Charity registration number 285707
Company registration number 01653722 (England and Wales)
TOWER HAMLETS COMMUNITY CHURCH
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
TOWER HAMLETS COMMUNITY CHURCH
LEGAL AND ADMINISTRATIVE INFORMATION
Members Of Council
Members Of Council John Day Simon Kempson Adele May (Appointed 9 September 2023) Secretary John Day Charity number 285707 Company number 01653722 Principal address Lansbury Lodge 117 Ricardo Street London E14 6EQ Registered office Lansbury Lodge 117 Ricardo Street London E14 6EQ Independent examiner Richard F Hopper 4 Rhodfa Clawdd Offa Denbigh Denbighshire LL16 4RJ
TOWER HAMLETS COMMUNITY CHURCH
CONTENTS
| Page | |
|---|---|
| Council Members' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 15 |
TOWER HAMLETS COMMUNITY CHURCH
COUNCIL MEMBERS' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2023
The members of council present their annual report and financial statements for the year ended 30 September 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
Objectives and activities
The charity's objects are the proclamation and furtherance of the Christian faith, the relief of poverty, distress and sickness, and the advancement of education. The policies adopted in furtherance of these objects are the running of a church and related youth activities and there has been no change in these during the year.
Public benefit
The members of council have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
Significant activities and achievements against objectives
Details of the charity's achievements during the year are set out in a separate report of the trustees.
Financial review
The charity's income and expenditure for the year and financial position at the end of the year are summarised in the attached accounts. The members of Council consider the financial position to be satisfactory.
Reserves policy
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The members of council consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Major risks
The members of council have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Structure, governance and management
The charity is a company limited by guarantee.
The members of council, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Naomi Davidge (Resigned 9 September 2023) John Day Simon Kempson Adele May (Appointed 9 September 2023)
Recruitment and appointment of trustees
None of the members of council has any beneficial interest in the company. All of the members of council are members of the company and guarantee to contribute £1 in the event of a winding up.
Organisational structure
The charity is run by the Council which meets several times each year. The charity employs full-time and part-time pastoral and support staff who deal with most of the day-to-day religious and administrative matters.
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TOWER HAMLETS COMMUNITY CHURCH
COUNCIL MEMBERS' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
Relationship with related parties
The charity acts as sole trustee of The Compass Point Trust, a charity which provides financial support for Christian church workers.
The council members' report was approved by the Board of Members Of Council.
.............................. John Day Director
Date: .............................................
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TOWER HAMLETS COMMUNITY CHURCH
INDEPENDENT EXAMINER'S REPORT
TO THE MEMBERS OF COUNCIL OF TOWER HAMLETS COMMUNITY CHURCH
I report to the members of council on my examination of the financial statements of Tower Hamlets Community Church (the charity) for the year ended 30 September 2023.
Responsibilities and basis of report
As the members of council of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
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 that in any material respect:
-
1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements 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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4 the financial statements 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).
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.
Richard F Hopper
Chartered Accountant
4 Rhodfa Clawdd Offa Denbigh Denbighshire LL16 4RJ
Dated: .........................
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TOWER HAMLETS COMMUNITY CHURCH
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
| Unrestricted Restricted funds funds 2023 2023 Notes £ £ Income from: Donations and legacies 3 213,487 8,521 Charitable activities 4 969 - Investments 5 19,251 - Total income 233,707 8,521 Charitable activities 6 188,491 14,953 Net income/(expenditure) and movement in funds 45,216 (6,432) Reconciliation of funds: Fund balances at 1 October 2022 211,408 57,705 Fund balances at 30 September 2023 256,624 51,273 |
Total Unrestricted Restricted funds funds 2023 2022 2022 £ £ £ 222,008 189,911 4,662 969 5,070 - 19,251 18,980 - 242,228 213,961 4,662 203,444 191,147 4,662 38,784 22,814 - 269,113 188,594 57,705 307,897 211,408 57,705 |
Total 2022 £ 194,573 5,070 18,980 |
|---|---|---|
| 218,623 | ||
| 195,809 | ||
| 22,814 246,299 |
||
| 269,113 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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TOWER HAMLETS COMMUNITY CHURCH
BALANCE SHEET
AS AT 30 SEPTEMBER 2023
| Notes Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities The funds of the charity Restricted income funds 16 Unrestricted funds |
2023 £ 22,691 295,680 318,371 13,586 |
£ 3,112 304,785 307,897 51,273 256,624 307,897 |
2022 £ 8,224 258,096 266,320 7,292 |
£ 10,085 259,028 |
|---|---|---|---|---|
| 269,113 | ||||
| 57,705 211,408 |
||||
| 269,113 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2023.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the members of council on .........................
