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2023-06-30-accounts

City to City UK

Report and Accounts Year ended 30 June 2023

1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk

City to City UK

CHARITY INFORMATION

FOR THE YEAR ENDED 30 JUNE 2023

Trustees Peter Nicholas (resigned 31 January 2023)
Neil Malcolm MacMillan
Jonathan Wright
Hendrik Lourens Martinus Du Plessis
Lindsay Hall (appointed 31 January 2023)
Key Staff Neil Powell
Governing Document Constitution dated 27 June 2016
Charity Registration Number 1167859
Principal Address Inspire St James Church
Clerkenwell Close
Farringdon
London
EC1R 0EA
Independent Examiner Sarah Crispin ACA
Stewardship
1 Lamb's Passage
London
EC1Y 8AB
Bankers Lloyds Bank
1 11 Ink Rooms
28 Easton Street
London
WC1X 0BE
Contents Page
Charity Information 1
Trustees' Annual Report 2-4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Accounts 8-14
Detailed Statement of Financial Activities with Comparatives 15

Page 1

City to City UK TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2023

The trustees have pleasure in submitting the Report and Accounts for the period.

Objects of the charity

The charity is a charitable incorporated organisation and is governed by its Constitution. The objects of the charity, as set out in the governing document are:

a) the advancement of the Christian faith in accordance with the statement of faith exclusively by facilitating the charitable activities of the fellowship; and

b) such other charitable objects as shall, in the opinion of the charity trustees further the work of the fellowship

Summary of the charity's main activities and achievements

To further the above objects and vision, the charity's main activities and achievements were as follows:

Our main activities have focused on training church leaders, connecting leaders from different denominations and networks to one another, and exploring opportunities for collaboration between churches and agencies across London and other UK cities. We have also been able to develop partnerships with our sister organisations around Europe and Africa in particular for peer to peer learning.

We have completed a 2-year on-line training programme called Incubator for leaders of new churches in London and Birmingham from different denominations. We also ran an on-line discussion group based on Tim Keller’s book Center Church attended by leaders from around the UK. Furthermore, we were also joined by leaders from Africa and North and South America. A one-year training programme entitled Gospel in the City for church leaders from the diaspora church in London was completed, at which representatives of the African, Asian and Latino churches in London explored leadership and theological themes of particular importance to them. Out of this work, we have been able to establish a team of leaders from diaspora churches in London to plan further collaborative projects for the future.

Two gospel coaching courses were run - the aim of which is to generate a pool of 50 coaches from among established church leaders who can serve the next generation of leaders. Our City Lab occasional roundtable events saw a wide-range of leaders exploring issues of relating the church to culture and contextualising ministry for urban centres

Twelve more senior London leaders with an interest and desire to pioneer new projects took part in a programme called The Apostolic Cohort, which ran both in person and on-line across 2022. City to City UK leaders from London, Birmingham and Edinburgh took part in monthly training sessions for building citywide collaborative church networks provided by City to City Europe.

In planning the activities the Trustees have applied the guidance on public benefit issued by the Charity Commission.

Structure, Governance and Management

Responsibility for setting policy and for determining the parameters within which the charity should operate rests with the trustees who meet regularly to monitor the activities of the charity. Responsibility for the day to day operation of the charity has been delegated to a senior management team led by the executive director New trustees are recruited and appointed by the existing trustees, by a majority vote.

Page 2

City to City UK TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2023

Financial review

During the 12 months to June 2023, total income was £434,472, with total expenditure total expenditure £446,056, resulting in a deficit of £11,584. The increased expenditure is a result of the London Project's activities significantly taking off, compared to the prior period when mainly initial and preparatory work had been undertaken. At the period-end, the charity held reserves of £52,307 and while this is largely held in restricted reserves, this represents the main activity and cost base for the charity and is thus considered to be appropriate.

Reserves policy

The trustees have agreed a minimum reserve policy that takes into account fixed commitments of various kinds, so as to allow the charity to pursue other sources of funding in case of a sudden and catastrophic reduction in funding, or to wind up the charity in an orderly manner. The calculated minimum requirement at 30 June 2022 was £55,000. The trustees are comfortable that whilst the actual reserves are slightly below this figure, the charity has sufficient reseves to enable it to comply substantially with its reserve policy.

Key risks and uncertainties

The charity is exposed to various risks - be they operational, financial or reputational. The trustees review the charity's activities regularly to identify significant risks and, where possible, they take appropriate measures to mitigate those risks.

