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2022-08-31-accounts

Charity Registration No. 1072645

Company Registration No. 03578938 (England and Wales)

NEW COMMUNITY NETWORK

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

NEW COMMUNITY NETWORK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr W R Kennedy
Mr C N D Romilly
Mr A Sheen
Mrs K Swift
Mr J Cathie
Charity number 1072645
Company number 03578938
Principal address Central Hall
St Mary Street
Southampton
Hants
SO14 1NF
Registered office Central Hall
St Mary Street
Southampton
Hants
SO14 1NF
Auditor Caladine Limited
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Bankers Barclays Bank PLC
Hatton Garden Business Centre
99 Hatton Garden
London
EC1N 8DN
CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
Solicitors Blake Morgan
New Kings Court
Tollgate
Chandler's Ford
Eastleigh
Hampshire
SO53 3LG

NEW COMMUNITY NETWORK

CONTENTS

Page
Trustees' report 1-4
Statement of trustees' responsibilities 5
Independent auditor's report 6-9
Consolidated statement of financial activities 10-11
Charity statement of financial activities 12-13
Consolidated and charity statement of financial position 14
Consolidated statement of cash flows 15
Notes to the financial statements 16-32

NEW COMMUNITY NETWORK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2022

The trustees present their annual report and financial statements for the year ended 31 August 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements 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 Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The objectives of the charity are:

The Trustees have considered and have had due regard to the Commission’s guidance on public benefit and, in particular, the specific guidance on activities for the advancement of religion.

The Trustees are satisfied that the objectives of the Charity have been met, and that appropriate procedures and controls are in place to ensure continued operation.

Grant making policy

The charity is not primarily a grant making charity and does not solicit applications from organisations or individuals. We will from time to time make grants from our own funds or specifically raise funds for projects undertaken by other organisations. This would normally be in a geographical location and for a purpose we cannot undertake ourselves e.g. international crisis relief.

We will also make small grants to individuals with whom we have personal contact to enable them to achieve one of our charitable objectives. All grants are monitored to ensure they are used for the purpose that they are given.

Grants made during the year amounted to £125,277 (2021: £96,779) and were made up of £22,686 of grants to individuals (2021: £13,088) and £102,591 of grants to institutions (2021: £83,691). An analysis of institutional grants made above £10,000 is provided in note 9 in the accounts.

Achievements and performance

Advance the Christian faith

2021/22 saw many of the coronavirus pandemic and associated restrictions lifted and we were able to recommence in-person gatherings. New Community Church’s expressions of church at both Central Hall and St Andrews in Sholing began to meet again.

These have continued to be supported by a wide variety of small group activities throughout the week including Alpha courses for those exploring faith, group activities for young people, Zoom prayer meetings and learning opportunities for those who want to study in more depth.

School of Ministries is our teaching and training programme which develops and trains leaders in Christian ministry, working mainly in developing countries where leaders would be unable to attend traditional training establishments. We have now successfully translated most of the training modules into French and have been able to video record [in English] nearly all the modules for use overseas. This has resulted in a multiplication of schools, especially in a number of African nations.

NEW COMMUNITY NETWORK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Advance Education

We continue to partner with New Generation Schools Trust to deliver primary education through Hope Community School. The school are currently tenants of Central Hall as a temporary site whilst permanent facilities are being built nearby. This year the new site was secured and plans are underway to design, plan and build with an opening date of September 2024.

This year we increased from 160 to 185 children. As a church we have an agreement to provide governance, chaplaincy, volunteers and wrap-around services.

The profile and reputation of our Central Counselling and Training Service [CCTS] continued to grow with our training courses and counselling services receiving consistently positive feedback.

Promote Creative Arts

We have provided a supportive environment for artists, singers, and musicians. Pre-pandemic, local orchestras, bands, and choirs regularly used Central Hall as a performance venue. This was halted with restrictions during the pandemic but now that restrictions have lifted events are now being booked and our trading subsidiary, New Community Ventures, has begun to see a growing momentum of bookings for 2022/23.