.............................. .............................. John Day Simon Kempson Trustee Trustee
Company registration number 01653722 (England and Wales)
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TOWER HAMLETS COMMUNITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
1 Accounting policies
Charity information
Tower Hamlets Community Church is a private company limited by guarantee incorporated in England and Wales. The registered office is Lansbury Lodge, 117 Ricardo Street, London, E14 6EQ.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's constitution, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the members of council have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the members of council continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the members of council in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 Resources expended
Expenditure is charged in the accounts at the time when a liability to make payment is incurred.
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TOWER HAMLETS COMMUNITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
1 Accounting policies
(Continued)
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Fixtures, fittings & equipment 20% p.a. on cost Computers 25% p.a. on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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TOWER HAMLETS COMMUNITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.10 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the members of council are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Income from donations and legacies
| Unrestricted Restricted funds funds 2023 2023 £ £ Donations and gifts 206,239 8,521 Legacies receivable 5,000 - Grant income 2,248 - 213,487 8,521 |
Total Unrestricted Restricted funds funds 2023 2022 2022 £ £ £ 214,760 189,911 4,662 5,000 - - 2,248 - - 222,008 189,911 4,662 |
Total 2022 £ 194,573 - - |
|---|---|---|
| 194,573 |
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TOWER HAMLETS COMMUNITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
4 Charitable activities
| Youth | Youth activities | |
|---|---|---|
| activities | ||
| 2023 | 2022 | |
| £ | £ | |
| Sale of goods | 969 | 5,070 |
5 Income from investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Rental income | 17,468 | 18,876 |
| Interest receivable | 1,783 | 104 |
| 19,251 | 18,980 |
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TOWER HAMLETS COMMUNITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
6 Charitable activities
| Church activities Support of other christian work 2023 2023 £ £ Staff costs 97,026 - Other direct charitable costs 26,033 - 123,059 - Grant funding of activities (see note 7) 6,413 27,480 Share of support costs (see note 8) 44,872 - Share of governance costs (see note 8) 1,620 - 175,964 27,480 Analysis by fund Unrestricted funds 169,841 18,650 Restricted funds 6,123 8,830 175,964 27,480 For the year ended 30 September 2022 Unrestricted funds 177,797 13,350 Restricted funds - 4,662 177,797 18,012 |
Total 2023 £ 97,026 26,033 123,059 33,893 44,872 1,620 203,444 188,491 14,953 203,444 |
Total 2022 £ 108,987 23,319 |
|---|---|---|
| 132,306 23,655 38,165 1,683 |
||
| 195,809 | ||
| 191,147 4,662 |
||
| 195,809 | ||
| 191,147 4,662 |
||
| 195,809 |
7 Grants payable
| Church activities Support of other christian work 2023 2023 £ £ Grants to institutions: Other 4,950 18,420 Grants to individuals 1,463 9,060 6,413 27,480 |
Total 2022 £ 19,682 3,973 |
|---|---|
| 23,655 |
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TOWER HAMLETS COMMUNITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
8 Support costs allocated to activities
| Staff costs Depreciation Premises expenses Administrative expenses Governance costs Analysed between: Church activities Support of other christian work |
2023 £ 11,698 1,636 20,368 11,170 1,620 46,492 46,492 - 46,492 |
2022 £ 12,404 2,009 19,319 4,433 1,683 |
|---|---|---|
| 39,848 | ||
| 39,582 266 |
||
| 39,848 |
9 Members Of Council
None of the members of council (or any persons connected with them) received any remuneration during the year, but two of them were reimbursed a total of £1,857 expenses (2022- one was reimbursed £79).
10 Employees
Number of employees
The average monthly number of employees during the year was:
| Ministry Administration Employment costs Wages and salaries Social security costs Other pension costs |
2023 Number 5 1 6 2023 £ 95,737 4,075 8,912 108,724 |
2022 Number 4 1 |
|---|---|---|
| 5 | ||
| 2022 £ 106,041 5,250 10,100 |
||
| 121,391 |
There were no employees whose annual remuneration was £60,000 or more.
