## City Church Trust Liverpool
Report and Accounts Year ended 31 October 2022
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **CITY CHURCH TRUST LIVERPOOL**
## **LEGAL AND ADMINISTRATIVE DETAILS**
# **FOR THE YEAR ENDED 31 OCTOBER 2022**
ADDRESS FOR CORRESPONDENCE 39 Onslow Road Liverpool L6 3BA GOVERNING DOCUMENT Declaration of Trust dated May 1989 CHARITY REGISTRATION NUMBER 701792 TRUSTEES RESPONSIBLE FOR Prakash Chougule (resigned December 2022) MANAGING THE CHARITY Jonathan Ball (appointed April 2023) Ann Harding Susan Harding (appointed April 2023) Susan Latham John Fretwell (resigned April 2023) BANKERS Santander UK plc CCLA COIF Charities Deposit Fund Skipton Building Society 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
## **CITY CHURCH TRUST LIVERPOOL**
## **REPORT OF THE TRUSTEES**
## **FOR THE YEAR ENDED OCTOBER 2022**
The trustees have pleasure in submitting the Report and Accounts for the year ended 31st October 2022.
## **Objects of the charity** .
The charity was formed as a trust on 30th May 1989, is a registered charity and is governed by its Declaration of Trust of the same date. The charity's principal objectives, as set out in its governing document, are; the advancement of the Christian faith and relief of poverty, sickness and disabled persons and the advancement of education in Merseyside and elsewhere in the UK and other parts of the world.
The work of the trust has continued, and we have seen new people join the church throughout the year.
In planning the activities, the Trustees have applied the guidance on public benefit issued by the charity commission.
## **Ministers report**
The year started out as before with David Latham as senior minister as part of a leadership team along with his wife Susan, James Earnshaw as associate minister with his wife Catherine. In September, James took over as senior minister and David reduced to part time and took a sabbatical break. Both are still salaried by the trust. We were also able to take on a further member of staff in September to coordinate the small groups, children's work and help clarify the vision for the future. During this year also, in December, City Church welcomed a local church, Kensington Elim, to worship together with them.
We welcome all who attend City Church and teach any who wish to know about the love of Christ. We meet on a Sunday and during the week in people’s homes, to study the bible and maintain friendships. We have started monthly hubs which create community around various areas of interest. We have in place a pastoral team and also seek to reach out to the community. We had picnics in the park and bonfire night events and film nights.
In May we supported the Franklin Graham Org national outreach in Liverpool arena. In July we held a baptism service for new believers.
## **Evangelism**
We staged our 5th Kennycarols with the usual brass band along with games, creative items and evangelistic message and a fairtrade stall. It was well supported by the community. A Carol singing outreach was held in a local supermarket by invitation.
Neighbourhood food parcels were given out and community visiting. We have started a board game cafe and are starting to provide free community meals during the cost of living crisis.
2
Kensington is becoming a large student hub and we seek to support those newly away from home.
Our Friendship group is expanding to involve others across Liverpool.
## **Childrens church.**
Our children's work is growing, and we now have a part time paid worker to oversee and plan the activities as well as support the families of our children. Our team is continuing to build up and we have added more volunteers.
## **Youth Ministry** .
Our youth ministry continues to develop. We encourage the youth to be involved in all areas of the church including music ministry and media. We have joined with live streamed events and plan to again take the youth to a bible week away.
## **Property**
The work on the church building in Jubilee Drive has continued through the year as we seek to improve and maintain facilities. The downstairs area has been upgraded to improve facilities and be a more welcoming space for the community. This year we must look at maintenance issues mainly to do with the age of the building rather than improvements.
## **Governance**
Responsibility for setting policy and for making operating decisions rests with the trustees who meet regularly to monitor the activities of the charity. New trustees are recruited and appointed by the existing trustees with approval of the leadership. Policies are reviewed regularly and kept up to date.
## **Risk Management** .
The trustees have reviewed the major strategic and operational risks that the charity faces. These are kept under review at Trustees meetings, which occur at least three times per year. Where possible we seek to insure major risks in respect of the buildings and employees. In addition, we have a safeguarding policy with ongoing training for our safeguarding coordinator, also ensuring that all those who work with children and vulnerable adults on our behalf are cleared with the Disclosure and Barring Service (DBS).
All our other policies are under regular review by the trustees. These include GDPR and volunteer management.
## **FINANCIAL REVIEW**
With the easing of Covid 19 restrictions the normal pattern of taking an offering at the Sunday morning service has resumed. Total annual income was £70,500 which includes money received from the HMRC gift Aid payment for the 2021-2022 tax year. The annual expenditure was £91,900. The financial handling of salary payments and year end accounts continues to be conducted by Stewardship Services.
