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2020-12-31-accounts

SILVERTON EVANGELICAL CHURCH CIO REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

SILVERTON EVANGELICAL CHURCH CIO

YEAR ENDED 31 DECEMBER 2020

CONTENTS

Page
Legal and Administrative Information 1
Trustees' Annual Report 2-5
Independent Examiner's Report 6
Statement of Financial Activities 7-8
Balance Sheet 9
Notes to the Accounts 10-14

SILVERTON EVANGELICAL CHURCH CIO

LEGAL AND ADMINISTRATIVE INFORMATION

YEAR ENDED 31 DECEMBER 2020

CHARITY NUMBER 1177666 ADDRESS School Road Silverton Exeter EX5 4JH TRUSTEES T Browne (appointed 6 December 2020 R Carne V Miller A Rotheray (resigned 6 December 2020) R Salisbury (Chair) KEY MANAGEMENT A Mathers Church leader and community worker BANKERS Barclays Bank Plc 3 Bedford Street Exeter SOLICITORS Gilbert Stephens LLP 15-17 Southernhay East Exeter EX1 1QE INDEPENDENT EXAMINER Matthew Melksham ACCA Bush & Co Limited Chartered Accountants 2 Barnfield Crescent Exeter EX1 1QT

[1 ]

SILVERTON EVANGELICAL CHURCH CIO TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report together with the financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out on pages 10 and 11 and comply with the Church Constitution, the Charities Act 2011 and the requirements of the Statement of Recommended Practice "Accounting and Reporting by Charities" (FRS 102). The legal and administrative information set out on page 1 forms part of this report.

Objectives and Policies

The principal purpose of the Church is the advancement of the Christian faith through preaching and teaching of the Gospel and by supporting mission at home and overseas. The Church Constitution is supported by a core values document which sets out our vision as "We are a family of Christians worshipping God, enabled by the Holy Spirit to follow Jesus. We are committed to growing in maturity together in Christ through the study of the bible and prayer. In our daily lives we desire to share God's love, reaching out in service to our local community and beyond". In planning our activities, we consider the Charity Commission’s guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.

Organisation and Structure

The Church is overseen by Trustees who are all members of the Church. New Trustees are nominated by the membership and their appointment, for a three year term, is voted upon by the members at the AGM. There is no maximum number of Trustees. At the end of their three year term of appointment a Trustee may be reappointed at the AGM.

The Church operates a membership. Individuals apply to join and they are visited by two Church members who report to the next Trustees' meeting and if their application is supported then they are welcomed as a member at the next Church communion service. Our membership is stable at approaching 60 with very few changes during the year.

The spiritual activities of the Church are delegated by the Trustees to a Ministry Team of nine people. The Ministry Team are drawn from the Church membership. New Ministry Team members are approached by the Trustees and if they agree to serve in this role and are recognised and ratified at the following Church meeting then they serve the Church as long as their endorsement is not rescinded. The Ministry Team meet on a monthly basis to discuss the life of the Church.

The activity of the Church is broken down into various aspects and teams drawn from the Church membership exist to develop each area. The teams responsible for Sunday services, home groups, prayer, pastoral care, children and young people's activities, community action and mission are led by the Ministry Team.

Other activities including finance, building management, communication, website management, the relationship with hirers of our church building and other practical issues are led by other members who, along with three of the Ministry Team, form the Resources Team. The team meets bimonthly. A Finance Team of four members meet quarterly and two of their members serve on the Resources Team.

The Trustees, Ministry Team and Resources Team meet together quarterly for fellowship, prayer and worship.

The Church holds an Annual General Meeting and typically one other Church members’ meeting each year to discuss the activity of the Church and these are very well attended.

[2 ]

SILVERTON EVANGELICAL CHURCH CIO TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and Plans

We can safely say that this year has been like no other. At the beginning of the year we had may plans for 2020 and then in March, as the impact of Coved-19 took hold in the country, the Government imposed a society lockdown and all physical church meetings stopped with immediate effect. Due to the sterling efforts of Andy Mathers, with support from some others, our services moved online and we started coffee on Zoom on Sunday morning at 11.30. Homegroups also moved onto the Zoom platform. It was so encouraging to see groups which had been meeting fortnightly starting to meet each week. Attendance was very high. Sadly groups for children were very difficult to organise and their week end away was cancelled as was the planned whole church week end away.

