Charity registration number 1046218
RUACH CITY CHURCH
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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 - 4 |
| Independent auditor's report | 5 - 7 |
| Statement of financial activities | 8 |
| Balance sheet | 9 |
| Statement of cash flows | 10 |
| Notes to the financial statements | 11 - 23 |
RUACH CITY CHURCH
TRUSTEES REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The Trustees have pleasure in submitting their report together with the financial statements for the Trust for the year ended 31 March 2022.
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)".
Objectives and activities
The objects of the trust are to:
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1 Advance the Christian religion in accordance with the Statement of Beliefs in the Constitution in the United Kingdom or elsewhere;
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2 Relieve people who are in conditions of need, distress or who are aged or sick in the United Kingdom or elsewhere;
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3 Advance education on the basis of Christian principles and in accordance with the said Statement of Beliefs in the United Kingdom or elsewhere.
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.
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.
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RUACH CITY CHURCH
TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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:
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1 To ensure that the organisation complies with its governing document, charity law, company law and any other relevant legislation or regulations.
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2 To ensure that the organisation pursues its objects as defined in its governing document.
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3 To ensure the organisation uses its resources exclusively in pursuance of its objects.
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4 To contribute actively to the Board of Trustees' role in giving firm strategic direction to the organisation.
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5 To safeguard the good name and values of the organisation.
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6 To ensure the effective and efficient administration of the organisation.
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7 To ensure the financial stability of the organisation.
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8 To protect and manage the property of the charity and to ensure the proper investment of the charity's funds.
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9 If the charity employs staff, to appoint a chief executive officer and monitor his/her performance.
Review of the year and future developments
In the 2021/22 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.
The Strategic Group comprising the Bishop, Chair of Trustees, Resident Elders and Senior Staff continued to meet to discuss plans with reference to Health and Safety considerations, Insurance requirements, and Government guidance.
As with most organisations, the year continued to be impacted heavily by the Covid 19 Pandemic. Ruach suspended Public Worship as part of the first national lockdown announced by the Government during March 2020 and gradually started to reopen locations from Easter 2021. There was however subsequent disruption through to Quarter 1 2022, due to the Omicron variant for example.
Services were recorded and streamed from March 2020 with ever increasing and improved content to allow worship to continue throughout the various stages of lockdown. Ruach’s followers continued to give generously - electronically as well as at physical services.
Throughout the various stages of the pandemic, 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 continued to be impacted by Covid in terms of the lower level of economic activity and there being fewer services. Offerings were higher than the previous financial year but still below the historic long term average, whilst other Income streams, including third party Events and Kilburn Car Park revenue, also suffered.
The Government’s Job Retention Scheme helped to mitigate the impact of the reduction in Income though this finished in September 2021.
Control over spending, and the maintenance of a safe level of Cash Balances continued to be a high priority. Expenditure was above the prior year though due to the costs associated with live services resuming and other activities gradually increasing.
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RUACH CITY CHURCH
TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
An overall Income and Expenditure Account Deficit of £258k was recorded in the financial year. This represented another resilient outcome in the circumstances given that many similar organisations struggled to survive at all, and significant progress was made towards securing Ruach’s long term financial future.
Focus continued on the refinancing of the Lloyds Bank loan that matured previously but which was rolled over on the same terms. The offer that was received from an alternative lender was put on hold during Covid but is now once again at an advanced stage.
At the year end, Ruach had total funds of £7.4m, of which £51,696 were restricted and £7,310,396 were unrestricted.
Full details of Ruach’s financial position are set out on pages 9 to 24.
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 place in June 2017, and more recently with the explosion in Lebanon in August 2020.
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 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.
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 continue to return to normal.
