Grace Church Highlands CIO Annual report and financial statements
Year ended 31 December 2023
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Annual report of the trustees
Reference and administrative details
Grace Church Highlands CIO is a Charitable Incorporated Organisation registered with the Charity Commission, which regulates charitable organisations in England and Wales. It was formed on 11 July 2013 and is registered under Charity No. 1152828. Its principal office is at 2 Firs Lane, Winchmore Hill, London N21 2HU.
This report covers activities during the 12 months from 1 January 2023 to 31 December 2023. The Trustees of Grace Church Highlands CIO who served during the year were:
Revd Jonathan Bell (Minister & Chair) Tim Catt (Church Warden) Jeff Hammer (Church Warden) Maryam Garcia (Treasurer) - resigned 25 April 2023 Ares Kokkinos (Treasurer) - appointed 21 May 2023 Emily Hammer (Secretary) Heidi Bennett - appointed 10 July 2023 Marie Haines Paul Mason Hilary Nicholls - resigned 20 June 2023 Sheamal Samarasekera
Structure, governance and management
Grace Church Highlands CIO operates under a Constitution which sets out how it is governed and managed. Decisions concerning the operation of the CIO are made by the trustees, who meet 8-10 times annually 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 congregation 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 appointment may be sought. Other trustees are appointed by the existing Board of Trustees (Church Council). The aim is that there should normally be 9 trustees in total, although the constitution allows for a maximum of 12 trustees and a minimum of 3.
New trustees are provided with a copy of the Constitution, a copy of the Bishop’s Mission Order relating to the Grace Church Highlands Mission Initiative, and with copies of Charity Commission guidance setting out the responsibilities of CIO trustees.
In the management of the CIO the trustees seek to adhere to charity best practice. This includes 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 provision of accommodation for the use of the Minister that is fit for purpose. It also includes written policies both to ensure the health and safety of those involved in
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the activities of the church, and to safeguard the welfare of children, young people and vulnerable adults receiving care as well as those working or coming into contact with them.
Objectives, activities and achievements
Grace Church Highlands was originally set up in 2007 as a church plant from Christ Church Cockfosters. It operates under a Bishop’s Mission Order in the Diocese of London. On 11 July 2013 it was established as a Charitable Incorporated Organisation independent of Christ Church Cockfosters.
Grace Church Highlands CIO has a Constitution which sets out its charitable objectives and which provides the rules by which it operates. The principal objectives 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 Village (in North London) and wider networks of people connected with members of the congregation. The main activities of the CIO are the holding of services of worship, promotion of the study of the Bible, missionary and outreach work. A full copy of the Constitution can be obtained from the Minister, or any of the other trustees.
When framing the objectives, the Trustees have carefully considered the guidance on ‘public benefit’ published by the Charity Commission (especially the guidance relating to the Advancement of Religion for Public Benefit) and have continued to take account of the Charity Commission’s guidance on public benefit when planning activities throughout the year.
Grace Church Highlands does not have its own parish but instead operates within, and cooperates with, the parish of St Peter’s Grange Park and its Parochial Church Council.
Our normal pattern is to hold regular weekly services on Sundays at Highlands School Hall, as well as other occasional services. These include groups for children of all ages. Our youth group meets on Sunday evenings in Highlands Village Hall. Other regular activities include ‘Sparklers’ for pre-school children and their parents/carers on Tuesday mornings in the Village Hall, and ‘English For You’ for parents at Grange Park Primary School on Wednesdays. These are proving to be very effective in helping us to meet people in Highlands Village, where community is sadly lacking. Our Tuesday Football sessions have paused since the autumn, mostly due to venue issues, but were an effective means of sharing the gospel with a group of young men.
Our bi-weekly services at Elizabeth Lodge Care Home continued, as well as a carol service with children from Grange Park Primary School joining us to sing. We also held a carol service at Blake Court. Our branch groups continued to meet throughout the year. They are a key means by which members of Grace Church Highlands and newcomers can enjoy fellowship with one another, studying the Bible, praying for one another, and encouraging one another to grow in Christlikeness.
