Reports & Financial statements For the year ended 31 August 2021 King's Church London Company Reglstrotlon Number: Charity Registration Number: 4074651 1082666 Contents TTUStees' Report Indep8ndent Auditor's Report Statement of Financial Activities Balance Sheet Statement of Cash Flows Notes to the Financlal Statements 1-19 20-23 25 26 27-36 King's Church London Trustees, report For the year ended 31 August 2021 The Trustees, who act as directors for the purpose5 of company law. present their annual report and the audited financial statements of King's Church London I'the Charity'l tor the 12 months from I September 2020 to 31 August 2021 I'the year'l. REFERENCE AND ADMINISTRATION INFORMATION Charity name Company regislration Number Charily registralion Numbe[ Trustees Kings Church London 4074651 1082666 Simon Linley Odunayo Oyabayo William Dalziel Osberl Klass Roberta Walker Kwaku Osafo Secretary Reglslered office Nigel Mumford King's Church 21 Meadowcourt Road Lee London SE3 9DU Solicitors Wellers Teni50n House Tweedy Road Bromley Kent BRI 3NF Bankers HSBC Bank plc 149 Rushey Green Calford London SE6 4BQ Audllors Mazars LLP 6 Sullon Plaza Sutton Court Road Sufton Surrey SMI 4FS King's Church London Trustees, report For the year ended 31 August 2021 I. STRUCTURE, GOVERNANCE AND MANAGEMENT l.] Slructure The charity is an incorporated charity limited by guarantee. It was incorporated on 20 September 2000 and registered as a charity on 28 September 2000, King's Church Londor) is a diverse Chrislian church based in South-East London. It is part of the Newfronfiers family of churches as well as being a part of the Baplist Union and the Evangelical Alliance. 1.2 Governance The Truslees of King's Church London have overall legal and financial responsibility for the charily. They have delegated responsibility for the spiritual and strategic direction of the church as well as its day to day running to a team of Elders including the Senior Pastor. The Trustees are regularly apprised of the financial position of the charity and at their formol meetings discuss and review any major changes in the direction of the charity or on policy issues as they evolve and develop, Trustees are selected by existing Trustee5, in consultation wilh the Elders. They are responsible people who demonstrate a strong Christian faith. They are those with a particular area of expertise / business acumen in their secular workplace which is relevant in overseeing a significant charity which is 0150 a Christian church. When appointing new Truslees of the charity they are first invited to attend existing Trustees meetings to understand how the charity operates. Where appropriate they also atfend formal training days and conferences in the first few months of their appointment which are taken by external companies with specialist experience in running a charity. Existing Trustees will also attend orgonised training from time fo time to refresh their knowledge and skills as well as learning informally from one another, their own external networks and the Company Secretary. The Eldership meets regularly to di5CU5s and oversee the affairs of the church. They work with the other full and part time members of staff and a wide range of volunteers to implemenl the vision, values and objects of the charity. In addilion to this there is a Management Team of five led by Steve Tibbert, the Senior Pastor, who coordinate Ihe day-to-day activi*ies of the church on behalf of the Trustees and Eldership. Currently Truslee5 and Elders are discussing ways of broadening and diversifying Ihe leadership of the charity so that it reflects in some measure fhe diversity of church membership. Thi5 has been fulfilled in part but Ihere 15 Still more work to be done. The charily has six Truslees and six Elders. King's Church London Truslees, report For the year ended 31 August 2021 7.3 Risk Management Trustees have recognised the importance of assessing and managing risk associated with the charity's objectives. The process of identifying risk is on-going and is an essential part of the work of the Trustees and Managemenl Team. The charity has a set of policy and procedure documents in place to ensure on-going identification and management of foreseeable risks. These documents will be regularly reviewed to ensure Ihat they conlinue to meet the needs of the organisalion. Those relating to the operalions and finances of Ihe charity are of particular importance and a risk register has been developed based on a risk assessment procedure in line with Charily Commission guidance. 1.4 Other policies and procedures The board of Truslees have an established cyclical rhythm of review in regard to fhe key policies of the charity. These include Safeguarding, Health & Safety, Risk Management, Delegated Authority, Property Managemenl, GDPR, HR and Remuneration. In specific relation to remuneralion, we have considered the five recommendations of Ihe 'Reporl of Inquiry into Charity Senior Executive Pay and Guidance for Truslees on Setting Remuneralion published in April 2014, and endorsed by the Charities Commission, and sought to implement these as appropriale to our siluafion, All policies and procedures are under regular review lo ensure best practice and compliance not just for staff but for all those who take part in the community life of, and/or visit the church. King's Church London Trustees, report For the year ended 31 August 2021 2. AIMS AND OBJECTIVES The main objectives of King's Church London as stated in the Trust Deed ore the "advancement of the Christian Faith 2.1 Vlslon / Mlsslon A little over 20 years ago King's Church experienced a 'defining moment, when Sleve Tibbert. who leads the church, shared wifh a congregation of 200 or so, meeting in a rather run-down building, a vision parl ot which was a call from God to build a one thousand member church, In January 2012 there was a similar 'defining momenl, by which time Sunday attendance had grown to over 1.200 across 3 well equipped modem building5, as Steve again shared with the Church a 'word for now, lifting the church's eyes to the possibility of a church where 5.000 people attend each Sunday, a vision that is one worth