**Charity number: 1160677**
## **City Praise Centre CIO**
**Trustees' report and financial statements**
**for the year ended 31 December 2020**
**City Praise Centre CIO**
## **Contents**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and Advisers**|1|
|**Trustees' report**|2 - 9|
|**Independent auditor's report on the financial statements**|10 - 13|
|**Statement of financial activities**|14|
|**Balance sheet**|15|
|**Statement of cash flows**|16|
|**Notes to the financial statements**|17 - 31|
|The following pages do not form part of the statutory financial statements:||
|**Simplified income & expenditure report**|32|
## **City Praise Centre CIO**
## **Reference and administrative details of the Charity, its Trustees and Advisers for the year ended 31 December 2020**
|**Trustees**|Mrs Tessy Ojo CBE|
|---|---|
||Mr Michael Collins (resigned 8 February 2021)|
||Mr Olayinka Tomori|
||Mrs Ruth Lindsay (appointed 8 February 2021)|
|**Charity registered**
**number**
1160677
**Principal office**
9-11 Lower Higham Road
Chalk
Kent
DA12 2LY
**Key management**
**personnel**
Tom Griffiths, Senior Pastor (resigned 12 April 2020)
Graeme Baldwin, Associate Pastor
**Independent auditor**
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
Montague Place
Quayside
Chatham Maritime
Chatham
Kent
ME4 4QU
**Bankers**
CAF Bank Ltd
25 Kings Hill Avenue
West Malling
Kent
ME19 4JQ||
Page 1
## **City Praise Centre CIO**
## **Trustees' report for the year ended 31 December 2020**
The Trustees present their annual report together with the audited financial statements of the Charity for the year from 1 January 2020 to 31 December 2020.
The Trustees confirm that the annual report and financial statements of the Charity comply with current statutory requirements, the requirements of the Charity’s governing document and the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition effective 1 January 2019).
## **Objectives and activities**
## **a. Policies and objectives**
1. To proclaim the good news of Jesus Christ and to advance the Christian faith through City Praise Centre (the "Church") for the benefit of the public in accordance with the doctrines in particular but not exclusively by:
- providing and maintaining places of worship for members of the Church and the Christian community;
- communicating Christian principles and lifestyle as taught in the Bible;
- training Christians for ministry and service within the Church and wider world; and
- partnering with other churches, faiths and Christian organisations to enlighten others about the Church and its doctrines.
2. The prevention or relief of poverty anywhere in the world by providing or assisting in the provision of practical assistance and support to the poor and disadvantaged.
The primary activities of the Charity include running church services and events for the furtherance of the Christian faith in accordance with the teachings of Jesus Christ. These are carried out firstly for the benefit of the local community and then for other communities around the world as our resources permit.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit. Details of the activities undertaken to fulfil this are explained in the “Achievements and Performance” section of this report.
## **b. Grant-making policies**
City Praise Centre CIO continued its policy of small gift donations as needs arise to both local and worldwide recipients. This year, grants amounted to £17,795 (2019: £20,769) comprising £17,116 (2019: £18,855) of individual grants and £300 (2019: £1,485) of institutional grants and £379 (2019: £429) to various missions.
## **c. Volunteers**
City Praise Centre is blessed to have many volunteers who give many hours of their time in order to make the Church flourish. About 219 members of the congregation offer hours of their time for Sunday and mid-week events, with 30 or more who regularly volunteer on our community projects such as Foodbank, Street Pastors, and the Sanctuary Night Shelter when they have been able to operate during 2020. The Trustees would like to record their thanks for their invaluable support in this most strange and difficult of years.
Page 2
**City Praise Centre CIO**
**Trustees' report (continued) for the year ended 31 December 2020**
## **Achievements and performance**
## **a. Review of activities**
## **Overview**
For CPC, along with the rest of the UK, 2020 has been a year full of the unexpected! This year’s report will naturally reflect the year we have experienced, and the impact of COVID-19 will be seen upon every department. However, the Church continues to achieve its Objects as registered with the Charity Commission and has flourished in some areas even whilst battling the headwinds of the pandemic. Our Objects state that our focus is in proclaiming the good news of Jesus Christ; to advance the Christian faith for the benefit of the public; the prevention or relief of poverty; and to support the poor and disadvantaged.
Operating from the Maltings (including “the Warehouse” where the main services are held) has influenced every aspect of our activities, achievements, and performance in 2020. Below are some of the key achievements in the year within different church departments that reflect the way in which budgets are set and finances monitored:
- Membership: Activities that support those who consider themselves to be members of the Church
- Maturity: Activities that educate
- Ministry: Activities that enable the Church to function
- Mission: Activities focused on the local community and beyond
- Worship: Activities that encourage people to worship God
## **Membership**
The difficulties inherent in quantifying a congregation through digital interaction has made this year exceptionally problematic. Without face-to-face contact, significant ‘in person’ services or meetings in general along with restricted access to church facilities, we have no ability to accurately assess the current membership. Our assessment of viewing figures suggests that the congregation are very much still there; phone calls and direct contact appears to back this up. However, we will only truly know once we emerge from Covid-19. Our finances suggest that those who consider themselves part of the family here have doubled down; regarding those on the fringes we have less evidence of connection.
