River Christian Centre Limited
Report and Accounts Year ended 31 March 2022
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
RIVER CHRISTIAN CENTRE LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2022
Trustees
Nigel Weekes Sarah Odell Rev David Gill L Akanro resigned 18/9/21 D Kennedy resigned 12/9/21 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 Charity Registration Number
00596599
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 | 2-7 |
| Independent Examiner's Report | 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Notes to the Accounts | 11-18 |
| Detailed Statement of Financial Activities with Comparatives | 19 |
Page 1
RIVER CHRISTIAN CENTRE LIMITED
Directors Report for 2021 Annual Accounts
Report from the Directors for the year ended 31[st] March 2022
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 and this is planned to take place in 2024 once an ongoing internal dispute is resolved. Additionally, 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, with a particular emphasis in ensuring we have the right skills and people to take forward the planned redevelopment.
New trustees will be co-opted from the River Church congregation as we seek to align the charity against its original objectives and purpose and build greater unity between the church and community charities.
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.
The charity does not currently employ any staff; however, all past and future staff have and 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.
In September 2022, redundancy payments, totalling £194,258.13 were paid out as part of a settlement agreement with all former staff. This was one of the fallouts of the actions that followed the 29[th ] June 2021 trustees meeting which is the focus of the dispute.
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
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advice of our former accountants in preparation for the long-term redevelopment of the site. The charities were delinked in 2021. The RCCL charity is also the 100% subsidiary of the RCC Design and Build Ltd company set up in 2019 relating to the redevelopment.
A dispute has yet to be resolved around who the trustees of the Foundation and parent of the Design and Build company are.
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.”
The primary goal is at the core of everything we do. Our Christian faith provides motivation and foundation of our work. Our volunteers bring energy and commitment to deliver this. The trustees have, over the years, formulated a 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: “Anointed by the Holy Spirit to release freedom and new life.”
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 modern and fit for purpose church and community facilities in Canning Town that provide a place for people of all ages, needs, and backgrounds to gather together and meet local needs. Within this is a focus on affordable and high-quality childcare provision, creative opportunities for young people, employment, and training, and meeting the needs of the most vulnerable communities.”
Update on Internal Dispute
Over the last three 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, which culminated in actions we have questioned and refuted from a trustee meeting on 29[th] June 2021.
In our response to these actions the trustees have made formal complaints to the Charity Commission and have reported actions that we believe were criminal to the police. Regular communication has been made to the individuals and on the advice from the Charity Commission we appointed our own legal representatives to help us reach a resolution and see this dispute come to an amicable conclusion, which is what we want so we can focus on the operation of the charity.
We appointed lawyers, Bates Wells, to act on our behalf. Bates Wells have reviewed our case extensively, have requested files from the other parties’ legal representatives, and have contacted specific individuals to try and work towards a resolution. A sufficient case has not yet been made by the former trustees that their actions were appropriate and should stand. However, the battle continues, and the dispute has not yet been resolved.
Whilst the dispute has been ongoing, the named trustees of the RCC Foundation on the Charity Commission have remained blank as the Charity Commission wanted to see how the dispute ended before records could be updated as both parties claimed trusteeship of
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the Foundation. Despite this, in 2022 the Hallsville Foundation (a company set up by the former trustees with the intent to replace the RCC Foundation) managed to register themselves as trustees of the RCC Foundation. We made a formal complaint to the Charity Commission to alert them that the conflict has not been resolved. The contact and trustee details of the RCC Foundation were removed, pending final resolution.
Hallsville Foundation have once again attempted to change the Charity Commission entry of the RCC Foundation, and we have once again written to the commission to ask details to be reverted back. At the time of this report the Hallsville Foundation are named as trustees of RCC Foundation, but we believe this is outside of any power they have and continue to assert that RCCL is the only sole trustee.
This dispute has taken significant time and energy away from the operation of the charity and growing the work that the charity does. We do not want lengthy and expensive legal battles and are pushing for a resolution. We are working with the developer to work find a final settlement so that all parties can finally move on from this.
Activities for Achieving Objectives
In planning the activities, the Trustees have applied the guidance on public benefit issued by the Charity Commission.
Public Benefit – Specific Community Activity
The charity continues to review the effectiveness of its delivery of public benefit. Whilst we have come through the Covid19 pandemic, the long-term impact of this can still be seen for many people in our community, especially people on lower incomes. This has been compounded with rising inflation rates and cost-of-living, causing many more people to struggle to makes ends meet.
In April 2020 we set up our Foodbank to respond to the needs during lockdown. The Foodbank has continued to run since, and we have seen a continued need and demand. This is a service we plan to continue to provide and grow and will be part of the planned activities following the redevelopment.
