RESTORE COMMUNITY CHURCH - Charity Commission

RESTORE COMMUNITY CHURCH

(a company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

Registered Charity Number: 1086604

Company number; 04198958 IEnglsnd and Wales)


FINANCIAL STATEMENTS 31 DECEMBER 2019

CONTENTS Page

Reference and admlalstratlve detafls

Trustees' report

Independent examiner's report

Statement of flnaaclal activities IO

Balance sheet

Statement of cash flows 13

Notes to the flnancial statements 14


REFERENCE AND ADMINISTRATIVE DETAILSFOR THE YEAR ENDING 31 DECEMBER 2019

Trustees aad Directors: Pauline DoyleCas sic Hamman

Clive Makombera

Helen Radmore

Gerhard Swart

Bernard van Jaarsveld

Anne Wakelield

(Appotnted 12 May 2020)(Resigned 18 April 2020)

(Resigned 19 February 2019)

Key management personnel: Senior leader

Director of Operations

lan KingReinart van Zyl

Registered office: Trinity Church Debden

Mannock Drive

Loughton

IG10 2JD

Company number:

Charity number:

Country of incorporation:

04198958

1086604

England dt Wales

Bankers: HSBC191 High Road

Loughton

EssexIG 10 4LN

Independent examlaer: Jonathan Caton FCCA FCACaton Fry dt CoChartered Accountants

Essex House

7 The Sluubberies

George LaneSouth Woodford

London

E18 IBD


TRUSTEES' REPORTFOR THE YEAR ENDING 31 DECEMBER 2019

Th« tmstees are pleased to present their annual directors' report together with the financial statements of the charity for

the year ending 31 December 2019 which are also prepared to meet the requirements for a directors' report and accounts

for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles

of Association, and 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 IJK and Republic ofIreland (FRS 102) (effective I January 2015).

About Restore Community Church

Restore Community Church is a diverse, lively and growing church whose purpose is to reflect the life and love of Jesus

to the conununity around us, through our conrpassion, care and service. Our vision is to be a church that reach out to the

community, and we do this by helping people to know God, find freedom, discover purpose and make a difference with

their livm. On a wider level, the church is a member of Churches Together in Loughton and a part of New Tlung

Europe. The Church is a member of the Evangelical Alliance.

The church was established in 1984 and is constituted as a company limited by guarantee, and registered with the

Charity Commission under charity number 1086604 with the principal aims of the advancement of the Christian faith,

the relief of poverty and the relief of sickness.

The Church comprises three congregations: running in four locations: our largest congregation, Restore Loughton, lms

two gatherings each Sunday at Davenant Foundation School. In addition, we partner with Loughton Methodist Church

nieeting every Sunday at Trinity Church in Mannock Drive. Restore Enfield metus every Sunday at Winchmore School.

During 2019 we have taken stewardship of a small church building through a lease from the Church Growth Trust in

Woodford Bridge. Canfield Chapel was established in 1939 and with the interior in need of some care, a team ofvolunteers carried out renovation work during the first half of the year. We reached out to the local community first to

understand their needs and the initial priority is to run activities supporting the community with a focus to gradually

mcrease the frequency of Sunday gatherings, with a rich lustoiy as a friendly, welcoming church with activities for all

ages throughout the week and Sunday morning services with worship for all ages. At 31 December 2019 tbe combined

congregations comprised;- Around 550 adults and children, the majority of whom live within a few miles of the different congregations;- A staff of 13 full and part time employees plus a bank of 300 plus committed volunteers;- Weekly Sunday worship servicm plus a midweek programme catering for all ages from toddlers to senior citizens

(meeting in local community schools, churches and homes);- Established pastoral work aniong church members and community contacts;- Community based work serving different people groups living in the local community, niore detail of which is given

below,

In July 2015 the trustees established a sister organisation, Restore Conimunity, through which its community projects

would be run in order to streamline the administration and to help build resilience into the funding of this important

activity. Restore Community was granted charitable status in February 2016 and became operational in Apnl 2016since when Restore Community Church has provided support by way of a grant to help fund its activities. Much of the

volunteer effort is provided by members of the Restore congregations.

The church's stated mission is to see the communities in which it is located transformed by the love of God and the

church's activities are aimed at serving the local population, providmg an environment ivhere newcomers can feel

welcome and can be refreshed and have their lives changed. Those members are encouraged to serve the community

outside the immediate church body, and much of the church's outreach depends on the hundreds of people ivho

volunteer their tinie and energy. The trustees consider Restore Community Church meets the Charity Comniission

requirements to demonstrate public beneflt in each of its purposes set out above.


TRUSTEES' REPORT (continued)

FOR THE YEAR ENDING 31 DECEMBER 2019

Achlevcments and performance

Total income for the year has decreased from 6540, 186 to f491,928 (9% decrease), ivhich is primarily due to a small

number of large donors relocating elsewhere. Similarly, expenditure for the year was marginally lower &om f531,786

to 8514,914. About 70% of expenditure is attributable to Church, Pastoral 68 Chikiren as well as Youth 61 Children.

