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2022-08-31-accounts

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Charity number: 1072196 Company number: 03642766

(England and Wales)

Sound Church Ltd (previously known as Freedom-Bath) Report of the Trustees and Audited Financial Statements For the year ended 31 August 2022

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Contents Page For the year ended 31 August 2022

Report of the Trustees 1 to 8
Report of the Auditors 9 to 12
Statement of Financial Activities 13
Statement of Financial Position 14
Statement of Cash Flows 15
Notes to the Financial Statements 16 to 28

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Report of the Trustees

For the year ended 31 August 2022

The Trustees, who are also directors for the purposes of company law, have pleasure in presenting their report and the financial statements for the charitable company for the year ended 31 August 2022. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

As Trustees we seek to ensure as a church, we have considered the Commissions guidance on Public Benefit when planning our activities. Specifically with respect to the guidance on the advancement of religion. With this in mind the charities objects and principal activities are:

These objectives enable us to provide public benefit in various ways through the various activities of the charity.

Events are hosted and attended throughout the year to further the charities objects, including Sunday services, midweek meetings, social events and the Church Weekend Away in which the majority of the church go away to be strengthened and encouraged in their faith. These events are strategic in enabling people to connect with each other and with Jesus.

Missions are those activities whereby the charity seeks to reach out to others helping to advance the Christian faith and or relieve poverty. A significant amount of our missions activities are through the provision of grants to individuals and charities who are undertaking work that contribute toward the objects of the charity as listed above. As well as giving to others we also run our own activities which also serve to reach out to the local and international community. These varied activities act to see the relief of poverty and the advancement of the Christian faith. Many of our small groups in church get involved in helping the communities they live in practical ways. With this in mind we work with social services to help some of the people most in need in our cities.

Activities seek to care for, support and help people to move on in their lives both practically and spiritually. These activities are carried out to bring relief to the poor and needy and the sick and elderly, those requiring emotional and spiritual support. The provision of pastoral support has been continued throughout the year by the Lead Pastor, assisted by members of the pastoral team. This has enabled us to help both people inside and outside of the church as they seek to move forward in their lives.

The core of the church's activities are found in its meetings, which are usually held on Sundays and many midweek evenings. These meetings are specifically aimed at teaching and growing people in their faith. Enabling them to help and encourage others in their daily life with Jesus and each other.

The trustees have considered the Charity Commision's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'.

Grantmaking

Mission is the generic term we give to gifts that we make to other organisations and individuals that furthers our charitable objects. When gifts are given the following criteria are always looked at before the gift is given:

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd

Report of the Trustees Continued For the year ended 31 August 2022

Volunteers

The church has a total of 451 people who are active members, with a regular Sunday attendance of 260 people in the morning service, and an average of 75 people in the evening prayer meeting. Sound Church has an average attendance of 50 people on a Friday evening, with around 150 people attending different functions all week long.

We have approximately 140 volunteers who are part of teams to enable the smooth running of the events and services. The volunteers are part of teams such as host, welcoming, car parking, cafe, sound team, AV, music bands, kids clubs, youth clubs, our social action teams and many others. The teams have meals together and social times, as well as meetings to enable the volunteer work to abide by all governance and policies.

We recognize that volunteering for such teams has been evidenced based by researchers to be beneficial for mental health and wellbeing and facilitates a sense of wellbeing. The volunteers also help others have a sense of belonging and feel at home in our events.

FINANCIAL REVIEW

There was a net surplus on general funds for the year of £62,938, leaving unrestricted reserves of £2,212,652 at 31st August 2022.

We run several significant events, such as our weekend away, as a main way to integrate people into the organization so that they feel a sense of belonging and feel known by others. Whilst it can be a financial risk to run larger events, the impact is positive, both for those who attend and the sense of stability of the organization and those who attend feeling that they know more people and are known by more people.

The Trustees are mindful of ever-increasing overheads and particularly the steep rise in interest rates of the church borrowing. The Trustees are confident that the growth of the church and the support of the congregation will meet these needs.

Principal funding sources

Funding is generated predominantly through tithes and offerings given to the church from its members and other organisations. As such a significant source of income is the Gift Aid claimed on peoples gifts. In addition, the car park at Freedom House is let to a Trust who use it for their employees during the week and parts of Freedom House are let to another registered charity to carry out their work supporting the local community.

