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2025-12-31-accounts

Grace Church Highlands CIO Annual report and financial statements

Year ended 31 December 2025

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 2025 to 31 December 2025. 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.

2

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,’ Christmas services and events, Halloween outreach, 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 once again held an open-air service in Highlands this year. We aim to follow up with Hope Explored courses, The Word One-to-One , and invitations to church services. We were delighted to be able to run the Al Massira course for the first time in 2025, engaging Muslim friends over several weeks.

Our bi-weekly services at Elizabeth Lodge Care Home continued. 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. In September 2025 we held a second ‘Weekend Together’, with Bishop Rod Thomas as our guest speaker. Rod is our ‘Additional Spiritual Overseer’ through the Church of England Evangelical Council. We held a Confirmation service in November, with seven candidates confirmed by the Bishop of Ebbsfleet. There were three baptisms during the year.

Grace Church Highlands is part of the Edmonton Episcopal Area in the Diocese of London. At the Annual Meeting in May 2025 the renewed electoral roll of Grace Church Highlands stood at 68 members.

3

Financial review

Our budget for 2025 projected a deficit of £22,025, and the year closed with an actual deficit of £24,597.

Income from regular giving was £113,650, which was £6,875 (6%) higher than budgeted. Income from one-off gifts was £12,815, which was £15,485 (55%) lower than budgeted, primarily due to a financial appeal that took place during the course of the year receiving a more modest response than expected. Overall, income from voluntary donations was £126,465, which was £8,610 (6%) lower than budgeted, contributing to the higher deficit.

Expenditure was £7,815 (5%) below budget. This was primarily driven by lower than expected expenditure on property repairs and maintenance, occasional outreach activities and venue hire for church services.

At the end of the year the CIO had unrestricted cash reserves of £92,508. The CIO also had an outstanding mortgage balance (including accrued interest) of £247,446 on the property occupied by the Minister.

Looking forward to 2026 we are forecasting a deficit of £26,900. This is slightly higher than the actual deficit for 2025, as we are anticipating a similar level of income but slightly higher expenditure in 2026 when compared with 2025. The latter is driven primarily by anticipated pay raises in the Church of England as well as an increase in planned mission giving for the year. These increases are partially offset by an anticipated reduction in housing costs due to the Minister for Youth and Children moving out of church funded accommodation part way through the year.

While the investment in employing a Minister for Youth and Children is a planned investment funded out of the CIO’s existing 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 a Minister for Youth and Children can be funded by in-year donations, but acknowledge that this is likely to be a slow process. The CIO is planning another annual financial appeal in 2026 in order to reduce the anticipated budget deficit and 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 2025 was £157,029, so three months’ unrestricted expenditure is therefore calculated as £39,257. At the end of 2025, the charity had unrestricted cash of £92,508, and so is complying with its reserves policy.

4

Independent examiner's report on the accounts

Section A Independent Examiner’s Report

Report to the trustees: Grace Church Highlands

On accounts for the year 31 December 2025 Ended:

Charity no: 1152828

Responsibilities and basis of report I report to the trustees on my
examination of the accounts of the
above charity (“the Trust”) for the
year ended 31/12/2025.
As the charity's trustees, you are
responsible for the preparation of the
accounts in accordance with the
requirements of the Charities Act
2011 (“the Act”).
I report in respect of my examination of the
Trust’s accounts carried out under section
145 of the 2011 Act and in carrying out my
examination, I have followed all the
applicable Directions given by the Charity
Commission under section 145(5)(b) of the
Act.
Independent examiner's statement I have completed my examination. I confirm
that no material matters have come to my
attention in connection with the examination
(other than that disclosed below *) which
gives me cause to believe that in, any
material respect:

the accounting records were not kept in
accordance with section 130 of the
Charities Act; or

the accounts did not accord with the
accounting records; or

the accounts did not comply with the
applicable requirements concerning the
form and content of accounts set out in
the Charities(Accounts and Reports)
Regulations 2008 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.
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.
Name Clive Makombera
Signed
Date 27thApril 2026
Address 48 Claremont Road, London EN4 0HP

Section B: Disclosures

The accounts identify underlying financial challenges facing the charity. It is important that the trustees keep the charity’s financial position under regular review to ensure that it is able to continue to operate as a going concern and to meet its obligations as they fall due.