Relief of the poor and those in need, hardship or distress

Our ‘community hub’ at Central Hall which provides an umbrella for the various caring initiatives that we operate has continued to function throughout the year. We have have been able host a variety of groups - Bake Club, Creative English classes, Special Guardians group for grandparents caring for their grandchildren as well a new initiative, Kintsugi well-being groups. The Community Cafe was open every Sunday afternoon to provide hot food and drinks for up to 100 guests.

Through the work of our Hope Community School chaplain, we have supported children and families from the local area with targeted educational and practical support. The Baby Branch has continued to operate from its base at St Andrews in Sholing, providing baby clothes and equipment to mothers in need. We have also been able to provide local community members with food through a weekly Fair Share operation.

We have continued to support the work of the Umoja group in Kibera, Kenya. This year we have been able to raise additional funds to help with food distribution and the ongoing feeding project during the pandemic. We have been able to sponsor individual children, orphanages and other relief projects in Kenya and India.

Financial review

The principal funding sources for the Charity are voluntary donations and income from hire of facilities. These funds are used to operate a number of church congregations and projects with a Christian ethos.

Voluntary giving decreased to £565,439 (2021 - £595,907). Unrestricted voluntary income, which includes donations and related tax recovered, was £476,987 (2021 - £525,852) and restricted voluntary income £88,452 (2021 - £70,055).

The Consolidated Statement of Financial Activities reports an overall deficit of £113,455 (2021 - surplus £154,678) for the year. However, this includes a depreciation charge, which is a non-cash item, of £52,885 (2021 - £53,632).

Capital expenditure in the year was £6,415 (2021: £7,996).

The balance outstanding on our bank loan as at the end of the financial year was £542,169 (2021: £571,585). New Community Ventures Ltd (NCV) made a profit of £2,385 (2021 - £53,054).

Total funds held as at 31 August 2022 were £1,221,092 (2021: £1,334,547), of which £279,987 (2021: £390,478) were restricted, and £941,105 (2021: £944,069) were unrestricted.

NEW COMMUNITY NETWORK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Reserves policy

The board of trustees has examined the charity’s requirements for reserves in the light of the main risks to the organisation. It has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets (‘the free reserves’) held by the charity should be kept to the lowest possible figure, recognising the intent and purpose of those who donate funds to the charity. However, we also recognise the need to make provision for working capital to cover the regular fluctuations in income and expenditure and accordingly our policy is to maintain free reserves at three months worth of operating costs. At this level, the board of trustees feel that they would be able to continue the current activities of the charity for a sufficient period in the event of a significant change in funding patterns to consider how the funding would be replaced or activities changed.

The group free reserves (defined as the unrestricted net current assets of the group) at 31 August 2022 were £275,995 (2021: £257,097).

Investment policy

The board of trustees has considered the most appropriate policy for investing the charity’s short-term funds and has found that interest bearing current accounts and deposit accounts, designed for the charity sector, meet their requirements to generate a reasonable return with security of capital and ease of access as projects develop. The board of trustees considers the return on investments to be adequate. The charity has no long-term cash investments.

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.

Plans for future periods

We have benefited significantly from the use of Central Hall by Hope Community School over the past 5 years. The school has now purchased a site on which to build a new school facility. This will mean that the current licence agreement will come to an end in August 2024.

We are now exploring a number of options for the future use of Central Hall recognising the impact that the loss of rental income from the school will have on the organisation.

The Trustees have commissioned a report to explore the following options:

  1. Sell the building and purchase/lease/build a new facility.

  2. Refocus our efforts to make the building an events venue with income to cover the anticipated shortfall.

  3. Look at a more creative remodelling of the building with mixed use that will create an income.

Structure, governance and management

Governing document

New Community Network is a charitable company limited by guarantee, incorporated on 10 June 1998 as The Cornerstone Network and registered as a charity on 30 November 1998. The name was changed to New Community Network at an Extraordinary General Meeting held on 19 September 2005.

The company was established under a Memorandum of Association that established the objects and powers of the charitable company and is governed under its Articles of Association which was amended by special resolution on 29 March 2022.

New Community Ventures Limited

New Community Ventures Limited is a private company limited by shares, incorporated on 27 January 2017. New Community Network owns the entire share capital.

