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2021-03-31-accounts

Charity Registration No. 1046218

RUACH CITY CHURCH

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

RUACH CITY CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Ruach City Church was created by constitution dated 14th April 1994 and amended on 24th March 1995.

Trustees are elected by the membership at the AGM. During the year, new trustees can be co-opted by the existing trustees and subsequently voted on at the AGM. Trustees throughout the year were:

Trustees

Paul Brightly-Jones Dorothea Hodge Sarah Herbert

In addition to the trustees listed above, the following are additional custodian trustees that are named as holding one or more of the properties for the charity in trust:

Custodian trustees

Paul Campayne John Francis Patrick Smith Patricia Roberts

Key Management Personnel

Bishop John Francis Co-Pastor Penny Francis Resident Elder Enid Stewart Head of Property and Facilities Andrea Johnson Interim Head of Finance Andrew Rodford Head of HR and Administration Jacqui Heslop Charity number 1046218 Registered office 122 Brixton Hill London SW2 1RS Auditor Jacob Cavenagh & Skeet 5 Robin Hood Lane Sutton Surrey SM1 2SW Bankers Lloyds Bank Plc 25 Gresham Street London EC2V 7HN

RUACH CITY CHURCH

CONTENTS

Page
Trustees report 1 - 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 22

RUACH CITY CHURCH

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees have pleasure in submitting their report together with the financial statements for the Trust for the year ended 31 March 2021.

The Legal and Administrative Information set out on page 1 forms part of this report. 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 charity's constitution , the Charities Act 2011 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 ).

Objectives and activities

The objects of the trust are to:

In furtherance of these objects, the Trustees have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to the Charity Commission's published guidance concerning the operation of the Public Benefit requirement under the Act.

In order to fulfill the objects, regular meetings are held where Ruach City Church partners and other interested people can worship, pray, receive teaching on, and participate in discussions of the faith. Benevolent grants are also made in accordance with the objects of the charity.

Background

Ruach City Church (formerly known as Ruach Ministries) began in 1992 and is one of the largest nondenominational Christian churches in Europe. The music and creative arts provide a vibrant and inspiring worship experience with empowering preaching and teaching by the senior minister, elders and visiting preachers. Ruach City Church continues to build a reputation for being community-focused and politically engaged with a global reach which has been enhanced over the years by the skillful use of social media to connect with partners across the world.

Organisational structure

Ruach City Church is a charity registered in England and Wales. It's governing document is a Constitution dated 1994, amended in 2012.

The governance of the Church resides with the Trustees and the Bishop, supported by the Eldership Team and senior operational staff. The latter are known internally as “lead staff” and attend weekly operational team meetings with the Bishop.

The Trustees must approve all decisions relating to resourcing, including setting the pay and remuneration of the charity’s key management personnel.

The appointment of Trustees entails a process of nomination by a Partner of Ruach City Church, review and assessment by the Board of Trustees, and election at the Annual General Meeting. The induction process for new trustees is overseen by the Board of Trustees, and involves a review of Ruach City Church policies and previous Board minutes, an assessment of skill set and experiences, and introductory meetings with the key members of the Eldership Team and staff.

RUACH CITY CHURCH

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The activities of the Church are organised into life-stage ministries including relationships, men, women, youth, and children, and these are open to all. Those who choose to become partners or members of Ruach City Church are encouraged to be involved in one or more of the eight ministry sections: Academy of Learning, Creative Arts, Hospitality, Outreach, Social Care, and Spiritual Mediation, Business, and Media. Within these sections are more than thirty teams each responsible for a different area of Ruach City Church’s activities. These sections and supporting departments are run by a combination of staff and volunteers.

Ruach’s commercial activities are conducted and accounted for through its wholly owned subsidiary, Order My Steps. Accounts for Order My Steps are prepared separately – it is not consolidated into Ruach’s accounts on the grounds of immateriality.

The Board of Trustees worked together to ensure that the charitable objects of, and responsibilities to, the Church have been maintained as it continues to have impact.

The responsibilities of Trustees of Ruach City Church are:

Review of the year and future developments

In the 2020/21 financial year, Ruach City Church continued as one church in the following locations: Brixton, Kilburn, Walthamstow and Birmingham Hunters Road in England, as well as Philadelphia in the USA.

