## **Annual Report FY 2020** **Divine Exchan e Christian Centre g** **Table of Contents** ## **Contents** To Our Stakeholders – Trustees’ Report__________________________________________ 1 Financial Summary__________________________________________________________ 7 Financial Statements ________________________________________________________ 8 Notes to Financial Statements _________________________________________________11 Independent Auditor’s Report _________________________________________________ 25 Church Information _________________________________________________________ 26 Church Information _________________________________________________________ 27 i ## **To Our Stakeholders – Trustees’ Report** _The Divine Exchange Christian Centre aims to increase awareness of_ ## **To Our Stakeholders – Trustees’ Report** _God’s_ _presence and to celebrate_ _God’s love;_ _encourage learning and caring;_ _encourage community service and support every opportunity of discipleship in the Christian faith._ 1 **To Our Stakeholders – Trustees’ Report** ## **Strategic Highlights** The aim of Divine Exchange Christian Centre (registered charity number 1144013) is to fulfil its divine calling, which is to respond to the gospel of God’s love in Christ and to live out its discipleship in worship and mission. It does this via its strategic objectives, which are reported to our stakeholders. Establishment of the Divine Exchange Bible Institute is an opportunity to train new Pastoral students in the ministry in order to have a resource of people who will be willing to establish new churches and continue to publish the Gospel. In terms of the city of Leeds, this is achieved through evangelical events that are carried out in Leeds City Centre on a periodic basis. In the current financial year, the evangelical activities have been limited due to the restrictions of the pandemic and the national lockdown. The church is in East part of Leeds which has become a cosmopolitan community area with new migrants from Eastern Europe and East Africa. The blend of cultural differences has resulted in new opportunities to connect to other faiths that the church has never had access to. This has enhanced the vision of evangelism as one of the church objectives of working in the community. The voluntary income deriving from church giving, reduced by £13k in comaprison to last year to £54k. The church has faced common uncertainities with regards to closure of the church and the requirement to establish new ways of working by transferring services to online. This uncertain period was also applicable to church members and community. The church has made significant progress in publishing the Gopsel to the surrounding towns in West Yorkshire. One of the most important strategic developments has been the estbalishements of the church member base in the town of Halifax, West Yorkshire. The church now has a large number of church members who travel from Halifax to Leeds as part of the Sunday church service . During the pandemic period all services were transferred online once the locked down period initaited. With regards to the second line of defence, the Divine Christian Exchange Church has soought to procure accountancy services from a local firm of Accountants in Leeds that will provide accountancy services and consultancy services on an ad-hoc basis . During the financial year, the church increased its charitable activities in the community by enabling new programs that are detailed below; - Food parcels were provided to the those in need and out of employment; ## **To Our Stakeholders – Trustees’ Report** - Telephone counselling services were provided to families who faced bereavement due to Covid19 or those who were in isolation; - The childrens ministry intensified its outreach work by distributing books to familes with children with the aim on supporting home schooling; and - Provison of online church services via social media. ## **Financial Highlights** **----- Start of picture text -----**
-
Divine Exchange Christian Centre cash trend
110000 +35,115
100000
-714 -357 -21,108
90000
80000 - -52 -6,328
1,159
-
70000 1,150
53818 -1,028-2,223
60000 -2,536-
