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2020-12-31-accounts

St. Anne’s Lutheran Church

Annual Report 2020

1

Trustees/Directors of St Anne’s Lutheran Church 2020-2021:

Jeff Trinklein (Chair) Kathy Unger Fred Nsemwa (Treasurer) Robert Rosset Tracy Maroske Timo Lehtonen Rev’d Wendy Sherer

Staff

Senior Pastor: Rev’d Wendy Sherer Swahili Pastor: Rev’d Moses Shonga Associate Minister: Meelis Süld Director of Music: Erik Cannell Administrator: Nikki Renken

Company no : 07034615 Charity registration no : 1157365

Registered Office

St Mary-at-Hill, Lovat Lane London EC3R 8EE

Independent Examiner

Counterculture Partnership LLP Unit 115 Ducie House Ducie Street Manchester M1 2JW

2

Chairman’s Statement

Dear Friends in Christ,

We will always remember where we were when the world shut down in March 2020, as the Covid pandemic swept across the world. Through March 2020, we had in-person services; but for the rest of the year, our weekly services and our contact with each other occurred only over Zoom and YouTube.

Yet, the Lord’s work continues. We began the year needing to replace our long-time Senior Pastor Eliza Zikmane, who left us at the end of 2019 as she took up a new role in her native Latvia serving a Church of England congregation. After a short search, our congregation issued a call to our new Senior Pastor, Wendy Sherer. Pastor Wendy is no stranger to St. Anne’s; she has been an active member of our congregation since 2011, and has preached often in the past. She has proved adept (thanks in no small part to husband Sion) at moving services on-line during the worst of the Covid-related lockdowns.

During 2020, we reluctantly bade a virtual farewell to our Associate Pastor Sarah Farrow, who took on additional responsibilities in her burgeoning chaplaincy ministry with both Kings College, London and Mansfield College, Oxford. We are blessed that the Farrows will continue as members at St. Anne’s.

Our Swahili Service Pastor Moses Shonga continued a regular schedule of Swahili services in the sanctuary until March and thereafter began services online. In fact, during the time of Covid the Swahili service began meeting on Zoom on a weekly basis, allowing more frequent times for worship not just from members in London but also from members and friends from around the world—another hidden blessing of Covid.

During the unusual year of 2020, you will see in the annual financial statement that our expenditures and funding were both reduced, but were remarkably stable for the year. During 2020, we have recovered all pending Gift Aid from HMRC through the 2017 tax year, and we anticipate that all Gift Aid filings will be brought up to date during the 2021 calendar year.

Community and outreach support were continued with Bach Vespers services during January and February, with the generous financial support of Gibson Dunn and the German Church in Hanover. We made financial donations to the East London-based food bank and counselling centre First Love Foundation, and we discovered during the darkest times the power of the Holy Spirit to work change in all of us.

Thank you, to you the members, for your kind and generous prayers and support to us as trustees this past year.

Jeff Trinklein

Chair of Trustees

3

Treasurer’s report

Income

Total receipts on unrestricted voluntary donations were £59,093, which is a decrease of over 24% on 2019 figures (-£18,757 vs 2019). We saw a significant reduction in collection at services due to the results of church closures due to lockdown measures for the most part of 2020. Collection at services were nearly 75% down from 2019, with a total of £6,228 collected.

We were very grateful that we received a generous donation from the estate of the late Pastor Johann Schneider (£10,000) and significant contributions from the ELCA (£22,645). We received a further £1000 of restricted funds from the LCiGB to provide support due to the impact of Covid to the First Love Foundation foodbank and City Bach Collective.

The total income (incorporating restricted giving, as well as activity and other income) decreased to £60,093 (£86,269 in 2019) with the generous donations and the recovery of gift aid from previous fiscal years helping to minimise the significant negative impact on income from the church closures during the period of lockdown. Against 2020 total income budget of £100,600 were £18,066 behind budget, equivalent to around 18%.

We praise God for his provision of these funds and the love and commitment of the church members and the wider community. We are enormously grateful to our church members for continuing to give so generously to the work of the church in terms of both their time and money. The church is dependent on its membership working as volunteers in all aspects of the church’s activities, many of which run with little or no impact on church’s expenditure, but nevertheless contribute substantially to the achievement of the church’s objectives.

