**Registered Charity Number 1052178**
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE**
**REPORT AND ACCOUNTS For the year ending 31 March 2022**
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE TRUSTEES’ REPORT** _**For the year ended 31 March 2022**_
The Trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2022.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Registered charity name** International Harvest Church Newcastle **Charity registration number** 1052178 **Registered office** International Harvest Church, Stanhope Street, Newcastle upon Tyne NE4 5JH
## **Trustees**
The Trustees of International Harvest Church Newcastle during the period and to the date of signing this report are as follows:
Clive Charles Harding Andrew William Meldrum Bowie John Musa Kamara Andrew James Charlton Benjamin Collum Doherty
## **Independent Examiner**
Pete O’Hara FCA, Chartered Accountant, 4 Stoneyhurst Road West, Gosforth, Newcastle upon Tyne NE3 1PG
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Documents**
The Trust was established by a Trust Deed of 1 July 1957, but, pursuant to a Scheme of the Charity Commission for England and Wales, a Declaration of Trust was executed in 1993 under which the long leasehold property invested in The Trustees of International Harvest Church and the current property of the church vested in the Church Council under a Declaration of Trust was executed in the form of the Assemblies of God Model Deed prescribed under that Scheme.
The Model Deed provides that the property of the church shall be used for the furthering of the Objects of the church and for no other purpose.
## **Charitable Purpose**
International Harvest Church (IHC) Newcastle’s charitable objects are to advance the Christian faith; relieving sickness and financial hardship and to advance education.
2
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE**
**TRUSTEES’ REPORT**
_**For the year ended 31 March 2022**_
## **STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)**
## **Structure and Governance**
The Trustees of the Charity form the body known as the Church Council. Ideally the membership of this body shall be between six and ten in number (and never fewer than three). The governing document allows for the remuneration of Trustees, but they must not be in a majority.
New Trustees can be proposed by any current Trustee and then discussed by the whole Church Council. Such a discussion would look at the needs of the role and the existing team, and the relative merits of the proposed candidate.
Generally, Trustees are selected from the men's Primary Twelve, who provide spiritual oversight to the Church. We recognise that this is a somewhat narrower group but believe there should be a consistency between the spiritual leadership of the church and the organisational leadership of the Charity.
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and Aims**
The objects of the church are, for the benefit of the public, to:
(i) advance the Christian faith in such ways and in such parts of the United Kingdom or the world as the Church Council from time to time may think fit;
(ii) to relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind including through the provision of counselling and support in such parts of the United Kingdom or the world as the Church Council from time to time may think fit; and
(iii) to advance education in such ways and in such parts of the United Kingdom or the world as the Church Council from time to time may think fit.
In achieving these objects, the church has organized itself in small groups known as cell (City) groups. This follows the G12 model, which emphasizes the four components of win, consolidate, disciple and send.
## **Health & Safety**
- To provide adequate control of the health and safety risks arising from our work activities;
- • To consult with our personnel on matters affecting their health and safety;
- To provide and maintain safe plant and equipment;
- To ensure safe handling and use of substances;
- To provide information, instruction and supervision for personnel;
- To ensure all personnel are competent to do their tasks, and to give adequate training;
- To prevent accidents and cases of work-related ill health;
- To maintain safe and healthy working conditions; and
- To review and revise this policy as necessary at regular intervals.
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**TRUSTEES’ REPORT**
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE**
_**For the year ended 31 March 2022**_
## **OBJECTIVES AND ACTIVITIES**
## **Investment Policy**
All funds raised by IHC are invested directly into the operational activities of the charity in order to achieve its stated aims. Our cash reserves are kept in an interest-bearing account, and, where possible and appropriate, other investment options will be considered.
## **Public Benefit**
The Trustees understand and have discussed the implications of the provisions of the Charities Act 2006, which state that all charities must demonstrate that they are established for public benefit, and have had due regard to the public benefit guidance issued by the Charity Commission. The Trustees believe that the charity meets both of the key principles.
Principle 1 - There must be an identifiable benefit, or benefits
IHC Newcastle’s activities create opportunities for people to explore the Christian faith and find the freedom that comes from a personal relationship with Jesus. We teach and educate people on how they can do this personally. In addition, IHC also provides teaching on how to improve communication between people and other ways to strengthen families and communities, and live as responsible citizens in society.
