OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-08-31-accounts

=~ oo

«,

ae

'

----- Start of picture text -----
|
----- End of picture text -----

.

,

.

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

) Consolidated Financial Statements For the Year Ended 31 August 2023

Charity Number: 1080638

----- Start of picture text -----
|
:
|
|
|
!
|
|
----- End of picture text -----

Company Number: 03971567

----- Start of picture text -----
GHARITY COMMISSION |
|. FIRST CONTACT
, as, Q5 JUN 2024
ae
“ e BRACCOUNTS
nee"? RECEIVED _
----- End of picture text -----

----- Start of picture text -----
|
:
|
,
----- End of picture text -----

angge . | | % t | | ! Reach Churches Ministries Limited

;

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

.

Group Trustees’ Report for the Year Ended 31 August 2023

Report of the Trustees for the Year Ended 31 August 2023

The Trustees are pleased to present their annual Directors’ report together with the consolidated financial statements of the Charity and its subsidiary for the year ended 3! August 2023 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards for Smaller entities.

Chair’s Report

Following the year end, ‘East Midland Christian Fellowships’ officially changed its name to ‘Reach Churches Ministries’. This name change will have had little impact on the Church as it has been known locally as Reach since 2018 when there was a recognition that its impact has reached far beyond the East Midlands. The name also brings into focus the mission of the Church of ‘bringing heaven to earth’ which it delivers through promotion of the Christian faith, through practical support of our communities with a particular heart for the vulnerable and an increasing regard for our environment. The largest gathering is in Derby where the buildings are used by the Church throughout the week but also serve the local business community through operating as a conference centre. There are also plans to set up a community grocer to support families who are struggling financially. Smaller gatherings in Nottingham and Leicester and beyond provide a local expression of the Church and reach out to vulnerable communities in those cities. The multicultural nature of the Church is both a challenge and a strength as we provide a home to many who have been displaced whilst we also benefit from their cultura! richness and diversity.

, ,

The deficit in the financial report is the result of an accounting change with how revenue is recognised for Reach events — previously when events were booked the revenue was recognised immediately but after seeking third party financial advice we have changed to recognising the revenue once the event has been fulfilled. This deferred income accounts for the apparent deficit and the reality is that the Church is financially stable, and has significant reserves. There is much to be thankful for.

| am grateful to all of the staff for their dedication and commitment and to those who volunteer faithfully week by week to support the activities of the Church. Whether paid or voluntary these are the ones who make the difference, who give of[their][time][and][energy][so][generously][and][who][really][do][carry][the][presence][of][ God][with][them.][Thankyou!]

David Park Chair of Directors

.

l

= a

N

1

a

|

I

| |

.

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Group Trustees’ Report for the Year Ended 31 August 2023 - continued

PURPOSES AND ACTIVITIES

Charitable Objectives

.

;

The Objects of the Charity are, for the public benefit, to:

(a) advance the Christian faith in accordance with the Statement of Beliefs appearing in the Schedule;

(b) relieve persons who are in conditions of need or hardship or who are aged or sick and to relieve the distress caused thereby; . .

(c) promote social inclusion by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society (and for the purpose of this clause “socially excluded” means being excluded from society, or part of society, as a result of being a member of a socially and/or econonucally deprived community);

(d) advance education by such means as the Trustees may consider appropriate including, without limitation, the provision of life skills training for refugees and others, and partnering with other educational providers to host their distance learning facilities;

(e) promote and fulfil such other charitable purposes as the Trustees may from time to time think fit.

.

Principal Activities

The charitable company’s principal activities continue to be the running of the churches known as Reach Derby, Reach Leicester, and Reach Nottingham, as well as fledgling start-ups in Malaga and North Africa.

Review of the Activity, Achievements and Performance during the period

When planning the activities for the period the trustees have considered the Charity Commission’s guidance on public benefit and the specific guidance on charities for the advancement of religion.

In its main activities of running churches the charity seeks to principally benefit Derby, Leicester, and Nottingham with also a view to seeing how we are also able to impact further afield in the United Kingdom and abroad. During the year whilst we have continued our involvement in local communities with the various projects and events we run across the East Midlands, we have also started to look at intentionally building systems and processes to help bring a strategic element to haw we can impact the communities and cities we are in. This is with a view to helping us grow our churches and make an even more significant and positive contribution in and around the cities we are currently placed. Reach Leicester has become more secure and established. Weekly gatherings take place, either at Holy Apostles or at intentionally accessible, multilingual and including the use of Persian worship songs. A youth intern was appointed in homes throughout the city. There is a particular emphasis on work with asylum seekers and refugees and gatherings are Sept 2023 and as a result a youth group was established, shared between Ayleston Baptist Church and Reach Leicester as neither church was big enough to establish a viable youth group on their own. This partnership has worked well and families, youth and children from both churches have benefited.

LJ

2

—=>

——_ oo ne FT

| |

; Reach Churches Ministries. Limited (A Charitable Company Limited by Guarantee)

Group Trustees’ Report for the Year Ended 31 August 2023 — continued

Reach Derby leadership team is led by Ben Rook who has now fully recovered from Long Covid, and Chipper Betts. The Church has continued to grow numerically and celebration gatherings have been introduced several times each year where people from across Reach gather together. Sundays also include active children’s work and provision for the youth. Midweek events include ‘powerhouse prayer’ and ‘Celebrate Recovery’. There is an over 50’s group and the Young Adults group. The Youth-group meets weekly and recently took 90 teenagers away for a fun-filled and spiritual few days in Staffordshire and a similar number to’ Limitless Festival’ in the summer. Other ministries continue to flourish — notably the work with church men and women where many are gathering regularly for focussed input and activity. The Hong Kong community in the church has become embedded and the intercultural feel overall is now the norm. We also had a successful Youth Mission with our partners the Message Trust in September 2022, culminating in an event for 500 unchurched teenagers. There are regular gatherings for Asylum seekers to offer support as they integrate into the UK and discipleship to help them grow in their Christian faith.