In September the rules on churches meeting were relaxed and after extensive planning we were able to open in what became known as “in a covid secure way”. Singing was banned, masks were mandatory and a one way entry and exit system was in place. Some preaching was live and some was pre-recorded. Online services continued for those who felt unable to attend meetings in person. Sadly a second lockdown was imposed in November and these meeting stopped again. Relaxation came again just in time for Christmas and we provided additional services as numbers to any service were capped at around 35. Numbers attending were quite small but appreciated by those who came along.

Throughout the year we were experimenting with doing things differently so we could keep in touch and support one another. Printed news sheets were produced and posted more regularly to those who were not able to access email. While many people used Zoom others did not and we reverted to phone calls more regularly. A churchwide WhatsApp group was set up and this became very active. We hope everyone felt connected and cared for even when they could not meet.

Our two clubs for children of different age groups operated on a Friday afternoon on a fortnightly basis were proving very popular but these closed in March and had not started again by the end of the year. The weekly toddler group had continued each Friday morning with increased numbers until this also closed until well after the end of the year.

Of course our AGM could not take place in person. Eventually after a lot of planning we met on Zoom on 6[th] December when over 30 church members met in homes with some in the church building. Whilst it felt rather strange we had a positive and upbeat meeting,

Last year we reported how we were working to raise funds to refurbish the toilets in the building as the last stage of our planned renovation. We hoped this would be an improvement for the Pre-School, and After School Club and other users as well as for Sunday services. However after the Pre-school and After School club stopped meeting in March they announced they planned to move to the village Primary School in September. With the building closed to all activity refurbishment would have been much easier to take place but all of a sudden our priorities changed and we needed more funds for IT facilities. Therefore this refurbishment has been shelved for the foreseeable future.

While the building was closed in November, and we had limited spaces for the Christmas services, we wanted to have a special Christmas activity for the community. Therefore Andy Mathers, with support from others, created a recorded community carol service with contributions from lots of people living in the village and it was great to have songs from the children at the primary school. This proved very popular in the village and with families spread around the country.

[3 ]

SILVERTON EVANGELICAL CHURCH CIO TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

Financial Review

Our unrestricted offerings and donations including tax refunds were £56,399 which was up on the previous year as members increased their giving to enable us to meet the loan repayments following the purchase of 6 Hillcrest. The majority of our offerings and donations are received on a regular basis. This is very encouraging as with limited services in the building we had reduced opportunities for cash collections.

We have hosted the Silverton Pre-School and After School Club for many years. As mentioned the club terminated its hire arrangement in 2020 so rental income reduced to £1,867.

Our missionary and other giving was £5,584 which included £1,000 brought forward from 2019.

As the building was closed for much of the year some expenses were reduced leading to an accounting surplus of £10,343 for the year. After allowing for a depreciation charge of £3,424 this created a cash surplus for the year of £13,767 which is an encouraging outcome. £12,133 was used to reduce the loan from SWBA, after allowing for an interest charge for the year. At the year end we had £24,325 held in bank accounts. In addition, a further £8,913 was due from HM Revenue and Customs under the gift aid scheme.

Investment Policy

The Finance Team have considered the most appropriate policy for investing any funds that will not be used for the day to day activities of the Church. They are held in Barclays Bank accounts as it is not possible to generate anything other than minimal interest from any appropriate charity bank accounts.

Reserves Policy

It is the policy of the Church to maintain reserves of at least two months’ normal expenditure which includes our monthly loan repayments. The balance held as unrestricted funds at the year end was £478,343 but only current assets (excluding the loan) of £31,504 is regarded as free reserves and this is reduced by the designated reserves of £3,000 (see note 3) to £28,504. Based upon these accounts, two months expenditure, excluding depreciation and including loan repayments, is £10,000. Due to the loan repayments we have a budgeted shortfall of almost £12,000. If this is deducted from the free reserves the balance matches our required reserves.

[4 ]

SILVERTON EVANGELICAL CHURCH CIO TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

Risk Review

The Trustees and Resources Team examine the major risks that the Church faces each financial year. These are brought to the attention of the Church Membership at either the AGM or Special Church Meetings.

