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2021-08-31-accounts

Charity registration number 1153068

JUBILEE COMMUNITY CHURCH (EG) CIO ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

JUBILEE COMMUNITY CHURCH (EG) CIO

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr M E Harvey
H Baptist (Appointed 28 June 2021)
I M Watt (Appointed 12 October 2020)
N Down
M J Berry
C M Payne
P F Trathen-Harris
Company number 1153068
Registered office Jubilee Community Centre
Charlwoods Road
East Grinstead
West Sussex
RH19 2HL
Auditor Richard Place Dobson Services Limited
1-7 Station Road
Crawley
West Sussex
RH10 1HT
Bankers Lloyds TSB Bank Limited
Commercial Banking Division
25 Gresham Street
London
EC2V 7HN
Solicitors ASB Law
Innovis House.
108 High Street
Crawley
West Sussex
RH10 1AS

JUBILEE COMMUNITY CHURCH (EG) CIO

CONTENTS

Page
Trustees report 1 - 5
Independent auditor's report 6 - 8
Statement of financial activities 9 - 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 26

JUBILEE COMMUNITY CHURCH (EG) CIO

TRUSTEES REPORT

FOR THE YEAR ENDED 31 AUGUST 2021

The trustees present their annual report and financial statements for the year ended 31 August 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Objectives and activities

When approving the charity’s objectives the trustees are aware of the Charity Commission’s guidance on public benefit in The Advancement of Religion for the Public Benefit and have had regard to it in their administration of the charity.

The trustees believe that by further advancement of the Christian faith and by supporting chosen Christian or charitable institutions or work, the charity can provide a benefit to the public by:

The Charity’s Primary Objects are:

To further the advancement of the Christian faith in the United Kingdom and overseas by

Principal Activities

Donations by the charity are made at the discretion of the elders in consultation with the trustees. These donations are usually based on relationship / affiliation rather than being made to unrelated third parties.

The charity is dependent upon a number of factors outside its control, which may adversely affect the achievement of its objectives:

1

JUBILEE COMMUNITY CHURCH (EG) CIO

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance

Activities

Attendance and membership at Jubilee Community Church during the last 12 months have continued to be strong. We see in excess of 400 people (of whom 300 are adults) regularly participating in church activities and contributing to the life of the church. Alongside Christian discipleship and training, we actively encourage involvement in one of the many teams across the church and are pleased to see around 55% of our adult membership engaged in this way.

Our aim is to reach out to families within the community with whom we would otherwise have no contact. To that end we have continued to run half term kids’ clubs and other family events to supplement our Sunday work. We also continue our work amongst the town’s youth, through Sunday and mid-week meetings, trips, summer camps and weekly open youth groups. We continue to see particular growth in events focussed on the needs of our older members and contacts. These activities are all enhanced by the availability of the centre facilities. Our initiative, the Jubilee Hub, which was established in 2018 continues to flourish. The Jubilee Hub is aimed specifically at those who struggle to connect with community. The Hub provides a fantastic opportunity for friendship building and support, especially for those adults with additional needs. We have also worked hard at our inclusion policy and to this end have appointed a part time inclusion officer.

We continue to encourage volunteering in broader community activities through our ‘Jubilee Initiative’ which includes Fegans, Foodbank, Home for Good and prison visiting. We also devote significant resources to the spread of the Christian gospel overseas, primarily working with church partners in other nations to assist with further church planting, the development of leaders and compassionate works amongst the poor.

As at the end of the current the financial year, the Jubilee Community Centre will have been open for over ten years, and continues to fulfil the vision for which it was developed. We now see around 3,000 people using the centre on a weekly basis.

Staffing & Volunteers

The charity employs 11 staff, including three of the church’s senior leadership team, one 0-18s co-ordinators, a centre manager, caretaker, finance manager, two church administrators and two part time receptionists to assist with the running of the community centre.

The church is also heavily dependent on volunteers who freely give their time to enable many of the charitable activities and church ministries to take place. However, we remain delighted at the large number of individuals who do support the charity in this manner.

2

JUBILEE COMMUNITY CHURCH (EG) CIO

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

Financial review

The charity received total income of £558,141 during the year ended 31 August 2021. This compares to £613,664 during the previous year.

