The Trustees present their annual report and financial statements for the year ended 31 December 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Church's Memorandum and Articles of Association, the Companies Act 2006 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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The purpose of Equippers Church Essex charitable company is to advance the Christian faith and to relieve suffering of those in need.
Equippers Church is a vibrant organisation, part of Acts Churches UK movement.
Below is a list of our principle activities:
- The provision of Christian events and education including Sunday Worship
- Community impact
- Financial support
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Church should undertake.
The vision of the charity is ‘to equip people for life through faith in Jesus Christ’. This is done primarily through Christian events and education. Teaching on the Christian faith is done both through regular Sunday meetings, online services and Connect groups. These activities are open to all.
This year the church has grown significantly, particularly with young adults and young families. We have seen many people find faith in Jesus Christ for the first time and get baptised as a public declaration of their faith.
Our gatherings are very diverse with people attending from many different backgrounds and cultures.
Sunday Services
Sunday gatherings comprise of worship, prayer, Bible teaching and social time. As more young families are joining the church, our children’s ministry provision has grown rapidly. The invitational culture within the church is very strong, we see new visitors every single week.
Online Services
Our preaching from Sunday services is made available online via YouTube and Facebook. This facility attracts people from all over the world and we regularly receive feedback saying that this is helpful and encouraging. We also find that people often watch messages before coming to the church in person.
Connect Groups
Teaching the Christian faith is also done mid week through connect group. These are small groups of about 10 people that gather in peoples homes are on zoom. The groups have an interactive format where people can discuss life, share issues, support, encourage and pray for each other.
Churches Together
Equippers Church Essex is well integrated and stands in unity with other churches in Colchester. The Colchester churches together put on two events per year – the Free Family Fun Festival which creates a day out for families in the city free of charge. This event has become very popular with many thousands of people attending. The Colchester churches also join together at Pentecost for an evening service which has become very successful.
Community Impact
As part of serving the community, we provide pastoral support to the staff and guests of Beacon House the local charity supporting the homeless community.
We work closely with St James School where we meet on Sundays. We help with fundraising, school fetes and supporting families in need.
The church ‘Love In Action’ group meets regularly to discuss and plan ways where we can serve the local community in practical ways. Things we have done include gardening, house clearance, painting and decorating, food shopping and spending time with lonely people.
We have been able to buy Christmas gifts for families in Colchester who would otherwise have gone without.
This is just a snapshot of some of the things we have done as a church that make a difference to the community around us.
Financial Support
We continue to financially support four charities: Beacon House, IJM, Blue Print For All and Joseph‘s Store House.
The church financially supports two children via Compassion.
We have also been able to send money to support churches around the world as they impact their local communities.
Plans For the Future
Our mission and objectives will remain the same. We plan to continue helping people grow a personal relationship with God and see the church grow numerically and in impacting the local community.
Our strategy will continue to be meeting in person on Sundays as well as offering online services, with small groups during the week.
The Church were able to report a growth in income in 2024 which resulted in a surplus after transfers of £19,732 (2023: £17,772) on general fund operations.
It is the policy of the Church that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to at least three months operating expenditure calculated to be approximately £40,000. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Church’s current activities while consideration is given to ways in which additional funds may be raised. The unrestricted reserves held at the end of the year were below this level and the trustees will monitor this. The designated Impact funds could be used if required.
The Trustees have assessed the major risks to which the Church is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The Church is a company limited by guarantee as defined by the Companies Act 2006. The Church is governed by its Memorandum and Articles of Association.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The Trustees' report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of Equippers Church Essex (the Church) for the year ended 31 December 2024.
Having satisfied myself that the financial statements of the Church are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the Church’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Church as required by section 386 of the Companies Act 2006.
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Equippers Church Essex is a private company limited by guarantee incorporated in England and Wales. The registered office is 61 Rouse Way, Colchester, Essex, CO1 2TT.
The financial statements have been prepared in accordance with the Church's Memorandum and Articles of Association, the Companies Act 2006 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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Church is a Public Benefit Entity as defined by FRS 102.
The Church has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Church. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Church has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the Church has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Liabilities are recognised when a constructive obligation exists, the payment is probable and the obligation can be measured or estimated reliably.
Resources expended are allocated to the particular cost centre to which they relate and include irrecoverable VAT.
Fixtures, Fittings and Equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Assets costing below £750 are not capitalised.
At each reporting end date, the Church reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Church has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Church's balance sheet when the Church becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Church’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Church is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the Church’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Trustee Barry Roberts was paid a salary of £34,776 (2023: £33,120) and employer's pension contributions of £1,739 (2023: £1,656) for leadership of the Church.
He was also paid £12,600 (2023: £12,000) for accommodation and received expenses of £3,413 (2023: £1,513) for travel and mobile phone costs.
Donations to the church by Trustees, and their related parties, in the year was £12,040 (2023: £17,553).
The average monthly number of employees during the year was:
Key Management Personnel
Mr B Roberts is considered to be the Key Management Personnel for the Church and his remuneration details are as disclosed in note 10 to the Financial Statements.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The Church operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Church in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Buffer Fund
This fund includes welfare gifts and a gift from the Cinnamon Trust to fund educational lessons.
IJM Ministries
A fund to support the work of International Justice Mission.
Sabbatical Fund
This represents money put aside to fund the senior Pastor a future sabbatical.
Transfers were from the General fund to provide funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
This fund represents specific offerings for future, yet unidentified, projects and includes income deferred from earlier years.
The Church has a rolling 1 month notice period on the manse lease for the pastor.
Other related party transactions
Receipts of £220 (2023: £169 was paid) was received from P3 Consultants, a consultancy business of Trustee P Prothero.
Sarah Roberts, wife of Trustee Barry Roberts, was reimbursed £471 for mobile phone usage during the year (2023: £513).