Reach Nottingham has had a turbulent year with a change of leadership. Ben Rook has stepped in to provide stability and a new structure and way of being has been established. Whilst the Church has lost some members, it’s core sense of purpose has not been altered and there are early indications of growth into the new year.

; Reach Malaga & Reach North Africa RNA is now well established with a new core of people. It is growing. The Malaga team were strengthened by a visit of some 10 people from Reach in December 2021. New possibilities to strengthen the work together across this part of the world are being explored.

' Reach Centre & Reach Events — Reach Events is functioning well and has developed into an events business with the values of the Church at its core. There is an increasing emphasis on supporting local business and increasing environmental awareness. Revenue from Reach events increased which has allowed the Church to meet its core objectives.

Theological Education - Starting September 2021, the charity has established a theological education partnership with Westminster Theological College to provide a hub for higher education qualifications. We were pleased to see 14 students sign up and we are committed to theological training for leaders across the region as a necessary part of their development.

Reach Response - Reach Response is a Reach enterprise to partner with local Christian charities and initiatives and looks to see how we can promote them and release volunteers from within Reach to help serve with these organisations. We supported 11 partner charities financially and with approximately 150 volunteers. We continue to actively engage in Derby City Mission’s Derby City Street Pastors’ project, and ‘Talk it Over’, a pregnancy options and loss support service. Also, the Derby Chaplaincy project offers support to people working in the shops in the town and for the businesses on Pride Park.

Statement of Public Benefit

The Directors confirm that they have complied with their duties under section 17 of the Charities Act 2011, with regard to public benefit. :

3

,

e

:

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Group Trustees’ Report for the Year Ended 31 August 2023 - continued

' FINANCIAL REVIEW

The principal funding sources of the charity in the year are as always the voluntary donations of its people and the gift from its trading company Riverside Event Management Limited.

|

For the year, Reach Churches Ministries Limited (‘RCML’), including its subsidiary, had income of £951,779 and expenditure of £1,147,491. This resulted in a net deficit of £195,712 for the year. The expenditure included depreciation charge of £83,039.

This being the first year of ‘normal’ trading since the covid lockdown period, the Subsidiary, Riverside Event Management Limited’s (REM) trading turnover increased by £234,757 to £424,439 (2022: £189,682).

At the end of the Financial Year the Group’s net asset position decreased by £195,712 to £918,722 (2022: £1,114,433).

Reserves :

.

Trustees are required to ensure that the charity maintains sufficient reserves to ensure effective continuity in achieving its objectives should challenging circumstances arise. The trustees have identified that it is appropriate to have a reserves policy based on the risks associated with a shortfall in donation income and/or significant unanticipated costs. The trustees consider that it is likely to take three months for the charity to change its financial model in response to a marked decrease in income or increase in expenditure and therefore the free reserves (i.e. general fund net current assets) minimum target shall be based on the net sum of the following:

:

° Approximately three months ofcharitable expenditure.

° Less, 50% of[three][months][of][ actual][income][from][unrestricted][donations,][including][a][proportion][of][ gift][aid] income. ;

;

Commercial trading activity is excluded from the calculation.

Based on the 2022/23 accounts, the Reserves required to meet the above criteria would equate to £144,300. Based on our budgeted and projected figures for the following year (2023/24), the minimum target is estimated to be £131,800

As at 31st August 2023, the actual Free Reserves available to the Charity were £152,700, which includes the proceeds from the sale of Juniper Lodge last year.

There is, therefore, an excess of £8,400 between the Reserves Policy level and the actual Free Reserves available. Based on the budgeted figures for the following year, the excess is estimated to be £20,900.

The Trustees therefore consider that the Charity has sufficient reserves to ensure effective continuity in achieving its objectives should challenging circumstances arise. .

;

PLANS FOR THE FUTURE

Conclusion - This next year we are expecting to see a steady development and growth of our core work, the development of healthy Christians in localities across the East Midlands and where we can, overseas in Spain & N. Africa.

.

4

77OT

a

ree a

t

. ‘

.

.

| |

| :

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Group Trustees’ Report for the Year Ended 31 August 2023 - continued

Reference and Administrative Details

;

Charity Name: Reach Churches Ministries Limited

Charitable Status: The charitable company has charitable status and is registered with the Charity Commission under registration number 1080638. Company Number: 03971567 , Directors: D Park (Chair) T Stokes (appointed [2.7.23) D Cavanagh (resigned 22.06.23) J M Wright (appointed 12.7.23) J Abraham - J M Leach (appointed 4.3.24) ELA Jones (resigned 31.12.22) RS Price (appointed 4.3.24) L So (resigned 25.9.22) Secretary: K C Parmar (resigned 4.3.24) , A Davies (appointed 5.3.24) Directors: The above served as Directors as indicated above. The Directors of the Company are also the Trustees of the charitable activities. Registered Office: The Riverside Centre Riverside Court Pride Park Derby DE24 8HY Bankers: Barclays Bank Plc Nottingham and Derby Team ; Level1 Chapel4 Quarter a Maid Marion Way Nottingham NGI 6HQ Senior Statutory Auditors: Haines Watts (East Midlands) Ltd 10 Stadium Business Court Millennium Way Pride Park Derby DE24 8HP_

.

