## **COVENANT CHURCH** 

# **FINANCIAL STATEMENTS AND ANNUAL** 

## **REPORT** 

**FOR THE YEAR ENDED 31 MARCH 2023** 

# **CHARITY NUMBER: 1169459** 

# **COMPANY NUMBER: 09692379** 



## **COVENANT CHURCH** 

## **FINANCIAL STATEMENTS** 

## **YEAR ENDED 31 MARCH 2023** 

|**CONTENTS**<br>|**PAGE**|
|---|---|
|TRUSTEES ANNUAL REPORT<br>|**1**|
|INDEPENDENT EXAMINER'S REPORT<br>|**10**|
|INCOME AND EXPENDITURE ACCOUNT<br>|**12**|
|BALANCE SHEET<br>|**13**|
|NOTES TO THE FINANCIAL STATEMENTS|**15**|





## **COVENANT CHURCH** 

## **TRUSTEES ANNUAL REPORT** 

## **YEAR ENDED 31 MARCH 2023** 

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 2023. 

## **REFERENCE AND ADMINISTRATIVE DETAILS** 

## **REGISTERED CHARITY NAME** 

COVENANT CHURCH 

**CHARITY REGISTRATION NUMBER** 1169459 **COMPANY NUMBER:** 09692379 

## **PRINCIPAL/REGISTERED OFFICE** 

THE DESTINY CENTRE KENT ROAD PORTSWOOD SOUTHAMPTON HAMPSHIRE SO17 2LJ 

## **THE TRUSTEES** 

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

- ❖ MRS CANDYLOR MUTANDIRO ❖ DR DAVID ANTWI 

- ❖ MR JOSEPH ANERTY-QUAYE 

- ❖ DR ABIGAIL PAUL-ODDOYE ❖ REV JAMES HANSEN-SACKEY ❖ MR EMMANUEL LAWAL 

- ❖ MR KUDZAI CHIKODZORE 

## **PASTORS & MINISTERS-IN-CHARGE** 

- ❖ DR. JOHN PAUL ODDOYE 

- ❖ DR. ABIGAIL PAUL-ODDOYE 

## **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 2023** 

## **STATUS** 

The Charity is constituted and registered with the Charity Commission (charity number 1169459) and the Companies House (number 09692379). 

## **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** 

- To reach out to all sectors of the community with the gospel 

- To promote Youth and Christian Education (YCE) to interested members of the community 

- Involvement in community life by promoting and publicising social and cultural interests 

- Training and equipping believers to fulfil their calling in the body of Christ. 

**- 2 -** 



## **COVENANT CHURCH** 

## **TRUSTEES ANNUAL REPORT** _**(continued)**_ 

## **YEAR ENDED 31 MARCH 2023** 

## **2. Community Care and Inter Church Relationships** 

- To undertake charitable activities within the community 

- To operate a Southampton wide Christian help-line to support and relieve Christians who are experiencing pain and difficulties in their faith 

- Provide free counselling and prayer sessions for the emotional, spiritual, and physical wellbeing of the sick and the hurting in the wider community 

- Establishing links with local bible-based Churches (networking) to proactively strengthen relationships with other Christians and enhance community life. 

## **ACHIEVEMENTS AND PERFORMANCE** 

Covenant Church celebrated its 17th year anniversary in October 2022, a milestone for which we are grateful to God that we have achieved. Our goal remains the same, to spread the Good News of our Lord Jesus Christ and make disciples of nations according to His Great Commission. Our prayer and expectation are that God will continue to use Covenant Church as an instrument of salvation in our world. 

The world was still grappling with the effects of the COVID pandemic and while this has had many negative consequences around the globe, it helped the Church to be more resilient and reliant on the grace and strength of God to soldier through the tough times. Through the pandemic, we endeavoured to support members of the Church and the wider community through provision of food and other necessities. As a Church, we aimed to follow the COVID pandemic health protocols to ensure the health and welfare of those who attended our services. 

**- 3 -** 



## **COVENANT CHURCH** 

**TRUSTEES ANNUAL REPORT** _**(continued)**_ **YEAR ENDED 31 MARCH 2023** 

## **COMMUNITY EVENTS** 

## **1. Church partnerships** 

We believe the work of God requires strategic partnerships and alliances. As part of working together with other churches in the city, we are part of the Southampton Christian Network and Love Southampton. These were key alliances in the COVID pandemic as they allowed us to reach out to our community to deliver much needed support, supplying necessities and providing a listening ear to those who were experiencing isolation and loneliness. This outreach was to the wider community and was a great help and support to many people and we continue to carry out this work in the post-COVID environment. 

