**REGISTERED CHARITY NUMBER: 518785**
## **REPORT OF THE TRUSTEES AND**
**UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **FOR**
## **HARVEST CITY CHURCH**
Mark J Rees LLP Chartered Accountants Granville Hall Granville Road Leicester LE1 7RU
## **HARVEST CITY CHURCH**
## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
**----- Start of picture text -----**
Page
Report of the Trustees 1 to 7
Independent Examiner's Report 8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Cash Flow Statement 12
Notes to the Financial Statements 13 to 23
Detailed Statement of Financial Activities 24 to 25
**----- End of picture text -----**
**HARVEST CITY CHURCH**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
The trustees present their report with the financial statements of the charity for the year ended 30 September 2020. The trustees have adopted the provisions of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", the Charities Act 2011 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The objectives of the Fellowship as laid down in the Declaration of Trust dated 27 March 1987 are:
1. The advancement of the Christian Faith in accordance with the doctrines set out in the underwritten Fourth Schedule and the worship of God in the said County and elsewhere by any means whatsoever including (but not by way of limitation) the preaching and proclamation of the Christian Gospel and the teaching of the Christian doctrine and principles and the pastoral care of the Christian people and the printing and distribution of the Bible and Christian literature.
2. The relief of persons who are in conditions of need, hardship, distress or who are aged or sick.
3. The advancement of education on the basis of Christian principles and without prejudice to the generality of the provision of such education in any educational establishment and if the trustees so decide, the provision of one or more charitable educational establishments for the general education of children or adults on the basis of such Christian principles.
The trustees have had due regard to the guidance published by the Charity Commission on public benefit as required by the Charities (Accounts and Reports) Regulations 2008.
## **Significant activities**
The Church is involved in many programmes for the local community - with children and youth groups, and regular groups running activities for single mothers and older people. The Church also has members coming from many different cultural backgrounds and is recognised as a Church promoting multicultural understanding.
Page 1
**HARVEST CITY CHURCH**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **ACHIEVEMENT AND PERFORMANCE Charitable activities General Church Activities**
The Church normally meets every Sunday morning in person for two services to accommodate the congregation numbers. Our congregation includes people from all over the world reflecting the diversity of our city.
There is also a meeting every Tuesday evening for the purpose of Bible teaching but also increasingly additional smaller group teaching for those involved in singing and music, foundational Christian belief teaching and meetings for new people wishing to join the Church or get baptised. Our partnership classes' this year have resulted in twenty new members.
We also hold sessions from time to time for those who run businesses to teach about ethical principles involved in running and building your own business. This is run by one of our trustees who has an expertise in this area.
A nine-month intern programme also continues each year for any Church members who wish to study the Bible in greater depth and is useful for developing people's skills in writing and presenting topics and projects. This is run by one of our trustees and elders Ian Mann.
Small groups called 'Harvest Groups' meet once a month to enable people to develop closer friendships, to help those in need of practical help and support and encourage each other with prayer . These groups always include up to 20 people of different ages and cultural backgrounds and are a good opportunity to develop friendships with people from very different backgrounds. There are 17 of these groups in total meeting in various homes all over the city.
During the pandemic all our meetings and small group activities have been rearranged in line with government and local guidelines. Since March 2020 most meetings have been either streamed online or arranged via zoom with some limited opportunities to meet face to face during the summer months in 2020. Our Sunday services and Tuesday evening meetings are all available on YouTube and have made our meetings accessible to a wider audience. Our leaders and tech teams continue to work very hard behind the scenes to make sure these meetings run smoothly.
## **Children and youth work**
This is the largest department in the work of the Church.
A parent and toddler group has met every week in our Church premises and enjoyed a varied programme of informal meetings and outings, called Cafe Mama.
All children up to the age of 11 usually attend Junior Church on Sunday mornings and Tuesday evenings. There are over one hundred children in this age group divided into 5 groups according to age. They enjoy a varied programme of games, music and Bible teaching. This group includes children with special needs who are assigned special helpers. The teachers meet together regularly to review policies and child safeguarding. The head of the children's work is Mrs Sarah Woods who is herself a special needs teacher.
