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2023-08-31-accounts

Charity number: 1072196 Company number: 03642766

(England and Wales)

Sound Church Ltd

Report of the Trustees and Audited Financial Statements For the year ended 31 August 2023

Sound Church Ltd Contents Page For the year ended 31 August 2023

Report of the Trustees 1 to 9
Report of the Auditors 10 to 12
Statement of Financial Activities 13
Statement of Financial Position 14
Statement of Cash Flows 15
Notes to the Financial Statements 16 to 27

Sound Church Ltd Report of the Trustees For the year ended 31 August 2023

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 2023. 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 Senior 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.

Our measures of success are as follows:

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Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2023

Grantmaking

Mission is the generic term we give to gifts that we make to other organisations and individuals that furthers our charitable objects who we are in relationship with due to the current members of the church in Bath. When gifts are given the following criteria are always looked at before the gift is given:

ACHIEVEMENTS & PERFORMANCE

Significant activities

In what was a significant year for the charity as we changed name from Freedom Centre UK to Sound Church, we continued with the same vision to advance the Christian faith, provide relief to those in need in the community, and providing support to many within the church and those who are working as church leaders, missionaries, and frontline workers in the UK and around the world.

In October we hosted the first Isaiah 61 & 58 Conference that gathered those same church leaders & missionaries together for support, training and encouragement; throughout the year we continued to host grief cafes that provided a space for people to learn to navigate grief and psychological shock; we also held our annual conferences 'The Weekend Away' and our Men's & Women's conferences where there was opportunity for connection, prayer and teaching.

Achievements against objectives

The Church has 513 people who are active members, with a regular Sunday attendance of 260 people in the morning service, averaging 90 people engaged in lunch and activities after church, and 60 people in the evening prayer meeting. Sound Church engages with 50 people on a Friday evening and 194 people attending groups and functions throughout the week.

We have approximately 145 volunteers who are a part of teams to enable to smooth running of events & services. Members volunteer in teams such as welcome teams, hosting, car parking, café, lunch teams, audio team, AV team, band, kids & youth clubs as well as the Uniform Cupboard, Grief Café and other social action response teams. The teams have meals and social times together, as well as training and meetings to enable the volunteer work to abide by all governance and policies.

We are intentional about providing volunteering opportunities as volunteering not only helps foster a sense of belonging in the community, it has been evidenced by researchers to be beneficial for mental health and well-being.

2 of 27

Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2023

FINANCIAL REVIEW

There was a net surplus on general funds for the year of £9,396, leaving total funds of £2,225,397 at 31st August 2023.

Of the total funds at 31st August 2023, £3,349 are restricted

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

Significant events

Significant events during the reporting period were rising interest rates and utility bills affecting the ongoing running costs of the charity. The trustees have monitored the increased costs and ensured financial planning has reflected the rises. An overcharge on gas was followed up with British Gas with a refund eventually being given to the charity. The church continues to have regular mortgage reviews with Stewardship.

There have been no significant incidents that required reporting to the Charity Commission in the reporting period.

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 as well as other outgoings in order to cover any shortfall in the giving to the Charity. Therefore, the Charity seeks to hold a minimum of £65,000 in reserve.

In view of the building development and additional financial commitments taken on and the impact of Covid 19 virus, the Trustees realise the Church is short of this figure and are aiming to increase reserves.

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 and feel that the momentum is increasing both with numbers and enthusiasm.

Sound Church plans to launch a Pastoral & Creative College in 2024; will continue to facilitate pastor retreats and also release music as ‘Sound Church Worship’. The social action arm of the churches projects are continuing to grow in momentum as 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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Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2023

September 2022

Leaders Day

Women’s Breakfast

Grief Café

Bath Spa & Bath Uni Freshers Fairs

Baptisms

October 2022

Glow Party & Youth Fire Pits

Young Adults Cinema Night

Hosted Isaiah 61 & 58 Conference

Uniform Cupboard

November 2022

Youth Cinema & Games Night

Young Adults Bonfire Night

Men’s Conference & Matt Hooper visited

to speak and lead Worship

Grief Café

Recording Studio Renovation

December 2022

Sound on Ice

Rebuild Pastors Apartment

Bathroom Renovation

Present Wrapping & Hampers

for Community

Carol Services & Light Shows Light Show for Schools Staff Christmas Party

4 of 27

Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2023

January 2023

Changed name to Sound Church Group Leaders Hub

Freedom Day

Heart & Soul

Alan McWilliam visited

February 2023

Kids Conference

Youth Day Away

Hosted the TRC Conference in the Auditorium

Uniform Cupboard

Betsy speaks at Doorbrekers, The Netherlands

March 2023

Rise & Build

Women’s Conference

Grief Café

Celebrating Women’s Day

Betsy spoke at City Life Church, The Hague

April 2023

Men’s overnight Trip

Easter Sunday

Uniform Cupboard

Baptisms

5 of 27

Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2023

May 2023

Church Weekend Away

Authentic Youth Festival

Group Leaders Hub

June 2023

Marriage Course Started Freedom Day

Celebrating Men day

July 2023

Summer Socials

Summer of Fun starts

Local Speakers from Church on Sundays

Marriage Course continues

Erald Van de Ridder visited to speak

August 2023

Summer Socials continues Summer of Fun continues Intercession Team Launches

Church BBQ’s

Local Speakers on Sundays

6 of 27

Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

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 (ceased 31/8/2023) Ms K Ottley Mr A McWilliam (appointed 31/8/2023)