Income included £63,015 tax refunded on giving under the Gift Aid Scheme and lease and rental income of £145,515 from the Jubilee Community Centre. Grants received this year included £1,834 government grants for support during the coronavirus pandemic. The vast majority of the remaining income was received from members of Jubilee Community Church on a voluntary basis.

Of the total revenue expenditure of £457,869, £226,477 (49%) related to staff costs, £44,916 (10%) was granted to individuals or organisations external to Jubilee Community Church in pursuit of the objects of the charity, and the remaining 41% covered training and conference costs, building maintenance and other church administrative costs.

The charity made a surplus of £100,272 in the year, compared to a surplus of £111,659 in the previous year.

Net current assets at 31st August 2021 were £260,324 (2020: £248,576).

Reserves brought forward from 2020 totalled £2,763,244. These increased to £2,863,516 by 31st August 2021 of which the majority was restricted Building Funds tied up in the Jubilee Community Centre.

The reserves are divided between Restricted funds totalling £2,303,403 and Unrestricted funds totalling £560,113, of which £297,182 are General funds and £262,931 are Designated funds (primarily the Building Designated Fund), which is used for the maintenance and general running costs of the building throughout the year. The General Fund balance is managed to ensure that the charity holds the three months’ operating expenses as required under the Trustees’ risk management policy. At 31st August 2021, the General funds represented over 11 months' unrestricted operating expenses. The Trustees are aware that reserves are high this year but they are anticipating a number of projects which will require more staff going forward so it is expected that expenditure will increase. The Trustees have also agreed to support a new café, which is to be used by the local community. There is expected to be a substantial amount invested in set up costs, which the Charity will incur.

Plans for future periods

Our core objective remains to focus on activities that enable the spread of the Christian gospel through local church communities, both in the UK and overseas. We hope to see our membership and attendance grow further during the course of the next 12 months, with our focus on reaching all ages.

The Covid-19 pandemic had compelled us to move our events, courses and services on-line. Using various cloud based video conferencing services as well as a variety of social media platforms and we continue to connect with a wide range of people. Now that Covid-19 regulations are relaxed we will once again be hosting regional conferences, and continuing to fully participate in initiatives associated with the New Ground group of churches to which we are affiliated, as well as working with other local Christian churches.

We will also continue to invest in the Jubilee Community Centre, in order to maximise the benefit to the local community, maximise our income and accelerate our debt repayment if income permits.

Structure, governance and management

The trustees who served during the year and up to the date of signature of the financial statements were:

Mr M E Harvey H Baptist (Appointed 28 June 2021) I M Watt (Appointed 12 October 2020) N Down M J Berry C M Payne P F Trathen-Harris

3

JUBILEE COMMUNITY CHURCH (EG) CIO

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

The charity was registered on 25 July 2013 and is governed by its constitution dated 25th July 2013 and amended on 5th January 2014.

The governing document provides for a minimum of three trustees, who must be members of Jubilee Community Church, East Grinstead, to administer and manage the charity constituted as a charitable incorporated organisation (CIO).

At every annual general meeting of the members of the CIO, subsequent to the first AGM, one-third of the charity trustees shall retire from office. They can then be reappointed or new trustees appointed.

The body of trustees works very closely with the senior leadership of Jubilee Community Church. Whilst upholding their legal responsibilities, the trustees look to the church leadership team for overall vision and direction.

Jubilee Community Church is affiliated to the ‘New Ground’ family of churches and the senior leadership of the church looks to certain other leaders in this wider community for personal and spiritual insight, as well as taking advice on governance structures and issues.

The trustees operate a child protection and vulnerable persons’ policy and perform routine risk assessments for all church activities. Health and safety consideration is given to staff and the public environments in which the church operates.

New trustees undergo a period of induction to brief them on their legal obligations under charity law, the charity’s objectives and activities and the charity’s recent financial performance. During the induction they meet other trustees, key employees and church leaders.

Statement of trustees responsibilities

The trustees are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the and of the incoming resources and application of resources of the for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the charity's assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

4

JUBILEE COMMUNITY CHURCH (EG) CIO

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

Risk Management

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The trustees have a risk management strategy that comprises:

A key element in the management of financial risk is the setting of a reserves policy and its regular review by the trustees. As a consequence of the purchase of the church building, the CIO has entered into a commercial loan agreement to fund the purchase and the trustees will not hold extensive cash reserves in current and deposit accounts that might otherwise offset borrowing. The CIO will, however, retain sufficient funds to cover three months’ operating expenses.