The community was supported through Designated Funds and other external giving which represented about 16% ofexpenditure. The remainder of expenditure is represented by supporting and governance costs. This has led to a net

decrease of f22,986 in funds with funds carried forward as at 31 December 2019 at a level of 635,666, which can be

split further into f15,753 general funds and f19,913 restricted funds.

We have referred to the guidance contained in the Charity Commission's general guidance on public benefit ivhen

reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned

activities will contribute to the aims and objectives they have set.

As well as being a vibrant Christian church Restore is a major provider of services to the local community, a core

belief being that the church needs to demonstrate God's love to his creation in practical ways as well as through

preaching the Gospel. Many of the community services are run in partnership ivith statutory and other agencies.

Corunnruiry acr(v(ries

Restore has a passion to see its local conununity restored and in 2012 the Restore Conmiunity Centre opened in a shop

unity on Debden Broadway. Due to the relatively high cost of operating in this setting it was decided to surrender the

lease in 2017. Since then the community is reached through two coiumunity 'hubs' rather than a single location. The

hubs are run from the Oakwood Hill Community Centre on the Oakwood Hill Estate and also from Trinity Church in

Mannock Drive. As well as two part-time managcm, these rxmtres are staffed by a range of volunteers —many who are

themselves former users, with training given which helps build confidence and capability. A number of those

volunteers have gone on to secure paid employment on the back of the experience they have gained. Over 100 people

access the services offered weekly in both locations combined.

Volunteers,

staff

an community together provide a social setting that supports and encourages, helps to break isolation

and enables people to tackle some of the challenges that they face. Its objective is to provide the most appmpriate

response, whether by giving direct support through the employed staff, signposting them to more skilled help, or by

providing space for outside counsellors (including mental health and alcohol counsellors) to see local clients.

Increasingly tliese activities are seen as a 'frontline' resource for immediate help when tackling issues of housing,

eviction, and benefits. People are given help to face difficult times with digtuty, and at the same time are encouragwl to

make responsible choices. It has seen an increase in the number of lmmeless people that have accessed its services and

works with other organisations to reduce the incidence of rough sleeping in the area.

The Restore Community Centre forms part of the financial reporting of Restore Community, the sister charity.

Nlghr ro Shhre

Restore Enfield hosts Night to Slune, an unforgettable prom night experience for people with special needs ages 14 and

over. We joined over 655 locations worldwide in hosting a Night to Shine, with Restore being the only CK location.

We welcomed over 60 guests and carcrs on the evening and had a team of over 70 volunteers from the community,

Night to Shine also forms part of the financial reporting of Restore Comniunity.




Youth IYork

The church runs a number of different youth events including meetings run in partnership with other local churches,

designed to respond to the needs of different age groups and different levels of Christian experience and of no

experience too. The Church has now run five successful leadership courses for young people (with around lo young

people per course, meeting monthly over an eight month period including two weekends away). In aggregate, the youth

team reach around 80 young people each week.

Restore Kids is our Sunday expression for children to encounter Jesus, to grow in relationship with God and with each

other. On Sunday mornings families womhip all together, ager which children meet in age-specific groups for 45

minutes. For babies and toddlers under three we provide space so that parents are able to look suer them wlule

listening to thc service via audio link.

Noah's Ark is a group for parents and carers with their pre-school children that meet weekly every Tuesday and

Thursday morning during term time on Oakwood Hill and on Mondays and Wednesdays at Trinity Church in Mannock

Drive. It is a source of conuuunity, fun and support for families which has grown in popularity since it was initially

launched in 2009. In total some 150 families are reached each week A number of the volunteers who mn the project

Noah's Ark forms part of the tinancial reporting of Restore Community, the sister charity.

Pastoral Care

Restore Conununity Church sees prayer as a vital part of spiritual growth. As well as praying for people on a Sunday,

there are people who are willing to pray with anyone requesting prayer during the week. This can take place at a

community location or at home. There is also a care team that provides practical care and support for those who are

sick, or needing practical support.

Restore has a team who support those who are pregnant by praying for them throughout their pregnancy. This team

also aims to provide meals for families during the tirst two weeks after the birth.

Living Free is a course we offer to people who want to understand their unique God-given original design and discover

their purpose. As part of the course that runs over the course of a weekend, Restore offer assistance and prayer to

overcome the areas of their lives that are holding them back from their full potential.

Restore breaks into smaller groups during the week to facilitate the buildmg of relationslups, pastoral care and to help

each person journey with Jesus. These groups meet two to four times each month and niay share a meal, and include

activities such as exploring the Bible, praying together and worshiping together. The groups range from 6 to 26 people.

Some have a special focus, such as the art therapy group for people with anxiety and depression. Other groups aim to

facilitate conununity by bringing together those who live close to one another.