.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Reach Churches Ministries Limited is a company limited by guarantee and governed by its Memorandum and Articles of Association dated | March 2000. It is registered as a charity with the Charity Commission.

5

TTII . ; ; a® on Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Group Trustees’ Report for the Year Ended 31 August 2023 - continued

Recruitment of Trustees

The Trustees may appoint a person who is willing to act to be a Trustee either to fill a vacancy or as an additional Trustee provided that appointment does not cause the number of Trustees to exceed any number fixed by or in accordance with the Articles as the maximum number of Trustees. (The number of Trustees shall be no less than three but shall not be subject to any maximum, unless determined by ordinary resolution). The Trustees are the members of the charity.

Trustees’ Induction and Training

New directors receive half a day’s overview of Reach Churches Ministries Limited organisational structure, decisionmaking processes, the recent financial performance of the charity, together with the budget and receive copies of the Memorandum and Articles of Association. Directors are referred to and encouraged to read appropriate information on their legal obligations under charity and company law, and the Charity Commission guidance on public benefit.

’ Related Parties and Cooperation with Other Organisations

In addition to the trustees a related party ofthe[charitable][company][is][a][trading][company,][Riverside][Event][Management] Limited. The principal activity of this company is the provision of room hire and related facilities; further detail is given in note 24 to the accounts. The company is a wholly owned subsidiary of the Charity and Gift Aids all of its profits to the Charity.

'

Upbeat Communities, Welcome Churches and Derby City Mission are also a related party as a number of our people are on their Board of Directors or Chief Executives, and we work closely with them on a number of projects.

Pay Policy for Senior Staff

The Trustees and the key management personnel of the charity are in charge of operating the charity on a day to day basis. Details of Trustee payments and related party transactions are disclosed in note 20 to the accounts.

,

. The pay of senior staff is reviewed annually by the payroll subcommittee who present their report / recommendations to the board of trustees for approval.

Risk Management

;

The Operations and Policy sub-committee has oversight of Risk Management and other policies within EMCF. The subcommittee is made up of two Trustees (one of whom is the Chair), Head of Finance and Operations and the Operations Manager. Risk awareness and implementation of any required policies and practices is part of the terms of reference for this committee and as such actively looks to maintain a low-risk profile for the organisation as a whole.

The following areas are categories that are monitored and under which risks may fall:

A. Strategic & Legal

;

_

C. Property

BD. Employment

. :

.

E. Financial

6

' oy

:

Reach Churches Ministries Limited

(A Charitable Company Limited by Guarantee)

Group Trustees’ Report for the Year Ended 31 August 2023 - continued

The following were areas where major risks have been identified:

A. Strategic & Legal

a. Employment Legal Expertise Mitigation:

As per previous years we maintain our counsel ofa HR Solicitor whom we have on a monthly retainer. This has once again proven to be invaluable as we have navigated some significant staffing changes in the year. In addition, we are also utilising legal expertise as we approach amending our Articles of Association.

B. Operational

a. Safeguarding Children and Adults Mitigation: :

ThirtyOneEight (an external organisation specialising in Safeguarding) are EMCF’s preferred supplier for DBS checks and expert advice and training. The organisation is used to carry out DBS checks and is used as a point of expertise for any questions arising within the organisation regarding safeguarding and legal obligations (or best practice). Creation and updating of policies and a database of all volunteers working with children, youth and vulnerable adults remains a priority with additional section to include training. A current focus which has gained more traction is to include more robust policies on vulnerable adults and safeguards against spiritual abuse.

b. IT Mitigation:

;

IT infrastructure continues to be a focus for EMCF. It already has in place secure database storage and processes (such as 2FA and virus scanning software) and encourages staff to be aware of fraudulent activities especially when it comes to spam emails. EMCF also continues to use 3™ Party IT contractors to assist in more complex problem solving and safety issues. ;

C. Property

a. Reach Centre and Bridge House

.

EMCF utilises our preferred insurance brokers and have completed an exercise to ensure that building, fabric and item values are up to date and records accurately reflect current assets.

D. Employment a. Staffing and HR

As has been mentioned already EMCF utilise a legal expert in employment law to ensure that any risks are mitigated. This has been the case with the changes required within REM.

b. Systems

,

EMCF have also invested in an online HR system to (electronically) handle leave, sickness, objectives and meetings. Whilst the system has not been launched (yet) this remains a priority to implement in the new financial year.

E. .Financial .

a. Income

Regular cashflow analysis remains in place to track the overall! financial picture and tke action as and where required.

----- Start of picture text -----
|
----- End of picture text -----

b. Fraud EMCF continues to reference Charities Commissions Guidance in handling fraud and cyber crime (hittps://www.gov.uk/guidance/protect-your-charity-from-fraud#tackling-charity-fraud-8-suidingprinciples)

7

|

| |

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Group Trustees’ Report for the Year Ended 31 August 2023 - continued

Statement of Directors’ Responsibilities The Directors (who are also trustees of the charitable activities for the purposes of charity law) are responsible for preparing the directors report and the financial statements in accordance with general applicable law and United Kingdom Accounting Standards (United Kingdom General Accepted Accounting Practice).

:

.

Company law requires the directors 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 these financial statements, the directors are required to:

.

The directors are responsible for keeping adequate accounting records that 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 safekeeping 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 the directors are aware:

° there is no relevant audit information of which the charitable company’s auditor is unaware; and ° the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

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

Members of the charitable company guarantee to contribute an amount not exceeding £10 to the assets of the charitable company in the event of winding up. The total number of such guarantees at 3) August 2023 was 6 (2022: 5).

