2020-12-31-accounts

Grace Church Highlands CIO Annual Report and Financial Statements Year ended 31 December 2020 GRACE CHURCH HIGHLANDS

GRACE CHURCH HIGHLANDS CIO ANNUAL REPORT OF THE TRUSTEES Reference and admlnlstratlve details Grace Church Highlands CIO is a Charitable Incorporated Organisation registered with the Charlty Commission, which regulates charitsble organisations in England and Wales. It was formed on 11 July 2013 and is registered under Charity No. 1152828. Its registered and principal office is at 2 Flrs Lane, Wlnchmore Hill, London N212HU. Thls report covers activities during the 12 months from l January to 31 December 2020. The Trustees of Grace Church Highlands CIO who served during the year were: Revd Jonathan Bell (Mlnister & Chairl Jeff Hammer (Church Wardenl- reappointed 12 October 2020 Elaine Kelman Ichurch Wardenl- resigned 12 October 2020 Tim Catt (Church Wardenl- appolnted 18 Ortober 2020 Paul Stockton (Treasurerl Andy Kelman- ￿SIgned 18 Ortober 2020 Kate Douglas Paul Mason Sheamal Samarasekera Elena Bennett (Secretary) Hilary Nicholls- appolnted 12 October 2020 Strurture. governance and management Grace Church Hlghlands CIO operates under a Constitutlon which sets out how It Is governed and manoged. Decisions concerning the operation of the CIO are made by the trustees, who usually meet monthly as Grace Church Council. Apart from the Minister, who is an 'ex officio. trustee. other trustees have terms of appointment of up to four years. Up to four trustees in total can be nominated by members of the con8re8ation of Grace Church Highlands. The aim is to appoint one trustee a year through this method. with the appointment agreed at the Annual Church Meeting. If unexpected vacancies arise, more than one appolntment may be sought. Other trustees are appointed by the existin8 Board of Trustees Ichurch Council}. The aim is that there should normally be 9 trustees in total, although the constitution allows for maximum of 12 trustees and a minimum of 3. New trustees are provlded with a copy of the Constltutlon. a copy of the Bishop's Mission Order relating to the Grace Church Highlands Mission Initiative, and with copies of Charity Commlsslon 8uidance settin8 Out the responsibilities of CIO trustees. In the management of the CIO the trustees seek to adhere to chartty best practice. This include5 establishing robust procedures for dealing with any conflicts of interest that may arise, for the payment of expenses of clergy and others, and for the provlslon of accommodatlon for the use of the Minister that is fit for purpose. It also includes wfFtten policies both to ensure the health and safety of those involved in the actiwties of the church, and to safe8uard the welfare of children. young people and vulnerable adults receiving care as well as those working or coming into contact with them.

Objectives, actlvltles and achievements Grace Church Highlands was originally Set up in 2007 a5 a church plant seeded from Christ Church Cockfosters. It is primarily. but not exclusively, a Mission Initiatlve under a Blshop's Mission Order in the Diocese of London. On 11 Jury 2013 it was established as a Charitable Incorporated Organisation independent of Christ Church Cockfosters although it still maintains close links with this church and Its Parothlal Church Councll. Grace Church Hlghlands CIO ha5 a Constitutbon whlch sets out Its charltsble objectives and which provides the rules by which it operates. The prinapal objects of the CIO are to advance the Christian faith for the benefit of the public by serving and reaching for Christ the community of Highlands Vlllage Iln North London) and wider networks of people connerted with members of the congregatlon. The main activities of the CIO are the holding of services of worship, promotlon of the study of the Blble. missionary and outreach Work. A full copy of the Constitution Can be obtained from the Minister, or any of the other trustees. When framlng the objectives. the Trustees have carefully consldered the guldance on'publlc beneflt, published by the Charity Commission lespecially the guidance relatin8 to the Advancement of Religlon for PublSc Benefftl and have continued totske account of the Charlty Commi5slon's guidance on public benefit when planning activities throughout the year. Grace Church Hi8hlands does not have Its own parish but instead operates wlthln. and cooperate5 wlth. the parlsh of St Peterfs Grange Park and Its Parochial Church Council. Our normal pattern Is to hold regular weekly ser¥I￿S on Sundays at Highlands School Hall, as well as other occaslonal seNlces. These include groups for children of all ages. In 2020. the Covid-19 pandemic meant that these services were not held in the same way for the majority of the year. From mid-march untll December most of our services were held online, using Zoom. On Easter Sunday and for six more evangelistic serVi￿S in the summer we produced a servlce on YouTube, fllmed In advan￿ but 'premiered' on Sunday morning. This medium was a150 Used for our carol service. Our bl-weekly servlces at Ellzabeth Lodge Care Home also had to stop In March and are yet to continue. although we have ende3voured to be in contatt by other means when p055ible. Our six branch group5 continued to meet throughout the year, mostly usin8 Zoom but physically In small groups when Covid guidance allowed. They are a key means by which members of Grace Church Hlghlands and newcomers can enjoy fellowship with one another, studying the Bible, praying for one another, and encouraging one another to grow in Christlikeness. Sadly. the Covld pandemic meant that we were unable to run several of the events and artivities that we otherwise would have planned. In partlcular. we missed our Fun Day at Sainsburfs, ommunlty cafés. youth football for most of the year, the Jazz barbecue and the sports quiz. There were some hi8hli8hts, though. including a Confirmation servke on March 1st, when the Blshop of Edmonton confirmed 7 of our members and also took the opportuntty to visit Good News Club. We ran a Christianity Explored group in the new year and also met regularly online for prayer meetings, which were often ￿￿11 attended. In fact, Covid restrictions meant that our 'virtual' attendances at Sunday services and other meetings were sometimes higher than they might normally have been as travel wa5 restrirted - although even when we could travel. we could still attend an Online service!

