**Charity number: 1031720** ## **The London Full Gospel Central Church** **Trustees' Report and Financial Statements** **for the year ended 31 December 2021** **The London Full Gospel Central Church** ## **Contents** ||Page| |---|---| |**Reference and administrative details of the charity, its Trustees and advisers**|1| |**Trustees' report**|2 - 6| |**Independent auditors' report on the financial statements**|7 - 10| |**Statement of financial activities**|11| |**Balance sheet**|12| |**Notes to the financial statements**|13 - 22| **The London Full Gospel Central Church** ## **Reference and Administrative Details of the Charity, its Trustees and Advisers for the year ended 31 December 2021** |**Trustees**|Uk Joo Lee| |---|---| ||Hyun Cheol Kim| ||Dong Il Ahan| |**Charity registered**
**number**
1031720
**Principal office**
37 West Barnes Lane
Raynes Park
London
England
SW20 0BL
**Independent auditors**
Kreston Reeves LLP
Chartered Accountants
2nd Floor
168 Shoreditch High Street
London
E1 6RA
**Bankers**
NatWest Bank plc
22 King's Mall
London
W6 OQD|| Page 1 ## **The London Full Gospel Central Church** ## **Trustees' Report for the year ended 31 December 2021** The Trustees present their annual report together with the audited financial statements of The London Full Gospel Central Church ('the charity') for the year ended 31 December 2021. The Trustees confirm that the Annual Report and financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity 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). ## **Objectives and activities** ## **a. Policies and objectives** The objective of the Trustees is the advancement of Christian Faith and the extension of the Kingdom of God. The Charity is dedicated to inspiring and motivating God’s people to reach their full potential in and through our Lord Jesus Christ. ## **b. Activities undertaken to achieve objectives** The Church holds regular services and outside of the formal routine, the Charity undertakes numerous activities to attract and retain worshippers. ## **c. Public Benefit** In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit. ## **Achievements and performance** ## **a. Review of activities and the continuous impact of COVID-19 pandemic** The COVID-19 pandemic has continued to impact on the Church’s activities in a variety of ways and significantly altered members’ church life and the ways members worship. The Church again closed its doors to all members on 20 December 2020 in accordance with the government guideline and re-opened its doors on 21 February 2021 as the government restrictions eased. The Church continued to carefully review and implement the plan for social distancing which resulted in worship services being held in the Church building and via Zoom and YouTube concurrently. However, other than worship services, many of the Church’s activities were either cancelled or only held remotely via Zoom and YouTube. ## New Year's Conference Due to the continuous impact of the pandemic, the New Year's Conference was cancelled. ## _Leadership Training_ This was held in conjunction with the Autumn Conference on 30 October 2021. The main objectives for 2021 are the same as those for 2020, as set out below: 1. A Happy Church through love and service 2. A Worshipping Church with all our hear 3. A Training Church for raising Jesus’ disciples 4. An Evangelising Church through the power of the Holy Spirit 5. A Transforming Church for the next generation through the Word Page 2 **The London Full Gospel Central Church** ## **Trustees' Report (continued) for the year ended 31 December 2021** ## **Achievements and performance (continued)** Charitable Gift to St. George’s Hospital and Kingston Hospital On 28 February 2021, the Church made cash donations of £30,000 each to St. George’s Hospital and Kingston Hospital (in total £60,000), to thank the hospital staff and the NHS generally for their service during the pandemic. Together with the cash donations, the Church also made a short video compiling thank you messages from members of the Church, dedicated to the hospital staff and the NHS. ## Easter Conference in Geseke, Germany The congregation usually spends 3 nights in Germany in advance of the Easter period during which all attendees fast and pray in unity for the revival of Europe but due to the COVID-19 pandemic, this conference was cancelled again, for a second year in a row. ## New Church in Sutton On 20 June 2021, the Church’s international congregation led by Rev. Abraham Jung moved