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2023-03-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Charity Registration No 1142678

Company Registration No 7659090 (England & Wales)

CHRIST FIRST WATFORD

INFORMATION YEAR ENDED 31 MARCH 2023

Trustees Jerry Abraham Lorraine Duff Andy Smith Alex Steed Elizabeth Holop Secretary Lorraine Duff Charity Registration number 1142678 Company Registration number 7659090 Registered office The Hub Fuller Way Croxley Green Rickmansworth Herts WD3 3PJ Independent Examiner Mr Hayden Watson FCCA The MHH Partnership Ltd Elstree House Watson’s Yard, High Street Cottenham Cambs CB24 8RX Bankers National Westminster Bank plc 72-74 High Street Watford Herts WD17 2GZ

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CHRIST FIRST WATFORD

CONTENTS YEAR ENDED 31 MARCH 2023

Page
Directors’ & Trustees’ report 4 – 8
Statement of Trustees’ responsibilities 9
Independent Examiner’s report to the Trustees 10
Statement of fnancial activities 11
Balance sheet 12
Notes to the fnancial statements 13 – 17

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CHRIST FIRST WATFORD

DIRECTORS’ & TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Trustees of the Charity present their Annual Report and the financial statements for the year ended 31 March 2023.

Objectives and activities of the charity

The Charity’s objectives are for the public benefit to advance the Christian faith in the UK and abroad and to fulfil other purposes which are charitable according to the law of England and Wales.

Our Mission

We put Christ First in every area of our lives and live in a way that demonstrates that Jesus is more important to us than anything or anyone else.

We see the good news of Jesus Christ Transforming Lives as it is clearly taught and practically demonstrated to those around us.

We are Building Community that welcomes everyone and celebrates our diverse ethnic and cultural backgrounds; creating an environment where people can hear the practical and life changing message of Jesus in an accessible way.

Our Core Values

As we follow the mission of Jesus we hold to these eight core values:

Building a culture of Courage, we choose to follow God on the adventure of faith. We speak and act in a way that makes it clear that He alone is Lord of our lives. We put aside our reputation & personal comfort to be obedient to the call of God;

Building a culture of Honour, we put Christ first, honouring Him above all else through prayer & a life lived as worship. We aim to outdo one another in showing honour, this means we esteem others more highly than ourselves, always seeking to encourage and bless;

Building a culture of Service, we imitate Jesus who took on the nature of a servant; choosing to surrender our lives as instruments to God for Him to use as He sees fit; placing His will above our own & building community by serving others;

Building a culture of Development, we will encourage & challenge one another to grow in our faith and relationship with God. As a church we will provide opportunities to train and improve both abilities and character;

Building a culture of Generosity, we recognise that everything we have is from God, so led by the Holy Spirit we give generously & joyfully of our time, lives & money. This is an act of worship to Jesus & comes before our own comfort or financial security;

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CHRIST FIRST WATFORD

DIRECTORS’ & TRUSTEES' REPORT (cont) FOR THE YEAR ENDED 31 MARCH 2023

Each aspect of these values and our ministry is supported by financial commitment from the church’s resources.

Review of activities

The Church is based in Watford and holds its regular Sunday morning meetings at The Hub in Croxley Green.

The church has a full programme of events to meet the varying needs of church members and others in the community. During the year, the church has welcomed new members and others who have joined in the various activities summarised below.

Children and young peoples’ activities on Sunday are arranged with the support of many gifted helpers and volunteers who are all DBS checked. The key meetings during the week, which are open to all church members and guests, are our Explore groups where there is opportunity for everyone to be involved. There are other activities during the week and special events, with all the details available on the Charity’s website at www.x1church.com.

All of our activities are open to members of the public and we are actively involved with other churches in Watford through the ‘Christians across Watford’ link.

