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2021-03-31-accounts

COVENANT CHURCH

FINANCIAL STATEMENTS AND ANNUAL

REPORT

FOR THE YEAR ENDED 31 MARCH 2021

CHARITY NUMBER: 1169459

COMPANY NUMBER: 09692379

COVENANT CHURCH

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

CONTENTS
 PAGE
TRUSTEES ANNUAL REPORT
 1
INDEPENDENT EXAMINER'S REPORT
 8
INCOME AND EXPENDITURE ACCOUNT
 10
BALANCE SHEET
 11
NOTES TO THE FINANCIAL STATEMENTS 13

COVENANT CHURCH

TRUSTEES ANNUAL REPORT

YEAR ENDED 31 MARCH 2021

The trustees, who are also directors for the purposes of company law, have pleasure in presenting their report and the unaudited financial statements of the charity for the year ended 31 March 2019.

REFERENCE AND ADMINISTRATIVE DETAILS

REGISTERED CHARITY NAME

COVENANT CHURCH

CHARITY REGISTRATION NUMBER 1169459 COMPANY NUMBER: 0969237

PRINCIPAL/REGISTERED OFFICE

THE DESTINY CENTRE KENT ROAD PORTSWOOD SOUTHAMPTON HAMPSHIRE SO16 2LJ

THE TRUSTEES

The trustees who served the church during the period were as follows:

PASTORS & MINISTERS-IN-CHARGE

BANKERS

HSBC PLC

55 ABOVE BAR STREET SOUTHAMPTON SO14 7DS

ACCOUNTANT

JOSBEN ACCOUNTANCY LIMITED

(CHARTERED CERTIFIED ACCOUNTANTS) 30 BONCHURCH CLOSE,

SOUTHAMPTON.

SO16 3EH

COVENANT CHURCH

TRUSTEES ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2021

STATUS

The Charity is constituted and registered with the Charity Commission (charity number 1169459) and the Companies House (number 0969237).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The trustees in conjunction make all decisions with the Senior Pastor who chairs all meetings. The charity has different functional areas, which are headed by the trustees or a member of the church according to the required expertise.

RELATIONSHIPS

The charity is associated with other reputable and recognised organisations nationally and internationally. From time to time, trustees or the ministers have been delegated to represent the church at meetings and conferences. The church has given financial and spiritual support to such organisations in the pursuit of our objectives and realisation of our visions.

OBJECTIVES AND ACTIVITIES

Covenant Church aims to enrich the spiritual, educational, social, physical and cultural needs of its members and the wider community through the advancement of the Christian faith by teaching Christian truth and such other means as the trustees shall in their discretion deem fit. The specific objectives of which the ministry is established are:

1. Evangelism and Christian Education

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COVENANT CHURCH

TRUSTEES ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2021

2. Community Care and Inter Church Relationships

ACHIEVEMENTS AND PERFORMANCE

This year marked the 15[th] anniversary of Covenant Church and we are grateful to God for each of the years that we have been a channel to bring the Gospel to our City and beyond. We hold great expectations for the future, even as we thank God for all He has done over the past years.

The past year has seen the whole world grapple with the effects of the COVID-19 pandemic and as a church, we aimed to ensure the safety of our members, their families, and the community at large.

We achieved this by maintaining all COVID-19 protocols as instructed by the UK Government and our internal risk processes. We are grateful to God that throughout the pandemic and various lockdowns, we have not had any deaths among our church members and their immediate families, to God be the glory.

CONFERENCES

The lockdown began in March 2020 and as a result all in-person meetings were suspended. We thank God for our online media ministry through which we were able to broadcast services to the world.

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COVENANT CHURCH

TRUSTEES ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2021

We held our Easter Conference in May 2020 as a combination of services on Zoom and YouTube as we streamed from The Destiny Centre.

Reverend Dr John Paul Oddoye was the Main Speaker, and his messages brought much hope to us as we adjusted to the new restrictions the lockdown presented.

We held our yearly Spiritual Emphasis Month in June as we fasted and prayed, seeking God’s intervention not only for ourselves but the world at large as the death toll and effects of the pandemic became more pronounced in nations across the world.

As the lockdown was lifted and services resumed in July, we ensured to observe all COVID protocols to keep congregants safe and we held our Cross Over Night service on 31 December. This was a meeting that brought great joy to us after the year we had experienced. We were grateful to see the beginning of a New Year and God gave us His Word through Reverend Dr John Paul Oddoye that 2021 was the Year of Expansion Reload.

January 2021 began with a time of Prayer and Fasting as we committed the year into God’s hands. We were grateful to God for His faithfulness in 2020 and carried the assurance that He would take us through 2021 under His care and protection. Not only the Church, but the UK and the world at large as we sought to chart a way forward.

