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2023-08-31-accounts

Annual Report and Financial Statements for the Year Ended 31 August 2023

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 16

SOUTHERN CROSS EVANGELICAL CHURCH

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees

Christina Ann Pepper (resigned 9 January 2023) 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 2023.

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

Southern Cross has been open for morning and evening services over the past year, but the prayer meeting on a Tuesday evening is still on zoom. The church continue to support the work in Dandora, Kenya; Brighton and Hove City Mission and Missionary Aviation Fellowship.

The youth group has continued to meet in person on a Friday evening.

Financial review

Income for the year amounted to £44,574 (2022: £33,371) while expenditure was £41,045 (2022: £28,489). The surplus of £3,529 (2022: £4,882) was added to funds brought forward resulting in unrestricted funds of £307,432 and restricted funds of £4,490 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:

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 annual report was approved by the trustees of the charity on 6 October 2023 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 2023.

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:

  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

6 October 2023

Page 5

SOUTHERN CROSS EVANGELICAL CHURCH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2023

Note
Unrestricted
funds
£
Income and Endowments from:
Donations and legacies
2
22,773
Charitable activities
3
450
Investment income
4
19,696
Total income
42,919
Expenditure on:
Charitable activities
5
39,845
Net income
3,074
Net movement in funds
3,074
Reconciliation of funds
Total funds brought
forward
304,358
Total funds carried
forward
11
307,432		 Restricted
funds
£
1,655
-
-
1,655
1,200
455
455
4,035
4,490		 Total
2023
£
24,428
450
19,696
44,574
41,045
3,529
3,529
308,393
311,922		 Total
2022
£
12,105
1,626
19,640
33,371
28,489
4,882
4,882
303,511
308,393

The notes on pages 8 to 16 form an integral part of these financial statements. Page 6

SOUTHERN CROSS EVANGELICAL CHURCH

BALANCE SHEET AS AT 31 AUGUST 2023

Note
Fixed assets
Tangible assets
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: Amounts falling due within one year
10
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
11		 2023
£
247,883
247,883
1,911
62,968
64,879
(840)
64,039
311,922
4,490
307,432
311,922		 2022
£
253,453
253,453
2,122
53,628
55,750
(810)
54,940
308,393
4,035
304,358
308,393

The financial statements on pages 6 to 16 were approved by the trustees, and authorised for issue on 6 October 2023 and signed on their behalf by:

......................................... Christine Hayward Trustee

......................................... Alison Tester Trustee

The notes on pages 8 to 16 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 2023

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.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Page 8

SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED)

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.

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.

Page 9

SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED)

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 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.

Page 10

SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED)

2 Income from donations and legacies

Unrestricted
funds
Restricted
General
£
funds
£
Donations and legacies;
Donations
10,384
1,655
Legacies
10,000
-
Gift aid reclaimed
2,389
-
22,773
1,655
3 Income from charitable activities
Unrestricted funds
Designated
£
General
£
Youth activities
388
-
Other activities
-
62
388
62
4 Investment income
Unrestricted funds
Designated
£
General
£
Interest receivable and
similar income;
Interest receivable on
bank deposits
46
58
Income from rents
-
19,592
46
19,650		 Total
2023
£
12,039
10,000
2,389
24,428
Total
2023
£
388
62
450
Total
2023
£
104
19,592
19,696		 Total
2022
£
10,030
-
2,075
12,105
Total
2022
£
1,535
91
1,626
Total
2022
£
48
19,592
19,640

Page 11

SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED)

5 Expenditure on charitable activities

Unrestricted funds
Note
Designated
£
General
£
Visiting speakers
-
19,831
Books and
resources
-
77
Youth activities
795
-
Subscriptions &
fees
-
325
Light, heat &
water
-
3,470
Repairs &
maintenance
-
2,624
Post, print &
stationery
-
2,134
Computer costs
-
-
Telephone
-
-
Insurance
-
1,742
Letting agents
fees
-
1,440
Sundry expenses
-
212
Bank charges
-
134
Independent
examination
-
840
Depreciation,
amortisation and
other similar
costs
-
5,570
Grant funding of
activities
6
-
651
795
39,050		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,200
1,200		 Total
2023
£
19,831
77
795
325
3,470
2,624
2,134
-
-
1,742
1,440
212
134
840
5,570
1,851
41,045		 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

Page 12

SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED)

6 Grant-making

Analysis of grants

Grants Grants to institutions
2023
£
2022
£
1,200
2,424		 Grants to individuals
2023
£
2022
£
651
-

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 Tangible fixed assets

Cost
At 1 September 2022
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Land and
buildings
£
278,519
278,519
25,066
5,570
30,636
247,883
253,453		 Furniture
and
equipment
£
1,311
1,311
1,311
-
1,311
-
-		 Total
£
279,830
279,830
26,377
5,570
31,947
247,883
253,453

Page 13

SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED)

9 Debtors

Prepayments
Accrued income		 2023
£
1,585
326
1,911		 2022
£
1,452
670
2,122

10 Creditors: amounts falling due within one year

Accruals
11 Funds
Current year
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
2022
£
281,341
18,112
4,361
151
393
23,017
304,358
304
3,731
4,035
308,393		 Incoming
resources
£
42,485
46
388
-
-
434
42,919
1,431
224
1,655
44,574		 2023
£
840
Resources
expended
£
(39,050)
-
(795)
-
-
(795)
(39,845)
(1,200)
-
(1,200)
(41,045)		 2022
£
810
Balance at
31 August
2023
£
284,776
18,158
3,954
151
393
22,656
307,432
535
3,955
4,490
311,922

Page 14

SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 (CONTINUED)

Prior year
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 2023 (CONTINUED)

12 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
£
247,883
-
37,733
22,656
(840)
-
284,776
22,656
Unrestricted funds
General
£
Designated
£
253,453
-
28,699
23,016
(810)
-
281,342
23,016		 Restricted
funds
£
-
4,490
-
4,490
Restricted
funds
£
-
4,035
-
4,035		 Total funds
at 31
August
2023
£
247,883
64,879
(840)
311,922
Total funds
at 31
August
2022
£
253,453
55,750
(810)
308,393

Page 16