giving our lives lo seeing fulfilled" In September 2018, with Sunday attendance averaging almost 1,500, we launched Vision 2030 which is oui vision for King'5 Church in the years lowards 2030. At thi5 time we also launched anolher site in Beckenham making King's a church of four sites. Vision 2030 is based around three key Ihemes of Reach, Resource and Restore, each of these worked out under two differenl headings. Reach "Come and See We believe we are called to build a church of 5.000 believers. each of them known by Jesus and precious lo Him. We will continue to encourage everyone at King's to invile friends, family and neighbovrs to Sunday meetings, especially at key moments such as Chrislmas and Easter, Hundreds of people have already visited King's in direct response to an invitation to "come and see" Jesus for them5elve5; for many this has been the first step in their own journey to faith. King's Church London Trustees, report Foi the year ended 31 August 2021 "Go and Tell We want each of us at King's to play our part in fulfilling Jesus, Great Commission to His church.. to "go and make disciples of all nations We believe this is a call to the many not the fewl With Ihat in mind. we will seek to equip every believer to be able to share their faith. We will encourage people to reach out in their communities. families and workplaces, lo initiate other outreach activities. and to lake every opportunity to invite people to "come and see" We also believe we should be involved in spreading the Gospel not just in London and the UK, but in the nations beyond. King's and its members already have links wilh churches in olher nation5, including Romania, South Africa ond Zimbabwe. Restore 'Inside" Over the years. King's has seen thousands of people who have come through our doors experience healing and restoration. Many have come to faith here, and as we have grown os disciples, we have had our lives radically transtormed by meeting Jesus in Ihe midsl of His people. We want this to multiply and to deepen in the future. There are a number of ways we currenlly expre55 the Gospel thal have been particularly poweiful in seeing live5 change. Obviously, this includes our Sunday meeting5, but also settings like Alpha, our groups, and courses such a5 The Marriage Course, Restored Lives (for anyone separated or divorced) and Freedom in Chrtst. We want to extend and develop these lo help bring restoralion in new areas. This will include parenting. helping people find freedom from variou5 addictions, and numerous other courses, "Outside" We have contributed towards restoration in our local communily Ihrough the Jericho Rood Project, which we want to continue. However, we want to broaden what we do in the local community 50 that our work is not only amongst the most disadvantaged. as vital as that is, bul affecls other secfion5 of sociely as well. Some of these projects will be initiated, financed and overseen through the leadership of the church, whelher they are expressed at all sites Ilike Big Red Box) or only one sile. This will include working with young people on the margins of society who are endangered by the Ihreat of serious youth violence. We will partner with charities that have particular expertise, such as the mentoring scheme for children run by Transforming Live5 for Good. King's Church London Trustee5' report For the year ended 31 August 2021 In addition, we hope to see many "mini restore projects" develop, led by individuals from King's, supported by Iheir group. Resource 'Nalionally" We believe King's has an important role lo play in the UK. Some of this comes from the facl that we are a large, urban and diveise church, and we can therefore help other churches with our example and our experience (even as we continue to learn ourselves11. Our resource5- Sunday teaching, material for groups, courses, articles, books, videos and the like- already reach widely. and we expect this to increase. We a150 have a part lo ploy in the wider Newfrontiers family we are part of. This includes the leadership given by Steve Tibbert. our Senior Pastor, and fhe theological inlluence of Andrew Wilson, our Teaching Pastor. We believe it goes well beyond this, however, and will include coaching paslors, hosting conferences, training interns, providing financial support, sharing best practice. strengthening churches. and so on. 'Globally" The Gospel crosses international boundaries, and so does our responsibility os a church. Again, some of the ways in which we work this out will be very specific. The Newfrontiers family connects us with 2,000 churches worldwide, and we will serve many of them with practical, theological, financiol and leadership resources. We continue to have a close relationship wlh River of Life Church in Harare. We have o number of things in common wth this church - size, influence, urban context. diversity, apostolic base. focus on mercy ministry among the poor. and so on - as well as many historic links with Harare and the Ebenezer Project. steve Tibbert, our Senior Pastor wa5 asked to facilitale the global fellowship of the Newfrontiers family of churches. This took effect from autumn 2020 and 15 an encouraging confirmation of our call beyond the UK. Yet we want to look beyond this. Our calling is not just to the UK, or even our family of churches, bul to the nation5, and the commission Jesus gave His church to go into all the world and make disciples. At times Ihis will mean sending missionaries, teachers, money and ski115 overseas, wilhout losing sighl of our local church in London. King's Church London Trustees, report For the year ended 31 August 2021 2.2 Values The Trustees and Elders have sought to work out how best to express the Mission and Vision Statements in the conlext of week to week church activities, values and life. At the same time they wanted to produce such statements in a form that would, if possible, provide an oppropriate way to express the financial affairs of the chority. The following three value statements aim to summarise what the charity is about, namely: lo promote and encourage our members to live a life ot Worship lo God,. to build a multi-cumural Communily of believers who are mature in their failh and who will be a blessing to the wider community in which they live and work,. to encourage members to be involved in Outreach lo those who have not yet accepted Jesus as their Lord and Saviour with the message of reconciliation: to demonstrate the love of God Ihrough helping the disadvantaged,, and through the planting of new churches. These three headings Worship, Community and Outreach are used as main headings for 5ummarising Ihe activities of the charily and thus ils financial reporting procedure5 and accounls. 