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2023-03-31-accounts

Charity registration number 1046218

RUACH CITY CHURCH

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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
Statement of Trustees responsibilities 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 - 24

RUACH CITY CHURCH

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2023

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:

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.

RUACH CITY CHURCH

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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 2022/23 financial year, Ruach City Church continued as one church in the following locations: Brixton, Kilburn, Walthamstow and Birmingham Hunters Road.

Ruach has survived through the pandemic, when many similar organisations did not, and moved into the post pandemic era on the front foot in what was another very full and productive year. In April 2022 a Joint Venture Agreement was finalised for the development of the Norbury site with Ruach’s Partners, which promises to be a long term project with many benefits for the local community as well as Ruach.

During the summer of 2022 the Streatham theatre building was acquired and the Brixton premises were sold. Worship and Ruach’s Administration are due to relocate to Streatham in summer 2024 and are continuing at Brixton in the meantime.

Negotiations for the refinance of Ruach’s long standing loan with Lloyds continued during the year. After the due diligence process was concluded, a new loan was agreed with and drawn down from Charity Bank and the Lloyds loan redeemed in September 2023. Charity Bank’s ethos is in line with that of Ruach’s, with both being Charities.

At the end of the financial year, in March 2023, Ruach submitted an application to the Charity Commission to convert its legal status from an Unincorporated Trust to a Charitable Incorporated Organisation (CIO). Confirmation was recently received that the application had been successful and the new CIO has been registered. Work has now commenced on planning the next steps, including the transfer of Assets and Liabilities from the old Charity to the new. The transaction, including appointment of Trustees to the new Charity, will need to be approved by Ruach’s Members at the appropriate time.

Operational and financial review of the year

Ruach’s financials benefited from Profits made on the disposals of the Norbury and Brixton locations because the disposal proceeds exceeded the Net Book Values in both cases. Ruach prudently used the net proceeds to reduce its debt by over £3m during the year, despite the simultaneous acquisition of the new Streatham building.

Offerings totaling approximately £2.15m were the highest since the Pandemic and at over £41,000 per week were well ahead of the long term average. Income was also boosted by rent received from the tenant at Streatham, and despite the fact that Grants from the Government’s Job Retention Scheme had ceased in September 2021, total Income (excluding Property disposals) was approximately 12 per cent ahead of 2021/22.

RUACH CITY CHURCH

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Expenditure was above the prior year as post pandemic activity picked up leading to higher Property and Travel costs for example. Results were also impacted by a number of one-off costs associated with the Refinance and post pandemic organisation restructure.

Overall there was an Income and Expenditure Account Surplus £4.6m. Excluding gains on Property disposals there was an underlying Deficit of £40k. However, if the exceptional costs relating to the Refinance and organistation restructure noted above were excluded there would have been an underlying Surplus.

This represented another very resilient financial performance in the circumstances. As also noted above it was also a year of many achievements with a very solid platform being laid for Ruach’s long term future.

Close control over spending, and the maintenance of a safe level of Cash Balances continued to be a high priority, as always.

At the year end, Ruach had total funds of nearly £12m, of which £69,524 were restricted and £11,908,075 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. Since mid 2023 Ruach has had three very well qualified and experienced Acting Trustees ready to be put forward for election to the new CIO.

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.

RUACH CITY CHURCH TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Safeguarding 8nd protèction of Ruach's Freehold property assets is another key area of focus, and is overseen by a very experienced Propety and Facilities Manager. During the past few years, Capital Expenditure has been larg8t8d tr)wards essential remedial works and security enhancement5 in line with requirements identified and agr8ed with our insurers. The in-house team has also been strengthen8d. The need for the further Capital Expendlture required lo ensur8 Health and Safely compliance and good pr8CtiC8 of Ruach's properties post Ctsvld is Under r8view as things continue to return to normal. Audttors A resolution will be proposed at the Annual General Meeting that Jacob Cavanagh & Ske8t be re.appointed auditors to the charity. The Trustees report was approved by the 8oard of Trustees. Paul Brighlly-Jonés Trustee Dated.. 301112024

RUACH CITY CHURCH

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

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

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 2023 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.

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:

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 and management override of controls.

In response to the risks identified we designed procedures which included, but were not limited to:

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.

RUACH CITY CHURCH

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

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jacob Cavenagh & Skeet

30/1/2024 .........................

