London City Presbyterian Church

Transcription

1 Scottish Charity No SC London City Presbyterian Church Trustees Report and Financial Statements Year Ended 31 December 2016

2 Contents of the Financial Statements for the year ended 31 December 2016 Page Report of the Trustees 2-5 Report of the Independent Auditor 6-7 Statement of Financial Activities 8 Balance Sheet 9 Statement of Cash Flows 10 Notes to the Financial Statements Page 1

3 Report of the Trustees The Trustees are pleased to present their report together with the financial statements of the church for the year ended 31 December The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity s constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Statement of Recommended Practice (Charities SORP (FRS 102)). Objectives and Activities London City Presbyterian Church is a congregation of the Free Church of Scotland. It is a Presbyterian church adhering in its worship and doctrine to the position of the Church of Scotland at the Reformation. The Free Church of Scotland has an explanatory document which explains the origins of the Church and which gives the historical background to the Church coming into being in 1843 and lists documents in which is embodied the constitution of the Church. The document is available on request from the Free Church of Scotland, 15 North Bank St., The Mound, Edinburgh, EH1 2LS. The Free Church of Scotland currently has over 100 congregations in Scotland, and sister Churches founded by mission work in India, Peru and South Africa. The Church also has a seminary in Edinburgh for the training of ministers and other Christian workers and sustains an extensive missionary programme relative to the size of the church. The Church has close and active relations with many other Reformed churches of Jesus Christ throughout the world and stands firmly in the tradition which accepts the Bible in its entirety as the Word of God and, therefore, derives its forms of teaching, worship, ministry and government from it. The principal activity of the Church is the conduct of public worship and associated matters in the context of local congregations. The main emphasis of our worship is the preaching of the gospel - the good news of a free and sovereign salvation through Jesus Christ alone. London City Presbyterian Church has the following aims: 1. to maintain the public worship of God and to foster Christian fellowship; 2. to evangelise the local area by proclaiming the gospel of Jesus Christ, to exercise pastoral care and practical compassion for those in need; 3. to uphold and further the interests of the Free Church of Scotland; and 4. to participate in the worldwide promotion of Christian fellowship and the advancement of the Christian faith. The congregation is authorised by the Church to have a minister paid from central funds of the Church. The congregation owns two manses, and the congregation rents a building from the Church of England for the conduct of its services in central London. The congregation makes grants from its gift income to individuals and organisations whose aims are compatible with the congregation s objectives. Achievements and Performance During the year, the church met regularly for worship and carried out various activities in pursuit of its aims. The congregation continued its commitment to support the Free Church of Scotland both spiritually and financially. Page 2

4 The congregation was registered with the Office of the Scottish Charity Regulator on 16 th March 2016 and the financial results reflect the period since that date. On 24 th May 2016 the Cobham congregation of the Free Church of Scotland was united with that of London City, and the receipt of its assets is disclosed as an exceptional item in the financial statements. Significant highlights, events and developments of note in the year include the following: - In relation to congregational activities: Advancing a programme of teaching events both for young people and the wider church membership. Continuing to develop a full programme of Sunday School classes. In relation to congregational funding: A growth in donations from church members through regular giving. The union with the Cobham congregation has enabled the pooling of resources with a view to strengthening the opportunities for ministry in the combined congregation, including opening up the possibility of appointing an assistant minister. Plans for the future The congregation continues to seek ministry opportunities to extend the pastoral and evangelistic work of the congregation. The congregation is currently seeking a suitable candidate to appoint as a pastoral assistant or assistant minister in order to supplement the existing leadership team and help the congregation meet the significant spiritual needs of people in London. Financial review Principal sources of funding The congregation principally receives its funding by way of regular support and special offerings from its members. Results for the year The financial statements for the year are set out in pages 6 to 12. The Statement of Financial Activities on page 6 reflects net incoming resources of 7,320, after excluding the effects of the exceptional incoming resources arising from predecessor charities, which were transferred to the charity in this period. Reserves It is the policy of the congregation to maintain free reserves, i.e. unrestricted funds not invested in fixed assets, at a level which equates to approximately six months unrestricted expenditure. This allows sufficient funds to enable the ongoing work of the church to be maintained. The General Fund (page 7) at 31 December 2016 amounted to 78,770 and was above the required level. Total reserves, including the net book value of fixed assets and balances on restricted funds amounted to 1,554,614. Statement on Risk The trustees assess the major risks to which the congregation is exposed on an ongoing basis and have established procedures to mitigate those that are identified as a result of these reviews. The principal financial risk facing the congregation is that the congregation commits to support causes or enter into financial commitments beyond its financial resources. The Deacons Court reviews management accounts, budgets and financial projections before entering into any significant ongoing financial commitments in order to counteract this risk. Page 3