Principle 2 - Benefit must be to the public, or a section of the public
Engagement in IHC Newcastle’s public activities is open to the entire general public. We work to maintain links with our local community and have hosted local community events as part of this service and benefit to the local community
IHC Newcastle’s beneficiaries are therefore entirely appropriate to its aims and the public as a whole benefits from its work. All these benefits are clear, evidenced and relate directly to IHC Newcastle’s aims. In addition, the Trustees do not consider that any significant detriment or harm flows from IHC Newcastle’s work.
## **The Charity's grant making policies**
The charity does not operate an ongoing, open programme for grant-making.
## **The contribution of volunteers**
The charity makes extensive use of volunteers to support its activities.
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**INTERNATIONAL HARVEST CHURCH NEWCASTLE TRUSTEES’ REPORT** _**For the year ended 31 March 2022**_
## **ACHIEVEMENTS AND PERFORMANCE**
## **Summary of the main achievements of the charity during the year**
At the start of this financial year, COVID-19 related restrictions were still in place, but with the prospect of these being eased by the summer of 2021. Within the scope of the UK Government’s social distancing regulations and guidelines, we pursued the objectives of the Charity through regular weekly Sunday services, small (city) group meetings and other activities. We also implemented a mission strategy of ‘sending’, to encourage active participation of our members and maximise the impact of our activities. City groups were commissioned (or ‘sent’) in pairs, to take the church ‘out there’ (i.e., beyond the confines of our building) and reach out to different communities in teaching, encouraging and motivating people to become better individuals who make a positive contribution to families and society at large. The outworking of this strategy saw Sunday and outreach activities organised at different times and locations, including meeting is a community centre in the West End of the city, in people’s homes, and in a local park. Many opportunities were provided for the leadership development of members and in making many contacts with people who had previously not been part of the Church.
In addition to the regular and varied activities of the City Group ‘pairs’, we also achieved the following:
- Organised monthly (hybrid) gatherings of the whole church to provide mutual encouragement, and support for everyone. These gatherings included refreshments and family-fun activities and members of the local community were invited to take part.
- Participated in online international conferences to encourage and enhance the spiritual and social development of our members through the teaching, inspiration, and connections that these events provide.
- The resurfacing of our car parks through the assistance provided to Newcastle United Foundation (NUF) and their contractors, Robertsons, in granting them access through our land, to facilitate the development of the NUF building which borders the Church property.
As part of our objective to minister to the needs of the whole person, we provided financial and other support for individuals and families through our city groups and other individual contacts from the Senior Pastors and Leadership of the Church. We also contributed to the work of other organisations and activities such as the UK G12 Group of churches and the Christian Institute. We raised substantial funds to support the work of the following organisations, whose activities are broadly in line with our objectives as a charity:
- Look Around – an organisation which helps people with drug and alcohol addiction by providing services to help them deal with the problem and reintegrate them into society without the need for ongoing dependency on medication.
- Open Doors UK & Ireland – an organisation which supports persecuted Christians worldwide.
- West End Food Bank Newcastle – helping local people deal with the cost-of-living crisis by providing food parcels to those in need.
- • Churches in Ukraine to support their work in relocating and feeding members in their congregations who have been affected by the war with Russia.
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**INTERNATIONAL HARVEST CHURCH NEWCASTLE TRUSTEES’ REPORT**
## _**For the year ended 31 March 2022**_
## **ACHIEVEMENTS AND PERFORMANCE (Continued)**
## **Summary of the main achievements of the charity during the year (Cont.)**
We continued with our international links and investment in the training of people. Over the past year, we maintained our connections with churches in Sweden, Columbia, Germany, and the USA. This was through conference attendance and training activities. Investment in our Life Languages (LL) Certified trainers continues to provide opportunities to train church members, people from other churches and organisations in the UK and overseas, to understand their communication styles. LL identifies a person’s preferred way of communicating and helps people to improve inter-personal communications between individuals, spouses, and team members. We are grateful that this has been a great tool in day-to-day life that has been appreciated by many.
To sustain the effectiveness of our online and hybrid activities, we made further investments in IT and multi-media hardware and software, and continued our subscriptions to services such as Stream Yard, Zoom, and Church Suite. We also carried out improvements and essential maintenance to the building and replaced the windows with triple-glazed aluminium-framed windows for more durability and energy efficiency. Plans for ongoing building maintenance and improvements, including the rewiring of the building, and replacement of the fire-alarm system, continue to be considered.
