1 Basis of accounting

The accounts 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 (FRS102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011.

Hillfields Church Coventry meets the definition of a public benefit entity under FRS102.

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

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

1.2 Change in basis of accounting

Due to income exceeding £250,000 in the year, these accounts are prepared on the accruals basis. In previous years accounts have been prepared on a receipts and payments basis. As a result, all comparative prior year figures have been restated.

Note 2 Accounting policies

2.1 Reconciliation with Receipts & Payments basis

Reconciliation of funds per Receipts & Payments basis to funds determined under FRS 102

31-Dec-19
£
Prior period fund balances as
previously stated 159,912
Adjustments:
Debtors 10,728
Creditors (3,580)
Fixed Asset Net Book Value 29,226
Prior period fund balances as restated 196,286

Reconcilation of net income/expenditure per Receipts & Payments basis to net income/(net expenditure) under FRS 102

£
Prior period net expenditure as previously
stated (18,689)
Adjustments:
Unclaimed Gift Aid 2,761
Expenses paid in year relating to other periods 6,962
Expenses paid on other years relating to 2019 (6,871)
Purchase of fixed assets 16,213
Depreciation (6,450)
Prior period net expenditure as restated (6,074)

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Notes to the accounts (cont.)

2.2 Income

Recognition of incoming These are included in the Statement of Financial Activities (SoFA) when: resources · the charity becomes entitled to the resources; · it is more likely than not that the trustees will receive the resources; and · the monetary value can be measured with sufficient reliability. Offsetting There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102. Grants and donations Grants and donations are only included in the SoFA when the general income recognition criteria are met. Tax reclaims on donations Gift Aid receivable is included in income when there is a valid declaration from the donor. and gifts Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise. Volunteer help The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report. Income from interest, This is included in the accounts when receipt is probable and the amount receivable can be royalties and dividends measured reliably.

2.3 Expenditure & Liabilities

Liability recognition Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. Grants payable without These are only recognised in the accounts when a commitment has been made and there are performance conditions no conditions to be met relating to the grant which remain in the control of the charity.

2.4 Assets

Tangible fixed assets for These are capitalised if they can be used for more than one year, and cost at least £400. They use by charity are valued at cost or a reasonable value on receipt. Assets are depreciated on a straight line basis over their useful life as follows: - Electronic equipment - 5 years - Furniture, fixtures and fittings - 10 years

Note 3 Analysis of income

Unrestricted Restricted
funds income funds Total funds Prior year
Analysis £ £ £ £
Donations and legacies Donations 146,761 49,436 196,197 170,877
Legacies - - - 4,000
Gift Aid 28,796 5,837 34,633 31,470
Grants - 26,800 26,800 -
**Total ** 175,557 82,073 257,630 206,347
Charitable activities Event & activity 2,653 - 2,653 8,413
Café sales 1,756 - 1,756 3,599
Rent receivable 750 - 750 2,445
**Total ** 5,159 - 5,159 14,457
Investment income
Interest receivable - - - 12
Total - - - 12
180,716 82,073 262,789 220,816

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Notes to the accounts (cont)

Note 4 Analysis of resources expended

Restricted
Unrestricted Designated income
funds funds funds Total funds Prior year
Analysis £ £ £ £ £
Charitable Officeholder and employee-
activities related costs 96,577 - 29,385 125,962 105,131
Payments to
preachers/speakers 999 - - 999 2,077
Gifts and financial support
given 22,961 - 23,942 46,903 43,508
Children's and youth ministry 814 - 120 934 8,089
18-30s ministry 343 - - 343 2,749
Church holiday and other
events 715 - - 715 2,297
Café costs 769 - - 769 2,243
Other activities 707 - - 707 2,693
Training and conferences 1,300 11,683 9,010 21,993 15,538
Equipment and resources 2,605 - - 2,605 4,246
Utilities, rates and insurance 15,026 - - 15,026 15,205
Minibus expenses 1,499 - - 1,499 3,376
Repairs and maintenance 4,148 - 31,110 35,258 3,807
Licences and other fees 2,789 - - 2,789 3,385
Printing & copying 1,327 - - 1,327 1,372
Consumables and sundry
expenses 1,784 - - 1,784 2,919
Depreciation 5,062 - - 5,062 6,450
Legal & accountancy fees 400 - - 400 1,807
**Total ** 159,825 11,683 93,567 265,075 226,890

Note 5 Details of certain items of expenditure

5.1 Fees for examination or audit of the accounts

£400 is due to the independent examiner (2019: £350) for the examination of the accounts and £nil for other services (2019: £nil).

Note 6 Paid employees

6.1 Staff Costs

This year Last year
£ £

Salaries and wages
85,134 77,192

Employer’s National Insurance costs
1,633 1,025

Pension costs (defined contribution scheme)
11,740 10,181

Other benefits
27,455 13,941

Total staff costs
125,962 102,339

No employees received employee benefits (excluding employer pension costs) for the reporting period of more than £60,000.

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Notes to the accounts (cont)

6.2 Average head count in the year This year
Number
Last year
Number
Charitable Activities 7.5 7
Total 7.5 7

6.3 Pensions

The charity operates a defined contribution benefit scheme and contributes to NEST or an alternative scheme of the staff members' choice.