Expenditure

Overall, expenditure totalled £71,736 (down £13,708 vs 2019 and below the budget of £80,600) leaving a material deficit for the year of £11,643 when compared to total receipts. The decrease in expenditure was due to some costs being avoided as a result of the closure of the church during the lockdown.

Unfortunately, most of the operating costs e.g. church rent, insurance, LCiGB affiliation fees etc. could not be avoided during lockdown and SALC continued to honour all its financial obligations as planned pre-covid. After a review of staffing arrangements at the start of lockdown, Staff continued to be paid for their regular hours and no recourse as sought from the government furlough scheme.

Our unrestricted reserves at the end of the year amounted to £120,004. There were no current liabilities for the year under review.

Reserves Policy

As part of good practice and given the continued uncertainty about funding, SALC Trustees have resolved to protect the continuity of service to the congregation by ensuring that SALC has free reserves to allow the charity to cope with reasonable level of unforeseen expenditure. The Charity Commission recommends that organisations maintain such reserves. For instance, in the event that SALC has to wind up there will be costs associated in doing this such as staff given notice/redundancy, liabilities and so forth.

As part of the contingency planning and risk management, SALC Trustees have established a reserves policy that ensures SALC maintains a balance on unrestricted funds which as far as possible equates to at least four months of unrestricted payments.

The value of reserves agreed to be in place at the end of 2020 financial year (for 2020) by the SALC Finance Committee was £20,000. Reserves held above this value are purposed to smooth fluctuations in cash flow, meet emergencies and to allocate towards the activities of the church over the coming years.

The unrestricted general fund reserve currently exceeds the four month’s unrestricted payments.

4

Senior Pastor’s Report

This was an unusual year, to say the least. I began serving the congregation as interim at the beginning of the year, continuing into the time when the global pandemic necessitated the discontinuation of in-person worship at St. Mary-at-Hill in late March. Following an interview via video conference, I was called and appointed as your permanent senior pastor effective April 2020, thus beginning a peculiar era in St. Anne’s history wherein all church activities were conducted remotely for the remainder of the year.

Worship was primarily offered weekly via Facebook Live, a medium which enables some audio/visual enhancement (such as slides for various liturgical elements, videos provided by lay scripture readers, and music both recorded by our organist and procured from online sources), but which limits participant interaction to written comments. Pastor Sarah led occasional services (i.e. Easter Vigil and selected Sundays, as able) using a live Zoom link whereby participants could lead various elements of service and also see one another (although audio and visual quality is somewhat compromised). Member feedback was periodically sought re. our digital offerings, with persons expressing appreciation at being able to experience regular worship online, albeit admittedly (and understandably) not as satisfying as gathering in person each week.

Trustees continued meeting monthly via Zoom, with conversations about staying connected as a congregation ‘in exile’ at the forefront of many meetings. Weekly ‘virtual coffee hours’ took place after each live streamed service, giving members an opportunity to connect and converse, with an average of 5-8 people participating each Sunday. About eight congregants also met ‘virtually’ over eleven weeks for a book study exploring the ways we approach reading and hearing scripture. Children’s activities were unfortunately curtailed, although several young people actively took part in some of the Zoom services, as well as an online Advent craft activity in early December. Most crucially, several members took it upon themselves, along with the Pastors, to actively reach out to members without the technology (or desire) to participate in digital offerings, ensuring that they didn’t feel excluded or overlooked should they have any needs re. prayer or otherwise.

In this manner we continued until the conclusion of the year, with a Christmas Eve live stream featuring a ‘virtual choir’ comprised of members who had submitted recordings of themselves singing Silent Night, with harmonies combined in the closest approximation of a congregational hymn since the cessation of live worship nine months prior. We concluded 2020 with hopes of resuming in person services during the coming year, as well as postponed events (e.g. confirmation, installation).

From a staff perspective, Pastor Sarah concluded her formal service with St. Anne’s in order to focus more on chaplaincy, and Meelis Süld joined us on an ad hoc basis to deliver occasional online worship services, as needed.

Thank you to all who offered leadership and support this past year.