Reserves

It was decided by the Trustees that the Church should hold in savings in unrestricted funds the equivalent of at least one month's staff salaries and outgoings in order to cover any shortfall in the giving to the charity. Therefore, the charity seeks to hold a minimum of £20,000 in reserve. In view of the building development, additional financial commitments taken on and the impact of the Covid-19 virus, the reserve policy is under constant review.

PLANS FOR FUTURE PERIODS

The future of the charity is to continue the morning services and evening prayer and healing nights, alongside continuing the excellent kids and youth programme and young adults and 40+ programmes. We have seen these take place successfully this year, following the Covid season and feel that the momentum is increasing both with numbers and enthusiasm.

Sound Church has no plans to start any new projects and feel that the current ones give us enough to develop. The social action arm of the churches projects are gaining in popularity and many people in the city are beginning to come to the church when they are in need. This team has enabled many others to be a part of a positive team with a sense of purpose in helping others.

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The name of the Trust was changed from Freedom-Bath to Sound Church Ltd on 5 December 2022.

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

Mrs E de Thierry Mr JM Needham Mr S Matthew Ms J Stretford (appointed 30th November 2021; resigned 19th August 2022) Ms K Ottley (appointed 11th April 2022)

The Chairman of Trustees appoints trustees with relevant business and/or church experience to serve as trustees for a period of normally at least 2 years. Trustees are active members or supporters of Sound Church Ltd.

Most Trustees are already familiar with the activities undertaken by the charity as commonly active members of or long-term supporters of the church are selected for the role. Copies of the Memorandum and Articles of Association are made available, and an overview of recent activities, obligations and plans are given to them at a meeting with the Chairman of the Trustees.

The charity is led by the lead pastor, Mrs E deThierry, with the support of the pastoral team. The church is a part of wider church networks such as the Evangelical Alliance and Wave Church Network.

The board meet four or five times a year to administer the charity. They are not a board of elders and have no pastoral function, their role is to oversee the legal and financial aspects (governance) of the charity and to ensure compliance with statutory reporting requirements and that risks to which the charity is exposed are reviewed, minimised, and managed accordingly. Mrs E de Thierry will present those plans which have a financial cost to the trustees who will advise and make recommendations on the best method of implementation or compliance.

Related parties

Freedom Bath + Bristol Developments Limited is a limited company which was engaged by the charity to carry out the design and build contract for the erection of the new auditorium.

The charity also supports the Trauma Recovery Centre financially. Mrs E de Thierry is the founder and a Trustee of Trauma Recovery Centre.

Betsy de Thierry Ltd is a limited compay that provides professional support to members of the church. Mrs E de Thierry is director/shareholder of the company.

Pay policy for senior staff

The trustees are meeting over the summer of 2023 to discuss an appropriate pay scale for Bath which has similarities to London pay, due to rising cost of house prices and cost of living in the area. most of the staff have had to have financial help to be able to work for the church, with reduced costs of rent, living a long way outside of the city or having relatives subsidize income and we aim to work out how to reduce this financial stress whilst recognizing that it is a charity with limited income.

Risk management

The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The auditor, Caladine Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2022

REFERENCE AND ADMINISTRATIVE INFORMATION

Name of Charity Sound Church Ltd Charity registration number 1072196 Company registration number 03642766 Principal address Freedom House Lower Bristol Road Bath BA2 1EP

Trustees

The trustees and officers serving during the year and since the year end were as follows:

Mrs E de Thierry Mr JM Needham Mr S Matthew Ms J Stetson (Appointed: 30 November 2021; Resigned: 19[th] August 2022) Ms K Ottley (Appointed: 11[th] April 2022)

Secretary Mrs H Sell

Auditors Caladine Ltd Chantry House 22 Upperton Road Eastbourne BN21 1BF

Accountants Chippendale & Clark First Floor, Absol House Ivy Road Chippenham SN15 1SB

Bankers HSBC 45 Milsom Street Bath BA1 1DU

Stewardship Services (UKET) Limited 1 Lambs Passage London EC1Y 8AB

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2022

RESPONSIBILITIES OF THE TRUSTEES

The Trustees, who are also directors for the purposes of company law, are who are also directors of Sound Church Ltd for the purposes of Company Law are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The Trustees are required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources of the charitable company for that period. In preparing those financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

Approved by the Board of Trustees and signed on its behalf by

.............................................................................