In planning the Charity’s activities, the Trustees have regard to the Charity Commission’s general guidance on public benefit. The ways in which the Charity works for the public benefit include:

Achievements and performance

During the past year, we have seen a number of encouraging developments, the main ones being:

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CHRIST FIRST WATFORD

DIRECTORS’ & TRUSTEES' REPORT (cont) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

During the year ended 31 March 2023, tithes and offerings amounted to £116,000 (2022: £138,000); and including other income and interest received, total income amounted to £167,000 (2022: £197,000). Total expenses amounted to £211,000 (2022: £175,000), primarily for the church’s activities in Watford but also including grants to missions and individuals.

The decrease in tithes and offerings in the year was attributable to a few individual donors who ceased to attend the church during the year. The church’s external ministry associated with the Afghan refugees continued during the year, with the amount received as income in connection with this ministry during the year being £34,000 (2022: £41,000), and the amount expensed being £51,000 (2022: £40,000).

Expenses associated with the church’s activities have seen increases in the year, as detailed in note 2 to the financial statements. Increased costs were incurred in connection with the church weekend away and higher catering and deprecation costs were incurred following the completion of the new kitchen at the Hub. Grants amounted to £13,000 (2022: £18,000) as detailed in note 3 to the financial statements.

The church’s active ministry serves and helps those in our area and beyond who are in need. In addition, the church supports a number of mission activities in the UK and abroad, either helping those in need or developing the work of the Christian church. A minimum of ten per cent of income is allocated to these ministries and, if not spent during the year, any balance is carried forward in the Mercy & Mission fund which at 31 March 2023 amounted to £881 (2022: £229).

At 31 March 2023, the charity had total funds of £160,466 (2022: £204,817) comprising restricted funds of £(15,169) (2022: £3,867) and unrestricted funds of £175,635 (2022: £200,950). The restricted funds is in deficit as at 31 March 2023, however the charity has a realistic expectation that sufficient income will be received in the year ended 31 March 2024 to cover the shortfall.

Investment & reserves policy

The Trustees have a general power to invest and disinvest the Charity’s funds in furtherance of the Charity’s objects.

The Reserves Policy is established to protect Christ First Watford’s activities as a church from risk of disruption at short notice due to lack of funds. It determines an appropriate level for general reserves, taking into account:

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CHRIST FIRST WATFORD

DIRECTORS’ & TRUSTEES' REPORT (cont) FOR THE YEAR ENDED 31 MARCH 2023

The target level of general reserves is approximately six months operating expenses for the ongoing church activities, which equates to approximately £70,000, plus additional funds to invest in our building. The basis for determining the target level of reserves is kept under review by the Trustees.

Designated funds are those unrestricted funds that have been allocated by the Trustees for particular purposes. The Designated fund for Mercy & Mission has been established to provide funds for specific acts of mercy and mission to support others in need in the UK and abroad. To the extent that ten per cent of the charity’s income is not spent on such mercy and mission, the balance is carried forward to future years. The amount carried forward is kept under review by the Trustees and is taken into account in finalising the operating budget for the coming year.

Risk management

The Trustees keep the principal risks of the Charity under review, have re-assessed the risks during the past year and appropriate preventative actions are developed and monitored.

The principal risks for the charity are:

The Church’s major source of income is from member donations; the number of separate donors who contributed to the activities of the Church during the year was approximately 50. As a result of the wide sources of income, the Trustees consider that there is a low risk to the ongoing work of the Charity should it lose income from some donors.

Plans for the future

The charity has continued to invest in its property, and after the year-end a coffee shop was opened for a trial period, and the charity is currently considering longer-term options for the shop.

The charity will be running a campaign named “Take a step” during the autumn of 2023, and several church members have signed up to an externally run training and development course commencing in the autumn of 2023. The charity intends to continue in its efforts to offer aid and help to the Afghan refugees who are currently living in Watford and as they relocate to other parts of the UK.

Structure, governance and management

Christ First Watford is a Christian charity which was established as a company limited by guarantee on 6 June 2011. It was formed to take over and progress the activities of a previous charity, Christ First, which was founded under trust in 1992 and consequently the new company has objects and aims which are similar to those of the previous Trust. The Charity is a member of the Evangelical Alliance and is working in partnership with New Ground, part of the Newfrontiers family of churches.