The trustees have responded promptly to the current COVID-19 situation, by initially increasing the number of trustees meetings from one a month to two a month, and creating sub groups within the trustees team to bring recommendations to the trustees meetings on matters such as staffing issues from the HR sub group, and grants or loan options available to us from a finance sub group.

Action was taken promptly to furlough four members of our regular staff team and four members of our casual staff.

The finance team have arranged a six month capital repayment holiday on our outstanding loans, and other options have been discussed at length with trustees such as options for delaying payments where the option has been offered.

The trustees have taken the approach to preserve cash where possible and considered sensible to do so, whilst also balancing the church's aims and objectives to be generous where appropriate and provide for the poor.

Budgets have been reviewed in light of the current situation and the significant reduction of our income from the building, and also the anticipated knock-on effect for our church finances and the finances of our members and community which we wish to be able to support going forward.

The trustees report was approved by the Board of Trustees.

Date: 27 June 2022.............................................

5

JUBILEE COMMUNITY CHURCH (EG) CIO

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF JUBILEE COMMUNITY CHURCH (EG) CIO

Opinion

We have audited the financial statements of Jubilee Community Church (East Grinstead) the charitable incorporated organisation for the year ended 31 August 2021 which comprise of the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the ’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

6

JUBILEE COMMUNITY CHURCH (EG) CIO

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF JUBILEE COMMUNITY CHURCH (EG) CIO

Responsibilities of trustees

As explained more fully in the statement of trustees responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the ’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatements due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, the audit engagement team made enquiries of management, and those charged with governance, regarding the procedures relating to identifying, evaluating and complying with;

  1. laws and regulations and whether they were aware of any instances of non-compliance;

  2. detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  3. the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, General Data Protection Regulations, Charities Act 2011, Charities Statement of Recommended Practice and employment law and regulations. We performed audit procedures to detect non-compliance, which may have a material impact on the financial statements. These included reviewing financial statement disclosures and evaluating advice received from external advisors. There were no significant laws and regulations we deemed as having an indirect impact on the financial statements.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the rationale in relation to any significant, unusual transactions and transactions entered into outside of the normal course of business.

7

JUBILEE COMMUNITY CHURCH (EG) CIO

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF JUBILEE COMMUNITY CHURCH (EG) CIO

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Place Dobson Services Limited

Chartered Accountants 27 June 2022 1 - 7 Station Road Date Crawley West Sussex RH10 1HT

is eligible for appointment as auditor of the by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

8

JUBILEE COMMUNITY CHURCH (EG) CIO

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2021

Current financial year
Unrestricted Unrestricted
Restricted
funds
funds
funds
general
designated
2021
2021
2021
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
391,309
-
9,259
Charitable activities
4
-
109,930
-
Other trading activities
5
-
25,907
21,334
Other income
6
402
-
-
Total income
391,711
135,837
30,593
Expenditure on:
Charitable activities
7
310,116
84,830
62,923
Net incoming/(outgoing) resources before
transfers
81,595
51,007
(32,330)
Net incoming/(outgoing) resources before
transfers
81,595
51,007
(32,330)
Gross transfers between funds
1,500
(68,499)
66,999
Net income for the year/
Net movement in funds
83,095
(17,492)
34,669
Fund balances at 1 September 2020
214,087
280,423
2,268,734
Fund balances at 31 August 2021
297,182
262,931
2,303,403		 Total
2021
£
400,568
109,930
47,241
402
558,141
457,869
100,272
100,272
-
100,272
2,763,244
2,863,516		 Total
2020
£
479,343
87,004
47,231
86
613,664
502,005
111,659
111,659
-
111,659
2,651,585
2,763,244

