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2022-12-31-accounts

Christ Embassy

Trustees Report and Financial Statements

for the year ended 31 December 2022

Registered Charity Number 1059247

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

CONTENTS

Page
Charity information 1
Trustees’ report 2
Independent auditors’ report 7
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Accounting policies 13
Notes to the financial statements 16

CHRIST EMBASSY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHARITY INFORMATION

Trustees Pastor Gabriel Adesina
Mr Ikemefuna Oluwarotimi Nwankpele
Mrs Tolulope Moradeke Osuntubo
Dr Victor Uba
Principal office 45 Thames Road, Barking, London, IG11 0HQ
Registered charity number 1059247
Chairman of the board of Trustees Pastor Gabriel Adesina
Senior Management Pastor Elizabeth Akinwolemiwa
Pastor Obi Chiemeka
Pastor Tayo Ojo
Pastor Kemi Adesina
Auditor Blue Spire Limited
Cawley Priory
South Pallant
Chichester
West Sussex
PO19 1SY
Bankers HSBC Bank Plc
Barclays Bank Plc
Lloyds Bank Plc
Solicitors Palmers Solicitors
Ascension Chambers, Fleming Road
Chafford Hundred
Grays RM16 6HH

Page 1

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

TRUSTEES’ REPORT

The Trustees present their annual report together with the audited financial statements of Christ Embassy (the ministry and the group) for the year ended 31 December 2022. The Trustees confirm that the annual report and financial statements of the ministry and the charity comply with the current statutory requirements, the requirements of the ministry and the group's governing document and the provisions of the Charities SORP (FRS102).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Christ Embassy was established by Trust Deed on 23rd October 1996. The ministry was registered as a Charity on 19th November 1996 with registration number 1059247.

Method of appointment or election of Trustees

New Trustees may be appointed by a resolution of the Trustees usually dependent on the skills and experience needed by the Charity. There must be a minimum of three Trustees and a minority of the Trustees may be remunerated if necessary.

Policies adopted for the induction and training of Trustees

The Trustees meet quarterly to review their legal obligations under charity law, the growth of the Ministry and its financial performance. All new Trustees receive an induction and training is provided for all Trustees on an ad hoc basis.

Organisational structure and decision making

The churches are structured into zones with a zonal Pastor heading groups of Churches. The Zones have Zonal Managers who are responsible for the administration of the churches within their Zone and executing decisions made by the Trustees. As an example, invoices are raised and recommended for approval by the pastors and coordinators in charge of each church branch of the Charity. This is then passed to the Zonal Pastors and then to The Trustees, who give final approval before payments are made.

The Board of Trustees oversees all the church chapters and their roles within the guidelines of the Trust Deed. The Board of Trustees are mandated to meet at least twice a year to review the progress of the Charity and set policies and plans for the future. In some instances, at least three of the Trustees meet to take urgent decisions necessary for the smooth running of the Charity.

Subsidiary and related party relationships

The subsidiary ceased trading in November 2016 and procedures for winding up of the company began.

Christ Embassy charity is part of Christ Embassy Worldwide International. The relationship between the two entities is spiritual for guidance purposes.

Arrangements for setting pay

Remuneration of key management personnel is proposed by zonal pastors, based on local remuneration levels for similar roles, and approved by the trustees.

Risk management

The major activities and issues of the Ministry are subject to review at the Trustees’ meetings. The Ministry faces various risks to which the Trustees have systems in place to mitigate:

Page 2

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

TRUSTEES’ REPORT

OBJECTIVES AND ACTIVITIES

The objectives of the Trust are:

The Ministry has the general aim of contributing to the quality of life of the people of the England and Wales and other parts of the United Kingdom and the rest of the world according to the Christian faith as specified in its statement of beliefs.

Strategies for achieving objectives

The strategies employed to achieve the Ministry’s objectives in line with public benefit are as follows:

Activities in furtherance of objectives and for public benefit

All chapters were involved in holding special outreach activities in their locations. Through these activities, more people joined the Ministry and thus the ability to enhance the work of building a better world continued to increase throughout the year. We were able to reach many more people in diverse locations through our online platforms.The Ministry continued to render help to people in diverse kinds of hardship and kept to its earlier adopted grant making policy which includes the following:

Our short-term objectives are success in bringing enlightenment of the gospel to many, reaching more communities both in and outside of the United Kingdom, growing our established churches and providing more services/rendering help to the community with various initiatives like day of service.