Responsibilities of trustees under charity law

The trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

  1. select suitable accounting policies and apply them consistently;

  2. observe the methods and principles in the Charities SORP;

  3. make judgements and estimates that are reasonable and prudent;

  4. state whether the applicable accounting standards have been followed, subject to any material

departures disclosed and explained in the financial statements; and

  1. prepare the financial statements on a going concern basis unless it is inappropriate to presume

that the charity will continue in operation.

Page 3

City to City UK

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 30 JUNE 2023

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. 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.

Approval

This report was approved by the trustees and signed on their behalf by:

Jonathan Wright Jonathan Wright (Apr 30, 2024 17:56 GMT+1) _______ Jonathan Wright Apr 30, 2024 Date: _______

Page 4

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF

City to City UK ('the Charity')

I report to the charity trustees on my examination of the accounts of the Charity for the year ended 30 June 2023 on pages 6 to 15 following, which have been prepared on the basis of the accounting policies set out on pages 8 to 9.

Responsibilities and basis of report

As the charity’s trustees of the Charitable Incorporated Organisation 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 Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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

  1. accounting records were not kept in respect of the Charity 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 and 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.

Sarah Crispin

Sarah Crispin (Apr 30, 2024 18:00 GMT+1)

Sarah Crispin ACA Institute of Chartered Accountants in England and Wales

Stewardship 1 Lamb's Passage London EC1Y 8AB

Date: Apr 30, 2024

Page 5

City to City UK

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 30 JUNE 2023

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Total income and endowments
EXPENDITURE ON:
Charitable activities
4
Raising funds
5
Total expenditure
Net gains/(losses) on investments
Net income/(expenditure)
Transfers between funds
12
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
12
Unrestricted
Funds
£
-
-
-
-
-
-
-
-
-
758
758
Restricted
Funds
£
434,472
434,472
423,484
22,572
446,056
-
(11,584)
-
(11,584)
63,133
51,549
Total
Funds
2023
£
434,472
434,472
423,484
22,572
446,056
-
(11,584)
-
(11,584)
63,891
52,307
Total
Funds
For the 18
month
period
ended 30
June 2022
£
443,937
443,937
476,230
3,175
479,406
-
(35,468)
-
(35,468)
99,359
63,890

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing operations.

The notes on pages 8-14 form part of these accounts.

Page 6

City to City UK

BALANCE SHEET

AS AT 30 JUNE 2023

Note
CURRENT ASSETS
Debtors
8
Cash at bank and in hand
9
CREDITORS: Amounts falling
due within one year
10
Net current assets / (liabilities)
Total assets less current liabilities
TOTAL NET ASSETS
FUND BALANCES
12
Unrestricted Funds
General funds
Restricted Funds
Unrestricted
Funds
£
-
758
758
-
758
758
758
758
758
-
758
Restricted
Funds
£
12,575
62,702
75,277
(23,728)
51,549
51,549
51,549
-
-
51,549
51,549
Total
Funds
30-Jun
2023
£
12,575
63,460
76,035
(23,728)
52,307
52,307
52,307
758
758
51,549
52,307
Total
Funds
30-Jun
2022
£
6,275
76,765
83,040
(19,149)
63,890
63,890
63,890
758
758
63,133
63,890

The financial statements were approved by the Board of Trustees and were signed on its behalf by:

Jonathan Wright Jonathan Wright (Apr 30, 2024 17:56 GMT+1) --------------------------------------Jonathan Wright Apr 30, 2024 Date: _______

Charity number: 1167859

The notes on pages 8-14 form part of these accounts.

Page 7

City to City UK

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2023

1 Statutory Information

The charity is a charitable incorporated organisation registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.

2 Accounting Policies

These financial statements are prepared on a going concern basis, under the historical cost convention.

These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.

The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.

In the prior year, the charity has changed its financial year end from 31 December to 30 June. The figures in these accounts are for the year ended 30 June 2023 while the comparatives are for the 18 month period ended 30 June 2022.

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

a) Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

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

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

c) Expenditure

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

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

Expenditure on raising funds comprises the costs incurred on a fundraising trip to the US to raise support from Presbyterian churches.