In Christ,

Rev. Wendy Sherer,

Senior Pastor

5

Swahili service report

Swahili Service had some goals to be achieved during the year 2020, due to pandemic all our plans were not achieved we had to put things on hold, however we give thanks to the Lord for everything, though we were not attending church in person technology helps us through so we were able to continue our services through Zoom. As a community we trust God will continue to be with us through this difficult time. Despite restrictions and lockdowns, we decided to continue with our service every Sunday via Zoom.

Sunday school:

Thank you to all the Sunday school teachers, for their wonderful and creative teaching. We have seen attendance increase with more than 22 children of different ages. Children learn different stories from the Bible, as well as pray together. Children have been given the opportunity to sing either in Swahili or English. Children also performing, readings and singing

Funerals:

It was sad news for our Swahili community, during the pandemic we lost two of our members due to Covid-19. Also, during this year most of our members abroad lost loved ones due toCovid-19.

Baptism:

In 2020, due to the pandemic we could not hold the baptism.

Birthdays:

We continued to celebrate congregation members’ birthdays every Sunday with blessings.

The Service continues to maintain a steady attendance of more than 65 people. We are grateful for the efforts of all leaders and those who volunteer. Even though we held the services on Zoom, the Lord blessed our Swahili Service continuously and we pray for continued blessings in the future. We also acknowledge the participation and assistance of all those who have been involved with the Service, in one capacity or another, we pray that the Lord continues to grant everyone whatever they require to continue being part of our community.

During this time of pandemic, we have also seen the blessings in our every Sunday service, most people join Swahili service via zoom from different parts of the world.

Challenges:

The greatest challenge was not being able to worship together in person.

Most of the Swahili events were cancelled due to pandemic.

In Christ,

Pastor Moses Shonga

6

St Anne Lutheran Church Ltd Statement of Trustees Responsibilities For the year ended 31 December 2020

The trustees, who are also the directors of St Anne Lutheran Church 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 charity 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 charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees and signed on behalf by

Jeff Trinklein

Frederick Nsemwa

Chair

Treasurer

5[th] November 2021

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St Anne Lutheran Church Ltd

Independent Examiners Report

For the year ended 31 December 2020

I report to the charity trustees on my examination of the accounts of St Anne Lutheran Church for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.

Responsibilities and basis of report

The trustees (who are also the directors of the company for the purposes of company law) 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 for this year 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 confirm that I am qualified to undertake the examination because I am a Fellow of the Association of Charity Independent Examiners.

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

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.

5[th] November 2021

Tom Wilcox FCIE Counterculture Partnership LLP Unit 115 Ducie House Ducie Street Manchester M1 2JW

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Unrestricted
Designated
Restricted
Restricted
Restricted
Restricted
Totals
Voluntary Receipts
notes
General Fund
Funds
Grant (Music)
LCiGB
Appeal
Swahili Spec
2020
Regular Giving
2
6,228
0
0
0
0
0
6,228
Other Giving
3
43,781
0
0
0
0
0
43,781
Grants
4
0
0
0
1,000
0
0
1,000
Gift aid
5
-1,473
0
0
0
0
0
-1,473
Legacy Payment from the Estate of JRL Scheneider
10,008
10,008
Other income
550
0
0
0
0
0
550
St Anne Lutheran Church
Financial Statements as at 31st December 2020
Receipts & Payments A/c		 Unrestricted
Designated
Restricted
Restricted
Restricted
Restricted
Totals
Voluntary Receipts
notes
General Fund
Funds
Grant (Music)
LCiGB
Appeal
Swahili Spec
2020
Regular Giving
2
6,228
0
0
0
0
0
6,228
Other Giving
3
43,781
0
0
0
0
0
43,781
Grants
4
0
0
0
1,000
0
0
1,000
Gift aid
5
-1,473
0
0
0
0
0
-1,473
Legacy Payment from the Estate of JRL Scheneider
10,008
10,008
Other income
550
0
0
0
0
0
550
St Anne Lutheran Church
Financial Statements as at 31st December 2020
Receipts & Payments A/c		 Appendix A/1
Totals
2019
24,352
52,944
8,418
0
0
555
Total Receipts
Payment
Church Activities
6
Excess receipts over payments
Transfers between funds
Balances b/f at 1st Jan		 59,093
0
0
1,000
0
0
60,093
70,036
0
1,700
0
0
0
71,736
70,036
0
1,700
0
0
0
71,736
-10,943
0
-1,700
1,000
0
0
-11,643
0
0
0
0
0
0
0
-10,943
0
-1,700
1,000
0
0
-11,643
130,947
0
2,439
4,000
0
0
137,386		 86,269
85,444
85,444
825
0
825
136,561
Balance c/f at 31st Dec 120,004
0
739
5,000
0
0
125,743		 137,386
Monetary Assets
Statement of		 Unrestricted
Designated
Restricted
Restricted
Restricted
Restricted
Totals
General Fund
Grant (Music)
LCiGB
Appeal
Swahili Spec
2020
£
£
£
£
£
£
£
St Anne Lutheran Church
Assests and Liabilities as at 31st December 2020
Appendix A/2
Totals
2019
£
Bank current A/cs 89,722
0
0
5,000
0
0
94,722		 82,334
CAF Deposit fund
Current Assets
Cash in hand		 11,015
0
0
0
0
0
11,015
100,736
0
0
5,000
0
0
105,736
£
£
£
£
£
£
£
232
0
0
0
0
0
232		 1,006
83,340
£
626
Advance 236
0
0
0
0
236		 2,182
Debtors
Accrued income (Gift aid-Prior years)		 0
0
0
0
0
0
13,888
0
0
0
0
0
13,888		 690
46,500
Accrued income (Current Year) 6,251
0
0
0
0
6,251		 6,088
Accrued income (music grant) 0 0
56,086
Current Liabilities
HMRC		 £
£
£
£
£
£
£
0
0
0
0
0
0
0		 £
0
Staff Bonus Payments 0
0
0
0
0
0
0		 2,040
Accruals 600
0
0
0
0
0
600		 0
2,040
137,386
600
0
0
0
0
0
600
120,743
0
0
5,000
0
0
125,743

