OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-08-31-accounts

8696063

Grace Church Brockley (A company limited by guarantee)

Report and Financial Statements For the year ending 31 August 2021

Charity number 1154174 Company number 8696063

Grace Church Brockley (A company limited by guarantee)

Financial Statements for the period ending 31 August 2021

Contents Page
Report of the Directors 3
Report of the Independent Examiner 7
Statement of Financial Activities 8
Balance Sheet 9
Notes forming part of the Financial Statements 10

Page 1

Grace Church Brockley

Reference and administrative information

Charity name: Grace Church Brockley
Charity registration number: 1154174
Company registration number: 8696063
Registered Office 63 Mayow Road
Forest Hill
London
SE23 2XH

Directors of the Company and Trustees for the purpose of Charity Law

Mr S Abrams Elder & Chair
Mr R Honeysett Elder
Mr R Srinivasan Elder
Mr K Sarpong Treasurer

In addition to the above, all of whom were members of the Church Council, the following were members of the Church Council but not Directors or Trustees:

Mr R Brown (Senior Minister) Elder
Mrs M Lee Deacon
Mr K Sarpong Deacon
Mr A Tidball Deacon
Mr A Widgery Deacon

Independent Examiner

Ajay Rajani FCIE, Stewardship, 1 Lamb’s passage, London EC1Y 8AB

Bankers

CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent. ME19 4JQ

Page 2

Grace Church Brockley

Report of the Directors for the year ended 31 August 2021

An introduction to Grace Church Brockley

Grace Church Brockley is an independent evangelical church which meets in different locations around the Brockley area of South London. The members of the church include people of all ages, races and backgrounds. What unites us is a commitment to know Jesus and to make Him known to others. Visitors are always welcome, particularly those investigating the claims of Jesus, or looking for a church family to make their own.

What sort of church are we?

We are Christian – that is we follow the Lord Jesus Christ. We believe that although in the past God has spoken through the Old Testament prophets and writers, the supreme revelation of God is through His son Jesus (Hebrews 1 v2). Jesus alone provides salvation from the guilt, penalty, power and presence of sin though His perfect life and His death on the cross, where He took the punishment that we deserve. We believe that there is no other way to escape God’s judgement on human sin than to trust in Jesus.

We are evangelical – that is we believe that the Bible is breathed out by God, and is true, infallible and trustworthy. The Bible is a plain book with a straightforward message of salvation through Jesus Christ, and we believe that Christians must submit to its supreme authority.

These are mainstream orthodox Christian doctrines, which the vast majority of Christians throughout the world have believed for centuries.

Our mission statement

Our mission statement is “Partnering together to know Jesus and to make Him known”.

To advance our mission statement we seek to build up the members of the church in their Christian faith, and to reach out to others in the community and elsewhere with the truths about Jesus.

To build up the members of the church, we encourage church members to meet together regularly, for mutual encouragement and teaching and also for accountability, so that we can encourage each other to lead lives which are holy and pleasing to God. To reach out to the community we run community outreach projects, so that we can serve and get to know others in the community. We also run a number of guest events. A few times a year we also make home visits around Brockley, to invite people to the church meetings.

Our Core Activities

The principal activities of Grace Church Brockley are:

Page 3

Grace Church Brockley

and also prays together. The Fellowship Groups are important for practicing mutual accountability and offering pastoral support to those within the church. The relatively small size of the groups means that it is possible for group members to get to know each other well, and support each other in their Christian faith and with their lives generally. There is a specific Fellowship Group for local students who also enjoy a meal together.

In planning all of these activities, the Directors have had regard to the guidance on public benefit issued by the Charity Commission.

Mission Partnerships

The company continued in gospel partnership with the following main mission partners throughout the year:

Page 4

Grace Church Brockley

Structure, governance and management

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 18 September 2013 and registered as a charity as from 11 October 2013. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, the members are required to contribute an amount not exceeding £1 each.

The charity’s objects, as stated in the governing document, are: for the public benefit, to advance the Christian faith in accordance with the Statement of Faith in South East London and in such other parts of the United Kingdom and the world as the Trustees may from time to time think fit.

