## **Charity No: CIO 1184099**
# **Connection Church Centre (KEC Church Centre)**
## **Financial Statements**
**for the year ending 31 March 2023**
_1_
|**CONTENTS**|**PAGE**|
|---|---|
|GENERAL INFORMATION|3|
|TRUSTEES REPORT|4|
|FINANCIAL REPORT|7|
|INDEPENDENT EXAMINERS REPORT ON THE ACCOUNTS|8|
|STATEMENT OF FINANCIAL ACTIVITIES|9|
|BALANCE SHEETS|10|
|NOTES TO THE FINANCIAL STATEMENTS|11-13|
_2_
## **Connection Church Centre (KEC Church Centre)**
|**GENERAL INFORMATION**||
|---|---|
|**CHARITY NUMBER:**|CIO 1184099|
|**TRUSTEES:**|Mr O Nicholds|
||Mr A Mabiala|
||Dr E V H Kerekes|
|**PASTOR:**|DR E V H Kerekes|
|**SECRETARY:**|Mr O Nicholds|
|**TREASURER:**|Mr O Nicholds|
|**CHURCH ADDRESS:**|Cooks Lane|
||Kingshurst|
||Birmingham|
||B37 6NP|
|**BANK:**|HSBC Bank plc|
||67 The Parade|
||Sutton Coldfield|
||B72 1PL|
|**ACCOUNTS INDEPENDENT EXAMINER:**|Mr N James|
||109 Heathway|
||Castle Bromwich|
||Birmingham|
||B34 6LG|
_3_
## **TRUSTEES ANNUAL REPORT**
The KEC Church Centre Charity CIO 1184099 (renamed Connection Church Centre (CCC)) became incorporated on 25[th] June 2019, and took over the activities from Kingshurst Evangelical Church on the 1[st] April 2020
## **Organizational Structure**
The governing document of the charity is a Trust Deed. There are Three trustees who meet at least 3 times per year and are responsible for the strategic direction and policy of the charity.
A scheme of delegation is in place and the day-to-day responsibility for the provision of the services rests with the 'Oversight', which consists of the Pastor and Elders, who meet monthly and are responsible for ensuring that the charity delivers the services specified and that key performance indicators are met.
Trustees are appointed after receiving unanimous approval by other trustees.
## **Staff**
The Trustees take this opportunity to thank the Pastor, Elders and Ministry Leaders for their hard work during the past year. Their continuing efforts and commitment to the church are very much appreciated. The only salaried member of the ‘Oversight’ team is the Pastor. The Pastor’s salary is agreed by the Elders, and during the financial year, an increase was sanctioned in line with inflation.
Sherry Egginton continues to be the Community Pastor and has settled in extremely well building up relationships within the community including local councilors. Allowing the fellowship opportunities to share the love of God in many practical ways.
3 further part time staff are employed one as a cleaner, one working in the café and one as the cook for the lunch club.
## **Volunteers**
During 2022/23 the church was able to start up not only the old ministries, e.g. lunch club, mother and toddlers (now called Little Gems) but to start new ones e.g. craft group. The ministries would not be able to function effectively without the assistance of up to 38 volunteers who serve in many capacities and whose time involvement ranges from a few hours per month to 2 -3 days a week.
The Trustees' and Elders would like to take this opportunity to express their grateful appreciation for all they do.
## **Objectives and Activities**
The charities objectives and principle activities are to:
- Advance the Christian religion
- Support Christian missionaries
- Support Relief of Poverty
- Support Orphanages and Christian institutions worldwide
- Provide a Community Care Centre for support of the local people covering all ages from Parents and Toddlers to the Elderly
_4_
## **Achievements and Performance**
Summary of the main achievements of the charity during the year:
Although the government relaxed the laws on Covet 19 we have continued to hold the services on livelink on Youtube but gradually many have returned to personally join in the services and ministries.,
- 52 Sunday Services
- 40 Children’s Church
- 114 Mid-week services
- 76 Parent and Toddlers (Little Gems) Sessions
- 41 Sessions of Lunch Clubs for the Elderly.
- A café now operates on a Wednesday and Saturday morning open to the community to meet together and chat. The Wednesday café has had to close due to lack of support.
- 45 Group meetings for Youth activities
- Apart from our regular companies who hired the building a number of others have joined us this past year, along with some of community using the care center for birthday parties.
## **Risk Management**
The charity is committed to ongoing assessment of the major risks to which the church is exposed and are confident that the system of reporting which currently exists will advise them on a regular basis of potential difficulties and enable them to take steps to lesson these risks.
