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2021-03-31-accounts

Charity number: 1172808

Union Chapel

Report and Financial Statements

For the year ended 31 March 2021

Union Chapel Report and financial statements for the year ended 31st March 2021

Contents Contents Pages
1. Company Details and Advisors 3
2. Principle Aims, Objectives and Activities 4-5
3. Achievements and Performance 6-7
4. Plans for the Future 8
5. Financial Review 9
6. Structure, Governance and Management 10-11
7. Fundraising Approach 12
8. Statement of Trustees Responsibilities 13
9. Independent examiner’s report to Members of Union Chapel Church 14
Statement of Financial Activities (incorporating an income and expenditure account) 15
Balance Sheet 16
Statement of cash flow 17
Notes to the financial statements 18-21

2

Union Chapel Report and financial statements for the year ended 31st March 2021

1. Company Details and Advisors

The trustees present their report together with the financial statements for the year ended 31 March 2021.

Trustees Claudina Edwards Constantin Arțăriși Elizabeth Walker Mark Jones Registered Union Chapel office & 19b Compton Terrace operational London. address N1 2UN Charity 1172808 Number Bankers Lloyds Bank Natwest Bank 31-33 Holloway Road 11 Upper Street Highbury & Islington Islington London London N7 8JU N1 0PQ Solicitors Bates Wells 10 Queen Street Place London EC4 1BE Accountants Goldwins Chartered Accountants 75 Maygrove Road London NW6 2EG

3

Union Chapel Report and financial statements for the year ended 31st March 2021

2. Principle aims, objectives and activities.

The objectives of Union Chapel, as set out in its amended Trust Deeds are to “permit the… Chapel, Vestries, Lecture Hall, School and Class Rooms, and two messages hereditaments and premises, and any other buildings that may hereafter be erected on the said piece of ground and any parts thereof to be used, occupied, and enjoyed for the public worship of Almighty God in accordance with the belief in the Lord Jesus Christ as the incarnate Son of God and the Redeemer of Men and in the Holy Spirit as the author of spiritual life and with a recognition of the divinely inspired scriptures of the Old and New Testaments as the supreme and sufficient rule of faith and practice, and also for such other religious, philanthropic, moral, intellectual, or social purposes, not inconsistent with such belief and recognition as aforesaid and generally in such manner and by such persons as shall from time to time be directed by a special resolution.”

The main aims adopted to achieve the charitable objectives are:

Provision of services of Worship: To run weekly services of Christian worship and also services for special occasions such as festival celebrations, weddings baptisms and funerals.

Provision of pastoral care for Union Chapel Community: For the ministers and church members to actively engage in appropriate pastoral care when needed for church members and the wider Chapel community.

Provision of Outreach Activities: To open Union Chapel to as many people as possible, from all walks of life. This includes:

The organisation relies on donations and income from owned property to fund its charitable activities and cover its operating costs.

4

Union Chapel Report and financial statements for the year ended 31st March 2021

Public Benefit

In shaping the objectives and planning activities for the year, the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit and fee charging.

In accordance with Section 17 of the Charities Act 2011, the trustees consider how planned activities will contribute to the aims and objectives that have been set. These objectives are carried out by the annual activities of the church and also by the church members supporting the ongoing work of Union Chapel Project, the charity set up by the church to manage a long term plan for the restoration of the Union Chapel so that the building can continue to be enjoyed by its many different users and visitors.

The trustees ensure that all activities are in accordance with the equal opportunities policy of UC and give careful consideration to the accessibility of the chapel to those on low incomes by offering free and low cost activities.

5

Union Chapel Report and financial statements for the year ended 31st March 2021

3. Achievements and Performance

Following a lengthy process of becoming a charity this is the fourth year Union Chapel Congregational Church has been active as its own charity.

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work within the last twelve months. The trustees report the success of each key activity and the benefits the charity has brought, to those groups of people that it is set up to help. The report also helps the trustees ensure the charity’s aims, objectives and activities remain focused on its stated purposes.

The year has been dominated by the Covid pandemic, which has severely impacted on our activities. We have, however, been able to make good use of social media and communications technologies which has enabled the congregation to remain in contact and for worship to continue.