out of its Raynes Park building on West Barnes Road and moved to a new church in Rosehill, Sutton, South London. This church will become the third branch church in 2022, following in the footsteps of London Full Gospel Central Church and London Full Gospel Finchley Church. ## Departmental Summer Conferences From the infant / nursery group to the youth group (including members of the English service led by Pastor Abraham Nam Jung), each department had its own summer conference spread from the beginning of July to the end of August. Some of these conferences were held in person whereas some were held remotely via Zoom or YouTube. ## Discipleship Training Programme Graduation Service A select group of the congregation participated in a 25-week intensive discipleship training programme designed to provide the participants with the opportunity to follow Jesus Christ in a more focused way as true disciples of Jesus Christ. The programme consisted of prayer and worship sessions, lectures, various homework-type assignments, debrief sessions and assessments. On 5 September 2021, the participants attended the graduation service and were awarded certificates of completion of training. ## Autumn Conference Members of the congregation attended the Autumn Conference on 29 October 2021 until 31 October 2021. The main speaker was Reverend Jae Woo Jung, who leads the “Grace Garden” Church in Seoul, South Korea. ## Donations In light of the many hardships and challenges faced by the Christian community due to the COVID-19 pandemic, the Church made donations to various Christian organisations and churches in the UK. Other notable activities included the following: - 41[st] Anniversary Special Thanksgiving Service (3 March 2021) - Easter Service (4 April 2021) - Youth Group Holy Spirit Gospel Conference (7 April 2021) - Graduation Service (7 August 2021) - Pathfinder “Gil-Chaat-Sa” (11, 17 and 22 September 2021) - Youth Group Vision Conference (23 October 2021) - Thanksgiving Special Service (21 November 2021) - Christmas Service (25 December 2021) - New Year’s Eve Service (31 December 2021) Page 3 **The London Full Gospel Central Church** **Trustees' Report (continued) for the year ended 31 December 2021** ## **Achievements and performance (continued)** ## **b. Investment policy and performance** The Charity retains funds in its bank account so that the funds are available to make the quarterly repayments to the bank in respect of the mortgage loan. ## **Financial review** ## **a. Going concern** After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Throughout the COVID-19 pandemic, the Church continued its worship services online which ensured that there has been continuity of income for the Charity. For this reason they continue which focuses on spreading the gospel to adopt the going concern basis in preparing the financial statements. ## **b. Reserves policy** The Charity currently has £3,204,158 (2020: £2,833,177) in its reserves. These funds can only be realised on disposal of the Charity's freehold property, which have a net book value of £3,047,190 (2020: £3,061,698) at the year end. Excluding the freehold property, the reserves are in surplus of £156,968 (2020: deficit of £228,521). It should be noted that even though the level of activities increased compared to 2020, it is still lower than the prepandemic level. As a result the expense level also remained stable and this has had a mitigating effect on the Charity's reserves. The Charity's reserves policy is that such funds are used towards servicing its mortgage loan repayments and from time to time, it uses the reserves in order to cover any shortfall in its operating expenses. ## **c. Principal risks and uncertainties** A principal risk to the future of the Charity would be the loss of congregation, which in turn would affect the income of the Charity. The congregation level has remained above the sufficient level for a number of years, and whilst some members of the congregation left the Church to return to Korea in 2021, this has continued to be the case in 2021 despite the effect of the COVID-19 pandemic. Therefore the Trustees do not believe that this is currently a risk to the Charity. Regular services (both online and offline) and numerous tasks undertaken by the Charity enable it to keep the required level of congregation. ## **Structure, governance and management** ## **a. Constitution** The principal object of the Charity and the Governing Group is to provide for the spiritual needs of