## **Maturity**
Teaching – Our approach to teaching has had a strategic review. This has resulted in monthly or bimonthly themes that work within then a wider quarterly meta-theme based around our ‘5M’s’. The preaching responsibility is now carried by a preaching team which includes the entire Eldership.
Prayer – Our regular pattern of Sunday morning prayer meetings, irregular evening prayer meetings and also formal LifeRhythm has been dramatically adjusted this year. Our Prayer Team have continued to meet virtually to pray, and we have released a number of Mini Prayer Groups that operate as expressions of prayer online for those who wish to gather. We have also incorporated prayer into our regular service pattern, with positive results. However, having reviewed the use of Life Rhythm, we found that it was no longer in use across the church and as such we have brought it to a close at the end of the church year; instead we now promote alternative options such as Lectio 365.
Life Groups – As with the rest of the UK, our Life Groups made a rapid adjustment to ‘online’ with the first lockdown. This does not always suit groups, yet without other options, group leaders have persevered and found various ways to ensure this vital strand of church life is maintained.
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**City Praise Centre CIO**
## **Trustees' report (continued) for the year ended 31 December 2020**
## **Achievements and performance (continued)**
## **Ministry**
City Kids – During lockdown we moved all our Sunday service provision online. Initially each City Kids age group had their own bespoke lesson provided each week. Screen fatigue caused us to reassess our delivery, and this is now consolidated to two sessions: one for very young children, and one for school age children. We are also providing ‘activity packs’ any children that attend church in person.
Youth – During the first lockdown, we ran bible study groups on Zoom, which our leaders kindly offered to host. It was a great chance to keep in touch with the young people. Once the rules eased, we went back to having our youth meeting in the Warehouse, following COVID19 guidance! It was great to see them and how they also missed being together! The youth especially missed the normal Rock Nations trip which was understandably cancelled.
Sadly, as lockdown 2.0 hit we had to readjust our plans. However, due to better restrictions, we were able to continue the Youth services by broadcasting online. We were unsure how this would go, however, we saw new leaders stepping up and new ideas being birthed! We have had a reasonable number of views on YouTube which was a joyful surprise, and we are hoping to develop this as we move into 2021.
Staff – During 2020 the staff has been gradually adjusting to better fit our purposes. As noted elsewhere Pastor Tom moved away after his final service in late January and leaving in April 2021. Craig Gibson who was in charge of our Life Groups and AV, found an opportunity to step into a lead Pastor role in the summer and left the staff team in August. We also saw the end of the intern year sending both on their way to future ministry opportunities. These substantial changes allowed us to review job responsibilities and adjust staff hours and roles, with David Willing taking on AV responsibility and moving to full time hours.
The church accessed the government furlough scheme for most staff at various times. This resulted in much of the internal work of the church simply ticking over with minimal staffing.
The Trustees would like to acknowledge with immense gratitude, the support, sacrifice, and selflessness of members of staff during a challenging year.
Premises – Some much-needed maintenance on our church campus was carried out in the year. Before Covid hit, a workday was held to clean the campus and paint the Warehouse, bringing the building to life. Taking advantage of the quiet site and loss of many normal activities, a small team including Graeme Baldwin and Paul Bradley worked to fully overhaul the kitchen and toilet facilities in Base Camp. Karen Macenzie transformed the garden space, and a contract was signed for the replacement of damaged windows in Base Camp. These works have supported our strategy of moving our church and community activities into the Maltings and Warehouse, enabling an income stream through the effective hire of Base Camp.
## **Mission**
Peas ‘n’ Pods - We managed to run some sessions from September through to the 3rd lockdown before Christmas as a “non-mobile baby” group. We naturally had vastly reduced numbers but were able to offer much needed support for local new mothers including a few outdoor sessions.
Schools Ministry - We presented a few ‘WHY Easter?’ Sessions to schools in the local area before the first lock down. Schools were disappointed to miss out on the sessions especially our ‘WHY Christmas?’ sessions later in the year. To maintain contact with the schools we normally visit and to make new connections, we delivered chocolate to the schools along with a note stating our promise to pray for the school, pupils and teachers and also a WHY? Brochure. We extended the chocolate giveaway to other groups in the community (GP surgeries, Community heroes and emergency services). The GP surgeries were especially grateful for the thought and promise of prayer.
Christmas Give Away - For the 2020 Christmas Give Away, we followed the previous year's structure and supported two charities that are close to us. Supermarket gift cards of £25 were given to families in need identified by Beams and Make Lunch initiatives to support them in the Christmas season. We raised a total of £1,047.00 for this purpose.
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**City Praise Centre CIO**
## **Trustees' report (continued) for the year ended 31 December 2020**
## **Achievements and performance (continued)**
Make Lunch - During Easter holidays, the Make Lunch team provided 15 ‘Boxes of Hope’ for the families that attend Make Lunch during the school holidays. In the summer, we held 10 sessions of barbecues at the Holy Family Church gardens ensuring compliance with social distancing guidelines. We had an average group size of 13 people from the Kings' Farm neighbourhood attending each session.
In the October half term, it was decided that we would change location from the Holy Family Church to our campus. This gave us the opportunity to start something new within our building and extend this to the local primary schools around us. We got in touch with Chantry Primary School and Westcourt Primary School inviting and welcoming them to join us on Make Lunch. We had our first Make Lunch sessions in October and we had about 20 people, parents, and children. During Christmas we once again made some ‘Boxes of Hope’ alongside a £25 Asda Voucher. We also had a visit from the Health Inspector during one of the sessions and received a maximum 5 Star food hygiene rating.