As with most organisations across the world, the year was dominated by the impact of the Covid 19 pandemic. Ruach suspended Public Worship as part of the first national lockdown announced by the Government during March 2020.

From that point on, a Strategic Group comprising the Bishop, Chair of Trustees, Resident Elders and Senior Staff met on a regular basis to discuss potential re-opening, with reference to Health and Safety considerations, Insurance requirements, and Government guidance.

Locations only re-opened for worship over six months later, on a brief and limited basis in the latter part of 2020 prior to a further lockdown shortly after Christmas.

It was only after the financial year end, for Easter in April 2021 that locations reopened, on a phased basis. At the time of writing, locations remain open with gradually increasing attendances.

Services were recorded and streamed from March 2020 with ever increasing content and quality to allow worship to continue throughout the various stages of lockdown. Ruach’s followers continued to give generously.

Throughout the many months in which Government restrictions were applied to combat the Coronavirus, Ruach continued to operate an enhanced Foodbank (Koinonia) service, as well as engaging extensively with congregants, particularly the elderly and those living alone, via direct calling, visiting and social media.

Operational and financial review of the year

Ruach’s finances fared remarkably well given the closure of its locations to public worship for the great majority of the year. The streaming of services and the continued generosity of the Ruach family, as noted above, meant that the level of underlying weekly Offerings wasn’t far below the historic long term average.

RUACH CITY CHURCH

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

However, other income streams suffered more as a result of the lockdowns. Most Ruach and third party events were unable to take place, and rental income from the Kilburn Car Park and elsewhere were adversely affected.

Ruach benefited from the Government’s Job Retention Scheme, and furloughed approximately a third of staff as a result of Covid. This helped to mitigate the impact of the reduction in income.

To help with the Koinonia and other initiatives mentioned above, Ruach made multiple applications for grants, and was successful with three of these: The London Community Response Fund (£10,000), The National Lottery Coronavirus Community Support Fund (£10,000) and The Samaritan’s Purse UK (PPE equipment). These funds were received during the summer of 2020 and treated and reported as Restricted Income in this Annual Report and Accounts.

Expenditure was well below that of the previous financial year because of the closure of the locations, and other consequences of Covid. There were inevitable reductions in Travel, Property, Utilities, Overheads and other costs.

Ruach achieved an underlying Income and Expenditure Account surplus of approximately £200k in the financial year. This was ahead of the previous year and a very good result in the circumstances, especially given how many organisations struggled to survive under Covid.

Close control over spending and maintenance of Cash Balances also continued to be a high priority and the latter remained relatively high.

A key financial focus during the year and still at the time of writing continues to be the refinancing of the Lloyds Bank loan that matured previously but which has been rolled over on the same terms in the meantime. An offer that was received from an alternative lender in March 2020 was temporarily put on hold due to Covid. This has been reinstigated and very good progress made towards completion.

At the year, end, Ruach had total funds of £7.6m, of which £73,939 were restricted and £7,546,584 were unrestricted.

Full details of Ruach’s financial position are set out on pages 9 to 22.

The AWARE values (Aiming for excellence, Working together, Acting with integrity, Respecting each other, Empowering our team) continue to provide the framework for recruitment and retention of staff and volunteers, and the strapline is used as an operational reporting framework on Ruach’s property, people, processes and profitability.

Like many churches, Ruach City Church thrives on the energy and willingness of its volunteers who continued to engage with enthusiasm and commitment to the vision and work of this Church. Thanks are therefore due to all those Partners who through their volunteering make Ruach City Church work, from those with a very visual profile to all those operating efficiently behind the scenes. The Trustees also gratefully acknowledge the help of all its supporters in the diverse work of the Church. Their help has also been invaluable and was typified by the fantastic response and support they provided in the aftermath of the Grenfell Tower fire tragedy in June 2017.

Ruach City church is committed to continuing to deliver a range of accessible and community-facing activities and services that promote the well-being of all in the areas that we are based and beyond. Through outreach, learning and development, age and gender-based activities, and spiritual and social care, we want to effectively demonstrate that the church is both relevant and vital for wider society. Ruach City Church remains is also committed to recruiting new trustees who will bring broader representation and skills to the Board.

