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2021-08-31-accounts

Christ Church Hemel

Report of the Trustees and

Financial Statements for the year ended 31 August 2021

Christ Church Hemel is a Charitable Incorporated Organisation. Registered Charity Number 1178976

Christ Church Hemel

Contents of the Report of the Trustees and Financial Statements for the year ended 31 August 2021


Report of the Trustees


Independent Examiner’s Report


Statement of Financial Activity

Balance Sheet


Cash Flow Statement


Notes to the Financial Statements
 Page
1 to 4
5
6
7
8
9 to 14

CHRIST CHURCH HEMEL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

The trustees present their report together with the financial statements of the charity for the year ended 31 August 2021. The financial statements have been prepared in accordance with the accounting policies set out on page 8 of the attached financial statements and comply with the charity's constitution, applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) laws and 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 United Kingdom and Republic of Ireland (FRS 102).

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

1178976

Principal address

2 Swan Mead Hemel Hempstead HP3 9DG

Trustees

S. Buckley P. Burley R. Matheson D. Couch (appointed 1[st] September 2020)

Independent Examiner

John Caladine FCCA CTA FCIE Caladine Limited Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF

Treasurer

P. Burley (to 28[th] May 2021) R. Matheson (from 28[th] May 2021)

Bankers

Lloyds Bank plc 120 Lewisham High Street Lewisham SE13 6JG

Page 1

CHRIST CHURCH HEMEL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The church is a Charitable Incorporated Organisation and its governing document is a written Constitution approved and adopted at a church members' meeting held on 28[th] March 2018. The church was registered with the Charity Commission on 28th June 2018, with registered charity number 1178976.

The church began operating as an independent charity on 1[st] September 2018, having started meeting as a congregation of Spicer Street Church (registered charity number 1173938) in October 2014.

Recruitment and appointment of new trustees

Recommendations to appoint new Elders (who are also the Trustees) are brought to the church members' meeting by the existing Eldership. They are appointed at a church members’ meeting via a resolution that must be passed by a 75% majority of the quorum present at the meeting.

Induction and training of new trustees

New Elders are briefed as necessary on their obligations under charity law, the Constitution and the decisionmaking processes of the church.

Organisational structure

The Elders regularly review and discuss the affairs of the church. At church members' meetings, held regularly throughout the year, members review and make decisions concerning the affairs of the church in response to the leadership and work of the Elders and Treasurer.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The trustees are aware of the Charity Commission's guidance on public benefit and consider that the ministries and activities of the church in support of its objectives are consistent with that guidance.

The primary objective of the church is the advancement of the Christian faith primarily but not exclusively in Hemel Hempstead and the surrounding neighbourhood, by teaching the Bible and promoting prayer and fellowship among believers. It also seeks to support other activities that put the Christian faith into practice, including the advancement for public benefit of religious education and the care of those who are aged, poor, sick or disabled.

The church's ministries

During the year, the church had a pastor, Sam Buckley, and an assistant pastor, Dave Couch, who were primarily responsible for maintaining a regular ministry and pastoral care for the congregation.

The church seeks to provide:

  1. A programme of meetings and events which seeks to deepen the spiritual lives of the individual members and provide opportunities for non-members to hear the Christian gospel, including:

  2. morning and evening meetings each Sunday;

  3. morning Sunday school;

  4. a mid-week programme, including bible study, prayer and teaching, which normally meet in members' homes.

  5. Various other teaching and outreach ministries in and around the local area, including Christianity Explored courses for those interested in the Christian faith and services in care homes for the elderly.

  6. A mid-week children’s club.

  7. Encouragement to its members to pray for the wider church and the needs of the world.

  8. Support for a missionary family working in Zambia.

  9. Support for a number of other organisations working in gospel ministry and care for the underprivileged in the UK and around the world.

Page 2

CHRIST CHURCH HEMEL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

Grantmaking

The church supports a number of individuals and organisations. Those who receive grants are regularly reminded that their support is regularly reviewed and may change according to circumstances and the availability of funds.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the year ended 31 August 2021, the church has continued to focus on teaching the Bible and promoting prayer and fellowship, including through the teaching and outreach ministries outlined above. Many of these activities continued online during the year due to the Covid-19 pandemic but the Sunday morning meetings were able to resume in person for most of the year subject to government guidelines, as well as being streamed live for those who were unable to meet in person.

