Annual Report and Financial Statements for the Year Ended 31 August 2021
Southern Cross Evangelical Church
Charity registration number: 1179391
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
SOUTHERN CROSS EVANGELICAL CHURCH
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 17 |
SOUTHERN CROSS EVANGELICAL CHURCH
Reference and Administrative Details
Trustees Rev Stephen Packham (resigned 14 December 2020) Christina Ann Pepper Lorraine Mary Voak Christine Hayward Brenda Ann Gates Alison Tester Principal Office 103 Trafalgar Road Portslade Brighton BN41 1GU Charity Registration 1179391 Number
Independent Examiner Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF Bankers CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ
Page 1
SOUTHERN CROSS EVANGELICAL CHURCH
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 31 August 2021.
Structure, governance and management
Nature of governing document
Southern Cross Evangelical Church is a registered charity, number 1179391, and is constituted under a CIO constitution.
Recruitment and appointment of trustees
The management of the charity is the responsibility of the trustees who are elected and co-opted under the terms of the constitution.
Organisational structure
The day to day management of the charity is delegated by the trustees to the Pastor and other church employees.
Relationships with related parties
The Fellowship of Independent Evangelical Churches Limited (FIEC)
The charity has appointed The Fellowship of Independent Evangelical Churches Limited (FIEC) as its holding trustee and adheres to the Basis of Faith of FIEC.
Risk management
The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Objectives and activities
Objects and aims
The principal object of the charity is the advancement of the Christian faith in accordance with the Basis of Faith primarily, but not exclusively, within Portslade and the surrounding neighbourhood.
Objectives, strategies and activities
The church is engaged in its fulfillment of its objects through gathering for worship services, preaching, teaching and prayer and working in the community to make known the gospel of Jesus Christ.
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
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SOUTHERN CROSS EVANGELICAL CHURCH
Trustees' Report
Achievements and performance
During lockdown periods due to Covid, Sunday morning services and Tuesday evening prayer meetings were held on zoom. In May the church opened up to have live services on a Sunday morning. The church continued to support the work in Dandora, Kenya. The pre-school is also doing well. The youth group has continued over the year, again during lockdown was held on zoom, but since March 2021 have met in person on a Friday evening.
Unfortunately, a temporary halt had to be called to other activities due to the coronavirus pandemic. We do not anticipate that our financial position will be adversely affected, as our members have been giving to the church faithfully despite the present situation.
Financial review
Income for the year amounted to £39,716 (2020 - £44,069) while expenditure was £29,143 (2020 - £51,109). The surplus of £10'573 (2020 - deficit £7,040) was added to funds brought forward resulting in unrestricted funds of £299,101 and restricted funds of £4,410 at the year end.
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
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SOUTHERN CROSS EVANGELICAL CHURCH
Trustees' Report
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities 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 the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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 annual report was approved by the trustees of the charity on 9 November 2021 and signed on its behalf by:
......................................... ......................................... Christina Ann Pepper Alison Tester Trustee Trustee
Page 4
SOUTHERN CROSS EVANGELICAL CHURCH
Independent Examiner's Report to the trustees of Southern Cross Evangelical Church
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 August 2021 which are set out on pages 6 to 17.
Respective responsibilities of trustees and examiner
As the charity’s trustees of Southern Cross Evangelical Church you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Southern Cross Evangelical Church'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 giving me cause to believe that in any material respect:
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accounting records were not kept in respect of Southern Cross Evangelical Church as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting 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.