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

9

JUBILEE COMMUNITY CHURCH (EG) CIO

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2021

Prior financial year
Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2020
2020
2020
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
450,113
-
29,230
Charitable activities
4
-
87,004
-
Other trading activities
5
11,807
35,424
-
Other income
6
86
-
-
Total income
462,006
122,428
29,230
Expenditure on:
Charitable activities
7
380,579
64,108
57,318
Net incoming/(outgoing) resources before transfers
81,427
58,320
(28,088)
Gross transfers between funds
-
(47,675)
47,675
Net income for the year/
Net movement in funds
81,427
10,645
19,587
Fund balances at 1 September 2019
87,184
315,254
2,249,147
Fund balances at 31 August 2020
168,611
325,899
2,268,734		 Total
2020
£
479,343
87,004
47,231
86
613,664
502,005
111,659
-
111,659
2,651,585
2,763,244

10

JUBILEE COMMUNITY CHURCH (EG) CIO

BALANCE SHEET

AS AT 31 AUGUST 2021

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
15
Net assets
Income funds
Restricted funds
16
Unrestricted funds
Designated funds
17
General unrestricted funds		 2021
£
55,930
321,301
377,231
(116,907)
262,931
297,182		 £
3,083,087
260,324
3,343,411
(479,895)
2,863,516
2,303,403
560,113
2,863,516		 2020
£
54,049
304,272
358,321
(109,745)
280,422
214,088		 £
3,070,607
248,576
3,319,183
(555,939)
2,763,244
2,268,734
494,510
2,763,244

The financial statements were approved by the Trustees on 27 June 2022

C M Payne

Trustee

11

JUBILEE COMMUNITY CHURCH (EG) CIO

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Cash flows from operating activities
Cash generated from operations
21
Investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Financing activities
Repayment of borrowings
Repayment of bank loans
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(61,518)
-
(68,499)		 £
147,046
(61,518)
(68,499)
17,029
304,272
321,301		 2020
£
-
(6,000)
(47,676)		 £
178,760
-
(53,676)
125,084
179,188
304,272

12

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Charity information

Jubilee Community Church (East Grinstead) is a Charitable Incorporated Organisation, registered with the Charity Commission for England and Wales (number 1153068), principal address as set out on page 2. The charity constitutes a public benefit entity as defined by FRS102.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charitable Incorporated Organisation (CIO) association constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the . Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention in accordance with applicable UK accounting standards and follow the recommendations in Statement of Recommended Practice: Accounting and Reporting by Charities (SORP FRS102) effective 1st January 2019.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

1.2 Going concern

The trustees do not consider that there are any key assumptions concerning the future, or any other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

In line with Charity Commission guidance, (The implications of COVID 19 control measures and charity financial reporting), as reported elsewhere, the trustees have implemented procedures to manage the church's financial health and consider the church to remain a going concern. In conclusion and in good faith, they do not consider that there are any key assumptions concerning the future, or any other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

1.3 Charitable funds

Unrestricted funds arise from offerings, donations and other income generated for the objects of the charity without further specified purpose and available as general funds.

Restricted funds are to be used for the specific purposes as laid down by the donor and may not be used for any other purpose. The primary restricted fund held by the CIO is the Building Fund which is used as follows:

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

13

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

1.4 Income

Voluntary income received by way of donations, legacies and other gifts is included in full in the Statement of Financial Activities when received. Voluntary income received by way of grants is included in the Statement of Financial Activities when there is evidence of entitlement to the grant, receipt is probable, and its amount can be measured reliably. Income from leases and short-term room hire is recognised over the period of the lease/hire.

1.5 Expenditure

Liabilities are recognised as expenditure as soon as:

Support and governance costs, which include staff costs and legal and statutory costs incurred in running the Charity, are allocated to each charitable activity based on time spent on each activity. No support or governance costs are allocated to Ministry gifts.

1.6 Tangible fixed assets

Freehold land and buildings are recognised at historic cost in the accounts. Cost includes the purchase price and related expenditure, together with the cost of the initial redevelopment of and subsequent improvements to the land and buildings. Land is not depreciated. Buildings are depreciated, in order that the difference between their cost and estimated residual value is charged to the SOFA evenly over the estimated useful life of 40 years.

The residual value is estimated to be the current open market value, which is less than the historic cost. In the trustees’ judgement, the historic cost fairly represents the value of the land and buildings as a church and a community centre, whereas the market value represents the value of the land and buildings when they are no longer useful for this purpose. All other assets with an acquisition cost exceeding £500 are capitalised at their original cost.