Haines Watts were appointed as the charitable company’s auditors during the year and have expressed their willingness to continue in that capacity.

A resolution to re-appoint Haines Watts as auditors of the Company will be proposed at the Annual General Meeting.

This report has been prepared in accordance with the statement of Recommended Practice: Accounting and Reporting by Charities (effective 1° January 2019) and in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities. Approved by the Board ofTrustees on oo Mt LBL EH... and signed on its behalf by: oe Koco D Park (Director) ”

.

----- Start of picture text -----
|
----- End of picture text -----

----- Start of picture text -----
|
----- End of picture text -----

----- Start of picture text -----
‘
----- End of picture text -----

TTTTT TE

.

CD

.

Report of Independent Auditors to the Members of Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Opinion

We have audited the financial statements of Reach Churches Ministries Limited (the parent charitable company) and its subsidiary (the ‘group’) for the year ended 31 August 2023 on pages twelve to twenty five which comprise the Group and Parent Charitable Company Statement of Financial Activities, the Group and Parent Charitable Company summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheet, the Group and Parent Charitable Company Cash Flow Statement and the related notes. 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 the provisions available for small entities, in the circumstances set out in note twenty two to the financial statements, 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

:

Other information

The other information comprises the information included in the annual report, other than the financial statements and our Auditors report thereon. The Trustees are responsible for the other information. . Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial stalements or a material misstatement of[the][other][information.][If,][based][on][the][work][ we][have][performed,][we][conclude] reportthat therein thisis aregard.material misstatement of this other information,, we are required to report that fact. We have nothing to

;

9

e 1

| i |

;

Report of Independent Auditors to the Members of Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Opinion on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception In the light of the knowledge and understanding of the company and its environment obtained in the course ofthe audit, we have not identified material misstatements in the Director’s report included within the Trustees report.

We have nothing to report in respect of the following matters where 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 set out on page nine, the Trustees (who are also the directors of the charitable company for the purposes 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 has no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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

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

10

_ ee ————_—— TTT TTTTenssassasg99 gLH

1

e

|

:

. Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of[interna!][controls.]

;

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report - This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of[the] Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this.report, or for the opinions we have formed.

Alexander Butterfield — Senior Statutory Auditor

For and on behalf of Haines Watts (East Midlands) Ltd ; Statutory Auditors 10 Stadium Business Court Millennium Way Pride Park Derby DE24 8HP ,

Date YE/ 5/24,

iF

| | | }

i]

.

,

;

|

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Consolidated Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 August 2023

2023 2022
: Notes Unrestricted
Funds		 Restricted
Funds		 Total Unrestricted
Funds		 Restricted
Funds

£
£
£
£
£
£

INCOME
Donations and Legacies 426,453 14,256 440,709 607,856 34,624 642,480
,
Incomefrom CharitableActivities
Operation ofRiverside .
Church and delivery of
:
_		 Mission
Other Incoming Resources		 4 -
52,779		 27,149
-		 27,149
52,779		 -
45,891		 11,957
-		 11,957
45,891
: IncomefromOther TradingActivities Activities
Commercial Trading
Activities 429,888 - + 429,888 208,989 - 208,989
Income from Other Activities - - - - - -
Investment Income 3 1,253 - 1,253 119 - 119
910,373 41,405 951,779 862,855 46,581 909,436
EXPENDITURE
CostofRaising Funds ;
Commercial Trading Costs 318,886 - 318,886 169,957 - 169,957
Fundraising Costs 5 - - - - - -
Expenditure on Charitable Activities
Operation ofRiverside
Church and delivery of 6 .
Mission 788,437 30,697 819,134 747,847 53,992 801,839
Support Costs 7. 9,470 - 9,470 5,580 - 5,580
1,116,794 30,697 _:1,147,491 923,384 53,992 977,376
Net Income/(Expenditure) ;
Before Transfers (206,420) 10,709 =(195,712) (195,712) (60,529) (7,411) (67,940)
Transfers 2,000 (2,000) - (4,129) 4,129 :
Net Income/(Expenditure) (204,420) 8,709 (195,712) (64,658) (3,282) (67,940)
Taxation Charge - - - - - -
Net Movement in Funds (204,420) (8,709) (195,712) (64,658) (3,282) (67,940)
Reconciliation ofFunds :
Total Funds Brought Forward 15 1,057,497 56,936 1,114,433 1,122,155 60,218 1,182,373
TotalFundsCarriedForward =" 15

There were no recognised gains or losses other than those included in the Statement of Financial Activities. All incoming - resources and resources expended derive from continuing activities.

The notes on pages 15 to 25 form part of these financial statements

12

a - - a— — I — IIe

‘

°

.