NEW COMMUNITY NETWORK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Recruitment and appointment of board of trustees

Trustees are normally, but not exclusively, recruited from the members of the charity who are all fully supportive of our aims and practically involved in the work of the charity. We aim to keep a balance of skills and backgrounds to facilitate the efficient functioning of the group. A comprehensive package of training utilising Charity Commission publications and other materials is provided to ensure that trustees are aware of their responsibilities and the hallmarks of good governance. Under the requirements of the Memorandum and Articles of Association one third of the members of the board of trustees must retire each year at the AGM.

Organisational structure and decision making processes

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr W R Kennedy Mrs S M Frame (Resigned 17 January 2022) Mr C N D Romilly Mr A Sheen Mrs K Swift Mr J Cathie

Membership – The Charity Members form a panel of reference for the full time staff and volunteers. They meet formally at the Annual General Meeting and appoint the trustees.

Board of Trustees – The Trustees meet once per quarter to review progress against activities planned and set budgets for the year. Individual trustees work closely with staff to ensure best practice is applied and good governance is maintained.

Executive Team – The Executive Team meet monthly to oversee the day to day running of the organisation, assess the effectiveness of the various teams and manage the budget.

The pay and remuneration of the Charity’s key management personnel are set by benchmarking against equivalent roles in similar organisations in the charity sector. They are reviewed annually and are subject to individual and company performance.

Risk management

The Board of Trustees has conducted its own review of the major risks to which the charity is exposed and systems have been established to mitigate those risks. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects, and to ensure consistent quality of delivery for all operational aspects of the charitable company. These procedures are periodically reviewed to ensure that they still meet the needs of the charity.

Auditor

In accordance with the company's articles, a resolution proposing that Caladine Limited be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

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

Mr W R Kennedy Trustee Dated: .........................

NEW COMMUNITY NETWORK

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2022

The trustees, who are also the directors of New Community Network for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

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

NEW COMMUNITY NETWORK

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEW COMMUNITY NETWORK

Opinion

We have audited the financial statements of New Community Network (the 'parent charitable company') and its subsidiary together (the 'group') for the year ended 31 August 2022 which comprise the group and parent charitable company statement of financial activities, the group and parent charitable company statements of financial position, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company 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.

NEW COMMUNITY NETWORK

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF NEW COMMUNITY NETWORK

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company 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:

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 group's and parent charitable company'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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 our procedures are capable of detecting irregularities, including fraud, is detailed below.

NEW COMMUNITY NETWORK

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF NEW COMMUNITY NETWORK

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 non-compliance with laws and regulations, was as follows:

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

Audit response to risks identified

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

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

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

NEW COMMUNITY NETWORK

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF NEW COMMUNITY NETWORK

Mr Colin James Dadswell ACCA (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

NEW COMMUNITY NETWORK

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 AUGUST 2022

Notes
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Expenditure on:
Raising funds
7
Charitable activities
8
Total resources expended
209,165
Net incoming resources
before transfers
Gross transfers between funds
19
Fund balances at 1 September 2021
Fund balances at 31 August 2022
10,222
7,258
894,430
(120,713)
(10,222)
944,069
390,478
941,105
279,987
Net income/(expenditure) for the
year/Net movement in funds
(2,964)
(110,491)
483,535
209,165
Total income
901,688
88,452
410,895
-
92
-
Unrestricted
£
£
funds
funds
-
379,448
Restricted
Income and endowments from:
45,161
-
476,987
88,452		 -
-
1,103,595
993,834
(113,455)
154,678
1,334,547
1,179,869
1,221,092
1,334,547
(113,455)
154,678
658,743
990,140
1,148,512
692,700
410,895
335,091
92
148
£
£
2022
2021
482,106
379,448
Total
45,161
70,351
565,439
595,907
Total

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

NEW COMMUNITY NETWORK

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted Restricted Total
funds funds 2021
Notes £ £ £
Income and endowments from:
Donations and legacies 3 525,852 70,055 595,907
Charitable activities 4 70,351 - 70,351
Other trading activities 5 482,106 - 482,106
Investments 6 148 - 148
Total income 1,078,457 70,055 1,148,512
Expenditure on:
Raising funds 7 335,091 - 335,091
Charitable activities 8 448,279 210,464 658,743
Total resources expended 783,370 210,464 993,834
Net incoming resources
before transfers 295,087 (140,409) 154,678
Gross transfers between funds 19 6,285 (6,285) -
Net income/(expenditure) for the
year/Net movement in funds 301,372 (146,694) 154,678
Fund balances at 1 September 2020 642,697 537,172 1,179,869
Fund balances at 31 August 2021 944,069 390,478 1,334,547

