2024-08-31-accounts

Annual Report and Financial Statements for the Year Ended 31 August 2024

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 15

SOUTHERN CROSS EVANGELICAL CHURCH

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees

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 FCMA 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 2024.

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 (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 £39,229 (2023: £44,574) while expenditure was £43,337 (2023: £41,045). The deficit £4,108 (2023: surplus £3,529) was added to funds brought forward resulting in unrestricted funds of £307,530 and restricted funds of £284 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:

• 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 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 12 November 2024 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 2024.

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 FCMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF

12 November 2024

Page 5

SOUTHERN CROSS EVANGELICAL CHURCH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

Note Unrestricted funds £ Income and Endowments from: Donations and legacies 2 15,062 Charitable activities 3 412 Investment income 4 22,206 Total income 37,680 Expenditure on: Charitable activities 5 37,582 Total expenditure 37,582 Net income/(expenditure) 98 Net movement in funds 98 Reconciliation of funds Total funds brought forward 307,432 Total funds carried forward 11 307,530	Restricted funds £ 1,549 - - 1,549 5,755 5,755 (4,206) (4,206) 4,490 284	Total 2024 £ 16,611 412 22,206 39,229 43,337 43,337 (4,108) (4,108) 311,922 307,814	Total 2023 £ 24,428 450 19,696
			44,574
			41,045
			41,045
			3,529
			3,529 308,393
			311,922

The notes on pages 8 to 15 form an integral part of these financial statements. Page 6

SOUTHERN CROSS EVANGELICAL CHURCH

BALANCE SHEET AS AT 31 AUGUST 2024

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	2024 £ 242,313 242,313 2,178 64,205 66,383 (882) 65,501 307,814 284 307,530 307,814	2023 £ 247,883
		247,883
		1,911 62,968
		64,879 (840)
		64,039
		311,922
		4,490 307,432
		311,922

The financial statements on pages 6 to 15 were approved by the trustees, and authorised for issue on 12 November 2024 and signed on their behalf by:

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

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

The notes on pages 8 to 15 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 2024

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom 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.

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SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 (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.

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SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 (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.

2 Income from donations and legacies

Donations and legacies; Donations Legacies Gift aid reclaimed	Unrestricted funds General £ 12,278 - 2,784 15,062	Restricted funds £ 1,549 - - 1,549	Total 2024 £ 13,827 - 2,784 16,611	Total 2023 £ 12,039 10,000 2,389
				24,428

3 Income from charitable activities

Youth activities Other activities	Unrestricted funds Designated £ General £ 301 - - 111 301 111 Page 10	Total 2024 £ 301 111 412	Total 2023 £ 388 62
			450

SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 (CONTINUED)

4 Investment income

Interest receivable and similar income; Interest receivable on bank deposits Income from rents	Unrestricted funds Designated £ General £ 207 55 - 21,944 207 21,999	Total 2024 £ 262 21,944 22,206	Total 2023 £ 104 19,592
			19,696

5 Expenditure on charitable activities

Unrestricted funds Note Designated £ General £ Visiting speakers - 12,070 Books and resources - 82 Youth activities 596 - Subscriptions & fees - 500 Light, heat & water - 6,508 Repairs & maintenance 151 3,923 Post, print & stationery - 2,809 Insurance - 1,933 Letting agents fees - 1,944 Sundry expenses - 49 Bank charges - 68 Independent examination - 882 Depreciation - 5,570 Grant funding of activities 6 - 497 747 36,835	Restricted funds £ - - - - - 3,955 - - - - - - - 1,800 5,755	Total 2024 £ 12,070 82 596 500 6,508 8,029 2,809 1,933 1,944 49 68 882 5,570 2,297 43,337	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

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SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 (CONTINUED)

6 Grant-making

Analysis of grants

Grants	Grants to institutions 2024 £ 2023 £ 1,800 1,200	Grants to individuals 2024 £ 2023 £ 497 651

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 2023 At 31 August 2024 Depreciation At 1 September 2023 Charge for the year At 31 August 2024 Net book value At 31 August 2024 At 31 August 2023	Land and buildings £ 278,519 278,519 30,636 5,570 36,206 242,313 247,883	Furniture and equipment £ 1,311 1,311 1,311 - 1,311 - -	Total £ 279,830
			279,830
			31,947 5,570
			37,517
			242,313
			247,883

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SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 (CONTINUED)

9 Debtors

Prepayments Accrued income	2024 £ 1,804 374 2,178	2023 £ 1,585 326
		1,911

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 2023 £ 284,776 18,158 3,954 151 393 22,656 307,432 535 3,955 4,490 311,922	Incoming resources £ 37,172 207 301 - - 508 37,680 1,549 - 1,549 39,229	2024 £ 882 Resources expended £ (36,835) - (596) (151) - (747) (37,582) (1,800) (3,955) (5,755) (43,337)	2023 £ 840
				Balance at 31 August 2024 £ 285,113 18,365 3,659 - 393
				22,417
				307,530
				284 -
				284
				307,814

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SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 (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 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	Resources expended £ (39,050) - (795) - - (795) (39,845) (1,200) - (1,200) (41,045)	Balance at 31 August 2023 £ 284,776 18,158 3,954 151 393
				22,656
				307,432
				535 3,955
				4,490
				311,922

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SOUTHERN CROSS EVANGELICAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 (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 £ 242,313 - 43,682 22,417 (882) - 285,113 22,417 Unrestricted funds General £ Designated £ 247,883 - 37,733 22,656 (840) - 284,776 22,656	Restricted funds £ - 284 - 284 Restricted funds £ - 4,490 - 4,490	Total funds at 31 August 2024 £ 242,313 66,383 (882)
			307,814
			Total funds at 31 August 2023 £ 247,883 64,879 (840)
			311,922

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