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2021-08-31-accounts

ANNUAL REPORTS AND FINANCIAL STATEMENT FOR THE YEAR ENDED AUGUST 2021

CITY CHURCH MANCHESTER CIO (Charitable Incorporated Organisation)

Charity Registration number 1157448

1

City Church Manchester Annual Report

Trustee report for the year ended 2021

Weekly Gatherings

As COVID restrictions were gradually lifted the church held two Sunday services with an attendance averaging 150. In order to follow social distancing guidelines, a booking service was implemented and an online livestream provision was provided for those unable to attend in person. The online provision averages 200 views and has led to engagement from people outside of Manchester and the Northwest. Our midweek gatherings of connect groups continued to meet via zoom.

Mission and outreach

Given the interest in our livestream services, City Church also ran seeker courses online with over 80 people attending courses (Christianity Explored, Life Explored and Alpha).

The church also organised some physical outreach activities such as the Christmas wreath decorating workshop and the Christmas carol service. All physical gatherings followed government guidelines in place at the time.

Training

The Church has continued to host online training for church planting through the Incubator programme (training those preparing to church plant) and the monthly Planters Collective (supporting and training for those having planted a church). City Church ran a ministry training programme called ‘Finding Your Story’ designed to help church attendees better understand their spiritual gifts and join in with ministry opportunities throughout the church.

Partnership

City Church continues to resource churches in Greater Manchester, the north west and beyond. The church continues to financially support 4 churches in the north west and send preachers to other churches in Manchester and the north west. The Church remains committed to partner with other churches throughout the world. We continue to support church plants in Kyiv (Ukraine), Fairfield (Connecticut, USA) and Dubai (USA). These churches receive financial support and training support where it is needed. As restrictions continue to be lifted worldwide, we hope to send out missions teams to these churches.

Trustees’ Responsibilities

The Charities Act 2011 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 CIO and of the surplus of the CIO for that period. In preparing those financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the CIO. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detections of fraud and other irregularities. Approved by the Trustees on: 29/06/2022

Signed on behalf by Trustee:

Printed name: Justin Theed

2

STATEMENT OF FINANCIAL ACTIVITIES

for the YEAR ENDED 31[st] AUGUST 2021

INCOME
Donations and legacies
Charitable activities
TOTAL INCOME
EXPENDITURE
Raising funds
Charitable activities
TOTAL EXPENDITURE
NET INCOME / (EXPENDITURE)
Transfers between funds
Transfer of funds
Net movements in funds
Balances brought forward at 1st
September 2020
BALANCES CARRIED FORWARD AT
31st AUGUST 2021		 NOTE
2a
2b
3a
3b		 2021
Unrestricted
Funds
317,682
7,679		 2021 2021
2021
2020
Restricted
Total
Total
Funds
Funds
Funds
62,824
380,506
537,570
-
7,679
4,932		 2020
Total
Funds		 2020
£325,361 £62,824
£388,185
£542,502
7,140
302,427		 403
7,543
8,810
40,266
342,693
454,291
£309,567 £40,669
£350,236
£463,101
15,794
(15,774)
-		 22,155
37,949
79,401
15,774
-
-
-
-
178,134
20
£374,936		 37,929
37,949
257,535
£78,057
£452,993
£195,458
£374,956 £115,986
£490,942
£452,993

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

The notes on pages 6-16 form part of these financial statements.

3

BALANCE SHEET

AT 31[st] AUGUST 2021

FIXED ASSETS
Tangible fixed assets
CURRENT ASSETS
Debtors
Cash at bank and in hand
CURRENT LIABILITIES
Creditors
NET ASSETS
FUNDS
Restricted funds
Unrestricted funds		 Note
7
8
9
10
5, 14
5, 14		 2021
2020
104,141
106,301
3,152
8,157
394,263
347,948		 2020
397,415
356,105
(10,614)
(9,413)
£490,942
£452,993
115,986
78,057
374,956
374,936
£490,942
£452,993

The notes on pages 6-16 form part of these financial statements.

The accounts on pages 9-16 were approved by the Trustees on 29/06/2022 signed on their behalf.

Ralph Cunnington

Justin Theed

4

STATEMENT OF CASH FLOWS AT 31[st] AUGUST 2021

Cash flows from operating activities:
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Purchase of property, plant and equipment
Net cash provided by (used in) investing activities
Cash flows from financing activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the reporting
period		 Note
2021
2020
11
48,583
169,070
(2,268)
(9,017)
46,315
160,053
-
-
46,315
160,053
347,948
187,895
£394,263
£347,948		 Note
2021
2020
11
48,583
169,070
(2,268)
(9,017)
46,315
160,053
-
-
46,315
160,053
347,948
187,895
£394,263
£347,948		 2020
11
46,315
160,053
-
-
46,315
160,053
347,948
187,895
£394,263
£347,948

All cash is held as cash in hand.

