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2023-03-31-accounts

Charity registration number 1154126

Company registration number 08515898 (England and Wales)

CORNERSTONE MINISTRIES

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

CORNERSTONE MINISTRIES

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees MrT Inglis Mr R T Andrews Mr J A Measures Secretary Mrs L Demetriou Pastor Rev C Demetriou Charity number 1154126 Company number 08515898 Principal address 38 Station Avenue Walton-on-Thames KT12 1NU Independent examiner Beavis Morgan LLP Accountants, Business and Tax Advisers 82 St John Street London EC1M 4JN Bankers Barclays Bank PLC 8/12 Church Street Walton on Thames Surrey KT12 2QX Reliance Bank Limited Faith House 23-24 Lovat Lane London EC3R 8EB

CORNERSTONE MINISTRIES

CONTENTS

Page
Trustees report 1-3
Statement of Trustees responsibilities 4
Independent examiner's report 5-6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 - 15

CORNERSTONE MINISTRIES

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their report and the financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies on page 7 and 8 and comply with the charity's trust deed and applicable law.

Organisational structure

The charity is run by the trustees and senior pastor who meet regularly throughout the year. Trustees are appointed for an unspecified period, any vacancies being filled by the selection and appointment of suitable persons by the trustees.

The church leadership constitution is both functional and spiritual: Senior Pastors; Pastors; Elders; Deacons and Stewards. Supporting this structure are department heads and groups of helpers which include; worship team, youth, TV and AV, design, hospitality, overseers, greeters, parking attendants, etc. Everyone is fully committed to making each service run smoothly.

Affiliation

The charity is not affiliated to any other charity.

Developments, activities and achievements during the year

Cornerstone Ministries continues to advance the Christian religion in Elmbridge, Surrey in accordance with our Trust deed. The work of the ministry has been effective in the local area throughout the year and has shown positive and encouraging progress. Many new families are attending the Sunday services and those in need are being helped both spiritually and practically. There has been a visible and sustained growth with the regular attendance of adults, youth and young children.

Cornerstone has attracted people from up to forty different nations; ranging from the very young to the elderly. It has a physical congregation, who attend regularly, and a virtual congregation, who engage over our YouTube channel. The average weekly attendance across both these gatherings is approximately 450 adults, up to 25 children between the ages of 5 and 15 attending Kidzone, and in addition to this, a creche that caters for 15 babies during a service. There is also a large and enthusiastic group of young adults and teenagers in the church who get together outside of the Sunday services for social events. The Food Storehouse has supplied meals to hundreds of families over the year. All the above are made easily accessible to the community at large.

Meetings and special events were being held throughout the year - both at weekends and during the week. Many have been covered by the local press and reviewed very favourably. In accordance with the objectives of the charity, such meetings are always open to the public and have included preaching, testimony, songs of praise, and music items.

Other activities running during each week, include: evening - Prayer Group; Tuesday evening - Bible College; Wednesday evening - Worship Team rehearsal - Media Department Training Sessions; Friday evening - Youth fellowship; Saturday morning - Men's Breakfast.

" Cornerstone seeks to be an asset to the local community, particularly in support of the family unit" through practical teaching and training. The church focuses on each family's needs, but at the same time, reaches out to people in impossible situations - drawing them into a loving and friendly circle of hope, where answers are found and acceptance is given. The vision is to impact on modern society by strengthening the family and equipping people to positively affect the community.

CORNERSTONE MINISTRIES

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Future developments and Vision

The church is truly integrated, and it is therefore, working and partnering with other charities and local organisations in order to reach out and meet the needs of the local community. These include; Compassion, Metro World Child, Elmbridge Borough Council, Princess Alice Hospice, Manor Mead school board of Trustees, Brooklands College, Barnados, Grace Dear Charity, Oasis Child Care, FareShare, Elmbridge Citizens Advice, The Brain Tumour Charity, and Rent Start.

We are building the church of tomorrow today! Therefore, Cornerstone has future generations in mind when planning long term. It has a modern cutting edge approach to everything it does, and this is achieved by using the best technology currently available. The church believes that the gospel message never changes, however, the method of delivery does! With the church being positioned right in the middle of the community tt has tremendous potential to reach out and seize opportunities to touch those in the immediate vicinity - which makes this its vision very practical in its outworking! The Senior Pastor states:

Due regard and guidelines

The Trustees have had due regard to the Charity Commission's guidance on public benefit and all correct procedures have been implemented.

The Trustees met six times during this accounting period and exercised due regard to the Charity Commission 's guidance on public benefit and all correct procedures have been implemented. Minutes of meetings were submitted.

Financial review

The results for the year are shown in the financial statements.

It is the policy of the charitable company that free unrestricted funds which have not been designated for a ' specific use should be maintained at a level equivalent to between three and six month s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Risk management

The trustees confirm that they have given consideration to the major risks to which the charity was exposed post pandemic and that systems have been designed and established to mitigate those risks.