The Foodbank runs every Tuesday from 10.30am to 3.00pm. Over a 10-week period we average around 28 households, representing 775 individuals. Over the last year we have served over 3,200 people. The project runs in partnership with St Luke’s Church.
Whilst meeting immediate needs we are also developing relationships with people from this community provision. People are talking to us about various aspects of their lives, health, relationships, work, housing, and faith. Many recipients have expressed their great appreciation of what we are doing and have offered volunteer help should we ever need it.
Nigel Weekes continues to lead on the delivery of the Foodbank, to which we continue to express our thanks and gratitude for his work.
On Sundays people use our facilities through the River Church congregation. Our service includes specific provision for young people for which no charge is made, and all are welcome. In addition, there are several other external church congregations that use our buildings.
Abrahams Care is still closed; however, we have a fully costed business plan to get this service running again and it is intended that this will be running again in 2024.
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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 volunteers, 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 major redevelopment of the RCCL site has been in planning for over 15 years. It has seen many significant challenges and obstacles over that time, both internal and external which have sought to derail proposals and result in changes and redesign. Whilst we are still in the development stages, we are the furthest forward we have been in the process and are confident about seeing the project materialise.
In March 2021 we signed the development agreement with IXO, providing financial backing from the developer to the project. This saw the first release of forward funding for the charity. Further funding has and will be released at future milestones to help the charity manage its income and expenditure until the redevelopment has been completed.
We are working with IXO and their partners to develop plans and collaborate with council representatives to ensure we have an exciting and viable scheme. We are currently working up proposals to pre-planning stage and working in line with wider Canning Town and Newham regeneration plans to ensure our scheme meets local needs. Current timetables see planning permission being targeted in 2024.
As we progress with the redevelopment, we will be carrying out reviews of income and expenditure and writing the business plan for the charity for post development. A part of this will include a full review of organisational structure and will see a restructuring of the charity, to prepare us for the future. As we prepare for the new, we plan to change the name of the charity to reflect a new stage 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.
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
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forward funding from the redevelopment has been put in place to support this whilst we build up activities and income.
One of the outcomes of the dispute between the former trustees is that rents from Just Homes have, we believe, wrongfully been paid into an account held by the Hallsville Foundation for the last 18 months. We have continually reminded the tenant that their agreement is with RCCL and no other party and that rents are due to us. We are now receiving their monthly rent, however, have over £50,000 of income that is outstanding rent that we are seeking to recoup. The developers are pursuing legal action on our behalf to get this money back from the Hallsville Foundation.
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
The charity ended the year with unrestricted net current liabilities of £161,921. This is substantially represented by redundancy costs settled after year-end with a loan, offset by an intercompany debtor from a subsidiary, the control over which is disputed by the current and former trustees. Subsequent to year-end, the redundancy costs were settled with the proceeds of a loan secured on the charity’s property. 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 should the dispute not be settled in the charity’s favour.
The trustees dispute actions taken by the previous trustees to remove this charity as the sole corporate trustee of the charity owning the property in question and is engaging the Charity Commission and legal advisors in this regard.
Review of activities
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.
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 the sole corporate trustee. The two charities are currently de-linked, and trustees will review decisions to later relink them.
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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 have sought legal advice on our position and how we should move forward to fight the claims and actions against the charity. We believe we can 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.
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:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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.
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:
Surah Oh
Sarah Odell Chair of Trustees
Date: Dec 6, 2023
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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 2022 on pages 9 to 19 following, which have been prepared on the basis of the accounting policies set out on pages 11 to 12.
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:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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 liabilities of £161,921. This is substantially represented by redundancy costs settled after year-end with a loan, offset by an intercompany debtor from a subsidiary. Control of the subsidiary is disputed by the current and former trustees. In this context, and as the charity is involved in an ongoing dispute with former trustees (see note 17), with a significant development project in place, there is material uncertainty as to whether the charity is a going concern. The trustees dispute actions taken by the previous trustees to remove this charity as the sole corporate trustee of the charity owning the property in question and is engaging the Charity Commission and legal advisors in this regard. The trustees are also disputing actions taken by former trustees to make payments on behalf of this charity. I draw attention to Note 2 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.
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 (Dec 6, 2023 12:22 GMT) 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: Dec 6, 2023
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RIVER CHRISTIAN CENTRE LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
| 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 £ 82,093 45,794 9,303 - 137,190 358,152 - 358,152 (220,962) - (220,962) 236,641 15,679 |
Restricted Funds £ 7,000 - - - 7,000 7,000 - 7,000 - - - 11,804 11,804 |
Total Funds 2022 £ 89,093 45,794 9,303 - 144,190 365,151 - 365,151 (220,962) - (220,962) 248,445 27,483 |
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 |
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 11-18 form part of these accounts.