Alongside these developments we commenced negotiations to purchase the freehold of our land from the leaseholder, Newcastle City Council. We also commissioned a valuation survey of the land and engaged the services of a firm of commercial property surveyors to assist us in our negotiations with the Council.
The charity continues to retain the services of Pastors Clive and Sally Harding. We continued to employ a part-time (0.2FTE) cleaner, Bogusia Reca, a part-time (0.2FTE) Finance Assistant, Fungying Koshy, a part-time (0.4FTE) Media and Events Co-ordinator, Charis Doherty, and a parttime (0.2FTE) Office and Building Co-ordinator, Rosalyn Vinton.
In summary, we consider the year 2021-22 to have been a good year despite the challenges posed by the effects of the COVID-19 pandemic. The church ‘out-there’ and fundraising activities to support other worthy causes were particularly uplifting and impactful both to our members and affected beneficiaries at large. We continued to transform lives and provide a service to the community, development and consolidation of international links and further progress in making improvements to the building.
The Trustees are grateful both to God and to the generous giving of its members and volunteers who made this possible.
## **Financial Review**
The out-turn for the year is an unrestricted surplus of £20,033 (2021: Surplus £43,347).
The surplus will be added to Unrestricted Reserves, leaving a balance on Unrestricted Funds at 31 March 2022 of £383,079. Free Reserves, defined as total Unrestricted Reserves, excluding the value of tangible fixed assets, are £157,050.
The Trustees consider the financial performance of the charity to be satisfactory.
6
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE**
**TRUSTEES’ REPORT** _**For the year ended 31 March 2022**_
## **ACHIEVEMENTS AND PERFORMANCE (Continued)**
## **Financial Review (Cont.)**
We have continued to have a stable financial performance, with sufficient income being raised to cover all our expenditure. The inability to physically meet in the building for some parts of the year had a slight effect on weekly cash donations. But the regular and generous online giving of most members more than made up for this shortfall. Relatively less use of the building also resulted in less expenditure and, therefore, we had a net surplus of income over expenditure.
The surplus from the previous financial year was invested in some building improvements (e.g., replacement of windows) and ring-fenced for the purchase of the freehold of our land, while also ensuring that enough reserves were maintained in keeping with our reserves policy.
## **Investment Policy**
The charity currently invests surplus cash funds only via a variety of interest-bearing deposit accounts.
It holds different accounts in one bank to both maximize interest receivable and to, as far as practicable, hold funds within the financial compensation limit for each institution.
## **Reserves Policy**
The Trustees have reviewed the charity's needs for reserves in line with the guidance issued by the Charity Commission.
The Trustees aim to firstly hold a level of Unrestricted Reserves, excluding Tangible Fixed Assets, which enables the charity to have sufficient financial resources to meet various liabilities which would crystallise if IHC Newcastle were unable to continue operating.
At present, the Trustees estimate that the Unrestricted Reserves required for such purposes amount to approximately £30,000 (or two months of operating costs).
IHC Newcastle currently holds ‘free’ Unrestricted Reserves, excluding Tangible Fixed Assets, of £157,050 at 31 March 2022, providing a degree of additional contingency to ensure that the charity can run efficiently and meet the needs of the beneficiaries. £120,000of this amount has also been ring-fenced for the purchase of the freehold, building improvement and other projects which have been put on hold or delayed because of the Coronavirus pandemic.
This policy will be reviewed by the Trustees on an annual basis as part of the charity’s budgeting `processes.
## **Risk Management**
The Trustees of the charity regularly review the major governance, operational and financial risks which the charity faces as part of its annual business planning process and confirm that systems have been established to mitigate these risks.
7
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE**
## **TRUSTEES’ REPORT**
## _**For the year ended 31 March 2022**_
## **ACHIEVEMENTS AND PERFORMANCE (Continued)**
## **Risk Management (Cont.)**
IHC Newcastle has a risk management strategy in place which comprises:
- an ongoing review of the strategic risks the charity may face via the strategic plan
- the establishment of planned action by trustees, systems and procedures to mitigate risks identified
- the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
The Trustees are satisfied that appropriate financial systems and controls are in place.