## **Plans for Future Periods**
The charity continues to look to enhance the standard of living for the people in the local community, by showing the love of God, in Word and action.
## **Public Benefit Statement**
## **Worship and Prayer**
CCC offers a range of services during the week and over the course of the year that our community find beneficial and spiritually fulfilling.
One service is held on a Sunday morning is more aimed at Family worship and includes a specific section for children.
Our services are available and open to all.
During the week, discipleship/growth courses (known as Connect Groups) are held for people wishing to deepen their Christian beliefs, and regular times of prayer are also held.
During the course of the year:
- 52 Sunday Services
_5_
- 40 Children’s Church
- 114 Mid-week services
## **The Community Care Centre**
CCC also offers a range of services that benefit and involve members of the community. During the course of 2022/23 the Care Centre has conducted:
- 76 Parent and Toddlers (Little Gems) Sessions
- 41 Sessions of Lunch Clubs for the Elderly.
- A café now operates on a Wednesday and Saturday morning open to the community to meet together and chat. The Wednesday café had to close due to lack of support.
- 45 Group meetings for Youth activities
- Apart from our regular companies who hired the building a number of others have joined us this past year, along with some of community using the care center for birthday parties.
## **Food Fund**
With the cost-of-living crisis we have sought to help those in the community who are struggling. We don’t have the room in the building for a Food Bank, so we purchase items of food that a person is in need of and the church pays for the items, with the money being provided through grants from SMBC.
## **Pastoral Care**
The Pastor and the leadership team offer pastoral care to both the members of the church and members of the community who attend the activities of the Care Centre.
This has often involved visiting those who are unable to attend due to sickness and has included a number of hospital visitations. In addition, the Pastor and the leadership team are available to pray or offer spiritual guidance to individuals or small groups when requested.
## **Declaration**
The trustees declare that they have approved the above report.
Signed on behalf of the charity's trustees.
Signature(s): ………………………… Date: 23/01/2024
Full Name: Owen G Nicholds
Position Secretary
_6_
## **FINANCIAL REVIEW 2022/2023**
The overall position for the year ended 31 March 2023 showed total income of £128,943, and a deficit of (£15,365).
## **Principal Funding Sources**
The main source of funding are donations, gifts and funds generated by charitable activities.
## **Investment Policy**
The charity has only a small amount of reserves and these are likely to be called upon in the short to medium term, and consequently, investment has been restricted to easily accessible accounts. The church does not have any specific investment powers.
Checks are made to see that the return is comparable within the banking sector.
There have not been any party-related transactions during the year.
## **Reserves Policy**
It remains the goal of the Trustees to maintain freely available reserves at a minimum level which would enable the General Fund/Building Fund of the church to operate for approximately 3 months at £12,000. Freely available reserves are funds which are unrestricted/restricted and not invested in fixed assets. The church has sufficient reserves in its General Fund and Building Fund to meet this requirement, but the situation will continue to be monitored with a view to increasing the amount of reserves.
_7_
## **Independent Examiners Report to the Trustees of Connection Church Centre**
I report on the accounts of the Church for the year ended 31 March 2023 which are set out on Pages 9 to 13.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
- It is my responsibility to:
- . examine the accounts under section 145 of the 2011 Act:
- . follow the procedures laid down in the general Directions given by the Charity Commission under section
- 145(5)(b) of the 2011 Act; and
- . state whether particular matters have come to my attention.
