Cornerstone Collective of Churches
Report and Accounts Year ended 31 July 2022
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
CORNERSTONE COLLECTIVE OF CHURCHES
COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2022
Trustees
A Craig N Forsythe D Heybourn L Horne J Lockyer (resigned 14 March 2022) M Newberry S Robinson A Taylor J Walsh A Wood
Governing Document
Memorandum and Articles dated 6 July 2012 as amended by Special Resolution on 10 October 20
08133846
Company Registration Number Charity Registration Number 1152099
Registered Office
Cornerstone Church Dovedale Road Liverpool Merseyside L18 1DW
Independent Examiner
Bankers
Sarah Crispin ACA Stewardship 1 Lamb's Passage London EC1Y 8AB HSBC Bank plc Nat West Bank Plc
| Contents | Page |
|---|---|
| Company Information | 1 |
| Trustees' Annual Report | 2 - 6 |
| Independent Examiner's Report | 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Cashflow Statement | 10 |
| Notes to the Accounts | 11 - 19 |
| Detailed Statement of Financial Activities with Comparatives | 20 |
Page 1
CORNERSTONE COLLECTIVE OF CHURCHES (FORMERLY CORNERSTONE CHURCH, LIVERPOOL) TRUSTEES’ ANNUAL REPORT
FOR THE YEAR ENDED 31 JULY 2022
The trustees, who are the charity’s directors for the purposes of company law, have pleasure in submitting the Report and Accounts for the year.
Objects of the charity:
The charity is a charitable company and is governed by its memorandum and articles of association. The objects of the charity, as set out in the governing document are:
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To advance the Christian faith through the public preaching of the gospel
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To demonstrate the Christian faith through the training of men and women for Church leadership, parent/carer and baby/toddler groups, teaching and training of children and young people, involvement in community activities; including the planting of local gospel communities and planting churches.
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In accordance with the Statement of Beliefs in the areas of Liverpool, Merseyside and in such parts of the United Kingdom and the wider world as the trustees may from time to time see fit.
Government:
Responsibility for setting policy and for making operating decisions rests with the trustees who meet regularly to monitor the activities of the charity. New trustees are recruited and appointed by the existing trustees, by a majority vote.
Review of Activities:
In planning the activities, the Trustees have considered the guidance on public benefit issued by the Charity Commission.
In the last 12 months we have seen membership across our churches gradually increase as the effects of Covid19 lockdowns and restrictions move further into the past - the number of adult members has increased from 189 to 221. These increases have been seen across all 4 churches in the Collective, although plans for a team of people to move to a church outside of Cornerstone Collective of Churches in October 2022 will lead to a reduction of 8 adult members. Far from seeing this as a negative movement of the next financial year however, we are excited that we have been able to support and train the new Church Pastor for this team of people through our Church Plant Residency since September 2021 – what better reason for a reduction in membership can there be than having people move to help revitalise a church in an area of Liverpool with a need for the Gospel message? The strengthening of Hope Church Kensington, the church we planted in April 2021, as well as the preparations for the revitalisation of Orrell Park Baptist Church are ways in which we have been fulfilling our 2[nd] and 3[rd] objectives.
We have continued to prioritise the work the churches have been doing with children and young people in our church communities throughout this financial year. Across the churches there are regularly 80-90 children aged 11 and under who participate in ‘Kids’ Church’ (time spent teaching children about God and the Bible, as well as building relationships with each other) on Sunday mornings, alongside the main church services. Older children and young people have a weekly group available to them at Cornerstone Liverpool and at Cornerstone Wirral, where they gather socially and to study the Bible, with extra social events on occasion as well. The Wirral group has only started in this financial year, but already has up to 12 young people attending its weekly sessions, with Liverpool having an average of 20 at its events each week. The two youth groups had planned to have an outdoor activity centre-based weekend in February 2022, but due to extreme weather it was postponed until October 2022 – it is set to be a really exciting and fruitful time for the young people and their leaders. In addition to these Bible-based settings we also run parent/carer and baby/pre-school sessions on a weekly basis which are designed to welcome people into the Liverpool, Wirral and Hope churches for a time of support for the adults, and stimulation and learning through play for the children. An average of 80 people have been attending these various groups this past year, which has been a real blessing to all involved, including the attendees – this also contributes to the fulfilment of our 2[nd] charitable objective.
Page 2
As already touched on, one of the main ways in which we fulfil our first objective as a charity, to advance the Christian faith by the public preaching of the gospel, is through Church Planting. The Hope Church Kensington plant has been going from strength to strength this past year, with the church relocating to run its Sunday services in a church building which had previously been closed, and a subsequent gradual growth in attendance and membership. Additionally, Hope Church has partnered, along with Cornerstone Collective, with the Eden Network to have an Eden Team Leader on staff at the church. This appointment has come part-funded from The Message Trust/Eden Network, and has enabled the outreach work of Hope Church to expand significantly, with the running of its baby/toddler sessions, some events for young people, a community garden project and the potential running of a Food Pantry on the horizon for the next financial year as well. As this role evolves during its 3-year tenure, it aims to have significant impact in all areas of the charitable objectives, although it does also carry with it a need for some additional funding to be raised, which will become more of a focus for the next financial year.