The Trustees who served during the year ended 31 March 2023, who are also directors for the purpose of Company law, are listed in the Information section on page 2. No Trustee has any beneficial interest in the Company. There are two members of the Company and each one guarantees to contribute an amount not exceeding £10 in the event of a winding up. The Trustees met on four occasions to discuss the progress of the Charity and to pray for its continued development.

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CHRIST FIRST WATFORD

DIRECTORS’ & TRUSTEES' REPORT (cont) FOR THE YEAR ENDED 31 MARCH 2023

New Trustees are appointed either by a resolution of the existing Trustees or by the Charity in General meeting. A Trustee appointed by a resolution of existing Trustees and a third of all Trustees are required to retire by rotation at each Annual General Meeting.

New Trustees are provided with details of the Charity’s governing documents, Trustees reports and financial statements and a full background on the Charity’s activities. They are also encouraged to access the Charity Commission website for details of Trustee responsibilities, governance guidelines, etc.

Management

The charity is managed on a day-to-day basis by two Elders, Aaron McGovern and Andy Smith, who have responsibility for leading and directing activities. The Elders report on the charity’s progress and future plans at each Trustees’ meeting where the strategic direction and financial budgets are discussed and approved.

Reference and administrative details

The Charity is called Christ First Watford and operates as X1 or X1 Church with its website at www.x1church.com. Details of the Charity’s registration numbers, its registered address, Trustees serving during the year and other administrative details are shown on page 2 of this report.

On behalf of the Directors/Trustees

Mr Alex Steed Acting Chairman Dated: 19 December 2023

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CHRIST FIRST WATFORD

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023

Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial period, which give a true and fair view of the charity’s financial activities during the period and of its financial position at the end of the period.

In preparing financial statements giving a true and fair view, the Trustees should follow best practice and:

The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy the financial position of the charity and which enable them to ensure that the financial statements comply with the applicable law. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees confirm that this Annual Report and the financial statements comply with the statutory requirements and the charity’s governing documents.

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CHRIST FIRST WATFORD

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF CHRIST FIRST WATFORD

Report of the Independent Examiner to the trustees on the accounts of Christ First Watford

I report on the accounts of the company for the year ended 31 March 2023, which are set out on pages 11 - 17.

Respective responsibilities of trustees and examiner

The charity’s trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this period under Section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of the independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. 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 no opinion is given as 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 Statement

In connection with my examination, no matter has come to my attention:

Mr Hayden Watson FCCA The MHH Partnership Ltd Elstree House Watson’s Yard, High Street Cottenham Cambs CB24 8RX

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CHRIST FIRST WATFORD

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Notes
Income and endowments from:
Donations and gifts
Towards church activities
Other activities
Investments - interest receivable
Total income
Expenditure on:
Charitable (church) activities
2
Total expenditure
Net income/(expenditure)/
movement in funds
Reconciliation of funds
Total funds brought forward at
1 April 2022
Total funds carried forward
at 31 March 2023
9/10		 Unrestricted
funds
Restricted
funds
Total
Unrestricted
funds
Restricted
funds
Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
116,296
34,049
150,345
138,246
48,172
186,418
4,708
-
4,708
872
-
872
11,333
-
11,333
10,172
-
10,172
686
-
686
18
-
18
133,023
34,049
167,072
149,308
48,172
197,480
158,338
53,085
211,423
130,503
44,305
174,808
158,338
53,085
211,423
130,503
44,305
174,808
(25,315)
(19,036)
(44,351)
18,805
3,867
22,672
200,950
3,867
204,817
182,145
-
182,145
175,635
(15,169)
160,466
200,950
3,867
204,817

There are no other gains or losses other than the result for the year. All of the activities of the Charity are classed as continuing.