17,382
50000 -7
-
6,083
40000 -2,273 -59 -1,067 -10,567
30000 -2,007
12835.24
20000
10000
0
**----- End of picture text -----**
The report above shows the real income and expenditure position before depreciation costs of £12.8k. In the current financial period to the end of September 2020, the church managed to end the year with a net position of £12,835 in comparison to the significant deficits reported last year equating to (£1,128) 3 **To Our Stakeholders – Trustees’ Report** The return to financial balance is a direct response to the new assurance processes to ensure efficient and effective cash management processes are in place. The church experienced a period of operational problems in relation to the rental of church premises which resulted in additional operational expenses equating to £2,272 of rental equipment in order to ensure the continuation of church services before the lockdown. These operational risks have been considered and will be mitigated in 2021. ## **Worship and prayer** The Divine Exchange Christian Centre was keen to offer a range of services during the lockdown, these services have been daily and weekly over the course of the year that our community find both beneficial and spiritually fulfilling. For example, evening prayers via social media provide a quiet, intimate, and reflective environment for worship whilst opportunities are provided for people to engage in more outgoing worship such as that provided by the online conferences. ## **Youth ministry** Our youth ministry has continued to evolve in reflect of the fluidity of the church membership. We have an ever-growing number of students involved in a variety of programs aimed at increasing bible knowledge and discipleship, these include Dive Deep, Middle School Friday nights, High School Community Group. As part of the transformation to new ways of providing services most of these activities were transferred to online platforms. ## **Volunteers** We would like to thank all the volunteers who work so hard to make our church the lively and vibrant community it is. This recognition extends to all volunteers who serve in various capacities and continue to sacrifice their time in ensuring that the gospel continue to be spread in West Yorkshire. The church has focused on developing Christian disciples who contribute to the smooth running of the church and the services in general. The number of volunteers is fluid as a correlation to the church attendance. The church has ensured that the volunteers are signed up to detailed role description to thus ensuring mitigation of any potential risks. This strategic objective includes ensuring adequate insurance cover. 4 **To Our Stakeholders – Trustees’ Report** ## **Organisation and Management** The overall management of the charity is the responsibility of the trustees who are elected and co-opted under the terms of the trust deed Day to Day project activity of the charity is managed and carried out by the volunteers and Pastoral leadership team. During the financial period 2019-2020, the church was engaged in various activities which include; - Fasting and prayers - Online conferences and free gospel concerts - Women Outreaches - Youth Outreaches - A food bank and feed the needy project ## **Future Development** The charity is currently working towards securing a new lease contract that will enable the church to carry out a varied array of activities without the limitations of space and cost related to rent of a shared building. This was one of the planned projects for 2018/19 which was rolled over to 2019/20 as part of the response to the pandemic lockdown. We intend to maintain our existing range of community activities working in partnership with the local community, to enhance this vision, the church has recruited a full-time church Pastor to drive forward the vision of the church. ## **Governing Document** Divine Exchange Christian Centre is a registered charity and is governed by a trust deed. Detailed below is the Trustees membership for the financial year to October 2019. Kelechi N Chukueke Anna O Edevbie Oghenetega Akpowan 5 **To Our Stakeholders – Trustees’ Report** The Pastoral work of the church