The youth work includes young people from aged 11-30 and is divided into 2 groups. It is open to the wider community and the 11-15 age group, called Ignite, now have their own special evening on Friday's and are expanding in numbers, currently up to 30 children in attendance. The older group aged 16-30, called The Pulse, continue to meet on Saturday evenings and attract over 50 young people. Both groups have a programme of music and worship, games and Bible teaching.
During the pandemic, all these meetings and group activities have continued but have transferred to online and zoom with the help of our Junior Church, Ignite and The Pulse leadership.
Page 2
**HARVEST CITY CHURCH**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Other groups**
The men meet in a group called 'Excel'. They get together bi-monthly for Bible teaching, meals together or other activities such as bowling. The ladies have their own group called 'Shine' that meets once a month for relevant Bible teaching and sometimes other activities like shopping trips or theatre outings.
There is also a group for people who have progressed on from the youth groups or are in the right age bracket. This is called 'Dare' and caters to the 30-40s age groups. They meet monthly for meals out together.
Our senior and retired members have an active group called 'New Horizons' which meets every few weeks and has a varied programme of outings, meals, movies, skittles etc.
During the pandemic most of the above groups have continued meeting via video conferencing. Outside activities have had to cease and our leaders have been supporting many of our older and more vulnerable members with regular phone calls and food deliveries.
The Church also runs a group for NHS staff, especially junior medical staff and medical students, which is called 'Medics Corner'. This is mainly supportive in nature and includes discussions on ethics and other topics of relevance as well as sharing up to date medical information. It is run by two GP's.
Since the pandemic the Church has been engaged in supporting our NHS and care workers with regular supportive phone calls and food deliveries.
The Church attracts a number of students attending Leicester's universities and colleges. This group has a weekly invitation to a home for Sunday lunch. This has temporarily ceased since March 2020 due to the pandemic.
## **Relationships within the community**
Every August Bank Holiday Sunday we hold an annual summer fayre at Judgemeadow Community College. This includes many activities for children and is free to the local community. It has become an increasingly popular event and attracts families from all cultures and faiths.
Every autumn we organise an 'Out of Africa and Beyond' event also at Judgemeadow Community College. This is a truly multicultural event that celebrates the many cultures represented by our Church, around thirty different nations, and many visitors enjoy the programme of music, dancing, Biblical message and the variety of different foods.
For the last two years we have held a Christmas market at our own premises and have had the privilege of working with our local Asda supermarket charity worker to arrange prizes etc. Members of the local community have come in to run stalls.
Our many groups and activities are open to all of the community and attract regular visitors, especially our youth work. We have an 'Acts of Kindness' initiative to encourage people to donate food to be given to those in need especially during the Christmas period.
During the pandemic this has become a much larger part of the work that the Church does and so we have partnered with charities in Leicester to help with giving out food weekly to many people that are in need.
Page 3
**HARVEST CITY CHURCH**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
Other care for the sick and elderly in the congregation and outside is carried out informally by harvest groups and their members alongside other small groups also.
Our 'Potspoon Cafe' is open every Wednesday, Thursday and Friday and is popular with local Leicester College staff and people visiting the city centre. It is also used as a relaxing place to meet and support people needing advice and counselling. The site is not currently open due to the COVID-19 pandemic.
## **Relationships with other churches**
Harvest City Church is part of a worldwide group of Churches called 'Ministers Fellowship Global' (MFG). Our senior Pastors, Chip and Sarah Kawalsingh, are on the leadership team for MFG and regularly visit other Churches in many countries including Canada, the USA, the West Indies, Netherlands and Japan to encourage and help their Pastors and Churches.
Other Church members including members of our youth group also accompany our Pastors on their ministry trips and benefit from that experience. MFG holds regional meetings in the UK twice a year attended by all our leaders and also an international conference once a year. Unfortunately, due to the pandemic the yearly conference, travelling itinerary and other regional conferences and meetings have been cancelled since March 2020. However there have been virtual conferences done online via webinars and smaller regional leaders meetings have continued via that method also.
Our senior Pastors have continued to support other Church leaders more remotely via phone and video conferencing.
Our Church has continued to support the work of an orphanage in Hyderabad India.
