River Christian Centre Limited
Report and Accounts Year ended 31 March 2021
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
RIVER CHRISTIAN CENTRE LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2021
Trustees
Nigel Weekes Sarah Odell Rev David Gill L Akanro resigned 18/9/21 P Arias resigned 31/1/21 D Kennedy resigned 12/9/21 P Peters resigned 31/1/21 I Rathbone resigned 18/10/21 S Jones resigned 28/9/21
Governing Document
Memorandum and Articles of Association dated 30 June 1958
Company Registration Number
00596599
Charity Registration Number 231370
Registered Office
Vincent Street Canning Town London E16 1LZ
Independent Examiner
Lourens du Plessis ACA,CA(SA) Stewardship 1 Lamb's Passage London EC1Y 8AB
Bankers
The Co-operative Bank
| Contents | Page |
|---|---|
| Company Information | 1 |
| Trustees' Annual Report | 2-8 |
| Independent Examiner's Report | 9 |
| Statement of Financial Activities | 10 |
| Balance Sheet | 11 |
| Cashflow Statement | 12-13 |
| Notes to the Accounts | 14-21 |
| Detailed Statement of Financial Activities with Comparatives | 22 |
Page 1
Directors Report for 2021 Annual Accounts
Report from the Directors for the year ended 31[st] March 2021
The trustees, who are the charity's directors for the purposes of company law, have pleasure in submitting the Report and Accounts for the year.
Structure, Governance and Management
Responsibility for setting policy and for determining the parameters within which the charity should operate and for making operating decisions rests with the trustees who meet regularly to monitor the activities of the charity. Responsibility for the day-to-day operation of the charity is with the trustees. There are currently no employees of the charity, with trustees and volunteers supporting with the delivery of activities.
In previous years, the trustees set up a formal Finance Committee, comprising three directors and the finance officer, to help deal with challenges caused by increases in expenditure. Due to internal issues within the charity, this committee no longer operates. All decisions are made by the full board regarding financial and other matters.
Trustees are elected and co-opted under the terms of the Articles of Association. As part of our governance policy, three trustees resign and stand for re-election each year. There have been no new trustees for some time, however, following the resignation of several trustees in 2021, new trustees will need to be appointed.
Moving forward, we also recognise the need to better align the River Church and River Christian Centre (RCCL) charities and ensure greater unity between the two. For this reason, the next intake of new trustees for the charity will come from the River Church congregation. A full review of trustee skill sets, and gaps will be undertaken to ensure we have the appropriate governance to move the charity forward and build a stronger board.
New policies and procedures for trustees, including accountability and decision making will be put in place to ensure that we avoid the situation that has happened with trustees making decisions and carrying out actions without the full backing of the board. Training will be offered to trustees where required and appropriate and we will ensure all trustees understand the importance of their role.
All staff are appointed in line with minimum wage requirements (and where possible living wage) and comparable market values according to this sector and location. This includes key senior management staff.
The charity has been the sole corporate trustee of the previously linked charity RCC Foundation, for which it holds the deeds to the site on trust for the Foundation. In 2018 the charity brought the asset value of the RCC Foundation into the charity accounts on the advice of our former accountants in preparation for the long-term redevelopment of the site. The charity is also the 100% subsidiary of the RCC Design and Build Ltd company set up in 2019 relating to the redevelopment. Disputes around who the trustees of the Foundation and subsidiary of the Design and Build company is currently in dispute and detailed later in this report.
Objectives
Our primary objective of the charity: “The advancement of the Christian religion by all means and in particular by the encouragement of religious thought and manner of living on the common basis of Christian fellowship.”
Page 2
The primary goal is at the core of everything we do. Our faith provides motivation and volunteers that have the energy and zeal to deliver excellence in service and care for our community. The trustees have, over the years, formulated a clear means of delivering this primary objective by developing clear vision, mission, and values.
Vision: “Creating a vibrant global community bringing lasting transformation to Canning Town, London and the world.”
Mission: “To Reach, Resource and Release our staff, volunteers, partners and local people by directly providing help, advice, services and training to give hope, meet felt needs and build confidence and competency towards self-determination.”
Values: “Our values derive from our Christian Faith ethos which motivate us to serve our community with love, compassion and skilfulness.”
Redevelopment Vision: “To create a state-of-the-art church and community facilities in Canning Town for our family of charities that are fit for purpose and enabling delivery of transformational direct public benefit services of quality and sensitivity to the existing and new families in the community.”
Activities for Achieving Objectives
In planning the activities, the Trustees have applied the guidance on public benefit issued by the Charity Commission.