The Chair 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.

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 Chair of the Trustees.

The charity is led by the lead pastor, Mrs E deThierry, with the support of the pastoral team. The church is 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.

Induction and training of trustees

Trustees are recruited to the Board with relevant experience to create a balance skillset across all the trustees. All new trustees are supplied with Charity Commission guidance on being an effective trustee and are provided training as needed.

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.

Trauma Recovery Global Ltd is a limited company 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 met 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. Many 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.

Auditor

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

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Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2023

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Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2023

RESPONSIBILITIES OF THE TRUSTEES

The Trustees, who 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

………………………………………….

Mrs E deThierry

17 May 2024

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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 2023 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

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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.

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.

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:

11 of 27

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

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.

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

20 May 2024

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Sound Church Ltd

Statement of Financial Activities (including Income and Expenditure Account) For the year ended 31 August 2023

Notes
Income from:
Donations and legacies
2
Charitable activities
3
Other trading activites
4
Investments
5
Other income
6
Total
Expenditure on:
Charitable activities
7/8
Total
Net income
Reconciliation of funds
Total funds brought forward at 1 September 2022
Total funds carried forward at 31 August 2023		 Unrestricted
funds
£
791,237
55,646
30,000
178
546		 Restricted
funds
£
16,013
-
-
-
-		 2023
£
807,250
55,646
30,000
178
546		 2022
£
706,351
54,041
30,000
11
1,481
877,607 16,013 893,620 791,884
(868,211) (12,664) (880,875) (747,836)
(868,211) (12,664) (880,875) (747,836)
9,396
2,212,652		 3,349
-		 12,745
2,212,652		 44,048
2,168,604
2,222,048 3,349 2,225,397 2,212,652

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Registered Number : 03642766

Sound Church Ltd Statement of Financial Position As at 31 August 2023

Notes
Fixed assets
Tangible assets
14
Current assets
15
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
17
Net assets
The funds of the charity
Restricted income funds
Unrestricted income funds
Total funds		 £
2023
4,202,285		 £
2022
4,268,332
4,268,332
16,241
36,128
52,369
(124,539)
(72,170)
4,196,162
(1,983,510)
2,212,652
-
2,212,652
4,202,285
22,601
17,976
40,577
(101,325)
(60,748)
4,141,537
(1,916,140)
2,225,397
3,349
2,222,048
2,225,397

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

Mrs E de Thierry Trustee

17 May 2024

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Sound Church Ltd Statement of Cash Flows For the year ended 31 August 2023

Cash flows from operating activities 2023 2023 2022
Surplus for the year 12,745 44,049
Adjustments for:
Investment income recognised in the statement of financial activities (178) (11)
Loss/(gain) on disposal of property, plant & equipment (546) 0
Depreciation and impairment of property, plant & equipment 81,703 81,987
Movements in working capital
Decrease / (increase) in trade & other receiveables (6,916) (8,808)
(Decrease) / increase in Creditors & other payables 10,189 (3,705)
(Decrease) / increase in deferred income (30,000) (30,000)
Cash (absorbed by) / generated from operations 66,997 83,511
Investing activities
Purchase of property, plant & equipment (16,110) (23,402)
Proceeds on disposal of property, plant & equipment 1,000 0
Investment income received 178 11
Net cash used in investing activities (14,932) (23,391)
Financing activities
Proceeds of new bank loans 0 0
Repayment of bank loans (70,218) (94,663)
Net cash generated from financing activities (70,218) (94,663)
Net decrease in cash and cash equivalents (18,153) (34,543)
Cash and cash equivalents at beginning of year 36,130 70,673
Cash and cash equivalents at end of year 17,977 36,130
Analysis of Net Debt
At 1/9/22 Cashflows At 31/8/23
Cash 36,130 (18,153) 17,977
Loans falling due within one year (77,977) 32,847 (45,130)
Loans falling due after one year (1,926,575) 37,371 (1,889,205)
Total (1,968,423) 52,065 (1,916,358)

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Sound Church Ltd Notes to the Financial Statements For the year ended 31 August 2023

1. Accounting Policies

Basis of accounting

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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 Church is dependent upon the continued support of its congregation and its bankers to meet its on-going needs. The Trustees are confident that funding will continue to be forthcoming from the congregation members. Therefore, it is the opinion of the Trustees that the Church has adequate resources to continue its operational existence for the foreseeable future and 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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Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2023

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.