The notes on pages 6-16 form part of these financial statements.

Changes in net debt:

Cash at start of year
Cashflows
Cash at end of year		 347,948
46,315
£394,263

5

1. ACCOUNTING POLICIES

Basis of Accounting

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The 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 (FRS102) (effective 1 January 2015) - (Charities SORP - FRS102) and the Charities Act 2011.

The Charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.

Preparation of the accounts on a going concern basis

The Trustees are of the view that the immediate future of City Church Manchester CIO for at least the next 12 to 18 months is secure and that on this basis the accounts have been prepared on a going concern basis.

Fixed Assets

Fixed assets are recorded at historic cost.

Depreciation is calculated to write down the cost less estimated residual value of the fixed assets over their expected useful lives. Land is not depreciated. The rates and periods generally applicable are:

Buildings 4% per annum straight line Fixtures, Fittings and Equipment 33% per annum straight line

Debtors

Debtors are recognised at the settlement amount due after any discounts offered.

Creditors and provisions

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

6

Funds

Restricted funds represent donations or grants received for a specific object or invited for a specific object. The funds may only be expended on the specific object for which they were given. Any balance remaining unspent at the end of the year must be carried forward as a balance on that fund.

Unrestricted funds comprise general funds and are available to spend on activities that further any of the purposes of the Church.

Designated funds are unrestricted funds members have decided at their discretion to set aside for a specific purpose.

Income

Income is recognized when the charity has entitlement, sufficient probability of receipt and is able to reliably measure to value of the income. Collections and donations are recognised when received. All income is accounted for gross.

Expenditure

Grants and donations are recognised when committed. All other expenditure is generally recognised when it is incurred and is accounted for gross. Expenditure is classified under the following activity headings:

Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, and conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

Donated vehicles, plant, furniture or buildings are recognised as tangible fixed assets when their fair value exceeds the threshold for capitalisation set by the charity’s accounting policy.

Volunteer Help

The value of any voluntary help received is not included in the accounts.

7

2. INCOME
(a)
Donations and legacies
Donations and gifts
Gift Aid
General grants
(b)
Income from charitable activities
Church Programs
Training
TOTAL INCOME		 2021
Unrestricted
Funds
274,174
33,508
10,000		 2021
Restricted
Funds
2021
Total
Funds
2020
Total
Funds
58,528
332,702
495,025
4,296
37,804
42,185
-
10,000
360
£317,682 £62,824
£380,506 £537,570
6,885
794		 -
6,885
4,016
-
794
916
£7,679 £ -
£7,679
£4,932
£325,361 £62,824
£388,185 £542,502

During the prior financial year the property “Newton Heath Evangelical Church” was donated to the charity, this has been valued and included in the accounts at £100,000

3. EXPENDITURE
(a)
Costs of raising funds
Incurred seeking donations
(b)
Charitable activities
Church Ministry
Support costs
Grants and donations made
Staff costs
Training
Travel and hospitality
Depreciation
TOTAL EXPENDITURE		 2021
Unrestricted
Funds
£7,140		 2021
Restricted
Funds

£403
 2021
Restricted
Funds

£403
 2021
Total
Funds

£7,543
£		 2020
Total
Funds
8,810
49,719
37,322
20,281
181,437
4,865
4,375
4,428		 25,830
75,549
84,203
84
37,406
47,612
-
20,281
52,379
12,391
193,828
249,413
1,715
6,580
4,891
246
4,621
11,832
-
4,428
3,961
£302,427 £40,266
£342,693 £454,291
£309,567 £40,669
£350,236 £463,101

8

4. ANALYSIS OF SUPPORT COSTS

The material categories of support costs are:

g pp
Office costs
Compliance and regulation costs
Consultants
Governance costs
Other		 2021
£
2020
£
22,641
16,918
8,653
15,880
(300)
6,425
660
1,475
5,752
6,914
£37,406
£47,612		 2020
£
16,918
15,880
6,425
1,475
6,914

Support costs have been allocated 100% to charitable activities as the direct costs of raising funds are a trivial value compared to the direct costs of charitable activities. As such the Trustees do not believe that the benefits of greater accuracy through further detailed allocation of support costs would outweigh the costs involved.

