## Harborough Community Church Trust
Report and Accounts Year ended 31 October 2020
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **HARBOROUGH COMMUNITY CHURCH TRUST**
## **LEGAL AND ADMINISTRATIVE DETAILS**
**FOR THE YEAR ENDED 31 OCTOBER 2020**
ADDRESS FOR CORRESPONDENCE 121 Bath Street Market Harborough Leicestershire LE16 9JL Declaration of Trust dated 21 December 1984, GOVERNING DOCUMENT amended 19 January 2017 CHARITY REGISTRATION NUMBER 516122 TRUSTEES RESPONSIBLE FOR Mr J Briggs (Appointed April 2020) MANAGING THE CHARITY Mr R Dunning Mr C Stokes Mr P Walter Mr R Wilson BANKERS Lloyds Bank plc INDEPENDENT EXAMINER Jaimée Young Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
## **INDEX**
Page 1 Legal and Administrative Details Pages 2-5 Trustees' Report Page 6 Independent Examiner's Report Page 7 Receipts and Payments Account Page 8 Statement of Assets & Liabilities Pages 9-10 Notes to the Accounts
Page 1
## Harborough Community Church Trust
## ANNUAL REPORT YEAR ENDED 31 OCTOBER 2020
The Trustees are pleased to present their report together with the Financial Statements for the year ended 31[st] October 2020.
## CHARITABLE OBJECTIVES
The principal objective of the Church is to advance the Christian Faith. We are committed to being God’s workers in Market Harborough and to be a prayerful and Christ-centred church striving to be “Christ in the community”.
## ORGANISATION
Meetings of the Trustees complied with the requirements for the proper control of HARBOROUGH COMMUNITY CHURCH TRUST (Reg. 516122). Completed statements of the Trust’s affairs for the previous year were lodged with the Charity Commission and duly accepted. There were no changes in the Church Constitution.
New Trustees are appointed by the Elders of the church in accordance with the trust deed. Elders are appointed by the recommendation of the existing Elders subject to the approval of the church. New Elders are normally appointed as Trustees. Elders and Deacons, in their appropriate roles, met regularly for prayer seeking the Lord’s guidance for any matters requiring attention. The Deacons have contributed greatly to the work of the church and have reduced the burden on the Elders. Lorna Murphy was Treasurer/Administrator during the year.
Following a time of reflection for the church they appointed Phil Walter as Pastor from 1[st] September 2019 as an interim measure with the object of finding a man to take on the role in the future as well as take the church forward leading up to then.
## RISK STATEMENT
The Trustees continually review and update systems and policies regarding Health & Safety, Child Protection, Vulnerable Adults, Data Protection, GDPR and so on. These we see as vital in our day to day running of the church and take them very seriously.
2
## FINANCIAL REVIEW
The Finance Team consisted of Lorna Murphy (Treasurer / Administrator), John Daley (Chair from April 19) and Glyn Iliffe.
Funds of the church are maintained in an interest bearing account in accordance with the Trust reserves policy, with the remainder in a working current account. Funds continue to be received and are supported by the membership.
As is permitted for charities having income of less than £250,000, these accounts, have been prepared on a receipts and payments basis.
Total receipts for the year were: £144,600 (2019 £150,200) Total payments for the year were: £127,700 (2019 £128,500) giving a surplus of £16,900 (2019 £21,700).
At the end of the year, the church had reserves of £90,700 of which £81,100 was unrestricted.
The church’s practice is to give a minimum of 10% of its unrestricted income to support Missionary work both home and abroad.
Monthly support which includes prayer and financial giving continued this year for missionaries in Burkina Faso, Johannesburg, South Africa, and the Messengers charity working in South East Asia supporting the suffering church.
At home, support for the Bower House Counselling Service, The Cube youth work and Street Pastors in Market Harborough continued to be part of our mission interest.
We continue to be part of Churches Together in Harborough and have participated in various initiatives throughout the year. We are also Members of the Evangelical Alliance.
## RESERVES POLICY
The church’s policy is to maintain a prudent level of reserves, commensurate with its ongoing activities, maintenance costs and future commitments. The Trustees have agreed a minimum level of 3 months costs which at present amount to approximately £31,000. The unrestricted reserves at the year-end were £81,100 (2019: £73,600).
## REVIEW OF ACTIVITIES
The Trustees have regard to the guidance on public benefit issued by the Charity Commission.
The Church has a membership of 125 with a Sunday congregation of around 180 each week.
3
## Overview of 2020
The year can be divided very neatly into two halves November 2019 to March 2020 and then April - October 2020. The obvious reason for this has been the worldwide Covid-19 Pandemic. For the first half of the year the church was progressing well. New leadership structure helping us to focus more directly at areas of church life, a Jazz evening outreach sharing with another Harborough church in the area, encouraging a deeper love for each other and a sense of real purpose going forward. Over 40 groups were using our facilities during the week with a very wide range of community activity.
Covid-19 hit and church life changed dramatically! All activity within the building ceased including the coffee shop, Sunday services, Homegroups, use by outside bodies and children’s work.