those wishing to worship at the Church. Please refer to the Deed of Trust dated 25th October 1992 (as amended from time to time) for the Church's fundamental principles which govern the entity ## **b. Methods of appointment or election of Trustees** The management of the Charity and the Group is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust Deed dated 25 October 1992 as amended on 2 April 2011 (and as further amended from time to time). ## **c. Policies adopted for the induction and training of Trustees** All new Trustees are provided with relevant materials from the Charity Commission and also attend an instructive session on the Charity and its operations. Page 4 **The London Full Gospel Central Church** **Trustees' Report (continued) for the year ended 31 December 2021** ## **Structure, governance and management (continued)** ## **d. Pay policy for senior staff** The Church's principles are to pay our senior staff a fair salary which is realistic and proportionate to the demanding nature of each role and responsibility in line with our charitable objectives. From these principles we have defined our pay policy as follows: - provide all staff with a salary at least in line with guidance from the Campaign for a Living Wage (currently £11.05 per hour in London); - meet all national pay standards and provide all paid staff with a living wage; and - the Board of Trustees decides on the salaries of the Church's senior staff and oversees proper administration of the Church's pay policy, evaluates and decides on any changes to senior staff pay. ## **e. Financial risk management** The Trustees have assessed the major risks to which the Charity and the Group, and are satisfied that systems and procedures are currently in place to mitigate such major risks. ## **Plans for future periods** The Charity intends to continue and build its congregation. Despite the set back the Church has experienced in 2020 and 2021, it continues to expand its congregation through proactively spreading the Gospel. The Church also intends to continue to dedicate its resources and efforts on its mission on European revival of Christianity. ## **Statement of Trustees' responsibilities** The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these 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 (FRS 102); - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. 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. Page 5 ## **The London Full Gospel Central Church** ## **Trustees' Report (continued) for the year ended 31 December 2021** ## **Disclosure of information to auditors** Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: - so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and - that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information. ## **Auditors** The auditors, Kreston Reeves LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order of the members of the board of _________________________________________________ and signed on their behalf by: of the board of Trustees on **Uk Joo Lee** (Trustee) **Hyun Cheol Kim** (Trustee) Page 6 **The London Full Gospel Central Church** ## **Independent Auditors' Report to the Members of The London Full Gospel Central Church** ## **Opinion** We have audited the financial statements of The London Full Gospel Central Church (the 'charity') for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and in other respects the requirements of the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 7 **The London Full Gospel Central Church** ## **Independent Auditors' Report to the Members of The London Full Gospel Central Church (continued)** ## **Opinion on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements. - the Trustees' Report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report. ## **Responsibilities of trustees** As explained more fully in the trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page 8 **The London Full Gospel Central Church** ## **Independent Auditors' Report to the Members of The London Full Gospel Central Church (continued)** ## **Auditors' responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: ## _Capability of the audit in detecting irregularities, including fraud_ Based on our understanding of the charity and the sector as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019), and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustees' and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related posting inappropriate journal entries to increase revenue or reduce expenditure. Audit procedures performed by the engagement team included: - Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management and internal audit; and - Testing of internal controls procedures relating to expenditure potentially more susceptible to fraud and other irregularities including cash, payroll; and - Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and - Reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with relevant tax and regulatory authorities. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charity's internal control Page 9 ## **The London Full Gospel Central Church** ## **Independent Auditors' Report to the Members of The London Full Gospel Central Church (continued)** - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees - Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the charity to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. ## **Use of our report** This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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 auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. ## **Kreston Reeves LLP** Chartered Accountants Statutory Auditor London Date: 13th October 2022 Page 10 **The London Full Gospel Central Church** ## **Statement of financial activities for the year ended 31 December 2021** |**Note**
**Income from:**
Donations and legacies:
2
Tithe
Thanks
General
Gift aid
Other trading activities:
3
. Other trading activities
Investments
4
**Total income**
**Expenditure on:**
Charitable activities
5
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2021**
**£**
**-**
**-**
**-**
**-**
**20,856**
**-**
**20,856**
**20,856**
**20,856**
**-**
**-**
**-**
**-**|**Unrestricted**
**funds**
**2021**
**£**
**470,074**
**170,750**
**-**
**88,669**
**-**
**1,144**
**730,637**
**547,603**
**547,603**
**183,034**
**3,021,124**
**183,034**
**3,204,158**|**Total**
**funds**
**2021**
**£**
**470,074**
**170,750**
**-**
**88,669**
**20,856**
**1,144**
**751,493**
**568,459**
**568,459**
**183,034**
**3,021,124**
**183,034**
**3,204,158**|Total
funds
2020
£
437,606
149,609
8,740
78,225
21,721
49| |---|---|---|---|---| |||||695,950| |||||508,003| |||||508,003| |||||187,947| |||||2,833,177
187,947| |||||3,021,124| The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 13 to 22 form part of these financial statements. Page 11 ## **The London Full Gospel Central Church** ## **Balance Sheet** ## **as at 31 December 2021** |**Note**
**Fixed assets**
Tangible assets
10
**Current assets**
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
13
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
15
Unrestricted funds
15
**Total funds**|**106,041**
**282,367**
**388,408**
**(110,462)**|**2021**
**£**
**3,087,822**
**3,087,822**
**277,946**
**3,365,768**
**(161,610)**
**3,204,158**
**3,204,158**
**-**
**3,204,158**
**3,204,158**|95,775
181,211
276,986
(106,263)|2020
£
3,108,439| |---|---|---|---|---| |||||3,108,439
170,723| |||||3,279,162
(258,038)| |||||3,021,124| |||||3,021,124
-
3,021,124| |||||3,021,124| The financial statements were approved and authorised for issue by the Trustees on _________________________________________________ and signed on their behalf by: **Uk Joo Lee** **Hyun Cheol Kim** The notes on pages 13 to 22 form part of these financial statements. Page 12 **The London Full Gospel Central Church** ## **Notes to the Financial Statements for the year ended 31 December 2021** ## **1. Accounting policies** ## **1.1 Basis of preparation of financial statements** The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The London Full Gospel Central Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. ## **1.2 Income** All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. ## **1.3 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. ## **1.4 Tangible fixed assets and depreciation** Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Page 13 **The London Full Gospel Central Church** **Notes to the Financial Statements for the year ended 31 December 2021** ## **1. Accounting policies (continued)** ## **1.4 Tangible fixed assets and depreciation (continued)** Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on a reducing balance basis. Depreciation is provided on the following basis: Freehold property - 2% Reducing Balance Freehold land - Not depreciated Motor vehicles - 20% Reducing Balance Office equipment - 20% Reducing Balance ## **1.5 Debtors** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **1.6 