## **CAUSEWAY COMMUNITY CHURCH** **Annual report and Unaudited Financial Statements for the year ended 30th September 2021** **Charity Commission Registered Number: 1177219** **CAUSEWAY COMMUNITY CHURCH REPORT AND FINANCIAL STATEMENTS For the year ended 30th September 2021** |**Contents**|**Page**| |---|---| |Legal and administrative information|2| |Report of Trustees|3-4| |Report of Independent Reporting Accountant|5| |Statement of Financial Activities|6| |Balance Sheet|7| |Notes to the Accounts|8-12| - 1 - ## **CAUSEWAY COMMUNITY CHURCH LEGAL AND ADMINISTRATIVE INFORMATION** ## **Trustees:** O. L. Chow J. P. Critoph (Secretary) S. H. Critoph (Pastor) J. M. Wheatley (Treasurer) (Resigned 19th September 2021) ## **Registered number:** 1177219 ## **Church address:** ## **Bankers:** The Causeway Potters Bar EN6 5HQ Barclays Bank plc Leicester LE87 2BB **Solicitors:** Edward Connor Solicitors 10 The Point Market Harborough Leicestershire LE16 7QU - 2 - ## **CAUSEWAY COMMUNITY CHURCH TRUSTEES' REPORT For the year ended 30th September 2021** The trustees present their annual report and financial statements for the year ended 30th September 2021. ## **Structure, governance and management** Causeway Community Church is a Charitable Incorporated Organisation (CIO) registered by the Charity Commission for England and Wales on 19th February 2018 (registered number: 1177219). The CIO was created for the purposes of continuing the long-standing ministry of the church previously known as Causeway Free Church (CFC). The assets and liabilities of CFC were transferred to the new CIO with effect from 31st December 2018 and it commenced activities on 1st January 2019. The trustees (who are also elders) are responsible for the management of the Church in accordance with the Church Constitution and Handbook. On 1st March 2020 Spencer Critoph was inducted as the full time pastor of the church. The trustees who served during the year are listed on page 2. The church is affiliated to the Fellowship of Independent Evangelical Churches (FIEC). ## **Object and review public benefit** The purposes of the church are (1) the advancement of the Christian faith in accordance with the Basis of Faith of the FIEC, primarily but not exclusively within Potters Bar and the surrounding neighbourhood together with its advancement throughout the United Kingdom and the World; and (2) such other charitable purposes as shall, in the opinion of the trustees, further the work of the church. The church seeks to serve the local community by providing a place of worship, prayer and Bible teaching. We regularly promote and publicise our activities in the local community. ## **Review of activites** The church holds Sunday morning services and mid-week prayer and bible study meetings. In addition the church runs a number of other activities and events with the objective of making and developing contact with members of the local community who do not usually attend church. These activities have included regular coffee mornings, an English club for those who want to improve their spoken and written English, a Parents & Toddlers group and services at local care homes for the elderly. Inevitably these activities have been disrupted to some extent by the COVID-19 pandemic. The announcement of lockdown measures and other restrictions over the past two years has had an impact on the activities of our church but we have made every effort to ensure that, even when we were not able to use our building, the church remained active, using internet based technology when necessary. ## **Achievement and performance** We are thankful to God for his continued financial provision for the work of the church despite the disruption related to the COVID-19 pandemic. We count it a privilege to have been able to continue to support our 'mission partners' working for missionary societies in the UK and overseas and that we have been able to continue to reach out into our local