2021-03-31-accounts - Barnet Churches Action

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BARNET CHURCHES ACTION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS

FOR THE YEAR ENDED 31 MARCH 2021

Trustees Mr Julian Desborough Mr Roger Seaton Mrs Mary Boland Mrs Margaret Dixon Mr Simon Shoreman (appointed 31 July 2020) Patron Mr Martin Russell - Deputy Lieutenant of the Borough of Barnet Company registration number 8625115 Charity registration number 1154935 Registered Office 117 Fitzjohn Avenue, Barnet, Herts EN5 2HR Community Centre address Hope Corner Community Centre, 185 Mays Lane Barnet, Herts EN5 2DY Community Centre manager Mrs. Susan Day Independent examiners Griffin Stone Moscrop & Co, Chartered Accountants 21-27 Lamb’s Conduit Street, London WC1N 3GS Bankers CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill West Malling, Kent ME19 4JQ

BARNET CHURCHES ACTION

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their annual report together with the accounts of the charity for the year ended 31 March 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The accounts comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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 2015).

Objectives and activities

The main object of the charity was: ‘To advance the Christian religion primarily but not exclusively in Chipping Barnet through promoting pastoral work for the benefit of the public and to enlighten others about the Christian religion’.

The main goal of the charity has been to build on the first four years of operations at Hope Corner Community Centre on Mays Lane which had been developed as part of the regeneration project of the Dollis Valley Estate.

Activities in the year continue to be related to generating sufficient income through donations and applications to grant-making trusts to fund operations at the new centre and to introduce new projects that would help to improve the lives of residents in the surrounding area. However, there has been specific focus on providing services that helped residents negotiate the Covid-19 pandemic and the enforced lockdowns.

The charity has managed Hope Corner Community Centre on Mays Lane with a stable staffing structure, which reflects the current services and activities. It has one full-time manager, a part-time seniors coordinator, a part-time assistant, a part-time cook, a part-time café assistant and various volunteers / casual project staff. The charity has continued to administer relief in need to the residents of Dollis Valley and, more general, the Underhill ward around central Mays Lane through both centres’ operations and services.

The business plan has been followed and expanded on, particularly assessing needs arising from the Covid-19 pandemic, and the charity has expanded its network of links and partnerships with local and national organisations to provide further opportunities for funding and volunteer assistance.

In producing their assessment of the benefit to the public provided by the charity the trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit and in particular, the specific guidance on the advancement of religion for the public benefit.

The charity continues to monitor the needs of local residents through the Regeneration Partnership Board and through engagement with service providers from London Borough of Barnet, Countryside Properties and other stakeholders, as well as participating with local groups and at locally organised community events. It is committed to providing a range of activities that provide care to multi-age, multi-faith groups and is in negotiation to provide more vocation initiatives in the local area with other agencies.

Achievements and performance

The centre was closed for a large period of time due to government-enforced lockdown during the Covid19 pandemic. The first lockdown ran from March 2020 to August 2020, when staff were placed on the government furlough scheme. The trustees agreed to continue to pay 100% of staff wages, making up the 20% not covered by furlough. We received support grant from local government of £25,000 due to the closure of our ‘leisure/cafe’ facility. This grant covered the loss in income of all the cancelled lettings.

The second period of lockdown ran from December 2020 and continued through to the financial year end (March 31, 2021) and beyond (May 2021). A further £6,286 was received in local government grants. The total amount received during the year from the furlough scheme was £46,603.

From April 2020), members of the charity and staff assisted with the lunch delivery service started by Open Door and Christ Church Food Bank. This developed into a partnership with Open Door entitled ‘Lunch in the Community’, providing 25-30 lunches, two days per week (Tuesdays and Thursdays) to residents on the Dollis Valley Estate and Underhill Ward. We received direct funding from Countryside Properties (£2,500), The Valentine Poole Charity (£1,000), Barnet Community Response Fund (£2,000) and Underhill Baptist Church. The initiative continued to run between the lockdowns since many vulnerable residents were not venturing out and indoor meetings were still restricted, right up to the financial year end (March 31, 2021). A one-off Christmas lunch was also delivered to 50 residents funded by Countryside Properties), with a further 50 delivered elsewhere in Barnet by Open Door.

When open, Hope Corner continued to provide relief in need through its Community Support Project (formerly known as the Drop-in Project), a triage service which includes referrals to local Food Banks, Housing Association surgeries, general drop-in advice, assistance with benefits (particularly with the change to Universal Credit), local Ward councillors’ surgeries, etc. Most of the Regeneration Partnership Board Meetings and advice clinics for residents provided by London & Quadrant, the housing association, switched to Zoom meetings.

The Centre offered a much-reduced number of affordable lets, due to the closures and the uncertainty that groups had in meeting indoors, despite trustees and staff putting full measures in place to make the centre safe. Wellbeing services were particularly affected at this time, and many were still not in a position to restart by March 31, 2021.