Statement of financial activities

For the year ended 31 December 2025

Notes Unrestricted
Funds
2025
£
Restricted
Funds
2025
£
Total Funds
2025
£
Total Funds
2024
£
Income
Voluntary donatons
3
Income from charitable actvites
4
Interest
Total income
Expenditure
Minister and staf stpend, salaries and
expenses
5
Minister and staf accommodaton
6
Venue hire for church services
Church running costs
7
Evangelism, discipleship and training
8
Mission support and other donatons
9
Total expenditure
Net income and movement in funds
Reconciliaton of funds
14
Total funds brought forward
Total funds carried forward
125,581
884
126,465
145,474
4,915
0
4,915
6,551
2,108
0
2,108
4,291
132,604
884
133,488
156,315
76,556
0
76,556
87,227
43,375
0
43,375
52,700
14,534
0
14,534
15,885
2,762
0
2,762
4,601
11,303
0
11,303
12,173
8,500
1,056
9,556
8,418
157,029
1,056
158,085
181,004
(24,425)
(172)
(24,597)
(24,689)
451,080
204
451,284
475,973
426,655
32
426,687
451,284

The notes on pages 10 to 18 form part of these accounts.

7

Balance sheet

At 31 December 2025

Notes Unrestricted
Funds
2025
£
Restricted
Funds
2025
£
Total Funds
2025
£
Total Funds
2024
£
Fixed assets
Tangible assets
10
Total fxed assets
Current assets
Debtors
11
Cash at bank and in hand
Total current assets
Current liabilites
Creditors - amounts falling due within one
year
12
Total current liabilites
Net current assets
Total assets less current liabilites
Long-term liabilites
Creditors - amounts falling due afer one year
13
Total long-term liabilites
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
15,103
32
15,135
12,875
92,508
0
92,508
123,915
107,611
32
107,643
136,790
(7,223)
0
(7,223)
(6,375)
(7,223)
0
(7,223)
(6,375)
100,388
32
100,420
130,415
668,470
32
668,502
698,497
(241,816)
0
(241,816)
(247,213)
(241,816)
0
(241,816)
(247,213)
426,655
32
426,687
451,284
414,432
0
414,432
443,300
12,222
0
12,222
7,780
426,655
0
426,655
451,080
0
32
32
204
0
32
32
204
426,655
32
426,687
451,284

The notes on pages 10 to 18 form part of these accounts.

8

The financial statements were approved by the Church Council on 23rd March 2026 and signed on its behalf by: The Revd Jonathan Bell (Minister and Chair of the Church Council) and Tim Catt (Church Warden)


9

Notes to the financial statements

For the year ended 31 December 2025

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.

10

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).

11

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
2025
£
Total Funds
2024
£
Regular donatons
Regular gif aid donatons
Tax recoverable on regular gif aid donatons
Other regular donatons
Total regular donatons
Occasional donatons
Occasional gif aid donatons
Tax recoverable on occasional gif aid donatons
Other occasional donatons
Total occasional donatons
Total voluntary donatons
77,260
75,490
19,315
18,873
17,075
12,342
113,650
106,705
5,423
28,407
1,356
7,102
6,036
3,261
12,815
38,769
126,465
145,474

£884 (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
2025 2024
£ £
Regular outreach actvites 1,036 1,217
Occasional outreach actvites 1,357 2,622
Youth and children's work 330 675
Literature and publicity 86 147
Conferences, camps, training and discipleship 2,105 1,890
Total income from charitable actvites 4,915 6,551

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

12

5. Minister and staff stipend, salaries and expenses

Total Funds Total Funds
2025 2024
£ £
Minister and staf stpend, salaries, pension and natonal insurance 75,539 85,928
Minister and staf expenses 1,016 1,299
Total minister and staf stpend, salaries and expenses 76,556 87,227

‘Minister and staff stipend, salaries, pension and national insurance’ includes a negative accrual of £6,417 which reflects an amount that is due to be repaid to the CIO by HMRC (this amount is included as a debtor in the balance sheet).