Cloitd Nine

A weekly outreach meeting is held in Honey Tree Court, providing care and support to the elderly residents of a

sheltered housing unit. As well as providing a focus for the residents to meet together the volunteers assist with

shopping and other practical help. Cloud Nine meets the spiritual and practical needs of around 12 residents each




Restore Network

Restore has a strong commitment to spreading the message of the love of Jesus throughout the world and seeing the

Kingdom of God built so that all people lmve the opportunity to develop a living relationship with Jesus. It is the desire

of Restore to see our community transformed but also help transform communities around the world as well. Restore

has direct links with individuals and groups in five countries across three continents. Many people from Restore have

been on mission trips abroad, ofien to support the places with which Restore has links and Restore also helps to

financially support specific individuals based in and committed to local conimunities around the world.

Restore currently supports their missionaries in Guatemala, South Africa, the Philippines and Zambia. More recently

Restore has sought to build bridges that link our activities in the local connnunity with related activities in other

countries. One good example of this is a Restore Community project called 'Beyond Ourselves' partnering with three

schools in the Copperbelt Province in Zambia, providing an education and a meal each school day to over 900

children. Beyond Ourselves celebrated its tenth anniversmy in 2019 and further details on its achievements over this

period can be found in the report tk accounts for Restore Community.

Furthermore, Restore supports church projects in pakistan aixl Ukraine where particular members have established

strong links, and since 2017 have been in partnership with Tenerife Family Church who engage with their community

on the largest of the seven main Canary Islands in many different ways, one of which is The Living Room - a space for

workers m the nightlife of Las Americas.

Financial review of the year snd reserves policy

In the year to 31 December 2019 total income, the majority of which comes from gifis from the congregation, totalled

f491,928 (2018 — 8540, 186). Expenditure on all activities totalled f514,914 (2018 — 8531,786 The general fund

balance ives f15,753 at the end of the year.

A grant of circa f48,000 (2018 - f53,000) was made to Restore Community in the current year to assist with the

running costs of the community projects therein.

A portion of the general gifis received by the church (f32,828 in 2019) are set aside as a tithe and are accounted for as

designated funds for use outside the Church, either in the local conimunity or to support Christian organisations and

mission elsewhere in the world. This giving includes supporting projects and workers based in Zambia, the

philippines, Brazil and South Africa, as well as projects in the UK. Details of how this money was spent are given in

the notes accompanying the accounts.

As noted above, as well as titling the church's income, the trustees have established a policy on reserves that seeks to

hold general funds equivalent to one months operational expenditure. Tire trustees are of the opinion that a strong

reserve is vital if the church is to expand its operations as that allows Restore to absorb greater risk. At 31 December

2019 the general reserve required to be held under tlus policy was f43,000 however the actual reserve of f15,753 was

f27,247 less than required for these purposes. To recover this shortfall and replenish reserves to the required level, the

Trustees have set a budget for 2020 that should produce a small surplus. The remaining balance in designated funds at

the end of 2019 have been absorbed into general funds with the support to niissionaries being scaled down in 2020 in

order to strengthen general reserves. Surplus budgets will continue to be the aim for subsequent years until the

required level of reserves are reached.


TRUSTEES' REPORT (continued)FOR THE YEAR ENDING 31 DECEMBER 2019

Internal control and risk mauagement

Although thc day-to-day activities of the church are delegated to the paid statf the trustees take an active part in the

administrative functions and exercise an independent check on financial and operational matters. In particular the

trustees sign off on all staff appointments and are involved ui the detailed oversight of the church's financial activitim.

The trustees, together with the senior leaders of the church, have conducted a risk review of all Restore's activities and

have taken steps to ensure appropriate controls are in place to manage identified risks. Risk management is an

ongoing concern and the trustee meeting agendas are constructed to ensure the issue is kept under frequent review.

Key risks include health and safety, child protection, dependency on certain key individuals and maintaining doctrinal

Governance

Oversight of the Church's activities is provided by a board of trustees whose responsibility is to ensure the Church is

operating in accordance with its charitable purpose. Day-to-day leadership of the Church is delegated to lan King, the

Senior Leader.

The trustees meet nine times a year for regular business meetings and at other times as required, including holding

joint meetings with the church leadership team to help keep the spiritual and legal leadership of the Church aligned.

Trustees are drawn from members of the Church and their re-appointment is a matter for the members in General

Meeting.

The Trustees are provided with a Trustee Induction Pack with information on the organisation, the Trustee's role in

relation to governance and their responsibilities under Charity Law.

Trustees

The following have served as trustees since I January 2019:

Pauline DoyleCassie Hamman (chair)

Clivc Makombera (appointed 12 May 2020)Helen Radmore (resigned 18 April 2020)Gerhard Swart (treasurer)

Bernard van Jaarsveld

Anne Wsketleld (resigned 19 February 2019)

None of the trustees received any remuneration or expenses from the church during the year. Following serving close

to mne years as a Trustee, Mrs Radmore decided to step down in April 2020. We thank her for her contribuuon and

wish her well for the future - she will be ndssed.