Introduction
Over the last two years, we have gone through an extremely challenging period and have battled internal disputes and power struggles which have threatened the future of the charity. This has been down to the actions of certain individuals. There have been decisions made by individual members of the charity that do not reflect the wider trustees’ views, and several decisions that need to be reversed. The impact of these actions by individuals means that there are several key statements from the 2020 accounts that need to be retracted and made right in this set of accounts.
The signing off the 2020 accounts by the former chair was not approved by the wider trustees and these were made public without full trustee knowledge. Since being aware of the actions that have been undertaken by individuals, remaining trustees have done all that they can do rectify the situation, report wrongdoings to appropriate authorities and challenge individuals on their actions. This includes seeking legal counsel.
Clarification on 2020 Accounts
It is correct that 2020 was a challenging time for the charity and cash-flow has been an issue we have had to repeatedly manage, into 2021. We continue to monitor and review the financial situation closely and put measures in place to address issues such as agreeing payment plans where there are outstanding bills.
However, there are some inaccuracies that we address here. Page five, under ‘Long-Term Goals’ the report states that “as part of the restructuring in 2021, the charity retired as trustee of RCC Foundation in July 2021, and new trustees appointed to act as trustees of RCC Foundation – the charities will no longer be linked for registration and accounting purposes.”
This statement is untrue. There has been no such restructuring process and the charity did not retire as trustee of the RCC Foundation. A move by individual members sought to make
Page 3
this happen by providing, in our belief, false and misleading information and individuals even went as far as de-linking the charities, which they did not have authority to do. We are currently disputing this with the Charity Commission and are seeking legal counsel to ensure that actions made in July 2021 are reversed. The two charities do legally remain de-linked; however, it is our assertion and understanding that the River Christian Centre remains the sole corporate trustee of the RCC Foundation charity.
On page 10 under ‘Going Concern’ the report states that “As part of the review of the operations and financial stability of the charities going forward in the light of the redevelopment plan, the trustees decided in their meeting dated 29[th] June 2021, to place River Christian Centre Ltd into members voluntary liquidation.”
This statement is untrue. A resolution to enter a member’s voluntary liquidation (MVL) was brought to the trustees meeting in June 2021 and was initially passed on the first vote. However, with further questioning, lack of sufficient evidence, questions over the integrity and accuracy of information, and conflicts of interests, trustees reversed this vote, and the charity continues to operate. The charity retains that the meeting on 29[th] June 2021 was invalid anyway as due process was not correctly followed.
We continue to battle the fall out of actions undertaken by individual trustees. Despite this we have managed to pay, in full, the settlement agreement for staff (because of their wrongful termination of contracts by individual members of the trust) as well as all outstanding bills and debts that the charity owed, demonstrating that the charity is in fact solvent and continues to operate. The charity continues to make the Charity Commission known of all actions in our dispute with former trustees and seek advice from our legal counsel.
Public Benefit – Specific Community Activity
The charity continues to review the effectiveness of its delivery of public benefit. As with 2020, this year has seen a continued reduction of community services, partly due to COVID19 and partly due to efforts by individuals to wind down the charity. However, we continue reach out to our community and look for new ways at how we can provide public benefit and respond to specific needs people here face.
On Sundays we continue to see people using facilities through the church congregation and we are gradually building back in numbers. Our service on Sundays includes specific provision for young people for which no charge is made and all are welcome.
Abrahams Care, our day nursery and afterschool kids club were running with about 50 children until it closed with the first national lockdown. Abrahams Care reopened with numbers around 20 children until December 2021 when individual trustees closed the service. Abrahams Care provided much needed and affordable childcare provision to working families in the Canning Town area. As part of our long-term vision, we have a fully costed business plan to get this service running again.
We operate a weekly foodbank, which was initially established in the beginning of the first lockdown in April 2020 but has continued in response to local need. We were initially approached by Newham Council to help in an emergency, and in partnership with St Luke’s and helped by St Mathias and Ascension Churches, and members of the community, particularly Tom Booker and PEACH, we were able to develop the community Foodbank.
Nigel Weeks was key to keeping the Foodbank running through the lockdown and so we want to say a huge thank you to him because in the beginning it was a big job. We ran five days a week, before reducing to four days in August 2020, and then two days in the last period of lockdown. In the first months the aim (as set out by Newham Council) was to try to
Page 4
provide a week’s shopping for all who approached us. Newham Council supplied us with food alongside Fairshare. Substantial food boxes were produced and distributed consisting of frozen meat, bread, milk, cereals, tinned foods, fresh vegetables and fruit, toiletries, kids, and baby supplies where needed etc.
To fund the Foodbank, we received an initial grant of £4,000 part from Newham to assist in the first month with staff costs, general supplies and running costs. We have had support with food supplies from Newham and other local sources including food gifts from St Luke’s, St Mathias, and East Ham Elim.