Reserves and assets

Other than cash in the Bank, the charity has no reserves that are not invested in fixed and current assets. The trustees regularly review the current level of reserves held by the charity and are satisfied that they are appropriate to its current circumstances.

Governance and management

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr T Inglis Mr R T Andrews Mr J A Measures

-2-

CORNERSTONE MINISTRIES

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The Trustees report was approved by the Board of Trustees.

-- i Af Mr J A Measures Trustee / / Dated:...Z.l...9} ...

CORNERSTONE MINISTRIES

CORNERSTONE MINISTRIES

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also the directors of Cornerstone Ministries for the purpose of company law, 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).

Company Law 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 charitable company and of the incoming resources and application of resources , including the income and expenditure, of the charitable company for that year.

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CORNERSTONE MINISTRIES

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF CORNERSTONE MINISTRIES

I report to the trustees (who are also Directors for the purpose of company law) on my examination of the financial statements of Cornerstone Ministries (the charitable company) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet and related notes.

This report is made solely to the charity's trustees, as a body, in accordance with section 145 of the Charities ' Act 2011. My work has been undertaken so that I might state to the charity s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the trustees of the charitable company you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company's financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the financial statements present a 'true and fair' view and my report is limited to those specific matters set out in the independent examiner's statement.

Independent examiner's statement

Since the charitable company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the charitable company as required by section 386 of the 2006Act; or

-6-

CORNERSTONE MINISTRIES

INDEPENDENT EXAMINER'S REPORT (CONTINUED)

TO THE TRUSTEES OF CORNERSTONE MINISTRIES

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 financial statements to be reached.

Paul Ashton FCA Beavis Morgan LLP

Accountants, Business and Tax Advisers 82 St John Street London EC1M 4JN

Dated: ....................... .

CORNERSTONE MINISTRIES

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Notes
las.2m fc2m·
Donations and
legacies
3
l;x12
aditu
2a·
Charitable activities
4
Other expenditure
8
Total resources expended
Net outgoing resources
before transfers
Gross transfers
between funds
Net expenditure for the
year/
Net movement in funds
Fund balances at1April
2022
Fund balances at 31
March 2023		 Unrestricted
Restricted
funds
funds
2023
2023
£
£
271,786		 Unrestricted
Restricted
funds
funds
2023
2023
£
£
271,786		 Unrestricted
Restricted
funds
funds
2023
2023
£
£
271,786		 Total
Unrestricted
funds
2023
2022
£
£
271,786
250,791		 Total
Unrestricted
funds
2023
2022
£
£
271,786
250,791		 Restricted
funds
2022
£
50		 Restricted
funds
2022
£
50		 Total
2022
£
250,841
332,534 332,534 335,518 335,518
62,624 62,624
395,158
(123,372)
(123,372)
456,171
332,799		 335,518
(84,727)
(51,243)		 51,293 51,293
332,534
(60,748)
(62,624)
(123,372)
456,171
332,799		 62,624
(62,624)
62,624
 51,293
(51,243)
51,243		 386,811
(135,970)
(135,970)
592,141		 (135,970)
592,141
456,171 456,171

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

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

-8-

CORNERSTONE MINISTRIES

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank andinhand
Creditors: amounts falling due within
one year
12
Net current liabilities
Total assets less current liabilities
Income funds
Unrestricted funds		 2023
£
£
2,031,940
3,830
29,499
33,329
(1,732,470)
(1,699,141)
332,799
332,799
332,799		 2023
£
£
2,031,940
3,830
29,499
33,329
(1,732,470)
(1,699,141)
332,799
332,799
332,799		 2022
£
£
2,151,689
3,557
68,457
72,014
(1,767,532)
(1,695,518)
456,171
456,171
456,171		 2022
£
£
2,151,689
3,557
68,457
72,014
(1,767,532)
(1,695,518)
456,171
456,171
456,171
33,329
(1,732,470)		 72,014
(1,767,532)
332,799
332,799
332,799		 456,171
456,171
456,171

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The Trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on ..3.. /93/:?4--

-- Mr RT Andrews Trustee

Mr J A Measures Trustee

Company Registration No. 08515898

CORNERSTONE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Cornerstone Ministries is a private company limited by guarantee incorporated in England and Wales. The registered office is 38 Station Avenue, Walton on Thames, Surrey, KT12 1NU.

1.1 Accounting convention

The accounts have been prepared in accordance with the Companies Act 2006 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). The charity is a Public Benefit Entity as defined by FRS 102.

The company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Gifts in kind

The church received the benefit of work carried out by volunteers without charge. No value is placed on this voluntary labour.

10

CORNERSTONE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

(Continued)

1.5 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold land and building 20 years straight line basis Plant and machinery 25% reducing balance Fixtures, fittings & equipment 25% reducing balance Computer equipment 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the trustees review 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 and deposits held at call with banks.