The Cornerstone Collective Training and Coaching area of our work continued to be worked on this past year, with a number of churches/leaders connecting with us for support and training. The most significant aspect of this was through the training of the leader of the team preparing to revitalise Orrell Park Baptist Church on the Church Plant Residency programme. Further expansion of this work has also included the planning of a Revitalisation conference in October 2022, as well as direct input from some of the Collective team members in the work of the church planting organisation, Acts 29, in the UK. This work has developed into a partnership between Acts 29 GB and Cornerstone Collective of Churches, with three staff members being seconded for one or two days per week from September 2022 to work for Acts 29 GB as they seek to support church planting across the UK. These secondments have come as a result of revitalisation work that Steve Robinson (Director of Cornerstone Collective) and other members of the Cornerstone Collective team did between January and July 2022 for Acts 29 GB, after a period of turmoil for the network. The hope is that this partnership will allow both organisations to function well, and for Cornerstone Collective of Churches to continue its endeavours in church planting in the Merseyside region, as per objective 2.
Remedial work has continued on the building used by Cornerstone Church Liverpool, with significant investment in the external structures to address extensive water ingress problems. The financing of this work was in need of further donations, so in March 2022 we launched a fundraising appeal, which by the end of the financial year had seen around £95,000 raised through donations, Gift Aid and VAT reclaims (via the Listed Places of Worship Grant Scheme). The longer-term plans for the building are in the early stages of being finalised, so the bigger renovations needed should be submitted for planning permission and listed building consent in the next financial year.
On a hugely positively note, our churches and organisation ended the financial year on 31[st] July 2022 with a small financial surplus in our ‘General’ fund (our operational finance stream, separate from restricted and designated funds) which is fantastic, and as a Christian organisation we thank God for this. This position enables us to reinvest in the charity and plan for the future in a healthy, stable financial position.
Charity law requires us as Trustees in the role of the Directors of the Charity to prepare financial statements for the accounting year 2021-2022 which gives a true and fair view of the state of the Charity, specifically in terms of its income and expenditure for the year. This includes us:
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Selecting suitable accounting policies and applying them consistently
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Making judgements and estimates that are reasonable and prudent
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Stating whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts
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Preparing the financial statements on a ‘going concern’ basis unless it is inappropriate to presume that the charity will continue in business
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Being aware that we are responsible for keeping adequate accounting records which disclose, with reasonable accuracy at any time, the financial position of the company and which enable us to ensure that the financial statements comply with the Companies Act 2006.
Page 3
We also have a responsibility to safeguard the assets of the charity and to take reasonable steps to prevent fraud.
Financial Review
As the Cornerstone Collective of Churches has spent the year securing running four churches, since the planting of Hope Church in April 2021, the financial profile has remained stable, allowing the functioning of the Collective and its churches to continue to move forward.
At the close of the previous financial year in July 2021, Cornerstone Church Liverpool had made good progress on the necessary remedial works to its new building. This continued in 2021-2022, with significant investment in the external repairs and remedial work needed to stop water ingress and associated significant damage to the fabric of the Grade II listed building continuing. In March 2022, we launched a new round of fundraising, mostly internal within the members and congregation of the church, in order to raise the approximated shortfall of funding to enable the remedial works to be completed, and for the planning application works to be concluded for the more extensive renovations needed in the longer term. By 31 July 2022, the amount raised, through donations, Gift Aid and reclaimed VAT, was in total around £95,000, leaving a remaining shortfall of approximately £50,000 to be raised in the next financial year. The fundraising has allowed work to progress steadily, and we anticipate this continuing in 2022-2023.
A further area in which the organisation has been financially blessed has been support received for Hope Church in Kensington, Liverpool. Many regular financial supporters have continued to support this church, and it has also received significant additional donations from other sources in this financial year as well. St Philemon’s Church in Toxteth, Liverpool donated £7700 towards Hope and the Eden Team Leader role. Hope Church was also blessed with further financial support from a church organisation in the USA which supports church planting (The Church of Eleven22), with £3739.87 being received to support the running costs of the church during the year as well. These additional funds have been put to use in employing the Pastor of the church and all of its associated costs, for use in community engagement and social justice projects, as well as some being kept aside for use in the subsequent financial year. The third significant source of funding has been from The Message Trust, who runs the Eden Network, for the employment of an Eden Team Leader to work at Hope Church and focus on community engagement projects, amongst other areas. In this financial year, they donated £10,550 towards the employment costs of the Eden Team Leader, and an agreement is in place for further funds to be received over a 3-year period, but with a lower amount in years 2 and 3. A final significant donation to Hope Church was £9000 from an individual donor who wants to support Hope Church in their desire to set up a Food Pantry. This was at the latter end of the financial year and the plans for this are not yet in place, but this will be investigated fully during the next financial year.