Recruitment and appointment of the Church Council, Directors of the company and Trustees for the purposes of charity law

Under the company’s Memorandum and Articles of Association, appointments of new members of the Church Council or re-appointments of existing members of the Church Council shall be by election at the Annual General Meeting, with the approval of the Church Council and for a fixed period of three years.

The Directors of the company are also trustees for the purposes of charity law. . The appointment or re-appointment of any Director shall be by the Church Council.

Financial review

The company is dependent for funding on donations solely from members of the company and other individual donors. In the year to 31 August 2021, the company recorded an unrestricted fund surplus of £18,574 (2020: £11,535 Deficit) and a restricted fund surplus of £11,764 (2020: £nil). At the year-end the company’s net assets amounted to £68,060. This included cash of £68,153, of which £56,149 was unrestricted.

Reserves

The company does not currently own any building or other significant fixed assets nor is it contemplating any longer term financial projects that would require the establishment of substantial reserves. Consequently, the Directors consider that whilst this remains the case a prudent reserve of around 3-6 months of annual expenditure should be maintained; which equates to around £30,000-£60,000. At the end of the period, the unrestricted reserves of the company stood at £56,296 (2020: £37,727). There is no expectation that in the longer term the reserves of the company should increase significantly beyond the current levels.

Responsibilities of Directors

Company law requires the Directors to prepare financial statements for the financial period which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial period. In preparing those financial statements, the Directors should follow best practice and:

Page 5

Grace Church Brockley

The Directors are responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Directors 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.

Stewardship Services were re-appointed as accountants to the company and an employee nominated by Stewardship acts as the company’s Independent Examiner.

This report, which has been prepared in accordance with the provisions of the Companies Act 2006 relating to small companies, was approved by the directors on 1[st] April 2022 and signed on their behalf by:

K Sarpong

Mr K Sarpong (Director) Company Number: 8696063, Charity Number: 1154174

Page 6

Grace Church Brockley

Independent Examiner’s Report to the Trustees of Grace Church Brockley (“the Company”)

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2021 on pages 8 to 14 following, which have been prepared on the basis of the accounting policies set out on pages 10 and 11.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the 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 your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

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:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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.

Ajay Rajani FCIE

7 April 2022

Stewardship 1 Lamb's Passage London, EC1Y 8AB

Page 7

Grace Church Brockley

GRACE CHURCH B ROCKLEY

FOR THE YEAR ENDED 31 AUGUST 2021

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

Note
INCOME FROM
Donations and legacies
2
Charitable activities
Total income and endowments
EXPENDITURE ON
Charitable activities
3
Total expenditure
Net income/(expenditure)
Transfers between funds
Net mov ement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Total
Total
Funds
Funds
Funds
Funds
2021
2021
2021
2020
£
£
£
£
122,933
32,485
155,418
117,335
194
-
194
2,328
123,127
32,485
155,612
119,663
104,553
20,721
125,274
131,198
104,553
20,721
125,274
131,198
18,574
11,764
30,338
(11,535)
-
-
-
-
18,574
11,764
30,338
(11,535)
37,724
-
37,724
49,259
56,297
11,764
68,061
37,724

Movements on reserves and all recognised gains and losses are shown above.

The notes on page 10-14 form part of these accounts.

Page 8

Grace Church Brockley

GRACE CHURCH B ROCKLEY

B ALANCE SHEET

FOR THE YEAR ENDED 31 AUGUST 2021

Note
FIXED ASSETS
Tangible assets
5
CURRENT ASSETS
Debtors
6
Cash at bank
7
CURRENT LIABILITIES
Liabilities falling due within one year
8
Net Current Assets
NET ASSETS
FUND BALANCES
Unrestricted funds
General Funds
9
Restricted Funds		 Unrestricted
Restricted Total funds
Total funds
Funds
Funds
2021
2020
£
£
£
£
582
-
582
1,236
582
-
582
1,236
8,620
-
8,620
3,029
56,149
12,004
68,153
38,087
64,769
12,004
76,773
41,116
9,054
240
9,294
4,628
55,715
11,764
67,479
36,488
56,297
11,764
68,061
37,724
56,297
-
56,297
37,724
-
11,764
11,764
-
56,297
11,764
68,061
37,724

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2021 in accordance with Section 476 of the Companies Act 2006 however, in accordance with Section 145 of the Charities Act 2011, the accounts have been examined by an independent examiner and their report has been included in these financial statements.