NOTE: The notes on pages 10 to 12 form an integral part of these financial statements

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

Company Number: 07034615

9

St Anne Lutheran Church Ltd Notes to the Financial Statements ~ Year ended 31st December 2020

Note 1. Accounting policies

The principal accounting policies which have been applied consistently throughout the year are summarised below.

1.1. Basis of Accounting

The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller entities (effective April 2008), Statement of Recommended Practice ‘Accounting and Reporting by Charities’ issued in March 2005 (SORP 2005) and companies Act 2006

1.2. Incoming resources

Recognition of incoming resources - These are included in the Statement of Financial Activities (SoFA) when:

The following specific policies are applied to particular categories of income:

Grants and donations - Grants and donations are only included in the SoFA when the charity has unconditional entitlement to the resources.

Gifts in kind - Gifts in kind for sale are included in the accounts as gifts only when sold by the charity.

Donated services and facilities - Donated services and facilities would only be included if the value can be quantified.

Volunteer help - The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report.

Investment income - This is included in the accounts when receivable.

1.3 Expenditure and Liabilities

Liability recognition - All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for its expenditure. All costs have been directly attributed or proportionally charged to the functional categories of resources expended in the SOFA.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Expenditure on charitable activities comprises the costs incurred by the Charity in the delivery of its activities and services in the furtherance of its objects, including the making of grants and governance costs.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs.

All remaining costs are classified as support costs. Support costs are those that assist the work of the charity but do not directly represent charitable activities.

1.4 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. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are available for use subject to restrictions imposed by the donor or through terms of an appeal.

1.5 Taxation

As a registered charity, the company is exempt from corporation tax on surpluses arising from its charitable activities during the year.

