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2020-12-31-accounts

REGISTERED CHARITY NUMBER: 1174887

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2020

for

New Covenant Church - Wallington

New Covenant Church - Wallington

Contents of the Financial Statements for the Year Ended 31 December 2020

Page
Report of the Trustees 1 to 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Cash Flow Statement 10
Notes to the Cash Flow Statement 11
Notes to the Financial Statements 13 to 16
Detailed Statement of Financial Activities 17

New Covenant Church - Wallington

Report of the Trustees for the Year Ended 31 December 2020

The trustees present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Page 1

New Covenant Church - Wallington

Report of the Trustees for the Year Ended 31 December 2020

OBJECTIVES AND ACTIVITIES Objectives and aims

The objects of the CIO are:

To advance Christian religion and biblical education for the public benefit, particularly but not exclusively, by providing workshops, conferences and afterschool clubs.

The alleviation of poverty within the area of operation, particularly but not exclusively by providing monetary grants and welfare support and services.

Prior to the emergence of the Covid 19 pandemic and resultant national lowdown in March 2020, we conducted regular Sunday services where we all met. In addition, the youths, the women and men groups met occasionally for separate fellowship to encourage and develop themselves in accordance to God’s plan and purpose. These meetings provide a great opportunity for people to share common issues that maybe gender, age, career or role specific. All our services are open to all people, without charge.

Our walk-in outreach ministry regularly provided support for people in the local community regarding free benefits.

We would often go out on evangelism to share the good news that God loves the world in our local community, we listen and offer prayers for everyone.

During the lockdown, we were able to continue to hold Sunday church service via the Zoom online remote connectivity platform. The different church groups, were also able to meet via Zoom, with the additional

focus of well-being.

The church was also able to reach out to the wider public via her website on spiritual and physical health, and overall well-being during this pandemic.

The CIO has made contributions to Feed the Hungry, Sutton night watch homeless charity, Gifts for homeless people on the street activity carried out by the young adult fellowship and financial support for individuals in

the church who was in need.

We confirm the trustees have had regard to the Charity Commission's public benefit guidance when carrying out activities to which it's relevant.

We had plans to implement our big ideas for social transformation including Coffee Morning, Food Bank, Soup Kitchen as well as a breakfast and an After School Club. However, we were restrained by the pandemic and lowdown.

However, Church members were still able to volunteer their time, skills and expertise.

The CIO’s grant making policy was reviewed, with reference to effects of the pandemic.

Page 2

New Covenant Church - Wallington

Report of the Trustees

for the Year Ended 31 December 2020

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Even though we were restrained by the pandemic, a summary of our achievements are as follows:

We have held regular church services and meetings.

Pastoral support has and continues to be given by our Pastors.

We have rendered financial support to worthy causes for the benefit of the public.

Church workers meetings have been held.

Well-being meetings have been held for different church groups.

Pastors have held regular meetings.

Trustees have held meetings.

Reopening policy including Covid-19 Risk Assessment.

Trustees have amended the CIO’s objects to the alleviation of poverty within our area of operation, particularly but not exclusively by providing monetary grants and welfare support and services.

FINANCIAL REVIEW

Financial position

At the end of December 2020, our savings with HSBC was £530,917.61

We aim to purchase a church building to enable us carry out our objective more effectively. The saved amount is mostly towards the purchase of our building.

Principal sources of income include regular donations by members of the church and attendees at our meetings through collections, direct bank transfer, standing orders, periodic fund raising, all by voluntary contributions.

We also earn interest paid on our savings account and we make regular gift aid claims.

Expenditures include money spent on rent, lease and venue hires for our meetings and worship, salary for employed staff, professional fees paid to musicians, accountant, public liability insurance, event insurance, vehicle insurance, equipment purchased, vehicle maintenance, welfare, contribution to other charities and to our associate church New Covenant church UK, meetings and training, printing, love gifts and honorariums, and towards our outreaches and charitable events such as the homeless activity at Christmas by the young adult fellowship.

FUTURE PLANS

We aim to continue to grow as church.

Expand our activities and own our building to facilitate our objectives, for the public’s benefit.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

Page 3

New Covenant Church - Wallington

Report of the Trustees

for the Year Ended 31 December 2020

Foundation Governing Document. 28 September 2017 as amended 08 December 2020.

Charitable Incorporated Organisation

Recruitment and appointment of new trustees

The current trustees are the first trustees. In making their appointments, the following steps were followed:

The CIO’s governing document is checked to ensure that the new trustees are appointed in a proper and legal way.