6. Minister and staff accommodation

Total Funds Total Funds
2025 2024
£ £
Mortgage interest 14,352 23,214
Rent 20,897 19,998
Council tax, utlites and insurance 7,568 7,916
Repairs and maintenance 558 1,572
Total minister and staf accommodaton 43,375 52,700

7. Church running costs

Total Funds Total Funds
2025 2024
£ £
Website, subscriptons and licences 701 568
Refreshments 537 1,342
Insurance 523 1,734
Contributon to LDF common fund 0 0
Other 1,001 957
Total church running costs 2,762 4,601

13

8. Evangelism, discipleship and training

Total Funds Total Funds
2025 2024
£ £
Regular outreach actvites 1,528 1,108
Occasional outreach actvites 1,968 3,922
Youth and children's work 2,376 2,539
Literature and publicity 1,443 1,077
Conferences, camps, training and discipleship 3,989 3,528
Total evangelism, discipleship and training 11,303 12,173

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

9. Mission support and other donations

Total Funds Total Funds
2025 2024
£ £
Mission partners - Overseas 3,000 3,000
Mission partners - UK 2,000 2,000
Other mission support and donatons 4,556 3,418
Total mission support and other donatons 9,556 8,418

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
2025 2024
£ £
Tax recoverable on gif aid giving 5,511 7,986
Prepayments 7,720 2,984
Deposits 1904 1,904

14

15,135

12,875

Total debtors

’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
2025 2024
£ £
Capital repayments on mortgage due within one year (5,288) (4,836)
Accrued expenses (1,935) (1,539)
Total creditors - amounts falling due within one year (7,223) (6,375)

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 2025 the interest rate on the mortgage was 5.65% and the outstanding capital balance on the mortgage was £247,103 (2024 - £252,049). Of this amount, £241,816 (2024 - £247,213) is payable after more than one year.

14. Funds

Opening
Balance
2025
£
Incoming
Resources
2025
£
Outgoing
Resources
2025
£
Transfers
2025
£
Closing
Balance
2025
£
General funds
Designated funds
Property repairs and maintenance fund
Total designated funds
Total unrestricted funds
Restricted funds
Donatons for LCM
Total restricted funds
Total funds
443,300
132,604
(156,471)
(5,000)
414,432
7,780
0
(558)
5,000
12,222
7,780
0
(558)
5,000
12,222
451,080
132,604
(157,029)
0
426,655
204
884
(1,056)
0
32
204
884
(1,056)
0
32
451,284
133,488
(158,085)
0
426,687

15

Designated Restricted
General Funds Funds Funds Total Funds
2025 2025 2025 2025
£ £ £ £
Tangible fxed assets 568,082 0 0 568,082
Debtors 15,103 0 32 15,135
Cash at bank and in hand 80,286 12,222 0 92,508
Creditors - amounts falling due within one year (7,223) 0 0 (7,223)
Creditors - amounts falling due afer one year (241,816) 0 0 (241,816)
Total net assets 414,432 12,222 32 426,687
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
Restricted funds
Donatons for LCM
Total restricted funds
Total 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
318
304
(418)
0
204
318
304
(418)
0
204
475,973
156,315
(181,004)
0
451,284
General Funds
2024
£
Designated
Funds
2024
£
Restricted
Funds
2024
£
Total Funds
2024
£
Tangible fxed assets
Debtors
Cash at bank and in hand
Creditors - amounts falling due within one year
568,082
0
0
568,082
12,834
0
41
12,875
115,972
7,780
163
123,915
(6,375)
0
0
(6,375)

16

Creditors - amounts falling due afer one year (247,213) 0 0 (247,213)
Total net assets 443,300 7,780 204 451,284

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.

*Note that Laura Smith received statutory maternity pay from 29th May 2025 to the end of the year, 108.5% of which is reclaimable from HMRC. Taking this reclaimable amount into account, the total cost incurred by the CIO was £13,467.

**These amounts include the negative accrual of £1,152 referred to in note 5 of last year’s annual report and financial statements, £853 of which is assigned to Laura Smith and £299 of which is assigned to Hilary Nicholls.

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.

17

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 £47,276 excluding gift aid (2024 - £51,390). Where individuals were related parties for only part of the year, their voluntary donations across the whole year have been included in this total.

18