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2021-12-31-accounts

LONDON COMMUNITY CHURCH

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Charity Registration Number: 292014

London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

CONTENTS

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London Community Church Report and Financial Statements Charity Number 292014 Year ended 31 December 2021

LEGAL & ADMINISTRATIVE INFORMATION

Name London Community Church.
Registered Charity Number 292014
Trustees The Trustees who served during the year or who were serving at the
date of this report were:
Adam Bewsher
David J Goodship
(Chair)
Leigh J Turner
Duncan Vann
Key Management Personnel Those in charge of directing, controlling, running and operating the
church on a day to day basis are the Trustees, Chris Williams (elder),
Nikki Williams (manager) and Malcolm Turner (elder).
Legal Status Unincorporated Charity
Governing Instrument Declaration of Trust dated 3 April 1985, amended by Special
Resolution of 24 March 2003
Objects • The advancement of the Christian faith and the worship of God
• To provide relief to people who are in need, hardship or distress
or who are aged or sick
• The advancement of education on the basis of Christian
principles
Principal Address 14 Dersingham Road,
Cricklewood,
LONDON NW2 1SL
Primary Bankers Lloyds Banking Group,
Covent Garden Branch,
Southampton Row,
LONDON WC1B 5HR
Independent Examiner John Helm ACA,
Tandem Accounting
17 Heathville Road
London N19 3AL

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

TRUSTEES’ REPORT

The Trustees present their annual report and financial statements of the London Community Church (“the Church”) for the year ended 31 December 2021. The financial statements have been prepared in the format prescribed the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2015 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.

1. ORGANISATION AND MANAGEMENT

The Church’s affairs are normally conducted under the supervision and leadership of a team of elders. Trustees are appointed by the elders. A trustee can be removed by a resolution passed by a simple majority of the members of the Church.

Currently one of the elders acts in a full-time capacity within the Church and is responsible for day-today management. Responsibility for different areas of Church life is delegated to members by the elders. The elders meet together regularly and consult regularly with a wider group of leaders consisting of the elders, their spouses, and other couples in Church leadership. Formal trustee meetings are held at least three times a year and the elders meet informally with the trustees frequently throughout the year at various Church activities and events and maintain a close working relationship together.

Apart from the full-time elder and paid office help, nearly all of the Church’s activities and programmes are carried out with volunteer help from Church members, without which the Church would be unable to function, the trustees are very grateful for the help received from the volunteers.

To assist in achieving the objectives, the Church works closely with a wider group of churches known as Global Horizons, a separately registered UK charity. The Church is a member of the Evangelical Alliance.

Christopher Williams and Malcolm Turner continued to serve as elders throughout the year. Christopher Williams continued to serve as the full-time elder. Adam Bewsher, David Goodship, Leigh Turner and Duncan Vann continued to serve as Trustees throughout the year.

Risk Assessment

The trustees regularly review the major risks which the Church faces. They believe that maintaining the free reserves referred to below, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

TRUSTEES’ REPORT

2. ACTIVITIES CARRIED OUT TO ACHIEVE THE OBJECTS

During the course of the year the Church carried out the following activities in order to achieve the objects set out in the Trust Deed:

Public Benefit

The Trustees have considered the public benefit guidance and consider that all activities carried out by the Church pass the public benefit test. In particular, each of the three charitable objects of the Church is supported by at least one activity in the list above and in practice most activities contribute to at least two of the objects.

There are no material restrictions on participating in any Church activities based on financial need. Our public meetings (every Sunday and some midweek meetings – some virtual) are open to all free of charge. Although Church members are asked to make a financial commitment to the Church, there is no minimum commitment and no one is excluded on the grounds of finance.

3. GOING CONCERN

Each year it’s the Trustees’ responsibility to state whether or not the annual accounts have been drawn up on a going concern basis (see the accounting policy note on page 11). Going concern is the

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

TRUSTEES’ REPORT

assumption that an entity, in this case the Church, has the resources (financial or otherwise) needed to continue operating for the foreseeable future and in particular, for at least 12 months from the date of approval by the Trustees of these annual accounts. If the going concern principle did not apply then the accounts would be drawn up on an insolvent basis.

The Trustees has reviewed its financial forecast for 2022. This review indicates that it will be unlikely to have a deficit in 2022. Accordingly, it has concluded that it is appropriate to prepare the 2021 Accounts on a going-concern basis and that it is not necessary to make any adjustment to these accounts as a result of the lockdown restrictions.