In general, we began with almost daily receptions of foods and distributions. After the first three months we were receiving weekly food drops on a Monday and packages were collected or delivered on a Monday or Tuesday. After the initial lockdown ended, we sought to move away from the total deliveries, and this resulted in a dropping off for some but then an increasing service as word began to get around that we were still going once people began mixing again. The support has and continues to be an essential service for many.
The Cooper Street building is a fully licensed HMO for up to 17 people. Run by the charity Just Homes, it houses people from Newham who are homeless and who are being given assistance to become independent, find work and new independent accommodation.
The Vincent Street building is also a fully licenced HMO and houses various individual tenants living on our site, paying an affordable rent.
Office space in the Vincent Street building was occupied by a combination of our own charity and church staff, and rental to other local charities. In line with the Development Agreement, office space is now being occupied and managed by IXO Guardians as we prepare for the redevelopment.
We currently have no paid staff, with all activities being run by volunteers or by partner charities. We continue to thank God for his provision of people who volunteer their time to support our work in the community.
Long-term goals
The trustees continue to receive professional advice on the redevelopment of the site, and we are grateful to IXO and their team for their partnership with us.
We continue to keep in mind the long-term site redevelopment, which is now progressing well, and we continue to ensure the work of the charity falls in line with the vision for this site. In time there will require a restructuring of the charity, but this has not yet happened. This review will include a name change for the charity as we look to a new period this charity’s 125 year old history in the Canning Town community.
The trustees continue to monitor performance and management of the charity on a regular basis.
Achievements and Performance
Financial performance
Improvements in income/expenditure are dependent on getting income generating activities operational again, in particular Abrahams Care, which before COVID19 accounted for at least half of the charity’s income. Other possibilities are also being explored, particularly around youth, as this has been historically a key area of the charity’s work.
Page 5
The most challenging areas going forward will be the expenditure on salaries as we appoint staff again, energy, business rate and general business maintenance, however, part of the forward funding from the redevelopment has been put in place to support this whilst we build up activities and income.
Reserves policy
It is the policy of the charity to build up a reserve of at least three months salaries (our goal). In the current climate this has been very challenging. We continue in the process of trying to build up a reserve month by month and continue to review spending to ensure that available cash is not exceeded.
Going concern
As noted in the accounting policy note and elsewhere in the accounts, the charity has approximately £54,000 in current assets at year-end. However, this substantially represents an intercompany debtor from RCC Design & Build Ltd, a wholly owned-subsidiary of RCCL. As noted in this report, the trustees are in dispute with the charity’s former trustees as to the ownership of RCC Design & Build. Given the ongoing dispute, and the various uncertainties surrounding it, there is a level of uncertainty as to the charity’s ability to continue as a going concern should the dispute not be settled in the charity’s favour.
Review of activities
Abrahams Care on last inspection (2018) received a ‘Good’ and we will continue to develop and improve our offering before being able to provide brand new facilities once the redevelopment is complete. We are grateful to all the staff who have been part of the Abrahams Care team since its beginning and who have helped make it the successful service it is, and we look forward to seeing it up and running again.
Numerically we have around 1,500 people through the site on average each week, mostly relating to the foodbank and the varied church services.
Wider regeneration of the area continues at a rapid pace bringing new people into the area and with those new needs and opportunities. We continue to work with Newham Council Regeneration Team with their masterplan for this part of Canning Town to ensure we have proposals lined up with both theirs and our requirements.
Future Developments
We have been on a long and challenging journey to secure the long-term future of our suite of buildings across the site. Despite this, the redevelopment is moving closer to happening and reaching a major milestone in planning permission. The main achievement this year was the completion of the Exclusivity Agreement (EA) and Development Agreement (DA) with our development partner IXO. The completion the of EA saw an initial £400,000 released to the charity for the sale of the Hunt building in July 2020. The completion of the DA in March 2021 saw the release of £2million to the RCC Design and Build account. The signing of the agreements demonstrates the commitment of our development partner to take our redevelopment forward to planning permission. Income from the agreements will be used to fund costs associated with the development (such as planning fees) as well as support the charity’s operating costs in the lead up to the new development.
The RCC Design and Build Ltd company was set up to manage this funding and has been accounted for in our company accounts, however, as part of this there is monies owed to RCCL which were not accounted for in the 2020 RCCL accounts.
Trustees continue to review the long-term structure of the charity to see the completion of the redevelopment plan. The trustees are currently reviewing the governance model of the RCCL charity and the RCC Foundation charity for which we maintain our belief that we are
Page 6
the sole corporate trustee. The two charities are currently de-linked, and trustees will review decisions to later relink them.