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RIVER CHRISTIAN CENTRE LIMITED
BALANCE SHEET
AS AT 31 MARCH 2022
| Total | Total | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | Funds | Funds | ||
| Funds | Funds | 2022 | 2021 | ||
| Note | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Tangible assets | 9 | 177,600 | - | 177,600 | 182,800 |
| Fixed asset investment | 10 | 1 | - | 1 | 1 |
| 177,601 | - | 177,601 | 182,801 | ||
| CURRENT ASSETS | |||||
| Debtors | 11 | 70,328 | - | 70,328 | 67,845 |
| Cash at bank and in hand | 12 | (7,761) | 11,804 | 4,043 | 17,150 |
| 62,567 | 11,804 | 74,371 | 84,995 | ||
| CREDITORS: Amounts falling | |||||
| due within one year | 13 | (224,489) | - | (224,489) | (19,351) |
| Net current assets / (liabilities) | (161,922) | 11,804 | (150,118) | 65,644 | |
| Total assets less current liabilities | 15,679 | 11,804 | 27,483 | 248,445 | |
| CREDITORS: Amounts falling due | 14 | - | - | - | - |
| after more than one year | |||||
| TOTAL NET ASSETS | 15,679 | 11,804 | 27,483 | 248,445 | |
| FUND BALANCES | 17 | ||||
| Unrestricted Funds | |||||
| General funds | 15,679 | - | 15,679 | 236,641 | |
| 15,679 | - | 15,679 | 236,641 | ||
| Restricted Funds | - | 11,804 | 11,804 | 11,804 | |
| 15,679 | 11,804 | 27,483 | 248,445 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.
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.
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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
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(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
Dec 6, 2023 Date: _______
Company number: 00596599
The notes on page 11-18 form part of these accounts.
Charity number: 231370
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RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2022
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:
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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.
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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.
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RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2022
- 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:
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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.
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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 |
2022 £ 1,341 - 87,752 - 89,093 |
2021 £ 1,305 73,000 150,470 12,798 |
| 237,573 |
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RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2022
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 Other income 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 Vehicle expenses Travel and general expenses Bank charges Sundry expenses Wages and salaries Pension cost c Governance costs Independent examiner's fee Depreciation - tangible fixed assets Total expenditure |
2022 £ - - 2022 £ 45,794 45,794 2022 £ 42 231 9,030 9,303 2022 £ - - 2022 £ 4,025 - - 7,500 6,334 3,762 18,813 143 2,657 6,803 (1,536) - 1,467 41 12,140 288,919 4,444 4,440 5,200 365,152 |
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 |
The fee payable to the independent examiner for preparing and examining the accounts was £2,340 (2021: £4,440).
Page 13
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2022
c Grants payable
| Grants for the relief of poverty The comparatives for the previous year are as follows: Grants for the relief of poverty The charity's principal grants to institutions comprised: The Catholic Parish of St Margarets Canning Town Grants to institutions for less than £1,000 each Development expenses Development expenditure (see note 16) Interest payable |
Institutions £ 7,500 7,500 Institutions £ - - |
Individuals £ - - Individuals £ 1,200 1,200 2022 £ 7,000 500 7,500 2022 £ - - - |
2022 £ 7,500 |
|---|---|---|---|
| 7,500 | |||
| 2021 £ 1,200 |
|||
| 1,200 | |||
| 2021 £ - - |
|||
| - | |||
| 2021 £ 210,440 2,344 |
|||
| 212,784 |
8 Development expenses
9 Analysis of staff costs, the cost of key management personnel and trustee remuneration
The average monthly number of employees during the year was 6 (2021: 24). Most of the charity's activities are carried out by volunteers.
No staff received salaries at a rate of more than £60,000 per annum (2021: none).
Payroll costs included redundancy and termination payments totalling £194,258 (2021: £nil) and comprise statutory payments and exgratia payments where this was considered appropriate. Redundancy and termination payments are charged when the liability or obligation arises.
No trustees received employment benefits in either the current or preceding year.