2.3 Volunteers The Trustees would like to continue to acknowledge and thank the many people within King's who freely give of their time and make all thal we achieve together possible. We cannot attempt to place a volue on the immensely sigr)ificant contribution that our volunteers make, and we are grateful to them for their time and commitment to our Mission and Vision. Clearly this has been difficult across the period of the pandemic yet Ihe volunteers have continued to be a crucial part ot all that we do. 2.4 Public Benefit The Trustees are aware of their duty and seek to identify in both the report and accounts their regard to the Charities Act 2011 on Public Benefit. It is in fact a central part of our vision, that we provide support, encouragement and practical help for those disadvantaged in our local communities as well as other members of the community, not just our members. King's Church London Trustees, report For the year ended 31 August 2021 3. ACTIVITIES. OUTPUTS AND IMPACTS COVID-7 9 The Covid-19 pandemic has continued to have a significant impoct upon us as we continue lo meel and function as a church, along with the slaff team. Throughout the whole year we have continued wlh a mixture of Sunday services and groups meeting both in person, when allowed, and online as required. Online services have been provided across the whole year bul with an encouragement for people to meet together when it has been permilted to do thot and people have felt comfortable to do 50. Both the church and Ihe staff team have done exceedingly well with such a changeable and uncertain situation with both church meetings and iniliatives needing fo start and stop as the pandemic and the resulting restrictions have ebbed and flowed. As with last year's report this one reflects those changes, and how we have adapted to them, acr05S the period in question. In what follow5 we summarise how Ihe church seeks to implement its vision, values and objectives on a week-by-week basis, ond the result of aclivities in each area. This reporf as well as reporting the stalistics that relate to Ihe on-going work and growth of Ihe charily, also seeks to give examples and testimonies of where lives are different due fo the activities of the charity thereby demonslraling its commitment to Public Benefit, ond the impact il is having amongst its members, in the local community and beyond. 3.1 Worship Worship is the thrust of our Sunday meetings where, through singing, prayer and teaching that is relevant to people's lives today, we encourage people who call King's their local church. to live a life of worship to God. The meeting5 also provide a context for individuals to share personal testimony, respond to the claims of the Christian faith ond for adult baplism. Prior to the Covid-19 pandemic we were holding seven morning meetings. three at our Catford sile, two at our Downham site and one each al our Lee and Beckenham Siles. Attendance had increased wilh us regularly having oround 1,600 people present on a Sunday, At the starl of the pandemic we changed our focus to allow us to provide online Sunday services, which are accessible via our website. King's Church London Trustees, report For the year ended 31 August 2021 These were well 'attended' with an estimated 2,000-2,500 people on o Sunday with addilional people viewing the service across the following week. This reflects the fact that there is a strong core of the church who conlinue to attend online. along with the extensive reach that we have as a church. Throughout this period we have continued to provide our online service whilst at the same time, and when appropriale to do so, provided in person meetings. The ability to provide a dual platform has enabled the church to continue to "meet" and worship logether as appropriate, and to maximise the opportunities for the church to re-gather, re-connect and enjoy community life for those Ihat are confident to do so. There is childien's work for ages 0-4, 5-8 and 9-1 O and youth work for ages 11-14 and 15- 18. This children's work continues to flourish. We are enjoying bringing Jesus to the children thiough fun games, worship, bible teaching and looking at the bible a5 well as completing craft activities each week. We work hard at developing our teams and our team leaders. In each of the children's work areas we follow bright and varied curriculums which are age appropriate. We are enjoying seeing these broughl to life by leaders creatively communicating them to the children. Our children's work is structured lo get the best from our children and help parents feel comfortable leaving their children in our care as they feel confident their child is being well cared for. With all of oui Sunday activities initially moving online we provided a 'Kings at Home, series. This includes weekly videos providing fun activities and teaching to help keep families and children engaged during Ihe pandemic. Duiing this period we ran combination of adult and children'5 Sunday meetings in order to supporl the children and families of Kings. As part of a minislry for the Deaf community at King's each week we interpret the worship and leaching into BSL, in the 9.30 meeting al the Calford Site. During the pandemic we have ensured that there are specific online services with BSL interpretation as we continue to support this communily. The deaf community, when allowed, also meet in their own meeting once a month at the Lee site, The needs of the disadvanlaged in society ore always o challenge and so we continue to work hard to serve our deaf communily not least by training those who ore able to sign in our worship services on a Sunday morning. King's Church London Trustees, report For the year ended 31 August 2021 3.2 Community Community life is worked out in a number of ways at King's Church. 