Union Chapel Singers - The choir has been unable to meet in this year.

Provision of Pastoral Care

Supporting other charities - This year we have been able to continue to financially support, CARIS winter night shelter, and Christian Aid.

Supporting Union Chapel Project (UCP) - Two church members and our Minister have continued to serve Union Chapel Project on their board of directors. The church continues to give a financial donation to help with the running costs of UCP. Other church members help support the project by sitting on the Infrastructure committee and finance working group.

6

Union Chapel Report and financial statements for the year ended 31st March 2021

Fundraising

UC invites members to make individual donations to the work of the church.

Operations Support

7

Union Chapel Report and financial statements for the year ended 31st March 2021

4. Plans for the Future

The current situation caused by the Covid-19 pandemic has disrupted the church’s life, restricting many of its operations.

However, there is a determination that the church will be responsive and resilient.

Sunday Services will continue both in socially distanced services in the Chapel and online.

Bible Studies will be held weekly.

We will recruit an apprentice to develop digital marketing for the church.

Webinars on social, racial, economic and climate justice themes will be organized.

We are developing our musical life with the formation of Union Chapel Voices, a Gospel vocal group.

We are developing a partnership with an Eritrean Orthodox Church.

We will support the prayer life of the congregation through a regular prayer list.

We will organize events promoting social, racial, economic and climate justice.

8

Union Chapel Report and financial statements for the year ended 31st March 2021

5. Financial Review

Union Chapel Congregational Church maintained a consistent financial position with an income of £167k in the year to March 2021, a decrease of £ 42k on the previous year and funds carried forward of £ 186k, an increase of £ 44k on the previous year.

In summary:

Income

Income is generated from the following sources :

Expenditure

Expenditure is categorized as follows:

Balance Sheet

The Balance Sheet shows total net assets of £186,494 , which includes restricted funds of £5,219 for the Choir .

Reserves Policy

Union Chapel does not have a formal reserve policy but recognizes that the properties require ongoing maintenance and may incur large repair bills from time to time. The Church therefore has built up a general reserve of £40k to be able to respond to any necessary property costs or any other unexpected costs.

9

Union Chapel Report and financial statements for the year ended 31st March 2021

6. Structure, Governance & Management

Constitution

UC is a registered charity. It is governed by its Consolidated Trust Deed dated 18th September 1889 (As amended by a resolution under section 280 Charities Act 2011.

The church meeting

The members of the church are the members of the charity, they have the powers to appoint the managing trustees of the charity.

Managing trustees

Holding trustees

Organisation

Employees

Day to day management and operations of the Charity are delegated to its paid staff. The permanent full time complement of staff for the year was part time Minister of Word and Sacrament, a full-time Social Justice and Community Outreach Worker (from June 2019) and a part-time artist in residence. The organization was supported by a team of around 20 volunteers.

10

Union Chapel Report and financial statements for the year ended 31st March 2021

UC strives to be an equal opportunities employer and applies objective criteria to assess merit. It aims to ensure that no job applicant or employee receives less than favourable treatment on the grounds of age, race, colour, nationality, religion, ethnic or national origin, gender, marital status, sexual orientation or disability.

Selection criteria and procedures are reviewed to ensure that individuals are selected, promoted and treated on the basis of their relevant merits and abilities. Salaries are reviewed on an annual basis by the Deacons. All employees are given equal opportunity and, where appropriate and possible, special training to enable them to progress both within and outside the organisation.

Appointment of trustees

Trustee Induction and Training

New trustees undergo an orientation day to meet key staff and other trustees. An information pack is provided that includes the Charity’s Trust deed, recent audited and management accounts, the business plans for Union Chapel Project and organisational charts and the Charity Commission’s information on Responsibilities of Trustees.

Trustees are encouraged to attend appropriate external training events, where these will facilitate the undertaking of their role.

Risk Management

The trustees are responsible for overseeing the risk management strategy for the organisation, outside of church activities Union Chapel Project is delegated with risk management for the building and event activities. A comprehensive review of risks and opportunities is carried out annually by the UCP trustees and relevant findings are fed back into the church meeting. Subsidiary boards and working groups within the chapel are responsible for overseeing and mitigating risks throughout the year.