‘Pop-up Cafés’ in Highlands Village Hall were a new initiative in 2023, building on the contacts gained through ‘Community Cafés’ in previous years. The first took place alongside an Easter Trail around Highlands Village, which has become a feature at Easter as well as Christmas. We were also pleased to be able to hold events such as our Summer Jazz Barbecue, a Christians in Sports quiz, and various events at Christmas. We have run Hope Explored courses and tried to promote use of ‘the Word One-to-One.’
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There was one baptism during the year and one thanksgiving for the birth of a child. The Minister conducted one burial of ashes, which is recorded in the parish church records at Cockfosters.
Grace Church Highlands is part of the Edmonton Episcopal Area in the Diocese of London, and as part of the Church of England we played a full part in the Deanery and Diocese. At the Annual Meeting in May 2023 the electoral roll of Grace Church Highlands stood at 99 members.
Financial review
Our budget for 2023 projected a deficit of £51,400, and the year closed with an actual deficit of £36,713.
Income from regular giving was £90,212, which was 6% lower than budgeted. Income from one off gifts was £23,288, which was 159% higher than budgeted, primarily due to a financial appeal that took place during the course of the year. The net effect was that income from voluntary donations was 8% higher than budgeted at £113,500, contributing to the lower deficit.
Expenditure was £5,481 below budget, which also contributed to the lower deficit. This was primarily driven by lower than budgeted spend on minister and staff stipend, salaries, expenses and accommodation.
At the end of the year the CIO had cash reserves of £191,495, the vast majority of which are unrestricted. The CIO also had an outstanding mortgage balance of £286,248 on the property occupied by the Minister, and accrued expenses totalling £5,224.
Looking forward to 2024 we are forecasting a deficit of £65,050. This is higher than the actual deficit for 2023, primarily because of our continued investment in the employment of a full-time Minister for Youth and Children (who was only employed for part of 2023).
While the investment in employing a Minister for Youth and Children is a planned investment funded out of the CIO’s existing healthy cash reserves, the trustees are conscious that deficits of this size are not sustainable in the long term. The Trustees would like to see the church grow to a point where this level of investment can be funded by in-year donations, but acknowledge that this is likely to be a slow process. In the meantime, the CIO is planning another financial appeal in 2024 in order to enable the church to continue investing in this way for a longer period.
Policy on Reserves
The trustees have determined that the charity should aim to hold unrestricted cash of no less than three months’ of unrestricted expenditure, so that the charity could continue to operate should income and/or expenditure vary adversely. Unrestricted expenditure in 2023 was £158,276, so three months’ unrestricted expenditure is therefore calculated as £39,569. At the end of 2023, the charity had unrestricted cash of £191,236, and so is complying with its reserves policy.
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Statement of financial activities
For the year ended 31 December 2023
| Notes | Unrestricted Funds 2023 £ Restricted Funds 2023 £ Total Funds 2023 £ Total Funds 2022 £ |
|---|---|
| Income Voluntary donations 3 Income from charitable activities 4 Interest Total income Expenditure Minister and staff stipend, salaries and expenses 5 Minister and staff accommodation 6 Venue hire for church services Church running costs 7 Evangelism, discipleship and training 8 Mission support and other donations 9 Total expenditure Net income and movement in funds Reconciliation of funds 14 Total funds brought forward Total funds carried forward |
113,082 418 113,500 103,771 3,457 0 3,457 1,932 4,706 0 4,706 1,826 121,245 418 121,663 107,529 |
| 83,603 0 83,603 69,216 35,849 0 35,849 17,436 15,512 0 15,512 14,011 3,975 0 3,975 5,474 11,337 100 11,437 11,275 8,000 0 8,000 5,300 158,276 100 158,376 122,712 |
|
| (37,031) 318 (36,713) (15,183) |
|
| 512,686 0 512,686 527,869 475,655 318 475,973 512,686 |
The notes on pages 9 to 16 form part of these accounts.