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

NEW COMMUNITY NETWORK

CHARITY STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 AUGUST 2022

Donations and legacies
Charitable activities
Other trading activities
Investments
Expenditure on:
Raising funds
Charitable activities
Total resources expended
559,111
209,165
Net incoming resources
before transfers
Gross transfers between funds
Fund balances at 1 September 2021
Fund balances at 31 August 2022
£
£
Restricted
Unrestricted
funds
funds
Income and endowments from:
11,993 -
506,750
88,452
45,161 -
Total income
563,984
88,452
Net income for the year/
10,222

(120,713)
(10,222)
4,873
Net movement in funds
(5,349)
(110,491)
940,433
390,478
935,084
279,987
6,821
-
80 -
552,290
209,165		 75,631
805,442
Total
Total
2022
2021
£
£
45,161
11,993
595,202
768,276
785,354
-
-
(115,840)
101,624
(115,840)
101,624
1,330,911
1,229,287
1,215,071
1,330,911
5,757
6,821
2,138
80
886,978
652,436
761,455
783,216
148

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

NEW COMMUNITY NETWORK

CHARITY STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted Restricted Total
funds funds 2021
£ £ £
Income and endowments from:
Donations and legacies 735,387 70,055 805,442
Charitable activities 75,631 - 75,631
Other trading activities 5,757 - 5,757
Investments 148 - 148
Total income 816,923 70,055 886,978
Expenditure on:
Raising funds 2,138 - 2,138
Charitable activities 572,752 210,464 783,216
Total resources expended 574,890 210,464 785,354
Net incoming resources
before transfers 242,033 (140,409) 101,624
Gross transfers between funds 6,285 (6,285) -
Net income for the year/
Net movement in funds 248,318 (146,694) 101,624
Fund balances at 1 September 2020 692,115 537,172 1,229,287
Fund balances at 31 August 2021 940,433 390,478 1,330,911

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

NEW COMMUNITY NETWORK

STATEMENTS OF FINANCIAL POSITION

AS AT 31 AUGUST 2022

Notes
Property, plant and equipment
12
Investments
13
Inventories
Trade and other receivables
14
Cash at bank and in hand
Current liabilities
15
Net current assets
Total assets less current liabilities
Non-current liabilities
16
Net assets
Income funds
Restricted funds
19
Unrestricted funds

Current assets
Fixed assets		 555,982
647,575
941,105
944,069
-
-
611,191
681,756
52,146
70,980
2022
2021
1,182,182
1,228,651
1,182,182
1,228,651
Group
£
£
1,126
5,350

664,463
758,086
(108,481)
(110,511)
1,876,226
(517,072)
(541,679)
1,221,092
1,334,547
1,738,164
279,987
390,478
1,221,092
1,334,547		 554,984
646,578
935,084
940,433
1,000
1,000
1,226,012
570,930
570,729
135,861
1,176,159
1,225,012
2022
Charity
2021
£
£
610,953
-
40,023
1,177,159
1,872,590
(541,679)
(55,969)
(60,012)
1,732,143
(517,072)
-
1,215,071
1,330,911
279,987
390,478
706,590
1,215,071
1,330,911		 554,984
646,578
935,084
940,433
1,000
1,000
1,226,012
570,930
570,729
135,861
1,176,159
1,225,012
2022
Charity
2021
£
£
610,953
-
40,023
1,177,159
1,872,590
(541,679)
(55,969)
(60,012)
1,732,143
(517,072)
-
1,215,071
1,330,911
279,987
390,478
706,590
1,215,071
1,330,911
1,226,012
570,729
135,861
-
(60,012)
706,590
646,578
1,872,590
(541,679)
1,330,911
940,433
390,478
1,330,911

The financial statements were approved by the Trustees on _____.

…………………………………………………..