Due to the demand for our community and church work and events, we needed funding to instal a bigger and better-equipped kitchen. Consequently, we applied for lottery funding and we were granted £20k to enable us to upgrade our kitchen into a full catering one.
Mission India – We have continued to financially support our partners in Carmel Ministries, Eluru, throughout the year with regular and additional gifts. Sadly, no other trips / activities have been possible.
Lunches – The lunches project was birthed during the first Covid-19 lockdown of April. A total of over 5,300 packed lunches were prepared and delivered to homes directly in just the first lockdown. The work behind the scenes has been astounding. We have been building strong links, working closely with Gravesham Borough Council's Sheltered Home team, Vulnerable Young Adults Team, Schools, local councillor’s, Foodbank, Sanctuary, local supermarkets, CPC members, Churches Together, Gravesend Gurdwara, local businesses, and local people, with a heart to serve and support this wonderful ministry.
We have a marvellous team of committed volunteers from CPC and Churches Together as well as individuals with a heart to serve; preparing the packed lunches and delivering to the homes. This work has continued across the year and will remain in place at least until the end of Covid-19. The Lunches give us an opportunity to connect and pray with people. The Church flyers included in the packed lunches allow people to connect with us if they so desire. What started as a vision God gave to Surbs Mahey, who is on staff, has grown into a full-scale community outreach project at the heart of CPC.
## **Worship**
Worship Team - In 2020 the worship team were excited to move forward with new leadership and vision. Unfortunately, as soon as we got started, we entered lockdown and moved swiftly onto online services. With a quick rethink, we produced worship from home across the team. Once restrictions allowed the team to meet for live worship but without the congregation in attendance, it enabled us to slowly build the team back again. The team worked extremely hard over 2020 and never once let the church down in providing Sunday worship.
AV (Audio-Visual) - The AV team saw some key changes to membership during the year. However, the team has adapted by reassigning responsibility for rotas, Planning Centre and preparation for Sunday services. Over the lockdown, we upgraded the sound board and some cameras as the old ones were becoming obsolete. This dramatically improved our live stream experience and enabled more flexibility in room layout.
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, 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 financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
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**City Praise Centre CIO**
## **Trustees' report (continued) for the year ended 31 December 2020**
## **b. Reserves policy**
The Charity had restricted funds of £375,526 (2019: £392,577) comprising principally of an endowment equivalent to the net book value of the Charity’s freehold property of £370,839 (2019: £381,745). The other restricted funds at the Balance sheet date are the With Love Fund of £3,371 (2019: £1,759) and Mission India of £1,316 (2019: £nil).
The net book value of fixed assets other than the endowment are held in the Fixed Assets designated fund; the balance on this fund at 31 December 2020 was £101,344 (2019: £98,974).
Unrestricted general funds which constitute the free reserves held at the balance sheet date amounted to £180,051 (2019: £76,634). It remains our policy to hold between 3 to 6 months of expenditure in reserves; between £120,000 and £240,000. This is to maintain sufficient level of reserves to enable the charity to continue operating; the present level of reserves are currently adequate for this purpose but given the nature of our activities and the levels of uncertainty, especially with the pandemic, the desire is to have reserve levels closer to the 6 month target. The church also envisages that there will be a need to designate funds towards specific projects in the near future. To ensure the church can actively pursue its goals effectively, effort will be put into continue building the level of free reserves over the coming years, so we are able to be in a strong position to embrace future opportunities.
## **c. Investment policy and performance**
The Trustees have the powers to invest the Charity’s funds in any way they deem fit. No separate investments are made and reserves continue to be held in various bank accounts in accordance with the Charity’s attitude towards risk.
## **d. Finances**
IIncome in the year was £498,463 (2019: £459,423), the rise being primarily a result of increased unrestricted donations and funds received through the government furlough grant of £36,661. Expenditure fell to £409,727 (2019: £595,190) as the funds raised to lease the Maltings in 2018 were expended in 2019. In 2020, savings arose from curtailed services due to Covid-19, a reduction in headcount and reduction in hours for some staff, and concerted effort by the leadership to manage costs.
The planned steps to diversify income streams has not been realised due to the pandemic. However, we remain grateful to God for a stable financial position at the end of the year.
## **Structure, governance and management**
## **a. Constitution**
City Praise Centre CIO is a Charitable Incorporated Organisation (CIO) registered with the Charity Commission of England & Wales on 26 February 2016. The CIO is governed by its Constitution.
## **b. Methods of appointment or election of Trustees**
The management of the Charity is the responsibility of the Trustees who are elected and co opted under the terms of the Constitution.
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**City Praise Centre CIO**
**Trustees' report (continued) for the year ended 31 December 2020**
## **Structure, governance and management (continued)**
## **c. Organisational structure and decision-making policies**
The Trustees manage the Charity and meet regularly. As at the end of 2020, nine staff were employed -: the Associate Pastor, Youth Pastor, Children’s Pastor, Pastoral Care Coordinator, Kids and Youth Community Worker, AV Technician, Administrator, Receptionist and the Financial Accountant.