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Balance sheet
At 31 December 2023
| Notes | Unrestricted Funds 2023 £ Restricted Funds 2023 £ Total Funds 2023 £ Total Funds 2022 £ |
|---|---|
| Fixed assets Tangible assets 10 Total fixed assets Current assets Debtors 11 Cash at bank and in hand Total current assets Current liabilities Creditors - amounts falling due within one year 12 Total current liabilities Net current assets Total assets less current liabilities Long-term liabilities Creditors - amounts falling due after one year 13 Total long-term liabilities Total net assets Fund balances 14 General funds Designated funds Total unrestricted funds Restricted funds Total restricted funds Total funds |
568,082 0 568,082 568,082 568,082 0 568,082 568,082 |
| 7,809 59 7,867 9,680 191,236 259 191,495 231,754 199,044 318 199,362 241,434 |
|
| (11,569) 0 (11,569) (13,277) (11,569) 0 (11,569) (13,277) |
|
| 187,475 318 187,793 228,157 |
|
| 755,558 318 755,875 796,239 |
|
| (279,903) 0 (279,903) (283,553) (279,903) 0 (279,903) (283,553) |
|
| 475,655 318 475,973 512,686 |
|
| 471,303 0 471,303 512,686 4,352 0 4,352 0 475,655 0 475,655 512,686 |
|
| 0 318 318 0 0 318 318 0 |
|
| 475,655 318 475,973 512,686 |
The notes on pages 9 to 16 form part of these accounts.
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The financial statements V•Ere approved by the Church Counul on 20th May 2024 and signed on its behalf by.. The Rev¢J Jonathan Bell IMini$ter and Chair of the Churth Council) and Tim Catt (Church Warden)
Notes to the financial statements
For the year ended 31 December 2023
1. Statutory information
The charity is a charitable incorporated organisation registered with the Charity Commission in England & Wales. The charity's registered number and contact address can be found on the Charity Information page.
2. Accounting policies
Basis of financial statements
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") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
Going concern
The trustees 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.
Income
Voluntary donations are generally recognised when received. Where donations have been pledged or the church is notified that it is due a legacy distribution, these are recognised at the time of the pledge / notification if the amount to be received can be reliably determined. Recoverable gift aid is recognised at the same time as the donation to which it relates.
Income collected in respect of appeals made on behalf of other charities is held in restricted funds and subsequently paid to those charities.
Income from charitable activities represents income from goods and services supplied in furtherance of the charity's charitable objectives. It includes income from church events. Income from charitable activities is recognised when received.
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Interest income is accrued and recognised in the period in which it is earned.
Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred (i.e. in the period to which it relates) or, if earlier, when a constructive obligation for a payment arises.
The cost of raising funds is not significant and has not been separately disclosed.
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.
Fixed assets
The property occupied by the Minister is accounted for at historical cost. It is not depreciated as it is the CIO’s policy to continuously maintain the property to a high standard. Repairs and maintenance costs arising during the year are recognised in the Statement of Financial Activities under the heading ‘Minister and staff accommodation’ and are paid out of the ‘Property repairs and maintenance’ designated fund.
Movable church furnishings and equipment with an individual cost of less than £1,000 are written off when purchased.
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.
Taxation
The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
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 remain outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).
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Exemption from preparing a cash flow statement
The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.
Reclassifications in the Statement of Financial Activities
Income from charitable activities is now shown as a separate income item in the Statement of Financial Activities. Previously these amounts were netted off against the expenditure on these activities. Furthermore, many expenditure categories and sub-categories in the Statement of Financial Activities have been reclassified to more clearly reflect the church’s expenditure. Note that 2022 comparators have been reclassified on the same basis as far as possible, to allow for like-for-like comparisons with the 2023 figures.
3. Voluntary donations
| Total Funds 2023 £ Total Funds 2022 £ |
|
|---|---|
| Regular donations Regular gift aid donations Tax recoverable on regular gift aid donations Other regular donations Total regular donations Occasional donations Occasional gift aid donations Tax recoverable on occasional gift aid donations Other occasional donations Total occasional donations Total voluntary donations |
65,525 70,159 16,381 17,540 8,306 7,642 90,212 95,341 |
| 15,337 6,744 4,188 1,686 3,763 0 23,288 8,430 |
|
| 113,500 103,771 |
£318 (including gift aid) was collected on behalf of another charity (London City Mission), and held in a restricted fund. £100 was received towards the cost of the Easter Trail event, and held in a restricted fund.