Our Pastor has written a number of books and materials for Church teaching. These include 'God, a Mocha and Me', 'An Extra Shot', 'Fruits of The Spirit', 'Battle For The Mind', 'Hope' prayer cards, 'Giants Will Fall', 'Partnership Guide', 'Leadership Guide' and 'Introduction to Systematic Theology'. He is currently writing a series of booklets on essentials of the Christian faith which are in the process of being published. Many of these materials are also in use in Churches around the UK and internationally.
Our Church supports various Christian ministries as mentioned above. These gifts are always discussed with the trustees and approved by them. The recipient organisations are mainly associated with MFG or Portland Bible College. This is the college where Pastors Chip and Sarah Kawalsingh received their theological and musical training degrees.
Recipient organisations include:
- Ministers Fellowship Global.
- Ministers Fellowship West Indies.
(These organisations support Churches and charitable work in Eastern Europe, Africa, India, and the West Indies etc.)
- Light of Life Full Gospel Church (an MFG Church in Toronto).
- Northside City Church.
- Freedom Fellowship Church.
- Shine, our ladies fellowship, charitable donation to Leicester City
- (Charitable organisations working with the homeless.)
Page 4
**HARVEST CITY CHURCH**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **FINANCIAL REVIEW**
## **Overview of finances**
The Church remains in a healthy financial state. However due to the ongoing pandemic, with the additional lockdown issues in Leicester, the Church has spent the months from March 2020 with only limited opportunities for face to face meetings. For many of our members this remains an ongoing difficult time in terms of employment and finances which has had an inevitable impact on our Church income with donations having dropped during this financial year.
We own our own Church premises in St Johns St Leicester and up until March 2020 also hired an additional meeting hall at Judgemeadow College on Sunday mornings and Tuesday evenings in order to accommodate increasing congregation numbers.
We currently have over £500,000 in our current bank account in order to save towards the future purchase of a larger premises to house our present congregation and plan for future growth.
We continue to actively look at possible suitable properties.
## **Reserves policy**
It is the policy of the trustees to maintain the unrestricted fund not committed or invested in fixed assets less related borrowing, at a level which equates with a range of between three to twelve months unrestricted expenditure, in order to provide sufficient funds to finance expenditure on charitable activities and governance costs.
At 30 September 2020 the total funds held are £1,385,870. This includes £409,249 in tangible fixed assets and £1,430 in restricted funds.
As mentioned above the charity has continued to build its reserves in order to fund a future purchase of a larger premises.
## **FUTURE PLANS**
The charity looks forward to further achieving its charitable objectives during the forthcoming year. It is anticipated that the income and activities of the charity will continue to expand.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is controlled by its governing document, a Trust Deed dated 27 March 1987 and was formally registered as a charity on 13 May 1987. The charity was formerly known as Beaumont Christian Fellowship.
## **Organisational structure**
Overall responsibility for the Fellowship lies with the trustees of whom there are seven, with an elder responsible for overseeing the Church. These two bodies, the trustees and eldership, while having distinct roles have common members and between them are responsible for the formulating and implementation of policies designed to further the objectives of the Fellowship.
New trustees are appointed under the authority of the existing body of trustees.
The induction and training of new trustees is provided by the existing trustees as appropriate to the charity's objectives.The Declaration of Trust provides for a minimum of three trustees with no maximum limit. The trustees meet on a regular basis and are responsible for the overall policy for running the charity and advising on all matters relating to staffing and finance.
Page 5
**HARVEST CITY CHURCH**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Probity and overview**
The policies and activities of the Church are currently formulated by a group of 7 trustees. Trustee Mr Peter Moyo left our organisation in October 2019 and resigned as a trustee. The chairman of the trustees and Church Senior Pastor is Mr Andy Paul Chip Kawalsingh.
The trustees have regular minuted meetings and all financial decisions including donations and salaries are discussed and agreed upon prior to implementation. The trustees meet every year to discuss and decide the salaries of our leaders Pastor Chip (Andy) and Sarah Kawalsingh - the decision is made by the other trustees and is based on the work they do and the increase in their responsibilities. It is also influenced by the increase in membership and finances. It is noted that they donate around 20% of their salaries back to the Church in gifts and offerings. Three trustees (Chip Kawalsingh, Ian Mann and Tatenda Kandi) are also employed by the Church but trustees themselves receive no remuneration for being trustees.