’

|

|

oO

|

|

:

|

| |

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Consolidated and Charity Balance Sheet for the Year Ended 31 August 2023

Notes Group
2023		 Group
2022		 Charity
2023		 Charity
2022
; £ £ £ £
FIXED ASSETS
Tangible Fixed Asscts iF 1,726,164 1,793,058 1,726,164 1,793,058
Investments 12 - - 1 l
Total Fixed Assets 1,726,164 1,793,058 1,726,165 1,793,059
.
CURRENT ASSETS
. Debtors—Income Tax Refund 15,689 12,741 15,689 12,741
Debtors 34,837 31,384 (762) 843
Bank Accounts
DepositAccounts
:		 176,500
119,074		 71,333
347,034		 127,991
119,074		 67,587
347,034
Restricted Fund Bank Accounts
PettyCash
Prepayments and Accrued Income		 65,644
1,008
459		 56,935
632
-		 65,644
808
459		 56,935
579
-
Intercompany
TOTAL CURRENT ASSETS
CREDITORS:		 -
413,211		 -
520,059		 3,003
331,906		 -
485,719
. Amountsfallingduewithinoneyear
NETCURRENT ASSETS		 ; 13 (176,748)
236,463		 (107,844)
412,215		 (123,750)
208,156		 (106,274)
379,445
TOTAL ASSETS LESS ;
CURRENT LIABILITIES 1,962,627 2,205,273 1,934,321 _ 2,172,504
CREDITORS:
,
Amounts falling due after more than one		 year 14 (1,043,905) (1,090,840) (1,011,531) (1,052,994)
NETASSETS 918,722 1,114,433 922,790 1,119,510
THE FUNDS OF THE GROUP:
Restricted Funds 17 65,644 56,936 65,644 56,935
Unrestricted Funds:
Subsidiary
Designated		 {8 (4,068)
57,177		 (5,077)
57,177		 -
STAT7		 -
57,177
Balance ofUnrestricted Funds 799,969 1,005,397 799,969 1,005,397
853,077 1,057,497 857,146 1,062,575
TOTALCHARITYFUNDS 18 918,722 1,114,433 922,790 1,119,510

,

The Trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annua! accounts required by the Companies Act 2006 and are for circulation to members of the company. 2A DNK.Park - Director Approved by the Board: HSI (Date) : The notes on pages 15 to 25 form part of these financial statements.

13

.

  1. 009099009

.

"

°

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Consolidated Cash Flow Statement as at 31 August 2023

)

;

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |:|2023|2022| |£|£| |Net|Cash|Flow|from|Operating|Activities|25|—|20,242|153,377| |Returns|on|Investments:| |Interest|Received|:|1,253|119| |Interest|Paid|(73,569)|(47,838)| |(52,074)|105,658| |,| |Taxation|-|,|-| |Disposal|of Fixed|Assets|-|-| |Capital|Expenditure|and|Financial|Investments:| |Purchase|of|Tangible|Fixed|Assets|(16,146)|(322,590)| |(68,220)|(216,932)|.| |Financing:| |Capital|Element|of Loan|Repayments|Made|(45,488)|163,912| |Capital|Element|of Loan|Repayments|Received|-|-| |Net|Cash|Inflow/(Outfow)|(113,708)|(53,020)| |Increase/(Decrease)|in|Cash|in|the|Year|(113,708)|(53,020)| |Net|Cash|Resources|at|||September|2021|475,934|528,954|‘| |Net Cash|Resources|at 31|August|2022|362,226|475,934|;|

----- End of picture text -----

|

)

oo

14

; '

Reach Churches Ministries Limited

;

(A Charitable Company Limited by Guarantee)

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023

Statutory Information

Reach Churches Ministries Limited is a private Charitable Company, Limited by Guarantee, registered in England and Wales. The Charitable Company’s registered number and registered office can be found on page five. :

t. Accounting Policies ') Basis of Preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (Issued 1“ January 2019) — (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

‘

Group Financial Statements ‘ The financial statements consolidate the results of the charity and its wholly owned subsidiary Riverside Event Management Ltd on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure account for the charity has not been presented because the Charity has taken advantage of the exemption afforded by Section 408 of the Companies Act 2006.

Reach Churches Ministries Limited meets the definition ofa public benefit entity under FRS102.

Going Concern

The Trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern.

The financial statements are presented in sterling £1.

it) Depreciation and Fixed Assets

Fixed assets costing less than £1,000 are not capitalised. Depreciation is provided on a straight line basis at rates estimated to write off each asset over the term of its useful life. The rates in use are as follows:-

. .

Freehold Property - 2% and 10% per annum Office Equipment - 10/33% per annum Fixtures and Fittings - 10% per annum

ii!) Donations and Offerings Received Voluntary income received by way of donations and gifts is accounted for when receivable. Any resultant gift aid tax claim is included as part of[the][income][for][the][year.]

iv) Other Income Other income ts accounted for on the'accruals basis so far as is prudent to do so.

Investment income is included when receivable.

v) Donated Services and Facilities

:

Donated services and facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity, which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

.

)

15

‘

|

‘

|

;

i ;

,

----- Start of picture text -----
.
----- End of picture text -----

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023 ~ continued

vi) Expenditure and Irrecoverable VAT Expenditure is allocated to the relevant cost category in accordance with internal guidelines issued by the charity and is appropriate to the use derived from the resources. Expenditure is recognised on an accrual basis as the liability is incurred and includes VAT which cannot be recovered.

;

vii) Fund Accounting

° Unrestricted funds are available for use at the discretion. of the trustees in furtherance of the general objectives of the charity.

.

° Designated funds are unrestricted funds earmarked by the Management Committee for particular purposes. e Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal. vii) PensionsThe charity operates a defined contribution pension scheme. ;Contributions to the scheme are recognised as resources expended upon payment. The assets of the scheme are held separately from those of thé charity in an independently administered fund. Contributions payable for the year are shown within the Statement of Financial Activities.

.

ix) Limited by Guarantee

The Charity is limited by guarantee and in the event of it being wound up, every member is liable to contribute a sum not exceeding £10. There are no shares of any class either authorised or allocated.

x) Leases

Rentals payable under operating leases are charged to resources expended on a straight line basis over the pertod of the lease.

xi) Investment in Subsidiary

The investment in the subsidiary is included at cost.

xii) Deferred Taxation ; Deferred tax is provided in full in respect of taxation deferred by timing differences between treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

This accounting policy is relevant for the subsidiary only. As stated in note 10, Reach Churches Ministries Limited is a registered Charity and is thus exempt from tax on income and gains.

xiii) Debtors .