community with God's love and care. - 3 - ## **CAUSEWAY COMMUNITY CHURCH TRUSTEES' REPORT For the year ended 30th September 2021** ## **Financial review** During the year to September 2021, total incoming resources amounted to £59,996 (2020: £49,792). These were almost entirely comprised of collections, offerings and other donations from members by standing orders, together with the associated gift-aid claimed. Resources expended during the year totalled £45,376 (2020: £30,506). The main components of expenditure are set out in the Statement of Financial Activites on page 6. In 2021, £1,550 was donated to overseas missions and other ministries not directly connected with the Church (2020: £2,319). Accumulated funds at the year end amounted to £119,420. The balance on the General Fund (£89,420) remains substantial in relation to the size of the church but is maintained in order to fund potential future expenditure on improvements to the facilities offered by our church building. The balance on the trustees' discretionary fund remains at the amount of £30,000. This fund is maintained in order to ensure that the church always retains reserves amounting to approximately six months of operating costs. ## **Trustees’ responsibilities** Charity law requires the trustees to prepare financial statements for each financial year. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Church and for taking reasonable steps for the prevention and detection of fraud and other irregularities, and safeguarding assets. ## **Risk Management** The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The trustees have taken appropriate steps to mitigate key risks identified. Signed on behalf of the Trustees J. M. Wheatley 5th May 2022 - 4 - **CAUSEWAY COMMUNITY CHURCH INDEPENDENT EXAMINER'S REPORT** ## **For the year ended 30th September 2021** ## **Report to the trustees/members of Causeway Community Church (Charity no. 1177219)** I report to the trustees on my examination of the accounts of the above charity ("the Charity") for the year ended 30th September 2021 as set out on pages 6 to 12. ## **Responsibilities and basis of report** As the charity trustees, you are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (“the Act”). I report in respect of my examination of the Charity’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 which gives me cause to believe that in, any material respect,: - ●the accounting records were not kept in accordance with section 130 of the 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. Brian Wright FCA 28 Bycullah Ave. Enfield EN2 8DN 18th May 2022 - 5 - ## **CAUSEWAY COMMUNITY CHURCH STATEMENT OF FINANCIAL ACTIVITIES For the year ended 30th September 2021** |Unrestricted
Funds
_Notes_
£
**INCOME FROM:**
Donations
50,775
Investments
9
Other income
150
**Total income**
_(2)_
50,934
**EXPENDITURE ON CHARITABLE ACTIVITIES**
Gifts to Christian causes
_(3)_
1,550
Church ministry
_(4)_
34,243
Establishment costs
_(7)_
5,781
Governance costs
_(8)_
3,802
**Total resources expended**
45,376
**NET MOVEMENT IN FUNDS**
5,558
Transfers between funds
9,062
14,620
**Funds brought forward**
104,800
**Funds carried forward**
119,420|Restricted
Funds
£
9,062
-
-
9,062
-
-
-
-
-
9,062
(9,062)
-
-
-|Total
Funds
**2021**
£
59,837
9
150
59,996
1,550
34,243
5,781
3,802
45,376
14,620
-
14,620
104,800
119,420|Total
Funds
**2020**
£
49,513
109
170
49,792
2,319
19,706
7,092
1,389
30,506
19,286
-
19,286
85,514
104,800| |---|---|---|---| - 6 - ## **CAUSEWAY COMMUNITY CHURCH STATEMENT OF FINANCIAL POSITION As at 30th September 2021** |_Notes_
**FIXED ASSETS**
Improvements to premises
_(9)_
**CURRENT ASSETS**
Debtors
_(10)_
Cash at bank and in hand
**CREDITORS:**
Amounts falling due within one year
_(11)_
**NET CURRENT ASSETS**
**NET ASSETS**
Represented by:
**UNRESTRICTED FUNDS**
General Fund
_(15)_
Trustees' Fund
_(15)_
**RESTRICTED FUNDS**
Specific collections & donations
_(15)_|Total
Funds
**2021**
£