The Trustees delegate the day to day running of the Charity to the key management personnel – The Senior Pastor and the Associate Pastor. Their remuneration is reviewed annually and is benchmarked against the remuneration of staff in charities of similar size and complexity with due consideration given to any other unique responsibilities they are required to fulfil.
As we mentioned in our 2019 report, our Senior Pastor, Tom Griffiths, in April 2020, moved on to pastures new after over 22 years of meritorious service. Tom’s contribution to CPC remains indelible and once again, on behalf of the church, we would like to acknowledge with gratitude, his immense contribution to the work of Christ at CPC and its connections, and to the Gravesham community.
Following Pastor Tom’s departure, the Associate Pastor, Graeme Baldwin, has led the church in accordance with his role and allowing the Trustees time to consider the future leadership options. It is envisaged that these strategic decisions will be made in 2021.
## **d. Relationships with other charities and organisations**
City Praise Centre: This is a dormant charity (registered charity number: 247709) through which the Church carried out its operations and held its assets prior to transferring these to City Praise Centre CIO (registered charity number: 1160677) on 1 January 2016. It is expected that the Charity will be deregistered in due course.
Gravesham Sanctuary CIO: The Charity was registered in January 2019 (registered charity number: 1181817) after starting as an activity of CPC. CPC continues to provide volunteers and various support services to the charity. Sanctuary continued providing shelter for homeless people in the locality with daytime support and overnight shelter for 5 nights a week from October 2019 to April 2020.
Street Pastors: A nationwide charity (No. 1127204) that plays an active part in strengthening community life and working for safer streets. Currently, more than 300 towns and cities around the UK have a Street Pastors team. At CPC around 16 members are trained and go out on a regular basis on the streets of Gravesend.
Trussell Trust (Food Bank): Another national charity we support (No. 1110052). Our members regularly donate large quantities of food and help run the foodbank in Riverside, Gravesend, which is open 4 days a week.
Gravesham Churches Together: A local network of churches that seek to work with each other to benefit the local community. They support some of the activities we run, such as Sanctuary, while we support activities such as Food Bank, which is managed by other churches in the area. Together, we believe we are making a difference to people of all faiths and beliefs living in the area.
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**City Praise Centre CIO**
**Trustees' report (continued) for the year ended 31 December 2020**
## **Structure, governance and management (continued)**
## **e. Financial risk management**
The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity and are satisfied that systems are in place to mitigate our exposure to the major risks.
The major risk faced by the Charity is considered to be reputational which could arise from insufficient internal systems and controls, adverse publicity and non-compliance with legal and statutory regulations. These risks are mitigated through formulation of rigorous internal control systems, regular review and standardisation of procedures and obtaining appropriate professional advice as required.
2020 has provided a ‘stress test’ of our financial structure and highlighted the weakness of our finances being overwhelmingly supported by Sunday offerings. A pivot to encourage standing orders, significant emphasis placed on securing gift aid, careful reduction in cost and receiving furlough contributions from HMRC has resulted in an increase in our reserves of £88,736.
## **Plans for future periods**
2020 has been an exceptionally challenging year, yet such dramatic circumstances cannot fail to present fresh opportunities to re-engage more effectively with those in need in our community, reassess our vision and medium-term plans and look again at our leadership structure and staffing assumptions. We will seek to lock in some of the dramatic savings that have been made during 2020, whilst building a stronger relational base both within the church and local communities. This will make effective use of the facilities we have and our location on the corner of 4 identifiable estates.
The church has embraced the challenge of digital ministry and as a result we plan to continue our provision ‘post COVID-19’ operating a hybrid model of church, physical services, and digital interaction as a consistent norm. Naturally, we will be looking to increasing income through improved giving and completing the delayed process of diversifying our income streams by making use of our property known as Base Camp.
Despite the challenges of 2020, God has been good to us and blessed us! We rely on God’s grace and remain optimistic of our ability to thrive and play a key and increasing role within the local Christian community into the future.
## **COVID-19**
COVID-19 has had some of the most profound impacts upon church life imaginable. The forced closure of services and buildings made various forms of ministry impossible due to prolonged lockdown and restrictions on social interaction. This compelled a fundamental re-examination of our plans, purposes and procedures. Many departments were effectively shut for most of 2020 and this is still ongoing to varying degrees in 2021. Methods of ministry have had to evolve or be laid aside. Our operation of buildings as offices, community spaces and venues for ministry activity have been hugely curtailed and changed quite significantly.
We have fully embraced the COVID secure principles to ensure the lowest possible risk of transmission across our campus and activities. From March 2020, all services went online via YouTube, Life groups migrated to Zoom, and the staff established working from home as the norm with the benefit of flexible IT and Office 365. As the first lockdown lifted, we installed screens, sanitizer stations and one-way systems in line with rigorous risk assessments and gradually started bringing back staff who had been placed into the government furlough scheme. Sadly, the second, and eventually in 2021, the third lockdown saw some of this progress undone and it is not expected we will have all staff back fully until summer 2021.
COVID-19 could have placed considerable pressures on the finances, however the restructuring and cost reduction exercises mentioned earlier in this report, led to 2020 being a turnaround year in our operating finances and has been a blessing, albeit in heavy disguise.