The Trustees consider the key risks facing the charity currently to be:
- Inability to fully resume normal activities post pandemic
- Reduction in donations because of the cost-of-living crises, high inflation, and energy costs
- Increased operating costs because of hight energy costs
- An incident in respect of children or vulnerable adult
- Safety of attendees in building
The Trustees have managed the potential impact of these risks by ensuring that:
- Prudent budgets have been set for the next financial year
- The charity maintains a low cost-base
- Regular management accounts are provided, showing the performance against budget
- • Reserves policies have been adopted which provide an appropriate amount of uncommitted Reserves which will always enable the charity to meet all its liabilities even if income targets are not achieved
- A nominated child protection officer and policies are in place
- The charity is actively working to increase our base of support and donations
## **PLANS FOR FUTURE PERIODS**
IHC will continue its regular activities against the changing demands of a (hopefully) post-COVID-19 world and the current cost-of-living-crisis. These activities include discipleship and personal evangelism, small (city) group activities and outreach to the city of Newcastle upon Tyne and beyond. We will also continue with our ‘sent’ activities through City Groups following the results an evaluation of the implemented strategy, which was commenced towards the end of this current financial year.
Ongoing maintenance and further improvements will be made to the building to ensure the safety, wellbeing, and comfort of users, and we will explore the possibility of implementing other longstanding building projects where possible. In addition, we will continue with the negotiations to purchase the freehold on the land we currently lease from Newcastle City Council.
The Trustees will continue to review the staffing needs of IHC to ensure that there is optimum deployment of the right people to service the needs of IHC. Alongside staffing, we will also seek to further develop an effective pool of volunteers to support paid staff.
We are very grateful for the regular giving of IHC members, which is the main source of funds for all our activities. We look forward to seeing many more people become generous givers in the coming year.
8
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE**
## **TRUSTEES’ REPORT**
_**For the year ended 31 March 2022**_
## **RESPONSIBILITIES OF THE TRUSTEES**
The Trustees shall manage the business of the Charity and may exercise all the powers of the Charity unless restricted by the Charities Act or the constitution of the Charity.
The Trustees are responsible for the preparation of the financial statements for each financial year which show a true and fair view of the state of affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year.
In preparation of the financial statements the Trustees should follow best practice and:
1. Select suitable accounting policies and apply them.
2. Make judgements and exercises that are reasonable and prudent.
3. Prepare the financial statements on a going concern basis unless it is inappropriate to assume that the charity will continue on that basis.
The Trustees are responsible for maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charity.
The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005 by the Charities Commission England and Wales).
Signed on behalf of the Trustees
**John Musa Kamara Trustee**
## **25 August 2022**
9
## **INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS ON THE UNAUDITED ACCOUNTS OF INTERNATIONAL HARVEST CHURCH NEWCASTLE LIMITED FOR THE YEAR ENDED 31 MARCH 2022**
I hereby report to the Trustees/Members of International Harvest Church Newcastle (Charity Registration Number 1052178) on the accounts for the year ended 31 March 2022 set out on pages 11 to 20.
**Respective** The charity's Trustees are responsible for the preparation of the accounts. **responsibilities of** The charity’s Trustees consider that an audit is not required for this year **trustees and examiner** under section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed.
**Basis of independent** Having satisfied myself that the accounts of the Company are not required to **examiner’s statement** be audited and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000, your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountant in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the charity as required; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods or principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial reporting Standard applicable in the UK and Republic of Ireland (FRS102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **25 August 2022**
## **Pete O’Hara, FCA, Chartered Accountant**
4 Stoneyhurst Road West, Gosforth, Newcastle upon Tyne NE3 1PG
10
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE YEAR ENDED 31 MARCH 2022**_
|**Note**
**Income**
Income from Investments
2
Donations & Legacies
3
Income from Charitable Activities
4
**Total Income**
**Expenditure**
Cost of Raising Funds
5
Expenditure on Charitable
Activities
6
**Total Expenditure**
**Net Income/(Expenditure)**
7
Funds brought forward
**Funds carried forward**
13, 14|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2022**
**Total**
**2021**
**£**
**£**
**£**
**£**
20
-
20
62
241,297
22,151
263,448
264,527
6,799
-
6,799
7,287|
|---|---|
||**248,116**
**22,151**
**270,267**
**271,876**
3,557
-
3,557
1,915
224,526
11,679
236,205
226,614|
||**228,083**
**11,679**
**239,762**
**228,529**|
||**20,033**
**10,472**
**30,505**
**43,347**
363,046
-
363,046
319,699|
||**£383,079**
**£10,472**
**£393,551 **
**£363,046**|
The notes on pages 13 to 20 form part of the financial statements.