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Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2023

4. Income earned from other trading activities

omparison for costs of charitable activities by fund type
Advancement of Christian faith
Support costs
Unrestricted funds
Letting of Car Park
nvestment income
Unrestricted funds
Bank interest receivable
ther income
Unrestricted funds
Gain / loss on disposal of assets
Job Retention Scheme Grant
osts of charitable activities by fund type
Advancement of Christian faith
Support costs		 Unrestricted
funds
£
459,294
408,917		 Restricted
funds
£
-
12,664		 Restricted
funds
£
-
12,664		 2023
£
30,000		 2022
£
30,000
30,000 30,000
2023
£
178		 2022
£
11
178 11
2023
£
546
-		 2022
£
-
1,481
546 1,481
2023
£
459,294
421,581		 2022
£
384,644
363,192
868,211 12,664 880,875 747,836
747,054
782
747,836

5. Investment income

6. Other income

7. Costs of charitable activities by fund type

Comparison for costs of charitable activities by fund type

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Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2023

8. Costs of charitable activities by activity type

Costs of charitable activities by activity type
Activities
directly Support
undertaken costs 2023 2022
£ £ £ £
Advancement of Christian faith 459,294 420,021 879,315 747,836
omparison for costs of charitable activities by activity type
Activities
directly
**undertaken ** Support costs 2022
£ £ £
Advancement of Christian faith 384,644 363,192 747,836

Comparison for costs of charitable activities by activity type

9. Grants payable

Community Action (The Cupboard)
Gilead Foundation
Hillsong
Hope for Justice
Sozo Ministries International
Trauma Recovery Centre
Rebuild Leaders
Other
Grants to individuals
Total Grants payable		 2023
2022
£
£
136
250
3,000
3,000
5,840
8,360
800
1,200
954
1,200
10,059
2,190
8,267
9,813
13,173
5,292
42,228
31,305
13,571
8,269
55,799
39,574

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Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2023

10. Analysis of support costs

Analysis of support costs
Advancement of Christian faith
Management
Governance costs		 2023
£
372,803
48,778		 2022
£
316,293
46,899
421,581 363,192

11. Staff costs and emoluments

Total staff costs for the year ended 31 August 2023 were:

Total staff costs for the year ended 31 August 2023 were:
2023 2022
£ £
Salaries and wages 324,898 268,073
Social security costs 21,377 19,321
Pension costs 8,165 7,426
354,439 294,820
2023 2022
Activities in furtherance of organisations objects 12 11
Management and administration 3 3
15 14

A portion of the salary cost totalling £8,266 (2022: 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.

There were no employees whose annual remuneration was more than £60,000.

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

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Sound Church Ltd

Notes to the Financial Statements Continued

For the year ended 31 August 2023

12. Key management personnel, Trustee remuneration and related party transactions

Mrs E deThierry (trustee) received a salary of £59,500 (2022: £59,500) as the Lead Pastor and pension contributions of £2,800 (2022: £2,800). This payment is permitted within the constitution of the charitable company.

Family members of Mrs E deThierry received salaries & pension contributions as follows: Mr A deThierry (Men’s Pastor, Buildings, Financial & Legal support) £47,864 & £1,370 (2022: £39,000 & £1,610) Mr J deThierry (Associate Pastor) £37,000 & £923 (2022: £35,000 & £863) Mr J deThierry (Youth Pastor, Tech & Logistics) £17,538 & £450 (2022: £11,406 & £0) Mrs N deThierry (Youth Pastor, social media & admin) £17,470 & £374 (2022: £5,435 & £0)

A family member of Mr J Needham received a salary (Kids Coordinator, Pastoral Support & Events) of £11,016 (2022: £5,067)

Aggregate donation to the charity during the year from Trustees and related parties were £57,766 (2022: £38,539)

Trauma Recovery Global 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 £14,400 (2022: £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 previously engaged by the charity to carry out the design and build contract for the erection of the new auditorium. The charity hired equipment from the company during the year for a for a fee of £4,300 (2022: £6,140)

The company owes the charity £1,943 at the year end (2022: £-556).

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 £10,058 (2022: £2,190). TRC leases premises at Freedom House from the charity, they paid rent of £16,000 (2022: £19,200). The total rent from TRC of £19,200 (2022: £19,200) 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.