In March 2021, our Youth ministry, Relentless Generation, hosted the Youth Conference themed Relentless Hope.

It was a timely conference as it gave hope to young people who had their academic lives upended by remote learning and other changes that disrupted their progress.

The two-day conference was a great success with many young people taking part in music, dance, and poetry.

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COVENANT CHURCH

TRUSTEES ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2021

COMMUNITY EVENTS

As part of our service to the community through the pandemic, we joined forces with other churches to support vulnerable families and individuals who were having difficulties coping with lockdown restrictions and the possibility of catching COVID. Many church members volunteered to call, do shopping, give financial aid, and pray with those who needed help. We received many testimonies of how this support system helped the community and were grateful to be a part of it.

We also supported church members who were isolating by shopping for them and calling to make sure they were managing to recover well. This support was extended to others who had financial difficulties through job losses.

We continue to extend support to our church community even as we see the restrictions lift.

SHARING THE GOSPEL

While much of the pandemic meant there were restrictions to movement, we endeavoured to reach out to our world through other means and share the Good News of the Gospel. This included inviting people to watch our live broadcast from the comfort of their homes. In a time when the world needed hope and light, we are grateful to God that we could still share the Gospel via digital platforms.

Through our livestream platform, we have managed to reach a global audience with the Good News of Jesus Christ.

This platform allows people to join us live for each service and be a part of the great work that God is doing in Covenant Church. Increasingly, this platform has become a key aspect of our commitment to sharing the Gospel, reaching people who are not able to be with us at The Destiny Centre.

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COVENANT CHURCH

TRUSTEES ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2021

As part of sharing the Good News, Reverend Dr John Paul Oddoye began the Faith Express series which was geared towards boosting faith and trust in God particularly as the world was faced with much fear and uncertainty. This was complemented by the Love, Life and Faith series by Reverend Dr Abigail Paul-Oddoye, and both were a great blessing to many people the world over.

Relentless Generation also started a podcast titled, This Generation’s Conversation, geared towards the youth and addressing pertinent issues that they were facing during the lockdown. Overall, these various outlets were well received as evidenced by the testimonies and we trust God that He will continue to help us to reach more people with His love and grace.

OTHER ACTIVITIES

As part of our expansion mandate, we began holding two services on Sundays. This helped ease the number of people in The Destiny Centre on Sundays, allowing us to observe protocols much easier. We thank God for this as it marked the fulfilment of a long-held promise that God would increase us, and this would lead to multiple services on Sunday.

RESPONSIBILITIES OF THE TRUSTEES

The trustees (who are also the directors of Covenant Church for the purposes of company law) 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).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

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COVENANT CHURCH

TRUSTEES ANNUAL REPORT (continued)

YEAR ENDED 31 MARCH 2021

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

APPROVAL

This report was approved by the board of trustees on the30/09/21 and signed on their behalf by:

30/09/2021

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COVENANT CHURCH

INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS OF

COVENANT CHURCH

YEAR ENDED 31 MARCH 2021

I report on the accounts of the charity for the year ended 31 March 2021 set out on page 10 to 17.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND INDEPENDENT EXAMINER

The charity's trustees (who are also the directors of Covenant Church for the purposes of company law) are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year (under section 43(2) of the Charities Act 1993 (the 1993 Act), as amended by section 28 of the Charities Act 2006) and that an independent examination is needed.

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

Basis of Independent Examiner's Statement

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on whether the accounts present a 'true and fair view'.

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COVENANT CHURCH

INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS OF

COVENANT CHURCH

YEAR ENDED 31 MARCH 2021

Independent Examiner's Statement

In connection with my examination, no matter has come to my attention:

(1) Which gives me reasonable cause to believe that in any material respect the trustees have not met the requirements to ensure that:

(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

ERIC GYIMAH MBA, FCCA

20/10/2021.

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COVENANT CHURCH

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 31 MARCH 2021

INCOMING RESOURCES NOTES UNRESTRICTED RESTRICTED 2021 2020
FUNDS FUNDS £ £
Incoming resources from Donors 2 181,900 - 181,900
157,491
Other Voluntary Income 3 36,892 - 36,892 34,694
TOTAL INCOMING RESOURCES 218,792 - 218,792
192,186
RESOURCES EXPENDED
Charitable activities 4 15,666 - 15,666 42,913
Support costs 5 168,287 - 168,287 128,754
Governance costs 6 1,940 - 1,940 27,631
TOTAL RESOURCES EXPENDED 185,893 - 185,893 199,297
NET INCOME (OUTGOING) FOR THE
YEAR 7 32,898 - 32,898 (7,112)
RECONCILIATION (NET MOVEMENT) OF
FUNDS
Total funds brought forward
01/04/2020 21,570 6,770 28,340 35,452
Restricted Funds Transfer - - - -
TOTAL FUNDS CARRIED FORWARD 54,468 6,770 61,238 28,340

The notes on pages 13 to 17 form part of these financial statements.