6,525
5,510
108,223
113,733
838
112,895
119,420
89,420
30,000
119,420
-
119,420|Total
Funds
**2020**
£
-
6,728
98,408
105,136
336
104,800
104,800
74,800
30,000
104,800
-
104,800| |---|---|---| Approved by the board of trustees on 5th May 2022. J. M. Wheatley **Treasurer** - 7 - **CAUSEWAY COMMUNITY CHURCH NOTES TO THE FINANCIAL STATEMENTS For the year ended 30th September 2021** ## **1. ACCOUNTING POLICIES** _**Basis of preparation**_ 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 2015)' and the Charities Act 2011. The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. ## _**Going concern**_ The trustees consider that there are no material uncertainties about the church's ability to continue as a going concern. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts. ## _**Incoming Resources**_ Collections and similar donations are recognised when received. Donations under Gift Aid are accounted for on the date of receipt and provisions are made for amounts remaining unclaimed at the year end. ## _**Taxation**_ As a registered charity, the church is exempt from income and corporation tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax is not recoverable by the church and is therefore included in the relevant costs in the Statement of Financial Activities. ## _**Fixed assets**_ Individual fixed assets costing £1,000 are recorded at cost. Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over expected useful economic life on a 'straight line' basis. Improvements to premises are depreciated over 10 years. ## _**Funds policy**_ ## _**Unrestricted funds:**_ The Church maintains a general unrestricted fund which represents funds which are expendable at the discretion of the trustees in furtherance of the Church's general purposes. A Trustees' Fund was created by the Trustees which will be maintained as a reserve against unexpected or unforeseen expenditure. ## _**Restricted funds:**_ Restricted funds are provided to the Church for particular purposes, and it is the policy of the trustees to carefully monitor the application of those funds in accordance with the restrictions placed on them. - 8 - ## **CAUSEWAY COMMUNITY CHURCH NOTES TO THE FINANCIAL STATEMENTS For the year ended 30th September 2021** |**Income**
Donations
Gift Aid received/receivable
**Investment income:**
Bank interest
**Other income:**
Hire of premises|Unrestricted
£
43,731
7,044
50,775
9
150
50,934|Restricted
£
7,250
1,812
9,062
-
-
9,062|Total
**2021**
£
50,981
8,856
59,837
9
150
59,996|Total
**2020**
£
40,860
8,653
49,513
109
170
49,792| |---|---|---|---|---| ## **2. Income** Restricted donations related to a donation received for the improvement of the church building: the installation of central heating (the costs of which have been capitalised). |**3.**
**Gifts to Christian causes**
OMF International (UK)
Wycliffe Bible Translators
Open Air Campaigners
Pastor Training International
Open Doors UK & Ireland|Unrestricted
£
750
400
400
-
-
1,550|Restricted
£
-
-
-
-
-
-|Total
**2021**
£
750
400
400
-
-
1,550|Total
**2020**
£
1,000
400
400
400
119
2,319| |---|---|---|---|---| The church made donations in respect of 'mission partners' working for one of the above agencies or to support the work of the agency in general. All donations made were to UK registered charities. |**4.**
**Church ministry**
Employment costs (see note 5.)
Other ministry expenses|Unrestricted
£
33,815
428
34,243|Restricted
£
-
-
-|Total
**2021**
£
33,815
428
34,243|Total
**2020**
£
19,154
552
19,706| |---|---|---|---|---| - 9 - ## **CAUSEWAY COMMUNITY CHURCH NOTES TO THE FINANCIAL STATEMENTS For the year ended 30th September 2021** |**Employees**
Wages and salaries
Pension costs
Rental of property for pastor
Training
Other employment costs|Unrestricted
£
15,840
475
16,200
1,300
-
33,815|Restricted
£
-
-
-
-
-
-|Total
**2021**
£
15,840
475
16,200
1,300
-
33,815|Total
**2020**
£
9,240
277
9,450
-
187