Remuneration policy

The remuneration policy for staff members is set by the trustees by reference to levels of salary paid by comparable

organisations for similar roles. The senior leader and associate pastors salary is benchmarked against the stipend,

including an assessment of the value of housing, provided to a Church of England minister. Staff are also given the

opportunity to participate in a defined contribution pension arrangement with the Church matching employee

contributions up to a maximuni of 5% of salary.


TRUSTEES' REPORT (continued)FOR THE YEAR ENDING 31 DECEMBER 2019

Plans for future years and response to COVID-19

Our mission and objectives for the future remain the same as outlined earlier, i.e. to reflect the life and love of Jesus to

the community around us, through our compassion, care and service. Wc want to remain a church that restores

community, helping people to know God, find freedom, discover purpose and make a difference with their lives

despite thc challenges posed to us through the COVID-19 crisis.

We aim to help people in our Church become mature Christians, through a clear understanding of the Bible and how it

applies to their life.

Although this is a post year-end event, the Trustees appreciate the impact and associated uncertainties posed by the

COVID-19 pandemic is of such a nature unlike anything the charity has faced in recent times. At the time of writing

no material financial risk has materialised, in fact income levels remained steady and we were able to make savings on

expenditure leadmg to an increase in general funds to a level of about f35,000 by the end of April 2020. As the

charity's income predominately rely on the generosity of donors, we do recognise there is a risk income levels could

deteriorate to such an extent that operationally it becomes diflicult to run the charity effectively. The tinancial position

is monitored frequently to ascertain whether further actions should be implemented.

Another consequence of the pandemic is that just about all of the activities described earlier in this report has had to be

suspended until further notice in response to the DK government's appmach in dealing with the crisis. Staff are now

working remotely and Sunday services are streamed live from Restore Canfield with strict social distancing and

hygiene measures in place for the handful for staff and technical volunteers involved in line with government advice

provided to the Evangelical Alliance.

The Trustees would like to take this opportunity to thank afl staff for their tireless commitment, donors for their

generosity and many volunteers for their unconditional support over the year. Through the grace of God we can once

again celebrate all that was achieved during the year.

This Annual Report is signed by the Chair on behalf of the Board.

Cassie HammanChair of Trustees




Statement of trustees' responsibilities

The charity trustees (who are also directors of Restore Conimunity Church for the purposes of company law) are

responsible for preparing a trustees' annual report and financial statements in accordance with applicable law and

United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view

of the state of affairs of the charitable company and of the incoming resources and application of resources, including

the income and expenditure, of the charitable company for that period. In preparing the financial statements, the

trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles of the Charities SORP;

- make judgements and estimates that are reasonable and prudent;

. State whether the applicable accounting standards have been followed, subject to any material departures disclosed

and explained in the financial accounts, '

.prepare the financial statements on the going concern basis unless it is inappropriate to presume that activities ofthe charity will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time

the financial position of the charity and to enable them to ensure that they comply with the Companies Act 2006. 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.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on

the charitable company's website. Legislation in the United Kingdom governing the preparation and dissengnation offinancial statements may differ from legislation in other jurisdictions.

Small compauy exemptions

This report has been prepared and delivered in accordance with the provisions in Part 15 of Conipanies Act 2006

applicable to companies subject to the smell companies' regime,

This report was approved by the board on 13 July 2020 and signed on their behalf

Cassie Hamman (Chair of Trustees) Gerhard Swart (Treasurer)

INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS OF RESTORECOMMUNITY CHURCH


I report on the accounts of the company for the year ended 31 December 2019 which are set out on pages 10 to .

Respective responsibgltles of trustees and examiner

The trustees (who are also the directom of the company for the purposes of company law) are responsible for the

preparation of the accounts. The trustees consider that an audit is not required for this year under section 145 of the

Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having sattstied myself that the charity is not subject to an audit under company law and is ehgible for independent

examination, it is my responsibility to:

examine the accounts under section 145 of the 2011 Act;

to follow the procedures laid down in the general Directions given by the Charity Commission under section

145(5') of the 2011 Act; and

to state whether particular matters have come to my attention.

Basis of independent examiner's statement

My examinatton was carried out tn accordance with the general Directions given by the Charity Commission. An

examination includes a review of the accounting records kept by the charity and a comparison of the accounts

presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and

seeking explanations from you as tmstees concerning any such matters. The procedures undertaken do not provide

all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts

present a "true and fair view" and the report is limited to those matters set out in the statement below.

independent examiner's statement

Since the Charity's gross tncome exceeded f250,000 your examiner must be a member of a body listed in section 145

of the 2011 Act. I can confimt that I am qualified to undertake the examination because I am a member of the

ICAEW which is one of the listed bodies.