All of the activities of the company are classed as continuing.
The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.
11
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE STATEMENT OF FINANCIAL POSITION/BALANCE SHEET**
## _**AS AT 31 MARCH 2022**_
|**Notes**
**Fixed Assets**
Tangible Fixed Assets
9
**Current Assets**
Debtors
10
Cash At Bank & In Hand
**Creditors – Amounts Falling Due Within 1 Year**
11
Net Current Assets/(Liabilities)
**Total Net Assets**
12
**Represented by:**
Unrestricted Reserves
12, 13
Restricted Reserves
12, 13|**2022**
**2021**
**£**
**£**
226,029
218,165
5,313
12,617
166,375
136,042|
|---|---|
||171,688
148,659
(4,166)
(3,778)|
||167,522
144,881|
||**£393,551**
**£363,046**|
||383,079
363,046
10,472
-|
||**£393,551**
**£363,046**|
The notes on pages 13 to 20 form part of the financial statements.
## **These financial statements were approved and signed by a Member of the Board of Trustees on 25 August 2022.**
## **John Musa Kamara Trustee**
12
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE NOTES TO THE ACCOUNTS**
_**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1. Accounting Policies**
## **Basis of Preparation**
These financial statements have been prepared in compliance with FRS 102, The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Taxation Status**
IHC Newcastle is a Charity registered under the 1960 Charities Act and is accorded exemption from liability to taxation on its income under S505 Income and Corporation Taxes Act 1988.
## **Going Concern**
There are no material uncertainties about the charity's ability to continue.
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## **Cash Flow Statement**
The Directors have taken advantage of the provisions of the Financial Reporting Standard Number 1, which exempts small entities from the need to prepare a cash flow statement.
## **Fund Accounting**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the purposes of the charity.
Designated funds are unrestricted funds earmarked by the trustees for specific purposes.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor.
13
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE NOTES TO THE ACCOUNTS**
_**FOR THE YEAR ENDED 31 MARCH 2022**_
**1. Accounting Policies (Continued)**
## **Income**
All income is included in the statement of financial activities when the charity is entitled to the income, any performance related conditions attached have been met or are fully within the control of the charity, the income is considered probable and the amount can be quantified with reasonable accuracy.
The following specific policies are applied to particular categories of income:
- Donations and legacy income is received by way of donations, legacies, grants and gifts and is included in full in the Statement of Financial Activities when receivable. Where legacies have been notified to the charity but the criteria for income recognition have not been met, the legacy is treated as a contingent asset and disclosed if material.
- Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
- Investment income is included when receivable.
- Income from charitable trading activity is accounted for when earned.
- Other income is accounted for when receivable.
## **Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
- Costs of raising funds comprise the costs associated with attracting donations, grants and legacies and the costs of trading for fundraising purposes.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
- Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
## **Irrecoverable VAT**
All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
## **Operating Leases**
The charity classifies the lease of certain types of equipment as operating leases as the title to the equipment remains with the lessor. Rental charges are charged against income on a straight-line basis over the period of the lease.
14
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE NOTES TO THE ACCOUNTS**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **1. Accounting Policies (Continued)**
## **Tangible Fixed Assets and Depreciation**
Depreciation is provided on any fixed assets at rates calculated to write off the assets over their remaining useful lives as follows:
- Land & Buildings – 2% straight line
- Leasehold Property Improvements – 2% straight line
- Equipment - 20% straight line
A full year’s depreciation charge is applied in the year of acquisition and no charge is made in the year of disposal.
## **Impairment of Fixed Assets**
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
## **Financial Instruments**
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
## **2. Income from Investments**
|Interest on cash deposits|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**2022**
**£**
**2021**
**£**
20
-
20
62|
|---|---|
||**£20**
**£-**
**£20**
**£62**|
The 2021 total of £62 was solely attributable to Unrestricted Funds.
