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2024-12-31-accounts

Grace Church Highlands CIO Annual report and financial statements

Year ended 31 December 2024

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 2024 to 31 December 2024. 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) Ares Kokkinos (Treasurer) Emily Hammer (Secretary) Heidi Bennett Marie Haines Paul Mason 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 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.

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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 (this Bishop’s Mission Order became permanent in 2023). 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. One-off events such as ‘Pop-up Cafés,’ our Summer Jazz BBQ and Sports Quiz are helpful both for meeting people locally and for members of Grace Church to invite people to join them and hear something of the Christian faith. We held an open-air service in Highlands this year for the first time since 2019. We aim to follow up with Hope Explored courses, the Word One-to-One, and invitations to church services. A small team undertook training in 2024 to run the Al Massira course, aiming to engage Muslim friends over several weeks.

Our bi-weekly services at Elizabeth Lodge Care Home continued. We also held a carol service at Blake Court. We were delighted to support a new Christian Union at Highlands School as well as the revitalisation of St Matthew’s Church, Ponders End.

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. In September 2024 we held a ‘Weekend Together’ (in lieu of a long overdue weekend away) which was well-attended with very positive feedback.

There were two baptisms during the year.

Grace Church Highlands is part of the Edmonton Episcopal Area in the Diocese of London. At the Annual Meeting in July 2024 the electoral roll of Grace Church Highlands stood at 86 members.

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Financial review

Our budget for 2024 projected a deficit of £65,050, and the year closed with an actual deficit of £24,689.

Income from regular giving was £106,705, which was 18% higher than budgeted. Income from one off gifts was £38,769, which was 68% higher than budgeted, primarily due to a particularly generous response to a financial appeal that took place during the course of the year. Overall, income from voluntary donations was therefore 28% higher than budgeted at £145,474, contributing to the lower deficit.

Expenditure was £5,696 below budget, which also contributed to the lower deficit. This was primarily driven by the fact that we were unexpectedly able to reclaim some employers’ National Insurance contributions, which led to lower than budgeted spend on minister and staff stipend, salaries and expenses.

The trustees made the decision to remortgage the property occupied by the Minister and to pay a lump sum to reduce the outstanding mortgage balance. This was in order to benefit from a lower interest rate and lower monthly mortgage payments. The mortgage was therefore switched to a new lender in May 2024, with an opening mortgage balance of £255,000. The CIO incurred £4,903 in remortgaging costs, but the result will be a significant decrease in interest paid on the mortgage going forward.

At the end of the year the CIO had cash reserves of £123,915, the vast majority of which are unrestricted. The CIO also had an outstanding mortgage capital balance of £252,049 on the property occupied by the Minister.

Looking forward to 2025 we are forecasting a deficit of £22,025. This is roughly in line with the actual deficit for 2024, however we are anticipating lower income and expenditure in 2025 when compared to 2024. The former is due to the fact that the amount of one off donations received in 2024 was especially high, and we are anticipating receiving a lower amount of one-off donations in 2025. The latter is primarily due to a significant decrease in mortgage interest payments for the property occupied by the Minister, and due to the fact that the Minister for Youth and Children is due to go on maternity leave in May 2025 (and we can reclaim statutory maternity pay).

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 the CIO cannot continue to run a yearly deficit indefinitely. 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 2025 in order to enable the church to continue investing in this way for a longer period. Beyond 2025, our plan is to have some sort of financial appeal or ‘giving day’ annually as part of our discipleship.

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 2024 was £180,586, so three months’ unrestricted expenditure is therefore calculated as £45,147. At the end of 2024, the charity had unrestricted cash of £123,752, and so is complying with its reserves policy.