1.9 Financial instruments

The has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the balance sheet when the becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

CORNERSTONE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.10 Employee benefits

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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Taxation

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

2 Critical accounting estimates and judgements

In the application of the charitable company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. These would be in respect of asset lives and depreciation and the recoverability of debtors.

3 Donations and legacies

Unrestricted
funds
Designated
funds
£
£
Donations and gifts
271,786
For the year ended 31 March 2022
250,791
50		 Total
2023
Total
2022
£
£
271,786
250,841
250,841

-11-

CORNERSTONE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

4 Expenditure on charitable activities

Advancing
Christianity
Advancing
Christianity
2023
2022
£
£
Direct costs
Staff costs
101,247
98,317
Depreciation andimpairment
121,603
121,499
Advancing Christianity
95,589
103,583
318,439
323,399
Share of support and governance costs (see note 5)
Support
14,095
12,119
332,534
335,518
Analysis by fund
Unrestricted funds
332,534
335,518
5
Support costs
Support Governance
2023
Support costs
Governance
2022
costs
costs
costs
£
£
£
£
£
£
Accountancy costs
10,574
10,574
9,560
9,560
Legaland professional
fees
3,521
3,521
2,559
2,559
14,095
14,095
12,119
12,119
Analysed between
Charitable activities
14,095
14,095
12,119
12,119		 Advancing
Christianity
Advancing
Christianity
2023
2022
£
£
101,247
98,317
121,603
121,499
95,589
103,583		 Advancing
Christianity
Advancing
Christianity
2023
2022
£
£
101,247
98,317
121,603
121,499
95,589
103,583		 Advancing
Christianity
Advancing
Christianity
2023
2022
£
£
101,247
98,317
121,603
121,499
95,589
103,583		 Advancing
Christianity
Advancing
Christianity
2023
2022
£
£
101,247
98,317
121,603
121,499
95,589
103,583
318,439
14,095		 323,399
12,119
332,534 335,518
335,518
2022
£
9,560
2,559
12,119
12,119

Support costs are apportioned based on the charity's time spent furthering each charitable activity.

6 Trustees

None of the trustees received any remuneration or benefits from the charitable company during the year.

CORNERSTONE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

7 Employees

Number of employees

The average monthly number of employees during the year was:

Number of employees
The average monthly number of employees during the year was:
2023
Number
5
Employment costs
2023
£
Wages and salaries
101,247		 2022
Number
4
2022
£
98,317

During the two years ended 31 March 2023 no employees received a total employment benefit of more than £60,000.

8 Other expenditure

Restricted
funds
£
2023
Financing costs
62,624
62,624		 Total
Restricted
funds
£
2023
£
2022
62,624
51,293
62,624
51,293

9 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

-13-

CORNERSTONE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

10Tangible fixed assets
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation and impairment
At1 April 2022
Depreciation chargedin the year
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022
11Debtors
Amounts falling due within one year:
Prepayments and accrued income
12
Creditors: amounts falling due within o
Bank loan
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferredincome		 Freeholdland
and building
Plant and
machinery
Fixtures,
fittings&
equipment
£
£
£
3,106,288
8,834
5,045
605
1,249		 Computer
equipment
Total
£
£
3,222
3,123,389
1,854
3,106,288
9,439
6,294		 3,222
3,125,243
960,000
6,164
2,887
120,000
687
773		 2,649
971,700
143
121,603
1,080,000
6,851
3,660		 2,792
1,093,303
2,026,288
2,588
2,634		 430
2,031,940
2,146,288
2,670
2,158		 573
2,151,689
ne year
Notes
13		 2023
2022
£
£
3,830
3,557
2023
2022
£
£
1,675,283
1,707,200
7,731
14,519
10,302
19,084
2,377
2,379
36,777
24,350
1,732,470
1,767,532

CORNERSTONE MINISTRIES

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

13
Loans and overdrafts
2023
£
Bankloan
1,675,283
Payable within one year
1,675,283		 2022
£
1,707,200
1,707,200

The bank loan is secured by fixed charges over the freehold property at 38 Station Avenue, Walton on Thames, Surrey, KT12 1NU. The loan is interest only with the principal balance repayable in full within one year.

14 Related party transactions

Rev C Demetriou is the senior Pastor and founder of Cornerstone Ministries. He is married to Mrs L Demetriou who is also a founder and a secretary of the charity and are considered key management personnel.

During the year Mrs L Demetriou was paid £18,000 (2022: £18,000) under a contract of employment for her services.

Under the contract of employment Rev C Demetriou was remunerated a gross amount of £40,728 (2022: £40,728) for his services.

During the year Ms X Demetriou, daughter of Rev C Demetriou received £Nil (2022: £6,300) for consultancy work.