Annual Report and Financial Statements for the Year Ended 31 August 2022
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 (CONTINUED)
| 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
Christina Ann Pepper Lorraine Mary Voak Christine Hayward Brenda Ann Gates Alison Tester
Charity Registration 1179391 Number
Principal Office 103 Trafalgar Road Portslade Brighton BN41 1GU Independent Examiner G W Schulz ACMA 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 2022.
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 (CONTINUED)
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 £33,371 (2021: £39,716) while expenditure was £28,489 (2021: £29,143). The surplus of £4,882 (2021: £10,573) was added to funds brought forward resulting in unrestricted funds of £304,358 and restricted funds of £4,035 at the year end.
Policy on reserves
In line with the trustees' belief that God provides for the work to which the church is called, reserves are not maintained.
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 (CONTINUED)
Statement of 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 Charities (Accounts and Reports) Regulations 2008, 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 trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The annual report was approved by the trustees of the charity on 10 November 2022 and signed on its behalf by:
......................................... ......................................... Christine Hayward 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 trustees on my examination of the accounts of Southern Cross Evangelical Church for the year ended 31 August 2022.
Responsibilities and basis of report
As the charity 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
10 November 2022
Page 5
SOUTHERN CROSS EVANGELICAL CHURCH
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 2 10,056 Charitable activities 3 1,626 Investment income 4 19,640 Total income 31,322 Expenditure on: Charitable activities 5 26,065 Total expenditure 26,065 Net income/(expenditure) 5,257 Net movement in funds 5,257 Reconciliation of funds Total funds brought forward 299,101 Total funds carried forward 13 304,358 |
Restricted funds £ 2,049 - - 2,049 2,424 2,424 (375) (375) 4,410 4,035 |
Total 2022 £ 12,105 1,626 19,640 33,371 28,489 28,489 4,882 4,882 303,511 308,393 |
Total 2021 £ 19,143 894 19,679 |
|---|---|---|---|
| 39,716 | |||
| 29,143 | |||
| 29,143 | |||
| 10,573 | |||
| 10,573 292,938 |
|||
| 303,511 |
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 2022
| 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 |
2022 £ 253,453 253,453 2,122 53,628 55,750 (810) 54,940 308,393 4,035 304,358 308,393 |
2021 £ 259,023 |
|---|---|---|
| 259,023 | ||
| 2,023 43,295 |
||
| 45,318 (830) |
||
| 44,488 | ||
| 303,511 | ||
| 4,410 299,101 |
||
| 303,511 |
The financial statements on pages 6 to 17 were approved by the trustees, and authorised for issue on 10 November 2022 and signed on their behalf by:
......................................... Christine Hayward 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 2022
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. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
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.
Investment income
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
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 2022 (CONTINUED)
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.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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.
Page 9
SOUTHERN CROSS EVANGELICAL CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 (CONTINUED)
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 charity 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.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees 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 2022 (CONTINUED)
2 Income from donations and legacies
| Unrestricted funds Restricted General £ funds £ Donations and legacies; Donations 7,981 2,049 Gift aid reclaimed 2,075 - 10,056 2,049 3 Income from charitable activities Unrestricted funds Designated £ General £ Youth activities 1,535 - Other activities - 91 1,535 91 4 Investment income Unrestricted funds Designated £ General £ Interest receivable and similar income; Interest receivable on bank deposits 46 2 Income from rents - 19,592 46 19,594 |
Total 2022 £ 10,030 2,075 12,105 Total 2022 £ 1,535 91 1,626 Total 2022 £ 48 19,592 19,640 |
Total 2021 £ 16,549 2,594 |
|---|---|---|
| 19,143 | ||
| Total 2021 £ 609 285 |
||
| 894 | ||
| Total 2021 £ 87 19,592 |
||
| 19,679 |
Page 11
SOUTHERN CROSS EVANGELICAL CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 (CONTINUED)
5 Expenditure on charitable activities
| Unrestricted funds Note Designated £ General £ Visiting speakers - 6,754 Minister's expenses - - Books and resources - 109 Youth activities 1,249 - Subscriptions & fees - 1,301 Light, heat & water - 2,609 Repairs & maintenance - 2,672 Post, print & stationery - 672 Computer costs - 319 Telephone - 805 Insurance - 1,543 Letting agents fees - 1,440 Sundry expenses - 119 Bank charges - 93 Independent examination - 810 Depreciation, amortisation and other similar costs - 5,570 Grant funding of activities 6 - - Staff costs 8 - - 1,249 24,816 |
Restricted funds £ - - - - - - - - - - - - - - - - 2,424 - 2,424 |
Total 2022 £ 6,754 - 109 1,249 1,301 2,609 2,672 672 319 805 1,543 1,440 119 93 810 5,570 2,424 - 28,489 |
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 |
Page 12
SOUTHERN CROSS EVANGELICAL CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 (CONTINUED)
6 Grant-making
| Analysis of grants Grants |
Grants to institutions 2022 £ 2021 £ 2,424 1,866 |
Grants to individuals 2022 £ 2021 £ - 500 |
|---|---|---|
7 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses from the charity during the year.