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RUACH CITY CHURCH TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 ststemènt of Trustses Tespon¥ibilities Tha Trustees are responsiblè for prèparing the Trustees Report and the financial statements in aectsrdan¢è with applicable law and United Kingdorn Accounting Standards Iuniled Kingdom Generally Accepted Accounting Pra¢ti¢o1. The law applicable lo charlties in England and Wales requlres the Trustees to prepare financial ststements lor each financial year which give a true and fair view of tho state of affalrs of tho ¢h8rity and of th& incomlng resources and application of reSoUS ofthe charity forthal year. In preparir¥J these financial statements, the Trustees are required to- - select suitable accounting polides and then apply them conslstently. - observe the methods 8nd prin¢ipl8s in the Charities SORP,. rnakg judgements and estimates that are reasonable and prudent., state whether applicable accounting standards have been followed. subject to any material departures disdosed aThJ explained in the financial statements., and pteparè tha flnaneial statèments on the going concem basis unless it is inappropriats to PsUM8 that the charity 11 conllnue Sn operafjon. The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable auraCY al any tirne Ihe financial position of the charity and enable them to ensure that the financial ststernents comply with the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible lor safeguarding the assets of the charity atwj henee for tsklng asonable steps for the prevendon and detedon of fraud and other Srregularities. Auditors A r&solullon wll be PTOP05ed at the Annual General Meeting that Jacob Cavenagh & Skeet be appointed audilo lo the charity. The Trustees report was approved by the Board of Trustees. BrighUy-Jones Trustee Dated..
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 2022 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:
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give a true and fair view of the state of the charity’s affairs as at 31 March 2022 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with 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 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.
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:
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the information given in the financial statements is inconsistent in any material respect with the Trustees report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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RUACH CITY CHURCH
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RUACH CITY CHURCH
Responsibilities of Trustees
As explained more fully in the statement of Trustees responsibilities, 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.
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.
In response to the risks identified we designed procedures which included, but were not limited to:
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agreeing financial statement disclosures to underlying supporting documentation
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testing the calculation of claims made under the Coronavirus Job Retention Scheme
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identifying and testing journal entries
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reviewing Trustees meeting minutes
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evaluating the charity’s internal controls
There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect 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’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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RUACH CITYCHURCH INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF RUACH CITY CHURCH Other matters Your attention 15 drawn to the fact that the charity has preparèd financial statements in accordance with 'A¢¢ounting and Reporting by Charities.. Statement of Rewmmended Practice applicable to charities prepar¢ng their accounts in accordance wlih the Financial Reporting Standard applicable in the UK and Republic of Iland IFRS 1021. las arnendedl in pfèrence to the Accounting and Reporting by Charities.. Statement of Recommended Pracllce Issued on 1 Aprfl 2005 which is referred to in the exiant regulations but has now bÈert wthdrawfi. This has been done in order for the financial staterllents to provide a true and fair view in accordance with Generally Acceptsd Accounting Practice effedive for reporting periods beginning on or after 1 January 2015. Use of our repgrt This report is made solely to the company's members, as a body. Sn accordanc8 vAth sèdon 391 of thè Companles Act 2014. Our audit work has been undertaken so that we mlght state to the companrfs mernbers those matters we aTe requirèd to slate to them In an audilorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the company and the wmpany's members as a body, for our audit work, lor this report. or for the opinions we have formed. Paul N8wton FCA (Senior Statutory Auditor) for and on bahalf of Jacob Cavenagh & Skeet 3010112023 Chartered Accountants Statutory Auditor 5 Robin Hood Lane Sutton Surrey SM12SW Jacob Covenagh & Skeet is eligible for appointment as auditor of the charfty by virtue of its ellgibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