We were so grateful that our English For You dasses were finally able to stsrt for parents at Grange Park Primary School in January. Of course these had to stop in March due to Covid. but a group ha5 been meeting online through the rest of the year and we are excited about the opportunities this group brings. Even in the few weeks before lockdown one member of the group had stsrted attending Sunday servi￿5 for the first time. In Novemberwe were pleased to be able to appolnt Hllary Nicholls as part-time Minister for Women and Outreach. This was before Hilary was appointed as a trustee. We have also since the year-end taken on Jonathan Haine5 as 3 volunteer Ministry Trainee. There were two funerals and three baptisms during the year. Grace Church Hlghlands is part of the Edmonton Episcopal Area in the Diocese of London, and as part of the Church of England we play a full part in the Deanery and Diocese. At the delayed Annual Meeting in October 2020 the electoral roll of Grace Church Hlghlands stood at 89 members. We elected Sally Reeve and Jonathan Haines as lay members of the Enfield Deanery Synod. Financial review Our budget for 2020 was for a small surplus of £9.IXN). much reduced from the surplus of £31.538 recorded for 2019. Thls budget assumed that regular givin8 would increase by a token 1.7% and that one-off giving would fall as we planned no large appeals during the year. Given the extraordlnary background to much of 2020 the artual level of regular giving held up very well. showlng only a small reductlon of c. 1.3%. One-off glfts fell c. £4,800 short of the amount budgeted, although thls was lar8ely because we had no appeals at all during the year. As regards expendlture, the costs of holdin8 Se￿iCe5 In Hl8hlands School Hall fell markedly by c. £8,000 as, barrlng a few short periods. we were only allowed to meet onllne. Also, plans to engage additional resources in the form of a part-t5me Mlnister for Women and Outreach were delayed so led to a sawn8 in Clergy Stipend and allowan￿5 of over £lO,¢))O against the budget, Ithough the amount spent was still nearly £4,(W more than in 2019. Some of the savin85 were committed to an increase of over £4,(M)) in literature and outreach costs. which necessarily became one of the main ways for us to reach people in our community. Additionally, we reco8nised the need to redecorate part of the Minister's accommodation that has become worn and so sulFstandard, making a provision of £5.(￿ to cover this. These one•off costs were nonetheless not enough to offset the savings elsewhere so. at £12,159, the surplus for the year was c.£3,000 more than bud8eted. Looking forward to 2021 our budget reflects the planned Increase in expenditure related to the part-time Mlnlster for Women and Outreach and so assumes a deficit for the year of £21,000 based on income only marginally up (by 2%). ft should be emphasised that this is very much planned deficlt, reflecting an Increased level of investment In our Mlsslon Inltlatlve which we are fundlng Out of the unplanned surpluses accumulated over the past 3 years. The level of Ilquid resources held at the year end of £280.826. whilst healthy. will not obviate the need for appeals from time to time for spectfic projects whith support our objertive5 and are worthy of fundin8. Policy on Reserves All the current funds are unrestrirted by nature and so are available to be used as the Trustees and church members 8enerally see fit. However. the work that the CIO carries out in advanclng the Christian faith for the benefft of the public in the community of Highlands Village and further afield is, by its nature. a long-term endeavour and relies entlrely on the support of individuals. 41Page