Trustees' Responsibilities

Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the financial position of the charity during the year and of its financial position at the end of the year. In preparing those financial statements, the Trustees follow best practice and:

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

ON BEHALF OF THE TRUSTEES

Robert Salisbury Chairman

Date: 25 October 2021

[5 ]

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES AND MEMBERS OF

SILVERTON EVANGELICAL CHURCH CIO

I report on the accounts of the Church for the year ended 31 December 2020, which are set out on pages 7 to 14.

Respective Responsibilities of Trustees and Examiner

The charity’s trustees are responsible for the preparation of the financial statements. The charity’s trustees consider that an audit is not required for this year under (under Section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is required.

It is my responsibility to:

Basis of Independent Examiner’s Report

My examination was carried out in accordance with the General Directions given by the Charity Commissioner. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the financial statements present a “true and fair view” and the report is limited to those matters set out in the statements below.

Independent Examiner’s Statement

In connection with my examination, no matter has come to my attention:

Matthew Melksham ACCA Bush & Co Ltd Chartered Accountants 2 Barnfield Crescent Exeter EX1 1QT

Date: 25 October 2021

[6 ]

SILVERTON EVANGELICAL CHURCH CIO STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2020

Restricted Unrestricted Total Funds Restricted Unrestricted Total Funds
Funds Funds 2020 Funds Funds 2019
Note £ £ £ £ £ £
INCOME
Donations
Offerings and donations 650 47,048 47,698 34,715 40,659 73,374
Tax refunds - 9,351 9,351 8,411 9,328 17,769
Grant income - - - 10,000 1,100 11,100
Street Market donation - - - - 900 900
__ __ __ __ __ __
650 56,399 57,049 53,156 51,987 105,143
Investments
Bank Interest - 6 6 - 88 88
Rental income - 1,867 1,867 - 5,623 5,623
__ __ _____ __ __ __
650 58,272 58,922 53,156 57,798 106,857
Charitable Activities
Other income - 715 715 - 1,418 1,418
Weekend away - - - 7,810 - 7,810
__ __ __ __ __ __
TOTAL INCOME 650 58,987 59,637 60,966 59,116 120,082
__ __ __ __ __ __
EXPENDITURE ON
CHARITABLE ACTIVITIES
Missionary and charitable donations 7 - 5,584 5,584 60 4,550 4,610
Employment Costs
Salary - 24,000 24.000 - 23,005 23,005
Pension - 735 735 - 633 633
Housing rent - - - - 4,256 4,256
Housing other costs 2,773 2,773 2,145 2,145
House repairs - 1,572 1,572 - 256 256
Travel costs - 415 415 - 262 262
Training fees - 1,121 1,121 - 1,065 1,065
Church Building Expenses
Light and heat - 1,296 1,296 - 1,776 1,776
Water rates - 415 415 - 796 796
Insurance - 712 712 - 969 969
Repairs and renewals - 1,269 1,269 - 1,907 1,907
Depreciation - 3,424 3,424 - 2,838 2,838
Administration expenses
Visiting speakers - 120 120 - 486 486
Children teaching materials - 396 396 - 295 295
Leadership training costs - 60 60 - 591 591
Printing and literature - 232 232 - 979 979
Subscriptions & DBS checks - 1,097 1,097 - 799 799
Church events - 145 145 - 1,314 1,314
Professional fees - - - - - -
Sundry costs - 318 318 - 159 159
Website - 243 243 - 243 243
Bank charges - - - - 385 385
Loan interest - 2,868 2,868 - 455 455
Church weekend away - - - 8,055 - 8,055
_ _ _ _ _ _
TOTAL EXPENDITURE - 49,294 49,294 8,115 50,164 58,279
_ _ _ _ _ _
NET INCOME/EXPENDITURE 650 9,693 10,343 52,851 8,952 61,803
Transfer between funds 4 - - - (114,041) 114,041 -
__ __ __ __ __ ___
Net movement in funds 650 9,693 10,343 (61,220) 123,023 61,803
TOTAL FUNDSBROUGHT FORWARD 1,088 466,912 468,800 62,308 343,889 346,879
___ ___ ___ ______ __ __
TOTAL FUNDS CARRIED FORWARD 1,738
__		 476,605
__		 478,343
__		 1,088
_		 466,912
__		 468,800
__