RUACH CITY CHURCH
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022
| Unrestricted Restricted funds funds Notes £ £ Income from: Donations and legacies 2,119,075 3,755 Charitable activities 3 47,408 - Investment income 4 28 - Other income 5 101,806 - Total income 2,268,317 3,755 Expenditure on: Charitable activities 6 2,511,724 18,779 Total expenditure 2,511,724 18,779 Net (expenditure)/income before transfers (243,407) (15,024) Gross transfers between funds 7,219 (7,219) Net (expenditure)/income for the year/ Net movement in funds (236,188) (22,243) Reconciliation of funds Fund balances at 1 April 2021 7,546,584 73,939 Fund balances at 31 March 2022 7,310,396 51,696 |
Total Unrestricted Restricted 2022 funds funds £ £ £ 2,122,830 1,916,751 26,999 47,408 65,336 - 28 143 - 101,806 185,277 - 2,272,072 2,167,507 26,999 2,530,503 1,981,125 10,607 2,530,503 1,981,125 10,607 (258,431) 186,382 16,392 - - - (258,431) 186,382 16,392 7,620,523 7,360,202 57,547 7,362,092 7,546,584 73,939 |
Total 2021 £ 1,943,750 65,336 143 185,277 |
|---|---|---|
| 2,194,506 | ||
| 1,991,732 | ||
| 1,991,732 | ||
| 202,774 - |
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| 202,774 7,417,749 |
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| 7,620,523 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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RUACH CITY CHURCH BALANCE SHEET ASAT31 MARCH 2022 2022 2021 Fixed assets Tangible assets Investments io 11 13.049.933 4190 13,031,597 5,163 13,055.123 13.036.760 Current assets Debto Cash at b8nk and in hand 12 189.770 174981 176,831 360,554 Credtt¢)rJ: amounts falllng du6 withln on• ar 364751 537.385 13 {6.057,782) 15.953.622) Net ajrrenl fbIlIt*S (1693,0311 15.416.237) Total ass•ts lèss current Ilablllues 7.362.092 7.620,523 Incomo funds Rastrict&J fijnds Unrestrled funds 17 51,696 7,310.396 73,939 7,,584 Y.362.092 7,620.523 3010112023 Th8 finandal statements wèrB approved by the TnAsts8S On......................... aul Brighdy-Jones Trustee
RUACH CITY CHURCH
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022
| 2022 | 2021 | ||||||
|---|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |||
| Cash flows from operating activities | |||||||
| Cash generated from operations | 20 | 80,263 | 382,838 | ||||
| Investing activities | |||||||
| Purchase of tangible fixed assets | (125,634) | (48,420) | |||||
| Purchase of investments | (27) | (25) | |||||
| Investment income received | 28 | 143 | |||||
| Net cash used in investing activities | (125,633) | (48,302) | |||||
| Financing activities | |||||||
| Loan interest paid | (110,203) | (106,435) | |||||
| Repayment of bank loans | (30,000) | - | |||||
| Net cash used in financing activities | (140,203) | (106,435) | |||||
| Net (decrease)/increase in cash and cash | |||||||
| equivalents | (185,573) | 228,101 | |||||
| Cash and cash equivalents at beginning of year | 360,554 | 132,453 | |||||
| Cash and cash equivalents at end of year | 174,981 | 360,554 |
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
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 amounts 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 loan from Lloyds Banking Group has been extended to at least 28 February 2023 to allow completion of the legal and other associated work with the new lender.
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.
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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 Motor vehicles 30% 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.
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade 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.
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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 |
2022 £ 10,707 9,500 27,201 47,408 |
2021 £ 37,618 8,125 19,593 |
|---|---|---|
| 65,336 |
4 Investment income
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Interest receivable | 28 | 143 |
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
5 Other income
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Coronavirus Job Retention Scheme grant | 90,709 | 185,277 |
| Places of Worship grant | 11,097 | - |
| 101,806 | 185,277 |
6 Charitable activities
| Staff costs Ministries Property costs Finance charges Overheads Depreciation Auditor's fees |
Church work £ 828,355 169,449 - - - - - 997,804 |
Support costs Governance £ £ 360,202 - - - 578,406 - 117,126 - 357,575 - 107,298 - - 12,092 1,520,607 12,092 |
Total 2022 £ 1,188,557 169,449 578,406 117,126 357,575 107,298 12,092 2,530,503 |
Total 2021 £ 1,128,431 56,373 364,520 111,158 221,954 98,188 11,108 |
|---|---|---|---|---|
| 1,991,732 |
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
| Fees payable to the charity's auditor and associates: Audit of the charity's annual accounts Non-audit services Taxation compliance services All other non-audit services Total non-audit fees |
2022 £ 9,648 420 2,024 2,444 |
2021 £ 9,180 |
|---|---|---|
| - 1,928 |
||
| 1,928 |
All amounts shown are inclusive of VAT.