Our Long-term objective to see to the Christianization of the society at large with an increased uptake of Christian values, evidenced by many more people coming to the knowledge of Christ and attending church services.

Page 3

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

TRUSTEES’ REPORT

The Trustees confirm that they have had due regard to the guidance issued by the Charity Commission on public benefit when planning their objectives and activities.

Criteria/Measures to assess success

Some of the measures to assess our success are new contacts made, souls that received Christ, materials distributed, increased participation in all existing churches resulting in the birth of new churches.

Grant making policies

A grant making policy is in place and covers two streams (Ministry in Britain Grant Stream and Ministry Overseas Grant Stream). The Grant committee is currently made up of the Trustees and grants are reviewed by the Trustees periodically to ensure that they adequately meet the objectives of the Charity.

A number of grants payable in the year 2022 were given in support of the Ministry’s missionary campaigns held around the world, and also offering pastoral care to members in various chapters within the Charity. In addition, spiritual guidance and counsel were given where such needs arose.

Volunteers

The Ministry relies heavily on unpaid voluntary workers to undertake a wide range of its activities. These activities include pastoring, church maintenance, running the book/tape stands, organising special programs, and assisting in administrative duties amongst many others. All unpaid volunteers are members of Christ Embassy. Each volunteer works an average of 10 hours per week.

ACHIEVEMENTS AND PERFORMANCE

The Charity continues to ensure the adherehence to it’s objective of providing a place of worship for fellowship through its strategy of regular weekly meetings to provide a conducive atmosphere for members to grow spiritually whilst also offering the opportunity to invite first timers and encourage them to become members.The Charity used special teaching programs placed on air through the use of television slots on Loveworld Television. The objective of the Charity to reach maximum numbers of people within the United Kingdom and the rest of the world was hugely achieved via the television medium as we continued to take the message of the gospel into homes. Ministry materials such as the daily devotional titled Rhapsody of Realities, Healing to the Nations Magazines, Now that you are born again in e- formats have been invaluable in reaching many and their free distribution intensified to help in bringing faith and hope to many around the world. These helped to further advance the Christian faith as enunciated in the trust deed of the Charity. Gifts of food and clothing were also sent to hostels and the homeless.

The charity continues to plant additional online home cell groups and outreach fellowships. The planting of new home cell groups and outreach fellowships enables the charity to fulfil its objective of providing places of worship for fellowship of evangelical Christians and a base from which they can advance the Christian faith by proclaiming the good news of salvation of Jesus Christ, to their surrounding areas and beyond.

The charity grew in membership of between 3 to 5% in 2022

Fundraising activities/Income generation

All the funds required for the support of all the activities of the Charity were raised through the principles of prayer and direct giving of members. Fund raising was exclusively carried out by special committees who are members of ‑ the Ministry on a non remuneration basis and no external consultant or body was employed for the purpose of fund raising throughout 2022.

Page 4

CHRIST EMBASSY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ REPORT

FINANCIAL REVIEW

Total income amounted to £7,432,343 and total expenditure was £8,157,074 giving total net expenditure of £724,731.

Impact of significant events

The Charity’s finances have been significantly affected by the surge in venue hire costs resulting in increased rent and rates of £256,919. This surge also affected travel cost to the tune of £100,000, Event cost increase of about £180,000.

Reserves policy

The charity’s policy is to build and maintain sufficient reserves to cover 3-4 months of recurrent expenditure considered to be approximately £1.1m.

At the balance sheet date the group’s reserves, having taken into account restricted funds, fixed assets and the revaluation reserve were a deficit of £1,752,524 .

In order to recover the deficit on reserves the trustees are considering the use and disposal of fixed assets, in particular buildings not in current use, together with the use of restricted funds for the purposes they have been received.

PLANS FOR THE FUTURE

As part of our objectives of advancing the Christian faith in the UK and around the world, we intend to continue to strengthen our existing churches and outreach fellowships. This will be done by the establishing of Home cell groups and regular trainings for leaders through seminars and conferences

We will continue to grow and increase our reach outside the borders of the United Kingdom through the use of various online platforms. One of such platforms is the use of virtual churches where people from all around the world can participate in our church services and teachings. We already established several online platforms for our churches and the pandemic of 2020/21 enabled us to reach even many more in their homes with the gospel.