is managed by Pastor Ovie, who has assumed a part time role in the financial period. ## **Statement of Trustees’ responsibilities** Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity. The Trustees acknowledge that the financial states give a true and fair view of the state of affairs of the charity. This responsibility is discharged and evidenced by the signature below. On behalf of the Trustees 04/06/2021 ……………………………. ……………………….. Name Date 6 **Financial Summary** ## **Financial Summary** As part of the ongoing reconfiguration of the assurance and governance processes the church has made significant changes to the operational procedures of the church that have resulted in significant cost savings. As part of the review of the financial statements, it will be noted that significant savings have been made to costs for the year to date and the trend is continuing in the subsequent year as new premises are sought as mentioned above. 7 **Financial Statements** ## **Financial Statements** ## **Statement of Comprehensive Income and Statement of Financial Position** |**Section A Statement of Comprehensive Income**|**Section A Statement of Comprehensive Income**|**Section A Statement of Comprehensive Income**|**Section A Statement of Comprehensive Income**||| |---|---|---|---|---|---| |**categories by activity**
Guidance Notes
**Incoming resources (Note 3)**
**Income and endowments from:**
Donations and legacies
S01
Charitable activities
S02|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Endowment**
**funds**
**£**
**£**
**£**
F01
F02
F03|||
**Total funds**
**£**
F04|**Prior year funds**
**£**
F05| |||||0|| ||55,090|||55,090|66,591| |Other trading activities
S03
Investments
S04
Separate material item of income
S05
Gidft Aid
S06||||0|| |||||0|| |||||0|| ||33,843|||33,843|27,298| |S07
**_Total_**|**88,933**|**0**|**0**|**88,933**|**93,889**| |**Resources expended (Note 6)**
**Expenditure on:**
Raising funds
S08|||||| ||17,717|||17,717|33,109| |Charitable activities
S09|58,380|||58,380|60,664| |Separate material item of expense
S10
Other
S11||||0|| |||||0|1,244| |S12
**_Total_**|**76,097**|**0**|**0**|**76,097**|**95,017**| |S13
Net gains/(losses) on investments
S14
S15
**Extraordinary items**
S16
S17
S18
Other gains/(losses)
S19
S20
**_Reconciliation of funds:_**
S21
**_Net movement in funds_**
Total funds brought forw ard
**Net income/(expenditure) before investment**
**gains/(losses)**
**Net income/(expenditure)**
**Transfers between funds**
**Other recognised** **gains/(losses):**
Gains and losses on revaluation of fixed assets for the charity’s
ow n use|||||| ||12,836|0|0|12,836|(1,128)| |||||0|| ||12,836|0|0|12,836|(1,128)| |||||0|| |||||0|| ||||||| |||||0|| |||||0|(45,666)| ||12,836|0|0|12,836|(46,794)| ||||||| ||30,410|0|0|30,410|77,204| |S22
**_Total funds carried forward_**|**43,246**|**0**|**0**|**43,246**|**30,410**| 8 ## **Financial Statements** **----- Start of picture text -----**
Section B Statement of Financial Position
Restricted
Unrestricted income Endowment Total this Total last
funds funds funds year year
£ £ £ £ £
Fixed assets F01 F02 F03 F04 F05
Intangible assets (Note 15) B01 - - - - -
Tangible assets (Note 14) B02 8,826 - - 8,826 12,276
Heritage assets (Note 16) B03 - - - - -
Investments (Note 17) B04 - - - - -
Total fixed assets B05 8,826 - - 8,826 12,276
Current assets
Stocks (Note 18) B06 - - - - -
Debtors (Note 19) B07 - - -
Investments (Note 17.4) B08 - - - - -
Cash at bank and in hand (Note 24) B09 36,927 - - 36,927 18,134
Total current assets B10 36,927 - - 36,927 18,134
Creditors: amounts falling due within
one year (Note 20) B11 - - -
Net current assets/(liabilities) B12 36,927 - - 36,927 18,134
Total assets less current liabilities B13 45,753 - - 45,753 30,410
Creditors: amounts falling due after
one year (Note 20) B14 - - - - -
Provisions for liabilities B15 - - - - -
Total net assets or liabilities B16 45,753 - - 45,753 30,410
Funds of the Charity
Endowment funds (Note 27) B17 - - -
Restricted income funds (Note 27) B18 - - -
Unrestricted funds B19 45,753 - 45,753 30,410
Revaluation reserve B20 -
Total funds B21 45,753 - - 45,753 30,410
Date of
Signature Print Name approval
dd/mm/yyyy