Mr W R Kennedy

Trustee

Company Registration No. 03578938

NEW COMMUNITY NETWORK

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2022

Notes
Cash flows from operating activities
Cash generated from operations
24
Investing activities
Purchase of property, plant and equipment
Proceeds on disposal of property, plant and equipment
Income from investments
Net cash used in investing activities
Financing activities
Repayment of other borrowings
Repayment of bank loans
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 £
£
£
£
(17,481)
207,068
(7,996)
-
-
92
148
(7,848)
-
(50,000)
(46,761)
(47,171)
(46,761)
(97,171)
(70,565)
102,049
681,756
579,707
611,191
681,756
2022
2021
(6,415)
(6,323)

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies

Company information

New Community Network is a charitable company limited by guarantee incorporated in England and Wales. The registered office is Central Hall, St Mary Street, Southampton, Hants, SO14 1NF.

1.1 Accounting convention

The accounts have been prepared in accordance 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 Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The 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 £.

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

The group financial statements include the accounts of New Community Network (the charity) and its subsidiary New Community Ventures Limited.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

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.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

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 is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Other trading income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies (Continued)

1.5 Expenditure

Liabilities are recognised when a constructive obligation exists, the payment is probable and the obligation can be measured or estimated reliably.

Resources expended are allocated to the particular cost centre to which they relate and include irrecoverable VAT.

Grants payable are charged in the year in which the offer is conveyed to the recipient except in those cases where the offer is conditional.

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost , net of depreciation and any impairment losses.

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

Freehold land and buildings 50 years straight line Plant and equipment 5 - 10 years straight line Fixtures and fittings 5 - 10 years straight line Computers 3 years straight line

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.

Items of equipment are capitalised where the purchase price exceeds £1,000.

1.7 Non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8 Impairment of non-current assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

1.9 Inventories

Inventories are stated at lower of cost and estimated selling price less costs to sell.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

1 Accounting policies (Continued)

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14 Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

-
525,852
70,055
Gift aid
84,640
6,445
Legacies receivable
Government furlough grant
120
24,960
-
-
Donations and gifts 2021
Donations and gifts
416,132
63,610
391,998
80,167
84,620
8,285
476,987
88,452
Donations and gifts 2022
Donations and gifts
Gift aid
Government furlough grant
369
476,987
88,452
Donations and gifts
£
£
Unrestricted
Restricted
funds
funds		 472,165
92,905
565,439
369
565,439
£
Total
2022		 £
595,907
Total
2021
479,742
91,085
120
24,960
595,907

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

4 Charitable activities 2022

4 Charitable activities 2022
Unrestricted Restricted
funds funds Total 2022 Total 2021
£ £ £ £
Fee income 41,078 - 41,078 40,568
Training fees 4,083 - 4,083 23,308
Other income - - - 6,475
45,161 - 45,161 70,351
Charitable activities 2021
Unrestricted Restricted
funds funds Total 2021
£ £ £
Fee income 40,568 - 40,568
Training fees 23,308 - 23,308
Other income 6,475 - 6,475
70,351 - 70,351
5 Other trading activities 2022
Unrestricted Restricted
funds funds Total 2022 Total 2021
£ £ £ £
Rental and hire charges 368,655 - 368,655 477,549
Trading activities 10,793 - 10,793 4,557
379,448 - 379,448 482,106
Other trading activities 2021
Unrestricted Restricted
funds funds Total 2021
£ £ £
Rental and hire charges 477,549 - 477,549
Trading activities 4,557 - 4,557
482,106 - 482,106

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

6 Investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Interest receivable 92 148
Raising funds 2022
Unrestricted Restricted
funds funds Total 2022 Total 2021
£ £ £ £
Trading costs
Staff costs 130,933 - 130,933 133,291
Cost of trading subsidiaries 17,840 - 17,840 3,376
Building costs 92,181 - 92,181 60,239
Communications 6,216 - 6,216 3,479
Finance costs 730 - 730 391
Resource costs 79,494 - 79,494 46,435
Depreciation 1,936 - 1,936 1,870
Support costs (see note 10) 81,565 - 81,565 86,010
410,895 - 410,895 335,091
Raising funds 2021
Unrestricted Restricted
funds funds Total 2021
£ £ £
Trading costs
Staff costs 133,291 - 133,291
Cost of trading subsidiaries 3,376 - 3,376
Building costs 60,239 - 60,239
Communications 3,479 - 3,479
Finance costs 391 - 391
Resource costs 46,435 - 46,435
Depreciation 1,870 - 1,870
Support costs (see note 10) 86,010 - 86,010
335,091 - 335,091