Chartered Accountants Statutory Auditor

5 Robin Hood Lane Sutton Surrey SM1 2SW

Jacob Cavenagh & Skeet is eligible for appointment as auditor of the charity by virtue of its eligibility 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 2023

Unrestricted
funds
2023
Notes
£
Income and endowments from:
Donations and legacies
2,435,970
Charitable activities
3
120,325
Investments
4
71
Other income
5
4,664,047
Total income
7,220,413
Expenditure on:
Charitable activities
6
2,606,619
Total expenditure
2,606,619
Net income/(expenditure)
4,613,794
Transfers between
funds
(16,115)
Net movement in
funds
4,597,679
Reconciliation of funds:
Fund balances at 1 April 2022
7,310,396
Fund balances at 31 March
2023
11,908,075		 Restricted
funds
2023
£
17,886
-
-
-
17,886
16,173
16,173
1,713
16,115
17,828
51,696
69,524		 Total
Unrestricted
funds
2023
2022
£
£
2,453,856
2,119,075
120,325
47,408
71
28
4,664,047
101,806
7,238,299
2,268,317
2,622,792
2,511,724
2,622,792
2,511,724
4,615,507
(243,407)
-
7,219
4,615,507
(236,188)
7,362,092
7,546,584
11,977,599
7,310,396		 Restricted
funds
2022
£
3,755
-
-
-
3,755
18,779
18,779
(15,024)
(7,219)
(22,243)
73,939
51,696		 Total
2022
£
2,122,830
47,408
28
101,806
2,272,072
2,530,503
2,530,503
(258,431)
-
(258,431)
7,620,523
7,362,092

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 ASAT31 MARCH 2023 2023 2022 Notos Flxed assets T•nglb18 assets Investments 10 11 14,109,808 5,215 13,049,933 5,190 14,115,023 13,055,123 Currant asséts Debtors Cash at bank and in hand 12 225,040 344,823 189,770 174,981 $69,863 364.751 Cr8dltors: amounts falllng du• wlthln one year 13 12,707.28n 16.057,7821 Nel ￿rrent liabilities 12.137.424) 15,693,031) Total •$$ets les5 Gurrent Ilabilltles 11,977.599 7.362,092 Income funds R85trlct8d funds Un￿$t￿cted funds 89.524 11,908.075 S1,696 7.310,396 11,977.599 7,362,092 301112024 The finanotal statements were approved by the Trustees on........................- Paul Brightl Trustee ones 10-

RUACH CITY CHURCH

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

2023
Notes
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
21
(9,850)
Investing activities
Purchase of tangible fixed assets
(4,603,210)
Proceeds from disposal of tangible fixed
assets
8,083,744
Purchase of investments
(25)
Investment income received
71
Net cash generated from/(used in)
investing activities
3,480,580
Financing activities
Loan interest paid
(111,063)
Repayment of bank loans
(3,189,825)
Net cash used in financing activities
(3,300,888)
Net increase/(decrease) in cash and cash
equivalents
169,842
Cash and cash equivalents at beginning of year
174,981
Cash and cash equivalents at end of year
344,823		 2022
£
£
80,263
(125,634)
-
(27)
28
(125,633)
(110,203)
(30,000)
(140,203)
(185,573)
360,554
174,981

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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.

Negotiations for the refinance of Ruach’s long standing loan with Lloyds continued during the year. After the due diligence process was concluded, a new loan was agreed with and drawn down from Charity Bank and the Lloyds loan redeemed in September 2023.

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 or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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.

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.

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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.

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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
Rental income
Other income		 2023
£
18,040
71,542
30,743
120,325		 2022
£
10,707
9,500
27,201
47,408

4 Investment income

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 71 28

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

5 Other income

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Net gain on disposal of tangible fixed assets 4,655,654 -
Coronavirus Job Retention Scheme grant - 90,709
Places of Worship grant 8,393 11,097
4,664,047 101,806

6 Charitable activities

Staff costs
Ministries
Property costs
Finance charges
Overheads
Depreciation
Auditor's fees		 Church
work
£
965,981
205,881
-
-
-
-
-
1,171,862		 Support
costs
Governance
£
£
342,633
-
-
-
551,772
-
123,742
-
304,783
-
115,245
-
-
12,755
1,438,175
12,755		 Total
2023
£
1,308,614
205,881
551,772
123,742
304,783
115,245
12,755
2,622,792		 Total
2022
£
1,188,557
169,449
578,406
117,126
357,575
107,298
12,092
2,530,503

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:
For audit services
Audit of the financial statements of the charity
For other services
Taxation compliance services
All other non-audit services		 2023
£
10,500
-
2,255
2,255		 2022
£
9,648
420
2,024
2,444

All amounts shown are inclusive of VAT.

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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		 2023
Number
26
2
28
2023
£
914,160
88,113
17,177
1,019,450		 2022
Number
24
6
30
2022
£
894,661
85,878
25,565
1,006,104

Redundancy and termination payments totalling £32,015 (2022: £Nil) were made in the reporting period.

In addition, agency staff costs of £45,228 (2022: £43,960) were incurred during the year.

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

were:
2023 2022
Number Number
£110,000 - £119,999 1 1

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10 Tangible fixed assets

Freehold land
and buildings
£
Cost
At 1 April 2022
12,512,333
Additions
4,082,863
Disposals
(3,428,090)
At 31 March 2023
13,167,106
Depreciation and impairment
At 1 April 2022
-
Depreciation charged in the year
-
At 31 March 2023
-
Carrying amount
At 31 March 2023
13,167,106
At 31 March 2022
12,512,333		 Plant and
equipment
£
1,381,248
41,171
-
1,422,419
1,231,023
40,655
1,271,678
150,741
150,225		 Fixtures and
fittings
Motor vehicles
£
£
983,222
28,204
479,176
-
-
-
1,462,398
28,204
621,253
2,798
66,968
7,622
688,221
10,420
774,177
17,784
361,969
25,406		 Total
£
14,905,007
4,603,210
(3,428,090)
16,080,127
1,855,074
115,245
1,970,319
14,109,808
13,049,933

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:

Kilburn Colliers International August, 2011 £7,500,000
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 after the year end when the mortgage was transferred to Charity Bank.