A further important aspect to review in the finances of the Collective is that the organisation has received some funding each month (£1750) from January to July 2022 towards the employment costs of the Director and Operations Director of the Collective so that they can provide time and expertise to assist the revitalisation of Acts 29 GB. At the close of the financial year an agreement between the two organisations had been drawn up to second the Director of the Collective for 2 days per week, the Operations Director for 1 day per week, and the Lead Pastor of Cornerstone Wirral 1 day per week, so in the next financial year further financial support from Acts 29 GB will enable the finances of Cornerstone Collective to be used for more purposes across the Collective and its churches.
Overall, the finances of the general functioning of the organisation have been managed well. The (general operating) expenditure of 2021-2022 was £382,266 with the income being £383,187, ending the financial year with a general operational surplus of £921. Looking at the broader income and expenditure of the charity, and including all designated and restricted funds received and expenditure from these, the income was £568,810 and there was a surplus of £76,845. In addition, £245,557 of Dovedale restricted funds spent on the building project were capitalised. Budgets have been produced for the 2022-2023 financial year to ensure that all donations we receive are used in accordance with Charity Law and to aid the charity to meet its charitable objectives.
Page 4
Moving into 2022-2023, we are financially stable, but are also acutely aware of the broader economic context of the UK, in which we function. There is a looming Cost of Living Crisis, including with energy bills for organisations such as ours likely to increase significantly. Therefore, we must operate our planned budget with clear prudence to ensure that we can continue to function if our income decreases, or if our expenditure increases beyond what we have anticipated. Our general operating budget for 2022-2023 totals £373,005.22, and this reflects increased costs associated with running a much larger and older building, as well as a new member staff being employed part time at Cornerstone Church Wirral with funds released by the secondment donations from Acts 29 GB. The Assistant Pastor in Training at Cornerstone Church Wirral has another year of £15,000 in funds from a grant from the FIEC which also helps the budgeting significantly. The trustees remain determined that none of the financial undertakings distract us from the charitable aims and objectives of the charity – to spread the Gospel of Jesus Christ and the Salvation he offers across Merseyside, and we remain truly thankful to God for his financial provision and protection of His churches. The unrestricted surplus the charity was left with at the end of 2021-2022 will be reinvested in the charity to ensure that meeting the charitable aims and objectives continue to be our focus. We have committed to continuing in these endeavours and financially we will work hard to allow this to continue with growth of the existing churches, as well as planting new ones.
We are thankful to God for his provision, and we hope and pray that the next 12 months will be even more fruitful and productive as we continue to share the Gospel, plant Churches and move forward with our charitable aims and objectives.
Reserves Policy
The charity recognises its responsibility to pursue a healthy financial position to help safeguard the aims of the charity and its staff. Finances are regulated on a monthly basis and the Cornerstone Collective of Churches budget considers how we can protect, and potentially grow, our reserve to ensure our long-term financial health and sustainability.
Due to the nature of the charity and its aims, it is not unexpected that from time to time the Cornerstone Collective of Churches might function with an operational deficit. However, at any given time, and whenever possible, it will endeavour to hold three months of salary payments (equivalent to approximately £90,000 as of 31 July 2022 when including employer pension and NI contributions) in the bank as a financial reserve as a means to comply with the Code of Governance for Charities and IPC's (Guideline 6.3.1). This is incorporated into our contingency and general fund, which is identified clearly and reviewed regularly. Restricted funds are not considered, except to the extent that they are available to fund salary costs.
The level of unrestricted general cash reserves as of 31[st] July 2022 was around £55,000. After analysing existing funds, cash flow (with income from regular givers remaining broadly stable) and forecasting expenditure based on planned activities, Cornerstone Collective of Churches considered this to be an appropriate reserve at the end of the financial year. Although lower than the amount needed for three months of salary payments, some of the restricted funds (Hope Church Fund and Staff Worker Funding) can be utilised for salaries of individuals to offset the total unrestricted amount needed. This amount and approach is reviewed on an annual basis, as well as being adjusted when new staff are first employed to ensure that there is capacity to increase the cash reserves over time should this be required in order for the charity to comply with Guideline 6.3.1 mentioned earlier.
When it is not possible to maintain our financial reserve to the agreed levels, Cornerstone Collective of Churches is committed to taking sensible steps with the Elders and staff to ensure that the Collective of Churches continues with its charitable aims, whilst also demonstrating the appropriate financial restraint. In these instances, the regular income and regular expenditure is a key consideration, and the reserve would be used in the following ways:
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Fulfilling current obligations (bills and fixed operational costs)
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Payment of Staff Salaries
Page 5
Due to the nature of the Cornerstone Collective of Churches’ activities it is possible to reduce other monthly expenditure quickly, but it must be noted that this would influence the ability of the churches to fulfil their vision and charitable aims.
The Cornerstone Collective of Churches is also committed to increasing its regular income on a consistent basis, particularly as the Collective of Churches grows (numerically in individual churches as well as in the total number of churches in the Collective), but it also reserves its right as a 'faith-based charity' to trust God for such financial provision. The demographic of the Cornerstone Collective of Churches membership and our various partnerships should also add another layer of confidence if the financial reserve was breached.