Accordingly, prudence must be observed to ensure that the CIO can ride out any shortage in incoming resources over a number of years. In such a situation, and with the majority of incoming resources still tied to the provision of stipends and accommodation. essential for Grace Church Highlands to continue its work, the current level of rese￿eS Is not excesslve: The CIO has a mortgage of c. £312.(￿ to fund, albeit over the next 20+ years. In coming years, and as shown by the budget for 2021. the expertation is that expenditure will increase from the current level and result in deficits in some years, which will absorb part of the CIO'S funds, although care will be taken to keep the overall level of deficits to a manageable level so as not to threaten the mI￿10n of Grace Church in the long term.

GRACE CHURCH HIGHLANDS CIO INDEPENDENT EXAMINER'S REPORT ON THE ACCOUNTS Report to the Trustees / Members on the accounts for the year ended 31 December 2020 set out on pages 7 to 14 Respectlve responsibilities of trustees and examlner The charity's trustees are responsible for the preparation of the accounts. The charitvs trustees consider that an audit 15 not required for the year under Section 144 of the Charities Art 2011 (the Charities Act) and that an independent examination is needed. Accordingly. it is my responsibility as independent examiner: to examine the accounts under section 145 of the CharFtles Act; to follow the procedures laid down in the General Di￿rtIOnS given by the Charity Commission lunder section 14515llbl of the Charities Act; and to state whether particular matters have come to my attention. Basls of Independent examlnerfs statement My examlnation was carrled out In accordance with general Direction5 gwen by the Charlty Commission. An examinatlon Includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes conslderatlon of anv unusual items or dlsclosures 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 audrt. Consequently, no opinion is given as to whether the accounts present a 'true and falrf vlew and the report Is Ilmited to those matters set out in the statement below. Independent examlnerfs statement In connectlon wlth my examlnation, no matter has corne to my attention: l. which gives me reasonable cause to believe that in, any materlal respect. the requirements: to keep accounting records In accordan￿ wlth section 130 of the Charitie5 Att; and to prepare accounts which accord with the accounting records and comply with the accountin8 requirements of the Charities Act have not been met; or 2. to which. in my opinion. attention should be drawn in order to enable a proper understandlng of the accounts to be reached. MA-4 Michael Slevin MBA. Ba IHons} Finan 8th May 2021 40 East View B3rnet EN5 5TN

GRACE CHURCH HIGHLANDS CIO STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2020 Unrestrirted Funds Year to 31 December 2020 Year to 31 DecembeT 2019 Note Income Voluntary income Regular glvlng 89,258 90,437 Occaslonal glvlng 2.174 22,998 Interest and other income 1.419 1,412 Total Income 92,851 114,847 Expenditure {Church artlvltles) Ministry.. Clergy stipend & expenses 3a} 40.672 36,849 Ministry.. Clergy accommodation 3bl 19,231 15,495 Hire of venue for Church services 1,886 8,492 Evangelism activities 14,033 17,503 Church runnlng costs 4,870 4,971 Total expendlture 80,692 83,309 Net Income and movement In funds 12,159 31,538 Balance brought forward 519,6TI 488,139 Balance carrled forward io 531,836 519,677 The notes on pages 9 to 14 form part of these accounts.

GRACE CHURCH HIGHLANDS CIO BALANCE SHEET At 31 December 2020 At 31 December 2020 At 31 December 2019 Note Tanglble flxed asset 568,082 568,082 Current assets Debtors and prepayments 2,352 21,463 Cash at bank and in hand 280,826 252,932 Llabllltles Creditors- amounts fallin8 due within one year 117,3521 110,7501 Net Current assets 265,826 263,645 Total assets less current liabilities 833,908 831,727 Credltors- amounts falllng due after one year 1302,0721 {312,0501 Total net assets 531,836 519,677 Funds (unrestrlrted) io 531,836 519,677 The notes on pages 9 to 14 form part of these accounts. Approved by the Church Council on 19 April 2021 and signed on its behalf by: The Revd Jonathan Bell (Chairman of the Church Councill and Jeff Hammer (Vice-chairman and Church Warden)