Preferred candidates, with the required expertise and skill set, are identified and invited to be the first charity trustees. (Subject to formal vetting and approval by the full trustee board.)

Potential trustees are vetted. Checks are carried out to ascertain candidates have not been disqualified from acting as trustees, and candidates are asked to confirm in writing that this is the case.

Candidates are asked to consider and declare any existing or potential conflicts of interest. Appropriate checks from the Disclosure and Barring Service are conducted.

In the light of the checks and declarations, the trustees decide to go ahead and formalise the appointment of new trustees.

Trustees meet and make a decision on the appointment of each new Trustee and the office they hold.

All new trustees are given a copy of the CIO’s governing document and all relevant documents and guides from the Charity Commission.

All new trustees are introduced to the church and the office they hold.

Page 4

New Covenant Church - Wallington

Report of the Trustees

for the Year Ended 31 December 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure

The trustee board is responsible for good governance and we strive to govern well.

Trustees are given an induction session along with going through the CIO’s governing document and all relevant guides from the Charity Commission.

The CIO’s governing document and all relevant guides from the Charity Commission are regularly consulted in enabling trustees.

New Covenant Church, Wallington, is part of the wider New Covenant Church UK, and trustees have attended meetings organised aimed at supporting and enabling trustees carry out their roles effectively.

The CIO consists of 4 trustees. There is a Chair, a secretary and a Treasurer.

New Covenant Church, Wallington consists of a leadership team of three Pastors and one Elder. Within the church, there are 18 departments and committees, with each having a head of department.

The various departments and committees include the Pastoral Team, Choir, Welfare, Children Department, Youths, Young Adults, Ushers, Technical Team, Prayer and Intercessory Team, Welcome and Follow Up

Team, Covenant Men, Covenant Women, Evangelism, Finance, Discipleship Team, Party In The Park Committee, Building Committee and the Outreach Ministry (namely Benefit Advice).

New Covenant Church, Wallington is part of New Covenant Church UK, with a signed document of association and collaboration.

To identify, assess and manage risks to the CIO, the trustees have adopted a risk management policy and also use the framework suggested by the Charity Commission CC26.

The CIO has public liability and indemnity insurance policy up to date.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1174887

Principal address

Trustees

O OBOITE MRS O OKORO MS K DAVIDSON DR S AJAYI

Page 5

New Covenant Church - Wallington

Report of the Trustees for the Year Ended 31 December 2020

Approved by order of the board of trustees on 6 October 2021 and signed on its behalf by:

O OBOITE - Trustee

Page 6

Independent Examiner's Report to the Trustees of New Covenant Church - Wallington

Independent examiner's report to the trustees of New Covenant Church - Wallington

I report to the charity trustees on my examination of the accounts of New Covenant Church - Wallington (the Trust) for the year ended 31 December 2020.

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 Act and in carrying out my examination I have followed all 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.

Theo Sehindemi

Date: .............................................

Page 7

New Covenant Church - Wallington

Statement of Financial Activities
for the Year Ended 31 December 2020
Unrestricted Restricted
fund
fund
Notes
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
98,808
-
EXPENDITURE ON
Charitable activities
3
Training and Welfare
773
-
Contribution to Centre
8,851
-
Professional Fees
3,701
-
Honorarium
500
-
Insurance
1,166
-
Motor Expenses
265
-
Postage and Stationery
260
-
Rent
3,912
-
Subscription
199
-
Wages and Salary
10,022
-
Social Security - Employer National
Insurance
1,383
-
Books
250
-
Total
31,282
-
NET INCOME
67,526
-
TOTAL FUNDS CARRIED FORWARD
67,526
-
Total
funds
£
98,808
773
8,851
3,701
500
1,166
265
260
3,912
199
10,022
1,383
250
31,282
67,526
67,526

The notes form part of these financial statements

Page 8

New Covenant Church - Wallington

Balance Sheet

31 December 2020

Unrestricted Restricted
fund
fund
Notes
£
£
FIXED ASSETS
Tangible assets
7
427
-
CURRENT ASSETS
Debtors
8
48,301
-
Cash in hand
18,797
-
67,098
-
CREDITORS
Amounts falling due within one year
9
1
-
NET CURRENT ASSETS
67,099
-
TOTAL ASSETS LESS CURRENT
LIABILITIES
67,526
-
NET ASSETS
67,526
-
FUNDS
10
Unrestricted funds
TOTAL FUNDS
Total
funds
£
427
48,301
18,797
67,098
1
67,099
67,526
67,526
67,526
67,526

The financial statements were approved by the Board of Trustees and authorised for issue on 6 October 2021 and were signed on its behalf by:

O OBOITE - Trustee

The notes form part of these financial statements

Page 9

New Covenant Church - Wallington

Cash Flow Statement
for the Year Ended 31 December 2020
Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Change in cash and cash
equivalents in the reporting
period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the
end of the reporting period
£
19,224
19,224
19,224
-
18,797

The notes form part of these financial statements

Page 10

New Covenant Church - Wallington

Notes to the Cash Flow Statement for the Year Ended 31 December 2020

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement
of Financial Activities)
Adjustments for:
Increase in debtors
Decrease in creditors
Net cash provided by operations
£
67,526
(48,301)
(1)
19,224
  1. ANALYSIS OF CHANGES IN NET FUNDS
At 1.1.20 Cash flow At 31.12.20
£ £ £
Net cash
Cash at bank and in hand - 18,797 18,797
- 18,797 18,797
Total - 18,797 18,797

The notes form part of these financial statements

Page 11

New Covenant Church - Wallington

Error Messages from the Cash Flow Statement for the Year Ended 31 December 2020

** CURRENT YEAR - MOVEMENT IN CASH AND CASH EQUIVALENTS
AS CALCULATED IN CASH FLOW STATEMENT
DOES NOT AGREE TO MOVEMENT PER BALANCE SHEET
COMPARE MOVEMENT ON CASH FLOW STATEMENT 19,224
TO
MOVEMENT PER BALANCE SHEET
CASH AND CASH EQUIVALENTS 18,797

New Covenant Church - Wallington

Notes to the Financial Statements for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Page 13

continued...

New Covenant Church - Wallington

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

2. DONATIONS AND LEGACIES

Donations
Gift aid
£
76,070
22,738
98,808

3. CHARITABLE ACTIVITIES COSTS

Training and Welfare
Contribution to Centre
Professional Fees
Honorarium
Insurance
Motor Expenses
Postage and Stationery
Rent
Subscription
Wages and Salary
Social Security - Employer
National Insurance
Books
4.
SUPPORT COSTS
Management
£
Contribution to Centre
-
Professional Fees
-
Honorarium
500
Insurance
1,166
Motor Expenses
-
Postage and Stationery
260
Rent
3,912
Subscription
199
Wages and Salary
10,022
Social Security - Employer National
Insurance
1,383
Books
-
17,442
Support
Direct
costs (see
Costs
note 4)
£
£
773
-
-
8,851
-
3,701
-
500
-
1,166
-
265
-
260
-
3,912
-
199
-
10,022
-
1,383
-
250
773
30,509
Governance
Finance
costs
£
£
8,851
-
3,701
-
-
-
-
-
265
-
-
-
-
-
-
-
-
-
-
-
-
250
12,817
250
Totals
£
773
8,851
3,701
500
1,166
265
260
3,912
199
10,022
1,383
250
31,282
Totals
£
8,851
3,701
500
1,166
265
260
3,912
199
10,022
1,383
250
30,509

Page 14

continued...

New Covenant Church - Wallington

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

5. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2020.

6. STAFF COSTS

Wages and salaries
Social security costs
£
10,022
1,383
11,405

The average monthly number of employees during the year was as follows:

No employees received emoluments in excess of £60,000.

7. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Fixtures
and
fittings
£
COST
At 1 January 2020 and
31 December 2020 534
DEPRECIATION
Charge for year 107
NET BOOK VALUE
At 31 December 2020 427

Page 15

continued...

New Covenant Church - Wallington

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

8. DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

8.
DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Balancing Figure
9.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
£
48,301
£
(1)

10. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Net
movement At
in funds 31.12.20
£ £
Unrestricted funds
General fund 67,526 67,526
TOTAL FUNDS 67,526 67,526

Net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 98,808 (31,282) 67,526
TOTAL FUNDS 98,808 (31,282) 67,526

11. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2020.

Page 16

New Covenant Church - Wallington

Detailed Statement of Financial Activities
for the Year Ended 31 December 2020
INCOME AND ENDOWMENTS
Donations and legacies
Donations
Gift aid
Total incoming resources
EXPENDITURE
Charitable activities
Training and Welfare
Support costs
Management
Wages
Social security
Rent
Insurance
Subscription
Postage and stationery
Honorarium
Finance
Contribution to Centre
Motor Expenses
Professional Fees
Governance costs
Books
Total resources expended
Net income
£
76,070
22,738
98,808
98,808
773
10,022
1,383
3,912
1,166
199
260
500
17,442
8,851
265
3,701
12,817
250
31,282
67,526

This page does not form part of the statutory financial statements

Page 17