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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 |
2022 Number 24 6 30 2022 £ 894,661 85,878 25,565 1,006,104 |
2021 Number 25 6 |
|---|---|---|
| 31 | ||
| 2021 £ 935,176 88,010 27,154 |
||
| 1,050,340 |
In addition, agency staff costs of £43,960 (2021: £20,518) were incurred during the year.
| The number of employees whose annual remuneration was £60,000 or more | ||
|---|---|---|
| were: | ||
| 2022 | 2021 | |
| Number | Number | |
| £110,000 - £119,999 | 1 | 1 |
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
10 Tangible fixed assets
| Tangible fixed assets | |||
|---|---|---|---|
| Freehold land and buildings £ Cost At 1 April 2021 12,512,333 Additions - At 31 March 2022 12,512,333 Depreciation and impairment At 1 April 2021 - Depreciation charged in the year - At 31 March 2022 - Carrying amount At 31 March 2022 12,512,333 At 31 March 2021 12,512,333 |
Plant and equipment £ 1,321,433 59,815 1,381,248 1,184,712 46,311 1,231,023 150,225 136,721 |
Fixtures and fittings Motor vehicles £ £ 945,607 - 37,615 28,204 983,222 28,204 563,064 - 58,189 2,798 621,253 2,798 361,969 25,406 382,543 - |
Total £ 14,779,373 125,634 |
| 14,905,007 | |||
| 1,747,776 107,298 |
|||
| 1,855,074 | |||
| 13,049,933 | |||
| 13,031,597 |
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 was part financed by a mortgage with Lloyds for £6,543,434 at base rate plus 1.74%. Lloyds granted Ruach a capital repayment holiday and has extended this until February 2023 to allow arrangements with a new provider to be completed.
A legal charge is held over the properties against this loan.
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
11 Fixed asset investments
| Fixed asset investments | |
|---|---|
| Unlisted investments Subsidiary £ £ Fair value At 1 April 2021 5,162 1 Additions 27 - At 31 March 2022 5,189 1 Carrying amount At 31 March 2022 5,189 1 At 31 March 2021 5,162 1 |
Total £ 5,163 27 |
| 5,190 | |
| 5,190 | |
| 5,163 |
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 £5,059 (2021: £8,744) and the net assets were £9,639 (2021: £14,698). Consolidated accounts have not been produced on the grounds that the subsidiary is immaterial.
12 Debtors
| Debtors | ||
|---|---|---|
| Amounts falling due within one year: Trade debtors Amounts owed by subsidiary undertakings Other debtors Prepayments and accrued income Creditors: amounts falling due within one year Notes Bank loans 14 Trade creditors Amounts owed to subsidiary undertakings Other creditors Accruals and deferred income |
2022 £ 9,140 - 121,068 59,562 189,770 2022 £ 5,777,434 144,622 606 27,333 107,787 6,057,782 |
2021 £ 4,758 34,187 111,373 26,513 |
| 176,831 | ||
| 2021 £ 5,807,434 63,666 - 6,695 75,827 |
||
| 5,953,622 |
13 Creditors: amounts falling due within one year
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
| 14 Loans and overdrafts Bank loans Payable within one year |
2022 £ 5,777,434 5,777,434 |
2021 £ 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 £25,565 (2021 - £27,154).