The daily devotional, ‘Rhapsody of Realities’ has been of great blessings to many all around the world and we will be sponsoring both hard copies and e-copies of the Rhapsodies. The E-Copies will be made available for free download in strategic countries to aid the propagation of the gospel of Christ.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & 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 period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper 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

Page 5

CHRIST EMBASSY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ REPORT

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.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report was approved by the Trustees on 30 October 2023 and signed on their behalf by:

………………………………………….. Trustee

Page 6

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

INDEPENDENT AUDITOR’S REPORT

Independent Auditor’s Report to the Trustees of Christ Embassy

Opinion

We have audited the financial statements of Christ Embassy (the ‘charity’) for the year ended 31 December 2022 which comprise of the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including 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 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 trustees 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, except to the extent otherwise explicitly stated in our report, 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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement , 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 liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 7

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

TRUSTEES’ REPORT

Auditor 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 regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Page 8

CHRIST EMBASSY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

TRUSTEES’ REPORT

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Cawley Priory South Pallant Chichester West Sussex Blue Spire Limited, Statutory Auditor PO19 1SY 30 October 2023 Date

Blue Spire Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 9

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

STATEMENT OF FINANCIAL ACTIVITIES

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
1
Subsidiary assets released
Other trading activities
2
Investments
3
Charitable activities
4
Other income
Total
EXPENDITURE ON:
Raising funds
5
Charitable activities
6
Total
Net Income/(expenditure)
Transfers between funds
18
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets and investment property
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
18
Total funds carried forward
18		 Unrestricted
Funds
£
4,721,174
-
127,400
131
1,011
80
4,849,796
16,492
4,533,206
4,549,698
300,098
(371,214)
(71,116)
-
(71,116)
8,748,596
8,677,480		 Restricted
Funds
£
2,582,547
-
-
-
-
-
2,582,547
-
3,607,377
3,607,377
(1,024,830)
371,214
(653,616)
-
(653,616)
1,795,758
1,142,142		 2022
Total
Funds
£
7,303,721
-
127,400
131
1,011
80
7,432,343
16,492
8,140,583
8,157,075
(724,732)
-
(724,732)
-
(724,732)
10,544,354
9,819,622		 2021
Total
Funds
£
7,707,375
-
130,000
22
666
-
7,838,063
8,565
7,743,570
7,752,135
85,928
-
85,928
1,450,000
1,535,928
9,008,426
10,544,354

The charity has no recognised gains or losses other than those dealt with in the statement of financial activities. All of the above results are derived from continuing activities.

Page 10

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

BALANCE SHEET AS AT 31 DECEMBER 2022

Note
FIXED ASSETS
Tangible assets
11
Investment property
12
CURRENT ASSETS
Assets held for sale
13
Debtors
14
Cash at hand and in bank
Total current assets
CURRENT LIABILITIES
Creditors: amounts falling due within one year
15
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after more than one year
16
Net assets/(liabilities)
THE FUNDS OF THE CHARITY
Restricted funds
18
Unrestricted funds
18
Total charity funds		 £
£
7,905,007
3,950,000
11,855,007
733,410
7,538
475,972
1,216,920
1,816,497
(599,577)
11,255,430
(1,435,808)
9,819,622
1,142,142
8,677,480
9,819,622
2022		 £
£
8,114,880
3,950,000
12,064,880
733,410
7,538
1,386,726
2,127,674
2,148,334
(20,660)
12,044,220
(1,499,866)
10,544,354
1,795,758
8,748,596
10,544,354
2021		 £
£
8,114,880
3,950,000
12,064,880
733,410
7,538
1,386,726
2,127,674
2,148,334
(20,660)
12,044,220
(1,499,866)
10,544,354
1,795,758
8,748,596
10,544,354
2021
12,044,220
(1,499,866)
10,544,354
1,795,758
8,748,596
10,544,354

The financial statements on pages 10 to 22 were approved and authorised for issue by the trustees on 30 October 2023 and signed on their behalf by:

………………………………………….