21 of 27

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2023

13. Intangible fixed assets

Cost or valuation
At 01 September 2022
Disposals
At 31 August 2023
Amortisation
At 01 September 2022
Disposals
At 31 August 2023
Net book values
At 31 August 2023
At 31 August 2022		 £
Trademarks
4,442
(4,442)
-
4,442
(4,442)
-
-
-

14. Tangible fixed assets

Cost or valuation
At 01 September 2022
Additions
Disposals
At 31 August 2023
Depreciation
At 01 September 2022
Disposals
Charge for year
At 31 August 2023
Net book values
At 31 August 2023
At 31 August 2022		 Fixtures and
Fittings
Land and
Buildings
£
£
196,725
4,382,015
16,110
-
(3,399)
-
4,382,015
209,436
147,353
163,055
(2,946)
-
16,264
65,440
160,671
228,495
4,153,520
4,218,960
48,765
49,372		 Total
£
4,578,740
16,110
(3,399)
4,591,451
310,408
(2,946)
81,704
389,166
4,202,285
4,268,332

22 of 27

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2023

15. Debtors

Debtors
2023 2022
£ £
Amounts due within one year:
Amounts due by group and associated undertakings 1,944 487
Prepayments and accrued income 19,817 15,524
Other debtors 840 230
22,601 16,241

16. Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2023 2022
£ £
Loans and overdrafts 45,130 77,977
Trade creditors 2,205 1,938
Amounts due to subsidary and associated undertakings - 556
Other creditors
PAYE & social security 7,178 7,348
Accruals and deferred income 46,812 36,720
101,325 124,539

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

Creditors: amounts falling due after more than one year
2023 2022
£ £
Loans and overdrafts 1,889,205 1,926,575
Accruals and deferred income 26,935 56,935
1,916,140 1,983,510

18. Borrowings

2023 2022
£ £
Bank loans 1,934,335 2,004,552
Payable within one year 45,130 77,977
Payable after one year 1,889,205 1,926,575

The property loan from Stewardship Services (UKET) Ltd is secured on Freedom House, Lower Bristol Road, Bath, BA2 1EP and land lying west of Technology House, Lower Bristol Road, Bath, BA2 1EP. The property was remortgaged in February 2022 at an interest rate of 3.25% above the Bank of England Base Rate and is repayable over 19 years.

23 of 27

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2023

19. Deferred Income

Deferred income at 1 September 2022 86,935
Deferred income released in the year 30,000
Deferred income at 31 August 2023 56,935

In July 2019 Sound Church entered into a lease agreement for the use of its Car Parking spaces. The full amount of the agreement, £180,000, was received upfront. This was deferred and is being released over the term of the lease.

20. Company limited by guarantee

Sound Church Ltd is a company limited by guarantee and accordingly does not have a share capital.

21. Analysis of net assets between funds

24 of 27

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2023

22. Restricted funds

Fencing fund
Boiler / roofing
fund		 Balance
at 1 Sept
2021
Incoming
resources
Resources
expended
Transfers
Balance
at 1 Sept
2022
Incoming
resources
Resources
expended
Transfers
Balance
at 31
Aug
2023
18,890
132
-
782
-
18,890
-
-
16,013
12,664
3,349
18,890
132
-
782
-
18,890
-
16,013
12,664
-
3,349

During the year repairs were needed to the boiler and roof of Freedom House. A separate fund was created to record donations towards the repairs. Remaining funds at 31 August 2023 were utilised shortly after the year end to complete the repairs required.

25 of 27

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2023

23. Detailed Statement of Financial Activities

INCOME
Donations and legacies
Donations
Gift Aid
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
Gain / loss on disposal of assets
Job Retention Scheme Grant
Total incoming resources
EXPENDITURE
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
SUPPORT COSTS
Management
Depreciation		 £
2023
673,114
134,136
807,250
1,365
4,181
7,618
19,200
13,240
10,042
55,646
30,000
30,000
178
178
546
-
546		 £
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
893,620
(297,190)
(21,377)
(8,165)
(10,903)
(10,906)
(6,924)
(1,595)
(9,561)
(33,580)
(2,407)
(887)
(42,228)
(13,571)
(459,294)
(81,703)		 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)
(384,644)
(81,987)

26 of 27

Sound Church Ltd Notes to the Financial Statements Continued For the year ended 31 August 2023

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
Subscriptions
Loan interest
Building repairs & maintenance
Professional fees
Marketing
Governance costs
Wages and salaries
Accountancy fees
Audit fees
Professional fees
Total resources expended
Net Income		 -
-
(2,611)
(19,837)
(2,320)
(2,909)
(22,947)
(47,082)
(8,425)
(7,534)
(14,929)
(3,734)
(4,566)
(98,596)
(36,570)
(17,780)
(1,260)
(372,803)
(27,708)
(10,740)
(8,315)
(2,015)
(48,778)		 (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)
(880,875) (747,836)
12,745 44,048

27 of 27