5/19/2023

Mrs E de Thierry

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2022

Achievements & Performance 2021-2022

SEPTEMBER 2021

Grief Café

Guvna B

OCTOBER 2021

Worship team training and auditions

Heart and Soul

Youth Overnight trip Kids Conference

Big Student Party

NOVEMBER 2021

Sam Milchem guest speaker

Men’s Conference with Ben Lindsay

Students & Young Adults Firework night

DECEMBER 2021

Christmas Carol Services x2

Nativity Service

Christingle Drive Through

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2022

January 2022 Grief Café

Men’s Breakfast Heart & Soul

February 2022

New Prophetic Training Cohort 1 Young Carers Afternoon First Fences were installed

March 2022

Rise & Build

Mothers Day

New Branding Completed

Betsy Spoke in the Hague & for message trust

April 2022

Women’s Conference

Easter Sunday Uniform Cupboard

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2022

May 2022

Church Weekend Away

Authentic Festival

Premier Christianity Magazine Visits (Trauma Informed Church)

June 2022

Big Church Day Out – Stall for Trauma Informed Church Staff Party & Celebration

Fathers Day

July 2022

Stephen Matthews visited to Speak

Re-started a foodbank

Sound Global Collective day, hosting trustees from various charities that Sound supports

Painting Party around Freedom House & TRC

Summer of Fun started

August 2022

Summer of Fun continued

Summer Parties & Picnics

De Thierry’s went to Wave conference & Betsy spoke in

2 services

Dan Belshaw visited to speak

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Independent auditors' report to the members of Sound Church Ltd

Opinion

We have audited the financial statements of Sound Church Ltd (the 'charity') for the year ended 31 August 2022 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the 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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit: - the information given in the Trustees' report, which includes the directors' report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors' report included within the Trustees' report has been prepared in accordance with applicable legal requirements.

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Independent auditors' report to the members of

Sound Church Ltd Continued

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-certain disclosures of trustees' remuneration specified by law are not made; or

Responsibilities of trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charity for the purpose of company law, 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 charitable company or to cease operations, or have no realistic alternative but to do so.

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Independent auditors' report to the members of Sound Church Ltd Continued

Auditors responsibilities for the audit of the financial statements

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.

The extent to which the audit was considered capable of detecting irregularities including fraud

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

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Audit response to risks identified

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

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Independent auditors' report to the members of Sound Church Ltd Continued

A further description of our responsibilities is available on the Financial Reporting Council's website at: http://www.frc.org.uk/auditorsresponsibilities.

John Richard Caladine FCCA CTA FCIE (Senior Statutory Auditor) For and on behalf of Caladine Limited Chartered Certified Accountants Statutory Auditor

Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd

Statement of Financial Activities (including Income and Expenditure Account) For the year ended 31 August 2022

Notes
Income and endowments from:
Donations and legacies
2
Charitable activities
3
Other trading activites
4
Investments
5
Other income
6
Total
Expenditure on:
Raising funds
7
Charitable activities
8/9
Total
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
funds
£
706,219
54,041
30,000
11
1,481		 Restricted
funds
£
132
-
-
-
-		 2022
£
706,351
54,041
30,000
11
1,481		 2021
£
677,148
45,211
30,000
3
17,077
791,752 132 791,884 769,439
-
(747,054)		 -
(782)		 -
(747,836)		 (4,107)
(623,069)
(747,054) (782) (747,836) (627,176)
18,240 (18,240) - -
62,938 (18,890) 44,048 142,263
2,149,714 18,890 2,168,604 2,026,341
2,212,652 - 2,212,652 2,168,604

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Registered Number :

03642766

Sound Church Ltd Statement of Financial Position As at 31 August 2022

Notes
Fixed assets
Tangible assets
16
Current assets
17
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
19
Net assets
The funds of the charity
Restricted income funds
Unrestricted income funds
Total funds		 £
2022
4,268,332		 £
2021
4,326,917
4,268,332 4,326,917
16,241
36,128		 6,876
70,672
52,369 77,548
(124,539)
(72,170)		 (170,642)
(93,094)
4,196,162 4,233,823
(1,983,510) (2,065,219)
2,212,652 2,168,604
-
2,212,652		 18,890
2,149,714
2,212,652 2,168,604