7 Raising funds 2022

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

8 Charitable activities

Staff costs
Counselling, events, courses and community work
Analysis by fund
Unrestricted funds
Restricted funds
9
Grants payable
Grants to institutions:
Umoja
Pioneer Trust
Other grants below £10,000
Grants to individuals
Grant funding of activities (see note 9)
Share of support costs (see note 10)
Share of governance costs (see note 10)		 £
483,535
209,165
2022
£
19,783
17,608
65,200
22,686
289,656
375,810
692,700
692,700
2022
86,154
125,277
125,277
180,442
11,171
102,591		 £
268,951
2021
98,181
367,132
96,779
174,779
20,053
658,743
448,279
210,464
658,743
2021
£
11,658
14,200
57,833
13,088
83,691
96,779

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

10 Support costs 2022

Staff costs
Depreciation
Counselling, events, courses and community work
Finance costs
Insurance costs
Resource costs
Other costs
Audit fees
Accountancy
Legal and professional
Analysed between
Raising funds
Charitable activities
Support costs 2021
Staff costs
Depreciation
Counselling, events, courses and community work
Finance costs
Insurance costs
Resource costs
Other costs
Audit fees
Accountancy
Legal and professional
Analysed between
Raising funds
Charitable activities		 £
£
£
£
-
50,949
-
50,949
16,047
-
16,047
19,948
-
19,948
13,116
-
13,116
-
8,906
-
8,906
-
4,680
4,680
-
5,680
5,680
-
811
811
-
£
£
£
-
-
-
-
-
-
-
4,680
5,880
9,493
-
5,492
81,565
126,068
126,068
137,059
262,007
11,171
273,178
280,842
81,565
Support
costs
Governance
costs
Total 2021
Total 2021
Governance
costs
137,059
180,442
11,171
191,613
262,007
11,171
273,178
26,973
26,973
5,492
51,762
25,559
5,492
137,059
Support
costs
Total 2022
51,762
25,559
18,965
17,491
280,842
260,789
20,053
280,842
174,779
20,053
194,832
86,010
86,010
260,789
20,053
4,461
-
-
-
51,762
25,559
18,965
17,491
4,461
4,680
5,880
9,493
5,880
9,493
18,965
17,491
4,461
4,680		 £
£
£
£
-
50,949
-
50,949
16,047
-
16,047
19,948
-
19,948
13,116
-
13,116
-
8,906
-
8,906
-
4,680
4,680
-
5,680
5,680
-
811
811
-
£
£
£
-
-
-
-
-
-
-
4,680
5,880
9,493
-
5,492
81,565
126,068
126,068
137,059
262,007
11,171
273,178
280,842
81,565
Support
costs
Governance
costs
Total 2021
Total 2021
Governance
costs
137,059
180,442
11,171
191,613
262,007
11,171
273,178
26,973
26,973
5,492
51,762
25,559
5,492
137,059
Support
costs
Total 2022
51,762
25,559
18,965
17,491
280,842
260,789
20,053
280,842
174,779
20,053
194,832
86,010
86,010
260,789
20,053
4,461
-
-
-
51,762
25,559
18,965
17,491
4,461
4,680
5,880
9,493
5,880
9,493
18,965
17,491
4,461
4,680
280,842
194,832
86,010
280,842

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

11 Employees

Number of employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension and life insurance costs		 29
29
2022
£
28,140
15,061
503,456
546,657
2022
Number		 29
2021
Number
29
2021
£
495,085
28,826
15,450
539,361

No employee earned more than £60,000 during the year (2021: none).