Risk Statement
The Directors have reviewed the risks to which a small charity operating with few employees is exposed. Appropriate procedures are in place to identify, monitor and review these risks on a regular basis.
Approval
This report, which has been prepared in accordance with the provisions of the Companies Act 20O6 relating to small companies, was approved by the trustees on (date): 6 February 2023 and signed on their behalf by:
Matthew Newberry
Matthew Newberry, Chair of Trustees
Page 6
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF
CORNERSTONE COLLECTIVE OF CHURCHES
('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2022 on pages 8 to 20 following, which have been prepared on the basis of the accounting policies set out on pages 11 and 12.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also 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 Company 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 your charity’s accounts as 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
Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants of England and Wales, which is one of the listed bodies.
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:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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.
Sarah Crispin
Sarah Crispin ACA Institute of Chartered Accountants in England and Wales
Stewardship 1 Lamb's Passage London EC1Y 8AB
Date: 7 February 2023
Page 7
CORNERSTONE COLLECTIVE OF CHURCHES
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 JULY 2022
| Note INCOME AND ENDOWMENTS FROM: Donations 3 Charitable activities 4 Other trading activities 5 Other income Total income and endowments EXPENDITURE ON: Charitable activities 6 Total expenditure Net gains/(losses) on investments Net income/(expenditure) Transfers between funds 13 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 13 |
Unrestricted Funds £ 370,742 3,150 12,396 48 386,337 394,043 394,043 - (7,706) 223,453 215,747 583,524 799,271 |
Restricted Funds £ 181,772 - - 701 182,473 97,922 97,922 - 84,551 (223,453) (138,901) 286,914 148,012 |
Total Funds 2022 £ 552,514 3,150 12,396 750 568,810 491,965 491,965 - 76,845 - 76,845 870,438 947,283 |
Total Funds 2021 £ 597,466 - 7,557 - |
|---|---|---|---|---|
| 605,023 | ||||
| 347,966 | ||||
| 347,966 | ||||
| - | ||||
| 257,057 - |
||||
| 257,057 613,381 |
||||
| 870,438 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing operations.
The statement of financial activities also complies with the requirements for an income and expenditure account required by the Companies Act 2006.
The notes on pages 11-19 form part of these accounts.
Page 8
CORNERSTONE COLLECTIVE OF CHURCHES
BALANCE SHEET
AS AT 31 JULY 2022
| Note FIXED ASSETS Tangible assets 8 CURRENT ASSETS Debtors 9 Cash at bank and in hand 10 CREDITORS: Amounts falling due within one year 11 Net current assets / (liabilities) Total assets less current liabilities TOTAL NET ASSETS FUND BALANCES 13 Unrestricted Funds General funds Designated funds Restricted Funds |
Unrestricted Funds £ 755,248 755,248 18,745 32,957 51,703 (7,680) 44,023 799,271 799,271 785,361 13,910 799,271 - 799,271 |
Restricted Funds £ - - 1,338 146,675 148,012 - 148,012 148,012 148,012 - - - 148,012 148,012 |
Total Funds 2022 £ 755,248 755,248 20,083 179,632 199,715 (7,680) 192,035 947,283 947,283 785,361 13,910 799,271 148,012 947,283 |
Total Funds 2021 £ 519,648 |
|---|---|---|---|---|
| 519,648 | ||||
| 14,453 343,284 |
||||
| 357,737 (6,946) |
||||
| 350,790 | ||||
| 870,439 | ||||
| 870,439 | ||||
| 548,584 34,940 |
||||
| 583,525 286,914 |
||||
| 870,439 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2022
The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2022 in accordance with Section 476 of the Companies Act 2006 however, in accordance with Section 145 of the Charities Act 2011, the accounts have been examined by an independent examiner and their report has been included in these financial statements.
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The directors (who are the charitable company's trustees for the purposes of charity law) acknowledge their responsibilities
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(a) ensuring that the charitable company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its net income or expenditure for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.
The financial statements were approved by the Board of Directors and were signed on its behalf by:
---------------------------------------Matthew Newberry Matthew Newberry
Date: 6 February 2023
Company number: 08133846
Charity number: 1152099
The notes on pages 11-19 form part of these accounts.
