2021-10-31-accounts

CHARITY REGISTRATION NUMBER: 1059112

HIS GRACE WORLD OUTREACH TRUST Unaudited Financial Statements

31 October 2021

HIS GRACE WORLD OUTREACH TRUST

Financial Statements

Year ended 31 October 2021

	Page
Trustees' annual report	1
Independent examiner's report to the trustees	6
Statement of financial activities	7
Statement of financial position	8
Notes to the financial statements	9

HIS GRACE WORLD OUTREACH TRUST

Trustees' Annual Report

Year ended 31 October 2021

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 October 2021.

Reference and administrative details

Registered charity name HIS GRACE WORLD OUTREACH TRUST Charity registration number 1059112 Principal office 75 East Hill Dartford DA1 1SN

The trustees

Rev. Paul Fadeyi Mr E A Onifade Rev Joe Nwokoye Mrs M O Adeyemi Ms Omowunmi Morohundiya Mrs Joyce Adejoke Fadeyi Accountants HP Osalor's Ltd Chartered Certified Accountants 6 Greenwich Quay Clarence Road London SE8 3EY

Structure, governance and management

Governing Document

The charity is governed by deed of trust dated 8 October 1996.It is registered as a charity with the Charity Commission on 14 November 2006.

Appointment of Trustees

A new trustee may be appointed by a resolution of the Trustees passed at a meeting of the Trustees at which there is a majority of the Trustees present and such resolution shall be recorded in the minutes and signed by the new Trustee and by the chairman of the meeting and such records shall be conclusive evidence of his appointment.

Trustee Induction and Training

New trustees undergo an orientation day to brief them on their legal obligations under charity law,the committee and decision processes and the recent financial performance of the charity.Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their duties.

Organisation

The board of trustees consisting of 6 members, who meet half yearly, administer the charity. There are sub-committees covering spiritual development,membership and welfare,finance and administration.The finance and administration sub-committee is charged with the management of the day to day operations of the charity

1

HIS GRACE WORLD OUTREACH TRUST

Trustees' Annual Report (continued)

Year ended 31 October 2021

Objectives and activities

The main objects of the charity is to advance the Christian faith in London and in such other parts of the United Kingdom or the world as the trustees may from time to think fit.

In planning our activities for the year we kept in mind the Charity Commission's guidance on public benefit. The focus of our activities continued to be that of worshiping God and furtherance of the gospel of our Lord Jesus Christ and the general advancement of the Christian faith. This benefits the general public through relieving people who are in conditions of need or hardship or who are aged or sick and to advance education in accordance with Christian principles in London and in such other parts of the United Kingdom or the world as the trustees may from time to time think fit and also to promote and fulfil such other charitable purposes beneficial to the community in London and in such other parts of the United Kingdom or the world as the trustees may from time to time think fit.

2

HIS GRACE WORLD OUTREACH TRUST

Trustees' Annual Report (continued)

Year ended 31 October 2021

Achievements and performance

The accounting year ending 2021 was a very productive and fruitful year as things began to gradually pick up from all the challenges that came along with the pandemic. The supporting role all our faithful church members, partners and friends of the ministry played to keep us standing and focused with regards to maintaining the objective of this Trust which is to advance the Christian faith in London has been a huge blessing.

The gradual lifting of some of the restrictions associated with the pandemic facilitated a slight increase in the number of people who were able to physically attend our midweek and Sunday morning services in the church building in compliance with the COVID-19 regulations. Although we still had a sizeable number of people who continue to connect with the church programs through the social media platforms.

The investments we made in the purchase of new cameras and associated equipment's for our Television broadcast has helped to improve the quality of our production and presentation of the messages from the main auditorium. As a result, there was a sharp increase in the number of people logging online to join us for our Bible study and Sunday services. We are grateful for all the positive feedbacks we continue to receive while we strive to keep on improving.

There are not enough words to express our profound appreciation for all the steadfast financial support we received from all our faithful members and partners of the ministry despite the pandemic. This has helped us to meet all our monthly financial obligations at all levels while gradually building a good reserve fund to take care of future projects.

Through the tremendous inputs from all our lay Pastors and supportive volunteers, we have been able to continue in our efforts to maintain stronger emphasis on the teaching of God's word through our YouTube channel during our Friday Bible study and Worship service on Sunday. All their inputs are highly appreciated.