11 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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TOWER HAMLETS COMMUNITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
| 12 Tangible fixed assets Land and buildings Fixtures, fittings & equipment Computers £ £ £ Cost At 1 October 2022 6,123 9,863 1,057 Additions - 786 - Disposals (6,123) - - At 30 September 2023 - 10,649 1,057 Depreciation and impairment At 1 October 2022 - 6,505 453 Depreciation charged in the year - 1,372 264 At 30 September 2023 - 7,877 717 Carrying amount At 30 September 2023 - 2,772 340 At 30 September 2022 6,123 3,358 604 13 Debtors 2023 Amounts falling due within one year: £ Other debtors 21,173 Prepayments and accrued income 1,518 22,691 14 Creditors: amounts falling due within one year 2023 Notes £ Other taxation and social security - Deferred income 15 6,117 Other creditors 3,954 Accruals and deferred income 3,515 13,586 15 Deferred income 2023 £ Other deferred income 6,117 |
Total £ 17,043 786 (6,123) 11,706 6,958 1,636 8,594 3,112 10,085 2022 £ 6,430 1,794 8,224 2022 £ 132 - 3,097 4,063 7,292 2022 £ - |
|---|---|
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TOWER HAMLETS COMMUNITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
15 Deferred income
(Continued)
Deferred income is included in the financial statements as follows:
| Deferred income is included within: Current liabilities Movements in the year: Deferred income at 1 October 2022 Resources deferred in the year Deferred income at 30 September 2023 |
2023 £ 6,117 - 6,117 6,117 |
2022 £ - |
|---|---|---|
| - - |
||
| - |
16 Restricted funds
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
| At 1 October | Incoming | Resources | At 30 | |
|---|---|---|---|---|
| 2022 | resources | expended | September | |
| 2023 | ||||
| £ | £ | £ | £ | |
| Support of activities abroad | 3,329 | 8,521 | (8,830) | 3,020 |
| Building fund | 54,376 | - | (6,123) | 48,253 |
| 57,705 | 8,521 | (14,953) | 51,273 | |
| Previous year: | At 1 October | Incoming | Resources | At 30 |
| 2021 | resources | expended | September | |
| 2022 | ||||
| £ | £ | £ | £ | |
| Support of activities abroad | 3,329 | 4,662 | (4,662) | 3,329 |
| Building fund | 54,376 | - | - | 54,376 |
| 57,705 | 4,662 | (4,662) | 57,705 |
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TOWER HAMLETS COMMUNITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023
17 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At 1 October | Incoming | Resources | At 30 | ||
|---|---|---|---|---|---|
| 2022 | resources | expended | September | ||
| 2023 | |||||
| £ | £ | £ | £ | ||
| For future repairs to property | 81,011 | 9,600 | (3,766) | 86,845 | |
| For support of ministry activities | 8,844 | 22,800 | (23,300) | 8,344 | |
| General funds | 121,553 | 201,307 | (161,425) | 161,435 | |
| 211,408 | 233,707 | (188,491) | 256,624 | ||
| Previous year: | At 1 October | Incoming | Resources | At 30 | |
| 2021 | resources | expended | September | ||
| 2022 | |||||
| £ | £ | £ | £ | ||
| For future repairs to property | 72,735 | 9,600 | (1,324) | 81,011 | |
| For support of ministry activities | 7,194 | 20,400 | (18,750) | 8,844 | |
| General funds | 108,665 | 183,961 | (171,073) | 121,553 | |
| 188,594 | 213,961 | (191,147) | 211,408 | ||
| 18 | Analysis of net assets between funds | ||||
| Unrestricted | Restricted | Total | |||
| funds | funds | ||||
| 2023 | 2023 | 2023 | |||
| £ | £ | £ | |||
| Fund balances at 30 September 2023 are represented by: | |||||
| Tangible assets | 3,112 | - | 3,112 | ||
| Current assets/(liabilities) | 253,512 | 51,273 | 304,785 | ||
| 256,624 | 51,273 | 307,897 | |||
| Unrestricted | Restricted | Total | |||
| funds | funds | ||||
| 2022 | 2022 | 2022 | |||
| £ | £ | £ | |||
| Fund balances at 30 September 2022 are represented by: | |||||
| Tangible assets | 3,962 | 6,123 | 10,085 | ||
| Current assets/(liabilities) | 207,446 | 51,582 | 259,028 | ||
| 211,408 | 57,705 | 269,113 |
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TOWER HAMLETS COMMUNITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
19 Related party transactions
Transactions with related parties
The charity is the sole trustee of Compass Point Trust (charity no. 284953). During the year Tower Hamlets Community Church paid £1,976 expenses on behalf of Compass Point Trust. At the end of the year the Trust owed the Church £4.
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