2021-12-31-accounts - New Covenant Church Brixton

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New Covenant Church Brixton

Financial Statements & Trustees Report 31 December 2021

Charity no. 1175774

NEW COVENANT CHURCH BRIXTON FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2021

ADDRESS

2a Monks Orchard Road, Beckenham BR3 3BW

REGISTERED CHARITY NUMBER

1175774

TRUSTEES

Oluyemisi Olasode Adeleke Opeodu Gloria Orosungunleka Rolake Folorunso Kikelomo Ashaye

BANKERS

Metro Bank Plc 1 Southampton Row London WC1B 5HA

ACCOUNTANTS

TL First Accountants Ltd 1 Copers Cope Road Beckenham London BR3 1NB

NEW COVENANT CHURCH BRIXTON FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2021

TRUSTEES REPORT

Reference and administrative information on page 1 forms part of this report. The financial statements comply with current statutory requirements and the Statement of Recommended Practice - Accounting and Reporting by Charities (issued in March 2005).

Organisational Structure

The key management, financial and administrative functions of the Foundation are managed by an International Secretariat. The Secretariat is responsible for the management of grants awarded to the Foundation on behalf of the centres and for carrying out the secretariat function for the board of trustees.

Risk Management

The trustees and staff team review the Foundation’s activities to identify the risks to which it is exposed, in particular in operations and finances. A register of risks is presented to the Board for review, via the Executive Committee, on a regular basis. The register shows controls that are in place and further actions required to manage the risk. The likelihood and potential impact determine whether each risk is classed as high, medium or low.

Charity Activities

The activities for which the Charity is established are:

Provides places for Christian worship to the public in UK
Make available range of community programmes to address various needs
Assist with improving health, drop-in centres, care, counselling, referrals
Provision of food, clothing, advice, education and training, visitation for the sick and elderly

Financial Review

The trustees review the finances of the Charity on a regular basis and has noted the significant reduction in the income over the past three years, initially due to the relocation of the Church building and more recently due to covid-19 pandemic. It is hoped and prayed or that this will increase in the coming years as Service attendance increase.

Policy on Financial Reserves

The trustees have examined the requirement for free reserves which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed. The policy objective is "to maximise the programme impact of beneficiaries and maximise the value of net income".

The trustees consider that given the nature of our work, ideally the general reserve should at least cover three months ongoing costs, which gives flexibility to cover temporary timing differences for grant claims, adequate working capital for our core costs, and will allow us to respond quickly in unexpected situations. OneWorld International Foundation is taking measures to gradually build the general reserve from a historically low level to reflect the long-term nature of our work.

The board of trustees has reviewed the policy and will continue to do so, on an annual basis. The trustees consider the current financial position of the Charity as significantly below the required Reserves.

Statement of Responsibilities of the Trustees

Charity and Company law requires the trustees, who are also the directors, to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company at the end of the year and of its income and expenditure during the financial period. In preparing those financial statements, the trustees are required to:

§ Select suitable accounting policies and then apply them consistently
§ Make judgements and estimates that are reasonable and prudent
§ State whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statement
§ Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation

NEW COVENANT CHURCH BRIXTON FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2021

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the group and charity and which enable them to ensure that the financial statements comply with the Companies Act 1985. The trustees are also responsible for safeguarding the assets of the group and charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Approved by the trustees on 29 June 2022 and signed on their behalf by

Chairman

NEW COVENANT CHURCH BRIXTON FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2021

ACCOUNTANTS AND INDEPENDENT EXAMINERS’S REPORT

I report to the trustees on my examination of the accounts of the City Faith Ministries Trust (the Trust) for the year ended 31 December 2021.

Responsibilities and basis of report

As the charity's trustees, 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 am qualified to undertake the examination by being a qualified member of the Chartered Association of Certified Accountants (ACCA) and Fellow of the Association (FCCA).

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below *) which gives me cause to believe that in, any material respect:

the accounting records were not kept in accordance with section 130 of the Charities Act; or
the accounts did not accord with the accounting records; or
the accounts did 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.