In connection with my examination, no matter has come to my attention.

I which gives me reasonable cause to believe that, in any material respect, the requirement:

to keep accounting records in accordance with section 386 of the Companies Act 2006; and

to prepare accounts which accord with the accounting records, comply with the accounting requirements ofsection 396 of the Companies Act 2006 and with the methods and principles of the Statement ofRecommended Practice; Accounting and Reporting by Charities.

have not been met; or

2 to which, in my opinion, attention should be dravm in order to enable a proper understandmg of the accounts to

be reached.

Jonathan Caton FCCA ACA

Caton Fry dt CoEssex House

7 The Sluubberies

George LaneSouth Woodford

London

E18 IBD

Pg July 2020


STATEMENT OF FINANCIAL ACTIVITIES (including the Income and Expenditure

Account)FOR THE YEAR ENDING 31 DECEMBER 2019

income from:

Donations

Investments

Other

Note Unrestrictedfuads

3 465,4184 14

16,312

Restrictedfunds

9,532

Designated

fuads

652

Total2019

475,60214

16,312

Total

20186

533,4877

6, 692

Total income 481,744 9,532 652 491828 540, 186

Expenditure oa:Chantable activities

Total expenditure

5 454, 185 30,350 30,379 514,914 531,786

454, 185 30,350 30,379 514,914 551, 786

Net income I (expenditure)

Transfers between funds

Net movement In fuads

27,559

(31,802)

(20,818) (29,727) (22,986) 8,400

6,849 24,953

(4,243) (13,969) (4,774) (22,986) 8, 400

Reconcigatloa of funds:

Total funds brought forward

Total funds carried forward

19,996

15,753

33,882

19,913

4,774 58,652

35,666

50,252

The statement of financial adivities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

10


STATEMENT OF FINANCIAL ACTIVITIES (including the Income and Expenditure

Account)FOR THE YEAR ENDING 31 DECEMBER 2018

income fronr.

Donations

Investments

Other

Total income

Note Unrestrtctutfunds

t

3 489, 1944 7

4, 186

493,387

Restricted

funds

f

44,293

2,506

46,799

Designatedfunds

Total

20/8f

533,4877

6, 692

540, /86

Expenditure oo:

Charitable activities 5 465,517 26,701 39,568 53/, 786

Total expenditure 465,517 26,701 39,568 53/, 786

Net income / (expenditure)

Transfers behvcen funds

Net movement ln funds

27,870

(40,017)

20,098 (39,56S) 8, 400

3,062 36,955

(12,147) 23, 160 (2,613) 8, 400

Reconciliation of funds:

Total funds brought forward

Total funds carried forward

32, 143 10,722

19,996 33,882

7,387 50,252

4,774 58, 652

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

RESTORE COMMUNITY CHURCHCOMPANY REGISTRATION NUMBER: 04198958

BALANCESHEETFOR THE YEAR ENDING 31 DECEMBER 2019

Notes 2019f

2018f

Fixtxl assetsTangible fixed assets 13 7,884 2, 762

Current assetsDebtors

Cash at bank and in hand

14 17,02219,283

/4, 38264, 763

LiabilitiesCreditors'. Amounts falling due within one year 15 (8,523) (23,255)

Net current assets

Net assets

27,782

35,666

55, 890

58, 652

FundsUnrestricted reserve

Designated funds

Restricted funds

Total funds

16 15,753

19,913

35,666

/9, 9964, 774

33,882

58, 652

The notes on pages 14 to 23 form part of these financial statements.

In approving these financial statements as trustees, and directors, of the company we hereby confirm the following:

For the year ending 31 December 2019 the conipany was entitled to exemption from audit under section 477 of the

Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its accounts for the year in question in accordance

with section 476;

The trustees I directors acknowledge their responsibilities for complying with the requirements of the Act with respect

to accounting records and the preparation of accounts.

The financial statements have been prepared in accordance with the provisions in Part 15 of Companies Act 2006

applicable to companies subject to the small companies' regime.

The accounts were approved by the board of trustees on 13 July 2020

Cassic Hamman (Chair of Tmstees) Gerhard Swart (Treasurer)

12


STATEMENT OF CASH FLOWSFOR THE YEAR ENDING 31 DECEMBER 2019

Notes 2019f

2018f

Net cash provided by (usedi u) operatittg acrivitles 18 (36,472) 2l, 490

Cash flotvs from investing activities

Interest income

Purchase of tangil&le tixed assets

Net cush provided by (used ial investing nctivities

14

(9,022)

(9,008)

(7,304)

(7,297)

Cash used In tlnancing activities

Cltange ln caslt and caslr equi vnleut itr the reportlug period (45,480) 20, l93

Cash and cash equivalents at the beginning of the year 64,763 44, 570

Cash and cash equivalents at the end of the year 19,283 64, 763

l3


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDING 31 DECEMBER 2019

I Accounting Policies

Restore Community Church is a charitable company limited by guarantee and is registered with the Charity

Commission (1086604) and Registrar of Conipanies (04198958) in England and Wales. The address of the

registered office is given on page I and the principal activities are detailed in the Trustees Report. The principal

accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the

financial statements arc as follows:

Basis of preparation

The financial statements have been prepared in accordance with 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) (etfective I January 2015) .(Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland

(FRS 102) and the Companies Act 2006.

