2021-03-31-accounts - Woodford Evangelical Church

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

WOODFORD EVANGELICAL CHURCH

31 March 2021

Report and Financial Statements

www.wec.onl

WOODFORD EVANGELICAL CHURCH

Report and Financial Statements 2021 Contents

	Page
Legal & Administrative Information	2
Report of the Trustees	3
Independent Examiner's report to the Trustees	6
Statement of financial activities	7
Balance sheet	8
Notes to the financial statements	9

WOODFORD EVANGELICAL CHURCH

Legal & Administrative Information For the year ended 31 March 2021

Charity Name	Woodford Evangelical Church.
Charity Registration	1177194
Governing Document	CIO - association registered 16 February 2018 as amended on 29 November 2020.
Objective	The church’s objects are:
	1. To advance the Christian faith in accordance with the statement of beliefs, doctrinal
	distinctives and ethical statements in Woodford, Essex and the surrounding area and
	elsewhere as the members of the church in general meeting may from time to time think
	fit; and
	2. Such other charitable purposes as shall, in the opinion of the members of the church in
	general meeting, further the work of the church; provided that the advancement of such
	purposes must be undertaken in a manner that is consistent with the statement of beliefs
	as may be adopted and amended by the church from time to time in accordance with the
	provisions of the rules.
Affiliation	The Church is a member of the Fellowship of Independent Evangelical Churches.
Principal Address	Prospect Hall, 42 Prospect Road, Woodford Green, Essex, IG8 7NA
Trustees	The Trustees who served during the period or who were serving at the date of this report
	were:
	Jon Drane Pastor
	Jeremy Clifton Elder
	Adrian Hodder Assistant Pastor (resigned 21 October 2021)
	Kong Yee Yap Deacon
	Trevor Newman Deacon
	Martin Lawrence Church worker (appointed 7 May 2020)
Key Management	Those in charge of planning, directing, controlling, running and operating the Charity,
Personnel	including those members of staff who are the senior management personnel to whom the
	trustees have delegated significant authority or responsibility in the day-to-day running of
	the charity are the Trustees.
Bankers	Lloyds Bank
	47 High Street
	Brentwood
	Essex CM14 4RN
Independent	John Helm ACA
Examiner	Simply Churches
	17 Heathville Road
	London N19 3AL

WOODFORD EVANGELICAL CHURCH

Report of the Trustees For the year ended 31 March 2021

The Trustees submit their report and the financial statements of Woodford Evangelical Church (“the Church”) for the year ended 31 March 2021. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2015 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.

1. Structure, Governance & Management

1.1 The Trustees

The Trustees of the Church are the persons appointed as elders in accordance with the Church Constitution and are responsible for the day to day management of the Church’s business in accordance with the Church’s objects. Two of the Trustees, the Pastor and the Assistant Pastor, received remuneration.

The induction process for any newly appointed Trustee comprises an initial meeting with the trustees and receipt of copies of the Church Constitution.

1.2 Church Members

Church members share in the responsibility for the finances, administration, maintenance and activities of the Church and elect the Trustees. Church members meet at least 3 times per annum for business meetings and receive reports from the Trustees.

Requirements for Church membership are:

profession of repentance towards God and faith in our Lord Jesus Christ;
baptism;
evidence of God’s grace in a consistent Christian life;
regular attendance at the Sunday services and midweek prayer meeting;
a desire to participate further in the privileges, obligations and fellowship of the church;
acceptance of the Articles of the church.

1.3 Risk Management

The Church’s primary concern and objective is the glory of God. Whilst it is the Church’s policy to trust wholly in the Lord that He will work out His purpose to this end, the Church also acknowledges that it has a responsibility, both as individual members and as a body of members, for the proper management of the Church in accordance with applicable laws and accepted good practice and for ensuring that the risks faced by the Church in achieving its primary aim are addressed as best as possible. The trustees believe that, by monitoring reserve levels, by ensuring that controls exist over key financial systems, and by examining the operational risks faced by the church, it has established effective systems and procedures to mitigate those risks.

2. Activities & Strategies

The Church is committed to maintaining a Gospel witness in the Woodford area of North East London and beyond.