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Independent examiner's report on the accounts Report to tho Tmtss /Al8mbern on the acrounts forth year ended 31 December 2024, as set out on pag8s 6 to 17 Respective responsibilities of trustees and examiner The charitys trustees are responsible for the preparation of the accounts. The charity's trustees rA)nstder that an audit is not required for the year under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination 18 needed. Accordingly, It is my Tesponslbility as independent examln&r. to examine the accounts under 8ectlon 145 of the CharIt￿8 Act: to follijw the procedures laid down In the General Dire¢Xions given by the Charity Commisslon {under section 145(5){b) of the Charities Act,. and to state whether particular matters have ¢ome to my attention. Basis of independent examiner's statement My examination vrds carried out in accordance with general Directlons given by the Charlty Commisslon. An exarninalion includes a review of the accounting records kept by the charity and a comparlson ol the accounts presented with those records. It also includes consideration of any unusual items or disclosures In the aC￿UnIS and seeking explanations from the trustees conceming any such matters. The procedures undertaken do not provide all the eviden￿ that would be required in an audlt. Consequently, no opinlon is glven as to whether the accounts present a Ime and fa'r, vlew, and the report is limited to those matters set out in the statement below. Independent examiner's statement In connection with my examlnatlon, no matter has ￿me to my attention.. 1. whtch glves me rea80nable Cause to believe that in, any material respect. the requirements: a. to keep acwunting records in accordance V￿th section 130 of the Charrties Act. and b. to prepare accounts which accord with the ac£ounting re￿rdS arKI cwty ￿1th the accounting requirements of the Charities Act have not been met,. or 2. to whic, in my opinion, attention should be dravm in order to enable a proper understanding of the account5 to be reached. Micwl Slevin MBA, 8a (Hons) Finanr 5th May 2025 40 East View Bamet EN5 5TN

Statement of financial activities

For the year ended 31 December 2024

Notes Unrestricted
Funds
2024
£
Restricted
Funds
2024
£
Total Funds
2024
£
Total Funds
2023
£
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
145,170
304
145,474
113,500
6,551
0
6,551
3,457
4,291
0
4,291
4,706
156,011
304
156,315
121,663
87,227
0
87,227
83,603
52,700
0
52,700
35,849
15,885
0
15,885
15,512
4,601
0
4,601
3,975
12,173
0
12,173
11,437
8,000
418
8,418
8,000
180,586
418
181,004
158,376
(24,575)
(114)
(24,689)
(36,713)
475,655
318
475,973
512,686
451,080
204
451,284
475,973

The notes on pages 9 to 17 form part of these accounts.

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Balance sheet

At 31 December 2024

Notes Unrestricted
Funds
2024
£
Restricted
Funds
2024
£
Total Funds
2024
£
Total Funds
2023
£
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
12,834
41
12,875
7,867
123,752
163
123,915
191,495
136,586
204
136,790
199,362
(6,375)
0
(6,375)
(11,569)
(6,375)
0
(6,375)
(11,569)
130,211
204
130,415
187,793
698,293
204
698,497
755,875
(247,213)
0
(247,213)
(279,903)
(247,213)
0
(247,213)
(279,903)
451,080
204
451,284
475,973
443,300
0
443,300
471,303
7,780
0
7,780
4,352
451,080
0
451,080
475,655
0
204
204
318
0
204
204
318
451,080
204
451,284
475,973

The notes on pages 9 to 17 form part of these accounts.

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The financial statements were approved by the Church Council on 31 st March 2025 and signed on its behalf by= The Revd Jonathan Bell (Minister and Chair of the Church Council) and Tim Catt (Church Warden)

Notes to the financial statements

For the year ended 31 December 2024

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.

9

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).

10

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.

3. Voluntary donations

Total Funds
2024
£
Total Funds
2023
£
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
75,490
65,525
18,873
16,381
12,342
8,306
106,705
90,212
28,407
15,337
7,102
4,188
3,261
3,763
38,769
23,288
145,474
113,500

£304 (including gift aid) was collected on behalf of another charity (London City Mission), and held in a restricted fund.

4. Income from charitable activities

Total Funds Total Funds
2024 2023
£ £
Regular outreach activities 1,217 1,822
Occasional outreach activities 2,622 925
Youth and children's work 675 440
Literature and publicity 147 270
Conferences, camps, training and discipleship 1,890 0
Total income from charitable activities 6,551 3,457

‘Conferences, camps, training and discipleship’ includes income from a church weekend together.

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5. Minister and staff stipend, salaries and expenses

Total Funds Total Funds
2024 2023
£ £
Minister and staff stipend, salaries, pension and national insurance 85,928 82,299
Minister and staff expenses 1,299 1,304
Total minister and staff stipend, salaries and expenses 87,227 83,603

‘Minister and staff stipend, salaries, pension and national insurance’ includes a negative accrual of £1,152 which reflects an overpayment in employers’ national insurance that is still due to be repaid (this amount is included as a debtor in the balance sheet).

6. Minister and staff accommodation

Total Funds Total Funds
2024 2023
£ £
Mortgage interest 23,214 22,723
Rent 19,998 8,197
Council tax, utilities and insurance 7,916 5,819
Repairs and maintenance 1,572 (889)
Total minister and staff accommodation 52,700 35,849

‘Mortgage interest’ includes remortgaging costs of £4,903 (see note 13).