For the year ended 31 August 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476,

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved and authorised for issue by the Board and signed on its behalf by:

Mrs E de Thierry Trustee

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Statement of Cash Flows As at 31[st] August 2022

Cash flows from operating activities 2022 2021
Surplus for the year 44,049 142,263
Adjustments for:
Investment income recognised in the statement of financial activities (11) (3)
Loss/(gain) on disposal of property, plant & equipment 0 4,107
Depreciation and impairment of property, plant & equipment 81,987 81,271
Movements in working capital
Decrease / (increase) in trade & other receiveables (8,808) 6,318
(Decrease) / increase in Creditors & other payables (3,705) (2,673)
(Decrease) / increase in deferred income (30,000) (30,000)
Cash (absorbed by) / generated from operations 83,511 201,282
Investing activities
Purchase of property, plant & equipment (23,402) (151,776)
Proceeds on disposal of property, plant & equipment 0 3,340
Investment income received 11 3
Net cash used in investing activities (23,391) (148,433)
Financing activities
Proceeds of new bank loans 0 0
Repayment of bank loans (94,663) (10,645)
Net cash generated from financing activities (94,663) (10,645)
Net decrease in cash and cash equivalents (34,543) 42,204
Cash and cash equivalents at beginning of year 70,673 28,469
Cash and cash equivalents at end of year 36,130 70,673

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Notes to the Financial Statements

For the year ended 31 August 2022

1. Accounting Policies

Basis of accounting

The financial statements have been prepared under the historical cost convention, except for investments which are included at market value and the revaluation of certain fixed assets and in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), Financial Reporting Standard 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Charities Act 2011.

Sound Church Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Sound Church Ltd is a charitable company limited by guarantee incorporated in England and Wales.

These financial statements are prepared in Sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The continued support of the church congregation and church bankers has resulted in another successful year for the charity despoite the ongoing effects of the Covid-19 pandemic. This is expected to continue thus ensuring the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing these financial statements.

Funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Incoming resources

All incoming resources are included in the statement of financial activities when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation as unrestricted income.

Voluntary income is received by way of donations and gifts. It is shown in full in the Statement of Financial Activities when received.

In July 2019 the charity received the sum of £180,000 from a local housing association as an advance payment for use of the charity's car park. The remaining amount is shown as deferred income on the balance sheet, with the income being recognised at a rate of £30,000 per year over the 6 year lease period to July 2025.

Resources expended

Liabilities are recognised as resources expended when there is a legal or constructive obligation committing the Charity to the expenditure:

Taxation

The Trustees consider that none of the income of the charity is subject to UK taxation.

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd

Notes to the Financial Statements Continued

For the year ended 31 August 2022

Intangible assets

Intangible assets acquired separately from a charity are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.

These costs relate to the costs of Trademarks for Freedom Bath & Bristol, Freedom Arts College and Freedom Churches.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Trademarks -10% on a straight line basis

Tangible fixed assets

Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Fixed assets that cost over £500 are capitalised in the accounts.

Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

Freehold property - 2% on a straight line basis Fixtures, fittings and equipment - 25% on a reducing balance basis Motor vehicle - 25% on a reducing balance basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Grants payable

2022 2021
Community Action (The Cupboard) 250 87
Gilead Foundation 3,000 3,000
Hillsong 8,360 6,148
Hope for Justice 1,200 1,200
Sozo Ministries International 1,200 1,200
Trauma Recovery Centre 2,190 42
Rebuild Leaders 9,813 10,231
Other 5,292 5,393
31,305 27,301
Grants to Individuals 8,269 8,505
Total Grants payable 39,574 35,806

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2022

2. Income from donations and legacies

Donations received
Grants received		 Unrestricted
funds
Restricted
funds
2022
2021
£
£
£
£
706,219
132
706,351
673,748
-
-
-
3,400
706,219
132
706,351
677,148

Comparative for Income from donations and legacies

Donations received
Grants received		 Unrestricted
funds
Restricted
funds
2021
£
£
£
656,397
17,351
673,748
-
3,400
3,400
656,397
20,751
677,148