Olusegun Olasode Phd APSA FCCA Chartered Certified Accountant TL First Accountants Limited TL First Limited

Date:

NEW COVENANT CHURCH BRIXTON FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2021

STATEMENT OF FINANCIAL ACTIVITIES

Note Incoming resources Tithes & Offerings Other Income - Grant Total Incoming Resources Costs of generating funds: Fundraising costs Charitable activities Programme Costs Governance Total Resources Expended Net Income for the year Net movement in funds Total funds brought forward Prior Year Adjustment Total funds carried forward	2021 2020 TOTAL TOTAL £ £ 6,329 5,544 10,000 - 16,329 5,544 - - 13,527 8,400 - - 13,527 8,400 2,802 (2,856) 2,802 (2,856) 8,169 11,025 10,971 8,169	2021 2020 TOTAL TOTAL £ £ 6,329 5,544 10,000 - 16,329 5,544 - - 13,527 8,400 - - 13,527 8,400 2,802 (2,856) 2,802 (2,856) 8,169 11,025 10,971 8,169
		5,544
		- 8,400 -
		8,400
		(2,856)
		(2,856)
		11,025
		8,169

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 10 to the financial statements.

NEW COVENANT CHURCH BRIXTON FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2021

BALANCE SHEET

Note Fixed assets Tangible fixed assets Current assets Cash at bank and in hand Creditors less than one year Net current assets Net assets FUNDS OF CHARITY Unrestricted funds Total Funds	2021 £ - - 10,971 10,971 - 10,971	2020 £ -
		-
		8,169
		8,169 -
		8,169

	10,971	8,169
	10,971	8,169
	10,971	8,169

These accounts are prepared in accordance with the SORP 2005 All incoming resources and resources expended derive from continuing activities.

The Financial Statements were approved by the board on the .............................. and signed on its behalf by: Oluyemisi Olasode

Trustee

29 June 2022

NEW COVENANT CHURCH BRIXTON FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2021

NOTES TO THE FINANCIAL STATEMENTS

1. Accounting policies

a) The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards and the Companies Act 2006. They follow the recommendations in the Statement of Recommended Practice, Accounting and Reporting by Charities (issued in March 2005).
b) Income represents the amounts receivable from grant making bodies and sales to third parties for services provided, exclusive of VAT.

Grant income is recognised in the period in which the foundation was entitled to receipt and the amount can be measured with reasonable certainty. Grant income is deferred only when the foundation 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.

c) Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund together with a fair allocation of management and support costs.
d) Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity. Designated funds are unrestricted funds earmarked by the governing body for particular purposes.
e) All assets costing more than £500 are capitalised at cost. Depreciation is provided on all tangible assets at rates calculated to write each asset down to its estimated residual value over its expected useful life, as follows:

Computer equipment 33% on cost Fixtures, fittings and equipment 25% on cost

f) Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the profit or loss for the period.
g) Operating lease rentals are charged to the statement of financial activities on a straight-line basis over the term of the lease.
h) Fundraising costs include the appropriate proportions of salary, direct costs of staff and support costs apportioned to the fundraising costs.
i) Overhead costs include office costs and appropriate proportions of salaries and staff working in the area of finance, office, management, human resources and technical support in OneWorld offices. The total overhead cost is included within support costs and has been apportioned to the various projects based on the proportion of staff time charged to each category.
j) Governance costs represent the costs of the governance and financial management of the company. They include appropriate proportions of salaries, audit and legal fees and support costs.
k) Transfers are made from unrestricted to restricted funds for any deficits for which future funding is not expected. Other transfers are only made with approval from the relevant funder.

NEW COVENANT CHURCH BRIXTON FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 DECEMBER 2021

2.DONATIONS AND SIMILAR INCOMING RESOURCES

Tithes & offering Grant 3. CHARITABLE ACTIVITIES Rent-Office & Church Donations & Welfare Programme Cost	2021 2020 £ £ 6,329 5,544 10,000 -
	16,329 5,544
	2021 2020 £ £ 2,649 - 878 - 10,000 8,400
	13,527 8,400

4. TRUSTEES REMUNERATION

Trustees are not remunerated. Costs incurred in connection with attendance at meetings are borne by the charity.

5. STAFF COSTS Salaries and wages Social security costs	2021 2020 £ £ - - - -
	- -

No employee earned more than £60,000 pro rata during the year.