Due to the Covid-19 pandemic, some activities were not possible at all during the year, namely services in local care homes and the midweek children’s’ club.

FINANCIAL REVIEW

Reserves policy

In September 2021, the trustees adopted a reserves policy to maintain a minimum level of reserves that is equivalent to 3-4 months’ general expenditure, which is sufficient to allow the church to operate without being affected by the uneven nature of the cash flow through the year. At the year-end, the church had unrestricted general reserves of £61,182, including cash reserves of £59,489, which is equivalent to 8-9 months’ general expenditure. The church is currently using the excess reserves to support the appointment of the assistant pastor.

Principal funding sources

Regular funding of the ongoing ministry of the church is dependent on donations made by the church members and other donors, which for the year ended 31 August 2021 totalled £83,115. During the year, the church also received funding of £14,000 from trusts and charitable organisations towards the support of the church’s assistant pastor.

Housing fund

During the year, the trustees commenced work on purchasing a property to house the pastor and his family, to replace the current rented property. The trustees designated £20,000 from the church’s reserves for this purpose during the year. The proposed scheme requires permission from the Charity Commission and the trustees are currently preparing an application to the Charity Commission for this permission.

Page 3

CHRIST CHURCH HEMEL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

TRUSTEES’ RESPONSIBILITIES

Charity law requires Trustees to prepare accounts which give a true and fair view of the state of affairs of the Charity and of its income and expenditure for the financial year. In doing so, the Trustees are required to:

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the accounts 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. The Trustees are also required to be aware of the Charity Commission’s guidance on public benefit and to take it into account in their decision-making on behalf of the church.

Approved by the trustees of Christ Church Hemel on 8[th] February 2022 and signed on its behalf by:

R Matheson - Trustee

S Buckley - Trustee

Page 4

CHRIST CHURCH HEMEL

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

I report to the Trustees on my examination of the financial statements of Christ Church Hemel (the charity) for the period ended 31 August 2021.

Responsibilities and basis of report

As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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 financial statements to be reached.

John Caladine FCCA CTA FCIE Caladine Limited Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF

Dated:

Page 5

CHRIST CHURCH HEMEL

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

STATEMENT OF FINANCIAL ACTIVITY

General Fund
Housing Fund
£
£
INCOME
Notes
General Giving
2
83,115
Other Income and Grants
3
665
Income Total
83,780
0
EXPENDITURE
Pastoral Team
4
40,680
Ministry
5
18,376
Property
6
25,861
3,636
Expenditure Total
84,917
3,636
Net Income/(Expenditure)
(1,137)
(3,636)
Transfers Between funds
(20,000)
20,000
Net movement in funds
(21,137)
16,364
Reconciliation of funds
Total funds brought forward
84,149
0
Total funds carried forward
16
63,012
16,364
Unrestricted
10,12		 Restricted
Total
£
£
7,886
91,001
14,000
14,665
21,886
105,666
14,000
54,680
10,962
29,338
-
29,497
24,962
113,515
(3,076)
(7,849)
-
-
(3,076)
(7,849)
3,115
87,264
39
79,415		 2019-20
Total
£
76,691
22,281
98,972
53,840
23,451
25,696
102,987
(4,015)
-
(4,015)
91,279
87,264

Page 6

CHRIST CHURCH HEMEL

BALANCE SHEET AS AT 31 AUGUST 2021

BALANCE SHEET AS AT 31 AUGUST 2021
Notes
Fixed Assets
Equipment
14
Current Assets
Bank Balances & Cash
Accrued Income
8
30,233
Prepayments
4,021
Current Liabilities
Accruals
(4,023)
Deferred Income
9
(10,000)
Net Current Assets
NET ASSETS
Capital and Reserves
Unrestricted Reserves
Total General Reserves
10
Total Designated Reserves
11
Restricted Reserves
12		 2020-21
£
1,693
57,491
34,254
91,745
(14,023)
77,722
79,415
61,182
18,194
79,376
39
79,415		 28,303
5,039
(1,184)
(10,000)		 2019-20
£
2,211
62,896
33,341
96,237
(11,184)
85,053
87,264
82,949
1,200
84,149
3,115
87,264

Approved by the trustees of Christ Church Hemel on 8th February 2022 and signed on its behalf by:

R. Matheson - Trustee S Buckley - Trustee

Page 7

CHRIST CHURCH HEMEL

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Cash flows from operating activities
Net Income for the financial year
Depreciation charges
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Bank interest received
Cash from operations
Cash flow from investing activities
Bank interest received
Purchase of capital equipment
Net cash flow from investing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period		 2020-21
£
(7,849)
737
(913)
2,839
(104)
(5,290)
104
(219)
(115)
(5,405)
62,896
57,491		 2019-20
£
(4,015)
-
(15,817)
(451)
(31)
(20,314)
31
(2,211)
(2,180)
(22,494)
85,390
62,896

Page 8

CHRIST CHURCH HEMEL

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting Policies

Basis of preparation

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The charity constitutes a public benefit entity as defined by FRS 102.

Incoming resources

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Income is accounted for when received, with the exception of income tax recoverable on gift aid donations, and interest arising on deposits which are accounted for on an accruals basis.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received.

Resources expended

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. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. Grants are recognised as a liability when the church is under an obligation to make a payment or the grant is paid over.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. No depreciation is charged in the year of purchase.

IT/AV equipment - 33⅓% on cost

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.

Page 9

CHRIST CHURCH HEMEL

NOTES TO THE FINANCIAL STATEMENTS (continued)

1 Accounting Policies (continued)

Creditors

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt.

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. Funds designated for a particular purpose by the church are also unrestricted.

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.

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 their main affiliation to another body nor those that are informal gatherings of church members.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. The assets of the scheme are held in a separately administered fund.

2 General Giving
Donations
Gift Aid
GASDS
3 Other Income
Grants/Donations
Gift Aid
Interest
Other income		 Unrestricted
£
69,983
13,132
-
83,115
-
-
104
561
665		 Restricted
Total
£
£
6,512
76,495
1,366
14,498
8
8
7,886
91,001
14,000
14,000
-
-
-
104
-
561
14,000
14,665		 2019-20
Total funds
£
62,939
13,216
536
76,691
21,000
1,250
31
-
22,281

Page 10

CHRIST CHURCH HEMEL

NOTES TO THE FINANCIAL STATEMENTS (continued)

Unrestricted
Restricted
Total
4 Pastor & Trainee Pastor
£
£
£
Stipends
34,177
14,000
48,177
Employers Nat.Insurance
159
-
159
Pension
6,344
-
6,344
40,680
14,000
54,680
No employee received employee benefits of more than £60,000 (2019-20: nil).
5 Ministry
£
£
£
Travel
222
-
222
Preacher Fees
755
-
755
Evangelism
482
-
482
Reference Material
937
-
937
Training/Conferences
5,600
-
5,600
Mission Support
1,198
10,962
12,160
Equipment & Repairs
124
-
124
Church Catering
-
-
-
Church Sundry
1,013
-
1,013
Church Weekend Away
-
-
-
Church Office
2,906
-
2,906
Church Rent
2,684
-
2,684
FIEC
1,518
-
1,518
Fellowship Fund
200
-
200
Depreciation
737
-
737
18,376
10,962
29,338
6 Property
£
£
£
Manse-Rent
22,740
22,740
Manse-Council Tax/Water
3,121
3,121
25,861
0
25,861
Housing Fund
Fees
3,636
-
3,636		 2019-20
Total
£
46,719
971
6,150
53,840
£
1,418
795
716
863
4,331
3,255
885
95
1,181
1,996
2,458
4,200
1,258
-
-
23,451
£
22,740
2,956
25,696
-

Page 11

CHRIST CHURCH HEMEL

NOTES TO THE FINANCIAL STATEMENTS (continued)