Page 9
CORNERSTONE COLLECTIVE OF CHURCHES
FOR THE YEAR ENDED 31 JULY 2022
CASH FLOW STATEMENT
| Note Cash flows from operating activities: Net cash provided by/(used in) operating activities a Cash flows from investing activities: Dividends, interest and rents from investments Proceeds from the sale of property, plant and equipment Purchase of property, plant and equipment Proceeds from sale of investments Purchase of investments Net cash provided by/(used in) investing activities b b Cash and equivalents at the beginning of the year Cash and cash equivalents at the end of the year Change in cash and equivalents in the reporting period |
2022 £ 104,293 - (267,945) (267,945) (163,651) 343,284 179,633 |
2021 £ 276,324 |
|---|---|---|
| - (26,832) |
||
| (26,832) | ||
| 249,493 93,791 |
||
| 343,284 |
Note a: Reconciliation of net income/(expenditure) to net cash flow from operating activities
| Adjustments for: Depreciation charges and provisions for impairment (Gains)/losses on investments Dividends, interest and rents from investments Loss/(profit) on the sale of fixed assets (Increase)/decrease in stocks (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by (used in) operating activities Note b: Analysis of cash and cash equivalents Cash at bank with immediate access Notice deposits (with a term of three months or less) Petty cash Total cash and cash equivalents Net income/(expenditure) for the reporting period (as per the statement of financial activities) |
2022 £ 76,845 32,345 - - - (5,630) 734 104,293 2022 £ 179,632 - - 179,632 |
2021 £ 257,057 12,183 - - 7,562 (479) |
|---|---|---|
| 276,324 | ||
| 2021 £ 343,284 - - |
||
| 343,284 |
Page 10
CORNERSTONE COLLECTIVE OF CHURCHES
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2022
1 Statutory Information
The charity is a charitable company limited by guarantee and is incorporated in the United Kingdom. The company's registered number and registered office address can be found on the Company Information page.
2 Accounting Policies
These financial statements are prepared on a going concern basis, under the historical cost convention.
These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102"), with the Companies Act 2006 and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The principles adopted in the preparation of the financial statements are set out below.
a) Going concern
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The trustees (who are the charitable company's directors for the purposes of company law) have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
-
b) Income
-
Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations includes:
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i) Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.
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ii) Donated facilities, services and goods. Facilities, services and goods donated for the charity's own use are recognised as income when receivable at their value to the charity. When donated goods, services and facilities are distributed or consumed, an expense in respect of those items is included in the Statement of Financial Activities. Donated fixed assets are capitalised.
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church retreats including youth events.
Income from other trading activities represents income receivable from activities undertaken to generate funds for the charity. It includes income from hire of church rooms.
Other income includes gains arising from the disposal of tangible fixed assets.
The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.
- c) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
The Charities SORP requires charities with income over £500,000 to allocate costs to the various activities undertaken by the charity. The nature of the work of the charity is considered to be so integrated that the core charitable activity costs are considered to be for the one activity.
Page 11
CORNERSTONE COLLECTIVE OF CHURCHES
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2022
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
d) 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. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
e) Tangible fixed assets
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £2,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
| Freehold land | Is not depreciated (because it is not consumed by use) |
|---|---|
| Freehold buildings | Over 50 years after taking account of the building's residual value |
| Freehold improvements | Over 5 years |
| Equipment & Fixtures | Over 5 years |
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
f) Pension scheme arrangements
The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.
g) Taxation
The company is a registered charity; it has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
h) Financial instruments
The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).
3 Donations
| 3 Donations |
||
|---|---|---|
| Donations of cash and similar Donations in kind (note 3a) Government grants (note 3b) Other grants receivable Income tax recoverable a Donations in kind comprise: Goods donated for: For use by the charity |
2022 £ 401,311 22,388 - 62,638 66,177 552,514 2022 £ 22,388 22,388 |
2021 £ 507,215 - 10,092 34,550 45,609 |
| 597,466 | ||
| 2021 £ - |
||
| - |
Good donated for use by the charity comprise the labour and materials to install a short term heating system in the Dovedale Road property.
b Government grants comprise:
Job Retention Scheme grants
| 2022 £ - - |
2021 £ 10,092 |
|---|---|
| 10,092 |
Page 12
CORNERSTONE COLLECTIVE OF CHURCHES
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2022
4 Income from charitable activities
| Church & Youth retreats and events 5 Income from other trading activities Room hire 6 Charitable expenditure a Costs incurred directly on specific activities Pastoral expenses Staff funding Training and conferences Travel Property Room hire IT and equipment Other direct costs Depreciation Outreach Project costs (excluding staffing): Crosslands Acts 29 Eden project Dovedale building project Grants payable (note 8c) b Costs incurred on support & administration Governance costs Independent examiner's fee Office costs Insurance Legal and Professional Fees Total expenditure |
2022 £ 3,150 3,150 2022 £ 12,396 12,396 2022 £ 5,382 337,047 11,684 10,265 18,254 7,952 3,889 4,629 32,345 723 4,843 5,807 1,632 8,423 452,875 21,147 474,022 3,600 7,754 5,617 971 17,943 491,965 |
2021 £ - |
|---|---|---|
| - | ||
| 2021 £ 7,557 |
||
| 7,557 | ||
| 2021 £ 3,308 228,223 13,601 1,466 11,962 5,680 13,248 838 12,183 2,200 - - 25,205 |
||
| 317,914 8,517 |
||
| 326,431 | ||
| 2,640 6,415 7,496 4,985 |
||
| 21,536 | ||
| 347,966 |
The fee payable to the independent examiner for preparing and examining the accounts was £3,600 (2021: £2,640); in addition the charity paid £1,164 (2021: £1,197) to Stewardship for payroll bureau and consultancy services.