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COVENANT CHURCH

BALANCE SHEET

31 MARCH 2021

FIXED ASSETS
Tangible assets
8
CURRENT ASSETS
Cash at bank and in hand
CREDITORS: Amounts falling due within one year
9
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: Amounts falling due After one year
10
NET ASSETS
ACCUMULATED FUNDS (RESERVES)
TOTAL FUNDS
11		 2021
2020
£
£
81,349
103,751
21,305
18,242
666
652
20,639
17,590
101,988
121,340
40,750
93,000
61,238
28,340
61,238
28,340

The trustees are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Act.

The notes on pages 13 to 17 form part of these financial statements.

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COVENANT CHURCH

BALANCE SHEET

31 MARCH 2021

The trustees acknowledge their responsibilities for:

(ii) preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of sections 394 and 395, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the company.

These financial statements were approved and signed by the member of the committee on 30/09/2021

30/09/2021

The notes on pages 13 to 17 form part of these financial statements.

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COVENANT CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Basis of accounting

The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom accounting standards, the Statement of Recommended Practice "Accounting and Reporting by Charities" issued in March 2005 (SORP 2005) and the Companies Act 2006.

Cash flow statement

The trustees have taken advantage of the exemption in Financial Reporting Standard No 1 (revised) from including a cash flow statement in the financial statements on the grounds that the company is small.

Fixed assets

All fixed assets are initially recorded at cost.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Musical Equipment - 25% straight line method Furniture, Fixtures & Fittings - 10% straight line method Church Equipment - 20% straight line method Computer & Accessories - 20% straight line method

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COVENANT CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

2. INCOME FROM DONORS
Offering
Tithe
Building Fund - Restricted
3. OTHER VOLUNTARY INCOME
Gift Aid
Other Income
4 COSTS OF CHARITABLE ACTIVITIES
Donations & Honorarium
Church Outreach
Travel and accommodation
Training costs
Community & Welfare		 2021
£
62,393
119,506
-		 2020
£
58,862
98,630
-
181,900 157,491
2021
£
36,892
-		 2020
£

34,694
-
36,892
34,694
2021
£
4,068
1,501
2,731
2,086

5,280		 2020
£
4,920
2,840
16,617
2,102
16,434
15,666 42,913

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COVENANT CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

5. SUPPORT COSTS
Salaries & Wages
Rent
Light and heat
Repairs and maintenance
Vehicle & Transport expenses
Telephone and postage
Media expenses
Stationery and printing
Premises expenses
Equipment hire
Depreciation
Other Church Running Expense
6. GOVERNANCE COSTS
Interest payable
Other professional fees
7. NET INCOMING RESOURCES FOR THE YEAR
This is stated after charging:
Depreciation of tangible fixed assets		 2021
£
68,532
43,500
2,392
4,238
2,216
2,475
441
313
7,596
6,922
24,403
5,260		 2020
£
26,012
43,083
3,311
8,215
805
2,418
-
930
2,855
7,879
24,003
9,243
168,287 128,754
2021
£
30
1,910		 2020
£
150
27,481
1,940 27,631
2021
£
24,403		 2020
£

24,003

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COVENANT CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

8. TANGIBLE FIXED ASSETS

COST
At 1 Apr 2020
Disposals
Additions
At 31 Mar 2021
DEPRECIATION
At 1 Apr 2020
Disposal
Charge for the year
At 31 Mar 2021		 MUSICAL
FURN &
CHURCH COMPUTER
EQUIP
FITTINGS
EQUIP
& ACCESS
TOTAL
£
£
£
£
£
42,423
96,018
18,977
-
157,417
-
-
-
-
-
-
-
2,000
2,000
42,423
96,018
18,977
2,000
159,417
25,829
23,504
4,333
-
53,666
-
-
-
-
-
10,606
9,602
3,795
400
24,403
36,435
33,106
8,129
400
78,069

NET BOOK VALUE

At 31 Mar 2021
At 31 Mar 2020		 5,989
62,912
10,848
1,600
81,349
16,594
72,514
14,643
-
103,752

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021 2020
Creditors £ £
HMRC 666 652
666
 652

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COVENANT CHURCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

10. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

Loan

2021 2020 £ £ 40,750 93,000 40,750 93,000

11. ACCUMULATED FUNDS (RESERVES)

Balance at Incoming Outgoing Balance at 1 Apr 2020 resources resources 31 Mar 2021 £ £ £ £ General Funds 28,340 218,792 185,893 61,238

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