Debtors are recognised at the settlement amount owed to the Charity or prepaid.

xiii) Creditors ‘ Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that . will probably result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

xv) Financial lastruments

The Charity has financial assets and financial liabilities ofa kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. ‘ .

16

ig£€ ggg ggg,

t

‘

.

|

| |

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee) ,

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023 - continued

The key estimates and assumptions used in the Financial Statements are detailed in the accounting policies.

  1. Income from Trading Subsidiary

During the year the subsidiary company donated the majority of its profits to the charitable company as Gift Aid donations.

The income received from Riverside Event Management Limited during the year was as follows:-

2023 2023 2022
: : £ £
Rent and rates 73,356 33,333
GiftAid Donation 30,000 13,000
103,356 46,333
3. Investment Income
. Unrestricted
Funds		 Restricted
Funds		 2023
Total		 2022
Total
£ £ £ £
Interest received 1,253 - 1,253 119
4. Other Incoming Resources
Unrestricted Restricted 2023 2022
Funds Funds Total Total
£ £ £ £
Other 52,779 - 52,779 45,891
52,779 - 52,779 45,891
5. _- Fund raising trading: cost ofgoods and other costs .
‘Unrestricted ‘Restricted 2023 2022
Funds Funds Total Total
£ £ £ £
Fundraisingcosts

:

.

17

t

«

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023 - continued

6. Expenditure on Charitable Activities

6. Expenditure on Charitable Activities
Unrestricted
Funds		 Restricted
Funds		 2023
Total		 2022
Total
£ £ £ £
Redundancy Costs - - - 7,500
‘ StaffCosts,
Pastoral Fees& Expenses 400,162 915 401,077 396,937
Ministry Costs 134,381 29,382 163,763 139,080
Property Costs 138,185 - 138,185 152,308
Office Costs * 35,883 - 35,883 35,063
Mortgage and Finance Costs 73,569 - 73,569 47,838
Other Expenses - 400 400 23,113
Inter account transfers 6,257 - 6,257 -
788,437 30,697 819,134 801,839
7. Support Costs
Unrestricted Restricted 2023 2022
Funds Funds Total Total
Auditors Remuneration 4,394 - 4,394 4,430
Auditors Remuneration: non-audit 1,188 - 1,188 1,150
Accountancy Charges 3,888 3,888
8. Net Incoming Resources for the Period
‘ 2023 2022
The net incoming resources are after charging:- £ £
Depreciation oftangible fixed assets 83,039 82,681
Auditors remuneration:
Charitable Company 4,394 4,430
Other (accounts assistance) 1,188 1,150
Operatingleaserentals - 2,276

| ‘

8. Net Incoming Resources for the Period

Reach Churches Ministries Limited and Riverside Events Management Limited Directors giving in the financial year totalled £282 (2022: £7,825).

During the year the average number ofstaff employed by the group was 24 (2022: 42), the majority of staff are employed on a part time basis. No member ofstaff was paid in excess of £60,000.

2023 2022
£ £
Staffcosts note:
Salaries 475,538 423,808
Pension costs’ 21,641 19,646
Social Securitycosts 35,944 35,126
533,123 478,580
  1. Trustee Remuneration and Related Party Transactions

'

Other than in note 20, no emoluments were received by the board of trustees in their capacity as trustees.

There were no other emoluments or expenses paid to any charity trustee or persons connected with such a trustee, directly or indirectly from the funds of the company or from the property of any situation or body corporate connected with the Charity.

18

ct,

me

rw

J

:

: .

.

.

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023 - continued

Taxation
2023
£		 2022
£
Corporation Tax - - -

Reach Churches Ministries Limited is exempton tax on income and gains falling within section 505 of[the][Taxes] Act 1988 or Section 256 of the Taxation of Charitable Gains Act 1992 to the extent that they are applied to its charitable activities. No tax charges have arisen in the Charity.

1]. Analysis of Movement in Fixed Assets

GROUP Freehold Equipment
. Property and fittings Total
Cost £ . £ £
At
 September 2022
Additions
Disposals		 2,243,241
14,082
-		 445,108
2,064
-
At 31 August2023 2,257,323 447,172 2,704,495
Accumulated Depreciation
’ Atl September 2022 694,663 200,628 895,291
Charge for the year 47,507 35,532 83,039
On disposal - - -
!
At 31 August 2023 742,170 236,160 978,330
Net Book Value
At 31 August 2023 {515,153 211,012 1,726,165
At 31 August2022 {548,578 244,480 1,793,058
CHARITY Freehold Equipment
Property and fittings Total
£ £ £
Cost
At 1 September 2022 2,243,220 436,442 2,679,662
Additions
Disposals		 14,082
-		 2,064
-		 16,146
-
At 31 August 2023 2,257,302 438,506 2,695,808
Accumulated Depreciation
At
 September 2022 694,663 191,941
Charge for the year : 47,507 35,532 83,039
On disposal ~ - -
,
At 31 August 2023 742,170 227,473 969,643
Net Book Value
;		 :
At31 August2023 1,515,132 211,033 1,726,165
At31 August2022 1,548,557 244,501 1,793,058
19

___ ITT :

,

§ a

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023 - continued

;