3.2.1 The Group system. This is an opportunily for individuals from Ihe diverse backgrounds who call King's their local church to meet together, often in homes, but also at our sites. We encourage people to develop friendship and work out their Christian faith, not just in discussion but in ocl and deed. Some of the groups will have a more specific reason for meeting together such os. the Wednesday Welcome meeling and lunch for the elderly in our community, and the BSL small group where deaf and hearing come together. Due to the pandemic our group5 have moved online ond nearly all of our groups have continued to be well attended by a cross section of our community. We put a lol of work into launching and promoting these groups as a result of our commitment fo 'group life, within the church. The results of this continue to be extremely encouraging with over 1000 odults attending groups each week. Although predominantly online the groups have worked well and we have continued to encourage people to 'attend' as much as they can so that community is maintained as much as possible. We have an e5toblished youlh work wilh around 40 1 I s-18s altending each week. This runs on fhe Cafford and Lee sites when possible. We also have a thriving 18's-30's work called United. This regularly gathers around 80 people on a weekly basis across the Catford, Downham and Lee sites. Where necessary both of these activities have been meeting online when unable to meet in person. All of our sites have a number of Group5 where people can meet regularly. These groups serve many purposes including helping those attending the church to get to know one another ond for regular friendship and encouragement. 3.2.2 A wide Tange of serving opportunities There are many opportunities which allow most of the congregation to have some involvement in expressing their Christian faith practically as they work together and serve others. This might be through being a part of the Welcome Team serving on a Sunday at one of our siles, working on an Alpha catering team. as part of 'the Feasl leam, helping those who are less fortunale amongst us. Or perhaps as a part of the Worship group on a Sunday or working with ID on a Friday night where the I I to 18 age range meet in a relaxed otmosphere to support the needs of young people as they mature into tomorrow'5 adult population. 10 King's Church London Trustees, report For the year ended 31 August 2021 3.2.3 Courses, Semlnars and Tralning opportunities We have found Ihat more and more people like to be part of our community by joining and taking parl in short lerm courses and seminor5. 'Freedom in Christ, is a discipleship course for Christians lasting 9 weeks which we run Iwice a year when able to do so. The course lays a biblical foundation for Christians about their identily in Christ and how that should affec* their thinking, how they handle their emotions as well as their spiritual life. There is also teaching which aims to help Ihem process past hurtful events, forgive and receive emotional healing. There are other courses which ore run when we are able to do so, these aim to heSp people to grow in God and equip them lo make good life choices, for example.. The Marriage Course- an annual course which helps to enrich people's marriages. Thi5 course is deliberately kept to a small number of couples to make it manageable and personal. Relatlonship Matters which helps people build strong relationships and prepare for marriage. Over the last year approximately 20 people have attended this. stewardship - an annual Seminar about handling money wisely. Leadership Training- we provide a number of opportunities which help people fulfil their potential and thereby also help the church grow and expand. Membershlp Mornlngs- we encourage people to become members of the church and we facilitate Ihis by hosting sessions which explain our vision and values as well as what it means to be a member of King's Church. 3.3 Outreach Whilst there are aspects of worship and community that relale to reaching out lo others, Ihere are a number of activities where this is specifically focused. 3.3.1 The Alpha Course Alpha hos been running at King's every term since September 1996. During that period over 3.550 people have attended and al least 842 people have responded to the Gospel. We have continued to run our Alpha courses online, but the last two courses have adopted a hybrid model and included a number of in-person meetings to strengthen community building and connecfedness. King's Church London Trustees, report For the year ended 31 August 2021 3.3.I The Alpha Course (conllnued) From Seplember2020 fo August 2021 we ran four Alpha courses with I I I people attending, and we estimate that l O people came lo Chiist. A significant number of people who had already responded to the Gospel began attending our online services land in-person where available), joining groups and serving team5. Alpha has provided a conlext for people to recommil their lives to Christ and to receive teaching about the work of fhe HOSY Spirit. We also ran two New Life courses with approximately 33 people attending. The New Life discipleship course is a follow-up course after Alpha, A5 a result of that course and also Alpha a number of those people have made the decision to be baptised. For instance. two people who attended Alpha during this period were baplised iii July 2021. The restrictions on baptisms meant thal we had fewer baptism services than usual meaning thot there are now a number of people waiting to be baptised. Many others have taken steps forward in their walk wilh God and have connected into the life of the church. 