Currently, the key risks facing the church are health and safety of the building, low church attendance and small membership. Covid-19 has increased risk for our daughter charities UCP and Margins.

Therefore, the trustees are satisfied that systems are in place to mitigate risks identified.

11

Union Chapel Report and financial statements for the year ended 31st March 2021

7. Fundraising Approach

Union Chapel’s current approach to fundraising is to be transparent, clear and friendly. Union Chapel does not engage with third party fundraisers or commercial partners save for online facilitators such as justgiving.com. Fundraising activities are for church activities and for generating income which is donated to other charities whose activities lie within the organisation’s aims and objectives.

The Deacons review fundraising income, expenditure and procedures on a quarterly basis and the fundraising strategy is reviewed annually. Fundraising is not the primary income or operational focus for Union Chapel.

UC fundraises through the following methods:

Donations - a weekly collection is taken during the Sunday service and some church attendees give regularly by direct debit. There is always the opportunity for people to donate at the end of any other free events. There are also options on the website for individuals to donate money directly to the church.

Ticket Sales - For some events we charge for tickets, the price of the ticket is kept as low as possible and when appropriate free tickets are offered to those on low income to encourage accessibility. The ticket sales always go towards the cost of the event itself or to fundraise for the next event.

Profit from the Union Chapel Directions (UCD) trading arm - After covering costs UCD give to the church any profit which has been made on church events. This helps to cover the costs of free community events such as the Carols by Candlelight service, and also enables us to increase our budgets so we can put on more ambitious creative events paying our performers and contributors an acceptable fee. These opportunities have been limited by the pandemic.

Trusts and Foundations - Specific projects may require extra funding, on these occasions we make standard applications for relevant grants.

Investment funds - Union Chapel currently has a small amount of money invested in the Congregational Federation investment scheme.

We have not received any complaints about our fundraising approach. We would encourage unhappy donors to complain directly to the Deacons who would address the complaint in house. Failing that we notify donors that they can make an official complaint to The Fundraising Regulator.

UC has not failed to comply with a scheme or standard cited in the fundraising code of practice.

UC does not consider its fundraising methods as intrusive into person’s privacy and does not carry out unreasonably persistent approaches or create undue pressure to give. However, to ensure that vulnerable people are protected the organisation has adopted the guidance from the Institute of Fundraising’s Treating Donors Fairly – Fundraising with people in vulnerable circumstances guide.

12

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Union Chapel Report and financial statements for the year ended 31st March 2021

Independent examiner’s report to the trustees of Union Chapel

I report to the trustees on my examination of the accounts of Union Chapel for the year ended 31 March 2021.

Responsibilities and basis of report

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

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 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

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

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

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

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

Anthony Epton BA FCA CTA FCIE Goldwins Chartered accountants 75 Maygrove Road West Hampstead London NW6 2EG

31 January 2022

14

Union Chapel Church Statement of Financial Activities For the period from 1 April 2020 to 31 March 2021

Unrestricted
Note
£
Income from:
Grants and donations
2
11,574
Charitable activities:
3
-
Other trading activities
4
154,371
Investment income
5
10
Total income
165,955
Expenditure on:
Raising funds
6
15,067
Charitable activities:
6
Church
98,932
Events
6,466
Weddings
204
Choir
-
Total expenditure
120,669
Net gains / (losses) on investments
47
7
45,333
Transfers between funds
-
Net movement in funds
45,333
Reconciliation of funds:
Total funds brought forward
135,942
Total funds carried forward
181,275
45,286
Net income / (expenditure) for
the year
Net income / (expenditure)
before net gains / (losses) on
Restricted
£
-
672
-
-
672
-
-
-
-
2,140
2,140
-
(1,468)
-
(1,468)
6,687
5,219
(1,468)
2021
Total
£
11,574
672
154,371
10
2020
Total
£
18,084
25,326
164,974
17
166,627 208,401
15,067
98,932
6,466
204
2,140
10,910
104,065
45,916
1,478
4,712
122,809 167,081
47
43,865
-
43,865
-
142,629
43,818
34
41,320
41,354
-
41,354
-
101,275
186,494 142,629

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. The attached notes form part of these financial statements.