Donated assets are included in fixed assets at valuation at the date received, where the valuation exceeds £500. There were no additions for this year.

Depreciation is provided on equipment and furniture only at rates to write off the cost of each asset over its estimated useful life using the rates set out below.

Freehold land and buildings 40 years
Building fixtures 10.0% p.a.
Music equipment 12.5% p.a.
Fixtures and fittings 25.0% p.a.
Computers 33.3% p.a.

1.7 Impairment of fixed assets

At each reporting end date, the reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

14

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

1.9 Financial instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. This includes loans on commercial terms as described below. In addition, cash at bank and in hand is initially recorded and subsequently measured at face value, trade debtors and trade creditors are initially recorded at the transaction value, and subsequently measured at transaction value less payments on account, and in the case of trade debtors less any provision for impairment.

1.10 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12 Employee benefits

Employee benefits are recognised in the period to which they relate.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 VAT

VAT is partially recoverable on building costs including the development and running of the Jubilee Community Centre. The recoverable VAT is calculated on a building usage basis as income generated from the leasing and rental of the building is vatable. The irrecoverable VAT is included within management and administration expenses in the Statement of Financial Activities.

Gifts and donations payable

Gifts and donations are payable to other charities and good causes with which the charity is affiliated. The amount donated is at the discretion of the Church Elders and is recorded in the Statement of Financial Activities when paid. Beneficial loans

From time to time, the charity makes loans at below-market interest rates. These loans are made in order to further the charity’s objectives rather than to make a financial return. Similarly, the charity sometimes receives loans at below-market interest rates. These loans are made in order to further the lender’s charitable purposes rather than to make a financial return. Therefore all of these loans are valued at the amount paid or received by the charity, less any repayments, plus interest (if any) accrued on the loan, and further adjusted downwards if necessary for any impairment.

Loans on commercial terms are recorded in the balance sheet at the amount originally borrowed. Interest payable on such loans is charged to the SOFA based on the period to which it relates.

Gift aid

Gift Aid is recognised as income in the same period as the donations to which it relates.

15

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

2 Critical accounting estimates and judgements

The preparation of financial statements requires the use of accounting estimates and assumptions by the trustees. It also requires trustees to exercise their judgement in the process of applying the accounting policies.

In the judgement of the trustees, the freehold land and buildings are held primarily for operational use by the charity. At present not all of the property has been developed to the charity’s requirements, and the undeveloped section is leased to a 3rd party. However, this is a short term measure pending the availability of funding for redevelopment, and this section of the property does not constitute an investment property.

The trustees' estimates of the useful life and residual value of the freehold land and buildings are discussed below.

The trustees do not consider that there are any key assumptions concerning the future, or any other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

3 Donations and grants

Unrestricted
Restricted
funds
funds
general
2021
2021
£
£
Regular donations and
legacies
389,475
9,259
Grants
1,834
-
391,309
9,259
Charitable activities
Income from charitable activities		 Total
Unrestricted
Restricted
Total
funds
funds
general
2021
2020
2020
2020
£
£
£
£
398,734
436,493
10,191
446,684
1,834
13,620
19,039
32,659
400,568
450,113
29,230
479,343
Charitable
Activities
Income
Charitable
Activities
Income
2021
2020
£
£
109,930
87,004		 Total
2020
£
446,684
32,659
479,343

4 Charitable activities

16

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

5 Other trading activities

Unrestricted Restricted Total Unrestricted Unrestricted Total
funds funds funds funds
designated general designated
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Other trading activities 25,907 21,334 47,241 11,807 35,424 47,231
Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Other income 25 -
Investment income 377 86
402 86