Restore Community Church meets the detinition of a public benefit entity under FRS 102. Assets and liabilities

are initially recognised at historical cost or transaction value unless othawise stated in the relevant accounting

policy note(s).

The presentation currency is fGBP and rounded to the nearest pound.

Preparation of the accounts on a going concern basis

Restore Community Church reportixl a cash outflow of f45,480 for the year. A break even budget has been set

for the 2020 financial year (which is expected to yield a small surplus) and the trustees believe that the budget

along with the reserves secure the immediate future of the Church for the next 12 to 18 months and that on this

basis the chartty is a going concern. As highlighted in the Trustees report as a consequence of the savings

obtained in operations from the COVID-19 response as well as not seeing any drop off in donations reserves are

building at a faster pace than initially budgeted further securing the future of the charity.

Inconiing resources

All donations arc accounted for at the time of receipt. Gilt Aid recoverable on taxed giving is accmed for at the

year end.

Intermt receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the

charity; tlus is normally upon notification of interest paid or payable by the Bank.

Donated servtcwt

ln accordance with the Charities SORP (FRS 102), the general volunteer time is not recognised. Refer to the

trustees' annual report for nmre information about their contribution

Funds

Unrestricted Funds are funds expendable at the discretion of the trustees in the furtherance of the objects of the

charity. These are funds received for the day to day operation of the church and its community based activities.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the

Charity's work.

Designated funds are funds earmarked by the tmstees from within unrestricted funds. The church sets aside 10%

of its general fund income by way of tithe. The general tithe funds are used to support external organisations,

missionaries and other projects outside the church.

14


NOTES TO THE FINANCIAL STATEMENTS


I Accounting Policies (condoned)

Resources expended

Expenditure is recognised once there is a legal or constructive obligation to niake a payment to a third party, it is

probable that settlement will be required and the amount of the obligation can be measured reliably.

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable

activities. Support costs include tinance, payroll and governance costs which support the Church's activities.

Operating leases

The charity classities the lease of the Community Centre as well as that of the offices in Trinity as operating

leases; tire title to the premises will remain with the lessor. Rental charges are charged on a straight line basis over

the term of the lease.

Tangible tixed assets

Fixed assets costing in excess of f500 are capitalised and are shown at historical cost.

Depreciation is provided at the following rates in order to write off each asset over its estimated useful life by the

straight line method.

Motor vehicles over 4 years

Equipment over 3 years

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at thc amount

prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three

months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Crrxlitots and provisions arc recognisixl where thc charity has a present obhgation resulting from a past event that

will probably result in the transfer of funds to a third party and the amount due to settle the obligation csn be

measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount atter

allowing for any trade discounts due.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Basic financial instruments are initially recognised at transaction value and subsequently measured at their

settlement value.

15



I Accounting Poficles (continued)

Pension costs

The church contributes to a stakeholder pension scheme for its staff, matching employee contributions up to a

maximum of 5% of salary.

Taxation

As a register«d charity, Restore Community Church is exempt from tax on income and gains falling within Part 11

of the Corporation Tax Act 2010 to the extent that these are applied to its charitable objects. No tax charges have

arisen in the charity.

Critical accounting estimates and judgentents l

There are no accounting estimates or assumptions which have a significant risk of causing a material adjustment

to the carrying anrounts of assets and liabilities within the next tinnncial year.

2 Legal status of the Charity

The Charity is a company limited by guarantee incorporated in England & Wales aud has no share capital. In the

event of the charity being wound up, the liability in respect of the guarant«e is limited to f5 per member of the

charity.

3 Income from donations

UnrestrictedFunds

RestrictedFunds

DesignatedFunds

f

Total2019

f

Total2018

General giving

Gifi atd giving

36,604 4,021

42E,E14 5,511652 41,277

434,32586, 583

446, 904

465,418 9,532 652 475,602 533,487

4 Investmcat income

All of the contpany's investment income of f14 (2018: f7) arises from money held in interest bearing deposit

accounts.