Key risks and uncertainties
The trustees have assessed the major risks to which the company is exposed, in particular those related to operations and finances of the company and are satisfied that we have put in place suitable systems and procedures to mitigate our exposure to major risks.
We recognise that, until resolved, the internal dispute puts a risk to the charity. However, we are taking legal advice on our position and how we should move forward to fight the claims and actions against the charity. Having sought professional advice, we believe we are able to demonstrate that not only we are still a viable operating charity, but that we legally remain the sole trustee and subsidiary of the RCC Foundation and RCC Design and Build company respectively. We have kept records of all our correspondence and have done all we can to put things right.
We also recognise that income over the last few years has been a challenge and has been a major risk to the charity. The combination of the Covid19 pandemic and the actions to close income generating activities by former trustees have resulted in a loss of income which we have not yet got back. We achieved a major milestone in 2021 in the completion of the development agreement with IXO which saw the release of vital forward funding. As part of this there continues to be the promise of further forward funding to help the charity manage until the redevelopment has been completed.
The trustees continue to closely monitor all income and expenditure closely to ensure that the charity operates within its means. We have paid all outstanding debts and there are plans to restart the nursery in 2023 as we seek to both increase community provision as well as income generating activities.
Responsibilities of trustees under company law
The trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 7
Approval
This report, which has been prepared in accordance with the provisions of the Companies Act 2006 relating to small companies, was approved by the trustees, and signed on their behalf by:
Sarah Odell
Sarah Odell, Chair of Trustees Date: 15 December 2022
Page 8
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF
RIVER CHRISTIAN CENTRE LIMITED ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021 on pages 10 to 22 following, which have been prepared on the basis of the accounting policies set out on pages 14 to 15.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants of England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The charity ended the year with unrestricted net current assets of £53,840. This is substantially represented by an intercompany debtor from a subsidiary, the control over which is disputed by the current and former trustees.In this context, and as the charity is involved in an ongoing dispute, with a significant development project in place, there is material uncertainty as to whether the charity is a going concern. I draw attention to Note 1 to the accounts and section headed 'Going Concern' in the directors' annual report, which sets out the directors' reasons for believing that the charity can continue to operate and for using the going concern basis in the preparation of these financial statements. On the basis for these representations, and after considering the directors' plans and expectations, I have not modified my statements in paragraphs 3 and 4 above in respect of this matter.
The trustees further dispute actions taken by the previous trustees to remove this charity as the sole corporate trustee of the charity owning the property in question.
Other than the matters referred to in the above paragraph, 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 financial statements to be reached.
Lourens du Plessis
Lourens du Plessis ACA,CA(SA) Member of the Institute of Chartered Accountants of England and Wales
Stewardship 1 Lamb's Passage London EC1Y 8AB
Date: 15 December 2022
Page 9
RIVER CHRISTIAN CENTRE LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2021
| Note INCOME AND ENDOWMENTS FROM: Donations 3 Charitable activities 4 Investments 5 Other income 6 Total income and endowments EXPENDITURE ON: Charitable activities 7 Development expenses 8 Total expenditure Net income/(expenditure) Transfers between funds 17 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 17 |
Unrestricted Funds £ 225,283 185,331 5 450,000 860,619 504,187 212,784 716,971 143,648 - 143,648 92,993 236,641 |
Restricted Funds £ 12,290 - - - 12,290 12,290 - 12,290 - - - 11,804 11,804 |
Total Funds 2021 £ 237,573 185,331 5 450,000 872,909 516,477 212,784 729,261 143,648 - 143,648 104,797 248,445 |
Total Funds 2020 £ 11,621 542,903 427 - |
|---|---|---|---|---|
| 554,951 | ||||
| 564,725 - |
||||
| 570,084 | ||||
| (15,133) - |
||||
| (15,133) 119,931 |
||||
| 104,798 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing operations.
The statement of financial activities also complies with the requirements for an income and expenditure account required by the Companies Act 2006.
The notes on page 14-21 form part of these accounts.
Page 10
RIVER CHRISTIAN CENTRE LIMITED
BALANCE SHEET
AS AT 31 MARCH 2021
| Note FIXED ASSETS Tangible assets 9 Fixed asset investment 10 CURRENT ASSETS Debtors 11 Cash at bank and in hand 12 CREDITORS: Amounts falling due within one year 13 Net current assets / (liabilities) Total assets less current liabilities CREDITORS: Amounts falling due 14 after more than one year TOTAL NET ASSETS FUND BALANCES 17 Unrestricted Funds General funds Restricted Funds |
Unrestricted Funds £ 182,800 1 182,801 67,846 5,346 73,192 (19,351) 53,840 236,641 - 236,641 236,641 236,641 - 236,641 |
Restricted Funds £ - - - - 11,804 11,804 - 11,804 11,804 - 11,804 - - 11,804 11,804 |
Total Funds 2021 £ 182,800 1 182,801 67,846 17,150 84,996 (19,351) 65,645 248,446 - 248,446 236,641 236,641 11,804 248,445 |
Total Funds 2020 £ 188,000 1 |
|---|---|---|---|---|
| 188,001 | ||||
| 42,324 5,183 |
||||
| 47,507 (73,368) |
||||
| (25,861) | ||||
| 162,140 (57,343) |
||||
| 104,797 | ||||
| 92,992 | ||||
| 92,992 11,804 |
||||
| 104,796 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006 however, in accordance with Section 145 of the Charities Act 2011, the accounts have been examined by an independent examiner and their report has been included in these financial statements.