7 Trustees' remuneration and benefits
Stipend
£
S Buckley
27,909
D Couch
20,268
The church's constitution authorises the payment of remuneration to Trustees.
S. Buckley and D. Couch were the only Trustees to receive remuneration.
S. Buckley also received the benefit of housing provided by the church, the costs
of which are detailed in note 6 (Property) above.
£
Trustee's expenses (included in note 5 above)
2020-21
S Buckley
918
D Couch
625
The average monthly number of employees (including Trustees) during the year
was as follows:
2020-21
Pastoral Team
2
8 Debtors: amounts falling due within one year
£
Accrued income
2020-21
Gift Aid/GASDS
30,233
9 Creditors: amounts falling due within one year
£
Deferred income
2020-21
Spicer Street Chuch Grant for Assistant Pastor
10,000
10 Unrestricted Reserves
General
Designated
Reserves
Reserves
£
£
Opening balance
82,949
1,200
Incoming resources
83,780
Outgoing resources
(84,717)
(3,836)
Housing Fund Transfer
(20,000)
20,000
Fellowship Fund transfer
(830)
830
61,182
18,194
11 Designated Reserves
Brought forward
Transfers
Outgoing
Resources
£
£
£
Housing Fund
0
20,000
3,636
Fellowship Fund
1,200
830
200
1,200
20,830
3,836		 Pension
£
3,997
2,347
£
2019-20
1,250
-
2019-20
2
£
2019-20
28,303
£
2019-20
10,000
Total
£
84,149
83,780
(88,553)
0
0
79,376
Total
£
16,364
1,830
18,194

The Housing Fund has been set up to purchase a property to use as a Manse. The Fellowship Fund is used to express love and concern for one another and those with whom the church is in touch.

Page 12

CHRIST CHURCH HEMEL

NOTES TO THE FINANCIAL STATEMENTS (continued)

12 Restricted Reserves

Brought Forward
01/09/2020
£
a Assistant Pastor
0
b DENS
360
c Open doors
250
d Crosslinks (A&R Symons)
2,505
e Bibles for Children
0
3,115		 Incoming
Resources
£
14,000
-
3,756
3,091
1,039
21,886		 Outgoing
Resources
£
14,000
360
4,006
5,596
1,000
24,962		 Closing
31/08/2021
£
0
0
0
0
39
39

a Money received to support the assistant pastor.

b Money received to support the Dacorum Emergency Night Shelter. c Money received to help alleviate Christians suffering in the third world. d Money received for the support of a mission partner in Zambia.

e Money received towards the purchase of bibles for presentation to the pupils of Hemel Hempstead schools.

13 Analysis of net assets between funds

Cash at bank and in hand
Other net assets/liabilities
Tangible Fixed Assets
Cost at 1/9/2020
Additions
Disposals
Cost at 31/8/2021
Depreciation at 1/9/2020
Depreciation for year
Depreciation at 31/8/2021
Net book value at 1/9/2020
Net book value at 31/8/2021		 General
Funds
£
40,632
20,550
61,182		 Designated
Funds
£
18,194
-
18,194
Equipment
£
2,211
219
-
2,430
0
737
737
2,211
1,693		 Restricted
Funds
£
(1,335)
1,374
39
Total
£
2,211
219
-
2,430
0
737
737
2,211
1,693		 Total Funds
31/08/2021
£
57,491
21,924
79,415

14 Tangible Fixed Assets

15 Operating Leases

The church rents a property as a manse to house the pastor (S. Buckley) and his family. Rental payments for the year to 31st August 2021 are shown in note 6 above as Manse-Rent. During the year, the tenancy was changed to a periodic tenancy at an unchanged rent of £1895 per calendar month. The tenancy may be terminated by the church on giving 1 month's notice.

Page 13

CHRIST CHURCH HEMEL

NOTES TO THE FINANCIAL STATEMENTS (continued)

16 Statement of Financial Activity - Comparative figures for 2019-20

INCOME
General Giving
Other Income and Grants
Income Total
EXPENDITURE
Pastoral Team
Ministry
Property
Expenditure Total
Net Income/(Expenditure)
Transfers Between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
£
70,996
31
71,027
31,540
20,196
25,696
77,432
(6,405)
-
(6,405)
90,554
84,149		 Restricted
Total
£
£
5,695
76,691
22,250
22,281
27,945
98,972
22,300
53,840
3,255
23,451
25,696
25,555
102,987
2,390
(4,015)
-
-
2,390
(4,015)
725
91,279
3,115
87,264

17 Independent Examination

These accounts include an amount of £840 for the independent examination fee.

18 Related Party Transactions

As outlined in Note 7, two of the trustees are also employees of the Church and the remuneration and expenses paid to them are disclosed in Note 7.

In addition to this, three trustees were reimbursed for general Church costs of £2,823 (2019-20: £4,216) which includes the amounts declared as expenses in Note 7.

Donations from trustees and their related parties amounted to £21,087 during the year (2019-20: £21,855).

Page 14