12. Investments
:
CHARITY ) 2023 2022
£ £
Investment in Riverside EventManagement Limited 1
es eee
The company owns 100% of the issued share capital of a trading company, Riverside Event Management
Limited, whose principle activity is that of the provision ofroom hire and related facilities.
13. Creditors: Amounts falling due within one year
Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Lease Fixed Assets 5,450 5,450 5,450 5,450
Amount due to Subsidiary - - 50,000 30,000
Taxation and Social Security 14,656 22,796 8,968 18,519
Accruals 116,317 40,719 24,478 18,897
Bank Loans (Secured) 29,382 27,936 29,382 27,936
Bounce Back Loan 10,943 10,943 5,472 5,472
(76,748 107,844 123,750 106,274
  1. Creditors: Amounts falling due within one year

:

  1. Creditors: Amounts falling due after one year (Group and Charity)
Group Charity Group Charity
2023 2023 2022 2022
£ £ £ £
Bank Loans (Secured): 2 to 5 years 117,529 © 117,529 417,529 117,529
More than 5 years 860,994 860,994 891,535 891,535
Lease Fixed Assets: 2 to 5 years 634 634 6,084 6,084
Bounce Back Loans: 2 to 5 years 43,773 21,887 43,773 21,887
More than 5 years 20,975 10,487 31,919 15,909
1,043,905 1,011,531 1,090,840 1,052,994

The Bank Loans are secured by way of a fixed and floating charge over the property of[the][Charity.][Interest][is][charged] at 3.5% per annum over the Bank of England base rate prevailing. . The Bounce Back Loans are not secured and are repayable over 10 years at an interest rate of 2.5% per annum.

a

.

The leased asset is a hire purchase agreement (capital lease agreement), for the purchase of coffee machines. RCML have exercised the option to purchase the asset and it has therefore been capitalised as an asset.

----- Start of picture text -----
|
----- End of picture text -----

20

x s

ggg

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023- continued.

  1. Summary of Funds — Group

,

As at As at
31.8.22 Incoming Outgoing Transfers 31.8.23 2022
Restricted Funds $6,936 41,405 30,697 (2,000) 65,645 56,936
Unrestricted Funds 1,062,574 $89,290 796,720 2,000 857,144 1,062,574 .
Trading Subsidiary (5,077) 321,083 320,074 - (4,068) (5,077)
1,114,433 951,779 1,147,49) - 918,721 1,114,433

16. Summary of Funds — Group

As at : As at
31.8.21 Incoming Outgoing Transfers 31.8.22
2021
£ £ £ £ £
£
Restricted Funds 60,218 46,581 $3,992 4,129 56,936
60,218
Unrestricted Funds 1,418,781 653,866 705,944 (4,129) 1,062,574
1,118,781
; Trading Subsidiary 3,374 208,989 217,440 - (5,077)
3,374
1,182,373 909,436 977,376 - 1,114,433
1,182,373
.
17. Analysis ofNet Assets Between Funds
General Restricted 2023 General Restricted
2022

Fund
Funds
Total
Fund
Funds
Total
£
£
£
£
£
£

Tangible fixed assets
1,726,165
-
1,726,165
1,793,058
-
t,793,058
Investments - a - - -
-
. Current assets 288,989 65,645 411,811 463,124 59,936
520,059
Current habilities (175,350) - (175,350) (107,844) -
(107,844)
Long term liabilities (1,043,905). - (1,043,905) (1,090,840) -__
(1,090,840)
795,898 65,645 918,720 1,057,497 59,936
1,114,433

2)

eS

—————————— nn 00 rr

———————Ke

’

s

,

|

Reach Churches Ministries Limited (A Charitable Company Limited by Guarantee)

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023 — continued

18. Restricted Funds

;

The following are details of the charity’s restricted funds:-

i

At 1.9.22 Income Expenditure Expenditure Transfers At 31.8.23
£ £ £ £ £
BelperYouth 12,500 - - (2,000) 10,500
Hong Kong - 22,840 915 - 21,925
Harper 155 - 155 - -
Missions Development 4,751 - - - 4,751
Alpha 2,206 4,559 6,765 - -
Sphere Money (Synergy) 2,850 1,000 3,850 - -
BCC Hardship Fund 1,834 - 108 - 1,726
Reach Response 10,688 8,320 8,199 - 10,809
Benevolent Fund 8,617 2,704 6,091 - 5,230
Open Doors 683 - - - 683
Reach Planting 2,083 175 2,258 - -
Reach Inspiration Fund 7,081 1,807 2,356 - 6,532
ICUK - - - - -
WwTc 3,488 - - - 3,488
56,936 41,405 30,697 (2,000) 65,644
At 1.9.21 Income Expenditure Transfers At 31.8.22
£ £ £ £ £
Belper Youth
Ukraine		 -
-		 12,500
11,436		 -
11,601		 -
165		 12,500
-
Harper 155 - : - - 155
Missions Development 1,642 2,145 3,000 3,964 4,75)
Alpha 1,606 600 = - 2,206
Sphere Money (Synergy) 960 1,890 - - 2,850
BCC Hardship Fund 1,974 - 140 - 1,834
Reach Response 14,033 63 3,408 - 10,688
BenevolentFund 9,736 275 1/394 - 8,617
Open Doors . 683 - - - 683
- Reach Planting 10,527 100 8,544 - 2,083
Reach Inspiration Fund 225 8,192 1,336 - 7,081
ICUK 15,677 7,436 23,113 - -
WTC 3,000 1,944 1,456 - 3,488
60,218 46,581 53,992 4,129 56,936

.

\

22

. :

.

.