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

Page 8

City to City UK

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2023

2 Accounting Policies (cont.)

d) Fund accounting

e) Tangible fixed assets Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £2,000 and the item is expected to benefit the charity over more than one accounting period. The charity currently has no fixed assets.

f) Pension scheme arrangements The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.

g) Taxation

The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

i) Exemption from preparing a cashflow statement

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

3 Donations

Donations of cash and similar
Other grants receivable
4
Charitable expenditure
a
Costs incurred directly on specific activities
Staff costs including travel & subsistence (note 6)
Contract & seconded staff costs
Networking activities
Theological vision
Training & coaching
City to City activities (excluding staff costs)
Communication
Grants payable (note 4c)
2023
£
62,400
372,072
434,472
2023
£
276,267
56,151
48,329
2,154
905
140
234
384,180
2,500
386,680
For the 18
month
period ended
30 June 2022
£
15,594
428,343
443,937
For the 18
month
period ended
30 June 2022
£
303,949
73,279
21,689
2,070
13,268
1,172
15,981
431,408
5,000
436,408

Page 9

City to City UK

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2023

4 Charitable expenditure (cont.)

b

Costs incurred on support & administration
Governance costs
Independent examiner's fee
Other
Office running costs
Administration
Insurance
Total expenditure
2023
£
3,540
817
4,357
28,044
3,424
980
36,804
423,484
For the 18
month
period ended
30 June 2022
£
3,480
748
4,228
28,608
6,062
924
39,822
476,230

The fee payable to the independent examiner for preparing and examining the accounts was £3,480 (2022: £3,480); in addition the charity paid £817 (2022: £748) to Stewardship for payroll bureau.

c Grants payable

Grants for UK and overseas mission
The comparatives for the previous year are as follows:
Grants for UK and overseas mission
The charity's principal grants to institutions comprised:
Reality Church London
The Message of the Cross Evangelical Church
Cost of raising funds
Fundraising costs
Institutions
£
2,500
2,500
Institutions
£
5,000
5,000
Individuals
£
-
-
Individuals
£
-
-
2023
£
2,500
-
2,500
2023
£
22,572
22,572
2023
£
2,500
2,500
For the 18
month
period
ended 30
June 2022
£
5,000
5,000
For the 18
month
period ended
30 June 2022
£
-
5,000
5,000
For the 18
month
period ended
30 June 2022
£
3,175
3,175

5 Cost of raising funds

Page 10

City to City UK

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2023

6 Analysis of staff costs, the cost of key management personnel and trustee remuneration

The average monthly number of employees during the period was 6 (2022: 4).

One member of staff received salaries at a rate of between £80,000 and £90,000 per annum.

The charity's key management comprise the trustees and the key staff named on the Charity Information page. During the year, key management received employment benefits totalling £85,358.

The following amounts were payable in the previous year:

Other
Employer
Wages &
employment
pension
salaries
benefits
contributions
Trustees:
Neil Powell (until resignation Dec21)
58,325
-
20,942
Other members of key management
Neil Powell (from Jan-June 22)
30,868
-
9,395
£
79,267
-
40,263
For the 18
month
period ended
30 June 2022
119,530

During the previous 18 month period, Neil Powell, who was a trustee, was employed by the charity as Executive Director of the London Project. These payments are shown above and were in respect of his employment as Executive Director and not for serving as a trustee. Payments to trustees are not permitted by the charity's governing document and on being advised of this breach Neil Powell immediately resigned as a trustee on 20 December 2021.

7 Acting as agent

On occasion the charity receives money on behalf of other charities, which it banks and then pays out to these charities. This income is received as agent for these other charities and the income, and the related payments, are excluded from the Statement of Financial Activities. Any income received as agent that has not been paid by the year end is recognised as creditors.

During previous years the charity acted as agent for 2020 Birmingham and, in that capacity: a) at the year end the charity owed £7,632 (2022: £7,632) to 2020 Birmingham

8 Debtors

8
Debtors
Falling due within one year:
Other debtors
Prepayments and accrued income
9
Cash at bank and in hand
Cash at bank with immediate access
2023
£
6,275
6,300
12,575
2023
£
63,460
63,460
2022
£
6,275
-
6,275
2022
£
76,765
76,765

Page 11

City to City UK

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2023

10 Creditors: liabilities falling due within one year

itors: liabilities falling due within one year
Pension creditor
Accruals
Other creditors
2023
£
1,056
15,040
7,632
23,728
2022
£
8,037
3,480
7,632
19,149

11 Pension commitments

During the year employer’s pension contributions totalling £18,571 (2022: £42,662) were payable to defined contribution personal pension schemes. Pension contributions owing at the balance sheet date were £1,056 (2022: £8,037).