11

CHRIST FIRST WATFORD

BALANCE SHEET AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
6
Current assets
Debtors
7
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within one year
8
Net current assets
Total net assets
The funds of the charity:
Restricted income funds
9/11
Unrestricted funds
Designated fund – Mercy & Mission
10
Undesignated funds
10
Total unrestricted funds
Total charity funds		 2023
£
£
12,027
18,450
136,386
154,836
(6,397)
148,439
160,466
(15,169)
881
174,754
175,635
160,466		 2022 2022
£
18,450
136,386
154,836
(6,397)		 £
22,354
181,877
204,231
(10,200)		 £
10,786
194,031
204,817
3,867
229
200,721
200,950
204,817

For the year ended 31 March 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 (‘the Act’)relating to small companies.

No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.

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

The financial statements on pages 11 to 17 were approved by the Trustees on 19 December 2023

..............................

Mr Alex Steed Chairman

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CHRIST FIRST WATFORD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

1.1 Basis of preparation

The financial statements are prepared under the historical cost convention, on a going concern basis, as the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future.

The financial statements have been prepared in accordance with the Companies Act 2006, the Charities Act 2011 and the Charities SORP FRS 102.

1.2 Income

Income represents funds received by the Charity for the support of its objectives and activities. Incoming resources, including income tax recoverable, are accounted for on a receivable basis.

The Charity benefits from the services of volunteers in most areas of the church’s activities. The value of services provided by volunteers has not been included in the financial statements because that value cannot be reasonably quantified in financial terms.

1.3 Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources, inclusive of VAT which is not recoverable.

1.4 Tangible fixed assets and depreciation

Church equipment Between 3 and 5 years Leasehold improvements The lease term

Individual items of equipment are capitalised when the purchase price is £1,000 or above.

1.5 Pensions

The Charity provides contributions to the personal pension funds of staff working two days per week or more. The pension costs charged in the financial statements represent the contributions payable by the charity during the year.

1.6 Fund accounting

The funds held by the charity are:

1.7 Taxation

The Church is not subject to Income Tax. It is entitled to claim from H M Revenue & Customs the tax associated with income received under gift aid.

1.8 Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date.

Leases where the lessor retains a significant portion of the risks and benefits of ownership of the asset are classified as operating leases. Rentals payable are charged in the Statement of Financial Activities on a straight line basis over the lease term.

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CHRIST FIRST WATFORD

NOTES TO THE FINANCIAL STATEMENTS (cont) FOR THE YEAR ENDED 31 MARCH 2023

2 Church activities

Grants payable - see note 3
Church Ministry – see note below
Church activities – direct
Church activities – Afghan ministry
Administration:
Church maintenance/operating costs
Church administration
Governance costs – accountancy
and review fees		 Staf costs
(note 4)
Depreciation
2023
2023
£
£
-
-
65,059
-
-
-
-
-
-
17,028
-
-
-
-
65,059
17,028		 Other
costs
2023
£
13,467
3,848
20,221
50,596
28,788
11,057
1,359
129,336		 Total
2023
£
13,467
68,907
20,221
50,596
45,816
11,057
1,359
211,423		 Total
2022
£
17,853
63,948
7,157
40,048
38,290
6,316
1,196
174,808

Church Ministry includes the cost of full-time and part-time staff salary, pension and expenses and the cost of visiting speakers.

Expenditure on church activities was £211,423 (2022: £174,808), of which £158,338 (2022: £130,503) was unrestricted and £53,085 (2022: £44,305) was restricted.

Operating lease rentals of £5,854 (2022 - £5,854) have been recognised as an expense during the year.

3 Grants payable

Unrestricted
Funds
2023
£
Grants to institutions:
New Ground (including Newday)
5,406
Discipling Nations – Zimbabwe
-
Rope – Kenya Sunshine home
3,000
Wyclife
1,500
Other
771
10,677
Grants to individuals (6 grants; 2022: 6 grants)
301
10,978		 Restricted
funds
2023
£
90
-
-
-
2,399
2,489
-
2,489		 Total
2023
£
5,496
-
3,000
1,500
3,170
13,166
301
13,467		 Total
2022
£
5,496
2,015
3,000
1,500
1,036
13,047
4,806
17,853

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CHRIST FIRST WATFORD

NOTES TO THE FINANCIAL STATEMENTS (cont) FOR THE YEAR ENDED 31 MARCH 2023

4 Employees

Number of employees

The average monthly number of employees during the year was two (2022: two), which comprised one (2022: one) full-time and one (2022: one) part-time employees.