Kelechi N Chukueke 04/06/2021
Guidance Notes
**----- End of picture text -----**
• 9 **Notes to Financial Statements** ## **Notes to Financial Statements** ## Accounting Policies ## (a) Basis of preparation The financial statements have been prepared under the historic cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2005) issued in March 2005, and applicable UK Accounting Standards and the Charities Act 1993. ## (b) Funds structure Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have set aside resources for a specific purpose. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor. Divine Exchange Christian Centre does not have restricted funds to report for the current financial period of 2019 to 2020. Further details of each fund are disclosed in notes to accounts. ## (c) Incoming resources All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability. The following specific policies are applied to particular categories of income: Voluntary income is received by way of donations and is included in full in the Statement of Financial Activities when receivable. The value of services donated by volunteers has not been included in these accounts, except where the services provided are in the nature of professional services where a fee would otherwise be charged. Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. . 11 **Notes to Financial Statements** . ## (d) Governance costs Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity, and include its professional fees and costs linked to the strategic management of the charity. ## (e) Non-Current assets and depreciation All assets costing more than £1000 are capitalised and at historic cost. Fixed assets are stated at cost less accumulated depreciation. Depreciation is charged on furniture and equipment which is written off on a reducing balance basis over their estimated useful lives: Asset category Annual rate Fixtures and fittings 18% Motor Vehicle 18% The charity is exempt from tax on Income on its charitable activities but is not exempt from Value Added Tax. Irrecoverable VAT is included in the cost of those items to which it relates. 12 Notes to Financial Statements 13 ## **Notes to Financial Statements** ||**Note 3**|**Analysis of income**|**Analysis of income**|**Analysis of income**|**Analysis of income**|**Analysis of income**| |---|---|---|---|---|---|---| |**Donations**
**and**
**legacies:**|**Analysis**|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Endowment**
**funds**
**Total funds**
**Prior year**
**£**
**£**||||| ||Donations and gifts|-|-|-|-|-| ||Gift Aid||-|-|-|-| ||Legacies|-|-|-|-|-| ||General grants provided by
government/other charities|-|-|-|-|-| ||Membership subscriptions and
sponsorships which are in substance
donations||-|-|-|| ||Donatedgoods,facilities and services|-|-|-|-|-| ||Other||-|-|-|| ||**Total**|**- - - - -**||||| |**Charitable**
**activities:**||||||| |||-|-|-|-|-| ||Voluntary givings and Offerings|53,818|-|-|53,818|66,591| ||Gift Aid|33,843|-|-|33,843|25,278| ||Other|1,272|-|-|1,272|2,020| ||**Total**|**88,933 - - 88,933 93,889**||||| |**Other**
**trading**
**activities:**||||||| |||-|-|-|-|-| |||-|-|-|-|-| |||-|-|-|-|-| ||Other|-|-|-|-|-| ||**Total **|**- - - - -**||||| |**Income from**
**investments:**||||||| ||Interest income
|-|-|-|-|-| ||Dividend income
|-|-|-|-|-| ||Rental and leasing income|-|-|-|-|-| ||Other|-|-|-|-|-| ||**Total **|**- - - - -**||||| |**Separate**
**material item**
**of income:**||||||| |||-|-|-|-|-| |||-|-|-|-|-| |||-|-|-|-|-| |||-|-|-|-|-| ||**Total **|**- - - - -**||||| |**Other:**||||||| ||Conversion of endowment funds into
income|-|-|-|-|-| ||Gain on disposal of a tangible fixed asset
held for charity's own use|-|-|-|-|-| ||Gain on disposal of a programme related
investment|-|-|-|-|-| ||Royalties from the exploitation of intellectual
property rights|-|-|-|-|-| ||Other|-|-|-|-|-| ||**Total **|**- - - - -**||||| |||||||| |**TOTAL INCOME**||**88,933**|**-**|**-**|**88,933**|**93,889**| |14