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## **City Praise Centre CIO**
## **Trustees' report (continued) for the year ended 31 December 2020**
## **Statement of Trustees' responsibilities**
The Trustees 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).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the . 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.
## **Disclosure of information to auditor**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the Charity's auditor is unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the Charity's auditor is aware of that information.
## **Auditor**
The auditor, Kreston Reeves LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.
Approved by order of the members of the Board of Trustees on and signed `18 May 2021` on their behalf by:
## `Olayinka Tomori`
## **O Tomori**
Trustee
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**City Praise Centre CIO**
## **Independent auditor's report to the Members of City Praise Centre CIO**
## **Opinion**
We have audited the financial statements of City Praise Centre CIO (the 'Charity') for the year ended 31 December 2020 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.
## In our opinion the financial statements:
- give a true and fair view of the state of the Charity's affairs as at 31 December 2020 and of its income and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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**City Praise Centre CIO**
## **Independent auditor's report to the Members of City Praise Centre CIO (continued)**
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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**City Praise Centre CIO**
## **Independent auditor's report to the Members of City Praise Centre CIO (continued)**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
## _Capability of the audit in detecting irregularities, including fraud_
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.
Based on our understanding of the Charity and sector, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Statement of Recommended Practice. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the audit engagement team included:
- Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and
- Assessment of identified fraud risk factors; and
- Review of cash expenditure to confirm no evidence of personal benefit; and
- Challenging assumptions and judgements made by management in its significant accounting estimates; and
- Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
- Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
- Reading minutes of meetings of those charged with governance; and
- Physical inspection of tangible assets susceptible to fraud or irregularity; and
- Review of significant and unusual transactions; and
- Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Charity's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
Page 12
## **City Praise Centre CIO**
## **Independent auditor's report to the Members of City Praise Centre CIO (continued)**
- Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in my Auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of my Auditor's report. However, future events or conditions may cause the Charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Use of our report**
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Kreston Reeves LLP**
Chartered Accountants Statutory Auditor
Chatham Maritime
Date: `26 May 2021`
Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 13
**City Praise Centre CIO**
## **Statement of financial activities for the year ended 31 December 2020**
|**Note**
**Income from:**
Donations and legacies
3
Other trading activities
4
Investments
5
**Total income**
**Expenditure on:**
Charitable activities
6
Transfer out of Sanctuary
**Total expenditure**
**Net (expenditure)/income**
Transfers between funds
12
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2020**
**£**
**13,280**
**1,715**
**-**
**14,995**
**37,334**
**-**
**37,334**
**(22,339)**
**5,288**
**(17,051)**
**392,577**
**(17,051)**
**375,526**|**Unrestricted**
**funds**
**2020**
**£**
**463,582**
**5,080**
**14,806**
**483,468**
**372,393**
**-**
**372,393**
**111,075**
**(5,288)**
**105,787**
**175,608**
**105,787**
**281,395**|**Total**
**funds**
**2020**
**£**
**476,862**
**6,795**
**14,806**
**498,463**
**409,727**
**-**
**409,727**
**88,736**
**-**
**88,736**
**568,185**
**88,736**
**656,921**|Total
funds
2019
£
429,540
13,817
16,066|
|---|---|---|---|---|
|||||459,423
584,934
10,256|
|||||595,190
(135,767)
-|
|||||(135,767)
703,952
(135,767)|
|||||568,185|
The notes on pages 17 to 31 form part of these financial statements.
Page 14
**City Praise Centre CIO**
## **Balance sheet as at 31 December 2020**
|**Note**
**Fixed assets**
Tangible assets
9
**Current assets**
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one
year
11
**Net current assets**
**Total assets less current liabilities**
**Total net assets**
**Charity funds**
Restricted funds
12
Unrestricted funds
12
**Total funds**|**53,802**
**142,681**
**196,483**
**(11,745)**|**2020**
**£**
**472,183**
**184,738**
**656,921**
**656,921**
**375,526**
**281,395**
**656,921**|47,996
54,684
102,680
(15,214)|2019
£
480,719
87,466|
|---|---|---|---|---|
|||||568,185|
|||||568,185
392,577
175,608|
|||||568,185|
The financial statements were approved and authorised for issue by the Trustees on _________________________________________________ `18 May 2021` and signed on their behalf by:
```
Olayinka Tomori
```
## **O Tomori**
## Trustee
The notes on pages 17 to 31 form part of these financial statements.
Page 15
## **City Praise Centre CIO**
|**Statement of cash flows**
**for the year ended 31 December 2020**
**Cash flows from operating activities**
Net cash used in operating activities (see note 17)
**Cash flows from investing activities**
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year (see note 18)**
The notes on pages 17 to 31 form part of these financial statements|**2020**
**£**
**102,106**
**(14,109)**
**(14,109)**
**87,997**
**54,684**
**142,681**|2019
£
(109,786)
(18,855)|
|---|---|---|
|||**(18,855)**
**(128,641)**
183,325|
|||54,684|
Page 16
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **1. General information**
City Praise Centre CIO is a charitable incorporated organisation and an exempt charity incorporated in England and Wales. The registered office is 7 - 11 Lower Higham Road, Chalk, Kent, DA12 2LY. The principal activities of the Charity are: to proclaim the good news of Jesus Christ; to advance the Christian faith; and to prevent or relieve poverty.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
City Praise Centre CIO meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **2.2 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 and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **2.3 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 receivable can be measured reliably.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 17
**City Praise Centre CIO**
**Notes to the financial statements for the year ended 31 December 2020**
## **2. Accounting policies (continued)**
## **2.4 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.
## **2.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
## **2.6 Going concern**
The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
Whilst the impact of the COVID-19 pandemic has been assessed by the Trustees, so far as is reasonably possible, due to its unprecedented impact on the worldwide economy it is difficult to evaluate with any certainty the potential outcomes on the Charity's future activities. However, taking into consideration the Charity's level of reserves, the Trustees believe that the Charity will be able to continue in operational existence for the foreseeable future.