17

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

7 Charitable activities

Church
Ministry
2021
£
Staff costs
55,862
Depreciation and impairment
-
Photocopy, printing and
publishing
3,025
Supplies and stationary
1,718
Speakers
450
Conferences and training
1,226
Special events
2,710
Small equipment
80
Telephone and computer costs
10,229
Travel and refreshments
495
Ministry gifts
-
Charitable giving
-
Direct New Ground Gifts
-
Utilities
-
Premises hire
-
75,795
Share of support costs (see
note 8)
9,119
Share of governance costs
(see note 8)
13,246
98,160
Analysis by fund
Unrestricted funds - general
98,160
Unrestricted funds -
designated
-
Restricted funds
-
98,160		 Youth
Projects
2021
£
48,278
-
15
794
-
-
1,459
675
86
297
-
-
-
-
-
51,604
1,906
347
53,857
53,857
-
-
53,857		 Gifts
Building
2021
2021
£
£
-
75,294
-
49,038
-
170
-
14
-
-
-
-
-
-
-
686
-
741
-
-
25,318
-
12,798
-
6,800
-
-
33,879
-
-
44,916
159,822
-
99,614
-
1,500
44,916
260,936
44,916
113,183
-
84,830
-
62,923
44,916
260,936		 Total
2021
£
179,434
49,038
3,210
2,526
450
1,226
4,169
1,441
11,056
792
25,318
12,798
6,800
33,879
-
332,137
110,639
15,093
457,869
310,116
84,830
62,923
457,869		 Total
2020
£
183,502
45,477
7,747
5,583
610
10,219
4,662
932
8,259
7,402
5,611
38,276
6,800
34,307
1,353
360,740
125,992
15,273
502,005
380,579
64,108
57,318
502,005

18

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

7 Charitable activities

For the year ended 31 August 2020

Church
Ministry
£
Staff costs
56,627
Depreciation and impairment
-
Photocopy, printing and publishing
7,439
Supplies and stationary
4,714
Speakers
610
Conferences and training
8,778
Special events
3,382
Small equipment
350
Telephone and computer costs
7,912
Travel and refreshments
5,961
Ministry gifts
-
Charitable giving
-
Direct New Ground Gifts
-
Utilities
-
Premises hire
1,109
96,882
Share of support costs (see note 8)
25,703
Share of governance costs (see note 8)
4,585
127,170
Analysis by fund
Unrestricted funds - general
127,170
Unrestricted funds - designated
-
Restricted funds
-
127,170		 Youth
Projects
£
52,678
-
272
493
-
1,441
1,280
350
187
1,392
-
-
-
-
244
58,337
11,011
1,718
71,066
71,066
-
-
71,066		 Gifts
Building
£
£
-
74,197
-
45,477
-
36
-
376
-
-
-
-
-
-
-
232
-
160
-
49
5,611
-
38,276
-
6,800
-
-
34,307
-
-
50,687
154,834
-
89,278
-
8,970
50,687
253,082
50,687
131,656
-
64,108
-
57,318
50,687
253,082		 Total
2020
£
183,502
45,477
7,747
5,583
610
10,219
4,662
932
8,259
7,402
5,611
38,276
6,800
34,307
1,353
360,740
125,992
15,273
502,005
380,579
64,108
57,318
502,005

19

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

8 Support costs

Support costs
Governance
costs
£
£
Staff costs
47,043
-
Bank charges
2,350
-
Mortgage and bank loan
interest
11,095
-
Insurance
8,766
-
Sundry expenses
1,311
-
Bad debt
500
-
Building maintenance
39,574
-
Telephone
-
-
Conference
-
-
Photocopying
-
-
Audit fees
-
7,000
Accountancy
-
4,138
Legal and professional
-
3,955
110,639
15,093
Analysed between
Charitable activities
110,639
15,093		 2021
Support costs
Governance
costs
£
£
£
47,043
49,087
-
2,350
2,299
-
11,095
14,040
-
8,766
10,000
-
1,311
7,226
-
500
(2,148)
-
39,574
43,476
-
-
1,205
-
-
260
-
-
547
-
7,000
-
7,000
4,138
-
3,332
3,955
-
4,941
125,732
125,992
15,273
125,732
125,992
15,273		 2020
£
49,087
2,299
14,040
10,000
7,226
(2,148)
43,476
1,205
260
547
7,000
3,332
4,941
141,265
141,265

Governance costs includes payments to the auditors of £7,080 (2020- £7,080) for audit fees.

9 Trustees

No trustee received any remuneration for their duties as a trustee or for any other services provided to the CIO other than:

Mrs Hannah Baptist is employed as Head of Administration & Logistics. During the year ending 31st August 2021 she received salary payments and pension contributions totalling £13,419 (2020 – £19,915). Mrs Baptist’s husband, Daniel Baptist, is also employed as Lead Pastor. During the year ending 31st August 2021 he received salary payments and pension contributions totalling £42,522 (2020 – £37,713).