| 16 Analysis of net assets between funds Unrestricted 2022 £ Fund balances at 31 March 2022 are represented by: Tangible assets 13,049,933 Investments 5,190 Current assets/(liabilities) (5,744,727) 7,310,396 |
Restricted 2022 £ - - 51,696 51,696 |
Total Unrestricted 2022 2021 £ £ 13,049,933 13,031,597 5,190 5,163 (5,693,031) (5,490,176) 7,362,092 7,546,584 |
Restricted 2021 £ - - 73,939 73,939 |
Total 2021 £ 13,031,597 5,163 (5,416,237) |
|---|---|---|---|---|
| 7,620,523 |
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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 Balance at 1 April 2020 Income Expenditure Balance at 1 April 2021 £ £ £ £ Building fund 3,444 4,981 - 8,425 Outreach 13,265 - (607) 12,658 Dedicated offerings 10,343 - - 10,343 Brick 465 2,018 - 2,483 Koinonia 10,000 - - 10,000 Benevolent 20,000 - - 20,000 Broadcasting 30 - - 30 LCR - 10,000 - 10,000 National Lottery - 10,000 (10,000) - Wellbeing - - - - Rental support - - - - 57,547 26,999 (10,607) 73,939 |
Movement in funds Income Expenditure Transfers Balance at 31 March 2022 £ £ £ £ 87 - - 8,512 - (15,439) 2,781 - - - - 10,343 - - - 2,483 - - - 10,000 - - - 20,000 248 - - 278 - - (10,000) - - - - - 80 - - 80 3,340 (3,340) - - 3,755 (18,779) (7,219) 51,696 |
Movement in funds Income Expenditure Transfers Balance at 31 March 2022 £ £ £ £ 87 - - 8,512 - (15,439) 2,781 - - - - 10,343 - - - 2,483 - - - 10,000 - - - 20,000 248 - - 278 - - (10,000) - - - - - 80 - - 80 3,340 (3,340) - - 3,755 (18,779) (7,219) 51,696 |
|---|---|---|
| 51,696 |
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
17 Restricted funds
(Continued)
Building fund: Funds received to help purchase new church buildings. Outreach: This fund is for helping the community. A transfer was made in the year to reduce the deficit to nil. 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. The transfer to unrestricted funds in the year is to purchase the vehicle which has been capitalised.
National Lottery Covid Community Support : Funds received to support the foodbank programme. Wellbeing: Ministry established to provide support to the Ruach family and local community. Rental support: Donations were given towards rent payments for a member of the Ruach family.
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
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 Between two and five years Lease payments recognised as an expense |
2022 £ 39,285 116,475 155,760 2022 £ 27,075 |
2021 £ - - |
|---|---|---|
| - | ||
| 2021 £ 14,929 |
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:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Aggregate compensation | 402,127 | 401,079 |
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 £10,707 (2021: £37,618) to the charity. At 31 March 2022 the balance due to the company was £606 (2021: due from the company £34,187).
Juanita Francis, the daughter of Bishop & Pastor Penny Francis, was paid £19,420 (2021: £18,548) for agency work during the year.
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RUACH CITY CHURCH
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
| 20 Cash generated from operations (Deficit)/surplus for the year Adjustments for: Investment income recognised in statement of financial activities Loan interest paid Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase) in debtors Increase in creditors Cash generated from operations 21 Analysis of changes in net (debt)/funds At 1 April 2021 £ Cash at bank and in hand 360,554 Loans falling due within one year (5,807,434) (5,446,880) |
2022 2021 £ £ (258,431) 202,774 (28) (143) 110,203 106,435 107,298 98,188 (12,939) (32,104) 134,160 7,688 80,263 382,838 Cash flowsAt 31 March 2022 £ £ (185,573) 174,981 30,000 (5,777,434) (155,573) (5,602,453) |
|---|---|
22 Events after the reporting date
The sale of the Norbury Sports Centre with proceeds of £3.6m took place in April 2022, after the financial year end. There is the possibility of further proceeds in certain circumstances. However, it is not possible to quantify the likelihood of realising this.
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