3
## **RESERVES POLICY**
At the year end, the charity's total funds from all sources amounted to £151,200. The trustees have determined that the charity should aim to hold unrestricted money of no less than £47,400 (which equates to about 6 months unrestricted expenditure) so that the charity could continue to operate should income and / or expenditure vary adversely.
£1,890 is held in restricted funds and £73,500 in the designated fund which means the charity is holding funds of £101,900 over and above the 6-month reserve and the previously mentioned funds. The charity is holding these excess funds for the following reasons:
- offsetting the long-term pattern of annual expenditure exceeding income and the resultant annual deficits
- the changing staffing profile
- the possibility of reduced income due to no Sunday offering being received should further lockdowns due to Covid-19 be advised or mandated
- there is a general deterioration in the fabric of the old building that the church occupies. The roof is old; there are very serious issues with damp and water ingress and partial single glazing. Plans are being discussed to undertake essential maintenance, remedial work, significant refurbishment, upgrading of the building and increasing access to the building (there is currently no level access to the building; a significant number of steps and a stairway have to be negotiated in order to gain entry to any part of the building and this is proving problematic).
The intention is that at all future trustees' meetings these excess unrestricted funds and the designated fund will regularly be reviewed and the decisions minuted. The church has sufficient resources to continue operating for at least one year from the date of signing the accounts and can pay liabilities as and when they are due.
## **INVESTMENT POLICY**
The reserve funds are held with the Skipton Building Society and CCLA Charities Deposit Fund. If funds are received which require longer-term and more complex investment to be made, the Trustees are aware that, under the Trustees Act 2000, they will need to seek independent financial advice.
4
## **Responsibilities of Trustees**
Charity law requires us to prepare financial statements for each accounting year which record the receipts and payments of the charity for the year. 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 that 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 regularities.
## **Approval**
This report was approved by the trustees and signed on their behalf by:
Susan Latham
Date: 12 June 2023
5
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF**
## **CITY CHURCH TRUST LIVERPOOL**
I report to the trustees on my examination of the accounts of City Church Trust, Liverpool ('the charity') for the year ended 31 October 2022 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: 16 June 2023
Page 6
## **CITY CHURCH TRUST LIVERPOOL**
## **RECEIPTS AND PAYMENTS ACCOUNT**
## **FOR THE YEAR ENDED 31 OCTOBER 2022**
|||||||Unrestricted|Funds|||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|||||||General|Designated||Restricted|Total|Total|
|||||||Funds||Funds|Funds|2022|2021|
||||||Notes|£||£|£|£|£|
|**_Income receipts_**||||||||||||
|Donations||||||55,201||-|1,063|56,264|60,797|
|Gift aid receipts||||||12,732||-|-|12,732|18,784|
|Government grants||||||-||-|-|-|16,908|
|Rental income||||||300||-|-|300|-|
|Income from charitable activities||||||330||-|-|330|318|
|Interest||||||778||-|-|778|44|
|Other||||||130||-|-|130|167|
|**_Total receipts_**||||||69,470||-|1,063|70,533|97,017|
|**_Payments_**||||||||||||
|Payments
in
relation
to
activities undertaken directly|||charitable||2|86,680||-|-|86,680|87,885|
|Grants
paid
in
relation
to
activities undertaken by others|||charitable||3|4,015||-|1,251|5,266|6,560|
|**_Total payments_**||||||90,695||-|1,251|91,946|94,445|
|Net
of
receipts
/
transfers|(payments)|||before||(21,225)||-|(188)|(21,412)|2,572|
|Transfers between funds|||||5|3,000||(3,000)|-|-|-|
|**Net movement in funds**||||||(18,225)||(3,000)|(188)|(21,412)|2,572|
|Cash funds as at last|year|end||||94,064|76,467||2,078|172,609|170,037|
|**Cash funds at this year end**|||||A|75,839|73,467||1,890|151,196|172,609|
The notes on pages 9 - 10 form part of these accounts.