The directors (who are the charitable company's trustees for the purposes of charity law) acknowledge their responsibilities for:

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 01 April 2022 and were signed on its behalf by:

--------------------------------------Kobby Sarpong Company number: 8696063 Charity number: 1154174

The notes on page 10-14 form part of these accounts.

Page 9

Grace Church Brockley

GRACE CHURCH B ROCKLEY

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting Policies

The charity is a charitable company limited by guarantee and is incorporated in the United Kingdom. The company's registered number and registered office address can be found on the Company Information page. 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"), with the Companies Act 2006 and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.

The principles adopted in the preparation of the financial statements are set out below.

b) Income

Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from donations and legacies includes:

Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from conferences, retreats and other events and courses.

The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.

c) Expenditure

Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.

The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.

Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.

d) 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. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.

e) Tangible fixed assets

Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £1,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:

Computer software & hardware Over 2 years Fixtures and fittings Over 5 years

The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.

Page 10

Grace Church Brockley

f) 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.

i) Exemption from preparing a cashflow statement

The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.

The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.

2
Donations and legacies
General donations
Donated accommodation for use by Senior Minister
CAP
Acts 435
Tax recoverable
3
Expenditure on charitable activ ities
a
Direct Charitable Costs
Staff salary and directly related costs
Staff accommodation costs
Venue related costs
CAP
Acts 435
Other ministry costs
Depreciation
Grants payable
Note 3c
b
Support & Administration
Governance costs - independent examiner’s fee
Insurance
Combined charitable activ ity cost
c
Grants
Missionary support in Brazil
Missionary support in Czech Republic
Missionary support in Middle East
Missionary support in Serbia
Missionary support in South Africa
UK based individuals
FIEC
TNT Ministries		 Unrestricted
Restricted
Total
Total
Funds
Funds
2021
2020
£
£
£
£
100,525
-
100,525
92,964
-
3,910
3,910
3,872
-
22,487
22,487
-
-
480
480
-
22,408
5,609
28,017
20,499
122,933
32,485
155,418
117,335
Unrestricted
Restricted
Total
Total
Funds
Funds
2021
2020
£
£
£
£
53,235
-
53,235
68,352
23,931
3,910
27,840
27,282
10,689
-
10,689
12,643
0
16,332
16,332
-
0
480
480
-
6,418
-
6,418
6,934
654
-
654
312
8,467
-
8,467
13,847
103,393
20,721
124,114
129,370
828
-
828
1,144
333
-
333
685
1,161
-
1,161
1,828
104,553
20,721
125,274
131,198
Institutions
Individuals
2021
2020
£
£
£
£
-
1,500
1,500
1,500
-
1,500
1,500
1,500
-
1,500
1,500
1,500
-
1,500
1,500
1,500
-
1,500
1,500
1,500
-
-
-
5,000
967
-
967
1,258
-
-
-
89
967
7,500
8,467
13,847

The grants were predominantly in relation to supporting individuals in training for full-time ministry or individuals working in Christian ministry in the UK and overseas.

Page 11

Grace Church Brockley

4 Staff & Trustees

f & Trustees
Gross wages, salaries & benefits in kind
Employer's National Insurance costs
Pension costs
Total staff costs		 2021
2020
£
£
84,371
85,459
638
2,536
6,304
7,639
91,313
95,634

The average monthly number of employees during the year was 3 (2020: 2). Most of the charity's activities are carried out by volunteers.

The charity's key management comprise the trustees and the Senior Minister. During the year key management received employment benefits totalling £33,537 (2020: £32,951).