‘Tax recoverable on occasional gift aid donations’ includes £354 that relates to a previous year.
4. Income from charitable activities
| Total Funds | Total Funds |
| 2023 | 2022 |
| £ | £ |
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| Regular outreach activities | 1,822 | 1,280 |
|---|---|---|
| Occasional outreach activities | 925 | 262 |
| Youth and children's work | 440 | 350 |
| Literature and publicity | 270 | 40 |
| Conferences, camps and training | 0 | 0 |
| Total income from charitable activities | 3,457 | 1,932 |
5. Minister and staff stipend, salaries and expenses
| Total Funds | Total Funds | |
| 2023 | 2022 | |
| £ | £ | |
| Minister and staff stipend, salaries, pension and national insurance | 82,299 | 68,095 |
| Minister and staff expenses | 1,304 | 1,121 |
| Total minister and staff stipend, salaries and expenses | 83,603 | 69,216 |
6. Minister and staff accommodation
| Total Funds | Total Funds | |
| 2023 | 2022 | |
| £ | £ | |
| Mortgage interest | 22,723 | 12,722 |
| Rent | 8,197 | 0 |
| Council tax, utilities and insurance | 5,819 | 4,714 |
| Repairs and maintenance | (889) | 0 |
| Total minister and staff accommodation | 35,849 | 17,436 |
‘Repairs and maintenance’ includes a reversal of accruals totalling £2,537 from previous years. A new ‘Property repairs and maintenance’ designated fund has been created by the trustees.
7. Church running costs
| Total Funds | Total Funds |
| 2023 | 2022 |
| £ | £ |
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| Website, subscriptions and licences | 647 | 625 |
|---|---|---|
| Refreshments | 1,195 | 353 |
| Insurance | 1,424 | 1,333 |
| Contribution to LDF common fund | 0 | 3,000 |
| Other | 709 | 163 |
| Total church running costs | 3,975 | 5,474 |
8. Evangelism, discipleship and training
| Total Funds | Total Funds | |
| 2023 | 2022 | |
| £ | £ | |
| Regular outreach activities | 2,481 | 3,208 |
| Occasional outreach activities | 2,494 | 1,098 |
| Youth and children's work | 2,155 | 2,081 |
| Literature and publicity | 2,096 | 1,385 |
| Conferences, camps and training | 2,211 | 3,503 |
| Total evangelism, discipleship and training | 11,437 | 11,275 |
9. Mission support and other donations
| Total Funds | Total Funds | |
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Mission partners - Overseas | 3,000 | 3,000 |
| Mission partners - UK | 1,500 | 2,000 |
| Other mission support and donations | 3,500 | 300 |
| Total mission support and other donations | 8,000 | 5,300 |
‘Mission Partners - UK’ includes a reversal of accruals totalling £500 from previous years.
10. Tangible assets
The CIO has a freehold interest in the property occupied by the Minister at 2 Firs Lane, Winchmore Hill, London N21 2HU. The amount of £568,082 shown in the balance sheet is stated at historical cost.
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11. Debtors
| Total Funds | Total Funds | |
| 2023 | 2022 | |
| £ | £ | |
| Tax recoverable on gift aid giving | 3,274 | 7,095 |
| Prepayments | 2,690 | 2,585 |
| Deposits | 1,904 | 0 |
| Total debtors | 7,867 | 9,680 |
’Deposits’ relates to a rental deposit for the accommodation of the Minister for Youth and Children.
12. Creditors - amounts falling due within one year
| Total Funds | Total Funds | |
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Capital repayments on mortgage due within one year | (6,345) | (9,259) |
| Accrued expenses | (5,224) | (4,018) |
| Total creditors - amounts falling due within one year | (11,569) | (13,277) |
13. Creditors - amounts falling due after one year
There is a capital repayment mortgage with a variable interest rate on the property occupied by the Minister (see note 9). At 31 December 2023 the interest rate on the mortgage was 8.25% and the outstanding balance on the mortgage was £286,248 (2022 - £292,813). Of this amount, £279,903 (2022 - £283,553) is payable after more than one year.