Trustee

Page 11

CHRIST EMBASSY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

STATEMENT OF CASH FLOWS

Note
£
£
Net cash flow from operating activities (see below)
(819,351)
Cash flow from investing activities
Interest received
131
Proceeds from sale of fixed assets
-
Transfer to assets held for sale
-
Purchase of fixed assets
(8,045)
Net cash flow from investing activities
(7,914)
Cash flows from financing activiites
Repayment of borrowings
(83,489)
(83,489)
Net increase/(decrease) in cash and cash equivalents
(910,754)
Cash and cash equivalents at 31 December 2021
1,386,726
Cash and cash equivalents at 31 December 2022
475,972
Cash and cash equivalents consist of:
Cash at bank and in hand
475,972
Cash and cash equivalents at 31 December 2022
475,972
Reconciliation of net income to net cash flow from operating activities
£
£
Net income for the year
(724,732)
Adjusted for:
Interest and dividends
(131)
Depreciation and impairment of tangible fixed assets
217,918
Profit on disposal of fixed assets
-
Decrease/(increase) in debtors
-
Increase/(decrease) in creditors
(312,406)
(94,619)
(819,351)
2022
2022		 £
£
693,174
22
-
-
(23,185)
(23,163)
(130,770)
(130,770)
539,241
847,485
1,386,726
1,386,726
1,386,726
£
£
85,928
(22)
210,045
-
-
397,223
607,246
693,174
2021
2021		 £
£
693,174
22
-
-
(23,185)
(23,163)
(130,770)
(130,770)
539,241
847,485
1,386,726
1,386,726
1,386,726
£
£
85,928
(22)
210,045
-
-
397,223
607,246
693,174
2021
2021
693,174

Page 12

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

ACCOUNTING POLICIES

General information, scope and basis of the financial statements

Christ Embassy is an unincorporated charity, registered in England, and established under a Trust Deed. The address of the principal office is given in the reference and administrative details section and the nature of the charity’s operations and principal activities are given in the trustees' report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Income from grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Page 13

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

ACCOUNTING POLICIES

Fixed assets

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

stematic basis over its expected useful life as follows:
Freehold property 2% straight line
Leasehold improvements 2% straight line
Office equipment 33.3% straight line
Computer equipment 20% straight line
Motor vehicles 25% straight line

At each balance sheet date the charity's management and trustees consider whether there is any indications the assets are impaired. Where indications of impairment exist the assets is written down to its recoverable amount.

Fixed asset investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably.

Stock

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition.

Debtors receivable and creditors payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Assets held for sale

Assets held for sale comprise assets available for immediate sale, which are being actively marketed at a market rate. These assets are reported at net residual value less costs to sell.

Cash and cash equivalents

Cash and cash equivalents includes cash at bank and in hand and cash balances within the investment portfolio available for investment transaction purposes.

Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable and allocated to funds on a basis in line with the allocation of expenditure.

Redundancy and termination payments are recorded as an expense in the financial statements as they fall due with any amounts unpaid at the balance sheet date accrued.

VAT

The Charity is not registered for VAT and cannot recover VAT incurred on costs. These are therefore stated inclusive of any VAT element.

Tax

The charity is considered to pass the tests set out in sections 521 to 536 Income Tax Act 2007 (ITA 2007), as such no income tax is payable on the charity's activities.

Page 14

CHRIST EMBASSY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

ACCOUNTING POLICIES

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern and can be supplemented through the sale of vacant buildings.

Page 15

CHRIST EMBASSY

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES TO THE FINANCIAL STATEMENTS

1. Donations and legacies
Tithes and offerings
2. Other trading activities
Rental income
3. Investments
Bank interest
4. Charitable activities
Ministry bookshop
5. Raising funds
Voluntary income staff costs - security		 Unrestricted
Funds
£
4,721,174
4,721,174
Unrestricted
Funds
£
127,400
127,400
Unrestricted
Funds
£
131
131
Unrestricted
Funds
£
1,011
1,011
Unrestricted
Funds
£
16,492
16,492		 Restricted
Funds
£
2,582,547
2,582,547
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-		 2022
Total
Funds
£
7,303,721
7,303,721
2022
Total
Funds
£
127,400
127,400
2022
Total
Funds
£
131
131
2022
Total
Funds
£
1,011
1,011
2022
Total
Funds
£
16,492
16,492		 Unrestricted
Funds
£
3,851,822
3,851,822
Unrestricted
Funds
£
130,000
130,000
Unrestricted
Funds
£
22
22
Unrestricted
Funds
£
666
666
Unrestricted
Funds
£
8,565
8,565		 Restricted
Funds
£
3,855,553
3,855,553
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-		 2021
Total
Funds
£
7,707,375
7,707,375
2021
Total
Funds
£
130,000
130,000
2021
Total
Funds
£
22
22
2021
Total
Funds
£
666
666
2021
Total
Funds
£
8,565
8,565