15
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE NOTES TO THE ACCOUNTS**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **3. Income from Grants, Donations & Legacies**
|Coronavirus Job Retention Scheme
External Organisation Support
G12 International Support
Footsteps Support
Uncovenanted Offerings
Deeds of Covenant and Gift Aid|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**2022**
**£**
**2021**
**£**
-
-
-
6,301
-
3,476
3,476
-
-
8,203
8,203
8,999
-
-
-
468
49,859
10,472
60,331
53,652
191,438
-
191,438
195,107|
|---|---|
||**£241,297**
**£22,151**
**£263,448**
**£264,527**|
Of the 2021 total of £264,527, £255,060 was attributable to Unrestricted Funds and £9,467 to Restricted Funds.
## **4. Income from Charitable Activities**
|Statutory Maternity Pay Refunded
Life Languages
Other Income|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**2022**
**£**
**2021**
**£**
-
-
-
5,354
6,770
-
6,770
1,933
29
-
29
-|
|---|---|
||**£6,799**
**£-**
**£6,799**
**£7,287**|
The 2021 total of £7,287 was solely attributable to Unrestricted Funds.
## **5. Expenditure on Raising Funds**
|Community Events
Life Languages
Encounters/Lifeclass
Conference Expenditure|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**2022**
**£**
**2021**
**£**
226
-
226
18
3,310
-
3,310
1,048
21
-
21
132
-
-
-
717|
|---|---|
||**£3,557**
**£-**
**£3,557**
**£1,915**|
The 2021 total of £1,915 was solely attributable to Unrestricted Funds.
16
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE**
## **NOTES TO THE ACCOUNTS**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **6. Expenditure on Charitable Activities**
|**Direct Activity Costs**
Religious Activities
External Organisation Support
G12 International Support
Pastors’ Fees
Pastors’ Expenses
Pastors’ Conference Attendance & Training
**Support Costs**
Staff Costs
Premises & Refurbishment Costs
General Office & Running Costs
**Governance Costs**
Independent Examiner’s Fees
Payroll Processing & Advice
Legal & Professional Fees|**Unrestricted**
**Funds**
**£**
**Restricted**
**Funds**
**£**
**Total**
**2022**
**£**
**Total**
**2021**
**£**
16,645
-
16,645
11,919
1,024
3,476
4,500
22,346
8,203
30,549
29,098
89,554
-
89,554
88,667
3,036
-
3,036
3,515
934
-
934
123
25,050
-
25,050
28,229
27,365
-
27,365
21,822
31,703
-
31,703
34,085
2,340
-
2,340
2,802
1,554
-
1,554
-
2,975
-
2,975
6,354|
|---|---|
||**£224,526**
**£11,679**
**£236,205 £226,614**|
Of the 2021 total of £226,614, £217,147 was attributable to Unrestricted Funds and £9,467 to Restricted Funds.
## **7. Net Income/(Expenditure)**
|Net income/(expenditure) is stated after charging/(crediting):
Depreciation of owned Fixed Assets
Independent Examiner’s Fees – current year
**8.**
**Staff Costs & Trustees’ Remuneration**
Gross Salary Costs
Employer’s National Insurance
Employer’s Pension Contributions|**2022**
**£**
**2021**
**£**
19,938
23,545
2,340
2,340
**2022**
**£**
**2021**
**£**
24,851
28,009
-
-
199
220|
|---|---|
||**£25,050**
**£28,229**|
17
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE NOTES TO THE ACCOUNTS**
## _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **8. Staff Costs & Trustees’ Remuneration (Cont.)**
No employee received remuneration of more than £60,000 during the year (2021 - Nil).
The average number of staff employed during the year, calculated as full-time equivalents, was as follows:
||**2022**|**2021**|
|---|---|---|
||**No**|**No**|
|Administrative Support|1|1|
Key Management Personnel, defined as the Pastors, received remuneration of £89,554 (2021: £88,667) in the year.
In accordance with the charity’s constitution, Mr C Harding, a Trustee of the charity during the year, was paid £46,683 (2021: £46,221) for his professional services, provided to the church on an arms-length basis.
No other remuneration has been paid to any Trustees in the year.
No travel and subsistence expenses (2021: £Nil) were reimbursed to Trustees in respect of their attendance at meetings of the charity.