5. NET INCOME/(EXPENDITURE) FOR THE YEAR

This is stated after charging:
Amounts paid to independent examiner
Depreciation		 2021
£
2020
£
660
1,475
£4,428
£3,961

6.

ANALYSIS OF NET ASSETS BY FUND
Fixed assets
Current assets
Current liabilities		 2021
Unrestricted
Funds
104,141
281,429
(10,614)		 2021
Unrestricted
Funds
104,141
281,429
(10,614)		 2021
Restricted
Funds
-
115,986
-		 2021
Restricted
Funds
-
115,986
-		 2021
Total
Funds
104,141
397,415
(10,614)
£374,956 £115,986 £490,942
ANALYSIS OF NET ASSETS BY FUND
prior year
Fixed assets
Current assets
Current liabilities		 2020
Unrestricted
Funds
106,301
278,048
(9,413)		 2020
Unrestricted
Funds
106,301
278,048
(9,413)		 2020
Restricted
Funds
-
78,057
-		 2020
Restricted
Funds
-
78,057
-		 2020
Total
Funds
106,301
356,105
(9,413)
£374,936 £78,057 £452,993

9

7. TANGIBLE FIXED ASSETS

7.
TANGIBLE FIXED ASSETS
Cost
At 1st September 2020
Additions
at 31st August 2021
Depreciation
At 1st September 2020
Charge for the year
At 31st August 2021
Net Book Value
At 31st August 2021
At 31st August 2020		 Fixtures, Fittings
and Equipment
£31,200
2,268
£33,468		 Land, and
buildings
Total
£100,000
£131,200
-
2,268
£100,000
£133,468
£24,566
3,628
£28,194		 £333
£24,899
800
4,428
£1,133
£29,327
£5,274 £98,867
£104,141
£6,634 £99,667
£106,301

Transfer of Specified Property

The Freehold Land and Building at Newton Heath Evangelical Church, Culcheth Lane, Manchester, M40 lLS, being comprised in a conveyance of the land registered under Title Number MAN359915 were transferred to City Church Manchester CIO (Registered Charity Number 1157448) during the financial year ended 31st August 2020.

The Trustees of City Church Manchester CIO (Registered Charity Number 1157448) have agreed to include the Land & Buildings in the accounts at cost value as per the conveyance dated the 6th April 2020.

8. DEBTORS

DEBTORS
Trade debtors
Gift aid reclaimed
Prepayments
Other debtors		 2021
2020
-
70
-
1,753
3,152
3,209
-
3,125
£3,152
£8,157

10

9.
CASH AT BANK AND IN HAND
Current account balances
Cash in hand
10.
CREDITORS
Trade creditors
Accruals
Tax and social security
Other creditors
11.
NOTE TO STATEMENT OF CASH FLOWS
Reconciliation of net income/(expenditure) to net cash inflow from operating
activities.
Net income/(expenditure) for the reporting period (as per the statement of
financial activities)
Adjustments for:
Transfer of funds
Fixed asset donation
Depreciation charges
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by (used in) operating activities		 2021
2020
393,645
347,493
618
455
£394,263
£347,948
2021
2020
7,429
6,018
1,880
3,395
896
-
409
-
£10,614
£9,413
2021
2020
37,949
79,401
-
178,134
-
(100,000)
4,428
3,961
5,005
6,794
1,201
780
£48,583
£169,070

All cash and cash equivalents are held as cash in hand.

11

12. ANALYSIS OF STAFF NUMBERS AND COSTS

The average monthly number of employees throughout the year was 9
(2020 - 10).
Salaries and Wages
Social Security Costs
Pension costs
Ex-Gratia payment		 2021
2020
174,826
226,761
4,421
5,499
14,646
14,692
-
2,460
£193,893
£249,412

No employees had employee benefits in excess of £60,000 (2020 - nil).

In the prior year, an ex-gratia payment of £2,370 was made to a former employee whose employment was terminated unexpectedly through no fault of their own.

Volunteers at City Church Manchester give their time in a variety of ways, whether it be practically such as setting up tech or seating for Sunday services; administratively, from planning and running events or advising on Health & Safety; creatively by designing publicity or filming and editing videos; or pastorally, such as leading community groups. There are multiple levels of responsibility given to volunteers and volunteers give a range of their time, from full-time to one hour per month.

13. RELATED PARTY TRANSACTIONS

In the period the charity has paid trustees remuneration and benefits. The total remuneration or any other benefits paid to trustees of the charity were £47,250 (2020 – £41,677).

This is broken down as follows:

Name
Ralph Cunnington
Matthew Waldock		 Salary
16,200
22,400		 Pension
5,664
2,987

The governing document of the charity states: A charity trustee may receive reasonable remuneration for acting as an employee of the CIO under a contract of employment provided that a majority of the charity trustees do not benefit under this provision.