The trustees also review the accounts and check all policies are up to date and implemented - this has included the data protection act, all health and safety policies and making sure all Junior Church staff are up to date in child protection training. One of our trustees Ian Mann is in charge of all the health and safety protocols in the Church and these are reviewed by the trustees every year. These include fire risk assessment, health and safety policy, safeguarding, data protection, employee complaints policy.
The Church treasurer is trustee Mrs Tanya Goffin and the Church secretary is now trustee Mr Jim Johnston.
Day to day running of the Church is carried out by Pastor Chip Kawalsingh with the particular help of Mr Ian Mann (trustee employed by the Church) and other trustees as needed. They are assisted by 6 office staff - 5 full time and 1 part time.
The music and worship team are led by Mrs Sarah Kawalsingh who is employed full time by the Church. She oversees the training of new musicians especially from the younger age groups. The ignite and pulse groups have their own music bands. Members of the worship team have written new songs over the last few years and the Church has produced two music CD's 'Salvation is Here' and 'Unveil My Eyes'.
## **Related parties**
Details of related parties and transactions with them are given in the notes to the financial statements.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 518785
## **Principal address**
Unit 1 St Margaret's Business Centre 14 St John Street Leicester LE1 3WL
Page 6
**HARVEST CITY CHURCH**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Trustees**
Rev AP Kawalsingh (Chair) Mr LP Venning Mrs T Goffin (Treasurer) Mr I Mann Mr N Gallagher Mr P Moyo (resigned 31.10.2019) Mr J Johnston (Secretary) Mr T Kandi
## **Independent Examiner**
Mr P Bott FCA Mark J Rees LLP Chartered Accountants Granville Hall Granville Road Leicester LE1 7RU
## **Bankers**
Yorkshire Bank 3 Eastgates Leicester LE1 5YA
## **Solicitors**
Croftons Solicitors LLP The Lexicon 10 – 12 Mount Street Manchester M2 5FA
## **Freehold Property**
Rev AP Kawalsingh, Mrs T Goffin and Mr LP Venning hold title to the Freehold Property on behalf of the charity.
Approved by order of the board of trustees on 15 April 2021 and signed on its behalf by:
Mr J Johnston (Secretary) - Trustee
Page 7
**INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HARVEST CITY CHURCH**
## **Independent examiner's report to the trustees of Harvest City Church**
I report to the charity trustees on my examination of the accounts of Harvest City Church (the Trust) for the year ended 30 September 2020.
## **Responsibilities and basis of report**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of _ which is one of the listed bodies.
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 Trust 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.
## **Use of our report**
This report is made solely to the charity's members. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our work, for this report, or for the opinions we have formed.
Mr P Bott FCA Mark J Rees LLP Chartered Accountants Granville Hall Granville Road Leicester LE1 7RU
15 April 2021
Page 8
**HARVEST CITY CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
4
Advancement of Christian faith
Investment income
3
**Total**
**EXPENDITURE ON**
**Charitable activities**
5
Advancement of Christian faith
Other
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
fund
£
**509,613**
**24,662**
**9,640**
**543,915**
**515,186**
**865**
**516,051**
**27,864**
**1,356,576**
**1,384,440**|Restricted
fund
£
**-**
**3,860**
**-**
**3,860**
**3,980**
**-**
**3,980**
**(120)**
**1,550**
**1,430**|**2020**
**Total**
**funds**
**£**
**509,613**
**28,522**
**9,640**
**547,775**
**519,166**
**865**
**520,031**
**27,744**
**1,358,126**
**1,385,870**|2019
Total
funds
£
613,774
33,854
2,960
650,588
535,159
1,942
537,101
113,487
1,244,639
1,358,126|
|---|---|---|---|---|
The notes form part of these financial statements
Page 9
## **HARVEST CITY CHURCH**
## **BALANCE SHEET 30 SEPTEMBER 2020**
|Notes
**FIXED ASSETS**
Tangible assets
12
**CURRENT ASSETS**
Stocks
13
Debtors
14
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
15
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
16