3.3.2 The Jericho Road Project The Jericho Road Project IJRPI seeks to provide support lo the disadvanlaged in Lewisham and Greenwich. Much of our work goes into the on-going running of six low support housing units which allow us to help 28 individuals from rough sleeping and homeless backgrounds. Every resident completes a support plan and meets regularly with a key worker to ensure progre55 is being made. The demand for places on the housing project is very high and we receive referrals from a wde range of services in South-East London. In this lasl year we have continued to respond to the Covid 19 pandemic by supporting our residenls, particularly wilh their own wellbeing. There have been mental heollh challenges for a number of them. Another consequence of the pandemic has been a reduced number of 'move-on's' for our residents into Iheir own accommodation. We do however anticipate Ihi5 will Irend will change in the year ohead. 12 King's Church London Trustees, report For the year ended 31 August 2021 3.3.2 The Jericho Road Project {continued} We hove run "The Feast" a weekly drop-ln for anyone who is rough sleeping, homeless, vulnerable or lonely since January 2002. At the start of the lockdown we lurned the Feast into a delivery service. We cook all the meals at our Catford building and then teams take them out across Lewi5ham boiough to vulnerable people. We reached our capacity of 400 hot meals every week wilh 30 delivery teams over 3 nights. Our goal was to encourage people fo Stay indoors, have nulritious food and provide hope. We finished the delivery service in June 2021 in order to prepare for a relurn to in-person Feast events. Another key initiative for the JRP is the Blg Red Box project, previously only a Christmas initiative. Through the year we transilioned lo a weekly distribution and conlinue to support those in the Lewisham borough who might othetwise go withoul. This allowed u5 to reduce the dependency for hot meals and enable people to transition to cooking for themselve5 wilh the food we have sent out in Big Red Boxes. We continue Éo play a significant role in reducing rough sleeping in the borough and our slaff take parl in the bi-monthly Lewisham borough street counts. This has been a year for the JRP to be a strong leader in providing care and 5UPPOrt to a wider community Struggling through the pandemic. Our three words Relief, Hope and Conneclion continue to define all that we do. Relief is our front-line work- providing hot and cold food a5 well as housing. Hope is found though our support of individuals and through the year we have been able to increase the amount of betrienders we have trained for conlacting people. And finally, conneCt￿On is the wider support provided to residents when they move on into independent living. In summary we have had a significant opportunily to help those who are disadvantaged and vulnerable in our local community. The project and the church have been able to provide o valuable response in a very difficult lime Ihat has been bolh flexible and effective in continuing to provide public benetil. 3.3.3 Training and other involvement wlthin Newlrontlers Kings conlinues to host a number of training events for the benefit of both Kings, other local churches and other churches in the Newfrontiers fami5y. We also continue to be involved internationally, supporting ministries in India and Romania as well as our continued involvement wilh, and support of, projects in Zimbabwe. 13 King's Church London Trustee5' report For the year ended 31 August 2021 4. ACHIEVEMENTS AND PROGRESS DURING THE PERIOD As Stated earlier in this report the Covid-19 pandemic has continued to have a significant impact on fhe running of the church. both for the staff and Ihose who call King's Church their home church. We have continued to adapl the way we work in every area of church life as the pandemic hos progressed. We have been producing online services each week, along with other resources for both adults and children, The slaff team have adapted extremely well to all of the changes both in ferms of handling the changes fo the ways in which we 'meel' 05 a church and the different way of working. The International Academy of Greenwich has had a very small number of sludents across this year both due to the pandemic and only one small yeor group remaining, They effectively finished at the end of the summer school term with their lease running until the end of August when the space leased by them was returned to King's. Although the refurbishment of the Catford site has been postponed we have carried out works across all of our sites to ensure their ongoing maintenance and also lo complete other works which were easier due to lower occupalion of the buildings. So, anolher challenging year for the church as we have continued to navigate our way through the pandemic, but we are very encouraged by the response of both the people who call King's their home church and the staff team. In the midst of very challenging pastoral situations people remain in good hearl and are slill very supportive of the church and all Ihat we are doing. We are particularly pleased by the hard work and impact of the various aclivifies undertaken by the Jericho Road Project who have conlinued lo odapt very well and are doing a tremendous job of helping to meet the needs of the more vulnerable in bolh the church and our local community. We look forward to the year ahead with renewed optimism thal restrictions wll continue to ease, that the church will be able to meet together and thot church life will be able to return to a sense of normality. 14 King's Church London Trustees, report For the year ended 31 August 2021 5. FINANCIAL REVIEW 5. I Overview The year ended 31 August 2021 had a surplus of income over expenditure and the unre51ricled Surplus after Iransfers has been odded to the General Fund. The outlook 15 for continued Surpluses. The parficular strenglh of the financial activities ha5 been Ihe consistency in giving income, despite the impact of the coronavirus pandemic. The letting of surplus space to a school has come to an end; the current plans are to now utilise this space for the purposes of the church. The charity retains a strong balance sheet. At the end of the year, it had a strong asset base compared to its long-term liabilities and strong liquidity with substantial cash holdings. It was able to make an extra capital repayment during the year, over and , above the agreed repayment schedule on ils loans. 