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. ## **1.7 Liabilities and provisions** Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost. ## **1.8 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **1.9 Pensions** The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year. Page 14 **The London Full Gospel Central Church** ## **Notes to the Financial Statements for the year ended 31 December 2021** ## **1. Accounting policies (continued)** ## **1.10 Fund accounting** 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 and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. ## **2. Income from donations and legacies** ||**Unrestricted**|**Total**|Total| |---|---|---|---| ||**funds**|**funds**|funds| ||**2021**|**2021**|2020| ||**£**|**£**|£| |Donations|729,493|**729,493**|674,180| ## **3. Income from other trading activities** ## **Income from fundraising events** |Purchase of building
Mission|**Restricted**
**funds**
**2021**
**£**
970
19,886
20,856|**Total**
**funds**
**2021**
**£**
**970**
**19,886**
**20,856**|Total
funds
2020
£
5,512
16,209| |---|---|---|---| ||||21,721| ## **4. Investment income** ||**Unrestricted**|**Total**|Total| |---|---|---|---| ||**funds**|**funds**|funds| ||**2021**|**2021**|2020| ||**£**|**£**|£| |Other interest income|1,144|**1,144**|49| Page 15 **The London Full Gospel Central Church** ## **Notes to the Financial Statements for the year ended 31 December 2021** ## **5. Analysis of expenditure on charitable activities** ## **Summary by fund type** ||**Restricted**|**Unrestricted**|**Total**|Total| |---|---|---|---|---| ||**funds**|**funds**|**funds**|funds| ||**2021**|**2021**|**2021**|2020| ||**£**|**£**|**£**|£| |Church expenditure|20,856|547,603|**568,459**|508,003| ## **6. Analysis of expenditure by activities** ||**Activities**|||| |---|---|---|---|---| ||**undertaken**|**Support**|**Total**|Total| ||**directly**|**costs**|**funds**|funds| ||**2021**|**2021**|**2021**|2020| ||**£**|**£**|**£**|£| |Church expenditure|389,016|179,443|**568,459**|508,003| Page 16 **The London Full Gospel Central Church** ## **Notes to the Financial Statements for the year ended 31 December 2021** ## **6. Analysis of expenditure by activities (continued)** ## **Analysis of direct costs** |Staff costs
Services
Conferences and events
Mutlimedia equipment
Choir
Praise
Sunday school
Youth
Relief
Missionary
Charges/fees
Administration expenses
New comers
**Total 2021**
**Analysis of support costs**|**Total**
**funds**
**2021**
**£**
**241,363**
**11,904**
**2,426**
**-**
**7,086**
**674**
**16,726**
**726**
**69,978**
**35,167**
**423**
**2,078**
**465**
**389,016**|Total
funds
2020
£
227,682
9,263
1,802
9,279
3,550
361
4,386
-
4,187
57,605
1,739
3,375
329| |---|---|---| |||323,558| |||| |Depreciation
Education
Loss on fixed asset disposal
Trip expenses
Light and heat
Admin/building maintenance
Interest
Insurance
Kitchenware
Repair and maintenance
Consumables
Legal and professional|**Total**
**funds**
**2021**
**£**
**24,442**
**4,342**
**(10,061)**
**3,536**
**16,008**
**48,138**
**8,169**
**5,898**
**392**
**56,133**
**15,560**
**6,886**
**179,443**|Total
funds
2020
£
25,550
2,554
340
5,085
27,599
12,856
12,054
5,990
2,900
70,087
11,993
7,437| |---|---|---| |||184,445| Page 17 **The London Full Gospel Central Church** **Notes to the Financial Statements for the year ended 31 December 2021** ## **7. Auditors' remuneration** ||**2021**|2020| |---|---|---| ||**£**|£| |Fees payable to the charity's auditor for the audit of the charity's annual||| |accounts|**5,150**|4,950| ## **8. Staff costs** |Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
The average number of persons employed by the charity during the year was
Employees|**2021**
**£**
**217,225**
**18,018**
**6,120**
**241,363**
as follows:
**2021**
**No.**
**8**|2020
£
205,332
16,514
5,836| |---|---|---| |||| |||227,682| |||2020
No.
8| No employee received remuneration amounting to more than £60,000 in either year. ## **9. Trustees' remuneration and expenses** During the year, no Trustees received any remuneration or other benefits (2020 - £NIL). During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL). Page 18 **The London Full Gospel Central Church** ## **Notes to the Financial Statements for the year ended 31 December 2021** ## **10. Tangible fixed assets** |**Cost or valuation**
At 1 January 2021
Additions
Disposals
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
On disposals
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020