In addition to their remuneration and employers pension contributions, and as part of their overall remuneration package, R Cunnington received £19,200 (£1,600 per month) and M Waldock received £15,600 (£1,300 per month) in respect of lease back agreements on their accommodation. (2020 - £18,850 and £14,650 respectively).

No trustees claimed expenses or had their expenses met by the charity (2020 NIL).

In the period the charity spent £3,500 on staff training from Crosslands, a related party by virtue of having a trustee in common. At the year end no balances were outstanding.

There have been no other related party transactions in the reporting period.

12

CITY CHURCH MANCHESTER CIO

NOTES TO THE ACCOUNTS for the YEAR ENDED 31[st] AUGUST 2021

14. FUNDS HELD AND MOVEMENTS IN THE FUNDS DURING THE YEAR

Restricted funds:
Ministry Trainee
Fund
Building
Creative Directors
Creative Intern
Operations Manager
Designated funds
Newton Heath
AT3
Wildwood
Student Worker
Church Plant
Hardship Fund
Mission & Planting
Training Bursary
Sabbatical Expenses
Incubator
Northern Gospel
Unrestricted funds
Total unrestricted
funds		 Balance
1st
September
2020
Income
Expenditure
Transfers
Balance 31st
August 2021
18,526
9,240
(14,475)
16,750
30,041
47,856
27,978
(177)
-
75,657
11,134
25,171
(26,017)
-
10,288
159
-
-
(159)
-
382
435
-
(817)
-
78,057
62,824
(40,669)
15,774
115,986
171,031
-
(6,342)
(20,000)
144,689
-
720
(729)
9
-
782
-
(42)
-
740
792
28,465
(29,274)
-
(17)
94
8,694
(1,326)
-
7,462
2,097
174
(1,931)
2,500
2,840
8,641
-
(11,757)
9,507
6,391
1,553
-
(4,600)
9,371
6,324
445
-
-
-
445
10,692
1,250
(6,142)
500
6,300
19,281
-
-
9,000
28,281
159,528
286,058
(247,424)
(26,661)
171,201
374,936
325,361
(309,567)
(15,774)
374,956
£452,993
£388,185
(£350,236)
£
-
£490,942

Restricted funds purpose and restriction

Ministry Trainee Fund - restricted to intern expenses Building - restricted to Building Project expenses Creative Directors - restricted to Creative Director expenses Creative Intern - restricted to Creative Intern expenses Operations Manager - restricted to Operations Manager expenses

Designated funds purpose and restriction

Newton Heath – expenses related to facility in Newton Heath Wildwood – expenses related to Wildwood Church Student Worker - for expenses for student work Church Plant - for church plant activities Hardship Fund - for people with need Mission & Planting - for special projects Training Bursary - for training participants Sabbatical Expenses - for Sabbatical expenses Incubator - for Incubator program expenses Northern Gospel - for NGP program expenses

13

CITY CHURCH MANCHESTER CIO

NOTES TO THE ACCOUNTS for the YEAR ENDED 31[st] AUGUST 2021

15. FUNDS HELD AND MOVEMENTS IN THE FUNDS DURING THE YEAR – prior year

Restricted funds:
Ministry Trainee
Fund
Building
Creative Directors
Creative Intern
Operations
Manager
Designated funds
Newton Heath
Wildwood
Student Worker
Church Plant
Hardship Fund
Mission & Planting
Training Bursary
Sabbatical
Expenses
Incubator
Northern Gospel
Unrestricted funds
Total unrestricted
funds		 Balance
1st
September
2019
restated
Income and
transfer of
funds
Expenditure
Transfers Balance 31st
August 2020
13,423
20,632
(16,960)
1,431
18,526
16,831
38,584
(7,559)
-
47,856
1,697
31,437
(22,000)
-
11,134
3,976
9,907
(8,954)
(4,770)
159
4,141
7,045
(10,804)
-
382
40,068
107,605
(66.277)
(3,339)
78,057
-
178,134
(7,103)
-
171,031
-
1,025
(1,934)
1,691
782
1,308
40,635
(41,151)
-
792
42,814
54,065
(96,785)
-
94
-
3,033
(936)
-
2,097
3,234
-
(6,978)
12,385
8,641
2,503
-
(950)
-
1,553
445
-
-
-
445
6,658
10,566
(6,532)
-
10,692
3,497
11,044
(760)
5,500
19,281
94,931
314,529
(233,695)
(16,237)
159,528
155,390
613,031
(396,824)
3,339
374,936
£195,458
£720,636
(£463,101)
£
-
£452,993

During the prior year the Trustees identified that some funds which were previously disclosed as restricted were in fact designated. This has resulted in an increase of £60,459 in designated funds and a decrease of £60,459 in restricted funds at 31st of August 2019.