5.2 Principal funding sources King's relies very largely on the generosily of its congregation to fund its activilies. The total of given income was £2.056.463 which has held steady. compared to £2,151,752 for the previous year which contained a one off legacy gift of £48,421. The letting of the first floor at Lee provided temporary additional income of £329,483 in the year (previous year: £327,774). This h05 now ceased and the previous occupant is funding the necessary renovations to bring the space back to its original good condition. 5.3 Related partles King's Church London is part of Ihe family of churches known as Newfrontiers. Newfrontiers 15 a network of churche5 who porlner logether on a mission. steve Tibbert, the Senior Pastor, continue5 to be a member of the inlernotional ap05tolic gathering of Newfrontiers and continues as a Director of the Newfrontiers charity. He receives no remuneration from Newfrontiers. Transactions with related parties are detailed in note 9 of the financial statements. King's Church London Trustees, report For the year ended 31 August 2021 5.4 Investment powers and policy The Trustees take appropriate odvice related to investment as and when required in order to maximise the effective stewardship of our income and our reserves. including keeping funds above our immediate needs placed on Ihe money market to earn an appropriate rate of interest. 5.5 Reserves policy The balances in the General Fund and Designated Property Fund represent *he unreslricled funds arising from the past operations of Ihe charity. The Trustees believe that an amount equivalent to a minimum of Iwo So three months gr05s expendilure is needed in Reserve for use as working capital. This will provide for regular fluctuations in income and expenditure throughout the year. Income and expenditure budgets and forecasts are produced on a rolling five-year basis and these are reviewed monthly. The expendilure budget for all funds for the 2021122 year is approximately £2,200,000, Based on the above, ongoing reserves of belween £370.000 and £550,000 are appropriate. The balance on the General Fund at 31 August 2021 was £696,053 with Free Reserves of £665,009. Thus the reserves are towards fjhe higher end of the minimum requirement, and this is mainly a result of stopping planned refurbishment works at our Catford Site, due to the impact of Covid-19. As the pandemic continues to evolve and hopefully, come5 to on end, the Truslees are reviewing plans to utilise the additional reserves. 5.6 Restricted Funds Reslricted Funds are given for restricted purposes and are Sel aside for specific projects at the requesl of Ihe donor. The two main Restricted Funds are social action work (the Jericho Road Project) and Vision 2030. In addition, a new reslricted fund wa5 opened at the start of the pandemic, the Hope Fund, to offer svpport and relief to those locally and internalionally who are severely affected by coronavirus. The Jericho Road Project showed a small surplus of £5,440 for the year. 16 King's Church London Trustees, report For the year ended 31 August 2021 Restrlcled Funds (conllnued) The purpose of the Vision 2030 fund is to help ministry expansion on our existing sites and the development of more siles in the future. The consistent giving into this fund has firstly enabled the charity to fulfil its loan repayment schedule to our funding partner, Triodos Bank, and secondly to fund further development. There has been initial expenditure on professional fees in respect of furlher development plonned for the Calford site. This was put on hold at the time of the coronavirus pandemic as a measure to protect our reseNes and can be reinstoted when appropriate. The Hope Fund had external donafions of £36,336 in the year,. at the year end a balance of £40,148 remained to be disbursed. 5.7 Grant-making policy Donations are made lo both institutions and individuals by the charity, as part of achieving its activities and objectives. Gifts lo individuals represent responses to particular need5 and 5UPPOrt for those working overseas. 6. PLANS FOR FUTURE PERIODS As the Covid-19 pandemic has conlinued the Charity continues to review capital expenditure, new 5tafffing and general operating costs. The review includes plan5 for the re-opening of worship at our premises and for staff to return to the offices once it is permissible to do so following government guideline5. One result of the review has been to protect a very strong reserve base now and going forward. This enables the church to mainlain consistent operational delivery. Currenfly, the year to Augusl 2022 is forecast lo produce modest surpluses of income over expenditure in Ihe General Fund and in the Jericho Road Project, and a modest utilisation of reserves in Ihe Vision 2030 Fund. The 5-year forecast also continues to indicale robust finances to undergird the work of the church going forward and the church will continue to work out and develop its vision a5 Spelled out earlier in this report. As part of the church's response to Ihe Covid-19 pondemic il parlicipated in the Love Your Neighbour project in participation with Holy Trinity Brompton to provide large-scale practical support to the localities in which the church operates. This required substantial resources to be found from wifhin Ihe church and was a further call on the remarkable generosity of those commilted to the church. 17 King's Church London Trustees, report For the year ended 31 August 2021 6. PLANS FOR FUTURE PERIODS (contlnued) This short-terrn project c105ed at the end of the period but highlighted a need, which through the Hope fund. provided a way for us to continue a similar food project af the start of the following year. This enabled King's to keep supporting those in most need for food as part of our response to the impact of Covid-19. We will also continue to review our general processes and sfaffing structures to ensure we are conslantly meeting the current needs of the church. The oveiall financial aim is to realise further expansion whilst continuing to pay off the church's bank debt at least as fast as the existing schedule. 