**Other information:**
**Where any endowment fund is converted into income in the**
**reporting period, please give the reason for the conversion.**
**All income in the prior year was unrestricted except for:**
**(please provide description and amounts)**
**Within the income items above the following items are**
**material: (please disclose the nature, amount and any prior**
**year amounts)**||||||| |||**not applicable**||||| |||||||| |||
**not applicable**||||| |||||||| |||**not applicable**||||| |||||||| **Notes to Financial Statements** |**Note 4**|**Analysis of receipts ofgovernmentgrants**|**Analysis of receipts ofgovernmentgrants**|**Analysis of receipts ofgovernmentgrants**| |---|---|---|---| ||||| |**Government grant 1**
**Government grant 2**
**Government grant 3**
**Other**|**Description**|**This year**
**Last year**
**£**
**£**|| ||**Not applicable**|-|-| ||**Not applicable**|-|-| ||**Not applicable**|-|-| ||**Not applicable**|-|-| ||**Total**|**-**|**-**| |**_Please provide details of any_**
**_unfulfilled conditions and other_**
**_contingencies attaching to grants_**
**_that have been recognised in_**
**_income._**
**_Please give details of other forms_**
**_of government assistance from_**
**_which the charity has directly_**
**_benefited._**|||| ||||| ||||| ||||| ||||| 15 ## **Notes to Financial Statements** |**Note 5**|**Donatedgoods, facilities and services**|**Donatedgoods, facilities and services**|**Donatedgoods, facilities and services**| |---|---|---|---| |**Use of property**
**Other**
**Seconded staff**||**This year**
**Last year**
**£**
**£**|| |||-|-| |||-|-| |||-|-| |||**-**|**-**| |**Please provide details of the**
**accounting policy for the**
**recognition and valuation of**
**donated goods, facilities and**
**services.**|||| ||**not applicable**||| ||||| |**Please provide details of any**
**unfulfilled conditions and other**
**contingencies attaching to**
**resources from donated goods and**
**services not recognised in income.**|**not applicable**||| ||||| |**Please give details of other forms**
**of other donated goods and**
**services not recognised in the**
**accounts, eg contribution of unpaid**
**volunteers.**|**not applicable**||| **C Notes to the accounts** 16 **Notes to Financial Statements** ## **Note 7 Extraordinary items** ## _**Please explain the nature of each extraordinary item occurring in the period.**_ **----- Start of picture text -----**
This year Last year
Description £ £
Extraordinary item 1 N/A
-
Total extrordinary items
- -
**----- End of picture text -----**
17 **Notes to Financial Statements** ## **Note 10 Details of certain items of expenditure** ## **10.1 Fees for examination of the accounts** _**Please provide details of the amount paid for any statutory external scrutiny of accounts and other services provided by your independent examiner. If nothing was paid please enter '0' in the appropriate box(es).**_ |**_Please provide details of the amount paid for any statutory external scrutiny of_**
**_accounts and other services provided by your independent examiner. If_**
**_nothing was paid please enter '0' in the appropriate box(es)._**||| |---|---|---| |**Other fees (for example: financial advice, consultancy, accountancy services)**
**paid to the independent examiner**
**Independent examiner’s fees**
**Assurance services other than audit or independent examination**
**Tax advisory fees**|**This year**
**£**|**Last year**
**£**| ||1150|1150| ||0|| ||0|0| ||0|0| 18 ## **Notes to Financial Statements** ## **Note 11 Paid employees** |||||| |---|---|---|---|---| |||||| |**11.1 Staff Costs**||||| ||||**Thisyear**|**Lastyear**| ||||**£**|**£**| |**Salaries and wages**|||10,153|-| |**Social security costs**|||380|-| |**Pension costs(defined contribution scheme)**|||33|| |**Other employee benefits**|||-|-| |**Total staff costs**|||10,566|-| |||||| |**Please provide details of expenditure on staff working for the**
**charity whose contracts are with and are paid by a related**
**party**|||**Not applicable**|| |||||| |**_Please give details of the number of employees whose total employee benefits (excluding employer_**
**_pension costs) fell within each band of £10,000 from £60,000 upwards. If there are no such_**
**_transactions, please enter 'true' in the box provided._**||||| |**No employees received employee benefits (excluding**
**employer pension costs) for the reporting