The only payments made to the trustees, or any person connected with them, consisted of reimbursements of expenditure incurred on behalf of the charity in furthering the charity's objects.
8 Staff costs
The aggregate payroll costs were as follows:
| 8 Staff costs The aggregate payroll costs were as follows: |
||
|---|---|---|
| Staff costs during the year were: Wages and salaries Pension costs |
2022 £ - - - |
2021 £ 6,973 284 |
| 7,257 |
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
| follows: | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| No | No | |||
| Staff | - | 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 2022 (CONTINUED)
9 Tangible fixed assets
| 9 Tangible fixed assets | |||||
|---|---|---|---|---|---|
| Land and buildings £ Cost At 1 September 2021 278,519 At 31 August 2022 278,519 Depreciation At 1 September 2021 19,496 Charge for the year 5,570 At 31 August 2022 25,066 Net book value At 31 August 2022 253,453 At 31 August 2021 259,023 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 20,807 5,570 26,377 253,453 259,023 2021 £ 1,303 720 |
||
| 278,519 | 1,311 | ||||
| 19,496 5,570 |
1,311 - |
||||
| 25,066 | 1,311 | ||||
| 253,453 | - | ||||
| 259,023 | - | ||||
| 2022 £ 1,452 670 2,122 2022 £ 810 |
|||||
| 2,023 | |||||
| 2021 £ 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 £Nil (2021 - £284).
Page 14
SOUTHERN CROSS EVANGELICAL CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 (CONTINUED)
13 Funds
| Unrestricted funds General General Funds Designated Reserve fund Crusaders fund KidsCRU Holiday clubs Total unrestricted funds Restricted funds Mission fund Dandora fund Total funds |
Balance at 1 September 2021 £ 276,416 18,066 4,075 151 393 22,685 299,101 1,073 3,337 4,410 303,511 |
Incoming resources £ 29,741 46 1,535 - - 1,581 31,322 1,431 618 2,049 33,371 |
Resources expended £ (24,816) - (1,249) - - (1,249) (26,065) (2,200) (224) (2,424) (28,489) |
Balance at 31 August 2022 £ 281,341 18,112 4,361 151 393 |
|---|---|---|---|---|
| 23,017 | ||||
| 304,358 | ||||
| 304 3,731 |
||||
| 4,035 | ||||
| 308,393 |
Page 15
SOUTHERN CROSS EVANGELICAL CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 (CONTINUED)
| Unrestricted funds General General Funds Designated Reserve fund Crusaders fund KidsCRU Holiday clubs Total unrestricted funds Restricted funds Mission fund Dandora fund Total funds |
Balance at 1 September 2020 £ 268,164 17,979 4,018 151 348 22,496 290,660 813 1,465 2,278 292,938 |
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) |
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 16
SOUTHERN CROSS EVANGELICAL CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 (CONTINUED)
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 £ 253,453 - 28,699 23,016 (810) - 281,342 23,016 Unrestricted funds General £ Designated £ 259,023 - 18,223 22,685 (830) - 276,416 22,685 |
Restricted funds £ - 4,035 - 4,035 Restricted funds £ - 4,410 - 4,410 |
Total funds at 31 August 2022 £ 253,453 55,750 (810) |
|---|---|---|---|
| 308,393 | |||
| Total funds at 31 August 2021 £ 259,023 45,318 (830) |
|||
| 303,511 |
Page 17