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Unrestricted
fund
£
**409,249**
**10,880**
**47,557**
**933,105**
**991,542**
**(16,351)**
**975,191**
**1,384,440**
**1,384,440**|Restricted
fund
£
**-**
**-**
**-**
**1,430**
**1,430**
**-**
**1,430**
**1,430**
**1,430**|**2020**
**Total**
**funds**
**£**
**409,249**
**10,880**
**47,557**
**934,535**
**992,972**
**(16,351)**
**976,621**
**1,385,870**
**1,385,870**
**1,384,440**
**1,430**
**1,385,870**|2019
Total
funds
£
413,495
4,372
54,632
921,445
980,449
(35,818)
944,631
1,358,126
1,358,126
1,356,576
1,550
1,358,126|
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on 15 April 2021 and were signed on its behalf by:
Rev AP Kawalsingh (Chair) - Trustee
Mrs T Goffin (Treasurer) - Trustee
The notes form part of these financial statements
Page 10
**HARVEST CITY CHURCH**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
**Change in cash and cash equivalents in the**
**reporting period**
**Cash and cash equivalents at the beginning**
**of the reporting period**
**Cash and cash equivalents at the end of the**
**reporting period**|**2020**
**£**
**24,991**
**(1,918)**
**23,073**
**(18,271)**
**8,288**
**(9,983)**
**13,090**
**921,445**
**934,535**|2019
£
144,805
(1,185)
143,620
(16,684)
610
(16,074)
127,546
793,899
921,445|
|---|---|---|
The notes form part of these financial statements
Page 11
**HARVEST CITY CHURCH**
## **NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**1.**
**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
**2020**
2019
**£**
£
**Net income for the reporting period (as per the Statement of Financial**
**Activities)**
**27,744**
113,487
**Adjustments for:**
Depreciation charges
**22,517**
21,797
Interest received
**(8,288)**
(610)
Interest paid
**1,918**
1,185
(Increase)/decrease in stocks
**(6,508)**
6,999
Decrease/(increase) in debtors
**7,075**
(18,005)
(Decrease)/increase in creditors
**(19,467)**
19,952|**1.**
**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
**2020**
2019
**£**
£
**Net income for the reporting period (as per the Statement of Financial**
**Activities)**
**27,744**
113,487
**Adjustments for:**
Depreciation charges
**22,517**
21,797
Interest received
**(8,288)**
(610)
Interest paid
**1,918**
1,185
(Increase)/decrease in stocks
**(6,508)**
6,999
Decrease/(increase) in debtors
**7,075**
(18,005)
(Decrease)/increase in creditors
**(19,467)**
19,952|
|---|---|
|**Net cash provided by operations**|**24,991**
144,805|
|2.
**ANALYSIS OF CHANGES IN NET FUNDS**
At 1.10.19
£
**Net cash**
Cash at bank and in hand
**921,445**|Cash flow
**At 30.9.20**
£
**£**
**13,090**
**934,535**|
|**921,445**|**13,090**
**934,535**|
|**Total**
**921,445**|**13,090**
**934,535**|
The notes form part of these financial statements
Page 12
**HARVEST CITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
## **Income**
All incoming resources including donations, gifts and grants are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Donations, gifts and grants have been included as income from incoming resources from charitable activities where these relate to specific expenditure to be incurred, but as voluntary income where they have been given with greater freedom of use. Income receivable under gift aid includes the related income tax recoverable. Investment income comprising interest receivable is included when receivable by the charity.
## **Expenditure**
Expenditure is accounted for on an accruals basis inclusive of the attributable VAT which cannot be recovered and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Costs of charitable activities include those costs incurred in respect of the charity's main activities and providing services for its beneficiaries. Grants payable are accounted for at the earlier of when they are paid or become legally enforceable. Governance costs include those costs incurred in meeting the constitutional and statutory requirements of the charity.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
**----- Start of picture text -----**
|||
|---|---|
|Freehold property|- 2% on cost excluding land|
|Furniture and equipment|- 20% on reducing balance|
**----- End of picture text -----**
All tangible fixed assets are capitalised and included at cost.
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
continued...