,

" Reach Churches Ministries Limited : (A Charitable Company Limited by Guarantee)

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023 — continued

.

Purposes of restricted funds:. Belper Youth A legacy was received during the prior year for the work amongst the youth specifically in Belper, and wider within the Reach (EMCF) sphere of youth work. Hong Kong | During the year, a special collection was provided by a government fund to support the integration of Hong Kong BNO Visa holders into the tocal community. Harper EMCF supports various overseas and homebased workers within the egis of the EMCF. Special collections taken for these individuals is disbursed to them to provide support for the specific ae purposes for which the collection is taken. Missions Development Development to support overseas trips, people serving overseas and in the UK, providing support to refugees. Alpha The Alpha course is an evangelistic course which seeks to introduce the basics of the Christian ‘ faith through-a series of[talks][and][discussions.] Sphere Money This money is to support the administration of an initiative of a network of churches working (Synergy) together in the UK, named as ‘Synergy', which will be registered as a charity in its own right in the near future. BCC Hardship Fund A special collection taken up by Belper to support individuals and families at a time when they ; . are unable to support themselves, and to help through the difficult period. Reach Response A special collection was taken during the year to support the work of partners that EMCF has worked with over the years and whose aims and purposes align with EMCF's. During the year the money was disbursed to various partners, principally DCM, Storehouse, Upbeat Communities, Welcome Churches, Restore, Safe Families for Children, Saffires, Hope City Furniture, Shoulder to Shoulder and Talk {t Over, which EMCF have supported over the years. Benevolent HardshipA special collection was taken during the Covid Pandemic to support the disadvantaged. The ‘ CCD . money was disbursed to various individuals facing financial difficulties during the crisis, identified by the Senior Leaders Team and Community Groups throughout Reach. The . Benevolent Fund was amalgamated with the Covid Crisis Fund during the year. A fund set up to provide suppori to those in time of financial need at the discretion of the EMCF leadership. Qpen Doors A special collection taken to support the work of Open Doors at a time ofa particular crises in an overseas country Reach Planting A special collection was taken during the year to support the EMCF members and partners to plant churches in East Midlands, the rest of UK and overseas. Reach. Inspiration The Fund was set up during the prior year to support the development of a ministry for the women within the members of the Church and the community ICUK This money is held on behalf of ICUK (Inter Cultural UK), to support the administration of an initiative which will promote the vision and values of[intercultural][church][to][Christian][groups][in] the UK. ICUK was registered as a charity in its own right in the year. WTC During the Year EMCF commenced work in partnership with the Westminster Theological College as a ‘Hub Centre’ in the Midlands to offer accredited courses in theology. A one off specific donation was received to support the provision of a digital library for the students enrolled on the WTC courses.

7

23

«

Reach Churches Ministries Limited —-

(A Charitable Company Limited by Guarantee)

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023 — continued

Support for overseas EMCF supports various overseas and homebased workers within the egis of the EMCF. Special : and homebased collections taken for these individuals is disbursed to them to provide support for the specific workers purposes for which the collection is taken. Designated The designated funds are allocated for capital projects and spiritual consultancy, the Funds balance left aside being £57,177.

  1. Financial Commitments

A photocopier lease commenced in January 2022 for a period of5 years, quarterly payments of £545 are made against this liability.

20. Related Party Transactions

No directors of the Charity had received remuneration during the period in their capacity as pastor or teacher. "There are no other related party transactions.

  1. Pension Commitment

The Charity contributes to defined contribution pension schemes. The assets are held and administered by individually selected pension providers. The pension cost charge represents contributions payable by the Charity to the pension schemes and amounts to £21,641 (2022: £19,646).

  1. FRC Ethical Standard — Provisions Available for Small Entities .

In common with many other entities of our size and nature we use our auditors to assist with the preparation of the financial statements.

23. Capital Commitment

At 31 August 2023 the Charity had no capital commitments (2022: NIL).

24. Subsidiary Company

,

Riverside Event Management Limited - The Charity owns 100% of the issued share capital of Riverside Event Management Limited (“REM”), a company registered in England and Wales (company number 04473452) the registered office is The Riverside Centre, Riverside Court, Pride Park, Derby, DE24 8HY. The subsidiary is used to further the overall objectives of the Charity by the provision of room hire and related facilities. .

24

Ps

Sd

:

.

Reach Churches Ministries Limited

(A Charitable Company Limited by Guarantee)

Notes to the Consolidated Financial Statements for the Year Ended 31 August 2023 — continued

;

A proportion of their taxable profits is given as a charitable donation to the Charity by Gift Aid; the amount for 2023 was £30,000 (2022: £13,000). A summary of the results of the subsidiary is shown below:

2023 2022
£ £
Tumover 424,439 189,682
Cost ofSales (157,927) (49,170)
Other Income - 19,307
Gross Profit 266,512 159,819
Administrative Expenses 266,503 168,269
Net (Loss)/Profit Before Tax 1,009 (8,450)
: Taxation - -
Net (Loss)/Profit AfterTax 1,009 (8,450)
NetAssets 1,009 (8,450)

25. Cash Flow Statement

Reconciliation of net movement in funds to net cash flow from operating activities:

Reconciliation of netnet movement in funds to net cash flow from operating activities: . ;
2023 2022
£ £
Net incoming resources before taxation (195,712) (67,940)
Adjustments:
Interest paid 73,569 47,838
Investment income , (1,253) (119)
Depreciation charges 83,039 82,681
(Increase)/decrease in debtors (10,453) 66,312
Increase/(decrease) in creditors 71,052 24,605
20,243 153,377

25