5 Structure, Governance and Management London City Presbyterian Church is established by its constitution and is registered as a charity with the Office of the Scottish Charity Regulator (OSCR). The government of the Free Church of Scotland is Presbyterian and the congregation is within the Presbytery of Edinburgh & Perth. Its day to day running is undertaken by the Elders (the Kirk Session) and the Deacons (the Deacons Court). It is accepted practice for the Minister and Elders to also be in membership of the Deacons Court whose specific function relates to the material and financial business of the congregation and fulfil the role of trustees under charity law, whereas Elders are charged with the spiritual oversight of the congregation. Appointment of Charity Trustees The Kirk Session exercises its discretion in determining the most appropriate method of electing new trustees (both Elders and Deacons), who serve for no fixed term. Any election process must involve the communicant membership of the congregation. Prior to their appointment, new trustees would have served the congregation for some time in various roles and would be familiar with its values, aims and objectives as well as its day-to-day operations. As part of their induction programme, new trustees are required to understand their statutory responsibilities as well as their responsibility as Elder or Deacon. Statement of Trustees responsibilities The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. The trustees are required to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charity, and of its incoming resources and the application of resources of the charity for that period. In preparing these financial statements, the trustees should follow best practice and: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments and estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charity will continue its operations. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the applicable law and the Laws and Regulations of the Church. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Trustees The members of the Deacons Court (who are the Key Management Personnel of the charity for the purpose of note 5 to the accounts), who served during the year were as follows:- Minister Elders Deacons Page 4

6 Reference and Administrative Details Registered Name: Other names by which it is known: Charity Registration Number: London City Presbyterian Church LCPC, Free Church of Scotland London SC Address St Botolph s-without-aldersgate Aldersgate Street London EC1A 4EU Website Bankers Bank of Scotland (London Chief Office) P O Box 1000 BX2 1LB Auditor On behalf of the Trustees Trustee 21 September 2017 Page 5

7 Independent Auditor s Report to the Trustees for the period ended 31 December 2016 We have audited the financial statements of London City Presbyterian Church for the period ended 31 December 2016 which comprise the Statement of Financial Activities, the Balance Sheet and related notes. The financial framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. This report is made solely to the charity s trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act Our audit work has been undertaken so that we might state to the charity s trustees those matters we are required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity s trustees as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully on the Statement of Trustees Responsibilities on page 4 the trustees are responsible for the preparation of financial statements which give a true and fair view. We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; the overall presentation of the financial statements; and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. In addition, we read all the financial and non-financial information in the Report of the Trustees to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the charity s affairs as at 31 December 2016 and of the charity s incoming resources and application of resources for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations Page 6

8 Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charity Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion: the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or proper accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. HUGHES & CO Statutory Auditor 29 September 2017 Hughes & Co is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 Page 7