**11.**
**Debtors**
**Due within one year**
Other debtors
Prepayments and accrued income
**12.**
**Creditors: Amounts falling due within one**
Bank loans
Trade creditors
Accruals and deferred income|**Freehold**
**property**
**£**
**3,245,526**
**-**
**-**
**3,245,526**
**183,828**
**14,508**
**-**
**198,336**
**3,047,190**
3,061,698
**year**|**Motor**
**vehicles**
**£**
**34,000**
**-**
**(34,000)**
**-**
**31,664**
**-**
**(31,664)**
**-**
**-**
2,336|**Office**
**equipment**
**£**
**122,446**
**6,265**
**(999)**
**127,712**
**78,041**
**9,934**
**(895)**
**87,080**
**40,632**
44,405
**2021**
**£**
**92,840**
**13,201**
**106,041**
**2021**
**£**
**96,428**
**1,007**
**13,027**
**110,462**|**Total**
**£**
**3,401,972**
**6,265**
**(34,999)**| |---|---|---|---|---| |||||**3,373,238**| |||||**293,533**
**24,442**
**(32,559)**| |||||**285,416**| |||||**3,087,822**
3,108,439
2020
£
81,594
14,181| |||||95,775
2020
£
96,428
-
9,835| |||||106,263| Page 19 **The London Full Gospel Central Church** ## **Notes to the Financial Statements for the year ended 31 December 2021** ## **13. Creditors: Amounts falling due after more than one year** |Bank loans
**14.**
**Financial instruments**
**Financial assets**
Financial assets measured at fair value through income and expenditure|**2021**
**£**
**161,610**
**2021**
**£**
**282,367**|2020
£
258,038| |---|---|---| |||2020
£
181,211| Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand. ## **15. Statement of funds** ## **Statement of funds - current year** |**Unrestricted funds**
General Funds - all funds
**Restricted funds**
Restricted Funds - all funds
**Total of funds**|**Balance at 1**
**January**
**2021**
**£**
**3,021,124**
**-**
**3,021,124**|**Income**
**£**
**743,138**
**20,856**
**763,994**|**Expenditure**
**£**
**(560,104)**
**(20,856)**
**(580,960)**|**Balance at**
**31**
**December**
**2021**
**£**
**3,204,158**| |---|---|---|---|---| |||||**-**| |||||**3,204,158**| Page 20 **The London Full Gospel Central Church** ## **Notes to the Financial Statements for the year ended 31 December 2021** **15. Statement of funds (continued) Statement of funds - prior year** |**Unrestricted funds**
General Funds - all funds
**Restricted funds**
Purchase of new building
Missionary
**Total of funds**
**16.**
**Summary of funds**
**Summary of funds - current year**
General funds
Restricted funds
**Summary of funds - prior year**
General funds
Restricted funds|Balance at
1 January
2020
£
2,833,177
-
-
-
2,833,177
**Balance at 1**
**January**
**2021**
**£**
**3,021,124**
**-**
**3,021,124**
Balance at
1 January
2020
£
2,833,177
-
2,833,177|Income
£
674,229
5,512
16,209
21,721
695,950
**Income**
**£**
**743,138**
**20,856**
**763,994**
Income
£
674,229
21,721
695,950|Expenditure
£
(486,282)
(5,512)
(16,209)
(21,721)
(508,003)
**Expenditure**
**£**
**(560,104)**
**(20,856)**
**(580,960)**
Expenditure
£
(486,282)
(21,721)
(508,003)|Balance at
31
December
2020
£
3,021,124| |---|---|---|---|---| |||||-
-| |||||-| |||||3,021,124| |||||**Balance at**
**31**
**December**
**2021**
**£**
**3,204,158**
**-**| |||||**3,204,158**| |||||Balance at
31
December
2020
£
3,021,124
-| |||||3,021,124| Page 21 **The London Full Gospel Central Church** ## **Notes to the Financial Statements** ## **for the year ended 31 December 2021** ## **17. Analysis of net assets between funds** ## **Analysis of net assets between funds - current year** |Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|**Unrestricted**
**funds**
**2021**
**£**
3,087,822
388,408
(110,462)
(161,610)
3,204,158|**Total**
**funds**
**2021**
**£**
**3,087,822**
**388,408**
**(110,462)**
**(161,610)**| |---|---|---| |||**3,204,158**| ## **Analysis of net assets between funds - prior year** |Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**|Unrestricted
funds
2020
£
3,108,439
276,986
(106,263)
(258,038)
3,021,124|Total
funds
2020
£
3,108,439
276,986
(106,263)
(258,038)| |---|---|---| |||3,021,124| ## **18. Pension commitments** The entity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the entity in an independently administered fund. The pension cost charge represents contributions payable by the entity to the fund and amount to £6,120 (2020: £5,836). Contributions totalling £Nil (2020: £Nil) were payable to the fund at the balance sheet date and are included in creditors. ## **19. Related party transactions** No related party transactions occured during the year. ## **20. Controlling party** There is no overall controlling party as the Church is run by its members. Page 22