Mrs Pauline Trathen-Harris is employed as Finance Manager/Administrator and during the year ending 31 August 2021 received salary payments and pension contributions totalling £14,867 (2020 - £21,983).

Mr Mark Berry is employed as Head of Administration & Logistics. During the year ending 31 August 2021 he received salary payments and pension contributions totalling £18,019.

Mr Nathan Down’s wife, Natalie Down, is employed as Pastoral and Communications Administrator. During the year ending 31 August 2021 she received salary payments and pension contributions totalling £23,591. No trustee received any expenses.

20

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

10 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
15 17
Employment costs 2021 2020
£ £
Wages and salaries 209,124 215,093
Social security costs 11,498 11,144
Other pension costs 5,855 6,352
226,477 232,589

Key Management Personnel

The trustees consider three members of staff to be key management personnel. The total employment benefits of key management personnel were £92,379 (2020: £98,473).

There were no employees whose annual remuneration was more than £60,000.

21

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

11 Tangible fixed assets

Freehold land
and buildings
£
Cost
At 1 September 2020
3,140,307
Additions
47,896
Disposals
-
At 31 August 2021
3,188,203
Depreciation and impairment
At 1 September 2020
143,244
Depreciation charged in the year
31,267
Eliminated in respect of disposals
-
At 31 August 2021
174,511
Carrying amount
At 31 August 2021
3,013,692
At 31 August 2020
2,997,063		 Building
fixtures
£
222,133
7,706
-
229,839
156,312
12,377
-
168,689
61,150
65,821		 Music
equipment
Fixtures and
fittings
£
£
70,361
60,310
-
-
-
(743)
70,361
59,567
65,331
57,617
2,073
1,349
-
(743)
67,404
58,223
2,957
1,344
5,030
2,693		 Computers
£
26,251
5,916
-
32,167
26,251
1,972
-
28,223
3,944
-		 Total
£
3,519,362
61,518
(743)
3,580,137
448,755
49,038
(743)
497,050
3,083,087
3,070,607

22

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

12
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
13
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year		 2021
£
28,245
24,723
2,962
55,930
2021
£
555,943
76,048
479,895		 2020
£
5,328
34,113
14,608
54,049
2020
£
624,442
68,503
555,939

The terms of repayment for both the mortgage and loan are monthly instalments starting one month from the date the funds were borrowed, and the mortgage and bank loan are secured on the land and buildings at Unit 1, Charlwoods Road, East Grinstead (see note 5). Interest is payable at the Bank of England base rate plus 1.75%.

14 Creditors: amounts falling due within one year

Notes
Bank loans
13
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
15
Creditors: amounts falling due after more than one year
Notes
Bank loans
13		 2021
£
76,048
15,656
7,582
4,000
13,621
116,907
2021
£
479,895		 2020
£
68,503
22,781
5,013
4,000
9,448
109,745
2020
£
555,939

23

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 September
2019
£
Building
2,200,976
Changing Places
36,165
Jubilee Fund
11,831
Coronavirus JRS
-
Other
-
Berlin
175
2,249,147		 Movement in funds
Incoming
resources
Resources
expended
£
£
2,000
(29,388)
-
(4,176)
-
-
19,039
(19,039)
8,100
(4,449)
90
(265)
29,229
(57,317)		 Transfers
Balance at
1 September
2020
£
£
47,675
2,221,263
-
31,989
-
11,831
-
-
-
3,651
-
-
47,675
2,268,734		 Movement in funds
Incoming
resources
Resources
expended
£
£
13,500
(42,362)
-
(4,176)
-
-
15,114
(15,114)
1,979
(1,271)
-
-
30,593
(62,923)		 Transfers
Balance at
31 August 2021
£
£
68,499
2,260,900
-
27,813
-
11,831
-
-
(1,500)
2,859
-
-
66,999
2,303,403		 Transfers
Balance at
31 August 2021
£
£
68,499
2,260,900
-
27,813
-
11,831
-
-
(1,500)
2,859
-
-
66,999
2,303,403
2,303,403

The Building Fund relates to monies donated specifically to support the purchase or improvement of the Jubilee Community Centre (restricted) or raised through rental or lease of the centre to third party hirers (unrestricted). Capital improvements and mortgage repayments are charged to the restricted fund. The unrestricted designated fund is used for running costs and related staff costs as well as mortgage repayments. During the year MSDC awarded two grants valued at £14,834. The amount of £13,500 was to be spent on ensuring the centre was Covid-19 compliant (e.g., hand sanitiser stations, automatic doors, signage etc) with the remainder to be spent on maintenance.