9 Statement of Financial Activities from 16 March 2016 (on registration with OSCR) to 31 December 2016 Notes Unrestricted Funds Restricted Funds Undesignated Designated Income and endowments from: 2016 Total Donations and legacies 67,616-2,513 70,129 Payroll giving 9, ,949 Tax refunds 14, ,003 Charitable activities Interest on bank deposit Exceptional items: 91,870-3,326 95,196 Transferred in on registration with OSCR 75, ,000 38, ,447 Transferred in on union with Cobham 12, , ,847 Presbyterian Church Total 180,108 1,420,212 42,170 1,642,490 Expenditure on: Cost of Raising Funds Charitable Activities - Free Church Central Funds 7 58, ,155 - Presbytery expenses Other grants ,026 4,026 - Pulpit supply and speaker expenses Minister s expenses 2 1, ,596 - Church overheads 3 13, ,098 - Manse overheads 4 6, ,866 - Interest on loan from Free Church Depreciation Governance costs 2, ,515 Total 83,850-4,026 87,876 Net income/(expenditure) 96,258 1,420,212 38,144 1,554,614 Transfer between funds 8 (17,488) 17, Reconciliation of funds: Total funds carried forward 78,770 1,437,700 38,144 1,554,614 Page 8

10 Balance sheet as at 31 December 2016 Notes 2016 Fixed assets Tangible assets Manse at 700,000 Manse at 800,000 Total fixed assets 8 1,500,000 Current assets Debtors 4,470 Cash at bank and in hand 124,503 Total current assets 128,973 Liabilities Creditors - Amounts falling due within one year 20,359 Net current assets 108,614 Total assets less current liabilities 1,608,614 Creditors - Amounts falling due after more than one year Loan from Free Church of Scotland 54,000 Total net assets or liabilities 1,554,614 The funds of the charity: Unrestricted funds - General Funds 78,770 - Manse Equity Fund 1,437,700 1,516,470 Restricted income funds 9 - Elsie MacAulay Fund 35,079 - Benevolent Fund Outreach Fund 1,527 - Mission Collections 1,244 38,144 Total charity funds 1,554,614 The accounts were approved by the Deacons Court on 21st September Chairman Page 9

11 Cash flow statement from 16 March 2016 to 31 December 2016 Cash flows from operating activities: 2016 Net cash provided by (used in) operating activities 141,876 Cash flows from investing activities: Interest from bank deposits 115 Net cash provided by (used in) investing activities 115 Cash flows from financing activities: Repayments of borrowing 17,488 Net cash provided by (used in) financing activities 17,488 Change in cash and cash equivalents in the reporting period 124,503 Cash and cash equivalents at the beginning of the reporting period - Change in cash and cash equivalents in the reporting period 124,503 Cash and cash equivalents at the end of the reporting period 124,503 Reconciliation of net income/(expenditure) to net cash flow from operating activities Net income for the reporting period (as per the statement of financial activities) ,554,614 Adjustments for: Interest on bank deposit (115) Non-cash assets transferred in from LCPC on registration with OSCR (700,155) Non-cash assets transferred in on union with Cobham congregation (719,070) (Increase)/decrease in debtors 3,165 Increase/(decrease) in creditors 9,767 Net cash provided by operating activities 141,876 Page 10

12 Notes to the Financial Statements from 16 March 2016 to 31 December Accounting Policies Basis of preparation The financial statements have been prepared under the historical cost convention, and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)). The church meets the definition of a public benefit entity under FRS 102. The trustees consider that there are no material uncertainties about the congregation s ability to continue as a going concern. Income All voluntary income and bank interest is accounted for when received, but includes recoverable taxes. Expenditure Expenditure is accrued as soon as a liability is considered probable. Tangible fixed assets Freehold land is not depreciated. The manses owned by the congregation are considered to maintain their residual value such that any depreciation of the buildings is considered immaterial. As such no depreciation is charged, but the manses are subject to annual review to ensure that they have not suffered any impairment in value. Classification of Funds For the purpose of the financial statements, funds are defined as follows: Unrestricted funds comprise grants and other income received for the objects of the church without further specified purpose and are available as general funds. Designated funds represent unrestricted funds which have been earmarked by the trustees for particular purposes. Restricted funds comprise income which has been received for the objects of the church and specified for a restricted purpose within these objects by the donor. Page 11