## **9. Tangible Fixed Assets**
|**Cost**
At 1 April 2021
Additions in year
Disposals
At 31 March 2022
**Accumulated Depreciation**
At 1 April 2021
Charge for year
Disposals
At 31 March 2022
**Net Book Value**
At 31 March 2022
At 1 April 2021
|**Land &**
**Buildings**
**£**
**Office, ICT**
**& Musical**
**Equipment**
**£**
**Leasehold**
**Property**
**Improvements**
**£**
**Total**
**Fixed**
**Assets**
**£**
374,445
88,091
127,972
590,508
-
3,520
24,550
28,070
-
(29,194)
-
(29,194)|
|---|---|
||374,445
62,417
152,522
589,384
272,372
73,400
26,571
372,343
7,488
9,342
3,108
19,938
-
(28,926)
-
(28,926)|
||279,860
53,816
29,679
363,355
**£94,585**
**£8,601**
**£122,843**
**£226,029**|
||£102,073
£14,691
£101,401
£218,165|
18
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE**
## **NOTES TO THE ACCOUNTS**
_**FOR THE YEAR ENDED 31 MARCH 2022**_
|**10.**
**Debtors**
Prepayments
Accrued Income – Gift Aid
Other Taxes & Social Security Costs
**11.**
**Creditors – Amounts Falling Due Within 1 Year**
Accruals
Other Taxes & Social Security Costs
Other Creditors|**2022**
**£**
**2021**
**£**
1,072
2,184
4,241
5,891
-
4,542|
|---|---|
||**£5,313**
**£12,617**
**2022**
**£**
**2021**
**£**
3,298
2,488
122
-
746
1,290|
||**£4,166**
**£3,778**|
## **12. Analysis of Net Assets between Funds**
|||**Unrestricted**|
**Restricted**|**Total**|
**Total**|
|---|---|---|---|---|---|
|||**Funds**|
**Funds**|**2022**|**2021**|
|||**£**|
**£**|**£**|**£**|
||Fixed Assets|226,029|
-|226,029|218,165|
||Debtors|5,313|
-|5,313|12,617|
||Cash at Bank and In Hand|155,903|
10,472|166,375|136,042|
||Creditors – Amounts Due Within 1 Year|(4,166)|
-|(4,166)|(3,778)|
|||**383,079**|
**£10,472**|**£393,551**|**£363,046**|
|**13.**|**Analysis of Charitable Funds**|||||
||**Fund at 1 April**||**Incoming**|**Resources**|**Fund at 31**|
|||**2021**|**Resources**|**Expended**|**March 2022**|
|||**£**|**in Year**|**in Year**|**£**|
||||**£**|**£**||
||**Unrestricted Funds**|||||
||Charity General Fund|**363,046**|**248,116**|**(228,083)**|**383,079**|
||**Restricted Funds**|||||
||External Organisation Support|-|3,476|(3,476)|-|
||G12 International Support|-|8,203|(8,203)|-|
||Giving for the Ground|-|10,472|-|10,472|
|||**-**|**22,151**|**(11,679)**|**10,472**|
||**Total Funds**|**£363,046**|**£270,267**|**£(239,762)**|**£393,551**|
19
## **INTERNATIONAL HARVEST CHURCH NEWCASTLE**
**NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 MARCH 2022**_
## **13. Analysis of Charitable Funds (Cont.)**
**Name of Restricted Fund Description, Nature & Purpose of the Restricted Fund** External Organisation Support Donations received towards support for Look Around, Open Doors and Food Banks G12 International Support Donations received towards the cost of G12 support in India and Ukraine Giving for the Ground Donations received towards the cost of purchasing the freehold of IHC’s current leasehold property
## **14. Taxation**
The company is a registered charity and no provision is considered necessary for taxation.
## **15. Related Party Transactions**
During the year a total of £102,416 (2021 £102,689) was paid to related parties.
Persons receiving payment in the year were:
- Mr C Harding, a Trustee of the charity, was paid for his professional services as Pastor of the Church;
- Mrs S Harding, wife of Trustee Mr C Harding, was paid for her professional services as Pastor of the Church;
- Mrs C Doherty, wife of Trustee Mr B Doherty and daughter of Trustee Mr C Harding, was paid for her services to the church.
## **16. Financial Commitments**
No material financial commitments have been made in respect of future financial periods.
## **17. Operating Lease Commitments**
At 31 March 2022 the charity had total commitments under non-cancellable operating leases as follows
|**Category**
Operating leases which expire:
Within two to five years|**Equipment**
**£**
2,728|
|---|---|
20