4. FINANCIAL REVIEW

The Church’s main sources of funding are the free will tithes and offerings of Church members and others in attendance.

4.1 Financial Activity and Financial Position

The Statement of Financial Activities and Balance Sheet can be found on pages 9 and 10 respectively. The Church’s reserves decreased slightly by £232 (2020: decreased by £37,305) during the year. The balance sheet shows total net assets of £116,513 (2020: £116,745). The trustees are confident that as there are no longer long term commitments, income and expenditure can continue to be closely matched.

4.2 Reserves Policy

The trustees have considered the level of reserves they wish to retain, appropriate to the Church’s need. This is based on the Church’s size and level of financial commitments. The Trustees aim to ensure that the Church will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The Trustees do not set aside funds unnecessarily. Currently reserves are set aside above those needed for day to day matters referred to above. At 31 December 2021 the Church had net free reserves of £58,106 (2020: £59,581) as follows:

Total reserves
Less: restricted funds
Less: unrestricted fixed assets
Free reserves
Free reserves requirement:
3 month’s budgeted routine expenditure		 2021 2020
£
116,745
(57,000)
(164)
£
116,513
(58,166)
(241)
59,581
58,106
51,738
23,040

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

TRUSTEES’ REPORT

4.3 Grant-making policy

The Church provides regular support to Global Horizons, a charity which supports a network of churches of which London Community Church is a part and also for Alan and Betty Scotland who lead Global Horizons. The Trustees also receive individual applications for grants which are dealt with individually by reference to the funds available and the Trustees’ perceptions of the merits of the application.

5. PLANS FOR FUTURE PERIODS

The Church plans to continue its current activities in order to achieve the objects set out in the Trust Deed. With the successful establishment of the “Streets food project”, it is intended to continue to provide for the surrounding communities, including volunteering opportunities, as well as food in the near term whilst the pandemic and economic hardship continues.

6. TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

TRUSTEES’ REPORT

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

7. APPROVAL

Approved by the Trustees on 25 September 2022

Signed on their behalf by Trustee

David Goodship Trustee

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 Dec 2021

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

I report to the trustees of London Community Church on the accounts for the year ended 31 December 2021 set out on pages 9-17.

Respective Responsibilities of Trustees and Examiner

The organisation’s Trustees are responsible for the preparation of the accounts. The organisation’s Trustees consider that an audit is not required for this year under Section 144(2) of the Charities Act 2011 (the 2011Act) and that an independent examination is needed.

It is my responsibility to:

Basis of Independent Examiner’s Statement

My examination was carried out in accordance with General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the organisation and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent Examiners statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the church as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

John Helm ACA

25 September 2022

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Restricted
Total
Unrestricted		 Restricted Total
Notes Funds Funds 2021
Funds		 Funds 2020
Income and endowments from:
Donations and Legacies 2a 87,981
1,795
89,776
121,813		 4,446 126,259
Charitable Activities 2b 2,150
0
2,150
12,496		 0 12,496
Other Trading Activities 2c 0
0
0
30,893		 0 30,893
Total 90,131
1,795
91,926
165,202		 4,446 169,648
Expenditure on:
Raising funds 3a (612) 0
(612)
71,814		 11,364 83,178
Charitable activities 3b 92,141
629
92,770
85,962		 37,813 123,775
Total 91,529
629
92,158
157,776		 49,177 206,953
Net (expenditure)/income (1,398) 1,166
(232)
7,426		 (44,731) (37,305)
Transfers between funds 0
0
0
0		 0 0
Net Movement in Funds (1,398) 1,166
(232)
7,426		 (44,731) (37,305)
Reconciliation of Funds:
Total Funds Brought Forward 59,745
57,000
116,745
52,319		 101,731 154,050
Total Funds Carried Forward 58,347
58,166
116,513
59,745		 57,000 116,745
Movements on all reserves and all recognised gains and losses are shown above.
The notes on pages 11 -17 form part of these financial statements

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

BALANCE SHEET

Unrestricted Restricted Total Total
31 Dec 31 Dec
Notes Funds Funds 2021 2020
FIXED ASSETS:
Tangible Assets 4 241 0 241 164
CURRENT ASSETS:
Debtors 5 14,752 0 14,752 26,571
Cash at Bank and in hand 6 45,580 58,166 103,746 90,621
60,332 58,166 118,498 117,192
LIABILITIES:
Creditors: amounts falling due
within one year 7 2,226 0 2,226 611
NET CURRENT ASSETS 58,106 58,166 116,272 116,581
NET ASSETS 58,347 58,166 116,513 116,745
Represented by:
Unrestricted Funds 58,347 0 58,347 59,745
Restricted Funds 8 0 58,166 58,166 57,000
TOTAL FUNDS 58,347 58,166 116,513 116,745

The notes on pages 11-17 form part of these financial statements

Approved by the Trustees on ……………………… 25 September 2022

Signed on their behalf by Trustee

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS

1.ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting.