The Jubilee Fund relates to a specific group of 3rd Party charities that we support on a regular basis. Transfers into this fund are made from the general fund or given specifically by members (in which case the funds are restricted).

The Changing Places Fund - The Changing Places Consortium launched its campaign in 2006 on behalf of the over 1/4 of a million people who cannot use standard accessible toilets. This includes people with profound and multiple learning disabilities, motor neurone disease, multiple sclerosis, cerebral palsy, as well as older people. Jubilee Community Church (East Grinstead) started a campaign to raise grants and donations to provide a Changing Places Toilet within its facilities. This new facility was opened in October 2017.

24

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

17 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 September
2019
£
Building
314,004
Jubilee Fund
1,250
315,254		 Movement in funds
Incoming
resources
Resources
expended
£
£
122,428
(109,585)
-
-
122,428
(109,585)		 Transfers
Balance at
1 September
2020
£
£
(47,675)
279,172
-
1,250
(47,675)
280,422		 Movement in funds
Incoming
resources
Resources
expended
£
£
135,838
(84,830)
-
-
135,838
(84,830)		 Transfers
Balance at
31 August 2021
£
£
(68,499)
261,681
-
1,250
(68,499)
262,931		 Transfers
Balance at
31 August 2021
£
£
(68,499)
261,681
-
1,250
(68,499)
262,931
262,931

The purposes of the fund balances are explained within the movement on restricted funds note.

18 Analysis of net assets between funds

Unrestricted
funds
Designated
funds
Restricted
funds
2021
2021
2021
£
£
£
Fund balances at 31 August 2021 are represented by:
Tangible assets
8,245
237,719
2,837,123
Current assets/(liabilities)
314,149
-
(53,825)
Long term liabilities
(25,212)
25,212
(479,895)
297,182
262,931
2,303,403		 Total
Unrestricted
funds
Designated
funds
2021
2020
2020
£
£
£
3,083,087
198,040
-
260,324
16,048
280,422
(479,895)
-
-
2,863,516
214,088
280,422		 Restricted
funds
2020
£
2,872,567
(47,894)
(555,939)
2,268,734		 Total
2020
£
3,070,607
248,576
(555,939)
2,763,244

25

JUBILEE COMMUNITY CHURCH (EG) CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

19 Events after the reporting date

Since the year end the Charity has set up a community interest company (CIC). 70% of the share capital in this CIC is owned by the Charity. The purpose of the CIC is to run a café for the East Grinstead Community. The Charity will be supporting the CIC in terms of set up and running costs until the café has established itself.

20 Related party transactions

There were no disclosable related party transactions during the year (2020 - none).

21 Cash generated from operations
Cash generated from operations 2021 2020
£ £
Surplus for the year 100,272 111,659
Adjustments for:
Depreciation and impairment of tangible fixed assets 49,038 45,477
Movements in working capital:
(Increase)/decrease in debtors (1,881) 42,536
(Decrease) in creditors (383) (20,912)
Cash generated from operations 147,046 178,760
Analysis of changes in net (debt)/funds
At 1 September Cash flows At 31 August 2021
2020
£ £ £
Cash at bank and in hand 304,272 17,029 321,301
Loans falling due within one year (68,503) (7,545) (76,048)
Loans falling due after more than one year (555,939) 76,044 (479,895)
(320,170) 85,528 (234,642)

22 Analysis of changes in net (debt)/funds

23 Covid-19

At the reporting date COVID-19 caused widespread lockdown measures to be imposed in the UK and worldwide. It is not currently possible to estimate the impact this will have on the future financial results of the charity. The trustees have assessed the impact of COVID-19 on the results reported for the financial year ended 31 August 2021 and consider that all COVID-19 related costs and effects have been reflected in the accounts.

26