Page 16

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

6. Charitable activities

Unrestricted
Funds
£
Grants to institutions (see note 6a.)
101,000
Grants to individuals - Other
13,251
Missionary work
-
Rent and rates
962,216
Event costs
36,797
Television and internet broadcasts
683,396
Advertising
43,301
Motor and travel expenses
380,097
Repairs and maintenance
33,765
Wages and salaries
1,328,206
Books, music and audio
10,366
Depreciation
217,918
Impairment of asset held for sale
-
Support and governance costs (note 7)
722,893
4,533,206
Grants
to
individuals
-
Rhapsody of
Realities
-		 Restricted
Funds
£
566,161
54,301
-
-
421,459
601,737
-
68,625
-
-
-
-
-
-
3,607,377
1,895,094		 2022
Total
Funds
£
667,161
67,552
-
962,216
458,256
1,285,133
43,301
448,722
33,765
1,328,206
10,366
217,918
-
722,893
8,140,583
1,895,094		 Unrestricted
Funds
£
-
12,360
773
705,297
191,125
682,809
15,696
253,177
12,498
1,255,618
-
210,045
-
445,146
4,347,387
562,843		 Restricted
Funds
£
416,255
191,304
-
-
80,414
706,610
-
90,995
-
-
-
-
-
-
3,396,183
1,910,605		 2021
Total
Funds
£
416,255
203,664
773
705,297
271,539
1,389,419
15,696
344,172
12,498
1,255,618
-
210,045
-
445,146
2,473,448
7,743,570

6a. Grants to institutions

Healing School - Canada
Healing School
Inner City Mission
Loveworld Medical Centre		 2022
£
-
554,861
11,300
101,000
667,161		 2021
£
390,000
-
26,255
-
416,255

7. Support and governance costs

Light and heat
Printing postage and stationery
Telephone and internet
Sundry expenses
Insurance
Bank interest payable
Bank charges
Legal and professional fees
Accountancy fees
Auditor's remuneration
Loss/(profit) on disposal of fixed assets		 Unrestricted
Funds
£
76,897
169,663
76,261
283,575
11
77,004
19,308
500
-
19,674
-
-
722,893		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 2022
Total
Funds
£
76,897
169,663
76,261
283,575
11
77,004
19,308
500
-
19,674
-
-
722,893		 Unrestricted
Funds
£
70,337
91,746
52,239
134,607
284
63,775
15,808
-
150
16,200
-
-
445,146		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 2021
Total
Funds
£
70,337
91,746
52,239
134,607
284
63,775
15,808
-
150
16,200
-
-
445,146

Page 17

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

8. Auditors remuneration

Audit
Accounts preparation
Other support services and travel		 Unrestricted
Funds
£
10,800
4,200
4,674		 Restricted
Funds
£
-
-
-		 2022
Total
Funds
£
10,800
4,200
4,674		 Unrestricted
Funds
£
10,800
4,200
1,200		 Restricted
Funds
£
-
-
-		 2021
Total
Funds
£
10,800
4,200
1,200

9. Wages and salary cost

Gross wages
Employer's national insurance costs
Employer's pension contributions
Staff numbers:
Average head count		 2022
Total
Funds
£
1,146,507
121,784
44,954
1,313,245
2022
34		 2021
Total
Funds
£
1,100,343
110,909
42,962
1,254,214
2021
34

No employee received employee benefits, excluding employer pension contributions, in excess of £60,000 during the year under review or the comparative year.

The charity operated a defined contribution pension scheme for its employees. The contributions shown above are recorded as an expense within the Statement of Financial Activities with no amounts outstanding at the balance sheet date.