As a ministry that believes in the law of sowing and reaping, we are eternally grateful to God for the opportunity to also make financial donations to support other ministries and missions endeavour geared towards helping people in their times of need. This we intend to continue to do by the special grace of God and the support of our partners in progress.

In addition, during this accounting period, our sponsored Television program on one of the SKY television channels continue to be a blessing to many viewers through the Christian messages of faith and hope we present. The weekly regular broadcast on our YouTube channel on Friday and Sunday services is also helping us to fulfil the primary goal of our ministry.

It is worth mentioning that the external redecoration of our main church building was successfully carried out without any major incident. Other basic internal decorations will follow very soon.

Finally, the Trustees are once again grateful for all the church members, friends and partners of the ministry who gave financial and moral support through their regular donations for the execution of our programs, mission work. May God bless and reward their generosity.

3

HIS GRACE WORLD OUTREACH TRUST

Trustees' Annual Report (continued)

Year ended 31 October 2021

Financial review

Despite the Corona pandemic causing the suspension of face to face attendance to services for about half the period under review, total incoming resources increased slightly by 4.66% to £308,186 (2020 - £294,455). The principal funding sources continued to be tithes and offerings from members.

The Total Outgoing resources however increased by 12.46% to £297,091 (2020 - £264,171).The main cause of the increase in outgoing resources is due to substantial expenditure of about £31,530 on renovation and repair work to the church building and the purchases and intallation of technical equipment relating to our audio and visual production.

This thus resulted in a net incoming resources of £11,095 (2020 - £30,284).

Plans for future periods

Our future plans includes:

1. Continue to build on the success of 2021 with regards to the advancement of Christian faith through more social media coverage. 2. To continue to train and develop more Young Adults to take up leadership roles as part of our succession plan. 3. To place greater emphasis on the development and upgrading of our children's church. 4. To Continue to explore more opportunities to present the good news of the gospel within and outside the UK

Trustees' responsibilities statement

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 charity trustees to prepare financial statements for each 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 period.

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

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the applicable Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, 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.

4

HIS GRACE WORLD OUTREACH TRUST

Trustees' Annual Report (continued)

Year ended 31 October 2021

The trustees' annual report was approved on 22 August 2022 and signed on behalf of the board of trustees by:

Mrs M O Adeyemi Trustee

5

HIS GRACE WORLD OUTREACH TRUST

Independent Examiner's Report to the Trustees of HIS GRACE WORLD OUTREACH TRUST

Year ended 31 October 2021

I report to the trustees on my examination of the financial statements of HIS GRACE WORLD OUTREACH TRUST ('the charity') for the year ended 31 October 2021.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 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 Accountants in England and Wales (ICAEW), which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

2. the financial statements do not accord with those records; or

3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.

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.

Harry Koranteng FCCA,ACMA

Independent Examiner Chartered Certified Accountant 6 Greenwich Quay Clarence Road London SE8 3EY

22 August 2022

6

HIS GRACE WORLD OUTREACH TRUST

Statement of Financial Activities

Year ended 31 October 2021

		2021	2021	2020
		Unrestricted
		funds	Total funds	Total funds
	Note	£	£	£
Income and endowments
Donations and legacies	4	266,340	266,340	261,151
Investment income	5	66	66	181
Other income	6	41,780	41,780	33,123
				
Total income		308,186	308,186	294,455
				
Expenditure
Expenditure on raising funds:
Costs of raising donations and legacies	7	9,794	9,794	10,212
Expenditure on charitable activities	8,9	285,109	285,109	252,202
Other expenditure	10	2,188	2,188	1,757
				
Total expenditure		297,091	297,091	264,171
				
				
Net income and net movement in funds		11,095	11,095	30,284
				
Reconciliation of funds
Total funds brought forward		515,975	515,975	485,691
				
Total funds carried forward		527,070	527,070	515,975
				

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 9 to 16 form part of these financial statements.