[7 ]

SILVERTON EVANGELICAL CHURCH CIO

BALANCE SHEET AS AT 31 DECEMBER 2020

Note
£
FIXED ASSETS
Tangible Fixed Assets
2
CURRENT ASSETS
Gift Aid refunds
8,913
Prepayment
495
Cash at bank:
Deposit
12,008
Current
12,317
___
33,733
_
CREDITORS amounts falling due within
one year
Accruals
Loans
2,229
12,772
_
15,001
_
NET CURRENT ASSETS
TOTAL
ASSETS
LESS
CURRENT
LIABILITIES
CREDITORS amounts due more than
one year
Loans
TOTAL ASSETS
FUNDS
Unrestricted Funds
Designated Funds:
3
Church building repairs
Total unrestricted funds
Restricted Funds
4		 2020
£
£
580,161
8,828
2,392
2
23,028
_
34,250
_
3,615
15,000
_
18,615
_
18,732
_
598,893
120,550
______
478,343
_
473,605
3,000
_
476,605
1,738
_
478,343
_		 2019
£
582,820
15,635
__
598,455
130,455
_
468,000
_
456,912
10,000
__
466,912
1,088
__
468,000
______

The notes on pages 10-14 form an integral part of these accounts.

These accounts were approved by the trustees on 25 October 2021 and signed on their behalf by

Robert Salisbury

[8 ]

SILVERTON EVANGELICAL CHURCH CIO NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

The financial statements have been prepared under the historic cost convention except for the freehold property which has been included in the accounts at its current valuation as determined by the Trustees. The financial statements have also been prepared in accordance with applicable accounting standards, the Charities Act 2011, the Statement of Recommended Practice: "Accounting and Reporting by Charities" (FRS102) and Financial Reporting Standard 102 (FRS102).

The accounts 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 the main 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.

The financial statements have been prepared on a going concern basis as there are no material uncertainties about the charity's ability to continue operating.

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

Creditors 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 are recognised at their settlement amount.

Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Incoming Resources

Voluntary Income

Collections are recognised when received by or on behalf of the Church.

Investment Income

Interest entitlements are accounted for as they accrue.

Resources Used

Expenditure is included on an accruals basis.

[9 ]

SILVERTON EVANGELICAL CHURCH CIO NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (continued)

Incoming Resources (continued)

Depreciation

No depreciation is provided on the freehold property. It is the Church's policy to regularly incur expenditure on the maintenance and improvement of the property. The Trustees consider that the life of the asset is so long and its residual value is so high that the depreciation is insignificant.

Depreciation is calculated to write off the cost of other Fixed Assets over their effective useful lives as follows:

Fixtures, Fittings and Equipment

Fixtures, Fittings and Equipment 10 years straight line 20 years straight line Audio and computer equipment 3 years straight line

Expenditure on assets over £300 is capitalised.

Unrestricted and Restricted Funds

Unrestricted funds, including designated funds, represent the funds of the Church that are not subject to any restrictions regarding their use and are available for application on the general purposes of the Church.

Restricted Funds are where the income has been raised for specific purposes, for individuals or for specific events.

2. TANGIBLE FIXED ASSETS

COST
As at 1 Jan 2020
Additions
As at 31 Dec 2020
DEPRECIATION
As at 1 Jan 2020
Charge for Year
As at 31 Dec 2020
NET BOOK VALUE
As at 31 Dec 2020
As at 31 Dec 2019		 Freehold
Property
Fixtures,
Fittings &
Equipment
Audio &
Computer
Equipment
£
£
£
557,051
62,391
2,296
-
-
765
_
_
_
557,051
62,391
3,061
_
_
_
-
36,807
2,111
-
2,983
441
_
_
_
-
39,790
2,552
_
_
_
557,051
22,601
509
_
_
_
557,051
25,584
185
_
_
_		 Total
£
621,738
765
_
622,503
_

38,918
3,424
_
42,342
_

580,161
__

582,820
__

The Church has elected, in accordance with section 35.10(d) of FRS102, to use the carrying value on 1 January 2015, the date of transition to FRS102, of the freehold property previously carried at a valuation, as their deemed cost.