GRACE CHURCH HIGHLANDS CIO NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020 I. ACCOUNTING POLICIES Basls of flnancial statements The financial statements have been prepared under the Church Accountlng Regulatlons 2¢XJ6 In accordance with applicable accountin8 Standards and the current Statement of Recommended Practlce ISORPI on Accounting and Reportlng by Charltles and appllcable Flnanclal Reportlng Standard IFRSI 102. They have been prepared under the hlstorlcal cost convention. Fund accountlfig The unexpended funds of the CIO, represented by its net assets. are held by its trustees on trust. They are not restrlcted to any partlcular charitable purpose and can be used for any of the CIO'S charitable aims. Income Planned givlng, collections and similar donations are recognised when received unless they relate to amounts pledged for an appeal or other fund-raisin8 for a specific event or year, or to a legacy or bequest made in a particular year, in which case they are treated as part of the Income for that year. Tax refunds are recognised at the same time as the incoming resource to which they relate. Interest and other incomels reco8nlsed as and when recelved. All incoming resources are accounted for gross, unless they relate to contrlbutions recelved In respect of church outreach event5 considered to be Immaterial in the context of church activities, In whlch case the net deficit on the event is shown under the heading'Evangelism' in the Statement of Financlal Actlvities. Income received In advance is deferred to the extent that It relates to. and is to be matched with, expenditure arlsing in a subsequent period. Income collerted in respect of appeals made on behalf of other charltles Iwhich Is paid over to those charitiesl is not included in the accounts of the CIO but is listed in a note to the account5 (note 21. Expendlture Grants and donations are accounted for when paid. or in the year when awarded if that award either creates an obligation of the CIO to pay it or it 15 made out of incomins re50urres for that year. All other expenditure is 8enerally recognised when Iz Is incurred and is accounted for gross. Flxed assets The property occupied by the Minister is accounted for at historical cost. It 15 not depreciated as it is the CIO'S policy to continuously maintain the property to a high standard. Maintenance and refurbishment costs arising from wear and tear during the year are ￿cOgnised in the Statement of Financial Activities under the heading 'Mlnistry- Clergy accommodatlon. and a provision made to the extent that such costs have been incurred but not yet paid. 91pa8e

Movable church fumishings and equipment with an individual cost of less than £l,LK(J are written off when purchased. Nevertheless, theyare held bythe Ministerand Church Wardens forthe CIO and are listed in the church's inventory. 2. VOLUNTARY INCOME Year to 31 December 2020 Yearto 31 December 2019 Regular glving Planned giving (Gift Aid) 62,858 63,809 Tax recoverable 15.715 15,952 Other planned giving 10,685 10,676 Totsl regular glvlng 89,258 90,437 Occasional giving One-off gifts (Gift Aid) 1,739 17.675 Tax recoverable 435 4,419 Other occasional givlng 904 Totsl occa51onal 8lvln8 2,174 22,998 Other planned and other occasional giving includes amounts received through stewardship vouchers and Give As You Earn, which is re￿iVed inclusive of any tax. It also includes other regular Income such as non Gift-aided donations. One-off gifts include amounts totalling £26412019 £1.0641 recelved through the collection box. Amounts recelved from speciflc collectlons during the year made for other charltles, whlch were paid over to those charlties Isee note 41, amounted to £25812019 - £5301. 3. MINISTRY COSTS Under the Supplementsry Instrument to the Bishop's Mission Order that the CIO operates under, the CIO is required to make provision for the Ministerfs stipend, housin& penslon, expenses and any allowances to ensure that. as far as posslble. they are the same as an incumbent of a benefice in the Diocese of London would receive. The Ministe¢s stipends are paid through the Diocese of London, with the CIO paying into the London Diocesan Fund the equivalent of the cost of an "Off Common Fund" incumbent post to meet the Mlnlster's salary and associated costs (see also note 11 Related Portiesl. The Minister's housing is also provided directly by the CIO.