7

HIS GRACE WORLD OUTREACH TRUST

Statement of Financial Position

31 October 2021

		2021	2020
	Note	£	£
Fixed assets
Tangible fixed assets	15	654,816	664,889
Current assets
Debtors	16	13,323	15,813
Cash at bank and in hand		38,681	40,853
			
		52,004	56,666
Creditors:amounts falling due within one year	17	15,135	17,000
			
Net current assets		36,869	39,666
			
Total assets less current liabilities		691,685	704,555
Creditors:amounts falling due after more than one
year	18	(164,615)	(188,580)
			
Net assets		527,070	515,975
			
Funds of the charity
Unrestricted funds		527,070	515,975
			
Total charity funds	21	527,070	515,975
			

These financial statements were approved by the board of trustees and authorised for issue on 22 August 2022, and are signed on behalf of the board by:

Mrs M O Adeyemi Trustee

The notes on pages 9 to 16 form part of these financial statements.

8

HIS GRACE WORLD OUTREACH TRUST

Notes to the Financial Statements

Year ended 31 October 2021

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is The Place, 75 East Hill, Dartford, DA1 1RX.

2. Statement of compliance

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.

3. Accounting policies

Basis of preparation

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.

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 did not require management to make judgements, estimates and assumptions.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

9

HIS GRACE WORLD OUTREACH TRUST

Notes to the Financial Statements (continued)

Year ended 31 October 2021

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Operating leases

Rentals paid under operating leases are charged to the profit & loss account on straight line basis over the term of the lease.

Tangible assets

All fixed assets are initially recorded at cost.

10

HIS GRACE WORLD OUTREACH TRUST

Notes to the Financial Statements (continued)

Year ended 31 October 2021

3. Accounting policies (continued)

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold Property - 2% straight line Fixtures and Fittings - 25% reducing balance Motor Vehicle - 25% reducing balance Equipment - 25% reducing balance

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.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

11

HIS GRACE WORLD OUTREACH TRUST

Notes to the Financial Statements (continued)

Year ended 31 October 2021

4. Donations and legacies

		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Donations
	Donations - Tithes & Offerings	266,340	266,340	261,151	261,151
					
5.	Investment income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Bank interest receivable type	66	66	181	181
					
6.	Other income
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	HMRC Charity Gift Aid	41,780	41,780	33,123	33,123
					
7.	Costs of raising donations and legacies
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Costs of raising donations and legacies
	- Donations	9,794	9,794	10,212	10,212
					
8.	Expenditure on charitable activities	by fund type
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Repairs, Maintenance, Evangelism and
	Programs	45,242	45,242	16,042	16,042
	Telephone,Printing,Postage and
	Stationary	8,009	8,009	7,603	7,603
	Motor Vehicle Expenses,Leasing and
	Travel	11,125	11,125	8,487	8,487
	Pension, Hire of Equipment and
	Insurance	15,016	15,016	12,994	12,994
	Rates, Water, Light and Heat	8,951	8,951	9,012	9,012
	Student Loans ,Wages and Salaries	79,648	79,648	82,688	82,688
	Support costs	117,118	117,118	115,376	115,376
					
		285,109	285,109	252,202	252,202
					

12

HIS GRACE WORLD OUTREACH TRUST

Notes to the Financial Statements (continued)

Year ended 31 October 2021

9. Expenditure on charitable activities by activity type

		Activities
		undertaken		Total funds	Total fund
		directly	Support costs	2021	2020
		£	£	£	£
	Repairs, Maintenance, Evangelism and
	Programs	45,242	42,782	88,024	60,504
	Telephone,Printing,Postage and
	Stationary	8,009	–	8,009	7,603
	Motor Vehicle Expenses,Leasing and
	Travel	11,125	–	11,125	8,487
	Pension, Hire of Equipment and
	Insurance	15,016	–	15,016	12,994
	Rates, Water, Light and Heat	8,951	–	8,951	9,012
	Honorarium	–	4,900	4,900	2,346
	Youth and Children Ministry	–	–	–	800
	Television and Advertising	–	20,794	20,794	19,881
	Books and Tapes	–	–	–	132
	Student Loans ,Wages and Salaries	79,648	5,789	85,437	87,012
	Governance costs	–	42,853	42,853	43,431
					
		167,991	117,118	285,109	252,202
					
10.	Other expenditure
		Unrestricted	Total Funds	Unrestricted	Total Funds
		Funds	2021	Funds	2020
		£	£	£	£
	Office expenses	2,188	2,188	1,757	1,757
					