-
The directors (who are the charitable company's trustees for the purposes of charity law) acknowledge their responsibilities (a) ensuring that the charitable company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its net income or expenditure for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.
The financial statements were approved by the Board of Directors and were signed on its behalf by:
Sarah Odell
Sarah Odell
Date: 15 December 2022
The notes on page 14-21 form part of these accounts.
Company number: 00596599
Charity number: 231370
Page 11
RIVER CHRISTIAN CENTRE LIMITED
FOR THE YEAR ENDED 31 MARCH 2021
CASH FLOW STATEMENT
| Note Cash flows from operating activities: Net cash provided by/(used in) operating activities a Cash flows from investing activities: Dividends, interest and rents from investments Investment in subsidiary Net cash provided by/(used in) investing activities Cash flows from financing activities: Repayments of borrowing Cash inflows from new borrowing interest paid Net cash provided by/(used in) financing activities b b Cash and equivalents at the beginning of the year Cash and cash equivalents at the end of the year Change in cash and equivalents in the reporting period |
2021 £ 82,510 5 - 5 (70,549) - - (70,549) 11,966 5,184 17,150 |
2020 £ (22,955) |
|---|---|---|
| - 1 |
||
| 1 | ||
| (5,216) 15,000 (408) |
||
| 9,376 | ||
| (13,578) 18,762 |
||
| 5,184 |
Analysis of changes in net debt:
| Cash Bank loans: Falling due within one year Falling due after one year Concessionary loans: Falling due within one year Falling due after one year Total net funds / (debt) |
At start of year £ 5,184 (5,624) (57,343) (20,000) - (77,783) |
Cash-flows £ 11,966 (2,724) (57,343) (15,000) - (63,102) |
At end of year £ 17,150 (2,900) - (5,000) - |
|---|---|---|---|
| 9,250 |
Page 12
RIVER CHRISTIAN CENTRE LIMITED
FOR THE YEAR ENDED 31 MARCH 2021
NOTES TO THE CASH FLOW STATEMENT
Note a: Reconciliation of net income/(expenditure) to net cash flow from operating activities
| Adjustments for: Depreciation charges and provisions for impairment (Gains)/losses on investments Dividends, interest and rents from investments Interest expense Interest accrued but not yet paid (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by (used in) operating activities Note b: Analysis of cash and cash equivalents Cash at bank with immediate access Notice deposits (with a term of three months or less) Petty cash Total cash and cash equivalents Net income/(expenditure) for the reporting period (as per the statement of financial activities) |
2021 £ 143,648 5,200 - (5) - - (25,522) (40,811) 82,510 2021 £ 17,150 - - 17,150 |
2020 £ (15,134) 5,200 - - 408 4,951 (37,892) 19,512 |
|---|---|---|
| (22,955) | ||
| 2020 £ 5,174 10 - |
||
| 5,184 |
Page 13
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
1 Statutory Information
The charity is a charitable company limited by guarantee and is incorporated in the United Kingdom. The company's registered number and registered office address can be found on the Company Information page.
2 Accounting Policies
These financial statements are prepared on a going concern basis, under the historical cost convention.
These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102"), with the Companies Act 2006 and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The principles adopted in the preparation of the financial statements are set out below.
a) Going concern
The trustees (who are the charitable company's directors for the purposes of company law) have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future, as has been evidenced in the period since the financial year-end to date, and credible expectations of increased funding in the near future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
b) Income
Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations includes:
-
i) Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.
-
ii) Donated facilities, services and goods. Goods donated for distribution to beneficiaries are recognised as income when receivable at fair value (being an estimate of the amount it would cost to purchase those items). Facilities, services and goods donated for the charity's own use are recognised as income when receivable at their value to the charity.
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from community outreach programmes.