12 Property, plant and equipment

Cost
At 1 September 2021
Additions
Disposals
At 31 August 2022
Depreciation and impairment
At 1 September 2021
Depreciation
Eliminated in respect of disposals
At 31 August 2022
Carrying amount
At 31 August 2022
At 31 August 2021		 £
£
£
£
£
-
-
6,415
-
-
-
(575)
(575)
41,163
2,095
7,256
2,370
52,884
-
-
-
(575)
(575)
8,709
2,447
1,207,080
10,415
1,228,651
1,165,917
6,614
3,159
6,492
1,182,182
892,242
152,697
76,750
12,283
1,133,972
851,079
150,602
69,494
10,488
1,081,663
2,310,314
-
6,415
2,058,159
159,311
79,909
18,775
2,316,154
Freehold
land and
buildings
Plant and
equipment
Fixtures and
fittings
Computers
Total
2,058,159
159,311
79,909
12,935

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

13 Fixed asset investments - see note 22

Investments in subsidiaries
Cost
At 1 September 2021 & 31 August 2022
Carrying amount
At 31 August 2022
At 31 August 2021		 £
-
-
-
Group		 £
1,000
Charity
1,000
1,000
14
Trade and other receivables
Amounts falling due within one year:
Amounts owed by subsidiary undertakings
Trade receivables
Other receivables
Prepayments and accrued income		 £
£
-
-
30,976
49,799
6,023
7,590
15,147
13,591
2022
2021
Group
52,146
70,980		 £
£
2,461
2,104
6,023
7,590
6,884
3,458
2022
2021
Charity
40,023
135,861
122,709
24,655

15 Current liabilities

Notes
Bank loans
17
Other taxation and social security
Deferred income
Trade payables
Other creditors
Accruals and deferred income		 £
£
25,097
14,328
40,552
13,616
3,610
11,278
2022
2021
108,481
110,511
-
13,541
29,906
16,870
33,780
16,414
Group		 £
£
25,097
29,906
10,404
11,462
-
-
7,498
6,372
3,610
-
12,272
2022
2021
55,969
9,360
60,012
Charity

16 Non-current liabilities

Non-current liabilities
Group Charity
2022 2021 2022 2021
Notes £ £ £ £
Bank loans 17 517,072 541,679 517,072 541,679

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

17 Borrowings

Borrowings
Bank loans
Payable within one year
Payable after one year
Amounts included above which falls after five years:
Payable by instalments		 £
£
25,097
29,906
517,072
541,679
413,708
413,752
542,169
571,585
2022
2021
542,169
571,585
Group		 £
£
25,097
29,906
517,072
541,679
413,708
413,572
542,169
571,585
2022
2021
542,169
571,585
Charity
29,906
541,679
571,585
413,572

The mortgage is secured on the property at Central Hall, St Mary Street, Southampton, SO14 1NF.

18 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £15,061 (2021- £15,450)

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at 1
September Incoming Resources Balance at 31
2021 resources expended Transfers August 2022
£ £ £ £ £
Relief International:
Jeevan Asha 20,562 8,825 (8,033) - 21,354
Kibera development 10,197 21,453 (31,384) 6,000 6,266
Missionary maintenance
services 9,499 11,809 (11,068) - 10,240
School of ministry 10,650 32,080 (45,115) 8,604 6,219
Relief local:
Central hall fund 1,797 419 - - 2,216
Hardship fund 4,036 1,894 (5,631) - 299
Rest and recoup fund 284,859 - (77,505) (5,004) 202,350
SO14 Mission fund 47,312 - (17,454) - 29,858
Special Guardians 737 - (380) - 357
Minor restricted funds 829 11,972 (12,595) 622 828
390,478 88,452 (209,165) 10,222 279,987

Relief International

Jeevan Asha - Indian orphanage.

Kibera Development - Funding a school build and missionary work in Kibera. Kibera Feeding Programme - Supporting a health and feeding programme in Kibera. Kibera Pastoral Team - To fund church leader pastoral visits to Kibera. Missionary Maintenance Services - Support for D & D Coates USA. School of Ministry - Leadership development.

Relief local

Central Hall Fund - To fund ongoing renovation works to Central Hall. Hardship fund - Local relief work.

Rest and recoup Fund - To provide a place for rest, recovery and convalescence. SO14 Mission fund- To fund mission in Central Southampton.

Special Guardians - Support grandparents who are primarily carers for their grandchildren.

Transfers represent the reallocation of income and expenditure between funds.