11.	Net income
	Net income is stated after charging/(crediting):
				2021	2020
				£	£
	Depreciation of tangible fixed assets			25,586	23,501
	Operating lease rentals			2,760	3,173
					
12.	Independent examination fees
				2021	2020
				£	£
	Fees payable to the independent examiner for:
	Independent examination of the financial statements			3,000	3,000
					
13.	Staff costs

13

HIS GRACE WORLD OUTREACH TRUST

Notes to the Financial Statements (continued)

Year ended 31 October 2021

13. Staff costs (continued)

The average head count of employees during the year was 3 (2020: 3). The average number of fulltime equivalent employees during the year is analysed as follows:

Number of staff

2021 2020 No. No. 3 3  

No employee received employee benefits of more than £60,000 during the year (2020: Nil).

14. Trustee remuneration and expenses

Included in the wages and salaries was remuneration of £35101.56 paid to Rev Paul Fadeyi and £15,911.79 paid to Mrs Joyce Fadeyi respectively.

15. Tangible fixed assets

	Freehold	Fixtures and	Motor
	property	fittings	vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 November 2020	724,859	25,027	81,552	165,463	996,901
Additions	–	5,542	–	9,971	15,513
					
At 31 October 2021	724,859	30,569	81,552	175,434	1,012,414
					
Depreciation
At 1 November 2020	86,983	24,878	57,559	162,592	332,012
Charge for the year	14,497	1,423	5,998	3,668	25,586
					
At 31 October 2021	101,480	26,301	63,557	166,260	357,598
					
Carrying amount
At 31 October 2021	623,379	4,268	17,995	9,174	654,816
					
At 31 October 2020	637,876	149	23,993	2,871	664,889
					

16. Debtors

	2021	2020
	£	£
Other debtors	13,323	15,813
		
Creditors: amounts falling due within one year
	2021	2020
	£	£
Bank loans and overdrafts	1,360	466
Trade creditors	259	–
Accruals and deferred income	3,000	6,000
Social security and other taxes	1,774	1,792
Obligations under finance leases and hire purchase contracts	8,422	8,422
Other creditors	320	320
		
	15,135	17,000
		

17. Creditors: amounts falling due within one year

14

HIS GRACE WORLD OUTREACH TRUST

Notes to the Financial Statements (continued)

Year ended 31 October 2021

18. Creditors: amounts falling due after more than one year

	2021	2020
	£	£
Bank loans and overdrafts	153,693	169,232
Obligations under finance leases and hire purchase contracts	10,922	19,348
		
	164,615	188,580
		

19. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

follows:
	2021	2020
	£	£
Not later than 1 year	8,422	8,422
Later than 1 year and not later than 5 years	10,922	19,348
		
	19,344	27,770
		

20. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £4,154 (2020: £1,443).

21. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
	At			At
	1 November 2			31 October 2
	020	Income	Expenditure	021
	£	£	£	£
General funds	515,975	308,186	(297,091)	527,070
				
	At			At
	1 November 2		31 October 20
	019	Income	Expenditure	20
	£	£	£	£
General funds	485,691	294,455	(264,171)	515,975
				
Restricted funds
	At			At
	1 November 2			31 October 2
	020	Income	Expenditure	021
	£	£	£	£
	At			At
	1 November 2		31 October 20
	019	Income	Expenditure	20
	£	£	£	£

15

HIS GRACE WORLD OUTREACH TRUST

Notes to the Financial Statements (continued)

Year ended 31 October 2021

22. Analysis of net assets between funds

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2021
	£	£	£
Tangible fixed assets	–	654,816	654,816
Current assets	52,004	–	52,004
Creditors less than 1 year	(15,135)	–	(15,135)
Creditors greater than 1 year	–	(164,615)	(164,615)
			
Net assets	36,869	490,201	527,070
			
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2020
	£	£	£
Tangible fixed assets	–	664,889	664,889
Current assets	56,666	–	56,666
Creditors less than 1 year	(17,000)	–	(17,000)
Creditors greater than 1 year	–	(188,580)	(188,580)
			
Net assets	39,666	476,309	515,975
			

23. Related parties

There were no related party transactions other than that disclosed in Note 14.

16