5 Analysis of expenditure on charitable activdtles

Church, Pastoral & Mission

Youth & Children

Community

Extental giving

Governance costs (see note 7)Support costs (see note 7)

UnrestrictedFunds

f354, 136

7,45421,997

1,62068,978

RestrictedFunds

f

13,09317,257

DeslgaatedFunds

4,30626,073

Total2019

f354, 136

7,45439,39643,330

1,62068,978

454, 185 30,350 30,379 514,914

16



5 Analysis of expenditure on charitable activities (continued)

UnrestrictedFunds

f

RestrictedFunds

DesignatedFunds

Total2018

Church, pastoral k Mission

Youth 61 Children

Community

External givmg

Governance costs (see note 7)Support costs (see note 7)

358, 142

7,75143,257

126

1,19455,047

465,517

15,329114

11,258

26,701

39,568

39,568

373,4717,865

54,51539,694

1,19455,047

531,786

6 Aaalysis of grants

Restore Conununity

Grants toinstitutions

f48,448

Totalf

48,448

Amounts were granted to Restore Community to support the support the projects in Restore Community. The

grants have been expensed within conununity giving of the general funds and expenditure incurred in relevant

restricted funds.

7 Analysis of governance and support costs

The Church initially identifies the costs of its support functions. It then identifies those costs which relate to the

governance function.

General officeSalaries, wages and relat«d costs

Independent examiner

Generalsupport

f57, 13510,223

Governancefunction

1,620

Totalf.

57, 13510,223

1,620

8 Net income I (expenditure) for the year

This is stated afier charging:

67,358 1,620 68,978

Depreciation

Operating lease payments

Exammcr fees

2019f

3,9001,278

1,620

2018f.

3, 126

8620

17



9 Analysis of staff costs, trustee remuneration and expenses, and

the key management personnel

2019f

2018f

Salaries and wages

Social security costsPension costs

233,36216,8936,652

24839576, )08

9,620

256,907 267, 723

No employees had employee benefits in excess of f60.000 (2018: nil). Pension costs are allocated to activities in

proportion to the related staffing costs incurred and are wholly charged to unrestricted reserves.

The charity trustees were not paid or received any other benefits from employment with the Church in the year

(2018: fnil) neither were they reimbursed expenses during the year (2018: fnil).

The key management personnel of the charity, comprise the Trustees, the Senior Leader and Director ofOperations. Thc total employee benefits of the key management personnel of the Church were f77,390 (2018-f74,245).

10 Staff numbers

The average monthly head count was 13 staff (2018: 14 staff).

11 Related party transactions

Restore Community is a sister charity of Restore Community Church, sharing the same Trustees. During the

financial year, f48,448 (2018 - f53,257) was granted to Restore Community for the projects run within that

charity. At 31 Decnnber 2019 an amount of f4,210 (2018 - f 14,497 (owed to)) was owed by Restore Conununity.

12 Corporation Taxation

The charity is exempt from tax on income and gains falling ivithin section 505 of the Taxes Act 1988 or section

252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

18



13 Fixed assets

CostEquipment

f

Motorvehicle

f,

Totalf

At 1 January 2019Additions

Disposals

At 31 Decenrber 2019

38,6309,022

(22,877)

24,775

5,875

(5,875)

44, 505

9,022(28,752)

24,775

Accumulated depreciationAt 1 January 2019Charge for the yearDisposals

At 31 December 2019

35,8683,900

(22,877)

16,891

5,875 41,7433,900

(5,875) (28,752)

16,891

Net book value

At 31 December 2019 7,884 7,884

At 31 December 2018

14 Debtors 2019f.

2018

Gift Aid Tax recoverable

Prepaymcnts

Other debtors

6,560

10,462

17,022

7,2476, 469

666

14,382

15 Creditors: Amounts falling due within one year

Taxation and social security

Other crrxlitors

Accruals

2019f

4,3062,6171,600

2018f

4,70117,415

1, /39

8, 523 23,255

19


NOTES TO THE FINANCIAL STATEMENTS


16 Aaalysls of charitable funds

Analysis of movements in unrestricted funds

Balance brought fomvard at I JanuaryIncoming resources

Resources expendml

Transfer to designated funds

Transfer from designated funds

Transfer from restricted funds

Balance carried forward at 31 December 2019

Total2019

f19,996

481,744(454, 185)

(32,828)7,875

(6,849)

Total2018

8

32, 143493,387

(465,517)(36,955)

(3,062)

Analysis of raovement In designated funds

Tlthe-Enfleld

8

Tithe-Loughton

fTotal

8

Balauce brought forsvard at 1 January 2018

Incoming resource

Transfer from general funds

Total available for distribution

4,346

6,520

10,866

3,041

30,435

33,476

7,387

36,955

44,342

Missions overseas

Regular support

Local needs

Other

(5,935) (6,596) (12,531)(18,600) (18,600)

(333) (5 104) (5 437)(3,000) (3,000)

(6,268) (33,300) (39,568)


Incoming resource

Transfer from general funds

4,598

140

4,825

176 4,774

512 652

28,003 32,828

Total available for distribution 4,965 28,515 33,480

Missions overseas

Regular support

Local needs

Transfer to general funds

(3,300) (3,300)(22,773) (22,773)

(180) (4,126) (4,306)

(6,083) (1,792) (7,875)

(9,563) (28,691) (38,254)


20



16 Analysis of charitable funds (continued)

Name of deslgaated fund Description, nature and purpose of the fund

Tithe - Enfield and Tithe- A portion of thc general gifis received by Enfield and Loughton are set aside

Loughton as a tithe and are accounted for as designated funds for use outside the

Church. In the current year the decision was made to absorb the external

giving in the General Funds of the charity and as such all remaining reserves

at year end was transfened to the General Reserve.