...................................... G W Schulz ACMA
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
9 November 2021
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SOUTHERN CROSS EVANGELICAL CHURCH
Statement of Financial Activities for the Year Ended 31 August 2021
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 2 15,206 Charitable activities 3 894 Investment income 4 19,679 Total income 35,779 Expenditure on: Charitable activities 5 27,338 Total expenditure 27,338 Net income/(expenditure) 8,441 Net movement in funds 8,441 Reconciliation of funds Total funds brought forward 290,660 Total funds carried forward 13 299,101 |
Restricted funds £ 3,937 - - 3,937 1,805 1,805 2,132 2,132 2,278 4,410 |
Total 2021 £ 19,143 894 19,679 39,716 29,143 29,143 10,573 10,573 292,938 303,511 |
Total 2020 £ 23,706 1,234 19,129 |
|---|---|---|---|
| 44,069 | |||
| 51,109 | |||
| 51,109 | |||
| (7,040) | |||
| (7,040) 299,978 |
|||
| 292,938 |
The notes on pages 8 to 17 form an integral part of these financial statements. Page 6
SOUTHERN CROSS EVANGELICAL CHURCH
Balance Sheet as at 31 August 2021
| Note Fixed assets Tangible assets 9 Current assets Debtors 10 Cash at bank and in hand Creditors: Amounts falling due within one year 11 Net current assets Net assets Funds of the charity: Restricted income funds Restricted funds Unrestricted income funds Unrestricted funds Total funds 13 |
2021 £ 259,023 2,023 43,295 45,318 (830) 44,488 303,511 4,410 299,101 303,511 |
2020 £ 264,593 1,890 27,285 |
|---|---|---|
| 29,175 (830) |
||
| 28,345 | ||
| 292,938 | ||
| 2,278 290,660 |
||
| 292,938 |
The financial statements on pages 6 to 17 were approved by the trustees, and authorised for issue on 9 November 2021 and signed on their behalf by:
......................................... Christina Ann Pepper Trustee
......................................... Alison Tester Trustee
The notes on pages 8 to 17 form an integral part of these financial statements. Page 7
SOUTHERN CROSS EVANGELICAL CHURCH
Notes to the Financial Statements for the Year Ended 31 August 2021
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Southern Cross Evangelical Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Gift aid
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
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SOUTHERN CROSS EVANGELICAL CHURCH
Notes to the Financial Statements for the Year Ended 31 August 2021
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
Tangible fixed assets
Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
| Asset class | Depreciation method and rate |
|---|---|
| Land and buildings | 2% straight line |
| Furniture and equipment | 25% straight line |
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Liabilities
Liabilities 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.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
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SOUTHERN CROSS EVANGELICAL CHURCH
Notes to the Financial Statements for the Year Ended 31 August 2021
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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SOUTHERN CROSS EVANGELICAL CHURCH
Notes to the Financial Statements for the Year Ended 31 August 2021
2 Income from donations and legacies
| Unrestricted funds Restricted Total Designated £ General £ funds £ 2021 £ Donations and legacies; Donations 45 12,567 3,937 16,549 Gift aid reclaimed - 2,594 - 2,594 45 15,161 3,937 19,143 3 Income from charitable activities Unrestricted funds Total Designated £ General £ 2021 £ Youth activities 609 285 894 4 Investment income Unrestricted funds Total Designated £ General £ 2021 £ Interest receivable and similar income; Interest receivable on bank deposits 87 - 87 Income from rents - 19,592 19,592 87 19,592 19,679 |
Total 2021 £ 16,549 2,594 |
Total 2020 £ 20,295 3,411 |
|
|---|---|---|---|
| 19,143 | 23,706 | ||
| Total 2020 £ 1,234 |
|||
| Total 2020 £ 161 18,968 |
|||
| 19,129 |
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SOUTHERN CROSS EVANGELICAL CHURCH
Notes to the Financial Statements for the Year Ended 31 August 2021
5 Expenditure on charitable activities
| Unrestricted funds Note Designated £ General £ Visiting speakers - 500 Minister's expenses - 151 Books and resources - 94 Youth activities 491 - Subscriptions & fees - 374 Light, heat & water - 2,792 Repairs & maintenance - 3,471 Post, print & stationery - 611 Computer costs - 662 Telephone - 668 Insurance - 1,584 Legal and professional fees - - Letting agents fees - 1,440 Sundry expenses - 218 Bank charges - 84 Independent examination - 810 Depreciation, amortisation and other similar costs - 5,570 Grant funding of activities 6 61 500 Staff costs 8 - 7,257 552 26,786 |
Restricted funds £ - - - - - - - - - - - - - - - - - 1,805 - 1,805 |
Total 2021 £ 500 151 94 491 374 2,792 3,471 611 662 668 1,584 - 1,440 218 84 810 5,570 2,366 7,257 29,143 |
Total 2020 £ 760 1,004 218 1,388 359 2,607 6,437 600 447 - 1,503 1,043 1,440 442 60 780 5,570 3,898 22,553 |
|---|---|---|---|
| 51,109 |
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SOUTHERN CROSS EVANGELICAL CHURCH
Notes to the Financial Statements for the Year Ended 31 August 2021
6 Grant-making
Analysis of grants
| Grant funding of activities | Grants to institutions 2021 £ 2020 £ 61 189 |
Grants to individuals 2021 £ 2020 £ 500 878 |
|---|---|---|
7 Trustees remuneration and expenses
During the year, Rev Stephen Packham, a trustee, received remuneration of £6,973 (2020 - £20,849) as pastor of the church and benefits in the form of pension contributions amounting to £284 (2020 - £1,704).