The catering operation, which was also hit by the closures, continued to operate a ‘basics’ menu, which is both affordable and popular with residents. The charity is planning to introduce a Crisis Voucher scheme which can be used in the café by people in need, funded by the Dollis Valley Residents’ ground rent scheme.

Regular activities that the centre runs itself or in partnership with local organisations were also badly affected, including ‘Rhyme Time’ for pre-school children and parents, ‘Tea & Tech’ for seniors (a computer-support group run with Barnet Rotary Club), ESOL classes (run in conjunction with Barnet College), ‘Love of Craft’ (a soft-furnishings creative group) and the Seniors Lunch. Most of these were closed for the majority of the year.

The after-school Homework Club ran between the two lockdowns and was particularly focused on helping students catch up with subjects such as Mathematics, which were much harder to teach by schools over their digital learning platforms. When running, the after-school ‘Art Club’ also continued to be popular, providing a creative and recreational outlet for junior and younger senior school children. This was funded by grant-making trusts, local charities and a grant from the Dollis Valley Residents ground rent scheme. A local artist (contractor) comes on-site to run the club.

A partnership with Fixation Academy for Performing Arts has been launched with a scholarship scheme that will provide 10 free places for one year in a range of creative dance and theatre classes that they provide at the centre. This has been funded by a grant from the Dollis Valley Residents ground rent scheme.

Fund-raising and awareness-raising continued throughout 2020-21, including work on applications to local and national grant-making trusts and foundations for financial support for the planned projects. The Hope Corner website was developed further with the introduction of pages about Churches Together for Chipping Barnet and our listing on Google received more positive reviews.

Improvements have been made to the centre including isolation of the rear door shutter, which enables evening classes and groups to come and go via the rear of the building and ensures we can get into the centre should one of the external shutter doors fail.

Financial review

The charity’s funds are divided into restricted, designated and unrestricted funds .

Restricted funds can only be used for the purpose for which they have been given. During the year grants were received from charitable trusts and other grants of £31,800 and £22,963 of furlough money has been used to support the drop in project. Grant monies of £43,595 were used during the year. The balance on restricted funds at the end of year was £23,420.

The designated fund was set up in 2018 following the receipt of a grant of £100,000 from the funds bequeathed for charitable purposes which the trustees have designated for the following purposes:

 To fund core costs (excluding core salaries) in running the community centre which could not be otherwise funded by grant-making trusts

To support shortfalls in funding for the Community Support Project
To offset costs incurred by projects that have subsidised elements, such as providing affordable
rental rates to local residents and organisations, subsidised food in the community café, etc.
To help develop and extend existing projects
To help fund new projects

No use of the fund was made during the year so that a balance of £42,708 continues to be carried forward to future years. The trustees plan that it will be spent over the next two years or so as the need arises on activities and services that the charity would be unable to develop without it.

The unrestricted fund, the general fund, is the main fund into which income is paid and payment is made for the cost of running the charity. The income of the year was £71,855 and expenditure for the year was £55,602.

As a result, there was net income on the general fund for the year of £18,253 and the balance to carry forward at the end of the year was £19,413.

Because of continuing support from charitable organisations the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the accounts.

It is the policy of the trustees to maintain a balance on general fund, if possible, which equates to three months unrestricted payments. The budget for core costs for the year to 31 March 2022 is about £70,000 so that the balance carried forward meets this policy.

Structure, governance and management

The company was incorporated on 25 July 2013 and was registered as a charity on 9 December 2013. The charity took over the operation and assets of The Valley Centre, an unincorporated association sponsored by Churches Together for Chipping Barnet, as from 1 April 2014.

New trustees are appointed from time to time, being persons who have an interest in the objectives of the charity. The trustees have been in contact as the need has arisen during the year.

The members of the company are two representatives from each of the eleven churches that make up Churches Together for Chipping Barnet and each member has liability limited to a sum not exceeding £1.

The trustees have assessed the major risks to which the charity may be exposed, in particular those relating to the operations and finances of the charity. They are satisfied systems are in place to mitigate any exposure to major risks. All necessary insurances are in place, CCTV is installed, there is a fireproof safe for documents, a minimal amount of cash is kept on the premises and safeguarding procedures are in place.

Statement of trustees’ responsibilities

The trustees (who are also directors of the company for the purposes of company law) are responsible for preparing the trustees’ annual report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charitable company as at the balance sheet date and of the incoming resources and application of resources, including the income and expenditure for that year. In preparing these accounts, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgments and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue on that basis.

The trustees are responsible for keeping proper 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 accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In preparing this report, the trustees have taken advantage of the small companies exemption provided by section 415A of the Companies Act 2006.