Page 13
**HARVEST CITY CHURCH**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **1. ACCOUNTING POLICIES - continued**
## **Fund accounting**
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Hire purchase and leasing commitments**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
## **Pension costs and other post-retirement benefits**
The charity contributes to a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
## **Debtors**
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
## **Creditors**
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
## **Going Concern and Impact of COVID-19**
From late March 2020 the COVID-19 pandemic had a significant impact on the charity's operations. After reviewing the charity's forecasts and projections, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## **2. DONATIONS AND LEGACIES**
|Tithes and offerings
Gift aid - income tax recoverable|**2020**
**£**
**428,072**
**81,541**
**509,613**|2019
£
509,596
104,178
613,774|
|---|---|---|
continued...
Page 14
**HARVEST CITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020**
**----- Start of picture text -----**
3. INVESTMENT INCOME
2020 2019
£ £
Rents received 1,352 2,350
Bank interest receivable 8,288 610
9,640 2,960
4. INCOME FROM CHARITABLE ACTIVITIES
2020 2019
Activity £ £
Teaching and bookshop Advancement of Christian faith 2,104 2,303
Hospitality and refreshments Advancement of Christian faith 214 382
Children and youth work Advancement of Christian faith - 1,662
Donations - Manna Ministries Advancement of Christian faith 3,860 4,350
Events Advancement of Christian faith 9,036 15,211
Pot Spoon Café Advancement of Christian faith 4,574 5,565
Miscellaneous Advancement of Christian faith 8,734 4,381
28,522 33,854
5. CHARITABLE ACTIVITIES COSTS
Grant
funding of
Direct activities Support
Costs (see (see note costs (see
note 6) 7) note 8) Totals
£ £ £ £
Advancement of Christian faith 385,375 36,485 97,306 519,166
**----- End of picture text -----**
continued...
Page 15
**HARVEST CITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**6.**
**DIRECT COSTS OF CHARITABLE ACTIVITIES**
Trustees' remuneration
Staff costs
Ministry expenses
Teaching and bookshop
Hospitality and refreshments
Children and youth work
Events
Pot Spoon Café
**7.**
**GRANTS PAYABLE**
Advancement of Christian faith
The total grants paid to institutions during the year was as follows:
Ministers Fellowship Global
Ministers Fellowship West Indies
Light of Life Full Gospel Church
Northside City Church
Other
OSAKA
Royal British Legion
Shine Charity
Freedom Fellowship Church|**2020**
**£**
**171,254**
**172,807**
**7,993**
**3,608**
**4,643**
**1,032**
**20,335**
**3,703**
**385,375**
**2020**
**£**
**36,485**
**2020**
**£**
**10,045**
**2,500**
**-**
**4,039**
**7,310**
**-**
**100**
**364**
**579**
**24,937**|2019
£
147,012
145,990
4,050
12,563
6,406
1,679
24,791
3,840
346,331
2019
£
46,563
2019
£
20,233
5,000
5,972
-
-
2,000
-
-
-
33,205|
|---|---|---|
Grants payable to individuals amount to £7,567 (2019: £9,277).
continued...
Page 16
**HARVEST CITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **8. SUPPORT COSTS**
|Governance
Management
costs
£
£
Advancement of Christian faith
**88,010**
**9,296**
Support costs, included in the above, are as follows:
**Management**
**2020**
Advancement
of
Christian
faith
**£**
Rent of premises
**18,199**
Insurance
**2,693**
Light, heat and water
**5,761**
Travel and transport
**9,376**
Postage, stationery and telephone
**7,089**
Publicity
**5,044**
Sundries
**11,992**
Repairs and maintenance
**5,340**
Depreciation of tangible assets
**22,516**
**88,010**
**Governance costs**
**2020**
Advancement
of
Christian
faith
**£**
Professional expenses
**4,253**
Accountancy and legal fees
**625**
Independent examiners remuneration
**2,500**
Bank interest
**1,918**
**9,296**|Totals
£
**97,306**
2019
Total
activities
£
**29,635**
**2,658**
**6,616**
**36,630**
**9,733**
**8,978**
**13,237**
**4,542**
**21,797**
**133,826**
2019
Total
activities
£
**4,219**
**610**
**2,425**
**1,185**
**8,439**|
|---|---|
continued...