Investment income represents income generated by the charity's assets and includes income from bank interest.
c) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
d) Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
Page 14
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
- e) Tangible fixed assets
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £5,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Freehold buildings Over 50 years straight line basis plant and machinery Over 5 to 10 years straight line basis. Motor vehicles 25% reducing balance
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
f) Investments Fixed asset investments are held to generate income and / or for their investment potential. Current asset investments are investments that are held specifically for sale or are investments that the charity expects to sell by the next balance sheet date. Investments, other than social investments (see below), are valued as follows:
- i) Investment property and listed investments are valued at their market value (fair value) at the balance sheet date. ii) Unlisted investments are measured at cost less impairment where it becomes apparent that the amount that could be realised is less than cost.
g) Pension scheme arrangements
The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.
h) Taxation The company is a registered charity; it has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
i) Financial instruments The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).
j) Exemption from preparing a cashflow statement
The charity has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement. k) Critical accounting estimates and areas of judgement ln preparing financial statements certain judgements, estimates and assumptions have to be made that affect the amounts recognised in the financial statements. The trustees consider the following to be significant:
-
i) The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimates for useful economic life and residual value. These estimates are reassessed annually and, when necessary, adjusted to reflect current circumstances.
-
ii) In the previous period, these accounts included a linked charity. These charities have been delinked, and the comparatives presented only include the figures for this charity. The delinking is being disputed by the trustees, but represents the current legal position which is reflected in these accounts. See note 17 and the Trustees' Report for further information.
l) Activity reporting
The trustees take the view that the charity has only one activity, in line with its charitable object, and therefore no activity reporting analysis is provided in these notes.
3 Donations
| ations | ||
|---|---|---|
| Donations of cash and similar Donations in kind (note 3a) Government grants (Job Retention Scheme) Other grants receivable |
2021 £ 1,305 73,000 150,470 12,798 237,573 |
2020 £ 1,621 - - 10,000 |
| 11,621 |
Page 15
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
a Donations in kind comprise:
| Goods donated for Foodbank Distribution to beneficiaries 4 Income from charitable activities Community outreach programs 5 Investment income Bank interest Investment income - other local unlisted 6 Other income Income from development contracts (see note 16 below) 7 Charitable expenditure a Costs incurred directly on specific activities Nursery/Kids Club expenditure Foodbank expenses Foodbank donations in kind expensed Gifts and Grants b Charitable activities Support costs Insurance Light, Heat and power Rates (general and water) Repairs and maintenance Telephone Postage and stationery/office supplies Professional fees Accountancy Vehicle expenses Travel and general expenses Bank charges Sundry expenses Wages and salaries National insurance Pension cost c Governance costs Auditors remuneration Examination fee Depreciation - tangible fixed assets Total expenditure |
2021 £ 73,000 73,000 2021 £ 185,331 185,331 2021 £ 5 - 5 2021 £ 450,000 450,000 2021 £ 23,141 3,841 73,000 1,200 21,227 49,158 7,017 11,067 3,837 11,159 755 - 50 6,306 502 534 285,126 - 8,918 - 4,440 5,200 516,478 |
2020 £ - |
|---|---|---|
| - | ||
| 2020 £ 542,903 |
||
| 542,903 | ||
| 2020 £ 52 375 |
||
| 427 | ||
| 2020 £ - |
||
| - | ||
| 2020 £ 48,144 - - 5,753 22,568 31,585 23,796 14,946 5,971 10,999 2,757 3,934 1,343 13,327 861 429 345,476 17,347 5,488 4,800 - 5,200 |
||
| 564,724 |
The fee payable to the independent examiner for preparing and examining the accounts was £4,440 (2020 audit fee: £4,800).