Approved by the board of trustees on 19 November 2021 and signed on their behalf by:

JULIAN DESBOROUGH Director

BARNET CHURCHES ACTION

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTS)

FOR THE YEAR ENDED 31 MARCH 2021

Notes Income from: Donations 2 Charitable activities: Centre lettings Café income Government Covid grants HMRC furlough grants Interest Total income Expenditure on: Charitable activities 3,4 Total expenditure Net income and net movement of funds for the year Reconciliation of funds: Total Funds at 1 April 2020 Total Funds at 31 March 2021	Unrestricted Designated Restricted Total Total funds funds funds funds funds 2021 2021 2021 2021 2020 £ £ £ £ 11,920 - 31,800 43,720 42,706 1,277 - - 1,277 19,475 3,054 - - 3,054 24,858 31,286 - - 31,286 - 23,640 - 22,963 46,603 - 678 - - 678 1,200
	71,855 - 54,763 126,618 88,239
	53,602 - 43,595 97,197 151,230
	53,602 - 43,595 97,197 151,230
	18,253 - 11,168 29,421 (62,991) 1,160 42,708 12,252 56,120 119,111
	19,413 42,708 23,420 85,541 56,120

All activities relate to continuing operations.

The attached notes form part of the accounts.

BARNET CHURCHES ACTION

Company Registration Number: 8625115

BALANCE SHEET AS AT 31 MARCH 2021

BALANCE SHEET AS AT 31 MARCH 2021
Notes Current assets Debtors 7 Bank deposit account Cash in bank current account and in hand Current liabilities Creditors: amounts falling due within one year 8 Net current assets Funds 9 General fund Designated funds Restricted funds	2021 2020 £ £ 9,275 1,437 40,000 40,000 38,556 17,430
	87,831 58,867 2,290 2,747
	85,541 56,120
	19,413 1,160 42,708 42,708 23,420 12,252
	85,541 56,120

The directors consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act.

The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at 31 March 2021 and of its net incoming resources for the year then ended in accordance with the requirements of sections 394 and 395 of the Act and which otherwise comply with the requirements of the Companies Act 2006 relating to the financial statements so far as applicable to the company.

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

The financial statements were approved by the directors on 19 November 2021 and signed on their behalf by:

ROGER SEATON JULIAN DESBOROUGH Director Director

The attached notes form part of the accounts.

BARNET CHURCHES ACTION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting Policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention and in accordance with 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 2015) - (the Charities SORP (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Companies Act 2006.

The charity constitutes a public benefit entity as defined by FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.2 Company Status

The company is a company limited by guarantee. The members of the company are two representatives from each of the eleven churches that make up Churches Together for Chipping Barnet and each member has a liability limited to a sum not exceeding £1.

1.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income can be measured reliably.

Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

1.4. Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party. It is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.

Support costs are costs incurred directly in support of expenditure on the objects of the charity. These include development costs and equipment which have been written off. Governance costs are those incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.

BARNET CHURCHES ACTION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

1.6 Fund accounting

Unrestricted funds are expendable at the discretion of the directors in furtherance

of the objects of the company. Designated funds are those funds that have been set aside by the directors for a particular purpose. Restricted funds are those funds that have been donated for a particular purpose and must be spent by the directors on the furtherance of that purpose.

1.7 Debtors

The unpaid lettings invoices are regognised at the settlement amount. Prepayments are valued at the amount prepaid.

1.8 Creditors

Creditors are recognised where a charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

1.9 Financial instruments

The charity only has financial assets and financial liablities of a kind that qualifies as basic financial instruments. Basic financial instruments (including debtors and creditors) are initially recognised at transaction value and subsequently measured at their settlement value.

1.10 Cash on bank current account and in hand

Cash on bank current account and in hand includes cash and current and immediate access deposit accounts.

BARNET CHURCHES ACTION NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

2. Income from donations

Grants from charities: Hadley Trust Barnet Old Peoples Valentine Poole Young Barnet Foundation Other grants: Churches Together for Chipping Barnet Countryside Properties L&Q Other donations	Unrestricted Designated Restricted Total Total funds funds funds funds funds 2021 2021 2021 2021 2020 £ £ £ £ 10,000 - 23,000 33,000 33,000 - - - - 6,000 - - 1,000 1,000 - - - 2,500 2,500 - - - - - 3,000 - - 3,900 3,900 - - - 1,400 1,400 -
	10,000 - 31,800 41,800 42,000 1,920 - - 1,920 706
	11,920 - 31,800 43,720 42,706

For the year ended 31 March 2020 £13,706 related to unrestricted funds and £29,000 related to restricted funds.