## **2. Business & Employment Empowerment Network** 

Through the Business & Employment Empowerment Network (BEN), we continue to offer employment and business advice, empowering our community to be financially secure and promote social mobility. Our aim is to continue to offer services such as CV reviews, interview skills coaching, and business set up consultation to empower our community and help further their careers and business ventures. 

We have also begun work to provide support on budgeting finances and dealing with debt, especially in this cost-of-living crisis, through our Christians Against Poverty (CAP) certified money managers. 

**- 4 -** 



## **COVENANT CHURCH** 

## **TRUSTEES ANNUAL REPORT** _**(continued)**_ 

## **YEAR ENDED 31 MARCH 2023** 

## **3. Youth outreach** 

We took part in the student welcome events held by the universities, and this resulted in many students coming to Covenant Church and finding a place to belong. We continue to welcome students to the church and offering a support network of alumni students from the two universities in the city who are a wealth of knowledge and experience from which new students can draw. 

Through Relentless Generation (RG), our Youth ministry which hold meetings in the two universities in the city, University of Southampton, and Solent University, we continue to support young people to navigate their journey through higher education. RG has been crucial in supporting young people with their mental health, mentoring them in their education and providing a platform on which they can discover their gifts and talents and serve God. 

We started our weekly Passion service every Sunday, aimed at and run by RG, and this has grown in leaps and bounds, and we have seen many young people rise to serve God in various capacities. This has culminated in the Youth Conference in March where we had a footfall of about 1,000 people over the three-day conference with ministration from young people through songs, spoken word, and a musical. 

**- 5 -** 



## **COVENANT CHURCH** 

## **TRUSTEES ANNUAL REPORT** _**(continued)**_ 

## **YEAR ENDED 31 MARCH 2023** 

## **4. Counselling** 

We continue to provide counselling to the community, focussing on various aspects of day-to-day life such as: 

- Marriage and relationships 

- Mental health 

- Substance abuse 

- Rehabilitation 

- School and careers 

We have seen a deep need in our community for this and we aim to provide more resources and support as we navigate a world that has become more financially constrained, leading many people to face more pressures in their lives. 

## **4. Tender Hearts** 

We have mainly provided support for parents and children through our Covenant Kids ministry, where children engage in activities that provide them with confidence and knowledge in the word of God. This included providing a platform for young children to showcase their musical talents through our children’s orchestra, where they come to learn how to play musical instruments as part of the orchestra. They have performed several times and we are encouraged by their development and progress. 

## **5. Annual Christmas Carol Service** 

We held our annual Christmas Carol service where we invited the community for a night of carols, food, and free toy gifts for all children under 10 years. We were excited to see the community come and be a part of this occasion where we shared the love and joy of the season – our Saviour Jesus Christ. We will continue to reach out to our community in this and many other ways that engage them. 

**- 6 -** 



## **COVENANT CHURCH** 

## **TRUSTEES ANNUAL REPORT** _**(continued)**_ 

## **YEAR ENDED 31 MARCH 2023** 

## **6. Summer Gospel Music Fiesta** 

This year was our inaugural Summer Gospel Music Fiesta, which was an outdoor open air gospel music concert held in the town square, the Guildhall square and led by our amazing Covenant Church choir. 

The aim of this event was to celebrate Jesus Christ and reach out to our city with the good news through music. In a world where Christianity is being pushed to a corner, we believe that events such as these put into the consciousness of our community, the love of Jesus Christ and offer hope and light to a world that is becoming increasingly dark. We engage with many people on the day who were offered mini counselling sessions and prayers. We take this as our opportunity to arise and shine and declare to our city that Jesus saves. We aim to continue this annual event and reach out to more people. 

## **7. Fund raising** 

As part of our drive to expand the work of the ministry we launched The Building Fund with the aim of raising money to build a purpose-built centre for worship and community service. 

We completed the purchase of Christ Centre in January, and this will help us to grow and welcome more people from the community. This new facility will provide much needed space to carry out our community outreach activities and give us the visibility we need. We are grateful that many have given to the project as we look to renovate the building and impact communities for generations to come. 

**- 7 -** 



## **COVENANT CHURCH** 

**TRUSTEES ANNUAL REPORT** _**(continued)**_ 

**YEAR ENDED 31 MARCH 2023** 

## **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. 

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

- Select suitable accounting policies and then apply them consistently; 

- ▪ Observe the methods and principles in the Charities SORP; 

- Make judgements and estimates that are reasonable and prudent; 

- State whether applicable UK Accounting Standards 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 charitable company will continue in operation. 

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. 