In addition the charity incurred expenditure totalling £27,840 (2020: £27,282) in respect of the customary provision of accommodation to the Senior Minister to that they could better perform their duties.

No trustees received employment benefits in either the current or preceding year. No staff received salaries at a rate of more than £60,000 per annum.

5 Tangible Fixed Assets

5
Tangible Fixed Assets
Cost
At 1 September 2020
Additions
At 31 August 2021
Accumulated Depreciation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 1 September 2020
6
Debtors and Prepayments
Tax recoverable
Other Debtors
Prepayments
7
Cash at Bank and in Hand
Bank operating accounts
Other cash amounts
8
Creditors: liabilities falling due within one year
Accruals
Deferred income		 Computer
Fixtures
software
& Fittings
& hardware
Total
£
£
£
1,893
3,123
5,016
-
-
-
1,893
3,123
5,016
1,893
1,887
3,780
-
654
654
1,893
2,541
4,434
-
582
582
(0)
1,236
1,236
2021
2020
£
£
3,200
2,911
-
-
5,419
118
8,620
3,029
2021
2020
£
£
67,970
37,739
184
348
68,153
38,087
2021
2020
£
£
2,727
4,628
6,567
-
9,294
4,628

Deferred income represents income from advance ticket sales for a church retreat that took place after the year end. Prepayments included prepaid venue hire for this event.

9 Restricted funds

During the year the movements in the charity's funds were as follows:

CAP Debt Management
ACTS 435
Senior Minister Accommodation
Total		 Opening
Incoming
Outgoing
Transfers
Closing
balance
resources
resources
in the year
balance
2021
2021
2021
2021
2021
£
£
£
£
£
-
28,096
16,332
-
11,764
-
480
480
-
-
-
3,910
3,910
-
-
-
32,485
20,721
-
11,764

Page 12

Grace Church Brockley

9 Restricted funds continued

----- Start of picture text -----
In the previous year the movements in the charity's funds were as follows:
Opening Incoming Outgoing Transfers Closing
balance resources resources in the year balance
2020 2020 2020 2020 2020
£ £ £ £ £
Senior Minister Accommodation - 3,872 3,872 - -
Total - 3,872 3,872 - -
----- End of picture text -----

The CAP Debt Management fund was created from donations received to run money management courses for those who are finding it difficult to manage their finances

The Acts 435 fund was created from donations received to help provide assistance to those in need.

The Senior Minister Accommodation fund represents the rent waived by another Christian charity (see note 11 ‘Related Party Transactions’) for accommodation used by the Senior Minister.

10 Lease Commitments

During the year the charity paid £21,785 (2020: £21,302) to lease a property occupied by the Senior Minister and his family. The lease is a rolling one month lease; at the balance sheet date, there was no obligation for future lease payments.

Except as disclosed in note 4 'Staff costs', there have been no other transactions with related parties during the year.

12 Members

Each member of the company commits to contribute if the charity is wound up an amount of £1.

Page 13

Grace Church Brockley

GRACE CHURCH B ROCKLEY

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE YEAR ENDED 31 AUGUST 2021

Note
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
Total income and endowments
EXPENDITURE ON
Charitable activities
3		 Total
Total
Funds
Funds
2021
2020
2021
2020
2021
2020
£
£
£
£
£
£
122,933
113,463
32,485
3,872
155,418
117,335
194
2,328
-
-

194
2,328
123,127
115,790
32,485
3,872
155,612
119,663
104,553
127,326
20,721
3,872
125,274
131,198
Unrestricted Funds - General
Restricted Funds
Total expenditure 104,553
127,326
20,721
3,872
125,274
131,198
Net income/(expenditure)
Transfers between funds
Net mov ement in funds
Reconciliation of funds:
Total funds brought forward		 18,574
(11,535)
11,764
-
30,338
(11,535)
-
-
-
-
-

-
18,574
(11,535)
11,764
-
30,338
(11,535)
37,724
49,259
-
-
37,724
49,259
Total funds carried forward 56,297
37,724
11,764
-
68,061
37,724

Movements on reserves and all recognised gains and losses are shown above.

Page 14