15

Union Chapej Chur¢h Balance sheet As al 31 March 2021 zo 2020 F￿X4d aB$•t$: Tangibl8 assels Investments 37,902 1.442 4f.747 1,395 43,142 10 Currenl a5S819: Dgbio ath at b￿k and In hgnd 6,dl 7 1fjZ046 86,485 e6,2fj7 158.4H 102,702 Crtitors: amowis due wllhln er)& fvar Il•( currnnt assetsl (IIHbllltlo8) 14715Q 99.487 Tolal n•1 assets l(Th&bilili05) 1¥fjA94 142 029 Funda Reylrici8d i)Jnds Unr•#trl¢ied f￿￿6.. 18 5219 687 181270 ￿842 Tol8llunrfs 186,494 142,629 Approvèd by tho Irusteos on ....27 Februa.ry. 2022 J sgne(J on fh8ir behall by. Constantln ArSJrl?I Thé dtacherl not05 kjim paul ol Ilw E*2lemeni& T8

Union Chapel Church Statement of cash flows For the period ended 31 March 2021

Union Chapel Church
For theperiod ended 31 March 2021
Statement of cash flows
Note
Cash flows from operating activities:
Net cash provided by / (used in) operating activities
15
Cash flows from investing activities:
Rent and Interest from investments
Purchase of Fixed Assets
Cash provided by / (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
16
2021
£
138,231
(1,165)
2021
£
(51,287)
137,066
85,779
66,267
152,046
2020
£
164,991
(32,073)
2020
£
(141,822)
132,918
(8,904)
75,171
66,267

17

Union Chapel Church Notes to the financial statements For the period from 1 April 2020 to 31 March 2021

1 Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP FRS 102) and with the Charities Act 2011.

The charity 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 or note.

b) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

c) Incoming resources

d) Resources expended

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered.

Resources expended comprise the following:

e) Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets less their estimated residual value over their expected useful lives on the following basis

Property Improvements 10% reducing balance Fixtures & Fittings 25% reducing balance

f) Investments

Union Chapel has an investment which is held by the Congregational Federation as custodians.

g) Fund accounting

The general fund comprises those monies which may be used towards meeting the charitable objectives of the charity and which may be applied at the discretion of the trustees.

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor-imposed conditions.

18

Union Chapel Church Notes to the financial statements For the period from 1 April 2020 to 31 March 2021

2 Income from donations and legacies

Grants Donations:
General donations
Gifts in Kind
3
Income from charitable activities
Events
Weddings
Choir
Total income from charitable activities
4
Income from other trading activities
Rental income
Other income
5
Income from investments
Bank interest
6
Analysis of expenditure
Church
£
Staff costs
66,217
Event Costs
-
Open Wednesdays
-
Choir Expenditure
-
Donations
16,641
Church Resources
9,729
Support costs
2,775
Wedding Costs
-
Governance
2,370
Property Costs
-
Depreciation
1,200
Total expenditure 2021
98,932
Total expenditure 2020
100,742
Total
Grants Donations:
General donations
Gifts in Kind
3
Income from charitable activities
Events
Weddings
Choir
Total income from charitable activities
4
Income from other trading activities
Rental income
Other income
5
Income from investments
Bank interest
6
Analysis of expenditure
Church
£
Staff costs
66,217
Event Costs
-
Open Wednesdays
-
Choir Expenditure
-
Donations
16,641
Church Resources
9,729
Support costs
2,775
Wedding Costs
-
Governance
2,370
Property Costs
-
Depreciation
1,200
Total expenditure 2021
98,932
Total expenditure 2020
100,742
Total
Events
Wedding
s
£
£
-
-
1,813
-
4,654
-
-
-
-
-
-
-
-
-
204
-
-
-
-
-
-
6,466
204
45,473
3,757
Charitable activities
Events
Wedding
s
£
£
-
-
1,813
-
4,654
-
-
-
-
-
-
-
-
-
204
-
-
-
-
-
-
6,466
204
45,473
3,757
Charitable activities
Unrestricted
£
11,574
-
Restricted
£
-
-
2021
Total
£
11,574
-
2020
Total
£
12,218
5,865
11,574 - 11,574 18,083
Unrestricted
£
-
-
Restricted
£
-
-
672
2021
Total
£
-
-
672
2020
Total
£
13,825
4,350
7,151
- 672 672 25,326
Unrestricted
£
138,220
16,151
Restricted
£
-
-
2021
Total
£
138,220
16,151
2020
Total
£
164,974
-
154,371 - 154,371 164,974
Unrestricted
£
10
Restricted
£
-
2021
Total
£
10
2020
Total
£
17
10 - 10 17
Choir
£
-
-
-
2,140
-
-
-
-
-
-
-
Raising
Funds
Property
£
-
-
-
-
-
-
-
-
11,256
3,811
2021
£
66,217
1,813
4,654
2,140
16,641
9,729
2,775
204
2,370
11,256
5,011
2020
£
62,446
40,376
5,540
4,712
28,855
4,826
5,125
1,478
1,602
6,675
5,446
98,932 6,466 204 2,140 15,067 122,809 -
100,742 45,473 3,757 4,390 11,936 - 167,081