**- 8 -** 



## **COVENANT CHURCH** 

## **TRUSTEES ANNUAL REPORT** _**(continued)**_ 

## **YEAR ENDED 31 MARCH 2023** 

## **APPROVAL** 

This report was approved by the board of trustees on the 31/08/23 and signed on their behalf by: 


31/08/2023 

**- 9 -** 



## **COVENANT CHURCH** 

## **INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS OF** 

## **COVENANT CHURCH** 

## **YEAR ENDED 31 MARCH 2023** 

I report on the accounts of the charity for the year ended 31 March 2023 set out on page 12 to 18. 

## **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: 

- examine the accounts (under section 43(3) (a) of the 1993 Act, as amended); 

- to follow the procedures laid down in the General Directions given by the Charity Commission (under section 43(7)(b) of the 1993 Act, as amended); and 

- to state whether particular matters have come to my attention. 

## _**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'. 

**- 10 -** 



**COVENANT CHURCH** 

## **INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS OF** 

## **COVENANT CHURCH** 

## **YEAR ENDED 31 MARCH 2023** 

## _**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: 

- Proper accounting records are kept (in accordance with section 386 of the Companies Act 2006); and 

- Accounts are prepared which agree with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities; or 

(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 


31/08/2023. 

**- 11 -** 



## **COVENANT CHURCH** 

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

## **YEAR ENDED 31 MARCH 2023** 

|**INCOMING RESOURCES               NOTES**|**INCOMING RESOURCES               NOTES**|**UNRESTRICTED**|**RESTRICTED**|**2023**|**2022**|
|---|---|---|---|---|---|
|||**FUNDS**|**FUNDS**|**£**|**£**|
|Incoming resources from Donors|**2**|210,314|188,174|398,488|360,020|
|Other Voluntary Income|**3**|103,315|-|103,315|67,116|
|**TOTAL INCOMING RESOURCES**||**313,629**|**188,174**|**501,803**|**427,136**|
|**RESOURCES EXPENDED**||||||
|Charitable activities|**4**|40,548|-|40,548|21,259|
|Support costs|**5**|144,210|-|144,210|167,328|
|Governance costs|**6**|865|-|865|9,382|
|**TOTAL RESOURCES EXPENDED**||**185,624**|**-**|**185,624**|**197,970**|
|||||||
|**NET INCOME FOR THE YEAR**|**7**|**128,005**|**188,174**|**316,179**|**229,165**|
|**RECONCILIATION (NET MOVEMENT) OF**||**FUNDS**||||
|Total funds brought forward||||||
|01/04/2022||151,094|139,310|290,404|61,238|
|Restricted Funds Transfer||-|-|-|-|
|**TOTAL FUNDS CARRIED FORWARD**||**279,099**|**327,484 **|**606,583**|**290,404 **|



**The notes on pages 15 to 18 form part of these financial statements.** 

**- 12 -** 



## **COVENANT CHURCH** 

## **BALANCE SHEET** 

## **31 MARCH 2023** 

|**FIXED ASSETS**<br>Tangible assets<br>**8**<br>**CURRENT ASSETS**<br>Cash at bank and in hand<br>Other Assets<br>**CREDITORS**: Amounts falling due within one year<br>**9**<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**CREDITORS**: Amounts falling due After one year<br>**10**<br>**NET ASSETS**<br>**ACCUMULATED FUNDS (RESERVES)**<br>**TOTAL FUNDS**<br>**11**|**2023**<br>**2022**<br>**£**<br>**£**<br>989,886<br>61,563<br>187,309<br>229,551<br>48,750<br>48,750|
|---|---|
||**236,059**<br>**278,301**<br>8,146<br>3,746<br>**227,913**<br>**274,555**<br>**1,217,799**<br>**336,118**<br>611,216<br>45,713<br>**606,583**<br>**290,404**<br>**606,583**<br>**290,404**|



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 trustees acknowledge their responsibilities for: 

- (i) ensuring that the company keeps adequate accounting records which comply with section 386 of the Act, and 

(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. 

**The notes on pages 15 to 18 form part of these financial statements.** 

**- 13 -** 



## **COVENANT CHURCH** 

## **BALANCE SHEET** 

## **31 MARCH 2023** 

These financial statements were approved and signed by the member of the committee on 31/08/2023 