13 Notes to the Financial Statements from 16 March 2016 to 31 December MINISTER S EXPENSES Fares and travel 795 Hospitality 740 Stationery 61 1, CHURCH OVERHEADS Rent and cleaning of church premises 11,096 Public liability insurance 349 Office costs 394 Books and magazines net surplus (144) Advertising and website 368 Kitchen expenses 422 Sunday school 329 Bible study materials 61 Sundry , MANSE OVERHEADS Woodford Council tax 1,840 Light, Heat 627 Water 151 Telephone 300 Insurance 158 Repairs and Sundries 1,411 4,487 Cobham Council Tax 1,956 Light, Heat, Water, Alarm 165 Insurance 257 2,378 6, TRANSACTIONS WITH KEY MANAGEMENT PERSONEL No members of the Deacons Court received any remuneration in the year, nor were any expenses reimbursed to any member of the Deacons Court with the exception of (see note 2). Page 12

14 Notes to the Financial Statements for 16 March 2016 to 31 December VOLUNTEERS As a church, we encourage everyone to use their God-given gifts in service both within the church and elsewhere. In all of our activities, we rely on volunteers giving freely of their time and talents, without which we would not be able to serve as we do. 7. FREE CHURCH CENTRAL FUNDS Mar-Dec 16 Full Yr 2016 Ministry Levy 26,930 Administration Levy 14,350 Projects Levy 25,794 Total unrestricted income per page 8 91,870 Percentage sent to Free Church centrally 63% 58,155 67, TANGIBLE FIXED ASSETS The Manse at Woodford, Essex, a freehold property, is held by named trustees as nominees on behalf of the Congregation. The Manse at Cobham, Surrey, a freehold property, is held in the name of the Trustees of the Free Church of Scotland as nominees on behalf of the congregation. The manses are recorded at their Market Value as estimated by the Deacons Court. Depreciation of the properties (manses) is not considered to be material and an annual impairment review is carried out. Total ADDITIONS AT VALUATION Manse at Woodford 700,000 Manse at Cobham 800,000 1,500,000 NET BOOK VALUE As at 31 December ,500,000 A designated Manse Equity Fund is maintained, representing the value of the properties less the value of the outstanding loan due to the Free Church. The transfer to the Manse Equity Fund from the unrestricted funds represents the amount of loan repaid in the accounting period. Page 13

15 Notes to the Financial Statements for 16 March 2016 to 31 December RESTRICTED FUNDS Mission Collections Elsie MacAulay Fund Benevolent Fund Outreach Fund Total Income Transferred on registration of Congregation 1,609 34, ,590 38,844 Collections 2, ,513 Interest Tax refund Expenditure Gifts made (3,218) - (745) (63) (4,026) Balance c/fwd 1,244 35, ,527 38,144 Mission Collections Mission collections represent the special collections taken for specific mission work, including by the Sunday School and Ladies Fellowship. Elsie MacAulay Fund The Elsie MacAulay Fund was established by a bequest from a former member of the congregation. It provides grants or loans to young people in the congregation who are attending camps or training courses, are short-term missionaries, or require temporary help with accommodation. During the year, two grants were made. Benevolent Fund The Benevolent Fund is a restricted fund held for the relief of hardship among members and friends of the congregation, and others drawn to the attention of the Deacons Court. Outreach Fund The Outreach Fund constitutes a gift by an overseas supporter to be used for the outreach of the congregation at the discretion of the Deacons Court. MISSION COLLECTIONS PAYMENTS MADE 2016 Free Church Missions - Southern Mission Support Group Colegio San Andres - Women for Mission Project Sunday School Project 237 Other Missions - Dwelling Places Christian Witness for Israel 2,366 3,218 Page 14