10. Related party transactions

The following trustees were remunerated for their full time roles as Pastors, being a minority of the total number of trustees and thus allowed under the Trust Deed. The amounts payable during the for the period in which they were trustees was as follows:

Pastor Gabriel Adesina
Gross pay
Employer's NIC
Employer's pension		 2022
£
58,020
7,117
2,201
67,338		 2021
£
58,020
6,788
2,198
67,006

Inclusive of Pastor Adesina the charity's four paid members of key management personnel received employee benefits totalling £202,815 (2021 four: £221,509) consisting of gross pay and employer's pension contributions.

None of the trustees, listed on page 1, were reimbursed or had expenses paid on their behalf during the year under review or the comparative year.

Page 18

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

11. Tangible fixed assets - charity

Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
Accumulated at 1 January 2022
Charge for the year
On disposals
At 31 December 2022
Net book value at 31 December 2022
Net book value at 31 December 2021		 Freehold
property
£
9,528,840
-
-
9,528,840
1,955,388
190,577
-
2,145,965
7,382,875
7,573,452		 Leasehold
improvements
£
658,618
-
-
658,618
145,973
14,279
-
160,252
498,366
512,645		 Office
equipment
£
782,937
8,045
-
790,982
754,154
13,062
-
767,216
23,766
28,783		 Church
equipment
£
2,645,227
-
-
2,645,227
2,645,227
-
-
2,645,227
-
-		 Motor
vehicles
£
15,145
-
-
15,145
15,145
-
-
15,145
-
-		 Total
£
13,630,767
8,045
-
13,638,812
5,515,887
217,918
-
5,733,805
7,905,007
8,114,880

12. Investment property

Carrying (market) value brought forward
Transfers to assets held for sale
Revaluation adjustments
Carrying (market) value carried forward		 2022
Total
Funds
£
3,950,000
-
-
3,950,000		 2021
Total
Funds
£
2,500,000
-
1,450,000
3,950,000

The property was valued in 2022 by Lambert Smith Hampton, Chartered Surveyors, on an open market value for existing use basis.

13. Assets held for sale

Building (received from subsidiary)
14. Debtors
Prepayments and accrued income		 2020
Total
Funds
£
733,410
733,410
2022
Total
Funds
£
7,538
7,538		 2021
Total
Funds
£
733,410
733,410
2021
Total
Funds
£
7,538
7,538

Page 19

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

15. Creditors: amounts falling due within one year

15. Creditors: amounts falling due within one year
Bank loans and overdrafts
Other loans
Trade creditors
Other creditors
Accruals and deferred income		 2022
Total
Funds
£
42,081
232,203
459,554
1,047,687
34,972
1,816,497		 2021
Total
Funds
£
61,511
232,203
774,433
1,047,687
32,500
2,148,334

16. Creditors: due after more than one year

Bank loans payable between one and two years
Bank loans payable between two and five years
Bank loans payable in more than five years		 2022
Total
Funds
£
45,651
161,580
1,228,577
1,435,808		 2021
Total
Funds
£
40,362
137,607
1,321,897
1,499,866

17. Analysis of net assets between funds

Tangible fixed assets
Investment property
Current assets
Current liabilities
Non-current liabilities		 Unrestricted
Funds
£
7,905,007
3,950,000
74,778
(1,816,497)
(1,435,808)
8,677,480		 Restricted
Funds
£
-
-
1,142,142
-
-
1,142,142		 2022
Total
Funds
£
7,905,007
3,950,000
1,216,920
(1,816,497)
(1,435,808)
9,819,622		 Unrestricted
Funds
£
8,114,880
3,950,000
331,916
(2,148,334)
(1,499,866)
8,748,596		 Restricted
Funds
£
-
-
1,795,758
-
-
1,795,758		 2021
Total
Funds
£
8,114,880
3,950,000
2,127,674
(2,148,334)
(1,499,866)
10,544,354