The Trustees have given due regard to the Charity Commissions’ guidance on public benefit. The Trustees believe that the Church provides benefit to the public by:

providing resources and facilities for public worship, pastoral care and spiritual, moral and educational development, both for the congregation and for anyone else who wishes to benefit from what the Church offers;
promoting Christian values and service by members of the congregation to the community, for the benefit of individuals and society as a whole.
Promoting the initiation and development of additional congregations with the same ethos.

During the period the Church continued to carry out the following activities in order to promote the Gospel in the local neighbourhood and fulfil its main objects:

Sunday morning and evening worship services.
Prayer meetings and home Bible studies.

WOODFORD EVANGELICAL CHURCH

Report of the Trustees For the year ended 31 March 2021

Sunday school classes for 4-14 year olds.
Young people’s group for 4-6 year olds on Monday afternoons.
Young people’s group for 15-19 year olds on Sunday evenings.
Toddler group on Thursday mornings.
Half-term Holiday Bible Club in the school autumn term.
Christmas and Easter outreach services.
Evangelistic events.
Supporting other local evangelical churches.
Supporting a new church in a nearby district by providing financial support and payroll services, alongside pastoral care and practical counsel.

3. Achievements and Performance

As a church we give thanks to God that He has seen fit to continue to bless our activities.

4. Financial Review

4.1 Financial Activity and Financial Position

The Church’s main sources of funding are the free will offerings of church members.

The Statement of Financial Activities and Balance Sheet can be found on pages 7 and 8 respectively. The Church’s reserves increased by £12,113 (2020: increased by £303,981) during the year to £412,469 (2020: £400,456).

Included in reserves are amounts totalling £39,675 (2020: £32,050) which are restricted. These monies have either been raised for, and their use restricted to, specific purposes, or they comprise donations subject to donor-imposed conditions.

4.2 Reserves Policy

The Trustees have examined the requirements for free reserves, i.e. those unrestricted funds not invested in tangible fixed assets. The Trustees consider that, given the nature of the church’s work, free reserves should be equivalent to approximately 3 months’ routine general fund expenditure, plus committed future expenditure on other projects, where funds permit. The Trustees are of the opinion that this provides sufficient flexibility to cover temporary shortfalls in incoming resources and will allow the church to cope and respond to unforeseen emergencies whilst specific action plans are implemented. At 31 March 2021 the church had net free reserves of £97,318 (2020: £87,030) as follows:

Total reserves Less: restricted funds Less: fixed assets used for the continuing work of the church Free reserves Free reserves requirement: 3 month’s budgeted routine expenditure (excluding depreciation)	2021	2020
	£	£

	412,469	400,456
	(39,675)	(32,050)
	(275,476)	(281,376)


	97,318	87,030



	30,000	30,000

4.3 Investment policy

The church currently invests spare funds in an interest-bearing bank account.

4.4 Grants Policy

The Church makes gifts to support missionary endeavours both in the UK and abroad. The policy of the church is to give grants on the basis that they are subject to annual review and only renewed on the basis of meeting set criteria. In addition, the Church makes anonymous gifts, at the discretion of the Trustees, to those in need within, and outside of, the Church fellowship.

WOODFORD EVANGELICAL CHURCH

Report of the Trustees For the year ended 31 March 2021

5. Plans for Future Periods

Continue the main activities of the church
Continue the support of the new church in a nearby area
Support the community through the global pandemic crisis by providing practical and pastoral care.

6. Responsibilities of Trustees for the Financial Statements

The Trustees are responsible for preparing the report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Charity 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 charity and of its financial activities for that period.

Select suitable accounting policies and then apply them consistently;
Make judgements and estimates that are reasonable and prudent;
State whether the policies adopted are in accordance with the appropriate SORP on Accounting by Charities and the Accounting Regulations and with applicable accounting standards, subject to any material departures disclosed and explained in the financial statements;
Prepare the accounts on the going concern basis unless it is inappropriate to presume that the church will continue to operate.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

7. Approval

The report of the Trustees was approved by the Trustees on 14 January 2022 and signed on its behalf by:

Jon Drane Pastor

WOODFORD EVANGELICAL CHURCH

Report of the Independent Examiner to the Trustees of Woodford Evangelical Church

I report on the financial statements of Woodford Evangelical Church for the period ended 31 March 2021, set out on pages 7 to 15.