12 Funds

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

General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
London Project
Faith & Work Fund
City to City Europe fund
City to City Global fund
Church Planting Fund
Aggregate of funds
Opening
balance
2023
£
758
758
62,122
-
-
-
1,011
63,133
63,890
Incoming
resources
2023
£
-
-
385,675
11,782
11,348
23,802
1,865
434,472
434,472
Outgoing
resources
2023
£
-
-
(405,595)
(2,817)
(14,171)
(23,473)
-
(446,056)
(446,056)
Transfers
in the year
2023
£
-
-
(2,823)
-
2,823
-
-
-
Gains and
losses
2023
£
-
-
-
-
-
-
-
Closing
balance
2023
£
758
758
39,379
8,964
-
329
2,876
51,549
52,307

The transfers referred to above were made for the following reasons:

a) From the London Project to City to City Europe fund to cover salary costs not fully covered by the CtC Europe grant. This transfer was made with the permission of the London Project donor.

Analysis of net assets by fund

The assets and liabilities of the various funds were as follows:

Debtors
Cash at bank and in hand
Creditors falling due within one year
General
Designated
funds
funds
£
£
-
-
758
-
-
-
758
-
Unrestricted Funds
Restricted
funds
£
12,575
62,702
(23,728)
51,549
2023
£
12,575
63,460
(23,728)
General
funds
£
-
758
-
758
52,307

Page 12

City to City UK

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2023

12 Funds (cont.)

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

General Unrestricted Funds
Total Unrestricted Funds
Restricted Funds
London Project
Church Planting Fund
Aggregate of funds
Opening
balance
For the 18
month
period
ended 30
June 2022
£
1,930
1,930
97,429
-
97,429
99,359
Incoming
resources
For the 18
month
period
ended 30
June 2022
£
16,670
16,670
421,257
6,011
427,268
443,937
Outgoing
resources
For the 18
month
period
ended 30
June 2022
£
(17,842)
(17,842)
(456,564)
(5,000)
(461,564)
(479,406)
Transfers
in the year
For the 18
month
period
ended 30
June 2022
£
-
-
-
-
-
-
Gains and
losses
For the 18
month
period
ended 30
June 2022
£
-
-
-
-
-
-
Closing
balance
For the 18
month
period ended
30 June 2022
£
758
758
62,122
1,011
63,133
63,890

Analysis of net assets by fund

In the previous year, the assets and liabilities of the various funds were as follows:

Unrestricted Funds

Debtors
Cash at bank and in hand
Creditors falling due within one year
General
funds
£
-
758
-
758
Designated
funds
£
-
-
-
-
Restricted
funds
£
6,275
76,007
(19,149)
63,133
For the 18
month
period ended
30 June 2022
£
6,275
76,765
(19,149)
63,890

Restricted Funds

The London Project fund is for "The London Project" initiative which seeks to catalyse gospel initiatives in the city. The City to City Europe & City to City Global funds are to cover the salary costs of the CEO's time spent working on these areas of activity.

The Faith & Work fund is to provide coaching, training resources, and consulting as desired for Faith & Work Catalyst. The Church Planting Fund is for the support of church planting initiatives.

13 Operating lease commitments

The charity has an operating lease for its office building. The minimum amount payable (until the next break clause and ignoring the potential effect of future rent reviews) in respect of this lease is as follows:

Within one year
Payments falling due:
2023
£
10,458
10,458
For the 18
month
period ended
30 June 2022
£
9,960
9,960

During the year the charity was charged £20,792 (2022: £17,456) for its operating lease.

Page 13

City to City UK

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2023

14 Transactions with related parties

During the year the charity also made the following payments to, or for, related parties:

Page 14

City to City UK

DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES

FOR THE YEAR ENDED 30 JUNE 2023

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Total income and endowments
EXPENDITURE ON:
Charitable activities:
4
Raising funds
5
Total Expenditure
Net gains/(losses) on investments
Net income/(expenditure)
Transfers between funds
12
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
12
General
2023
£
-
-
-
-
-
-
-
-
-
758
758
Unrestricted
Restricted
2023
£
434,472
434,472
423,484
22,572
446,056
(11,584)
-
(11,584)
63,133
51,549
Total
2023
£
434,472
434,472
423,484
22,572
446,056
-
(11,584)
-
(11,584)
63,891
52,307
General
For the 18
month period
ended 30
June 2022
£
16,670
16,670
17,842
-
17,842
-
(1,172)
-
(1,172)
1,930
758
Unrestricted
Restricted
For the 18
month period
ended 30 June
2022
£
427,268
427,268
458,388
3,175
461,564
-
(34,296)
-
(34,296)
97,429
63,133
Total
For the 18
month period
ended 30 June
2022
£
443,937
443,937
476,230
3,175
479,406
-
(35,468)
-
(35,468)
99,359
63,891

Page 15