10

SILVERTON EVANGELICAL CHURCH CIO NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2019

3. DESIGNATED FUND

A fund of £3,000 was designated for repairs of the Church Building based upon the assessment of repairs anticipated in 2021.

4. MOVEMENT IN FUNDS

2020
Unrestricted
General fund
Restricted
Weekend away
Family Support
Fund
Total
2019
Unrestricted
General fund
Restricted
Weekend away
Family Support Fund
Hillcrest Building
Fund
Total		 Brought
forward
£
343,889
332
1,061
60,915
__
406,197
__		 Brought
Forward
£
466,912
87
1,001
__
468,000
__
Income
£
59,116
7,810
-
53,156
__
120,082
__		 Income
Expenditure
£
£
59,637
(49,294)
650
-
-
-
__
_
59,637
(49,294)
__
_
Expenditure
Transfer
£
£
(50,164)
114,071
(8,055)
-
(60)
-
-
(114,071)
_
_
(58,279)
-
_
_		 Carried
forward
£
480,247
737
1,001
__
481,605
__
Carried
forward
£
466,912
87
1,001
-
__
468,000
__

The Family Support fund provides support to Church members in need.

The Weekend Away fund is used for the annual Church weekend away which did not take place in 2020 and for the week end for young people which was also deferred.

The Hillcrest Building fund was set up to enable the church to purchase the house occupied by the full-time employee. The purchase took place during the year and all of the funds were used. No further restriction applied to the use of the fund, so it was transferred to unrestricted reserves.

11

SILVERTON EVANGELICAL CHURCH CIO NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2019

5. EMPLOYMENT COSTS

A salary of £24,500 (2019: £23,005) was paid to the Church Leader and Community Worker and an employer NIC cost of £Nil (2019: £Nil) was incurred due to the Employer Allowance.

An employer’s pension contribution of £735 (2019 £633) was made under the

Workplace Pension Rules.

The average number of employees was 1 (2019: 1). No employee received employee benefits of more than £60,000.

6. TRUSTEES' REMUNERATION AND EXPENSES

No Trustee received any remuneration from the charity during the year.

There were no Trustee expenses during the year except for reimbursement of small expenditure incurred on behalf of the Church by individual Trustees.

7. MISSIONARY AND CHARITABLE DONATIONS

Gifts are made to various individuals and organisations who have a connection with the Church. The major donations were as follows:

Restricted
Unrestricted
£
£
Church Family Support
-
-
St Petrocs
-
-
TABS
-
571
Mission to Europe
-
-
Mpongwe’s People
-
-
UCCF
-
-
Nottingham Road Trust
-
-
Scripture Union
-
-
M Perkins
-
-
Baptist Home Mission Fund
-
2,000
Tearfund
-
571
Lifewords
-
500
Exeter Cathedral
-
300
Exeter Food Bank
-
100
Brunel Manor
-
300
Individuals
-
1,242
__
_
-
5,584

___		 2020
£
-
-
571
-
-
-
-
-
-
2,000
571
500
300
100
300
1,242
__
5,584
____		 2019
£
60
100
750
750
750
250
300
300
350
1,000
-
-
-
-
-
-
__
4,550
____

12

SILVERTON EVANGELICAL CHURCH CIO NOTES TO THE ACCOUNTS YEAR ENDED 31 DECEMBER 2019

8. SUMMARY OF FUNDS

2020
Tangible
Fixed
Assets
Current
Assets
Current
Liabilities
Non-Current
Liabilities
£
£
£
Unrestricted
General fund
580,161
31,995
(15,001)
(120,550)
Restricted
Weekend
away
737
-
-
Family
Support
-
1,001
-
-
__
_
______
______
Total
580,161
33,733
(15,001)
(120,550)
__
_
_
__
2019
Tangible
Fixed
Assets
Current
Assets
Current
Liabilities
Non-Current
Liabilities
£
£
£
Unrestricted
General fund
582,820
33,162
(18,615)
(130,455)
Restricted
Weekend
away
-
87
-
-
Family
Support
-
1,001
-
-
__
_
______
______
Total
582,820
34,250
(18,615)
(130,455)
__
_
_
__		 Total
£
476,605
737
1,001
__
478,343
__
Total
£
466,912
87
1,001
__
468,000
__

13