Reserves policy

The Trustees are working towards maintaining sufficient reserves to cover 3 months unrestricted expenditure and management and support costs. The outline measures being taken to achieve this objective are set out above.

RUACH CITY CHURCH

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Grant making policy

A benevolence policy has been developed to provide additional targeted support to Ruach City Church partners. This is based on good practice and experience, clearer criteria and processes which combine pastoral care with good governance. It will eventually include the collection of ring-fenced funds for benevolent purposes.

Risk management

The major activities and issues of the ministry are subject to review at Trustees' meetings. Where there are issues which have a material risk identified, all reasonable steps are taken to mitigate that risk.

As with all charities, a key risk for Ruach is generation and maintenance of sufficient Cash reserves in order to be able to meet its liabilities. To mitigate this risk: the Finance department monitors and projects Cash Flow on a daily basis; Bishop and Lead Staff review Operating and Capital Expenditure decisions, as well as income growth opportunities on a weekly basis; and each year at least one of the monthly Trustees’ meetings are dedicated to Strategy and Planning.

Safeguarding and protection of Ruach’s Freehold property assets is another key area of focus, and is overseen by a very experienced Property and Facilities Manager. During the past few years, Capital Expenditure has been targeted towards essential remedial works and security enhancements in line with requirements identified and agreed with our insurers. The in-house team has also been strengthened. The need for the further Capital Expenditure required to ensure Health and Safety compliance and good practice of Ruach’s properties post Covid is under review as things gradually return to normal.

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 and 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 the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the 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.

RUACH CITY CHURCH TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Auditors A resolution will be proposed at the Annual General Meeting that Jacob Cavenagh & Skeet be re-appointed auditors lo the charity. The Trustees report was approved by the Board of Trustees. Paul Brighlly- Trustee ones

RUACH CITY CHURCH

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF RUACH CITY CHURCH

Opinion

We have audited the financial statements of Ruach City Church (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, 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:

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 Auditor's 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 UK, including the FRC’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 auditor's 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 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.

RUACH CITY CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RUACH CITY CHURCH

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees r esponsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, 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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 auditor's 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 .

Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to employment and financial reporting legislation and we considered the extent to which noncompliance 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 Act 2011.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team. We determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, government assistance (furlough income) and management override of controls.

RUACH CITY CHURCH INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF RUACH CITY CHURCH In response to the risks identified we designed procedures which included, bul were not limited lo.. agreeing financial slalement disclosures lo unijerfying supporting documentaliDn lesling the calculation of claims made under the CoronavSrus Job Retention Scheme identifying and lesling journal entries reviewing Trustees meeting minutes evaluating the charity's internal controls There are inherent limitations in the audit procedures described above. The more ￿MOVed th81 laws and regulations are from financial Iransaclions, the less likely il is that we would become aware of non-compliance. Material misslalements that arise due lo fraud can be harder lo dglecl than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council'5 website al.. https.'Il www.frc.org.uklaudiloisresponsibililies, This description forms part of our auditor's report. other mattèrs Your allenlion is drawn to the fact that the charity has prepared financial slalements in accordance with 'Accounling and Reporting by Ch£rilies.' Slalemenl of Recommended Pra¢li¢e applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland {FRS 1021" las amended) in preference lo the Accounting and Reporting by Charities.. Slalement of Recommended Practice issued on 1 April 2005 which is referred lo in the exl8nl regulations bul has now been withdrawn. This has been done in order for the financial statements lo provide a true and falr view in accordance with Generally Accepted Accounting Practi￿ effective for reporting periods beginning on or after 1 January 2015. Use ol our rèport This report is made solely lo the company's members, 88 a body, in accordan￿ with section 391 of the Companies Act 2014. Our audit work has b&en undertaken so that we might slate lo the company's members those mallers we are required lo slate lo Ihem in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyon& other than the company and the company's members, as a body. for our audit work, for this report, or for the opinions we have formed. Stha*£ Jacob Cavenagh & Skeet 2oLI Chartered Accountants Statutory Auditor 5 Robin Hood Lane Sullon Surrey SM1 2SW Jacob Cavenagh & Skeet is eligible lor appointment as audilor of the charity by virtue of ils eligibility for appointment as auditor ol a Company under section 1212 of the Cornpanies Act 2006,