The Elders quickly put in place online recorded services each week. These were seen by many more than our normal congregation numbers as these were available to be seen by folk maybe searching for the meaning to life. Zoom prayer meetings, a daily encouragement sent by email and much more. Homegroups in the main continued using Zoom and many ways were thought of to keep the church together. Of course we were unaware in the beginning that this would be a long-term effort.
We have been greatly blessed by God during this time as we now have a large Hardship Fund freely given by the members and others to distribute as we see real need. Our giving generally has been maintained with some having to stop and others starting to give.
On Sunday 4[th] October 2020 we began services back at the church. This required a great deal of work in risk assessments, policies and procedures meaning we are as Covid safe as we can be. Homegroups are now back at the church where required. The youth group, which did manage to continue in a smaller way, is also back in the building.
The time however, has not been wasted by any means. We have started a Leaders Training Course with ten young men attending, with the hope we may start one for women also. A new website appealing to the community is ready to launch soon. Our search for a new pastor continues and Phil Walter has agreed another year as interim pastor of HCC.
An online Alpha course is being set up to be launched soon.
We have been very aware that we are not able to meet our community in the normal way and this allows us to meet them online
4
## COVID Responsibilities
The last seven months of the year have brought with it a huge amount of often complex Government advice and guidelines, furlough procedures, (we furloughed our 2 Coffee Shop managers, three cleaners and Administrator) and much more. As Trustees we have endeavoured with the help of our finance manager to establish proper procedures to ensure the safety of all who enter the building. It has also been an opportunity to decorate and fix any ongoing issues in the building.
We have paid an outside agency to ensure that we are fully compliant with all pension regulations. As at the end of this financial year this was still ongoing but is now completed.
We are very conscious of the mental health of our members and have sought to support them pastorally and practically during this period.
## The Next 12 months
We envisage a continuing limit on church-based activity at least for the first half of the year and will be planning accordingly. As Trustees we will keep a close eye on the charity’s finances, as giving may decrease due to the effects of the pandemic on people’s income.
We are determined to move the church forward during this time and are looking to develop ways of doing this within the restrictions at the time.
## TRUSTEES RESONSIBILITIES
Charity Law requires us as Trustees to prepare financial statements for each accounting year which record the receipts and payments for the charity for the year (Nov 1 – Oct 31).
We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable us to ensure the financial statements comply with the Charities Act 2011.
We also have a responsibility to safeguard the assets of the charity and to take reasonable steps to prevent fraud or any other irregularities.
## Approval
This report was approved by the Trustees and signed on their behalf by
Philip Walter
Date: 28 July 2021
5
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF**
## **HARBOROUGH COMMUNITY CHURCH TRUST**
I report to the trustees on my examination of the accounts of Harborough Community Church Trust ('the charity') for the year ended 31 October 2020 on pages 7 to 10 following.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and 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 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 accordance with section 130 of the 2011 Act; or
2. the accounts do not accord with the accounting records.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Jaimée Young
Stewardship 1 Lamb's Passage LONDON EC1Y 8AB
Date: 13 August 2021
Page 6
## **HARBOROUGH COMMUNITY CHURCH TRUST**
## **RECEIPTS AND PAYMENTS ACCOUNT**
## **FOR THE YEAR ENDED 31 OCTOBER 2020**
|||||||||Unrestricted|Funds|||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||||||||General|Designated||Restricted|Total|Total|
|||||||||Funds||Funds|Funds|2020|2019|
||||||||Notes|£||£|£|£|£|
|**_Income receipts_**||||||||||||||
|Donations||||||||92,669||-|9,637|102,306|94,459|
|Gift aid receipts||||||||16,804||-|-|16,804|16,353|
|Government grants||||||||10,112||-|-|10,112|-|
|Coffee shop||||||||10,631||-|-|10,631|22,505|
|Use of halls||||||||4,330||-|-|4,330|12,033|
|Charitable activities||||||||240||-|-|240|4,590|
|Interest received||||||||167||-|-|167|159|
|Other||||||||10||-|-|10|75|
|**_Total receipts_**||||||||134,963||-|9,637|144,600|150,174|
|**_Payments_**||||||||||||||
|Payments
in
relation
to
activities undertaken directly|||||charitable||2|118,055||-|-|118,055|109,528|
|Grants
paid
in
relation
to
activities undertaken by others|||||charitable||3|9,400||-|274|9,674|18,948|
|**_Total payments_**||||||||127,455||-|274|127,729|128,476|
|Net
of
receipts||/|(payments)|||before||||||||
|transfers||||||||7,507||-|9,364|16,871|21,698|
|Transfers between funds|||||||5|-||-|-|-|-|
|**Net movement in funds**||||||||7,507||-|9,364|16,871|21,698|
|Cash funds as at|last||year|end||||73,630||-|157|73,787|52,089|
|**Cash funds at this**||**year end**|||||A|81,138||-|9,520|90,658|73,787|
The notes on pages 9-10 form part of these accounts.