8 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Pension costs |
2021 £ 6,973 284 7,257 |
2020 £ 20,849 1,704 |
|---|---|---|
| 22,553 |
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
| Staff | 2021 No 1 |
2020 No 1 |
|---|---|---|
No employee received emoluments of more than £60,000 during the year
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SOUTHERN CROSS EVANGELICAL CHURCH
Notes to the Financial Statements for the Year Ended 31 August 2021
9 Tangible fixed assets
| 9 Tangible fixed assets | |||||
|---|---|---|---|---|---|
| Land and buildings £ Cost At 1 September 2020 278,519 At 31 August 2021 278,519 Depreciation At 1 September 2020 13,926 Charge for the year 5,570 At 31 August 2021 19,496 Net book value At 31 August 2021 259,023 At 31 August 2020 264,593 10 Debtors Prepayments Accrued income 11 Creditors: amounts falling due within one year Accruals |
Land and buildings £ 278,519 |
Furniture and equipment £ 1,311 |
Total £ 279,830 279,830 15,237 5,570 20,807 259,023 264,593 2020 £ 1,350 540 |
||
| 278,519 | 1,311 | ||||
| 13,926 5,570 |
1,311 - |
||||
| 19,496 | 1,311 | ||||
| 259,023 | - | ||||
| 264,593 | - | ||||
| 2021 £ 1,303 720 2,023 2021 £ 830 |
|||||
| 1,890 | |||||
| 2020 £ 830 |
12 Pension and other schemes Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £284 (2020 - £1,704).
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SOUTHERN CROSS EVANGELICAL CHURCH
Notes to the Financial Statements for the Year Ended 31 August 2021
13 Funds
| Balance at 1 September 2020 £ Unrestricted funds General General Funds 268,164 Designated Reserve fund 17,979 Crusaders fund 4,018 KidsCRU 151 Holiday clubs 348 22,496 Total unrestricted funds 290,660 Restricted funds Mission fund 813 Dandora fund 1,465 2,278 Total funds 292,938 |
Incoming resources £ 35,038 87 609 - 45 741 35,779 1,665 2,272 3,937 39,716 |
Resources expended £ (26,786) - (552) - - (552) (27,338) (1,405) (400) (1,805) (29,143) |
Transfers £ - - - - - - - - - - - |
Balance at 31 August 2021 £ 276,416 18,066 4,075 151 393 |
|---|---|---|---|---|
| 22,685 | ||||
| 299,101 | ||||
| 1,073 3,337 |
||||
| 4,410 | ||||
| 303,511 |
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SOUTHERN CROSS EVANGELICAL CHURCH
Notes to the Financial Statements for the Year Ended 31 August 2021
| Balance at 1 September 2019 £ Unrestricted funds General General Funds 273,511 Designated Reserve fund 17,818 Crusaders fund 4,635 KidsCRU 183 Holiday clubs 406 23,042 Total unrestricted funds 296,553 Restricted funds Mission fund 394 Dandora fund 3,031 3,425 Total funds 299,978 |
Incoming resources £ 39,801 161 804 66 - 1,031 40,832 1,319 1,918 3,237 44,069 |
Resources expended £ (46,701) - (1,421) (98) (58) (1,577) (48,278) (900) (1,931) (2,831) (51,109) |
Transfers £ 1,553 - - - - - 1,553 - (1,553) (1,553) - |
Balance at 31 August 2020 £ 268,164 17,979 4,018 151 348 |
|---|---|---|---|---|
| 22,496 | ||||
| 290,660 | ||||
| 813 1,465 |
||||
| 2,278 | ||||
| 292,938 |
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SOUTHERN CROSS EVANGELICAL CHURCH
Notes to the Financial Statements for the Year Ended 31 August 2021
14 Analysis of net assets between funds
| Tangible fixed assets Current assets Current liabilities Total net assets Tangible fixed assets Current assets Current liabilities Total net assets |
Unrestricted funds General £ Designated £ 259,023 - 18,223 22,685 (830) - 276,416 22,685 Unrestricted funds General £ Designated £ 264,593 - 4,401 22,496 (830) - 268,164 22,496 |
Restricted funds £ - 4,410 - 4,410 Restricted funds £ - 2,278 - 2,278 |
Total funds at 31 August 2021 £ 259,023 45,318 (830) |
|---|---|---|---|
| 303,511 | |||
| Total funds at 31 August 2020 £ 264,593 29,175 (830) |
|||
| 292,938 |
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