9 Tangible fixed assets
| Cost At 1 April 2021 At 31 March 2022 Accumulated depreciation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 |
Freehold Property £ 260,000 260,000 77,200 5,200 82,400 177,600 182,800 |
Fixtures, fittings and equipment £ 153,685 153,685 153,685 - 153,685 - - |
Vehicles £ 27,920 27,920 27,920 - 27,920 - - |
Total 2022 £ 441,605 |
|---|---|---|---|---|
| 441,605 | ||||
| 258,805 5,200 |
||||
| 264,005 | ||||
| 177,600 | ||||
| 182,800 |
Page 14
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2022
10 Fixed asset investments
Shares in group undertakings
| es in group undertakings | |||
|---|---|---|---|
| Cost or fair value brought forward Investment at cost Cost or fair value carried forward |
Unquoted Investments 1 - 1 |
2022 £ 1 - 1 |
2021 £ 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 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 |
2022 £ 12,024 58,304 70,328 2022 £ 4,043 - 4,043 2022 £ 530 - - 119 198,838 1 - 25,000 224,489 2022 £ - - - |
2021 £ 12,130 55,715 |
|---|---|---|
| 67,845 | ||
| 2021 £ 17,150 - |
||
| 17,150 | ||
| 2021 £ 530 2,492 1,869 119 6,440 1 2,900 5,000 |
||
| 19,351 | ||
| 2021 £ - - |
||
| - |
12 Cash at Bank and in Hand
13 Creditors: liabilities falling due within one year
14 Creditors: amounts falling due after more than one year
Page 15
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2022
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 |
Otherwise than by instalments - - Otherwise than by instalments 25,000 25,000 |
By instalments - - By instalments - - |
2022 2021 £ £ - 2,900 - 2,900 2022 2021 £ £ 25,000 5,000 25,000 5,000 Bank loans Concessionary loans |
2022 2021 £ £ - 2,900 - 2,900 2022 2021 £ £ 25,000 5,000 25,000 5,000 Bank loans Concessionary loans |
|---|---|---|---|---|
| 5,000 |
Interest on the bank loan referred to in the above notes is paid at a variable rate.
The concessionary loans referred to in the above notes are unsecured and interest-free.
On 16 February 2022 the Company entered into a loan agreement with IXO (New River Place) LLP (IXO). Under the terms of this agreement IXO advanced £20,000 on 17 February 2022, and a further £222,900 after the year end. The loan is secured on the freehold of the Hunt Pub.
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 2022 £ General Unrestricted Funds 236,641 Total Unrestricted Funds 236,641 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 248,445 |
Incoming resources 2022 £ 137,190 137,190 7,000 - - - - - - - - 7,000 144,190 |
Outgoing resources 2022 £ (358,152) (358,152) (7,000) - - - - - - - - (7,000) (365,152) |
Transfers in the year 2022 £ - - - - - - - - - - - - - |
Gains and losses 2022 £ - - - - - - - - - - - - - |
Closing balance 2022 £ 15,679 |
|---|---|---|---|---|---|
| 15,679 | |||||
| - 2,571 7,393 899 333 348 43 249 (32) |
|||||
| 11,804 | |||||
| 27,483 |
Page 16
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2022
Analysis of net assets by fund
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 In the previous year the movements in the charity's funds 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 |
General Designated funds funds £ £ 177,601 - 70,328 - (7,761) - (224,489) - 15,679 - were as follows: Incoming Outgoing Transfers resources resources in the year 2021 2021 2021 £ £ £ 860,619 (716,971) - 860,619 (716,971) - 12,290 (12,290) - - - - - - - - - - - - - - - - - - - - - - - - - - - - 860,619 (716,971) - Unrestricted Funds |
Restricted funds £ - - 11,804 - 11,804 Gains and losses 2021 £ - - - - - - - - - - - - - |
2022 £ 177,601 70,328 4,043 (224,489) |
|---|---|---|---|
| 27,483 | |||
| 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
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 |
General Designated funds funds £ £ 182,801 - 67,845 - 5,346 - (19,351) - 236,641 - Unrestricted Funds |
Restricted funds £ - - 11,804 - 11,804 |
2021 £ 182,801 67,845 17,150 (19,351) |
|---|---|---|---|
| 248,445 |
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 17
RIVER CHRISTIAN CENTRE LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 MARCH 2022
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 £9,711 (2021: £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 Legal disputes
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 18
RIVER CHRISTIAN CENTRE LIMITED
DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES
FOR THE YEAR ENDED 31 MARCH 2022
| 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 2022 2022 £ £ 82,093 - 45,794 - 9,303 - - - 137,190 - 358,152 - - - 358,152 - (220,962) - - - (220,962) - 236,641 - 15,679 - Unrestricted funds |
Restricted 2022 £ 7,000 - - - 7,000 7,000 - 7,000 - - - 11,804 11,804 |
Total 2022 £ 89,093 45,794 9,303 - 144,190 365,152 - 365,152 (220,962) - (220,962) 248,445 27,483 |
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 5 450,000 872,908 516,478 212,784 729,261 143,648 - 143,648 104,797 248,445 |
|||
|---|---|---|---|---|---|---|---|---|---|
Page 19