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: - The furtherance of religious education. - The advancement of the Christian faith including missionary activities in the United Kingdom and overseas and also including but not limited to the planning of new churches and organisations of congregations. - The relief of the poor and needy. - The relief of the sick and elderly. - Such other charitable objects for the benefit of such other charitable bodies and institutions as the committee shall in their absolute discretion see fit. 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: - A) The local church: - Have we grown numerically this year? - Have we baptised people this year? - How many children and YP come to the events that we put on for them. - How many people have benefitted from our £1.50 lunch each week? - How many people have attended our main 6 events? - How many people have decided to follow Jesus? - How many people are in groups and being discipled? - Are there testimonies of healing, transformation and breakthrough in people's lives? - Has there been financial testimonies of super natural financial provision for the congregation members personally? 1 of 27 Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2023 - B) How much are we impacting the community in a positive way: - How many uniform stalls have we run? - How much uniform has been given away? - How much food from the food bank have we given away? - How many events have we run for the local community in a crisis such as a critical incident or training for local crisis teams? - • How many prom dresses or suits have we given away? ## **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: - When giving to the organisation, the trustees decide which organisations and the amount to be given - As stated in the Trustees report, we aim to give at least 10% of our unrestricted income away in mission gifts and grants ## **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. 3 of 27 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. 7 of 27 Sound Church Ltd Report of the Trustees Continued For the year ended 31 August 2023 8 of 27 ## 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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK accounting standards and statements of recommend practice have been followed, subject to any departures disclosed and explained in the financial statements; and - prepare the financial statements on a going concern basis unless it is inappropriate to presume that this basis applies. 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: - there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the auditor is unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Approved by the Board of Trustees and signed on its behalf by …………………………………………. Mrs E deThierry 17 May 2024 9 of 27 ## 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: - give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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. 10 of 27 ## 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 - the financial statements are not in agreement with the accounting records and returns; or -certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a strategic report. ## **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: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the charity through discussions with Trustees, and from our commercial knowledge and experience of the charity sector; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Companies Act 2006, Charities Act 2011, employment legislation, health and safety, and AntiMoney Laundering laws; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of noncompliance throughout the audit. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 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: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC and relevant regulators 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 12 of 27 ## 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**| 13 of 27 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 14 of 27 ## 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)|| 15 of 27 ## 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 16 of 27 ## 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. 17 of 27 ## 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** 18 of 27 ## 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| 19 of 27 ## 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. 20 of 27 ## 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