7. Church running costs

Total Funds Total Funds
2024 2023
£ £
Website, subscriptions and licences 568 647
Refreshments 1,342 1,195
Insurance 1,734 1,424
Contribution to LDF common fund 0 0
Other 957 709
Total church running costs 4,601 3,975

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8. Evangelism, discipleship and training

Total Funds Total Funds
2024 2023
£ £
Regular outreach activities 1,108 2,481
Occasional outreach activities 3,922 2,494
Youth and children's work 2,539 2,155
Literature and publicity 1,077 2,096
Conferences, camps, training and discipleship 3,528 2,211
Total evangelism, discipleship and training 12,173 11,437

‘Conferences, camps, training and discipleship’ includes expenditure on a church weekend together.

9. Mission support and other donations

Total Funds Total Funds
2024 2023
£ £
Mission partners - Overseas 3,000 3,000
Mission partners - UK 2,000 1,500
Other mission support and donations 3,418 3,500
Total mission support and other donations 8,418 8,000

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.

11. Debtors

Total Funds Total Funds
2024 2023
£ £
Tax recoverable on gift aid giving 7,986 3,274
Prepayments 2,984 2,690

13

Deposits 1904 1,904 Total debtors 12,875 7,867

’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
2024 2023
£ £
Capital repayments on mortgage due within one year (4,836) (6,345)
Accrued expenses (1,539) (5,224)
Total creditors - amounts falling due within one year (6,375) (11,569)

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 10). At 31 December 2024 the interest rate on the mortgage was 5.9% and the outstanding capital balance on the mortgage was £252,049 (2023 - £286,248). Of this amount, £247,213 (2023 - £279,903) is payable after more than one year.

Note that the trustees made the decision to remortgage the property occupied by the Minister and to pay a lump sum to reduce the outstanding mortgage balance. This was in order to benefit from a lower interest rate and lower monthly mortgage payments. The mortgage was therefore switched to a new lender in May 2024, with an opening mortgage balance of £255,000.

14. Funds

Opening
Balance
2024
£
Incoming
Resources
2024
£
Outgoing
Resources
2024
£
Transfers
2024
£
Closing
Balance
2024
£
General funds
Designated funds
Property repairs and maintenance fund
Total designated funds
Total unrestricted funds
471,303
156,011
(179,014)
(5,000)
443,300
4,352
0
(1,572)
5,000
7,780
4,352
0
(1,572)
5,000
7,780
475,655
156,011
(180,586)
0
451,080

14

Restricted funds
Donations for LCM 318 304 (418) 0 204
Total restricted funds 318 304 (418) 0 204
Total funds 475,973 156,315 (181,004) 0 451,284
Designated Restricted
General Funds Funds Funds Total Funds
2024 2024 2024 2024
£ £ £ £
Tangible fixed assets 568,082 0 0 568,082
Debtors 12,834 0 41 12,875
Cash at bank and in hand 115,972 7,780 163 123,915
Creditors - amounts falling due within one year (6,375) 0 0 (6,375)
Creditors - amounts falling due after one year (247,213) 0 0 (247,213)
Total net assets 443,300 7,780 204 451,284
Opening
Balance
2023
£
Incoming
Resources
2023
£
Outgoing
Resources
2023
£
Transfers
2023
£
Closing
Balance
2023
£
General funds
Designated funds
Property repairs and maintenance fund
Total designated funds
Total unrestricted funds
Restricted funds
Donations for LCM
Donations for Easter trail event
Total restricted funds
Total funds
512,686
121,245
(156,628)
(6,000)
471,303
0
0
(1,648)
6,000
4,352
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

15

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

15. Related party transactions

The Minister is Revd Jonathan Bell - he is also a trustee.

The Minister for Youth and Children is Laura Smith.

The Minister for Women and Outreach is Hilary Nicholls.

*These amounts do not include the negative accrual of £1,152 referred to in note 5.

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.

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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.

Note that church staff are not required to pay to attend ticketed church events or weekends together, as they are attending these as part of their roles as church staff. As such, the value of free or subsidised attendance to ticketed church events and weekends together for church staff is not included in the above. Similarly, the value of any books provided to church staff to support them in their roles as church staff are not included in the above.

Total voluntary donations received from related parties during the year were £51,390 excluding gift aid (2023 - £39,040). 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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