19,154| |---|---|---|---|---| **5. Employees** The pastor is the only employee of the church. His employment commenced on 1st March 2020. ## **6. Trustees' remuneration and expenses** No trustee received remuneration for services rendered during the year other than the pastor. Sometimes the trustees act as agents for the Church and make payments and purchases on its behalf and are reimbursed for this expenditure, e.g. payment for stationery, other consumables, utilities and donations. Such expenditure is not related to services provided by trustees and is, therefore, not disclosed. |**7.**
**Establishment costs**
Insurance
Printing postage & stationery
Website & IT
Repairs & maintenance
Equipment
Depreciation
Cleaning and gardening
Utilities
Miscellaneous
**8.**
**GOVERNANCE COSTS**
Licences and affliiation fees etc
Legal and professional|Unrestricted
£
723
289
647
984
-
725
1,576
837
-
5,781
Unrestricted
£
1,613
2,189
3,802|Restricted
£
-
-
-
-
-
-
-
-
-
-
Restricted
£
-
-
-|Total
**2021**
£
723
289
647
984
-
725
1,576
837
-
5,781
Total
**2021**
£
1,613
2,189
3,802|Total
**2020**
£
671
332
378
2,379
156
-
1,893
1,274
9
7,092
Total
**2020**
£
1,209
180
1,389| |---|---|---|---|---| - 10 - ## **CAUSEWAY COMMUNITY CHURCH NOTES TO THE FINANCIAL STATEMENTS For the year ended 30th September 2021** |**9.**
**FIXED ASSETS**
Unrestricted
£
**Improvements to premises**
**Cost:**
Brought forward
-
Additions
7,250
Carried forward
7,250
**Depreciation:**
Brought forward
-
Charged in year
725
Carried forward
725
**Net book value:**
Brought forward
-
Additions
7,250
Depreciation in year
(725)
Carried forward
6,525
**10. DEBTORS**
Prepayments
Gift Aid recoverable
Sundry debtors
**11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Accounts payable
Accruals
Other creditors|Restricted
£
-
-
-
-
-
-
-
-
-
-|Total
**2021**
£
-
7,250
7,250
-
725
725
-
7,250
(725)
6,525
**2021**
£
370
3,583
1,557
5,510
**2021**
£
357
282
199
838|Total
**2020**
£
-
-
-
-
-
-
-
-
-
-
**2020**
£
473
4,698
1,557
6,728
**2020**
£
146
-
190
336| |---|---|---|---| ## **12. CAPITAL COMMITMENTS** The church has no commitments for capital expenditure. ## **13. RELATED PARTY TRANSACTIONS** The cleaning of the interior of the church building was carried out by Critoph Cleaning Services, a business operated by the son of John Critoph and the brother of Spencer Critoph (both trustees). The total value of the work undertaken in the year amounted to £630 (2020: £ 150). Neither of the Critoph trustees were involved in awarding the work to Critoph Cleaning Services or agreeing the amounts paid. - 11 - ## **CAUSEWAY COMMUNITY CHURCH NOTES TO THE FINANCIAL STATEMENTS For the year ended 30th September 2021** ## **14. CHURCH BUILDING** The holding trustee of the building used by the church is Western Counties and South Wales Evangelisation Trust (Charity Commission registered number 234557). |**15. FUNDS**
UNRESTRICTED
General Fund
_Designated Fund:_
Trustees' Fund
RESTRICTED
Specific donations
Total funds|October
2020
£
74,800
30,000
104,800
-
-
104,800|Income
£
50,934
-
50,934
9,062
9,062
59,996|Expenditure
£
(45,376)
-
(45,376)
-
-
(45,376)|Transfers
9,062
-
9,062
(9,062)
(9,062)
-|September
2021
£
89,420
30,000
119,420
-
-
119,420| |---|---|---|---|---|---| Restricted donations related to a donation received for the installation of central heating. The donation, together with the associated Gift Aid claimed, was transferred to the General Fund on completion of the project. The amount of the gift including the Gift Aid received exceeded the costs of the installation but the total amount has been taken to General Fund in agreement with the donor. ## **16. CHARITY INFORMATION** Causeway Community Church is a Charitable Incorporated Organisation (CIO) which was registered with the Charity Commission on 19th February 2018 and commenced activities on 1st Janaury 2019. The CIO was formed by the members of Causeway Free Church (CFC) for the purposes of continuing the ministry of the church in Potters Bar. - 12 -