Analysis of movenient In restricted fundsAt

01 Jsn 2019f

Income Expendituref 6

AtTraasfer 31 Dec 2019

Loughton - Generosity

Churches together in Loughton

Grenfell TowerChurch Plant

Loughton —Other

Enfield - The Shack

Foodbank

Trinity

Restore Network

2881,3252,4315,000

2955,339(178)

12,8656,517

3,388613

3,298

2,233

(500)(1,550)(2,431)

(1,043)(1,471)(2,529)(6,000)

(14,826)

212225

(2,610)135

8,887

5,778

3,868591

6,8652,811

33,882 6,849 19,913



Grenfell Tower

Church Plant

Loughton - Other

Enfield - The Shack

Foodbank

These arc funds given by congregation members to assist individual in

financial hardship and to support other local community organisations

seeking to do the same.

Monies are used for collaboration projects with other churches in Loughton

to do special events to bring the good neivs of Jesus Christ to the whole ofLoughton.

Monies received and used to support families after the Grenfell Tower

disaster that happened in 2017, the amount remaining in the fund was

transferred over to a Grenfell Charity that supports the families in 2019.

Monies set aside to assist with the next church plant initiative of Restore

Community Church. f2,610 was spent on a new equipment for the Canfield

Chapel.

Monies set aside to be used for short projects run in Loughton

Monies given and utilised for The Shack, a property in Entield which is used

for conununity events in Enfield.

Monies received by the Church for the Foodbank charity.

21



16 Analysts of charitable funds (continued)

Analysts of movement lu restricted fuads (continued)

Name of restricted fund

Trinity

Restore Network

Descrlptloo, nature and purpose of the fund

Trinity is a Restore Congregation vnth gatherings in Trinity church, Debden

this remaining monies represent the legacy ninnies in the congregation that

will be spent on Trinity church.

Monies are provided to the fund from General Reserve as well as from the

churches that joins the Restore Network to assist churches that has given

indication that they would like to join the Restore Network as well as pay for

costs incurred in slaying in touch with network churches.

Analysis of movement in restricted funds (prior year)


Housing fund

Philippines

Zambia


Theology within Reach

Grcnfell Toiver

Church Plant

Enfield —Conmiunity

Making a Difference

Loughton —Other

Finding Freedom

Enfield —The Shack

FoodbankNoah's Ark

Trinity

Restore Network

At01 Jan 2018

f1,3332,054

(1,834)1,478

245

2,4315,000

(20)35

10,722

Incomef

955

2,4901,8342,427

672

1,3501,645

10,000133

23,9931,300

46,799

Expendituref

(2,000)

(2,665)

(2,580)(2,188)

(946)(1,055)(1,640)(4,661)

(311)(114)

(6, 124)

(2,417)

(26,701)

Transfer

(2,054)175

1,271

20911

(5)

114(5,004)

7,634

3,062

At31 Dec 2018

f288

1,325

2,4315,000

295

5,339(178)

12,865

6,517

33,882

22



17 Analysis of net assets between funds

Fuod balances at 31 December

Tangible fixed assets

Current assets

Current liabilities

Unrestrictedfunds

f

7,884

16,392(8,523)

15,753

Restrictedfunds

f

19,913

19,913

Designatedfunds

Total2019

f

7,884

36,305(8,523)

35,666

Fund balances at 31 December

Tangible fixed assets

Current assets

Current liabilities

Unrestrictedfunds

2,76240,489

(23,255)

Restrictedfunds

33,882

Designatedfunds

f

4,774

Total2018

2,762

79,145(23,255)

19,996 33,882 4,774 58,652

18 Reconciliation of net movement ln funds to net cash tloivs from operating activities

Itet movement in funds

Add back depreciation chargeDeduct interest income shown in investing activities

(Increase) in debtors

Increase I (decrease) in creditors

Net cash used in operating activities

Total2019

f(22,986)

3,900(14)

(2,640)(14,732)

o.

Total2018

8,4003,126

(7)(4,481)14,452

23



19 Other financia commitments

As at 31 December 2019 the charity has annual commitments under non-canceflable leases for leased piemises of:

2019 2018

Not later than one year

Later than one year and not later than five years

132 1325,000 660

20 Ultimate control

The charity is controlled by the trustees.

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RESTORE COMMUNITY CHURCH - Charity Commission

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Transcript of RESTORE COMMUNITY CHURCH - Charity Commission