Page 17
**HARVEST CITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **9. TRUSTEES' REMUNERATION AND BENEFITS**
|Trustees' salaries
Trustees' pensions paid|**2020**
**£**
**148,650**
**22,604**
**171,254**|2019
£
128,753
18,259
147,012|
|---|---|---|
Trustees' remuneration is made up of salaries paid to Rev AP Kawalsingh £77,473 (2019: £64,133), Mr I Mann £43,177 (2019: £42,475) and Mr T Kandi £28,000 (2019: £22,145).
Trustees' pension is made up of contributions of £15,519 (2019: £11,558) for Rev AP Kawalsingh, £6,430 (2019: £6,300) for Mr I Mann and £654 (2019: £401) for Mr T Kandi.
Remuneration paid to the above Trustees reflects the work performed and their responsibility for the charity.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 30 September 2020 nor for the year ended 30 September 2019.
## **10. STAFF COSTS**
||**2020**|2019|
|---|---|---|
||**£**|£|
|Wages and salaries|**285,050**|244,261|
|Social security costs|**24,464**|21,295|
|Other pension costs|**11,943**|9,187|
||||
||**321,457**|274,743|
||||
|The average monthly number of employees during the year was as follows:|||
|---|---|---|
||**2020**|2019|
|Salaried staff - charitable activities|**8**|8|
||||
The emoluments of one (2019: nil) member of staff are within the range of £60,000 to £69,999.
The emoluments of nil (2019: one) member of staff are within the range of £70,000 to £79,999.
The emoluments of one (2019: nil) member of staff are within the range of £90,000 to £99,999.
Staff costs include salaries paid to Mrs S Kawalsingh, wife of Rev AP Kawalsingh, trustee of £54,500 (2019: £39,964) and to Mrs H Venning, wife of Mr LP Venning, trustee of £20,000 (2019: £17,253).
Pension costs include a contribution for Mrs S Kawalsingh, wife of Rev AP Kawalsingh, trustee of £10,235 (2019: £7,234) and for Mrs H Venning, wife of Mr LP Venning trustee of £414 (2019: £333).
continued...
Page 18
**HARVEST CITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **10. STAFF COSTS - continued**
Total remuneration in relation to Key Management Personnel, included within the figures above, amounts to £189,163 (2019: £141,998).
|**11.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - 30 SEPTEMBER**
Unrestricted
Restricted
fund
fund
£
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
613,774
-
**Charitable activities**
Advancement of Christian faith
29,504
4,350
Investment income
2,960
-
**Total**
646,238
4,350
**EXPENDITURE ON**
**Charitable activities**
Advancement of Christian faith
531,079
4,080
Other
1,942
-
**Total**
533,021
4,080
**NET INCOME**
113,217
270
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
1,243,359
1,280
**TOTAL FUNDS CARRIED FORWARD**
1,356,576
1,550|**2019**
Total
funds
£
613,774
33,854
2,960
650,588
535,159
1,942
537,101
113,487
1,244,639
1,358,126|
|---|---|
continued...
Page 19
**HARVEST CITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **12. TANGIBLE FIXED ASSETS**
|**COST**
At 1 October 2019
Additions
At 30 September 2020
**DEPRECIATION**
At 1 October 2019
Charge for year
At 30 September 2020
**NET BOOK VALUE**
At 30 September 2020
At 30 September 2019|Freehold
property
£
**448,717**
**-**
**448,717**
**93,913**
**7,124**
**101,037**
**347,680**
354,804|Furniture
and
equipment
£
**214,338**
**18,271**
**232,609**
**155,647**
**15,393**
**171,040**
**61,569**
58,691|Totals
£
**663,055**
**18,271**
**681,326**
**249,560**
**22,517**
**272,077**
**409,249**
413,495|
|---|---|---|---|
Included in cost or valuation of land and buildings is freehold land of £92,500 (2019 - £92,500) which is not depreciated.
## **13. STOCKS**
|Stocks
**14.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other debtors
Income tax recoverable
Accrued income|**2020**
**£**
**10,880**
**2020**
**£**
**1,315**
**38,239**
**8,003**
**47,557**|2019
£
4,372
2019
£
900
46,247
7,485
54,632|
|---|---|---|
continued...