The financial statements include all transactions, assets and liabilities for which the Trustees are responsible in law. They do not include the accounts of Church groups that owe an affiliation to another body or those that are informal gatherings of Church members.

The London Community Church meets the definition of a public benefit entity under FRS 102.

Going Concern

There are no material uncertainties about the Church’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.

Income recognition

Voluntary income and donations (including legacies) are accounted for once the Church has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured.

Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received. Grant income is recognised on a receivable basis.

The income from trading activities includes rental income from the letting of the Church’s premises which is accounted for when earned. It is shown gross, with the associated costs included in fundraising costs.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Church; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. Although the Church is registered for VAT under the Flat Rate Scheme, VAT is irrecoverable and therefore expenditure includes VAT where appropriate.

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London Community Church Report and Financial Statements Charity Number 292014 Year ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS

1.ACCOUNTING POLICIES (CONTINUED)

Charitable expenditure includes those costs in fulfilling The Church’s principal objects, as outlined in the Report of the Trustees. These include grants made, governance costs and support costs. Governance costs comprise all costs involving the public accountability of the Church and its compliance with regulation and good practice. These costs include costs related to the independent examination and legal fees.

Rentals under operating leases are charged as incurred over the term of the lease.

Tangible Fixed Assets

Expenditure is capitalised if the asset can be used for more than one year and costs at least £75. Assets are valued at cost or, if gifted, at the value to the charity on receipt.

Depreciation is calculated at a rate to write off the cost of tangible fixed assets on a straight line basis over their estimated useful lives. The rates applied per annum are as follows:

Café Fittings and Equipment 20% straight line basis Fixtures and Fittings and Office Equipment 20% straight line basis PA and Meeting Equipment 20% straight line basis Leasehold land and buildings Straight line basis over the remaining period of the lease

Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Fund accounting

The funds held by the charity are either:

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS

2. INCOME

Unrestricted Restricted Total
Total
Fund Fund 2021
2020
(a) Donations and legacies
Gifts and Donations 68,636 0 68,636
67,606
Regular Offerings 2,358 0 2,358
2,263
Property Fund Donations 0 0 0
1,992
Mission Fund Donations 105 1,795 1,900
2,374
Covid Donations 2,538 0 2,538
1,786
Covid Grants 0 0 0
36,368
Tax Recoverable 14,344 0 14,344
13,870
87,981 1,795 89,776
126,259
(b) Charitable Activities
Miscellaneous Income 2,150 0 2,150
12,496
2,150 0 2,150
12,496
(c) Other Trading Activities
Café Income 0 0 0
30,893
90,131 1,795 91,926
169,648
3. EXPENDITURE
Unrestricted Restricted Total
Total
Fund Fund 2021
2020
(a) Expenditure on Raising Funds - Café
People Costs 0 0 0
25,392
Pension Costs 0 0 0
376
Utilities (517) 0 (517)
704
Equipment Costs 0 0 0
148
Depreciation 60 0 60
2,383
Printing Postage and Stationery 0 0 0
36
Café Supplies 0 0 0
7,280
Consumables & Cleaning 0 0 0
80
Property Rent & Rates 128 0 128
25,331
Lease Amortisation 0 0 0
11,364
Insurance, Licences & Permits (283) 0 (283)
4,440
Bank Service Charges 0 0 0
346
Construction & Maintenance 0 0 0
683
Sundry expenses 0 0 0
832
VAT 0 0 0
3,783
(612) 0 (612)
83,178

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS

3. EXPENDITURE (CONTINUED)

(b) Expenditure on Charitable Activities

Unrestricted Restricted Total
Total
Fund Fund 2021
2020
Activities
Charitable Grants (see note below) 11,687 629 12,316
8,244
People Costs 69,835 0 69,835
69,231
Other Training costs 57 0 57
20
Property Rental 1,793 0 1,793
807
Equipment Costs 901 0 901
122
Depreciation 62 0 62
81
Loss on disposal of fixed assets 0 0 0
37,372
Telephones 576 0 576
540
Printing Postage and Stationery 863 0 863
578
Travel Costs 114 0 114
9
Hospitality Costs 1,445 0 1,445
1,146
Insurance 343 0 343
644
Licences & Permits 407 0 407
144
Bank Service Charges 224 0 224
190
Sundry expenses 670 0 670
707
Professional Fees 1,454 0 1,454
3130
Independent Examiner Fees 1,710 0 1,710
810
92,141 629 92,770
123,775