Note 7 Grantmaking

7.1 Analysis of grants paid (included in cost of charitable activities)

Grants to institutions Grants to individuals
Purpose for which grants made Total amount £ Total amount £
Support of missionary workers 13,580 3,620
Overseas charitable projects 8,796 -
Gifts to UK churches and Christian charities 3,107 -
Bible College study - 12,690
Support for student ministry 580 -
Support for individuals in need 200 10,579
Total this year 26,263 26,889
Total last year 30,837 13,152

There were no costs incurred in grantmaking (2019: £nil).

7.2 Grants made to institutions

Names of institutions Purpose Total amount of
grants paid £
Reach Beyond Missionary Support 10,000
MediAfrique, Togo Charity Project 6,615
Wycliffe Bible Translators Missionary Support 3,000
King of Kings Church, South Africa Charity Project 2,181
Willenhall Free Church
General Activities
2,017
Gifts of £1,000 or less to 11 organisations 2,450
Total grants to institutions 26,263

Note 8 Debtors and prepayments

Analysis of debtors

Analysis of debtors
This year Last year
£ £
Income Tax recoverable 4,222 5,857
Prepayments 3,989 4,871
**Total ** 8,211 10,728

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Notes to the accounts (cont)

Note 9 Creditors and accruals

Analysis of creditors

Analysis of creditors
Amounts falling due within one year
This year
Last year
£ £
Social Security and Other Taxation 1,492 1,762
Accruals 1,707 1,818
**Total ** 3,199 3,580

Note 10 Tangible fixed assets

Fixtures, fittings Motor vehicles Total
and equipment
£ £
10.1 Cost or valuation
Balance brought forward 51,158 16,320 67,478
Additions 480 - 480
Disposals - - -
Balance carried forward 51,638 16,320 67,958
10.2 Accumulated depreciation and impairment provisions
Balance brought forward 27,644 10,608 38,252
Depreciation charge for year 3,430 1,632 5,062
Disposals - - -
Balance carried forward 31,074 12,240 43,314
10.3 Net book value
Brought forward 23,514 5,712 29,226
Carried forward 20,564 4,080 24,644

Note 11 Unrestricted and designated funds

Fund balances Incoming Outgoing Fund balances
brought forward resources resources Transfers carried forward
£ £ £ £ £
Unrestricted funds
General Fund 53,514 180,716 (159,825) (23,000) 51,405
Designated funds
Building Fund 31,538 - - - 31,538
Ministry Fund 43,935 - (11,683) 21,000 53,252
Minibus Replacement Fund 11,118 - - 2,000 13,118
Total Funds 140,105 180,716 (171,508) - 149,313

The designated Building Fund is money set aside by the church from existing funds towards the cost of renovation work at the Waterloo Street site.

The Ministry fund is designated by the church to be put towards the costs of employing an additional worker should the church be unable to cover the full cost from regular income in the short term, as well as funding ministry training costs.

11.3 Transfers between funds

From Fund (Name) General Fund General Fund

To Fund (Name) Reason Amount
Ministry Fund Allocate 2020 surplus 21,000
Minibus Replacement Fund Allocate 2020 surplus 2,000

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Notes to the accounts (cont)

Note 12 Endowment and restricted income funds

12.1 Funds held

The church holds no endowment funds. The following are the restricted income funds held by the church:

Fund Name

Building Fund Pastor Fund Virus Relief Fund Special Collections Ministry Fund Specific Ministries Help Fund Hope4Babies Overseas Workers Support Short Term Mission Fund Church Holiday Support Fund

Purpose and Restrictions

To fund the church building project. To fund the stipend of a pastor. To support those in the congregation in financial need as a result of COVID-19. To assist selected organisations and individuals. To fund church worker costs and ministry training. Gifts given for specific ministries of the church. Ad hoc assistance to individuals in need. In support of the Hope4Babies project in South Africa. Support for individual Christian workers overseas To support short term mission opportunities for church members. To assist individuals in paying church holiday charges.

12.2 Movements of funds

Fund balances Incoming Outgoing Fund balances
brought forward resources resources Transfers carried forward
Fund names £ £ £ £ £
Building Fund 8,692 35,067 (31,110) - 12,649
Pastor Fund 30,931 - (29,385) - 1,546
Virus Relief Fund 21,512 (4,534) - 16,978
Special Collections 6,044 9,160 (15,101) - 103
Ministry Fund 47 9,051 (9,011) - 87
Specific Ministries 3,898 973 (120) - 4,751
Help Fund 2,780 1,625 (175) - 4,230
Hope4Babies (16) 2,410 (2,181) - 213
Overseas Workers Support 342 1,650 (1,950) 42
Short Term Mission Fund 3,144 - - - 3,144
Church Holiday Support Fund 319 625 - - 944
Total Funds 56,181 82,073 (93,567) - 44,687

Note 13 Transactions with trustees and related parties

13.1 Trustee remuneration and benefits

As permitted by the church constitution,trustees James Young, Simon Hook and Paul Watts received remuneration in their capacity as Pastors. In total this remuneration was as follows:

This year Last year
£ £
Stipends 34,121 35,666
Pension costs 9,640 8,054
Accommodation 27,455 13,941
Total costs 71,216 57,661

13.2 Trustee expenses

None of the Trustees were paid or reimbursed for expenses relating to their services as trustees during the year. (2019:none).

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