Page 13
CORNERSTONE COLLECTIVE OF CHURCHES
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2022
c Grants payable
| Grants payable | ||
|---|---|---|
| Institutions £ Grants for UK and overseas mission 6,690 Grants for the relief of poverty - Grants for education, including ministry training - 6,690 The comparatives for the previous year are as follows: Institutions £ Grants for UK and overseas mission - Grants for the relief of poverty - Grants for education, including ministry training - - The charity's principal grants to institutions comprised: Fellowship of Independent Evangelical Churches (FIEC) Acts 29 Grants to institutions for less than £1,000 each Gross wages and salaries Social security Pension costs Other employment benefits Analysis of staff costs, the cost of key management personnel and trustee remuneration |
Individuals £ 14,457 - - 14,457 Individuals £ 2,517 3,000 3,000 8,517 2022 £ 2,400 3,090 1,200 6,690 2022 £ 293,547 23,137 17,613 502 334,799 |
2022 £ 21,147 - - |
| 21,147 | ||
| 2021 £ 2,517 3,000 3,000 |
||
| 8,517 | ||
| 2021 £ - - - |
||
| - | ||
| 2021 £ 201,377 14,803 12,043 85 |
||
| 228,308 |
7 Analysis of staff costs, the cost of key management personnel and trustee remuneration
The average monthly number of employees during the year was 11 (2021: 9). Most of the charity's activities are carried out by volunteers.
No staff received salaries at a rate of more than £60,000 per annum.
The charity's key management comprise the trustees and the key staff named on the Company Information page. Total employment benefits payable to key management for the year were as follows:
fits payable to key management for the year were as follows: |
|
|---|---|
| Other Employer Wages & employment pension salaries benefits contributions Trustees: S Robinson 39,270 2,356 A Wood 31,750 1,905 J Walsh 33,660 2,020 N Forsythe 28,343 1,701 Other members of key management following amounts were payable in the previous year: Other Employer Wages & employment pension salaries benefits contributions Trustees: S Robinson 39,270 2,356 A Wood 27,500 1,650 J Walsh 33,660 2,020 N Forsythe 20,349 1,221 Other members of key management |
2022 £ 41,626 33,655 35,680 30,044 - |
| 141,005 | |
| 2021 £ 41,626 29,150 35,680 21,570 - |
|
| 128,026 |
The following amounts were payable in the previous year:
The above trustees served as church leaders and operational staff and received the above payments for serving in that capacity, not for serving as trustees; these payments are permitted by the charity's governing document.
Page 14
CORNERSTONE COLLECTIVE OF CHURCHES
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2022
8 Tangible fixed assets
| Cost At 1 August 2021 Additions At 31 July 2022 Accumulated depreciation At 1 August 2021 Charge for the year At 31 July 2022 Net book value At 31 July 2022 At 31 July 2021 |
Freehold Freehold Property Improvements £ £ 545,000 11,555 228,737 545,000 240,291 50,900 770 10,900 20,419 61,800 21,189 483,200 219,102 494,100 9,376 |
Assets under construction £ 10,147 39,208 49,355 - - - 49,355 5,130 |
Fixtures, fittings and equipment £ 5,130 5,130 513 1,026 1,539 3,591 571,319 |
Total 2022 £ 571,832 267,945 |
|---|---|---|---|---|
| 839,776 | ||||
| 52,183 32,345 |
||||
| 84,528 | ||||
| 755,248 | ||||
| 519,648 |
Freehold improvement additions include £22,388 of donated fixed assets being a short term heating system for Dovedale Road. Assets under construction represents expenditure spent on the future development of Dovedale Road. Depreciation will not be charged on this asset until the renovation work is complete.
9 Debtors
| Falling due within one year: Tax recoverable Other debtors Prepayments and accrued income Total debtors h at Bank and in Hand Cash at bank with immediate access itors: liabilities falling due within one year Accruals Grant obligations |
2022 £ 6,778 2,588 10,717 20,083 2022 £ 179,632 179,632 2022 £ 7,680 7,680 |
2021 £ 12,037 2,415 |
|---|---|---|
| 14,453 | ||
| 2021 £ 343,284 |
||
| 343,284 | ||
| 2021 £ 5,146 1,800 |
||
| 6,946 |
10 Cash at Bank and in Hand
11 Creditors: liabilities falling due within one year
12 Pension commitments
During the year employer’s pension contributions totalling £17,613 (2021: £12,043) were payable to defined contribution personal pension schemes. Pension contributions of £2,197 (2021: £1,575) were owing at the balance sheet date.
