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.
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 £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.
Page 8
## **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.
Page 9
## **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|
Page 11
## **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|
Page 12
## **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|
Page 13
## **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|
Page 14
## **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|
Page 15