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DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd

Notes to the Financial Statements Continued For the year ended 31 August 2022

3. Income from charitable activities

2022 2021
£ £
Unrestricted funds
Advancement of Christian faith
Sales of Christian Resources 557 20
Cafe income 6,252 -
Youth & Student work income 5,812 4,409
Rental Income (Freedom House) 20,700 25,200
Other income 20,720 15,582
54,041 45,211
54,041 45,211
ncome earned from other activities
2022 2021
£ £
Unrestricted funds
Letting of Car Park 30,000 30,000
30,000 30,000
nvestment income
2022 2021
£ £
Unrestricted funds
Bank interest receivable 11 3
11 3
ther income
2022 2021
£ £
Unrestricted funds
Job Retention Scheme Grant 1,481 17,077
1,481 17,077

4. Income earned from other activities

5. Investment income

6. Other income

19

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31[st] August 2022

7. Expenditure on other trading activities

Fund raising events

2022
£
-		 2021
£
4,107
- 4,107

8. Costs of charitable activities by fund type

Comparison for costs of charitable activities by fund type
Advancement of Christian Faith
Support Costs
Activities
undertaken
directly
Support Costs
£
Advancement of Christian Faith
384,644
Comparison for costs of charitable activities by activity type
Advancement of Christian Faith
Unrestricted
funds
£
384,644
Advancement of Christian faith
362,410
Support costs
747,054
9. Costs of charitable activities by activity type		 Unrestricted
funds
£
305,701
315,507
621,208
Support
costs
£
363,192
Activities
undertaken
directly
£
305,701
Restricted
funds
£
-
782
782		 2022
£
384,644
363,192		 2021
£
305,701
317,368
747,836 623,069
Restricted
funds
£
-
1,861		 2021
£
305,701
317,368
1,861 623,069
2022
£
747,836
Support
Costs
£
317,368		 2021
£
623,069
2021
£
623,069

9. Costs of charitable activities by activity type

10. Analysis of support costs

Advancement of Christian faith
Management
Governance Costs		 2022
2021
£
£
316,293
272,431
46,899
44,937
363,192
317,368

20

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd

Notes to the Financial Statements Continued

11. Net income/(expenditure) for the year

This is stated after charging/(crediting):

This is stated after charging/(crediting):
2022 2021
£ £
Depreciation of owned fixed assets 81,987 80,827
Amortisation of intangible fixed assets
Trademarks - 444
Accountancy fees 10,781 6,494
Auditor's fees 8,820 4,620
Trustees' remuneration 24,790 30,778
Staff pension contributions 7,426 6,988
(Gain)/Loss on disposal of tangible fixed assets - 4,107

12. Staff costs and emoluments

Total staff costs for the year ended 31 August 2022 were:

Total staff costs for the year ended 31 August 2022 were:
2022 2021
£ £
Salaries and wages 268,073 237,116
Social security costs 19,321 22,811
Pension costs 7,426 6,988
294,820 266,916
he average number of employees during the year was:
2022 2021
Activities in furtherance of organisations objects 11 12
Management and administration 3 3
14 15

The average number of employees during the year was:

A portion of the salary cost totalling £9,813 (2021: 9,813) is for the Church’s Missions work. The wages are considered part of the grant allocation under the Rebuild Leaders category and are therefore not included in the above figures.

The number of employees whose annual remuneration was more than £60,000 is as follows:

2022 2021
£ £
Aggregate compensation 69,538 67,099

The remuneration of key management personnel is as follows:

2022 2021
£ £
£60,001-£70,000 1 -

The church is also wonderfully served by many unpaid volunteers acting in a variety of ways.

21

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2022

13. Trustee remuneration and related party transactions

Mrs E deThierry (trustee) received a salary of £59,500 (2021: £59,500) as the Lead Pastor and pension contributions of £2,800 (2021: £2,800). This payment is permitted within the constitution of the charitable company.

Three family member of Mrs E deThierry received salaries totalling £85,406 (£80,946).