10

Unrestricted
Designated
Restricted
Restricted
Restricted
Restricted
Totals
General Fund
Funds
Grant (Music)
LCiGB
Appeal
Swahili Spec
2020
St Anne Lutheran Church
Notes to the Financial Statements ~ as at 31 December 2020		 Unrestricted
Designated
Restricted
Restricted
Restricted
Restricted
Totals
General Fund
Funds
Grant (Music)
LCiGB
Appeal
Swahili Spec
2020
St Anne Lutheran Church
Notes to the Financial Statements ~ as at 31 December 2020
Appendix A/3
Totals
2019
Note 2 - Regular Giving
Morning Service
Swahili Service
Bach Vespers
Other Service
Total Regular Service Giving
Note 3 - Other Giving
Online Giving
Special Offering
Total Other Giving
Note 4 - Grants
LCiGB grant
Hanover music grant
Gibson Dunn (Music program)
Total Grants
Note 5 - Gift Aid
2019 Est
Over accrual for prior year
2020 Est
Incremental Reserve on prior years
Total Gift Aid		 2,124
0
0
0
0
2,124
2,774
0
0
0
0
2,774
800
0
0
0
0
800
530
0
0
0
0
530
6,228
0
0
0
0
6,228
43,781
0
0
0
0
43,781
0
0
0
0
0
0
43,781
0
0
0
0
43,781
0
0
0
1,000
0
1,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,000
0
1,000
0
0
0
0
0
0
-7,724
0
0
0
0
-7,724
6,251
0
0
0
0
6,251
0
0
0
0
0
-1,473
0
0
0
0
-1,473		 14,607
5,184
3,773
788
24,352
49,341
3,604
52,944
2,040
3,378
3,000
8,418
6,088
0
0
-6,088
0
Note 6 - Church Activities
Office Expenses
Office Supplies & stationery
Photocopier
Printing
Postage
Telephone/fax & Internet
Bank charges
Miscellaneous office expenses
Total Office Expense
Premises Costs
Insurance
Church rent
Total Premises Costs
Worship expenses
Worship supplies & hospitality
Ministerium Expns
Total
Music Costs
Cantor Fee
Guest Organists
Musicians Fees
Organ Tuning
Total Music Cost		 0
0
0
0
0
0
856
0
0
0
0
856
0
0
0
0
0
0
0
0
0
0
0
0
528
0
0
0
0
528
78
0
0
0
0
78
0
0
0
0
0
0
1,463
0
0
0
0
1,463
1,111
0
0
0
0
1,111
13,833
0
0
0
0
13,833
14,944
0
0
0
0
14,944
98
0
0
0
0
98
300
0
0
0
0
300
398
0
0
0
0
398
1,940
0
0
0
0
1,940
0
0
0
0
0
0
0
0
1,700
0
0
1,700
0
0
0
0
0
0
1,940
0
1,700
0
0
3,640		 147
0
1,817
55
592
90
46
2,747
1,018
14,686
15,704
17
1,342
1,359
2,710
50
6,870
505
10,135

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----- Start of picture text -----
Staff costs
Lead Pastor 16,644 0 0 0 0 16,644 20,818
Salary--Wendy-Pastor 16,503 0 0 0 0 16,503 0
Associate Pastor 1,717 0 0 0 0 1,717 4,804
Swahili Services Pastor 4,180 0 0 0 0 4,180 4,956
Administration Support Staff 8,366 0 0 0 0 8,366 8,142
Salary--Nikki-Admin 8,366 0 0 0 0 8,366 8,142
HMRC 6,736 0 0 0 0 6,736 2,041
ERS pension contribution 3,002 0 0 0 0 3,002 855
Total Staff Cost 40,644 0 0 0 0 0 40,644 41,616
Travel Expense 28 0 0 0 0 28 608
Total Other Staff Cost 28 0 0 0 0 0 28 608
Professional Fees and Other
Web Design 65 0 0 0 0 65 81
Payroll Processing 0 0 0 0 0 0 213
LCiGB Affiliation Fees 7,224 0 0 0 0 7,224 5,365
CCLI Copyright Fee 191 0 0 0 0 191 152
Other Professional Fees 142 0 0 0 0 142 0
Independent examination 600 0 0 0 0 600 0
Other Expense 586 0 0 0 0 586 525
Total Professional and Other 8,807 0 0 0 0 8,807 6,336
Voluntary Contributions 1,811 0 0 0 0 1,811 6,939
Total Church Activities Expenditures 70,036 0 1,700 0 0 0 71,736 85,444
----- End of picture text -----

Note 7 - Company Limited by guarantee

St Anne’s Lutheran Church Limited is a company Limited by Guarantee and accordingly does not have a share capital. Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

St Anne’s Lutheran Church Ltd St Mary-at-Hill, Lovat Lane, London EC3R 8EE Tel: 020 7263 6305 Mobile: 074 8338 5720 e-mail: admin@stanneslutheranchurch.org.uk www.stanneslutheranchurch.org.uk

Company no: 07034615 Charity registration no: 1157365

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