Page 7
## **CITY CHURCH TRUST LIVERPOOL**
## **STATEMENT OF ASSETS AND LIABILITIES**
## **FOR THE YEAR ENDED 31 OCTOBER 2022**
|**A Cash funds**
Held at bank
Unbanked offerings
Petty cash
**B**
**Other monetary assets**
Gift aid due to charity
Other debtors
**C**
**Liabilities**
**Falling due within one year:**
Pension due
Fee for Independent Examination
_Due in over one year_|General
Designated
funds
funds
£
£
75,751
73,467
-
-
89
-
**75,839**
**73,467**
7,450
-
375
-
**7,825**
**-**
425
-
960
-
**1,385**
**-**
Unrestricted Funds|Restricted
funds
£
1,890
-
-
**1,890**
-
-
**-**
-
-
**-**|Total
2022
£
151,108
-
89
**151,196**
7,450
375
**7,825**
425
960
**1,385**|Total
2021
£|
|---|---|---|---|---|
|||||172,024
421
163|
|||||**172,609**|
|||||7,279
-|
|||||**7,279**|
|||||416
930|
|||||**1,346**|
||||||
City Church Liverpool participates in a group defined benefit pension scheme, known as Elim Ministers Pension Fund, where the main employer is Elim Foursquare Gospel Alliance. This church pays a contribution that reflects the benefits earned in the current period and provides to pay additional contributions to the scheme relating to past service (the last actuarial valuation at 31 December 2018 indicated that the obligation to provide defined benefits gives rise to a funding deficit).
The charity has been advised that there is a liability for one staff member as at 31Dec2020: £105,163 (with no further update yet available).
|**D**
**Assets retained for charity's own use**
Freehold building
Contents and equipment|Value
2022
£
1,539,600
48,100
**1,587,700**|Value
2021
£|
|---|---|---|
|||1,481,800
46,100|
|||**1,527,900**|
The freehold building insurance value referred to above represents the insurers reinstatement value for Elim Church, Jubilee Drive.
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
by date Susan Latham 12 June 2023
The notes on pages 9 - 10 form part of these accounts.
Page 8
## **CITY CHURCH TRUST LIVERPOOL**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 OCTOBER 2022**
## **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**
Staff costs (salaries, pension, training, expenses)
Note 4
Building operating costs
Equipment, maintenance and repairs
Visiting speakers and ministry costs
Hospitality and catering
Youth, Children's, and other ministries
Administration, insurance and support
Accounts preparation and Independent examination
Other
**3**
**Grants and gifts paid to others**
Organisations:
Overseas mission
YWAM
Other home mission
Organisations < £1,000||Unrestrict|Designated
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
ed Funds|Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
676
-
575
-
1,251|Total
2022
£
56,173
9,167
6,736
2,349
985
4,102
4,945
948
1,274
86,680
1,276
3,225
675
90
5,266|Total
2021
£|
|---|---|---|---|---|---|---|
|||General
funds
£
56,173
9,167
6,736
2,349
985
4,102
4,945
948
1,274
86,680
600
3,225
100
90
4,015|||||
|||||||61,833
7,877
7,478
1,008
1,233
2,255
4,818
936
448|
|||||||87,885|
|||||||600
4,525
1,435
-|
|||||||6,560|
## **4 Transactions with related parties**
David Latham, spouse of trustee Susan Latham, was employed as a Minister and was paid £23,627 [2021: £34,858]. James Earnshaw, the son-in-law of trustee Susan Latham, is employed as Minister in Training and was paid £23,910 [2021: £18,314]. Susan had no involvement in any discussions in relation to employment matters regarding either employee.
No other payments were made to trustees or persons related to them, except for reimbursement of expenses paid out on behalf of the charity.
Page 9
## **CITY CHURCH TRUST LIVERPOOL**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 OCTOBER 2022**
|**5**
**Movement of funds**
General funds
Designated funds
Legacy
Restricted funds
Shepherds Purse fund
Community Outreach Project
Ukraine appeal
Total funds|Opening
balance
£
94,064
76,467
170,530
66
2,012
-
2,078
172,609|Receipts
£
69,470
-
69,470
387
-
676
1,063
70,533|Payments
£
(90,695)
-
(90,695)
(275)
(300)
(676)
(1,251)
(91,946)|Transfers
£
3,000
(3,000)
-
-
-
-
-
-|Closing
balance
£|
|---|---|---|---|---|---|
||||||75,839
73,467|
||||||149,306|
||||||178
1,712
-|
||||||1,890|
|||||||
||||||151,196|
The legacy received in the year has been put into a designated fund while the trustees consider the use of these funds. The Shepherds Purse fund is to help members of the community in need. The Community Outreach Project relates to a grant to be used for the benefit and support of the poor and disadvantaged in our local community. An additional offering was taken on Sunday 6/3/2022 in response to the ongoing crisis in Ukraine. The money was sent to the Samaritan’s Purse charity which is an international relief and development organisation working through local churches and has a presence on the ground in Ukraine.
Page 10