A family member of Mr J Needham received a salary of £5,067 (2021: £4,229)

Aggregate donation to the charity during the year from Trustees and related parties were £38,539 (2021: £37,851)

Betsy deThierry Ltd is a limited company that provides professional support to members of the church. Mrs E deThierry is a director shareholder of this company. A payment of £12,000 (2021: £12,000 was made to the company for professional services such as consultancy, complex trauma support and care & for additional training on courses such as the Certificate of Therapeutic Mentoring.

Freedom Bath + Bristol Developments Limited is a limited company which was engaged by the charity to carry out the design and build contract for the erection of the new auditorium. The charity is now hiring equipment from the company. The charity owes the company £566 at the year end (2021: £-1,565).

The charity also supports the Trauma Recovery Centre (TRC) financially. Mrs E deThierry is the founder and a Trustee of the Trauma Recovery Centre. The charity provided support of £2,190 (2021: £42). TRC leases premises at Freedom House from the charity, they paid rent of £19,200 (2021: £26,200). The total rent from TRC of £19,200 (2021: £26,200) is recognised as charitable rental income in the accounts.

None of the trustees have claimed expenses or had their expenses met by the charity in relation to their roles as trustees.

14. Comparative for the Statement of Financial Activities

Income and endowments from:
Donations and legacies
Charitable activities
Other trading activites
Investments
Other income
Total
Expenditure on:
Raising funds
Charitable activities
Total
Net income
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
656,397
45,211
30,000
3
17,077		 Restricted
funds
£
20,751
-
-
-
-		 2021
£
677,148
45,211
30,000
3
17,077
748,688 20,751 769,439
(4,107)
(621,208)		 -
(1,861)		 (4,107)
(623,069)
(625,315) (1,861) (627,176)
123,373
2,026,341		 18,890
-		 142,263
2,026,341
2,149,714 18,890 2,168,604

22

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2022

15. Intangible fixed assets

Cost or valuation
At 01 September 2021
At 31 August 2022
Amortisation
At 01 September 2021
At 31 August 2022
Net book values
At 31 August 2022
At 31 August 2021		 £
Trademarks
4,442
4,442
4,442
4,442
-
-

16. Tangible fixed assets

Cost or valuation
At 01 September 2021
Additions
At 31 August 2022
Depreciation
At 01 September 2021
Charge for year
At 31 August 2022
Net book values
At 31 August 2022
At 31 August 2021
Debtors
Amounts due within one year:
Amounts due by group and associated undertakings
Prepayments and accrued income
Other debtors		 Fixtures and
Fittings
Land and
Buildings
£
£
191,563
4,363,775
5,162
18,240
4,382,015
196,725
130,805
97,616
16,548
65,439
147,353
163,055
4,218,960
4,266,159
49,372
60,758
2022
£
487
15,524
230
16,241		 Total
£
4,555,338
23,402
4,578,740
228,421
81,987
310,408
4,268,332
4,326,917
2021
£
1,566
5,080
230
6,876

17. Debtors

23

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd

Notes to the Financial Statements Continued For the year ended 31 August 2022

18. Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2022 2021
£ £
Loans and overdrafts 77,977 120,931
Trade creditors 1,938 8,772
Amounts due to subsidary and associated undertakings 556 -
Other creditors
PAYE & social security 7,348 6,319
Accruals and deferred income 36,720 34,620
124,539 170,642
Creditors: amounts falling due after more than one year
2022 2021
£ £
Loans and overdrafts 1,926,575 1,978,284
Accruals and deferred income 56,935 86,935
1,983,510 2,065,219

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

20. Borrowings

2022 2021
£ £
Bank loans 2,004,552 2,099,216
Payable within one year 77,977 120,931
Payable after one year 1,926,575 1,978,284

The property loan from Stewardship Services (UKET) Ltd was originally £1,995,000 in total charged at 3.25% (variable at one months notice) repayable over 15 years.

In 2019-20 the charity received a further advance from Stewardship of £181,000 to pay outstanding liabilities relating to the construction of the new auditorium and profession/legal fees.

In light of the uncertianty caused by Covid-19, the charity applied for, and received, deferral of capital repayments on the loan. £1 million was interest only until January 2021, when capital repayments were due, but this interest only period ceased in July 2021 when capital repayments started. The other part of the loan was interest only until November 2021 when capital repayments started.