## **Basis of independent examiner's statement**
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ''true and fair view'' and the report is limited to those matters set out in the statement below.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
- 1 which gives me reasonable cause to believe that, in any material respect, the requirements:
- . to keep accounting records in accordance with section 130 of the 2011 Act; and
- . to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act have not been met or
- 2 to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Mr N James 109 Heathway Castle Bromwich Birmingham B34 6LG
Date: 24 January 2024
_8_
## **Connection Church Centre Statement of Financial Activities for the year ended 31 March 2023**
|**Incoming Resources**
Donations
_Note 7_
Grants
**Total incoming resources**
**Resources expended**
**Cost of generating funds:**
Cost of funding
_Note 8_
Charitable activities
_Note 6_
**Total resources expended**
**Net incoming resources/(resources expended)**
Fund balances brought forward
Surplus/(Deficit) for the year
Prior year adjustment
Gain/(loss) on revaluation of assets
**Fund balances carried forward**|**2023**
**2022**
**Restricted**
**Unrestricted**
**Total**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**£**
**£**
64,655
50,618
115,273
128,545
13,670
0
13,670
0|
|---|---|
||**78,325**
**50,618**
**128,943**
**128,545**|
||12,52
4
0
12,524
7,399|
||**12,524**
**0**
**12,524**
**7,339**|
||0
144,308
144,308
111,967|
||**0**
**144,308**
**144,308**
**111,967**|
||**78,325**
**(93,690)**
**(15,365)**
**16,578**
0
609,392
609,392
606,600
78,325
(93,690)
(15365)
16,578
0 0 0 (13,786)
**78,325 515,702 594,027 609,392**|
_9_
## **Connection Church Centre Balance Sheet as at 31 March 2023**
|**Fixed assets**
_Note 2_
**Current assets**
Bank
Debtors
_Note 3_
**Current liabilities**
PAYE & NIC and wages
Accruals
_Note 4_
**Net current assets**
**Total assets less current**
**liabilities**
**Long-term liabilities**
Loans on properties_Note 5_
**Total assets less total liabilities**
**Funds**
Unrestricted|**£**
37,682
3,237|**£**
811,996
38,270|
|---|---|---|
||40,919||
||2,049
600||
||2,649||
||||
|||850,266
256,239|
|||594,027|
|||594,027|
|||594,027|
_10_
## **Notes to the Financial Statements - Year ended March 2023**
## **1. ACCOUNTING POLICES**
## **Basis of accounting**
The financial statements are prepared under the historical cost convention in accordance with the requirements of the financial reporting standard applicable in the UK and Republic of Ireland (FR102) (effective 1 January 2015) - (Charities SORP FRS102 and the financial accounting reporting standard applicable in the UK and Republic of Ireland (FRS102).
## **Tangible Fixed Assets**
Fixed Assets are shown at cost. Depreciation is provided at the rate calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful life as follows:
Equipment and fittings 20% per annum Freehold property 2% per annum Land is not depreciated.
## **Fund Accounting**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of general objectives of the Church. These are funds that have not been designated for any other purposes.
General funds are those funds which are not designated or restricted for any purpose.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Church for particular purposes.
## **Resources Expended**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. All expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party.
Costs of Charitable Activities comprise all expenditure identified as incurred in the pursuit of the charitable objects of the charity.
## **Apportionment of Costs**
Costs which cannot be directly attributed to activities represented by restricted funds are charged against unrestricted income.
Support costs are apportioned between the charity's activities on the basis of salary costs.
_11_
## **2. Tangible Fixed Assets**
**Equipment Freehold & Fittings Premises Total £ £ £ Cost** 1 April 2022 Balance b/d 2,472 1,009,387 1,011,859 Additions 3,147 3,147 Disposals 0 0 0 31 March 2023 Balance c/d 5,619 1,009,387 1,015,006 **Depreciation** 1 April 2022 Balance b/d 494 181,204 181,698 Charge for the year 1,124 20,188 21,312 Disposal 0 0 0 31 March 2023 Balance c/d 1,618 201,392 203,010 **Net Book Value 31 March 2023 4,001 807,995 811,996 Net Book Value 31 March 2022 1,978 828,183 830,161**
|**3. Debtors and Prepayments**
HMRC gift aid refunds
**4. Accruals**
Professional Charges
PAYE
|£
3,237
£
600
2,049
2,649|
|---|---|
|**5. Loans on properties**
Church and Manse|£
256,239
|
|---|---|
_12_
## **6. Expenditure on charitable activities**
|
Salaries, Pension & Employer’s NIC
Hire of equipment
Rent, rates and insurance
Lighting and heating
Stationery, postage & advertising
Repairs and maintenance
Telephone
Travelling expenses
General expenses
Depreciation
Professional charges
Loan interest and bank charges
|**2023**
£
46,746
602
1,860
3,756
1,586
14,774
1,678
9,644
28,244
21,312
1,582
12,524
144,308
|**2022**
£
43,663
977
344
4,751
1,151
10,682
1,409
3,100
17,268
20,682
600
7,340|
|---|---|---|
|||
119,967|
## **7. Analysis of Incoming resources**
£ General fund (Unrestricted) 50,618 Building fund (Restricted) 28,303 Cafe fund (Restricted) 11,350 Lunch Club fund (Restricted) 12,147 Mission fund (Restricted) 3,930 Support fund (Restricted) 3,520 HMRC tax relief on donations (Restricted) 3,237 Little Gems fund (Restricted) 2,168 Total 115,273
## **8. Cost of funding in General expenses**
## **£**
Bank charges 204 Loan interest 12,320 N.B. The Loan interest of £7,340 in the previous year was in General Expenses. This is now adjusted to provide a comparison in the expenditure on charitable activities.
_13_