## **2.7 Government grants**
Government grants are credited to the Statement of financial activities as the related expenditure is incurred.
## **2.8 Operating leases**
Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.
Page 18
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **2. Accounting policies (continued)**
## **2.9 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives on the following bases:
|Freehold property|- 2% straight line|
|---|---|
|Fixtures and fittings|- 25% straight line|
|Property improvements|- 10% straight line|
## **2.10 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.11 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.12 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
## **2.13 Financial instruments**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **2.14 Pensions**
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
Page 19
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **3. Income from donations and legacies**
|Donations and Gift Aid
Grants
Government grants
Total 2019|**Restricted**
**funds**
**2020**
**Unrestricted**
**funds**
**2020**
**£**
**£**
**13,280**
**426,901**
**-**
**20**
**-**
**36,661**
**13,280**
**463,582**
10,170
419,370|**Total**
**funds**
**2020**
**£**
**440,181**
**20**
**36,661**
**476,862**
429,540|Total
funds
2019
£
426,540
3,000
-|
|---|---|---|---|
||||429,540|
|||||
## **4. Income from other trading activities**
|Fundraising
Total 2019|**Restricted**
**funds**
**2020**
**Unrestricted**
**funds**
**2020**
**£**
**£**
**1,715**
**5,080**
1,965
11,852|**Total**
**funds**
**2020**
**£**
**6,795**
13,817|Total
funds
2019
£
13,817|
|---|---|---|---|
|||||
**5. Investment income**
|**Unrestricted**
**funds**
**2020**
**£**
Rental income
**14,806**
Total 2019
16,066|**Total**
**funds**
**2020**
**£**
**14,806**
16,066|Total
funds
2019
£
16,066|
|---|---|---|
||||
Page 20
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **6. Analysis of expenditure by activities**
|Charitable activities
Total 2019
Analysis of direct costs
Church Manse
CPC Campus
Pulpit / Hospitality
Office Expenses
Ministry
Membership
Maturity
Magnification
Occasional Activities
Resource Centre
Office Development
Maltings Rent
Staff Costs
Employer's NI
Employer's Pension
Depreciation
Total 2019|**Direct**
**costs**
**2020**
**£**
**387,702**
561,279|**Mission**
**activities**
**2020**
**Support**
**costs**
**2020**
**£**
**£**
**17,795**
**4,230**
20,769
2,886
**Restricted**
**funds**
**2020**
**Unrestricted**
**funds**
**2020**
**£**
**£**
**-**
**-**
**-**
**19,062**
**-**
**415**
**-**
**8,629**
**-**
**2,825**
**1,263**
**2,431**
**-**
**3,950**
**-**
**20,376**
**-**
**2,921**
**-**
**167**
**-**
**12,765**
**-**
**115,000**
**13,490**
**143,684**
**678**
**10,062**
**675**
**6,664**
**10,906**
**11,739**
**27,012**
**360,690**
51,970
509,309|**Total**
**funds**
**2020**
**£**
**409,727**
584,934
**Total**
**funds**
**2020**
**£**
**-**
**19,062**
**415**
**8,629**
**2,825**
**3,694**
**3,950**
**20,376**
**2,921**
**167**
**12,765**
**115,000**
**157,174**
**10,740**
**7,339**
**22,645**
**387,702**
561,279|Total
funds
2019
£
584,934
Total
funds
2019
£
15,160
21,353
2,445
11,563
4,364
26,838
5,446
21,602
15,605
806
23,684
120,000
266,513
-
-
25,900|
|---|---|---|---|---|
|||||561,279|
Page 21
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **Mission activities**
|Missions activities in conjunction with other
institutions
Mission activities with individuals
Missions activities - other
Total 2019
**Support and governance costs**
Auditors' remuneration
Auditors' remuneration - non-audit
Total 2019|**Restricted**
**funds**
**2020**
**Unrestricted**
**funds**
**2020**
**£**
**£**
**-**
**300**
**9,943**
**7,173**
**379**
**-**
**10,322**
**7,473**
14,499
6,270
**Unrestricted**
**funds**
**2020**
**£**
**3,030**
**1,200**
**4,230**
2,886|**Total**
**funds**
**2020**
**£**
**300**
**17,116**
**379**
**17,795**
20,769
**Total**
**funds**
**2020**
**£**
**3,030**
**1,200**
**4,230**
2,886|Total
funds
2019
£
1,485
18,855
429|
|---|---|---|---|
||||20,769
Total
funds
2019
£
2,886
-|
||||2,886|
Page 22
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **7. Staff costs**
|Wages and salaries
Social security costs
Pension costs|**2020**
**£**
**157,174**
**10,740**
**7,339**
**175,253**|2019
£
237,088
19,047
10,378|
|---|---|---|
||||
|||266,513|
The average number of persons employed by the Charity during the year was as follows:
|**2020**|2019|
|---|---|
|**No.**|No.|
|**10**|12|
No employee received remuneration amounting to more than £60,000 in either year.