19

Union Chapel Church Notes to the financial statements For the period from 1 April 2020 to 31 March 2021

7 Net income / (expenditure) for the year

This is stated after charging:

This is stated after charging:
Depreciation
Accountancy Software
Independent Examinator's Fee
2021
£
5,011
567
1,668
2020
£
5,446
567
900

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

Staff costs were as follows:
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes
2021
2020
£
£
60,468
50,271
4,979
7,081
669
1,185
66,116
58,537

The charity trustees were not paid or received any other benefits from employment with the Trust neither were they reimbursed expenses during the year. No charity trustee received payment for professional or other services supplied to the charity. No staff earned more than £60,000 per year.

Staff numbers

Union Chapel Church employed 4 part time staff during the year, including 1 part time ministers.

9
Tangible fixed assets
Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
At the end of the year
At the start of the year
10
Investments
At the start of the year
Gain / loss on investment
At the end of the year
11
Debtors
Prepayments
Accrued income
12
Creditors: amounts falling due within one year
Accrued Expenses
Property
Improvement
s
£
75,550
-
-
75,550
37,436
3,811
-
41,247
34,302
38,114
Fixtures &
Fittings
£
17,991
1,165
-
19,156
14,357
1,200
-
15,557
3,599
3,634
2021
£
1,395
47
Total
£
93,541
1,165
-
94,705
51,793
5,011
-
56,804
37,902
41,748
2020
£
1,361
34
1,442 1,395
2021
£
552
5,865
2020
£
1,935
34,500
6,417 36,435
2021
£
11,313
2020
£
3,215
11,313 3,215

20

Union Chapel Church

Notes to the financial statements

For the period from 1 April 2020 to 31 March 2021

13 Analysis of net assets between funds

Tangible fixed assets
Net current assets
Net assets at the end of the year
14
Movements in funds
Total unrestricted funds
Total Restricted funds
Total funds
£
135,942
6,687
142,629
At the start
of the year
General
unrestricted
£
37,902
147,150
181,275
£
166,002
672
166,674
Incoming
resources &
gains
Designated
£
-
-
-
£
120,669
2,140
122,809
Outgoing
resources &
losses
Restricted
£
-
5,219
5,219
Transfers
£
-
-
-
Total funds
£
37,902
152,369
186,494
£
-
At the end of
the year
181,275
5,219
186,494

15 Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net income / (expenditure) for the reporting period
Depreciation
Rent / interest from investments
(Increase)/ decrease in investments
(Increase)/ decrease in debtors
Increase/ (decrease) in creditors
Net cash provided by / (used in) operating activities
2021
2020
£
£
43,865
41,354
5,011
5,446
(138,231)
(164,991)
(47)
(34)
30,017
(22,578)
8,098
(1,019)
(51,287)
(141,822)

16 Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents
£
66,267
66,267
At 1 April
2020
Cash flows
£
85,779
85,779
£
-
-
Other
changes
£
152,046
At 31 March
2021
152,046

17 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. Each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up.

18 Related party transactions

Union Chapel Project paid rent of £16,000 to Union Chapel for use of office space. Union Chapel made an unrelated unrestricted donation of £16,000.

21