The following funds are now treated as designated:

Student Worker Church Plant Hardship Fund Mission & Planting Training Bursary Sabbatical Expenses Incubator Northern Gospel

14

CITY CHURCH MANCHESTER CIO

NOTES TO THE ACCOUNTS for the YEAR ENDED 31[st] AUGUST 2021

16. TRANSFER OF ASSETS AND LIABILITIES

During the previous financial year the Trustees of Newton Heath Evangelical Church sought guidance and advice and agreed to transfer the Charity's Assets, Liabilities and Activities to City Church Manchester CIO (Registered Charity Number 1157448). The Trustees of City Church Manchester CIO (Registered Charity Number 1157448) agreed to accept the Assets and Liabilities from Newton Heath Evangelical Church as per the Agreement to Transfer Assets, Liabilities and Activities dated 31st March 2020. All assets and liabilities were transferred to City Church Manchester CIO (Registered Charity Number 1157448) on the 31st March 2020. By agreement of the Trustees dated 31st March 2020, the Trustees agreed to accept all Assets, Liabilities and Activities from the unregistered entity, Newton Heath Evangelical Church. The following Assets and Liabilities were transferred to City Church Manchester CIO (Registered Charity Number 1157448) on the 31st March 2020:

Transfer of Specified Property

i) The Freehold premises at Newton Heath Evangelical Church, Culcheth Lane, Manchester, M40 lLS, being comprised in a conveyance of the land in this title dated 17th February 1921 made between (1) Robert Innes and Herbert Knott (2) Sarah Lent Richard (3) Sarah Jane Crawshaw (4) Harry Crawshaw (5) Thomas Henry Bridge.

The Trustees of City Church Manchester CIO (Registered Charity Number 1157448) have agreed to include the Land & Buildings in the accounts at cost value as per the conveyance dated the 6th April 2020. The following cost value has been applied to the Land & Buildings:

2020 Freehold Land & Buildings at Newton Heath Evangelical Church, 100,000 Culcheth Lane, Manchester, M40 lLS. £100,000 2020 Cash Assets held by Newton Heath Evangelical Church as per Schedule 2 78,134 of the Agreement to Transfer Assets, Labilities and Activities Dated 31st March 2020. £78,134

15

CITY CHURCH MANCHESTER CIO

NOTES TO THE ACCOUNTS for the YEAR ENDED 31[st] AUGUST 2021

16. TRANSFER OF ASSETS AND LIABILITIES (cont)

During the prior financial year the Trustees of Newton Heath Evangelical Church agreed to transfer the Charity's Assets, Liabilities and Activities to City Church Manchester CIO (Registered Charity Number 1157448). The followings assets and liabilities were transferred to City Church Manchester CIO (Registered Charity Number 1157448) on the 31st March 2020.

Fixed Assets
Tangible Assets
Current Assets
Debtors & Prepayments
Cash at Bank and in Hand
Total current assets
Creditors:amounts falling due
within one year
NET CURRENT ASSETS
TOTAL ASSETS less current
liabilities
Long Term Liabilities: Amount
due in more than one year
NET ASSETS
Funds of the Charity
General Funds
Restricted Funds
Total Funds Transferred		 Unrestricted
funds
Restricted
funds
Total
£
£
£
100,000
-
100,000
-
-
-
78,134
-
78,134
78,134
-
78,134
-
-
-
78,134
-
78,134
178,134
-
178,134
-
-
-
178,134
-
178,134
178,134
-
178,134
-
-
-
178,134
-
178,134

16

CITY CHURCH MANCHESTER CIO

(Charitable Incorporated Organisation) Registered number 1157448

Independent examiner’s report to the trustees of City Church Manchester CIO

I report to the charity trustees on my examination of the accounts of City Church Manchester CIO (the Trust) for the year ended 31[st] August 2021

Responsibilities and basis of report

As the charity trustees of the Trust, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act

Independent examiner’s statement

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

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

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

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts & Reports) Regulations 2008 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.

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.

Date: 29[th] June 2022

Adam J. Syddall M.A., A.C.A. Institute of Chartered Accountants in England & Wales P B Syddall & Co. Chartered Accountants Grafton House 81 Chorley Old Road Bolton Lancashire BL1 3AJ