7. STATEMENT OF TRUSTEES, RESPONSIBILITIES This Trustees, Report and audited financial statements are prepared in occordance with Ihe Memorandum and Articles of Association, the Companies Acl 2006, the Charities Acf 2011 and the Charities Statement of Recommended Practice IFRSI 0212019. Law applicable to charities in England and Wales requires the Trustees to prepare financial slatements for each financial year which give o true and fair view of the charity's financial activities during the year and of ils financial position at Ihe end of the year. In preparing financial statements giving a Irue and fair view, the Trustee5 should follow best practice and.. select suitable accounting policies and then apply them consistently; make judgements and estimates which are reasonable and prudent; state whether applicable accounting standards have been followed, subject lo any material deparlures disclosed and explained in the financial slatements,. and prepare the financial statements on a going concern basis unless It is inappropriate to presume that the charity will conlinue in operation. The Truslees are responsible for keeping accounling records which disclose with reasonable accuracy the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. Being responsible for safeguarding the assels of the charity they ensure reasonable steps are in place lo prevent and detect fraud and other irregularities. King's Church London Trustees, report For the year ended 31 August 2021 Each of the Trustees at the date of approval of this report confirms that: so far as the Trustees are aware, there is no relevant audit information of which the charity's auditors are unaware: and 2. the Trustees have taken all the steps that Ihey ought to have taken to moke themselves aware of any relevanf audit information and to eslablish Ihat the charity's auditors are oware of thal informalion. This confirmation is given. and should be interpreted in accordance wilh, the Companies Act 2006. 8. AUDITORS Mazars LLP have indicated their willingne55 to conlinue in office as auditors. Approved by the Trustees on signed on their behalf by Simon Li 19 King's Church London Auditor's report For the year ended 31 August 2021 Opinion We have auditcd the financial s'tatements of Kiiig's Church London (the 'ehaiity:) for the year ended 31 August 2021 which comprisc the Stalenient of Financial Activities. the Balance Sheet. the Statement of Cash Flows aiid nole.% to the finanLtdl statemenls, including a summary of sigiiilicant accoLUiting policies. 'I'he rindllLial i'eportinL fi'amework that has been applied in Ihesr prttparation ili applicable law and United Kingdo AcLOlllltiiig stdild￿'d8, inLludiiiL FRS 102 "The Financial Repoiling St￿nd￿rd applicable in the UK and RLpubli¢ of Ireland" (Uniled Kingdom Gcnerally Accepted Accounting Practice). In our opinion. the fiiiancial statements: give a true and tair view of the State of the charity's affairs as at 31 August 2021 and of its income and expend&ture for the yeai then ended. havc been properly prcpared in acCordi￿Ce with United Kingdom Generally Acccpted Accounting Practice. and have been prepared in accordance with the requirements of tbe Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standard5 on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditoi s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordanec with the ethical iiquirements ihat are relevant to our aiidit of the financial statements in the UK, including the bRC's Etiiical Standard and we have fulfilled our other ethiLal iEsponsibilities in accord￿lce wilh tliese requirements. We believe that the audit evideiiLe we have obtained is sufficient and appiopriate to provide a basis for our opinion. Conclusions relating to going concern In audiling the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the PTeparation of the financial statements is appropi'iatc. Based on the work we have pei'formed: we huve not identified any malerial unceitainties relating to evenls oi. oiiditions Ihat, individually or collcclively, Inay cast significant doubt oil the Lli¢ll'ity's ability to continue as a goillg concein for a period ot at least twelve months from when thc financial statements are authorised foi. issue. Tesponsibilities and tbe iEsponsibilities of tlic trustees with r¢spect to going coiicem ar¢ described in the relevant sections of this report. Other information The other information comprises the infoiThation included in the dimual repoi't, othei. than the financial statctneiits and oui. auditoi s i'epuit thereon. The ti'ustees ￿'e responsible loi the other infom]ation. Our opinson on the financial statements does not cover the otlier infonnation and. exeept to the exlent otheiwise explicitly stated in oiii. rcport. we do not express any fonn of assui'ance conclusion tlieiEon. 20 King's Church London Auditor's report For the year ended 31 August 2021 In connection willi our audit of Ilie fir5anci(1151ateiT]en15, oul. responsibility is to read the other information and, in doing so, considei. whethei. the othei. infoiTnation is matei'ially inconsi5teIil with the financial slateInentb or ow- kiiowledge obtained in the coursc of the audit, or otlierwise appeals to be niaterially misstated. If we identify such material inconsistencies or apparent material misstaternents. we air requlled to deterniine wlieihei. there is a malei'ial mi55tatemenl in the financial staternents or a material misstatemeiit of the otl)er inforjiiation. 11, based on the woi'k we have perfomied, we conclude that there is a material misstatement of this othei. information, we are i'equii-ed to iEporl thal fact. We have nothing to report in this regard. Opinions on other matters prescribed by tho Companios Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the infoi-mation givcn in thc 'frnstCC5' Rcport which includes the gtrategic Repoit and the DirectOTS' Repoit prcpared for the puiyoseg of ¢oinpany law, foi. the finaiicial yeai for which the financial statemeJ)Is are prepared is consistenl with the financiul statements. and the SITategic Report and the Directoi's. Report included within the Trustees. Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In light of the knowledge and understanding of thc charity and its environment obtained in the course of the audit, we have not identified niaterial illisstatements in the Strategic Report or thc Directors, Report ineluded WLthin the Tru5tees' Report. We have notEiing to i'eport in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion.. adequate and proper accounting r¢cords have nnl been kept, or i'eturns adequate foT our audit have not been TeLeived fTom bTanches not visiled by us- or Ilie fiiiancial statemei)ts are not in agi'eeinent with the accounting records and returns. OT certain disclosures of tl'UStees' reniunei'ation 8pecified by law are nol rnadc- or we have not received all the inforniation and explanations we i'eqiiii'e for oui. audit. Responsibilities of Trustees As explained more fully in the tiustees, responsibilities statement set out on pages 18 and 19, tIIL trustees (who al'e also the directors of the chdrilable company for the i)urposes of coinpany law) al'e responsible foi. the piEparation of the fillancial statements and for beÈng salistied that t]iey give a tiNe dnd fnir view. and for 5ucb inteinal conlrol as the trustees detennine is necessary to enable Ihe prepaiatioii ol. financial slatements that are free from material misstatement. whetber due to fraud or aTOr. In preparing the fjnancial statemeiits, tlie trustees ate iespon5ible foT assessing the charity's ability to continue as a going Concei.￿ disclosing, as applicable, matters related to going concei'n and using the going concei basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no i'eali5tic allernative but to do so. 21 King's Church London Audltor's report For the year ended 31 Augusl 2021 Auditor's responsibilities for the audit of the financial statements Our objectives are to nbtain reasoiiahle assurance about whether the financkal slateinents a5 a whole are fire from inatei'ial inisstatement. whethei. due to fraud or en'or, and to 15suc an 8uditOT'S i'eport that includes OUT opinion. Reasonable assurance is a high level of assurance but is not a gUar<￿1¢e that an audit conducted in accordance with ISAS (UK) will always detect a material n]isstatement when it exists. Mi5.Statcrncnt5 can arise from fraud or error and are considered material if, individulilly or in tlie aggregale, they Could reasonably be expectcd to influcncc the economic decisions of users taken on the basis of the finanoial statements. Irregularities, including fraud, ate instances of non-compliance with laws and regulations. We design pi'oLvdui'es in line witl) our responsibilitlLS. Outlined above, lo detect material inisstatements in Tespect of inrgularities, including fraud. Based on our uiidergtanding of King's Church London and its activities, we identified that the principd] risks of non-compliance with laws and rLgulations related to the Charitie5 Act 2011, UK tax legislation, pcn5ions Icgislalion. employment regulation and healtli and safety regulation, anti- bribery, comiption and fraud. money lauiidering, non-compli(InLe with implemenlalion of govemment suppoi'l schcmcs relating to COVID-19, and we considered Ihe exteiit to whtch non-compliance might have a matcrial effect on the financial statemen15. We also c0115idei.ed those laws and regulations Ili¢it have a direcl impact on the pi'epai'ation of the financial statements, such as thc Companics Act 2006 and the Charities Statement of Recommended Practice. Wc cvaluated the trustees. and management's incentives and opportunities for fraudulent manipulation ot-the fiiianLial stat¢ni¢ntq (inLIuding Ilie i'isk of oveiTide of conts'ols) and determined that tlie pi-incipal Tisks wcre related to posting manual journal entries to manipulate financial pcrfonnanee, mana8eincnt bias throiigh judgemcDts and assumpiions in signiticanl aceounlingtr estimates, in particul￿ in relatioii to use of restrictcd aiid endowment funds, and significant one-off oi. unusual transactions. Oiw audit piocedLll'es were designed to respond to those identified risk5, including non-compliance with laws and regulations (irregularities) and fi'aud that aLt mat¢Tial to the financial statements,. Our audit procedures included biit were not limited to.. Discussing with the trustee5 and manageinent their policies and pro¢edures re8￿.dIng compliance with law5 and i'egjulations. Corrlmiinicating &dcntified laws and regulations thi-oughoiit our engagement team and remaining alert to any indications of non-compli 11.878,4231 238,712 fj,528.448 161,4921 17,385,578) 52,833 1.165,680 124,387 12.002.810) An amount of £75,000 vras transferred lo the Love Your Neighbour project out of giving lo thi5 lund. Hope Fund This fund is used to assist church members and the wider community generally Io sUPPOrt those severely Impacted by covid. A transfer of £10.000 was made out of this ftjnd lo the JeridJo Road Project. Love Your Nelghbour These furids ar8 for the Love Your Neighbour collaboralive project, Involving Increased oUt￿3£h to ayeas of the community sufferlng hardshlp. The income to the fund was direct giving and grant. In addition, githng of £75,000 lo VSsion 2030 was allocatad to this project and this movement is shown as a transfer. In addition, the church bore costs of £35,014 on behalf of the fund and these are inclijded in General fund costs. 35 King's Church London Notes to the financlal statements For the year ended 31 August 2021 17 Restrlct•d fund8 Icontlnuedl Other Various donallons for other purposes. including off8rings l¢)w8rds project5 In Zimbabwe. South Le• Church This fund identifies the piooe&ds of the South Lee Church building which was sold In 2004, wmch Is invested in property and otherwise in the charity's charilablÈ purposes. 18 L•as8 commltmonts Al 31 August 2021, the charily was committed to making the following payments within one year under operating lea8es expiring.. Fixtur8S. flttlngs and gquipment Land and buildings 2021 Total 2020 Total Within one year Belween one and five years 4.230 3,754 4.230 3.754 5,659 8,208 7.984 7,984 13,867 19 Mlnortty Internst 2021 2020 The London Baptist Property Board Declaration of trust dated 2004 Mbnorily Intèrest In property at Catford Hill Inole 101 387,938 387,936 387,938 387,936 This forms that part of the South Lee Church rèstricted fund (see note 171 Ihat is invested In propgrty. 36