Page 15
CORNERSTONE COLLECTIVE OF CHURCHES
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2022
13 Funds
During the year the movements in the charity's funds were as follows:
| Designated Funds Sabbatical Fund Wirral Building Repair Fund Giving fund Contingency Fund Crosslands Fund Weekend away General Unrestricted Funds Total Unrestricted Funds Restricted Funds Staff Worker Funding Dovedale Building fund Church plant residency Wirral Building Repair Fund Rooted Church Plant Hope Church Kensington Liberti Church outreach fund Cornerstone Wirral Cornerstone Liverpool Crosslands Fund Acts 29 Fund Room hire Deposits Little Pebbles Liverpool Holding Fund Aggregate of funds |
Opening balance 2022 £ 1,720 6,414 16,762 10,000 45 - 34,940 548,584 583,524 - 248,091 20,000 - 2,100 12,059 548 1,461 405 - 1,100 1,000 150 286,914 870,438 |
Incoming resources 2022 £ - - - - 3,150 3,150 383,187 386,337 35,625 65,634 18,140 3,275 - 35,660 - 701 - 9,250 13,873 100 215 - 182,473 568,810 |
Outgoing resources 2022 £ - - (9,017) - (2,760) (11,777) (382,266) (394,043) (19,375) (8,423) (27,273) (3,400) - (18,741) (548) (701) (405) (4,843) (13,179) - (1,033) - (97,922) (491,965) |
Transfers in the year 2022 £ 1,800 (6,414) (7,745) - (45) - (12,403) 235,856 223,453 - (243,568) 12,745 10,886 (2,100) - (1,461) - 45 - - - (223,453) - |
Gains and losses 2022 £ - - - - |
Closing balance 2022 £ 3,520 - - 10,000 - 390 |
|---|---|---|---|---|---|---|
| 13,910 785,361 |
||||||
| 799,271 | ||||||
| 16,250 61,734 23,612 10,761 - 28,978 - - - 4,452 694 1,200 182 150 |
||||||
| 148,012 | ||||||
| 947,283 |
The transfers referred to above were made for the following reasons:
a) From Dovedale Building Fund to General Fund to recognise capitalised expenditure on the Dovedale building. b) From Designated Wirral Building Repairs fund to Restricted Wirral Building Repairs fund as the majority of the funds received or transferred in this year are restricted and this is also likely to be the case in the future.
c) From Rooted Church Plant to Wirral Building Repairs fund as the Rooted church plant closed in 2020. Permission was granted by the original donors.
d) From Cornerstone Wirral to Wirral Building Repairs fund to combine the 2 funds to be used in the church's area of greatest financial need.
e) From general funds to the Sabbatical Fund, the Giving Fund, Wirral Building Repairs and the Church Plant Residency fund to set money aside for these purposes.
f) From the Giving Fund to the Church Plant Residency fund to combine designated funds for giving and church plant residency, as the general aim is for giving to be to support church planting. g) From the Wirral Building Repairs fund to the Dovedale Building fund to reflect historic balances in this fund which actually related to Dovedale.
Page 16
CORNERSTONE COLLECTIVE OF CHURCHES
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2022
Analysis of net assets by fund
The assets and liabilities of the various funds were as follows:
| Tangible fixed assets Debtors Cash at bank and in hand Creditors falling due within one year In the previous year the movements in the Designated Funds Sabbatical Fund Wirral Building Repair Fund Crosslands Fund Giving fund Contingency Fund General Unrestricted Funds Total Unrestricted Funds Restricted Funds Staff Worker Funding Dovedale Building fund Rooted Church Plant Room hire Deposits Church plant residency Liberti Church outreach fund Holding Fund Cornerstone Wirral Cornerstone Liverpool Hope Church Kensington Little Pebbles Liverpool Aggregate of funds |
charity's funds Opening balance 2021 £ 3,800 1,639 45 15,557 10,000 31,040 522,677 553,717 - 34,971 2,100 1,100 20,000 548 150 795 - - - 59,664 613,381 |
General Designated funds funds £ £ 755,248 - 18,150 595 19,643 13,315 (7,680) - 785,361 13,910 were as follows: Incoming Outgoing Transfers resources resources in the year 2021 2021 2021 £ £ £ - (3,280) 1,200 7,005 - (2,230) - - - - (1,617) 2,822 - - - 7,005 (4,897) 1,792 307,503 (301,505) 19,910 314,508 (306,402) 21,702 5,000 (5,000) - 260,027 (25,205) (21,702) - - - - - - - - - - - - - - - 6,111 (5,445) - 2,231 (1,826) - 16,146 (4,087) - 1,000 - - 290,515 (41,564) (21,702) 605,023 (347,966) - Unrestricted Funds |
Restricted funds £ - 1,338 146,675 - 148,012 Gains and losses 2021 £ - - - - |
2022 £ 755,248 20,083 179,632 (7,680) |
|---|---|---|---|---|
| 947,283 | ||||
| Closing balance 2021 £ 1,720 6,414 45 16,762 10,000 |
||||
| 34,940 548,584 |
||||
| 583,524 | ||||
| - 248,091 2,100 1,100 20,000 548 150 1,461 405 12,059 1,000 |
||||
| 286,914 | ||||
| 870,438 |
Page 17
CORNERSTONE COLLECTIVE OF CHURCHES
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2022
The transfers referred to above were made for the following reasons:
The maintenance of a Sabbatical Fund, a Building Repair Fund, a Giving Fund and a Contingency Fund by setting aside regular
-
a) monthly amounts from the General Fund as requested by the trustees. The transfer from Designated to General Fund of the cost of the boiler which has been capitalised in the accounts. Depreciation
-
b) will be charged to the General Fund.
The transfer from Dovedale Building fund to General Fund represents capitalised expenditure on improvements to the
- c) Dovedale Building and on the ongoing renovation project both of which fulfil the restrictions of this fund.