al Ministry stipends and expenses comprise the following.." Yearto 31 Decembei 2020 Year to 31 Oecember 2019 Ministerf5 Stipend, allowances, pension & Nl 39,9 28,348 Ministerfs resources and expen5e5 772 8,501 40,672 36,849 Resources and expenses In 2019 Included resettlement 8rant5 made to the Incomlng Mlni5ter of £4,856 and a contribution towards removal costs of £2,443. bl Ministry accommodation and running costs cornprise the following'.- Year to 31 December 2020 Yearto 31 December 2019 Mortgage interest on Ministerfs accommodation 10,282 12,OCrf) Running costs 3,799 3,332 Repalrs and maintenance 5,150 163 19.231 15,495 4. EVANGELISM ACTIVITIES Year to 31 December 2020 Yearto 31 December 2019 Re8ular outreach Iyolrth, children, EFY} Occasional outreach events 5,410 5,486 1,193 Donations and mission support 3.698 10,472 Literature. reachlng out and other costs 4,444 352 14,033 17,503 Regular outreach includes £3,126 in respect of the salary, National Insurance and expenses of Hilary Nicholls, the new Minister for Women and Outreach, for November and December 2020. IIIPage

Outreach event costs are shown net of associated contributions of £14012019- £2,091). Donations and mission support comprise: Mission partners- India Mission partners- Two'.Nlneteen IUKI 5CKI Other$111 198 They also include other donations made from specific appeals during the year. collections for which are subsequently paid over to the charities concemed Isee also note 21. The total amount collected including Gift Aid was £258 which was paid to the following: London City Mission 258 5. CHURCH RUNNING COST5 Church running costs cornprise the followin8:_ Year to 31 December 2020 Yearto 31 December 2019 Refreshments and consumables 21 753 Insurance 1,129 1,019 Website, prlnting and promotion 1.030 872 Contribution to the LDF Common Fund 750 Other costs 690 1,577 4,870 4,971 6. TANGIBLE FIXED ASSET The CIO has a freehold interest in the property occupied bythe Minlster at 2 Firs Lane. London N21. The amount of £568,082 shown in the balance sheet is stated at historical cost. including financing charges. 12 IPage

1. DEBTORS AND PREPAYMENTS Debtors and prepayments comprise the following=_ At 31 December 2020 At 31 December 2019 Tox recoverable 1,249 20,372 Prepayments & deposits 1.103 1.091 2,352 21,463
2. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR short.term creditors are represented by:" At 31 December 2020 At 31 December 2019 Capltal repayments on mortgage {see note 9) 9,978 7,950 Accrued expense5 7,374 2,800 17,352 10,750
3. CREDITORS: AMOUNTS FALLING DUE AFfER ONE YEAR The property at 2 Firs Lane (see note 61 wa5 orlglnally acqulred wlth the aid of a capltal and interest repayment mortgage due to be repaid in full in February 2043 and bears Interest at a variable rate of 3% above base rate. At 31 December 2020 the interest rate on the outstanding amount of £312,05012019- £320,1)J)I was 3.1%12019- 3.75%). Of this amount, £302,072 12019- £312,050) Is payable after more than one year.

4. FUNDS At 31 December 2020 At 31 December 2019 Unrestrlrted Funds At ljanuary 519.677 488,139 Incomin8 resources 92,851 114,847 Re50urce5 expended 180,6921 183,3091 At 31 December 531.836 519,677 13 | Page

5. RELATED PARTY TRANSACTIONS The Minister of Grace Church Highlands, Revd Jonathan Bell, is an ex-officio Trustee and member of the Church Council. He is employed by the Diocese of London and received a stipend during the year of £39,900 (part year 2019- E28,3481. He was also reimbursed amounts for expenses totalling £772 in the period12019- £1,344 and removal costs of £2.443}. Other employment costs reflected under Ministry Costs (see note 31 relate to National Insurance and to pension and other contributions made through the Diocese of London for the Minister. They also include. in 2019. grants totalling £4.856 for resettlement of the then incoming Minister, the Reverend Jonathan Bell. The newly appointed Minister for Women and Outreach, Hilary Nicholls. who was appointed as a Trustee on 12 October 2020. received a salary for the final two month5 of the year of £2,553. No payments were made to any other trustee, persons closely connected to them or related partles other than in respect of reimbursement at cost of small amounts of expenditure incurred in administering the church or running church and outreach events. No benefit has been derived by these persons from the payments made.

6. COMMITMENTS Grace Church Highlands has not made any commitments beyond annual contracts with a number of regular suppliers. The hire of the venue for church services is contracted on a termly basls but due to the Coronavirus pandemic service5 were not possible at the venue and therefore no commitments existed at the year-end.