Employment costs

mployment costs
Wages and salaries
Social security costs
Other pension costs		 2023
£
60,830
1,186
3,043
65,059		 2022
£
57,510
1,496
2,876
61,882

There were no employees whose annual emoluments were £60,000 or more.

5 Trustees and Related party transactions

No Trustee or any persons connected with them received any remuneration from the Charity during the year.

Andy Smith, one of the Trustees, is also one of the church Elders and incurs expenses in this role which are reimbursed by the Charity. The expenses are mainly for travel and accommodation in carrying out his duties as an Elder and amounted to £1,893 (2022: £736).

No other expenses were claimed by Trustees.

The aggregate amount of donations to the Charity by Trustees and Related Parties amounted to £29,900 (2022: £59,900).

There were no other Related Party Transactions during the year (2022: nil).

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CHRIST FIRST WATFORD

NOTES TO THE FINANCIAL STATEMENTS (cont) FOR THE YEAR ENDED 31 MARCH 2023

6
Tangible fxed assets
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value:
At 31 March 2022
At 31 March 2023
7
Debtors
Income tax recoverable
Other debtors
Prepayments and accrued income
8
Creditors: amounts falling due within one year
Taxes & social security costs
Accruals and deferred income		 Church
equipment
£
11,983
-
11,983
10,675
1.203
11,878
1,308
105		 Leasehold
improvement
s
£
22,100
18,270
40,370
12,622
15,826
28,448
9,478
11,922
2023
£
4,734
1,061
12,655
18,450
2023
£
1,456
4,941
6,397		 Total
£
34,083
18,270
52,353
23,297
17,029
40,326
10,786
12,027
2022
£
4,643
4,395
13,316
22,354
2022
£
1,438
8,762
10,200

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CHRIST FIRST WATFORD

NOTES TO THE FINANCIAL STATEMENTS (cont) FOR THE YEAR ENDED 31 MARCH 2023

9 Restricted funds

The income funds of the Charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Specifc donations
Afghan ministry fund		 Balance
at 1 April
2022
£
2,674
1,193
3,867		 Movement in funds
£
£
466
(2,489)
33,584
(50,596)
34,049
(53,085)		 Balance at
31 March
2023
£
651
(15,820)
(15,169)

Specific donations have been received and are paid out to those organisations and individuals for whom they were given. These items are included in the analysis of grants in note 3.

The Afghan ministry fund facilitates the support and provision of aid for the Afghan refugees who are located in the Watford area. These activities are accounted for as Church activities, in note 2.

10 Unrestricted funds

Balances at 1 April 2022
Net surplus for the year
Transfer to Mercy & Mission reserve
Balances at 31 March 2023		 Undesignated
funds
£
200,721
(25,315)
(652)
174,754		 Designated
fund – Mercy &
Mission
£
229
-
652
881		 Total
£
200,950
(25,315)
-
175,635

The Designated fund – Mercy & Mission reserve represents funds held for activities of mercy and mission within Watford and beyond. Ten per cent of donations and gifts to the church are allocated to Mercy & Mission ministry and to the extent the funds are not spent in the year; they are carried forward for future expenditure and designated as such in these accounts.

11 Analysis of net assets between funds

Fund balances at 31 March 2023 are represented by:
Tangible fxed assets
Current assets
Creditors: amounts falling due within one year		 Unrestricted
funds
£
12,027
170,005
(6,397)
75,635		 Restricted
funds
£
-
(15,169)
-
(15,169)		 Total
£
12,027
154,836
(6,397)
160,466

17