31/08/2023 

**The notes on pages 15 to 18 form part of these financial statements.** 

**- 14 -** 



## **COVENANT CHURCH** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **YEAR ENDED 31 MARCH 2023** 

## **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: 

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

**- 15 -** 



## **COVENANT CHURCH** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **YEAR ENDED 31 MARCH 2023** 

|**2.    INCOME FROM DONORS**<br>Offering<br>Tithe<br>Building Fund - Restricted<br>**3. OTHER VOLUNTARY INCOME**<br>Gift Aid<br>**4. COSTS OF CHARITABLE ACTIVITIES**<br>Donations & Honorarium<br>Church Outreach<br>Travel and accommodation<br>Training costs<br>Community & Welfare /Events<br>**5.  SUPPORT COSTS**<br>Salaries & Wages<br>Rent<br>Light and heat<br>Repairs and maintenance<br>Vehicle & Transport expenses<br>Telephone and postage<br>Media expenses<br>Stationery and printing<br>Premises expenses<br>Equipment hire<br>Depreciation<br>Other Church Running Expense|**2023**<br>**£**<br>71,599<br>138,716<br>188,174|**2022**<br>**£**<br>89,618<br>137,862<br>132,540|
|---|---|---|
||**398,488**|**360,020**|
||**2023**<br>**£**<br>103,315|**2022**<br>**£**<br>67,116|
||**103,315**|**67,116**|
||**2023**<br>**£**<br>6,359<br>600<br>7,686<br>1,433<br> <br>24,471|**2022**<br>**£**<br>9,858<br>600<br>3,416<br>2,063<br>5,322|
||**40,548**|**21,259**|
||**2023**<br>**£**<br>56,629<br>41,871<br>2,400<br>4,190<br>2,444<br>1,800<br>-<br>2,170<br>3,472<br>8,966|**2022**<br>**£**<br>69,203<br>38,473<br>2,400<br>6,406<br>2,167<br>2,087<br>1,705<br>5,769<br>2,310<br>7,396|
||13,797|19,786|
||6,472|9,628|
||**144,210**|**167,328**|



**- 16 -** 



## **COVENANT CHURCH** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **YEAR ENDED 31 MARCH 2023** 

|**6. GOVERNANCE COSTS**<br>Bank charges/Interest payable<br>Other professional fees|**2023**<br>**2022**<br>**£**<br>**£**<br>367<br>187<br>498<br>9,195|
|---|---|
||**865**<br>**9,382 **|



|**7. NET INCOMING RESOURCES**|**FOR THE**|**YEAR**|
|---|---|---|
||**2023**|**2022**|
|This is stated after charging:|**£**|**£**|
|Depreciation of tangible fixed|||
|assets|**13,797**|<br>**19,786**|



|**8. TANGIBLE FIXED ASSETS**|**8. TANGIBLE FIXED ASSETS**||||||
|---|---|---|---|---|---|---|
||**LAND &**|**MUSICAL**|**FURN &**|**CHURCH**|**COMPUTER**||
||**BUILDING**|**EQUIP**|**FITTINGS**|**EQUIP**|**& ACCESS**|**TOTAL**|
|**COST**|**£**|**£**|**£**|**£**|**£**|**£**|
|At 1 Apr 2022|-|42,423|96,018|18,977|2,000|**159,418**|
|Additions|942,120|-|-|-||**942,120**|
|At 31 Mar 2023|**942,120**|**42,423**|**96,018**|**18,977**|**2,000**|**1,101,538**|
|**DEPRECIATION**|||||||
|At 1 Apr 2022|-|42,423|42,707|11,924|800|**97,854**|
|Disposal||-|-|-|-|**-**|
|Charge for the year|**-**|**-**|**9,602**|**3,795**|**400**|**13,797**|
|**At 31 Mar 2023**|**-**|**42,423**|**52,309**|**15,719**|**1,200**|**111,651**|
|**NET BOOK VALUE**|||||||
|At 31 Mar 2023|**942,120**|**-**|**43,709**|**3,257**|**800**|**989,886**|
||||||||
|At 31 Mar 2022|**-**|**-**|**53,311**|**7,053**|**1,200**|**61,563**|



**- 17 -** 



## **COVENANT CHURCH** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## **YEAR ENDED 31 MARCH 2023** 

## **9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** 

|Creditors<br>HMRC|**2023**<br>**2022**<br>**£**<br>**£**<br>502<br>508<br>7,644<br>3,238|
|---|---|
||**8,146**<br>**3,238**|



## **10.CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR** 

|Bank Loan<br>Mortgage|**2023**<br>**2022**<br>**£**<br>**£**<br>30,581<br>45,713<br>580,635<br>-|
|---|---|
||**611,216**<br>**45,713**|



## **11. ACCUMULATED FUNDS (RESERVES)** 

||Balance at|Incoming|Outgoing|Balance at|
|---|---|---|---|---|
||1 Apr 2022|resources|resources|31 Mar 2023|
||**£**|**£**|**£**|**£**|
|**General Funds**|**290,404**|**501,803**|**185,624**|**606,583**|



**- 18 -**