period of more**
**than £60,000**|||**not applicable**|| |||||| |**Band**||**Number of employees**||| |**£60,000 to £69,999**||not aplicable||| |**£70,000 to £79,999**||not aplicable||| |**£80,000 to £89,999**||not aplicable||| |**£90,000 to £99,999**||not aplicable||| |**£100,000 to £109,999**||not aplicable||| |||||| |||||| |||||| |||||| |**Please provide the total amount paid**
**to key management personnel**
**(includes trustees and senior**
**management) for their services to the**
**charity**|||not applicable|| |||||| |||||| |**11.2 Average head count in the year**|||**Thisyear**|**Lastyear**| ||||**Number**|**Number**| |
**The parts of the charity in which the**
**employees work**||**Fundraising**||-| |||**Charitable Activities**||-| |||**Governance**|1|1| |||**Other**||-| |~~19~~||**Total**|1|1| Notes to Financial Statements P1th3se C￿nDIere iirfs noi• If the charflvhas lIx¢das￿$ 14.1 Cost or valuatlon Mu&ical Eouipm*nt Fixlur•• and otor V•hicl Church Equiprn*nt Toial At lh8 béglnrb￿g of tha war AdditiOIIS 2219 1.2A6 8.082 Disposals Transfers - At ¥nd of Ih• 14.2 Oepffgclatlon and SLorR8 SLofRB SLorRB SLorRB SLorRB Strawaht L￿0 <"SL-) or Balance C'RB") "Rat At b49innin9 of lh8 ar Di8po6al8 2.748 2.910 D•Pr•c￿lI0￿ 1.374 224 h))pairment At tsf Ih• 14.3 Net boom value Not book valuo at Ih b￿l￿nIng of the N8t b(x)k valu@ at th end ol ihe swr 14.4 Inwalrrnnt Pleaso wovldo a descAprlt7n of rhe ￿￿? clrcumstances that to thv *vCo&**trltlon L 14.5 Rovaluatbon acc040iirfivJ Dollcv of Yevalu*ion Is a(*)Lv the date of rhe revalualloR) n4)¢ ￿p￿￿c4b1e n4X •pp15cable not ap￿Icabl not aP￿￿rA￿l 14.6 ot￿r dl8cIosuw&8 fi) Please stste the anTount of not aP￿icabl tanglblè assofs capllallsafion COn7nilttYJ&nfs for Iheacqulsltlon of Ilxed asset* {iiiJ D￿t￿lS of 8XTSt8nc& arvd carryTng not applicabl Ihe charwly ha5 re5trvCted titleor that not apF￿lcebl **Notes to Financial Statements** |**Note 24 Cash at bank and in hand**||| |---|---|---| |**Cash at bank and on hand**
**Short term cash investments (less than 3 months maturity date)**
**Short term deposits**|**This year**
**£**|**Last year**
**£**| ||-|-| ||-|-| ||36,927|11,012| |**Other adjustment to Prior year cash balance**||7,122| |**Total**|**36,927**|**18,134**| **where practicable, the effect of the change in one or more f re periods.** 22 **Notes to Financial Statements** The notes at pages 14 to 22 form part of the accounts. Approved by the Trustees on date and signed on their behalf by; Name: Kelechi N Chukueke Date: 04/06/2021 23 **Independent Auditor’s Report** ## **Inde endent Auditor’s Re ort p p** 1. We report on the financial statements for the year ended 30th September 2020 which are set out in pages 8 to 21. This report is made solely to the Charity’s Trustees, as a body. 2. Responsibilities of trustees and examiner The charity’s trustee consider that an audit is not required for these financial statements (under section43 (2) of the Charity Commission (under section 43(7) (b) of the Act), and to state whether particular matters have come to our attention. 3. Basis of Independent examiner’s report Our examination was carried out in accordance with Charity SORP. 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 the 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. 4. Independent examiner’s statement In the course of our examination, no matter has come to our attention: which indicates that: Adequate accounting records have not been kept; The financial statements are not in agreement with the accounting records We have received all the information and explanations required for our review ## Brian siyolwe ……………………………………………..on behalf of Beatum Accountancy Services Spen Gardens West Park ,Leeds.LS16 5AQ 25 **Church Information** ## **Church Information** ## **Reference and Administrative Details** ## **Names and addresses of the church for any legislation purpose is:** Charity registered Number 1144013 ## **Registered Address** Unit 3 9 Sheepscar Street South Leeds LS7 1AD Independent examiner Beatum Accounting Services ## **Bankers** NATWEST BANK Leeds Market 66 Vicar Lane Leeds LS17 7JQ Barclays Bank 69 Albion Street West Yorkshire LS1 5AA 27 Church Information 28