This report is made solely to the Church Council in accordance with section 145 of the Charities Act 2011 (the Act). My independent examination has been undertaken so that I might state to the Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by the law, I do not accept responsibility to anyone other than the Trust and the Trustees for my independent examination, for this report, or the opinions I have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER

The Church Council considers that an audit is not required for this (under section 144(2) of the Act) and that an independent examination is needed.

It is my responsibility to:

Examine the accounts (under section 145 of the Act);
To follow the procedures laid down in the General Direction given by the Charity Commission (under section 145(5)(b) of the Act); 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 General Directions given by the Charity Commissioners. 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 the Church Council 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 the accounts.

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:

accounting records were not kept in respect of the church as required by section 130 of the Act; or
the accounts do not accord with those records; or
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.

John Helm ACA 17 Heathville Road London N19 3AL

14 January 2022

WOODFORD EVANGELICAL CHURCH

Statement of Financial Activities For the year ended 31 March 2021

	Unrestricted	Restricted
Total	Funds	Funds	Total
2021	2020	2020	2020
£	£	£	£

176,559	392,057	42,551	434,608
-	1,787	-	1,787
-	281	-	281
346	177	-	177



176,905	394,302	42,551	436,853




164,792	117,311	15,561	132,872



164,792	117,311	15,561	132,872



-	-	-	-



12,113	276,991	26,990	303,981



-	(5,000)	5,000	-
-	-	-	-



12,113	271,991	31,990	303,981

400,456	96,415	60	96,475



412,569	368,406	32,050	400,456

WOODFORD EVANGELICAL CHURCH

Balance Sheet As at 31 March 2021

Note Fixed Assets Tangible Assets 5 Investments Current Assets Debtors 6 Cash at Bank and in Hand Creditors - Amounts Falling Due Within One Year 7 Net Current Liabilities Net Assets Represented By: Restricted Income Funds 8 Unrestricted Income Funds 9 Total Funds	Unrestricted Funds 2021 £ 275,476 - 275,476 14,607 85,703 100,310 2,892 97,418 372,894 - 372,894 372,894	Restricted Funds 2021 £ - - 0 - 39,675 39,675 - 39,675 39,675 39,675 - 39,675
			Total	Total
			2021	2020
			£	£

			275,476	281,376
			-	-

			275,476	281,376

			14,607	18,313
			125,378	102,294

			139,985	120,607

			2,892	1,527

			137,093	119,080

			412,569	400,456



			39,675	32,050
			372,894	368,406

			412,569	400,456

The financial statements were approved by the Trustees on 14 January 2022 and signed on its behalf by:

Jeremy Clifton Trustee

WOODFORD EVANGELICAL CHURCH

Notes to the Financial Statements For the year ended 31 March 2021

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting except for the revaluation of leasehold land and buildings which are shown at fair value.

The financial statements include all transactions, assets and liabilities for which the Church is responsible in law. They do not include the accounts of church groups that owe an affiliation to another body or those that are informal gatherings of church members.

The Church meets the definition of a public benefit entity under FRS 102.

Going Concern

There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.

Income recognition

Voluntary income and donations (including legacies) are accounted for once the Charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period in which the relevant donation is received.

The income from other trading activities includes rental income from the letting of the church manse which is accounted for when earned. It is shown gross, with the associated costs included in expenditure on fundraising.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Church; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. The Church is not registered for VAT and accordingly expenditure includes VAT where appropriate.

Charitable expenditure includes those costs in fulfilling the Church’s principal objects, as outlined in the Report of the Trustees. These include grants payable and governance costs:

Grants/gifts payable are payments made to third parties in furtherance of the Church’s objects. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Church.
Governance costs comprise all costs involving the public accountability of the Church and its compliance with regulation and good practice. These costs include costs related to the independent examination and legal fees.

Taxation

As a charity, the Church is exempt from tax on income and gains falling within the provisions of the Corporation Taxes Act 2010 or the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen on the Church.