The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the Charity was £53,745 (2019 - £106,638).
## **8. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2019 - 1 Trustee received £37,157).
During the year ended 31 December 2020, no Trustee expenses have been incurred (2019 - £NIL).
Page 23
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **9. Tangible fixed assets**
|**Cost or valuation**
At 1 January 2020
Additions
Disposals
At 31 December 2020
**Depreciation**
At 1 January 2020
Charge for the year
On disposals
At 31 December 2020
**Net book value**
At 31 December 2020
At 31 December 2019|**Freehold**
**property**
**£**
**545,293**
**-**
**-**
**545,293**
**163,548**
**10,906**
**-**
**174,454**
**370,839**
381,745|**Long-term**
**leasehold**
**property**
**£**
**71,227**
**-**
**-**
**71,227**
**5,698**
**2,849**
**-**
**8,547**
**62,680**
65,529|**Leasehold**
**property**
**improvements**
**£**
**37,142**
**11,554**
**-**
**48,696**
**9,201**
**4,870**
**-**
**14,071**
**34,625**
27,941|**Fixtures**
**and**
**fittings**
**£**
**159,294**
**2,555**
**(118,122)**
**43,727**
**153,790**
**4,020**
**(118,122)**
**39,688**
**4,039**
5,504|**Total**
**£**
**812,956**
**14,109**
**(118,122)**|
|---|---|---|---|---|---|
||||||**708,943**|
||||||**332,237**
**22,645**
**(118,122)**|
||||||**236,760**|
||||||**472,183**|
||||||480,719|
## **10. Debtors**
|**Due after more than one year**
Other debtors
**Due within one year**
Prepayments and accrued income|**2020**
**£**
**-**
**-**
**53,802**
**53,802**|2019
£
30,000
30,000
17,996
47,996|
|---|---|---|
Page 24
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **11. Creditors: Amounts falling due within one year**
|Other taxation and social security
Other creditors
Accruals and deferred income
**Deferred income**
Deferred income at 1 January 2019
Resources deferred during the year
Amounts released from previous years
**Deferred income at 31 December 2019**|**2020**
**£**
**2,401**
**-**
**9,344**
**11,745**
**2020**
**£**
**3,084**
**221**
**(3,084)**
**221**|2019
£
4,248
477
10,489
15,214
2019
£
620
3,084
(620)
3,084|
|---|---|---|
Page 25
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **12. Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
**Designated funds**
Fixed Assets Fund
The Maltings Fixed Asset Fund
**General funds**
General Funds
**Total Unrestricted funds**
**Restricted funds**
Endowed Property Fund
With Love Fund
Mission India Fund
Word On The Street Fund
**Total of funds**|**Balance at 1**
**January**
**2020**
**£**
**33,445**
**65,529**
**98,974**
**76,634**
**175,608**
**381,745**
**1,759**
**-**
**9,073**
**392,577**
**568,185**|**Income**
**£**
**-**
**-**
**-**
**483,468**
**483,468**
**-**
**1,715**
**11,535**
**1,745**
**14,995**
**498,463**|**Expenditure**
**£**
**(8,890)**
**(2,849)**
**(11,739)**
**(360,654)**
**(372,393)**
**(10,906)**
**(103)**
**(10,219)**
**(16,106)**
**(37,334)**
**(409,727)**|**Transfers**
**in/out**
**£**
**14,109**
**-**
**14,109**
**(19,397)**
**(5,288)**
**-**
**-**
**-**
**5,288**
**5,288**
**-**|**Balance at**
**31**
**December**
**2020**
**£**
**38,664**
**62,680**|
|---|---|---|---|---|---|
||||||**101,344**
**180,051**
**281,395**
**370,839**
**3,371**
**1,316**
**-**|
||||||**375,526**
**656,921**|
Page 26
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **12. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
Fixed Assets Fund
The Maltings Property Fund
The Maltings Fixed Asset Fund
**General funds**
General Funds
**Total Unrestricted funds**
**Restricted funds**
Endowed Property Fund
Sanctuary Fund
With Love Fund
Mission India Fund
Word On The Street Fund
Community Fun Day
**Total of funds**|Balance at
1 January
2019
£
26,735
14,016
68,378
**109,129**
140,863
**249,992**
392,651
30,405
1,695
3,661
25,548
-
**453,960**
703,952|Income
£
-
16,087
-
**16,087**
431,201
**447,288**
-
-
1,965
6,170
1,000
3,000
**12,135**
459,423|Expenditure
£
(12,145)
(30,103)
(2,849)
**(45,097)**
(473,368)
**(518,465)**
(10,906)
(30,405)
(1,901)
(12,598)
(17,475)
(3,440)
**(76,725)**
(595,190)|Transfers
in/out
£
18,855
-
-
18,855
(22,062)
(3,207)
-
-
-
2,767
-
440
3,207
-|Balance at
31
December
2019
£
33,445
-
65,529|
|---|---|---|---|---|---|
||||||98,974
76,634
175,608
381,745
-
1,759
-
9,073
-|
||||||392,577
568,185|
Page 27
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## Designated Funds
Fixed Assets Fund - This fund represents the net book value of the Charity's non-property fixed assets.