Page 7
## **HARBOROUGH COMMUNITY CHURCH TRUST**
## **STATEMENT OF ASSETS AND LIABILITIES FOR THE YEAR ENDED 31 OCTOBER 2020**
|**A**
**Cash funds**
Cash at bank with immediate access
Notice deposits
Petty cash|General
Designated
funds
funds
£
£
54,418
-
26,720
-
-
-
**81,138**
**-**
Unrestricted Funds|Restricted
funds
£
9,520
-
-
**9,520**|Total
2020
£
63,938
26,720
-
**90,658**|Total
2019
£|
|---|---|---|---|---|
|||||47,019
26,598
170|
|||||**73,787**|
|**B**
**Other monetary assets**
Gift aid due to charity
HMRC JRS grant (Sept)
**C**
**Liabilities**
**Falling due within one year:**
Fee for Independent Examination|10,703
832
**11,535**
1,320
**1,320**|-
-
**-**
-
**-**|-
-
**-**
-
**-**|10,703
832
**11,535**
1,320
**1,320**|8,572
-|
|---|---|---|---|---|---|
||||||**8,572**|
||||||1,140|
||||||**1,140**|
## **D Assets retained for charity's own use**
|**ets retained for charitys own use**
Church building
Contents and equipment|Insurance
value
2020
£
2,721,600
82,000
**2,803,600**|Insurance
value
2019
£|
|---|---|---|
|||2,592,000
80,000|
|||**2,672,000**|
The trustees have used insurance values as the trustees are unable to reliably estimate current values; insurance values may differ materially from current values.
The accounts were approved by the trustees and signed on their behalf
**----- Start of picture text -----**
by date
Philip Walter 28 July 2021
The notes on pages 9-10 form part of these accounts.
**----- End of picture text -----**
Page 8
## **HARBOROUGH COMMUNITY CHURCH TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 OCTOBER 2020**
## **1 Accounting policies**
The accounts have been prepared on a receipts and payments basis and comprise a statement that shows the charity's receipts and payments, a statement that summarises the charity's assets and liabilities and related notes. The accountancy profession have determined that only accounts prepared in accordance with applicable accounting standards present a 'true and fair' view and, as these receipts and payments accounts have not (and cannot) be prepared in accordance with accounting standards, these accounts do not present (and are not intended to present) a 'true and fair' view of the charity's financial activities and state of affairs.
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.
|**2**
**Payments in relation to charitable activities undertaken directly**
Salaries (excluding coffee shop and cleaning)
Coffee Shop Expenditure (including salaries)
Repairs & maintenance (including salaries)
Utilities
Church activities
Insurance
Catering
Website expense
Children & youth work
Bank charges
Administration, office expenses and subscriptions
Governance costs
Other costs
**3**
**Grants and gifts paid to others**
_Grants for institutions:_
Malawi Borehole Donation
The Messengers
The Cube
Harborough Christian Counselling Service
Other organisations under £1,000
_Grants for individuals:_
Missionary Support
Hardship / relief of poverty|Unrestricted Fun|ds
Designated
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
274
274|Total
2020
£
59,082
20,594
13,241
10,990
5,491
2,105
224
1,020
496
366
3,172
1,274
-
118,055
-
1,200
1,200
-
1,000
6,000
274
9,674|Total
2019
£|
|---|---|---|---|---|---|
||General
funds
£
59,082
20,594
13,241
10,990
5,491
2,105
224
1,020
496
366
3,172
1,274
-
118,055
-
1,200
1,200
-
1,000
6,000
-
9,400|||||
||||||30,582
24,494
12,651
11,728
19,129
2,041
391
1,988
404
467
4,218
1,399
34|
||||||109,528|
||||||2,378
-
-
1,600
400
14,570
-|
||||||18,948|
Page 9
## **HARBOROUGH COMMUNITY CHURCH TRUST**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 OCTOBER 2020**
## **4 Transactions with related parties**
Phil Walter, a trustee, served as a church leader and was paid £30,708 [2019: £4,885] for serving in that capacity, not for serving as a trustee. Lidia Dunning, spouse of trustee Ross Dunning, served in the coffee shop and was paid £7,436 [2019: £7,410] for serving in that capacity. The above payments are permitted by the charity's governing document.
|**5**
**Movement of funds**
General funds
Restricted funds
Malawi Borehole
Malawi - other
Hardship Fund
Mission Funds (missionary support)
Total funds|Balance at
31Oct2019
£
73,630
73,630
-
-
-
157
157
73,787|Receipts
£
134,963
134,963
539
75
8,974
50
9,637
144,600|Payments
£
(127,455)
(127,455)
-
-
(274)
-
(274)
(127,729)|Transfers
£
-
-
-
-
-
-
-
-|Balance at
31Oct2020
£
81,138|
|---|---|---|---|---|---|
||||||81,138|
||||||539
75
8,700
207|
||||||9,520|
|||||||
||||||90,658|
The Malawi Borehole fund relates to funds donated for this specific purpose. The Malawi other Fund relates to funds donated for the work in Malawi.
The Hardship Fund relates to donations given specifically to help people in need. The Mission Fund is for donations given for missionaries supported by the church.
Page 10