RUACH CITY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Restricted
funds
funds
Notes
£
£
Income from:
Donations and legacies
1,916,751
26,999
Charitable activities
3
65,336
-
Investment income
4
143
-
Other income
5
185,277
-
Total income
2,167,507
26,999
Expenditure on:
Charitable activities
6
1,981,125
10,607
Total expenditure
1,981,125
10,607
Net income for the year/
Net movement in funds
186,382
16,392
Reconciliation of funds
Fund balances at 1 April 2020
7,360,202
57,547
Fund balances at 31 March
2021
7,546,584
73,939		 Total Unrestricted Restricted
2021
funds
funds
£
£
£
1,943,750
2,403,859
19,578
65,336
213,086
-
143
127
-
185,277
9,386
-
2,194,506
2,626,458
19,578
1,991,732
2,623,149
16,682
1,991,732
2,623,149
16,682
202,774
3,309
2,896
7,417,749
7,356,893
54,651
7,620,523
7,360,202
57,547		 Total
2020
£
2,423,437
213,086
127
9,386
2,646,036
2,639,831
2,639,831
6,205
7,411,544
7,417,749

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

All income and expenditure derive from continuing activities.

RUACH CITY CHURCH BALANCE SHEET AS AT31 MARCH 2021 2021 2020 Notes Flxed assets Tangible assets Investments 10 13,031,597 5,163 13.081.365 5,138 13,Q36,760 13,086,503 Currant assets Debtors C8sh at bank and In hand 12 1.76,831 360,554 144,727 132.453 637.385 277,180 Creditors: amounts falling du9 wlthln one year 13 {5.953,622} 15,945,934) Net current Ilabililies {5,416,237) 15.668,7541 Total assets le$$ ¢urrent liabilities 7,620,523 7,417,749 Income funds Restricted funds Unrestricted funds 17 73.939 7,546,584 57.547 7,360,202 7,620.523 7.417,749 The financial $tslements were approved by th T eeso 27 11 |.2oii Paul BrighUy- Truste one Dorolhea Hodge Trustèo 10-

RUACH CITY CHURCH

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from operations
21
Investing activities
Purchase of tangible fixed assets
Purchase of investments
Investment income received
Net cash used in investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(48,420)
(25)
143
-		 £
276,403
(48,302)
-
228,101
132,453
360,554		 2020
£
(35,267)
(76)
127
(96,000)		 £
54,058
(35,216)
(96,000)
(77,158)
209,611
132,453

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Legal form

Ruach City Church is a unincorporated trust and registered charity, with its principal office at 122 Brixton Hill, London, SW2 1RS.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.

The financial statements 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 Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investments and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The financial statements contain information about Ruach City Church as an individual charity and do not contain consolidated financial information as the parent of a group on the grounds of immateriality.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity 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.

The bank loan from Lloyds TSB is due to be repaid within the year. However, the bank has extended the facilities until at least 31 January 2022 to allow arrangements with a new provider to be completed. Ruach City Church is at an advanced stage in the process of re-financing and expect to have a long term solution in place shortly.

1.3 Charitable funds

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 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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity 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.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

For Coronavirus Job Retention Scheme grant income, the income is recognised in the period to which the underlying furloughed staff costs relate to.

1.5 Expenditure

Income and expenses are included in the financial statements as they become receivable or due.

Expenses include VAT where applicable as the charity is not VAT registered.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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 bases:

Freehold land and buildings see below Plant and equipment 30% on net book value Fixtures and fittings 15% on net book value

No depreciation is charged on freehold land. The residual value of freehold buildings is considered to be such that depreciation is immaterial.

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 .

1.7 Impairment of fixed assets

At each reporting end date, the charity 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 ) .

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in expenditure for the year , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.8 Cash and cash equivalents

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.

1.9 Financial instruments

The charity 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 charity 's balance sheet when the charity 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

Basic financial assets, which include debtors 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

Basic financial liabilities, including creditors 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 p aymen ts 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

2 Critical accounting estimates and judgements

In the application of the charity’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.

