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.
Page 2
## **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.
Page 3
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- 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:
1. accounting records were not kept in respect of Southern Cross Evangelical Church as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. 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
Page 5
## **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.
Page 8
## **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.
Page 9
## **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.
Page 10
## **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|
Page 11
## **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|
Page 12
## **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
Page 13
## **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).
Page 14
## **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|
Page 15
## **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|
Page 16
## **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|
Page 17