3. Expenditure on charitable activities

Summary by fund type

Staff costs (excluding café manager) Utilities Repairs and maintenance Catering costs (including café manager) Other Centre running costs Equipment Administrative costs Training courses Redundancy payment Governance costs (see note 5)	Unrestricted Designated Restricted Total Total funds funds funds funds funds 2021 2021 2021 2021 2020 £ £ £ £ 28,240 - 34,795 63,035 89,190 6,492 - - 6,492 11,829 1,432 - - 1,432 1,941 12,956 - 7,400 20,356 26,069 1,360 - - 1,360 2,539 1,377 - 1,400 2,777 2,795 425 - - 425 325 - - - - 74 - - - - 15,328 1,320 - - 1,320 1,140
	53,602 - 43,595 97,197 151,230

For the year ended 31 March 2020 £71,841 related to unrestricted funds, £47,208 to designated funds and £32,181 to restricted funds.

BARNET CHURCHES ACTION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

4. Analysis of expenditure on charitable activities

Staff costs (excluding café manager) Utilities Repairs and maintenance Catering costs (including café manager) Other Centre running costs Equipment Administrative costs Training courses Redundancy payment Governance costs (see note 5) 5. Governance costs (included in analysis Independent examination fee	Direct Support Governance Total Total costs costs costs 2021 2020 £ £ £ £ £ 59,662 3,373 - 63,035 89,190 6,492 - - 6,492 11,829 1,432 - - 1,432 1,941 20,356 - - 20,356 26,069 364 996 - 1,360 2,539 2,777 - - 2,777 2,795 - 425 - 425 325 - - - - 74 - - - - 15,328 - - 1,320 1,320 1,140
	91,083 4,794 1,320 97,197 151,230
	in notes 3 and 4) Unrestricted Designated Restricted Total Total funds funds funds funds funds 2021 2021 2021 2021 2020 £ £ £ £ £ 1,320 - - 1,320 1,140
	1,320 - - 1,320 1,140

5. Governance costs (included in analysis in notes 3 and 4)

For the year ended 31 March 2020 all costs related to unrestricted funds. During the year no expenses were reimbursed to trustees (2020 : nil).

6. Staff costs

The average number of staff employed during the year was 7. (2020 : 7). Employers national insurance contributions of £nil were paid in the year (2020: £2,835). Pension contributions of £847 were paid in respect of 3 employees (2020 : 3 - £694).

The Centre Manager, Susan Day, along with trustees as a body, but chiefly Julian Desborough, are considered the key management personnel of the charity and total remuneration paid in this category amounted to £29,539 (2020 : £26,985).

7. Debtors Unpaid lettings invoices Grants outstanding Prepayments 8. Creditors: amounts falling due within one year Accruals Other creditors	2021 2020 £ £ - 565 8,202 - 1,073 872
	9,275 1,437
	1,471 1,329 819 1,418
	2,290 2,747

BARNET CHURCHES ACTION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

9. Statement of funds

Restricted funds

9. Statement of funds Restricted funds
Homework club Seniors work Lunches provided during lockdown Drop in project Playclub Equipment Training Designated funds General fund	Brought Incoming Resources Carried forward resources expended forward £ £ £ £ - 4,340 (4,340) - 10,001 12,989 (8,000) 14,990 - 7,400 (7,400) - 1,593 28,634 (22,155) 8,072 400 - (300) 100 - 1,400 (1,400) - 258 - - 258
	12,252 54,763 (43,595) 23,420 42,708 - - 42,708 1,160 71,855 (53,602) 19,413
	56,120 126,618 (97,197) 85,541

The above restricted funds are all separate activities of the Centre and are grant funded. The designated funds are to be used to fund core costs which could not otherwise be

grant funded; to support shortfalls in funding for the drop in project; to offset costs incurred by projects that have subsidised elements; to help develop and extend new projects and to fund new projects.

10. Analysis of net assets between funds

Current assets Creditors : amounts falling due within one year	Unrestricted Designated Restricted Total Total funds funds funds funds funds 2021 2021 2021 2021 2020 £ £ £ £ £ 25,710 42,708 19,413 87,831 58,867 (2,290) - - (2,290) (2,747)
	23,420 42,708 19,413 85,541 56,120

11. Analysis of cash and cash equivalents

11. Analysis of cash and cash equivalents
Bank deposit account Bank current account Cash in hand	2021 2020 £ £ 40,000 40,000 38,456 17,330 100 100
	78,556 57,430

Independent Examiner's Report to the Trustees of Barnet Churches Action

I report on the accounts of the company for the year ended 31 March 2021 which are set out on pages 6 to 12.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

examine the accounts under section 145 of the 2011 Act;
follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
state whether particular matters have come to my attention.

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

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 that in any material respect:

accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
the accounts do not accord with those records; or
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

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.

Richard Hill FCA Griffin Stone Moscrop & Co Chartered Accountants 21-27 Lamb’s Conduit Street

London WC1N 3GS Date:22 November 2021