Critical judgements

Useful economic lives of fixed assets

Tangible fixed assets are depreciated over their estimated useful economic lives to the estimated residual value at the end of that life. Calculation of these depreciation charges requires judgement to be made, which includes a review of the property market as well as the historic and planned usage of the various assets.

3 Charitable activities

Donation from trading subsidiary
Charitable rental income
Other income
Investment income
Interest receivable		 2021
2020
£
£
37,618
78,170
8,125
38,038
19,593
96,878
65,336
213,086
UnrestrictedUnrestricted
funds
funds
2021
2020
£
£
143
127

4 Investment income

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

5 Other income

Coronavirus Job Retention Scheme grant
Charitable activities
Church
work
£
Staff costs
764,910
Ministries
56,373
Property costs
-
Finance charges
-
Overheads
-
Depreciation
-
Auditor's fees
-
821,283		 UnrestrictedUnrestricted
funds
funds
2021
2020
£
£
185,277
9,386
Support
costs
Governance
Total
2021
Total
2020
£
£
£
£
363,521
-
1,128,431
1,416,911
-
-
56,373
243,407
364,520
-
364,520
429,004
111,158
-
111,158
160,346
221,954
-
221,954
257,925
98,188
-
98,188
121,294
-
11,108
11,108
10,944
1,159,341
11,108
1,991,732
2,639,831

6 Charitable activities

7 Trustees

None of the Trustees (or any persons connected with them) received any remuneration , benefits or reimbursed expenses from the charity during the year.

8 Auditor's remuneration

The analysis of auditor's remuneration is as follows:
Fees payable to the company's auditor and associates:
Audit of the company's annual accounts
Non-audit services
All other non-audit services
All amounts shown are inclusive of VAT.		 2021
£
9,180
1,928		 2020
£
9,072
1,872

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

9 Employees

Number of employees

The average monthly number employees, excluding agency staff, during the year was:

Full time
Part time
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
25
6
31
2021
£
935,176
88,010
27,154
1,050,340		 2020
Number
27
5
32
2020
£
994,002
94,340
28,379
1,116,721

In addition, agency staff costs of £20,518 (2020: £1,400) were incurred during the year.

The number of employees whose annual remuneration was £60,000 or more were:

2021 2020
Number Number
£110,000 - £119,999 1 1

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

10 Tangible fixed assets

Freehold land
and buildings
£
Cost
At 1 April 2020
12,512,333
Additions
-
At 31 March 2021
12,512,333
Depreciation and impairment
At 1 April 2020
-
Depreciation charged in the year
-
At 31 March 2021
-
Carrying amount
At 31 March 2021
12,512,333
At 31 March 2020
12,512,333		 Plant and
equipment
£
1,284,294
37,139
1,321,433
1,152,288
32,424
1,184,712
136,721
132,006		 Fixtures and
fittings
£
934,326
11,281
945,607
497,300
65,764
563,064
382,543
437,026		 Total
£
14,730,953
48,420
14,779,373
1,649,588
98,188
1,747,776
13,031,597
13,081,365

The transitional rules of FRS 102 were applied such that the previous revaluations of property used have been held to be the deemed cost going forward. These valuations were as follows:

Brixton Colliers International August, 2011 £2,500,000
Kilburn Colliers International August, 2011 £7,500,000
Norbury Sports Centre Colliers International August, 2011 £800,000
Birmingham Chivers Commercial November, 2012 £240,000

The freehold property w as part financed by a mortgage with Lloyds TSB for £ 6,543,434 at base rate plus 1. 74 %. The loan agreement states that £5,903,434 was to be repaid in October 2019. However, the bank has extended the facilities until at least 31 January 2022 to allow arrangements with a new provider to be completed. Ruach City Church is at an advanced stage in the process of re-financing and expect to have a long term solution in place shortly.

A legal charge is held over the properties against this loan.