18. Analysis of net movement in funds

Restricted funds
Partnership
Ministry
Pastoral
Building
Total restricted funds
Unrestricted funds
Designated funds
Fixed asset reserve
Revaluation reserve
Total designated funds
General fund
Total charity unrestricted funds
Total funds		 Year ended 31 December 2022 Year ended 31 December 2022
Total funds
brought
forward
£
689,085
353,021
52,593
701,059
1,795,758
8,114,880
2,525,000		 Total
incoming
resources
£
2,416,700
165,127
-
720
2,582,547
-
-		 Total
resources
expended
£
(3,476,997)
(130,380)
-
-
(3,607,377)
(217,918)
-		 Transfers
between
funds
£
371,214
-
-
-
371,214
8,043
-		 Gains/(losses)
on fixed assets
& investments
£
-
-
-
-
-
-
-		 Total funds
carried
forward
£
2
387,768
52,593
701,779
1,142,142
7,905,005
2,525,000
10,639,880
(1,891,284)
8,748,596
10,544,354		 -
4,849,796
4,849,796
7,432,343		 (217,918)
(4,331,780)
(4,549,698)
(8,157,075)		 8,043
(379,257)
(371,214)
-		 -
-
-
-		 10,430,005
(1,752,525)
8,677,480
9,819,622

Page 20

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

18. Analysis of net movement in funds

Restricted funds
Partnership
Ministry
Pastoral
Building
Total restricted funds
Unrestricted funds
Designated funds
Fixed asset reserve
Revaluation reserve
Total designated funds
General fund
Total charity unrestricted funds
Total funds		 Year ended 31 December 2021 Year ended 31 December 2021
Total funds
brought
forward
£
-
583,316
52,593
700,479
1,336,388
8,301,740
1,075,000		 Total
incoming
resources
£
3,838,239
16,734
-
580
3,855,553
-
-		 Total
resources
expended
£
(3,149,154)
(247,029)
-
-
(3,396,183)
(210,045)
-		 Transfers
between
funds
£
-
-
-
-
-
23,185
-		 Gains/(losses)
on fixed assets
& investments
£
-
-
-
-
-
-
1,450,000		 Total funds
carried
forward
£
689,085
353,021
52,593
701,059
1,795,758
8,114,880
2,525,000
9,376,740
(1,704,702)
7,672,038
9,008,426		 -
3,982,510
3,982,510
7,838,063		 (210,045)
(4,145,907)
(4,355,952)
(7,752,135)		 23,185
(23,185)
-
-		 1,450,000
-
1,450,000
1,450,000		 10,639,880
(1,891,284)
8,748,596
10,544,354

19. Description of restricted funds

Funds for other arms of the Ministry; namely Rhapsody of Realities, Healing School, Loveworld Television, Innercity Mission, Cyber Ministry and International School of Ministry.

Partnership Funds for other arms of the Ministry; namely Rhapsody of Realities, Healing School, Loveworld Television, Innercity Mission, Cyber Ministry and International School of Ministry. Ministry Funds to support missionary projects. Pastoral Funds to assist a small group of fellowship within the ministry congregation Building Funds for the acquisition of a bigger venue or expansion of existing venues to accommodate the fast growing membership of the Church.

Page 21

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CHRIST EMBASSY

NOTES TO THE FINANCIAL STATEMENTS

20. Financial instruments

The carrying amounts of the charity's financial instruments are as follows:

Financial liabilities
Measured at amortised cost:
Trade creditors (note 15)
Bank loan (notes 15 and 16)
Other loans (note 15)
Other creditors (note 15)		 2022
Total
Funds
£
459,554
1,477,889
232,203
1,047,687
3,217,333		 2021
Total
Funds
£
774,433
1,561,377
232,203
1,047,687
3,615,700

21. Comparative statement of financial activities

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
1
Other trading activities
2
Investments
3
Charitable activities
4
Total
EXPENDITURE ON:
Raising funds
5
Charitable activities
6
Total
Net Income/(expenditure)
Transfers between funds
18
Other recognised gains/(losses)
Gains/(losses) on revaluation of fixed assets and investment property
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
18
Total funds carried forward
18		 Unrestricted
Funds
£
3,851,822
130,000
22
666
3,982,510
8,565
4,347,387
4,355,952
(373,442)
-
(373,442)
1,450,000
1,076,558
7,672,038
8,748,596		 Restricted
Funds
£
3,855,553
-
-
-
3,855,553
-
3,396,183
3,396,183
459,370
-
459,370
-
459,370
1,336,388
1,795,758		 2021
Total
Funds
£
7,707,375
130,000
22
666
7,838,063
8,565
7,743,570
7,752,135
85,928
-
85,928
1,450,000
1,535,928
9,008,426
10,544,354

Page 22