14. Funds
| Opening Balance 2023 £ Incoming Resources 2023 £ Outgoing Resources 2023 £ Transfers 2023 £ Closing Balance 2023 £ |
|
|---|---|
| General funds Designated funds Property repairs and maintenance fund |
512,686 121,245 (156,628) (6,000) 471,303 |
| 0 0 (1,648) 6,000 4,352 |
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| Total designated funds Total unrestricted funds Restricted funds Donations for LCM Donations for Easter trail event Total restricted funds Total funds |
0 0 (1,648) 6,000 4,352 |
|---|---|
| 512,686 121,245 (158,276) 0 475,655 |
|
| 0 318 0 0 318 0 100 (100) 0 0 0 418 (100) 0 318 |
|
| 512,686 121,663 (158,376) 0 475,973 |
| Designated | Restricted | |||
| General Funds | Funds | Funds | Total Funds | |
| 2023 | 2023 | 2023 | 2023 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 568,082 | 0 | 0 | 568,082 |
| Debtors | 7,809 | 0 | 59 | 7,867 |
| Cash at bank and in hand | 186,883 | 4,352 | 259 | 191,495 |
| Creditors - amounts falling due within one year | (11,569) | 0 | 0 | (11,569) |
| Creditors - amounts falling due after one year | (279,903) | 0 | 0 | (279,903) |
| Total net assets | 471,303 | 4,352 | 318 | 475,973 |
| Total Funds | |
| 2022 | |
| £ | |
| Total funds brought forward | 527,869 |
| Incoming resources | 107,529 |
| Outgoing resources | 122,712 |
| Total funds carried forward | 512,686 |
The trustees created a new ‘Property repairs and maintenance’ designated fund and transferred an opening balance of £6,000 into the fund.
15. Related party transactions
The Minister, Revd Jonathan Bell, is a trustee.
-
He received a stipend, national insurance and pension contributions during the year, the total cost of which was £40,150 (2022 - £40,225)
-
He was reimbursed for expenses totalling £482 (2022 - £373) during the year
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-
He was provided with accommodation during the year, as is customary for ministers of religion
-
He received subsidised council tax and utilities during the year totalling £4,198 (2022 - £4,714)
-
● He attended conferences, camps and training during the year at a value totalling £475 (2022 - £310)
The Minister for Youth and Children (from September 2023) is Laura Smith.
-
She received salary, national insurance and pension contributions during the year, the total cost of which was £10,669
-
She was reimbursed for expenses totalling £101 during the year
-
She was provided with accommodation during the year, as is customary for ministers of religion
-
She received subsidised council tax and utilities during the year totalling £925
-
She attended conferences, camps and training during the year at a value totalling £15
The Minister for Women and Outreach, Hilary Nicholls, was a trustee until 20 June 2023.
-
She received salary, national insurance and pension contributions during the year, the total cost of which was £18,777 (2022 - £18,128)
-
She was reimbursed for expenses totalling £501 (2022 - £424) during the year
-
She attended conferences, camps and training during the year at a value totalling £32 (2022 - £395)
The Ministry Associate (until August 2023) was Jonathan Haines.
-
He received salary, national insurance and pension contributions during the year, the total cost of which was £12,703 (2022 - £9,836)
-
He was reimbursed for expenses totalling £220 during the year (2022 - £329)
-
He attended conferences, camps and training during the year at a value totalling £1,649 (2022 - £2,462)
Note that payments to reimburse the above individuals during the year for purchases they made on behalf of the charity are not included in the above.
No other payments were made to any other related parties during the year other than payments to reimburse them for purchases they made on behalf of the charity.
Total voluntary donations received from related parties during the year were £39,040 excluding gift aid (2022 - £36,334). Where individuals were related parties for only part of the year, their voluntary donations across the whole year have been included in this total.
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