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

19 Restricted funds 2021

Movement in funds

Balance at 1
September Incoming Resources Balance at 31
2020 resources expended Transfers August 2021
£ £ £ £ £
Relief International:
Jeevan Asha 18,537 10,070 (8,045) - 20,562
Kibera development 3,058 7,923 (15,355) 14,571 10,197
Kibera feeding programme 6,267 7,894 (5,590) (8,571) -
Missionary maintenance
services 3,025 12,480 (6,006) - 9,499
School of ministry 13,403 29,025 (40,335) 8,557 10,650
Relief local:
Central hall fund 1,116 681 - - 1,797
Hardship fund 8,613 1,045 (4,887) (735) 4,036
Rest and recoup fund 400,244 - (105,377) (10,008) 284,859
SO14 82,180 - (24,769) (10,099) 47,312
Special Guardians 50 787 (100) - 737
Minor restricted funds 679 150 - - 829
537,172 70,055 (210,464) (6,285) 390,478

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

20 Analysis of net assets between funds
Unrestricted Restricted
funds funds Total
£ £ £
Fund balances at 31 August 2022 are represented by:
Property, plant and equipment 1,182,182 - 1,182,182
Current assets/(liabilities) 275,995 279,987 555,982
Long term liabilities (517,072) - (517,072)
941,105 279,987 1,221,092
Unrestricted Restricted
funds funds Total
£ £ £
Fund balances at 31 August 2021 are represented by:
Property, plant and equipment 1,228,651 - 1,228,651
Current assets/(liabilities) 257,097 390,478 647,575
Long term liabilities (541,679) - (541,679)
944,069 390,478 1,334,547

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2022

21 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2022 2021
£ £
126,141 137,071

Billy Kennedy is a trustee of New Community Network and is also a paid employee (Chief Executive). He was paid a salary and pension contributions of £34,681 during the year ended 31 August 2022 (2021: £43,887).

Caroline Kennedy, wife of trustee Bill Kennedy was employed by the charity and received a salary and pension contributions of £5,562 during the year ended 31 August 2022 (2021: £6,778).

Billy Kennedy is a trustee of Pioneer Trust. During the year ended 31 August 2022, New Community Network made sales to Pioneer Trust of £nil (2021: £1,555), and made purchases of £816 (2021: £1,135) New Community Network also paid grants amounting to £17,608 (2021: £14,200) to Pioneer Trust during the year.

The trustees and their close family or associated companies have donated an aggregate sum of £35,788 (2021: £43,145) to the charity.

Transactions with group companies

New Community Network was owed £24,655 (2021: £122,709) from New Community Ventures Limited at 31 August 2022.

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

22 Subsidiary undertakings

New Community Ventures Limited (no. 10586696) is a wholly owned trading subsidiary of New Community Network. It runs Central Hall as an events venue. Below is a summary of its financial results and position.

Gross income
Expenditure
Surplus/(Deficit)
Distributions to parent charity under gift aid
Surplus after distributions
Total assets
Total liabilities
Equity		 2022
£
368,667
(336,519)
7,020
84,187
32,148
(29,763)
2,385
(77,167)		 2021
£
(271,576)
542,862
271,286
(218,232)
53,054
177,843
(173,208)
4,635

NEW COMMUNITY NETWORK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

23 Cash generated from operations
2022 2021
£ £
Profit/(Deficit) for the year (113,455) 154,678
Adjustments for:
Investment income recognised in statement of financial activities (92) (148)
Interest payable 17,345 16,705
Loss on disposal of property, plant and equipment - -
Depreciation and impairment of property, plant and equipment 52,884 53,633
Movements in working capital:
Decrease/(Increase) in inventories 4,224 (4,779)
Decrease/(Increase) in trade and other receivables 18,834 (11,772)
(Decrease)/Increase is trade and other payables 2,779 (1,249)
Cash generated from operations (17,481) 207,068
24 Analysis of changes in net debt
At 1
September At 31
2021 Cash flows August 2022
£ £ £
Cash at bank and in hand 681,756 (70,565) 611,191
Loans falling due within one year (29,906) 4,809 (25,097)
Loans falling due after more than one year (541,679) 24,607 (517,072)
110,171 (41,149) 69,022