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

11 Fixed asset investments

Unlisted
investments
Subsidiary
£
£
Fair value
At 1 April 2020
5,137
1
Additions
25
-
At 31 March 2021
5,162
1
Carrying amount
At 31 March 2021
5,162
1
At 31 March 2020
5,137
1		 Total
£
5,138
25
5,163
5,163
5,138

The unlisted investments are shares in a credit union. The subsidiary investment is a wholly owned trading company, Order My Steps Ltd, which is registered in England and Wales (company number 05127396). The retained profit for the year was £8,744 (2020: £11,002) and the net assets were £14,698 (2020: £23,442). Consolidated accounts have not been produced on the grounds that the subsidiary is immaterial.

12
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
13
Creditors: amounts falling due within one year
Notes
Bank loans
14
Trade creditors
Amounts owed to subsidiary undertakings
Other creditors
Accruals and deferred income		 2021
£
4,758
34,187
111,373
26,513
176,831
2021
£
5,807,434
63,666
-
6,695
75,827
5,953,622		 2020
£
7,710
-
98,222
38,795
144,727
2020
£
5,807,434
28,964
4,899
21,002
83,635
5,945,934

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

14 Loans and overdrafts

Bank loans
Payable within one year		 2021
£
5,807,434
5,807,434		 2020
£
5,807,434
5,807,434

Details of the loans and security given are shown in note 10.

15 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to the Statement of Financial Activities in respect of defined contribution schemes was £27,154 (2020 - £28,379).

16 Analysis of net assets between funds

Unrestricted
2021
£
Fund balances at 31
March 2021 are
represented by:
Tangible assets
13,031,597
Investments
5,163
Current assets/
(liabilities)
(5,416,237)
7,620,523		 Restricted
2021
£
-
-
-
-		 TotalUnrestricted
2021
2020
£
£
13,031,597 13,081,365
5,163
5,138
(5,416,237) (5,726,301)
7,620,523
7,360,202		 Restricted
2020
£
-
-
57,547
57,547		 Total
2020
£
13,081,365
5,138
(5,668,754)
7,417,749

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at Income Expenditure Balance at Income Expenditure Balance at
1 April 2019 1 April 2020 31 March 2021
£ £ £ £ £ £ £
Building fund - 3,444 - 3,444 4,981 - 8,425
Outreach 13,913 16,034 (16,682) 13,265 - (607) 12,658
Dedicated
offerings 10,343 - - 10,343 - - 10,343
Brick 365 100 - 465 2,018 - 2,483
Koinonia 10,000 - - 10,000 - - 10,000
Benevolent 20,000 - - 20,000 - - 20,000
Broadcasting 30 - - 30 - - 30
LCR - - - - 10,000 - 10,000
National
Lottery - - - - 10,000 (10,000) -
54,651 19,578 (16,682) 57,547 26,999 (10,607) 73,939

Building fund: Funds received to help purchase new church buildings. Outreach: This fund is for helping the community.

Dedicated offerings: This fund is money received for various specific purposes. Koinonia: Funds received to support Homeless and Koinonia related activities. Benevolent: Funds received to support Benevolent and Pastoral activities. Broadcasting: Funds received to support general broadcasting costs across all media. LCR - London Community Response: Funds received to support the purchase of a new catering vehicle. National Lottery Covid Community Support : Funds received to support the foodbank programme.

18 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Lease payments recognised as an expense		 2021
£
-
2021
£
14,929		 2020
£
14,929
2020
£
74,120

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

19 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel, as listed on the Legal and Administrative Information page, is as follows:

2021 2020
£ £
Aggregate compensation 401,079 396,860

Transactions with related parties

The charity owns 100% of the share capital of Order My Steps Limited, a company registered in the UK. During the year it gifted £37,618 (2020: £78,170) to the charity. At 31 March 2021 the balance due from the company was £34,187 (2020: due to the company £4,899).

Juanita Francis, the daughter of Bishop & Pastor Penny Francis, was paid £18,548 (2020: £551) for temporary work during the year.

20
Analysis of changes in net (debt)/funds
At 1 April 2020
£
Cash at bank and in hand
132,453
Loans falling due within one year
(5,807,434)
(5,674,981)
21
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Cash generated from operations		 Cash flows At 31 March 2021
£
£
228,101
360,554
-
(5,807,434)
228,101
(5,446,880)
2021
2020
£
£
202,774
6,205
(143)
(127)
98,188
121,294
(32,104)
1,748
7,688
(75,062)
276,403
54,058