Page 16
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
c Grants payable
| Grants for the relief of poverty 8 Development expenses Development expenditure (see note 16) Interest payable 9 Tangible fixed assets Cost At 1 April 2020 At 31 March 2021 Accumulated depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book value At 31 March 2021 At 31 December 2020 10 Fixed asset investments Shares in group undertakings Cost or fair value brought forward Investment at cost Cost or fair value carried forward |
Freehold Property £ 260,000 260,000 72,000 5,200 77,200 182,800 188,000 |
Institutions £ - - Fixtures, fittings and equipment £ 153,685 153,685 153,685 - 153,685 - - Unquoted Investments 1 - 1 |
Individuals £ 1,200 1,200 2021 £ 210,440 2,344 212,784 Vehicles £ 27,920 27,920 27,920 - 27,920 - - 2021 £ 1 - 1 |
2021 £ 1,200 |
|---|---|---|---|---|
| 1,200 | ||||
| 2020 £ - 5,359 |
||||
| 5,359 | ||||
| Total 2021 £ 441,605 |
||||
| 441,605 | ||||
| 253,605 5,200 |
||||
| 258,805 | ||||
| 182,800 | ||||
| 188,000 | ||||
| 2020 £ - 1 |
||||
| 1 |
Subsidiary undertakings
The following were subsidiary undertakings of the charity:
Name
RCC Design and Build Ltd
Holding 100%
11 Debtors
Falling due within one year: Trade debtors RCC Design and Build Ltd Total debtors
| 2021 £ 12,130 55,716 67,846 |
2020 £ 42,324 - |
|---|---|
| 42,324 |
Page 17
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
12 Cash at Bank and in Hand
| h at Bank and in Hand | ||
|---|---|---|
| Cash at bank with immediate access Notice deposits (with a term of three months or less) itors: liabilities falling due within one year Trade creditors Taxation and social security Pension contributions Other creditors Accruals Subsidiary investment Bank loans Other loans itors: amounts falling due after more than one year Bank loans Other loans |
2021 £ 17,150 - 17,150 2021 £ 530 2,492 1,869 119 6,440 1 2,900 5,000 19,351 2021 £ - - - |
2020 £ 5,174 9 |
| 5,183 | ||
| 2020 £ 341 18,529 3,750 119 25,004 1 5,624 20,000 |
||
| 73,368 | ||
| 2020 £ 1,794 55,549 |
||
| 57,343 |
13 Creditors: liabilities falling due within one year
14 Creditors: amounts falling due after more than one year
15 Loans and finance leases
The liabilities for loans and concessionary loans referred to in notes 13 and 14 fall due for repayment as follows:
| Repayable: Within one year Repayable: Within one year Repayable: Within one year Between one and five years After five years |
Otherwise than by instalments 2,900 2,900 Otherwise than by instalments 5,000 5,000 Otherwise than by instalments - - - - |
By instalments - - By instalments - - By instalments - - - - |
2021 2020 £ £ 2,900 7,418 2,900 7,418 2021 2020 £ £ 5,000 20,000 5,000 20,000 2021 2020 £ £ - - - 55,549 - - - 55,549 Concessionary loans Other loans Bank loans |
2021 2020 £ £ 2,900 7,418 2,900 7,418 2021 2020 £ £ 5,000 20,000 5,000 20,000 2021 2020 £ £ - - - 55,549 - - - 55,549 Concessionary loans Other loans Bank loans |
|---|---|---|---|---|
| 20,000 | ||||
| 2020 £ - 55,549 - loans |
||||
| 55,549 |
Interest on the bank loan referred to in the above notes ispaid at a variable rate.
The concessionary loans referred to in the above notes are unsecured and interest-free.
Page 18
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
16 Pension commitments
During the year employer’s pension contributions totalling £1,318 (2021: £5,469) were payable to defined contribution personal pension schemes.
17 Funds
During the year the movements in the charity's funds were as follows:
| Opening balance 2021 £ General Unrestricted Funds 92,993 Total Unrestricted Funds 92,993 Restricted Funds Foodbank - New equipment fund 2,571 Youth/Big Brother and other communit 7,393 Other events fund 899 Aston Mansfield fund 333 Boiler replacement fund 348 Hackney parochial 43 Lottery First World War 249 Swan Foundation (32) 11,804 Aggregate of funds 104,797 |
Incoming resources 2021 £ 860,619 860,619 12,290 - - - - - - - - 12,290 872,909 |
Outgoing resources 2021 £ (716,971) (716,971) (12,290) - - - - - - - - (12,290) (729,261) |
Transfers in the year 2021 £ - - - - - - - - - - - - - |
Gains and losses 2021 £ - - - - - - - - - - - - - |
Closing balance 2021 £ 236,641 |
|---|---|---|---|---|---|
| 236,641 | |||||
| - 2,571 7,393 899 333 348 43 249 (32) |
|||||
| 11,804 | |||||
| 248,445 |
Analysis of net assets by fund
The assets and liabilities of the various funds were as follows:
| assets and liabilities of the various funds were as follows: | |||
|---|---|---|---|
| Tangible fixed assets Debtors Cash at bank and in hand Creditors falling due within one year |
General Designated funds funds £ £ 182,800 - 67,846 - 5,346 - (19,351) - 236,641 - Unrestricted Funds |
Restricted funds £ - - 11,804 - 11,804 |
2021 £ 182,800 67,846 17,150 (19,351) |
| 248,445 |
Page 19
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
In the previous year the movements in the charity's funds were as follows:
| Opening balance 2020 £ General Unrestricted Funds 108,127 Total Unrestricted Funds 108,127 Restricted Funds New equipment fund 2,571 Youth/Big Brother and other communit 7,393 Other events fund 899 Aston Mansfield fund 333 Boiler replacement fund 348 Hackney parochial 43 Lottery First World War 249 Swan Foundation (32) 11,804 Aggregate of funds 119,931 |
Incoming resources 2020 £ 554,950 554,950 - - - - - - - - - 554,950 |
Outgoing resources 2020 £ (570,084) (570,084) - - - - - - - - - (570,084) |
Transfers in the year 2020 £ - - - - - - - - - - - - |
Gains and losses 2020 £ - - - - - - - - - - - - |
Closing balance 2020 £ 92,993 |
|---|---|---|---|---|---|
| 92,993 | |||||
| 2,571 7,393 899 333 348 43 249 (32) |
|||||
| 11,804 | |||||
| 104,797 |
Analysis of net assets by fund
In the previous year, the assets and liabilities of the various funds were as follows:
| Tangible fixed assets Debtors Cash at bank and in hand Creditors falling due within one year Creditors falling due after one year |
General Designated funds funds £ £ 188,000 - 42,324 - (6,621) - (73,368) - (57,343) - 92,992 - Unrestricted Funds |
Restricted funds £ - - 11,804 - - 11,804 |
2020 £ 188,000 42,324 5,183 (73,368) (57,343) |
|---|---|---|---|
| 104,796 |
The NewEquipment Fund' purpose is to assist with the purchase of equipmet for the River Christian Centre The Youth/Big Brother and other community fund provides funds for youth work The Other Events fund provides funds for youth work
The Aston Mansfield fund provides funds for youth work
The Boiler Replacement Fund was established to provide a replacement boiler in the Vincent street building. The Hackney Parochial Fund was established to help with work with the homeless.