Staff Costs and Numbers

Included within expenditure are the following staff costs:

Included within expenditure are the following staff costs:
Total
Total
2021
2020
Salaried staff 0
25,392
Contracted staff 69,835
69,231
Employers National Insurance 0
1,395
Employer Allowance 0
(1,395)
Pension Contributions 0
376
69,835
94,999
Of which the following contract payments were made in relation to
Key Management Personnel: 68,400
68,400
Full time equivalent people represented 1.6
2.2

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS

3. EXPENDITURE (CONTINUED)

The Charity no longer operates a PAYE scheme for employed members of staff but no employee received emoluments greater than £60,000 (2020: None)

The charity makes payments on a self-employed basis, and the charity also uses volunteers and casual labour to further the Church's objects. The full-time elder is self-employed.

Charitable Grants

Included within expenditure are the following charitable grants made in accordance with the objects of the Church:

Unrestricted Restricted Total
Total
Fund Fund 2021
2020
To organisations:
Global Horizons 6,000 0 6,000
5,000
To individuals: 5,687 629 6,316
3,244
11,687 629 12,316
8,244

4. TANGIBLE FIXED ASSETS

Café PA & Fixtures Leasehold Total
Fittings & Meeting Fittings & Land &
Equipment Equipment Office Buildings
Equipment
Cost or Valuation
At start of the year 1 Jan 2021 298 17,604 9,246 0 27,148
Additions 0 199 0 0 199
Disposals 0 0 0 0 0
At end of the year 31 Dec 2021 298 17,803 9,246 0 27,347
Depreciation and impairments
At start of the year 1 Jan 2021 233 17,505 9,246 0 26,984
Depreciation Charge 60 62 0 0 122
Disposals 0 0 0 0 0
At end of the year 31 Dec 2021 293 17,568 9,246 0 27,107
Net Book Value 31 Dec 2021 5 236 0 0 241
Net Book Value 31 Dec 2020 65 99 0 0 164

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS

5. DEBTORS

5. DEBTORS
Unrestricted Restricted Total
Total
Fund Fund 2021
2020
Tax recoverable 14,342 0 14,342
13,870
Prepayments and Accrued
Income 410 0 410
376
Café Rent Deposit 0 0 0
12,325
14,752 0 14,752
26,571
6. CASH AT BANK AND IN HAND
Unrestricted Restricted Total
Total
Fund Fund 2021
2020
Cash in Hand 92 0 92
583
Lloyds Current Account 6,948 52,928 59,876
49,615
Lloyds Deposit Account 325 0 325
325
CAF Current Account 38,204 5,238 43,442
40,087
CAF Deposit Account 11 0 11
11
45,580 58,166 103,746
90,621

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Unrestricted Restricted Total
Total
Fund Fund 2021
2020
Creditors and Accruals 100 0 100
(31)
Lloyds Charge Card 416 0 416
(168)
Independent Examiner Fees 1710 0 1710
810
2,226 0 2,226
611

8. RESTRICTED FUNDS 8a Current year

8a Current year
At 1 Jan 2021 Income Expenditure Transfers At 31 Dec 2021
Property Fund - Funds 52,928 0 0 0 52,928
Property Fund - Lease 0 0 0 0 0
Mission Fund 4,072 1,795 629 0 5,238
57,000 1,795 629 0 58,166

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London Community Church Charity Number 292014

Report and Financial Statements Year ended 31 December 2021

NOTES TO THE FINANCIAL STATEMENTS

8. RESTRICTED FUNDS (continued)

8b Prior year

At 1 Jan 2020 Income Expenditure Transfers At 31 Dec 2020
Property Fund - Funds 19,093 1,992 0 31,843 52,928
Property Fund - Lease 80,579 0 48,736 -31,843 0
Mission Fund 2,059 2,454 441 0 4,072
101,731 4,446 49,177 0 57,000

9. TRUSTEES AND OTHER RELATED PARTIES

No payments (2020:£770) were made to any trustee or persons connected with them other than reimbursements of expenses incurred whilst carrying out Church business, nor were there any material transactions between the Church and a Trustee or any person connected with them.

The Trustees gave a total of £4,296 (2020: £4,207) in unrestricted offerings and donations during the year.

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