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

11 Fixed asset investments

Unlisted
investments
£
Fair value
At 1 April 2022
5,189
Additions
26
At 31 March 2023
5,215
Carrying amount
At 31 March 2023
5,215
At 31 March 2022
5,189		 Subsidiary
£
1
-
1
1
1		 Total
£
5,190
26
5,216
5,216
5,190

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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
14
Loans and overdrafts
Bank loans
Payable within one year		 2023
£
12,229
41,746
137,527
33,538
225,040
2023
£
2,587,609
46,331
-
25,899
47,448
2,707,287
2023
£
2,587,609
2,587,609		 2022
£
9,140
-
121,068
59,562
189,770
2022
£
5,777,434
144,622
606
27,333
107,787
6,057,782
2022
£
5,777,434
5,777,434

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 £17,177 (2022 - £25,565).

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16
Analysis of net assets between funds
Unrestricted
2023
£
Fund balances at 31
March 2023 are
represented by:
Tangible assets
14,109,808
Investments
5,215
Current assets/(liabilities)
(2,206,948)
11,908,075		 Restricted
2023
£
-
-
69,524
69,524		 Total
Unrestricted
2023
2022
£
£
14,109,808
13,049,933
5,215
5,190
(2,137,424)
(5,766,970)
11,977,599
7,288,153		 Restricted
2022
£
-
-
73,939
73,939		 Total
2022
£
13,049,933
5,190
(5,693,031)
7,362,092

17 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

General funds
Previous year:
General funds		 At 1 April
2022
£
7,310,396
At 1 April
2021
£
7,546,584		 Incoming
resources
£
7,220,413
Incoming
resources
£
2,268,317		 Resources
expended
£
(2,606,619)
Resources
expended
£
(2,511,724)		 Transfers
At 31 March
2023
£
£
(16,115)
11,908,075
Transfers
At 31 March
2022
£
£
7,219
7,310,396

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Balance at
1 April 2021
£
Building fund
8,425
Outreach
12,658
Dedicated offerings
10,343
Brick
2,483
Koinonia
10,000
Benevolent
20,000
Broadcasting
30
LCR
10,000
Wellbeing
-
Rental support
-
73,939		 Movement in funds
Income
Expenditure
Transfers
Balance at
1 April 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 2023
£
£
£
£
14,757
-
-
23,269
58
(16,173)
16,115
-
-
-
-
10,343
1,200
-
-
3,683
-
-
-
10,000
-
-
-
20,000
730
-
-
1,008
-
-
-
-
1,141
-
-
1,221
-
-
-
-
17,886
(16,173)
16,115
69,524		 Movement in funds
Income
Expenditure
Transfers
Balance at
31 March 2023
£
£
£
£
14,757
-
-
23,269
58
(16,173)
16,115
-
-
-
-
10,343
1,200
-
-
3,683
-
-
-
10,000
-
-
-
20,000
730
-
-
1,008
-
-
-
-
1,141
-
-
1,221
-
-
-
-
17,886
(16,173)
16,115
69,524
69,524

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

18 Restricted funds

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. Brick: See Building Fund.

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 2022 was to purchase the vehicle which has been capitalised. 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.

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

19 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		 2023
£
39,285
77,190
116,475
2023
£
39,285		 2022
£
39,285
116,475
155,760
2022
£
27,075

20 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:

2023 2022
£ £
Aggregate compensation 419,771 402,127

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 £18,040 (2022: £10,707) to the charity. At 31 March 2023 the balance due from the company was £41,746 (2022: due to the company £606).

Juanita Francis, the daughter of Bishop & Pastor Penny Francis, was paid £18,289 (2022: £19,420) for agency work during the year.

RUACH CITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

21 Cash generated from operations 2023 2022
£ £
Surplus/(deficit) for the year 4,615,507 (258,431)
Adjustments for:
Investment income recognised in statement of financial activities (71) (28)
Loan interest paid 111,063 110,203
Gain on disposal of tangible fixed assets (4,655,654) -
Depreciation and impairment of tangible fixed assets 115,245 107,298
Movements in working capital:
(Increase) in debtors (35,270) (12,939)
(Decrease)/increase in creditors (160,670) 134,160
Cash (absorbed by)/generated from operations (9,850) 80,263
22 Analysis of changes in net (debt)/funds
At 1 April 2022 Cash flowsAt 31 March 2023
£ £ £
Cash at bank and in hand 174,981 169,842 344,823
Loans falling due within one year (5,777,434) 3,189,825 (2,587,609)
(5,602,453) 3,359,667 (2,242,786)