The Lottery First World War fund wass established to fund a first world war exhibition. The Swan Foundation fund provides funding for youth work.
Page 20
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2021
15 Transactions with related parties
During the year the charity also made the following payments to, or for, related parties:
- a) M Gill, who is closely related to David Gill, who is a trustee, received employment benefits totalling £31,991 for providing services to the charity.
There have been no other transactions with related parties during the year.
16 Building Development
In 2019 the charity entered into an Exclusivity Agreement, jointly with RCC Foundation, to develop the land on which it occupies buildings. The contract was replaced by a Development Contract in July 2020. Under these two contracts the charity received income of £450,000 in 2020 and 2021. It is due to receive further income in 2022 and 2023. The charity has incurred costs of £210,000 in connection with the development of the site.
17 Events since the year end
As described in the trustees' report, the charity is in dispute with former trustees of the charity on a number of matters:
-
In prior years the charity was linked with RCC Foundation, a registered charity. Former trustees of the charity have applied to the Charity Commission to de-link the two charities. This de-linking is challenged by the current trustees of River Christian Centre Ltd.
-
In prior years the charity was the sole trustee of RCC Foundation, a registered charity. Former trustees of RCC Ltd acted to retire this charity as sole trustee of RCC Foundation, and registered themselves as trustees of RCC Foundation. The current trustees of RCC Ltd are challenging the legaility of these actions.
-
The charity established a 100% subsidiary to manage the develop the site that the charity occupies. Former trustees are seeking to control RCC Design and Build Ltd, and have caused significant sums to be spent by RCC Design and Build Ltd that have not been authorised by the trustees of this charity.
The trustees have filed Serious Incident Reports to notify the Charity Commission of the matters in disputeand have sought legal advice to resolve these matters as soon as possible.
18 Members
Each member of the company commits to contribute if the charity is wound up an amount of £10.
Page 21
RIVER CHRISTIAN CENTRE LIMITED
DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES
FOR THE YEAR ENDED 31 MARCH 2021
| Note INCOME AND ENDOWMENTS FROM: Donations 3 Charitable activities 4 Investments 5 Other income 6 Total income and endowments EXPENDITURE ON: Charitable activities: 7 Development expenses 8 Total Expenditure Net income/(expenditure) Transfers between funds 17 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward 17 |
General Designated 2021 2021 £ £ 225,283 - 185,331 - 5 - 450,000 - 860,619 - 504,187 - 212,784 - 716,971 - 143,648 - - - 143,648 - 92,993 - 236,641 - Unrestricted funds |
Restricted 2021 £ 12,290 - - - 12,290 12,290 - 12,290 - - - 11,804 11,804 |
Total 2021 £ 237,573 185,331 5 450,000 872,909 516,478 212,784 729,261 143,648 - 143,648 104,797 248,445 |
General Designated 2020 2020 £ £ 11,621 - 542,903 - 427 - - - 554,950 - 564,725 - 5,359 - 570,084 - (15,134) - - - (15,134) - 108,127 - 92,993 - Unrestricted funds |
Restricted 2020 £ - - - - - - - - - - - 11,804 11,804 |
Total 2020 £ 11,621 542,903 427 - 554,950 564,725 5,359 570,084 (15,134) - (15,134) 119,931 104,797 |
|||
|---|---|---|---|---|---|---|---|---|---|
Page 22