The Maltings Property Fund - These are funds which have been earmarked for the development works at the Maltings premises.
The Maltings Fixed Assets Fund - This fund represents the net book value of the Charity's leasehold improvements in respect of the leased property at The Maltings.
## Restricted Funds
Endowed Property Fund - These funds represent the net book value of the Charity's main premises at 9 - 11 Lower Higham Road, which is held as a permanent endowment. Depreciation is charged to this fund in accordance with the method identified within note 2.9 to the financial statements.
Sanctuary Fund - As discussed within the Trustees Report, the Sanctuary fund has now been set up as its own independent organisation. Therefore in this year's financial statements the balance of this fund has been transferred out of City Praise Centre CIO and shall no longer appear going forward.
With Love Fund - These are funds which have been collected in order to assist the poor and disadvantaged in our community.
Mission India Fund - This fund was established to provide financial and missionary support to Christian Ministries in India, especially Carmel Ministries in Eluru, India.
Word on The Street - These are monies given to the Charity upon the Word on The Street charity ceasing to operate in its own right. These funds are to be used to pay the salary and other costs attributable to the Word on The Street activities.
Community Fun Day - A grant of £3,000 was given to the Charity, in 2019, by Gravesham Borough Council (Older Persons Fund) in respect of providing a Fun Day for the local community.
## **13. Summary of funds**
## **Summary of funds - current year**
|Designated funds
General funds
Restricted funds|**Balance at 1**
**January**
**2020**
**£**
**98,974**
**76,634**
**392,577**
**568,185**|**Income**
**£**
**-**
**483,468**
**14,995**
**498,463**|**Expenditure**
**£**
**(11,739)**
**(360,654)**
**(37,334)**
**(409,727)**|**Transfers**
**in/out**
**£**
**14,109**
**(19,397)**
**5,288**
**-**|**Balance at**
**31**
**December**
**2020**
**£**
**101,344**
**180,051**
**375,526**|
|---|---|---|---|---|---|
||||||**656,921**|
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**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **13. Summary of funds (continued)**
## **Summary of funds - prior year**
|Designated funds
General funds
Restricted funds|Balance at
1 January
2019
£
109,129
140,863
453,960
703,952|Income
£
16,087
431,201
12,135
459,423|Expenditure
£
(45,097)
(473,368)
(76,725)
(595,190)|Transfers
in/out
£
18,855
(22,062)
3,207
-|Balance at
31
December
2019
£
98,974
76,634
392,577|
|---|---|---|---|---|---|
||||||568,185|
**14. Analysis of net assets between funds**
**Analysis of net assets between funds - current period**
|Tangible fixed assets
Current assets
Creditors due within one year
**Total**|**Restricted**
**funds**
**2020**
**Unrestricted**
**funds**
**2020**
**£**
**£**
**370,839**
**101,344**
**5,100**
**191,383**
**(413)**
**(11,332)**
**375,526**
**281,395**|**Total**
**funds**
**2020**
**£**
**472,183**
**196,483**
**(11,745)**
**656,921**|
|---|---|---|
## **Analysis of net assets between funds - prior period**
|Tangible fixed assets
Debtors due after more than one year
Current assets
Creditors due within one year
**Total**|Restricted
funds
2019
£
**381,745**
**-**
**11,309**
**(477)**
**392,577**|Unrestricted
funds
2019
£
**98,974**
**30,000**
**61,371**
**(14,737)**
**175,608**|Total
funds
2019
£
480,719
30,000
72,680
(15,214)
568,185|
|---|---|---|---|
Page 29
**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **15. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income/expenditure for the period (as per Statement
Activities)
**Adjustments for:**
Depreciation charges
Decrease/(increase) in debtors
Decrease in creditors
**Net cash provided by/(used in) operating activities**
**16.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**17.**
**Analysis of changes in net debt**
Cash at bank and in hand|of Financial
**At 1**
**January**
**2020**
**£**
**54,684**
**54,684**|**2020**
**£**
**88,736**
**22,645**
**(5,806)**
**(3,469)**
**102,106**
**2020**
**£**
**142,681**
**142,681**
**Cash flows**
**£**
**87,997**
**87,997**|2019
£
(135,767)
25,900
599
(518)
(109,786)
2019
£
54,684
54,684
**At 31**
**December**
**2020**
**£**
**142,681**
**142,681**|
|---|---|---|---|
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**City Praise Centre CIO**
## **Notes to the financial statements for the year ended 31 December 2020**
## **18. Pension commitments**
The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £7,339 (2019 - £10,378). At the Balance sheet date there were contributions outstanding amounting to £945 (2019 - £Nil).
## **19. Operating lease commitments**
At 31 December 2020 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**2020**
**£**
**98,000**
**392,000**
**1,674,167**
**2,164,167**|2019
£
98,000
392,000
1,772,167|
|---|---|---|
||||
|||2,262,167|
## **20. Related party transactions**
During the financial year the Trustees made cumulative donations to the Charity amounting to £5,595 (2019 - £6,045).
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