Page 20
**HARVEST CITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020**
**----- Start of picture text -----**
15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2020 2019
£ £
Social security and other taxes 7,208 13,077
Other creditors 4,325 14,628
Accruals and deferred income 4,818 8,113
16,351 35,818
16. MOVEMENT IN FUNDS
Net
At movement At
1.10.19 in funds 30.9.20
£ £ £
Unrestricted funds
General fund 1,356,576 27,864 1,384,440
Restricted funds
Manna Ministries fund 1,550 (120) 1,430
TOTAL FUNDS 1,358,126 27,744 1,385,870
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 543,915 (516,051) 27,864
Restricted funds
Manna Ministries fund 3,860 (3,980) (120)
TOTAL FUNDS 547,775 (520,031) 27,744
**----- End of picture text -----**
continued...
Page 21
**HARVEST CITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **16. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|At
1.10.18
£
**Unrestricted funds**
General fund
1,243,359
**Restricted funds**
Manna Ministries fund
1,280
**TOTAL FUNDS**
1,244,639
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
646,238
**Restricted funds**
Manna Ministries fund
4,350
**TOTAL FUNDS**
650,588||Net
movement
in funds
£
113,217
270
113,487
Resources
expended
£
(533,021)
(4,080)
(537,101)|At
30.9.19
£
1,356,576
1,550
1,358,126
Movement
in funds
£
113,217
270
113,487|
|---|---|---|---|
The Manna Ministries fund consists of donations received specifically for the purpose of making subsequent grants to Manna International Inc. for the sponsorship of orphaned children in India.
continued...
Page 22
**HARVEST CITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **17. EMPLOYEE BENEFIT OBLIGATIONS**
The charity contributes to a personal pension scheme in respect of certain employees. The total costs payable in the year were £34,547 (2019: £27,446).
## **18. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 30 September 2020.
Page 23
**HARVEST CITY CHURCH**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Tithes and offerings
Gift aid - income tax recoverable
**Investment income**
Rents received
Bank interest receivable
**Charitable activities**
Teaching and bookshop
Hospitality and refreshments
Children and youth work
Donations - Manna Ministries
Events
Pot Spoon Café
Miscellaneous
**Total incoming resources**
**EXPENDITURE**
**Charitable activities**
Trustees' salaries
Trustees' pensions paid
Salaries
Social security
Pensions
Ministry expenses
Teaching and bookshop
Hospitality and refreshments
Children and youth work
Carried forward|2020
£
**428,072**
**81,541**
**509,613**
**1,352**
**8,288**
**9,640**
**2,104**
**214**
**-**
**3,860**
**9,036**
**4,574**
**8,734**
**28,522**
**547,775**
**148,650**
**22,604**
**136,400**
**24,464**
**11,943**
**7,993**
**3,608**
**4,643**
**1,032**
**361,337**|2019
£
509,596
104,178
613,774
2,350
610
2,960
2,303
382
1,662
4,350
15,211
5,565
4,381
33,854
650,588
128,753
18,259
115,508
21,295
9,187
4,050
12,563
6,406
1,679
317,700|
|---|---|---|
This page does not form part of the statutory financial statements
Page 24
**HARVEST CITY CHURCH**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2020**
|**Charitable activities**
Brought forward
Events
Pot Spoon Café
Grants to institutions
Grants to individuals
**Other**
Hire of plant and machinery
**Support costs**
**Management**
Rent of premises
Insurance
Light, heat and water
Travel and transport
Postage, stationery and telephone
Publicity
Sundries
Repairs and maintenance
Depreciation of freehold property
Depreciation of furniture and equipment
**Governance costs**
Professional expenses
Accountancy and legal fees
Independent examiners remuneration
Bank interest
Total resources expended
**Net income**|2020
£
**361,337**
**20,335**
**3,703**
**28,918**
**7,567**
**421,860**
**865**
**18,199**
**2,693**
**5,761**
**9,376**
**7,089**
**5,044**
**11,992**
**5,340**
**7,124**
**15,392**
**88,010**
**4,253**
**625**
**2,500**
**1,918**
**9,296**
**520,031**
**27,744**|2019
£
317,700
24,791
3,840
37,286
9,277
392,894
1,942
29,635
2,658
6,616
36,630
9,733
8,978
13,237
4,542
7,124
14,673
133,826
4,219
610
2,425
1,185
8,439
537,101
113,487|
|---|---|---|
This page does not form part of the statutory financial statements
Page 25