WOODFORD EVANGELICAL CHURCH

Notes to the Financial Statements For the year ended 31 March 2021

1. Accounting Policies (continued)

Fixed Assets

Depreciation is provided to write off the cost, less estimated residual values, of all tangible fixed assets evenly over their expected useful lives. It is calculated at the following rates:

Fixtures and fittings - 25% per annum straight line Leasehold property - nil

Depreciation is not provided as the estimated residual value is considered to be the same or higher than the carrying value of the property in the accounts.

The leasehold property is stated at fair value.

Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount. Provisions have been calculated at the best estimate of the settlement amount and discounted to present value at the reporting date.

Fund accounting

The funds held by the charity are either:

Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Restricted funds - these are funds that 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.

WOODFORD EVANGELICAL CHURCH

Notes to the Financial Statements For the year ended 31 March 2021

2. Income

Unrestricted Funds 2021 £ Restricted Funds 2021 £ Donations and legacies Offerings and donations 105,572 59,600 Income tax reclaimed 10,049 1,338 Grants - - 115,621 60,938 Income from charitable activities Conferences and events - - Toddler group - - 0 0 Other trading activities Books magazines & literature - - Other - - 0 0 Investment income Rental income - - Bank interest 346 - 346 0 115,967 60,938
	Total	Total
	2021	2020
	£	£

	165,172	147,015
	11,387	12,593
	-	275,000

	176,559	434,608

	-	1,277
	-	510

	0	1,787

	-	221
	-	60

	0	281

	-	-
	346	177

	346	177

	176,905	436,853

3. Expenditure on Charitable Activities

Unrestricted Funds 2021 £ Restricted Funds 2021 £ Provision of Pastors 57,883 4,514 Church Life & Outreach 2,891 - Church Plant - 45,852 Missionary & Charitable Giving 22,418 2,947 Provision of Office & Support 2,030 - Provision of Buildings and Facilities 25,322 - Governance 935 - 111,479 53,313
	Total	Total
	2021	2020
	£	£

	62,397	59,964
	2,891	7,224
	45,852	14,193
	25,365	19,442
	2,030	3,153
	25,322	27,104
	935	1,792


	164,792	132,872

Two Trustees received £864 (2020: £4,766) in reimbursement for costs incurred on church business (including travel and subsistence, homeworking allowance, and the purchase of books).

WOODFORD EVANGELICAL CHURCH

Notes to the Financial Statements For the year ended 31 March 2021

3. Expenditure on Charitable Activities (continued)

3a. Staff Costs.

Expenditure on charitable activities includes the following payroll costs in respect of 3 employees:

Unrestricted Funds 2021 £ Wages and salaries 53,203 Employer’s National Insurance 1,746 Pension costs 1,596 56,545 Of which the following gross salaries were in relation to Key Management Personnel: 53,203	Restricted Funds 2021 £ 22,364 563 571 23,498 -				Total 2020 £ 56,027 2,052 1,681
			Total
			2021
			£

			75,567
			2,309
			2,167

					59,760
			80,043

					51,527

			53,203

No employee received remuneration in excess of £60,000 during the period.

3b. Missionary & Charitable Giving.

Expenditure on charitable activities includes the following missionary and charitable giving:

Unrestricted Funds 2021 £ To Organisations Pastor Training International (Simon Percy) 6,253 Child Evangelism Fellowship of Britain (Steve & Rachel Ball) 10,809 Open Doors 200 Christian Witness to Israel 1,700 International Justice Mission Hope in Burundi 1,106 London City Mission - Tear Fund - Good news for Everyone 200 Latin Link 200 Neales (Spain) 1,700 To Individuals 250 22,418	Restricted Funds 2021 £ - - - - 460 2,487 - - - - - - 2,947				Total 2020 £ 5,170 10,954 1,700 200 60 308 200 - - 850
			Total
			2021
			£

			6,253

			10,809
			200
			1,700
			460
			3,593
			-
			-
			200
			200
			1,700
			250

					19,442
			25,365

WOODFORD EVANGELICAL CHURCH

Notes to the Financial Statements For the year ended 31 March 2021

4. Net Income

Net income is stated after charging:

Unrestricted Funds £ Restricted Funds £ Operating lease rentals - Depreciation 6,535 - Independent examination 900 -		Total		Total
		2021		2020
		£		£

		-		-
		6,535		6,375
		900		486

5. Tangible Fixed Assets

Cost At 1 April 2020 Additions/transfers in Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for Period Disposals At 31 March 2021 Net Book Value At 31 March 2021 At 31 March 2020	Leasehold land & building £ Fixtures, fittings & equipment £ 275,000 27,621 635 - - 275,000 28,256 - 21,245 - 6,535 - - - 27,780 275,000 476 275,000 6,376

			Total
			£

			302,621
			635
			-

			303,256


			21,245
			6,535
			-

			27,780


			275,476

			281,376

6. Debtors

Gift Aid receivable Other debtors		2021		2020 £ 16,463 1,850
		£

		10,315
		1,130

				18,313
		11,445

WOODFORD EVANGELICAL CHURCH

Notes to the Financial Statements For the year ended 31 March 2021

7. Creditors - Amounts Falling Due Within One Year

Accruals Other creditors		2021		2020
		£		£

		2,336		1,050
		556		477

		2,892		1,527

8. Restricted Funds

At 1 April 2020 £ 31,556 0 0 0 494 32,050	Gains/ (losses) £ - - - - - 0	At 31
		March
		2021
		£

		26,689
		0
		0
		12,986
		0

		39,675

At 1 April 2019 £ Income £ Expenditure £ Transfers £ - 40,749 (14,193) 5,000 60 - (60) - - 1,000 (1,000) - - 494 - - 60 42,243 (15,253) 5,000	Gains/ (losses) £ - - - - 0
At 1 April 2019 £ - 60 - - 60		At 31
		March
		2020
		£

		31,556
		0
		0
		494

		32,050

The transfer in 2019/20 was a gift by the church to the church plant (CBPI).

Descriptions of the funds are:

Clayhall & Barkingside Plant Initiative . Funds received for the church plant initiative in Clayhall and Barkingside. International Justice Mission . Funds received for the work of the International Justice Mission charity. Hope in Burundi . Funds received for the work of the Hope in Burundi charity. Ray Lodge Mission . Funds received for the work of the Ray Lodge Mission outreach.

Pastor Training International . Funds received for the work of Pastor Training International charity. London City Mission . Funds received for the work of the London City Mission charity.

WOODFORD EVANGELICAL CHURCH

Notes to the Financial Statements For the year ended 31 March 2021

9. Unrestricted Funds

At 1 April 2020 £ 360,956 7,450 - 368,406	Gains/ (losses) £ - - - 0	At 31
		March
		2021
		£

		360,136
		7,450
		820

		368,406

At 1 April 2019 £ Income £ Expenditure £ Transfers £ 86,415 394,302 (114,761) (5,000) 10,000 - (2,550) - 96,415 394,302 (117,311) (325,000)	Gains/ (losses) £ - - 0
At 1 April 2019 £ 86,415 10,000 96,415		At 31
		March
		2020
		£


		360,956
		7,450

		368,406

The designated fund – tithe sale of manse was set up to recognise the church’s commitment to gifting 10% of the sale proceeds of the manse to worthy causes in furtherance of the church’s objects. The church committed to spending the £10k designated fund by supporting two mission projects over three years (2020-2021): Philip Amos, Christian Witness to Israel and Lynne and Andy Neale, mission amongst ex-pats in Southern Spain.

10. Related Party Transactions

Jon Drane, a Trustee, received gross remuneration of £35,738 (2020: £34,612) during the period in respect of services as Pastor.

Adrian Hodder, a Trustee, received gross remuneration of £17,465 (2020: £16,915) during the period in respect of services as Assistant Pastor.

Jon Drane, Adrian Hodder (until 21 October 2021) and Jeremy Clifton, all Trustees, were also Trustees of Woodford Community Centre (charity registration no 1171494) during the year. Woodford Evangelical Church paid £12,000 (2020: £18,000) rent in the period to Woodford Community Centre.

The Trustees donated £9,971 towards the work of the church in 2020/21.