The loan from Stewardship is secured on Freedom House, Lower Bristol Road, Bath, BA2 1EP and land lying west of Technology House, Lower Bristol Road, Bath, BA2 1EP, and the same is registered at the Land Registry under title numbers AV26412 and AV93184.

24

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Notes to the Financial Statements Continued For Year ended 31 August 2022

21. Deferred Income

£
Deferred income at 1 September 2021 116,935
Deferred income released in the year (30,000.00)
Deferred income at 31 August 2022 86,935

22. Analysis of net assets between funds

25

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2022

23. Restricted Funds

Balance Balance Balance at
at 1 Sept Incoming Resources Transfers at 1 Sept Incoming Resources Transfers 31 Aug
2020 resources expended 2021 resources expended 2022
-
Fencing fund - 20,750 (1,861) - 18,890 132 (782) (18,240) -
-
- 20,750 (1,861) -
18,890		 132 (782) (18,240) -

The fencing fund was set up to raise funds to improve the perimeter and security at Freedom House.

The transfer to the General fund represents the expenditure incurred to meet this objective.

26

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Notes to the Financial Statement Continued For the year ended 31 August 2022

24. Detailed Statement of Financial Activities
4. Detailed Statement of Financial Activities
INCOME AND ENDOWMENT
Donations and legacies
Donations
Gift Aid
Grants receivable
Charitable activities
Sales of Christian Resources
Cafe income
Youth & Student work income
Rental Income (Freedom House)
Other income
Church weekend away income
Other trading activities
Income from Letting of Car Park
Investments
Bank interest receivable
Other income
Job Retention Scheme Grant
Total incoming resources
EXPENDITURE
Other trading activities
Loss on disposal of assets
Charitable activities
Staff costs - wages & salaries
Staff costs - social security costs
Staff costs - pension contributions
Pastoral expenses
Sunday catering & supplies
Youth Work
Childrens Work
Church weekend away
Events - other
Training & resources
Resources for resale & album costs
Grants to institutions
Grants to individuals		 £
2022
587,807
118,544
-
706,351
557
6,252
5,812
20,700
8,476
12,244
54,041
30,000
30,000
11
11
1,481
1,481		 £
2021
581,722
92,026
3,400
677,148
20
-
4,409
25,200
5,880
9,702
45,211
30,000
30,000
3
3
17,077
17,077
791,884
-
-
(243,283)
(19,321)
(7,426)
(12,726)
(6,235)
(8,468)
(1,836)
(12,896)
(29,729)
(2,161)
(989)
(31,305)
(8,269)		 769,439
(4,107)
(4,107)
(206,339)
(22,811)
(6,988)
(4,635)
(4,177)
(8,727)
(983)
(8,538)
(4,608)
(1,855)
(234)
(27,301)
(8,505)

27

DocuSign Envelope ID: DE925FD1-AA8A-4099-A82A-BD6387B3CBFD

Sound Church Ltd Notes to the Financial Statement Continued For the year ended 31 August 2022

SUPPORT COSTS
Management
Depreciation
Amortisation
Meetings & staff welfare
Garage rent & storage
Church & office equipment
Software, graphics & IT
Printing, postage & stationery
Telephone
Other office expenses (inc cleaning, H&S, website)
Utilities
Insurance
Travel & accomodation
Rates
Bank charges
Minibus
Subscriptions
Loan interest
Building repairs & maintenance
Legal fees
Marketing
Governance costs
Wages and salaries
Accountancy fees
Audit fees
Legal fees
Total resources expended
Net Income		 (384,644)
(81,987)
-
(13)
(1,678)
(4,530)
(11,590)
(1,465)
(2,786)
(19,850)
(21,028)
(8,044)
(15,488)
(12,780)
(3,339)
-
(5,363)
(70,742)
(27,129)
(17,759)
(10,722)
(316,293)
(24,790)
(10,781)
(8,820)
(2,508)
(46,899)		 (305,701)
(80,827)
(444)
(13)
(3,700)
(4,625)
(5,945)
(1,198)
(2,912)
(27,297)
(21,107)
(6,742)
(1,513)
(11,099)
(2,636)
(330)
(4,228)
(68,391)
(17,224)
(12,200)
-
(272,431)
(30,778)
(6,494)
(4,620)
(3,045)
(44,937)
(747,836) (627,176)
44,048 142,263

28