Analysis of net assets by fund
In the previous year, the assets and liabilities of the various funds were as follows:
| Tangible fixed assets Debtors Cash at bank and in hand Creditors falling due within one year |
General Designated funds funds £ £ 519,648 13,905 375 21,977 34,565 (6,946) 548,584 34,940 Unrestricted Funds |
Restricted funds £ 173 286,741 286,914 |
2021 £ 519,648 14,453 343,284 (6,946) |
|---|---|---|---|
| 870,438 |
Designated Funds
The Sabbatical Fund is an unrestricted fund designated by the Trustees to allow for future expenditure on a planned sabbatical for the church leaders.
The Wirral Building Repair Fund was an unrestricted fund designated by the Trustees to allow for future expenditure on the Wirral property. All funds are now held in the restricted fund of the same name.
The Giving Fund is an unrestricted fund designated by the Trustees to allow for future christian charitable giving to individuals and organisations, usually with a focus on church planting support
The Contingency Fund is an unrestricted fund designated by the Trustees to allow for future unexpected expenditure. The Weekend away fund relates to income & expenditure for the Bolder youth weekend away.
Restricted Funds
The Staff Worker Fund is a restricted fund held to receive funds for salary payments.
The Dovedale Building Fund is a restricted fund created to receive and manage the funds raised for the future purchase and renovation of a building for church use. In 2021 Ramilies Road Hall Trust donated the proceeds from the sale of their building to The Church Plant Residency Fund is a restricted fund created to help finance individuals to train as part of Cornerstone Collective of Churches Church Plant Residency training programme.
The Wirral Building Repair Fund is a restricted fund created to receive and manage funds raised for repairs & maintenance of the church building used by Cornerstone Wirral.
The Rooted Church Plant Fund is a restricted fund created to fund raise for a 2020 Church plant which has now been discontinued.
The Hope Church Kensington Fund is made up of several restricted funds created to hold various donations for projects out of Hope Church.
The Liberti Church Outreach Fund is a restricted fund created to fund evangelistic/outreach work from Liberti Church. The Cornerstone Wirral Fund is a restricted fund created to hold various donations to Cornerstone Wirral with specific restrictions.
The Cornerstone Liverpool Hampers Fund is a restricted fund for providing Christmas gifts/vouchers to help people in our congregation who are in need.
The Crosslands Fund is a restricted fund to support staff in their Crosslands training.
The Acts29 Fund is for funds donated by Acts 29 GB as a grant for Acts 29 related work undertaken by members of staff at Cornerstone Collective.
The Little Pebbles Liverpool Fund is a restricted fund made up of a grant received for the baby and toddler group - funds restricted for purchasing items to improve the functioning of the Little Pebbles group.
The Holding Fund is a restricted fund created for funds being held towards specific activities e.g. Youth Weekend.
Page 18
CORNERSTONE COLLECTIVE OF CHURCHES
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JULY 2022
-
14 Transactions with related parties During the year the charity:
-
a) received donations totalling £38,852 (2021: £36,631) from related parties (which includes trustees, any other members of key management and anyone closely connected to them).
-
b) No expenses (2021: £nil) were paid to, or for, the trustees. Reimbursements for expenses incurred when acting as agent for the charity or incurred when undertaking employment duties not connected with serving as a trustee are not included in this disclosure.
15 Members
Each member of the company commits to contribute if the charity is wound up an amount of £10.
Page 19
CORNERSTONE COLLECTIVE OF CHURCHES
DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES
FOR THE YEAR ENDED 31 JULY 2022
| Note INCOME AND ENDOWMENTS FROM: Donations 3 Charitable activities 4 Other trading activities 5 Other income Total income and endowments EXPENDITURE ON: Charitable activities: 6 Total Expenditure Net gains/(losses) on investments Net income/(expenditure) Transfers between funds 13 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 13 |
General Designated 2022 2022 £ £ 370,742 - - 3,150 12,396 - 48 - 383,187 3,150 382,266 11,777 382,266 11,777 - 921 (8,627) 235,856 (12,403) 236,777 (21,030) 548,584 34,940 785,361 13,910 Unrestricted funds |
Restricted 2022 £ 181,772 - - 701 182,473 97,922 97,922 84,551 (223,453) (138,901) 286,914 148,012 |
Total 2022 £ 552,514 3,150 12,396 750 568,810 491,965 491,965 - 76,845 - 76,845 870,438 947,283 |
General Designated 2021 2021 £ £ 299,946 7,005 - 7,557 - 307,503 7,005 301,505 4,897 301,505 4,897 - 5,997 2,108 19,910 1,792 25,907 3,900 522,677 31,040 548,584 34,940 Unrestricted funds |
Restricted 2021 £ 290,515 290,515 41,564 41,564 248,951 (21,702) 227,250 59,664 286,914 |
Total 2021 £ 597,466 - 7,557 - 605,023 347,966 347,966 - 257,057 - 257,057 613,381 870,438 |
|||
|---|---|---|---|---|---|---|---|---|---|
Page 20