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2022-12-31-accounts

Charity registration number 1091642

Company registration number 04395378 (England and Wales)

EQUIPPERS CHURCH

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

EQUIPPERS CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr M Collard
Mrs L G S Dua
Mr J Everitt
Mrs I Jack
Mr P A Prothero
Mr T Yates (Appointed 12 January 2022)
Mr T Runkel (Appointed 23 January 2023)
Secretary Miss S C R Drummond
Charity number 1091642
Company number 04395378
Principal address Suite 4
45-47 Monument Hill
Weybridge
Surrey
KT13 8RN
Registered office Suite 4
45-47 Monument Hill
Weybridge
Surrey
KT13 8RN
Auditor Caladine Limited
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF

EQUIPPERS CHURCH

CONTENTS

Page
Trustees' report 1 - 4
Statement of Trustees' responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Statement of financial position 10
Statement of cash flows 11
Notes to the financial statements 12 - 27

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2022 Highlights
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132

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989
First-time
Visitors
Salvations
Weybridge - 83
Weybridge - 749
Richmond - 49
Richmond - 240
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Baptisms Volunteers
21 352
Weybridge - 19 Weybridge - 286
Richmond - 2 Richmond - 66
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"So happy that God led me to Equippers Surrey. A happy place to praise and worship God. Received the best welcome when I joined in April 2022. We believe that God still does miracles today” - Lucia

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2022 Highlights
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Shout Conference

Delegates 1001 Kids + Adults

In July 2022, we launched Shout Europe, a conference which gathered 1001 kids and adults from across the United Kingdom, Europe and beyond, for three days of praise and worship, connection and encounters with Jesus.

Equippers College UK Full-time 14 Students

Equippers College UK launched in September 2022, with 14 full-time students! The aim of Equippers College is to see people trained and developed, made strong and confident, ready to be activated for their purpose.

Christmas Celebration 459 Guests 1088[Attendees]

In 2022, we hosted our annual Christmas Celebration in a bigger venue, G-Live in Guildford, where we welcomed 1088 attendees, 459 of whom were guests.

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2022 Highlights
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Tithes & Offerings

£681,459 Weybridge Richmond £578,410 £103,049 First-time Givers Weybridge - 55 Richmond - 9

Impact Offering 2022

£279,102

Weybridge Richmond £248,507 £30,595

Number of Pledges Weybridge - 172 Richmond - 44 represents 334 individuals represents 73 individuals

Ukraine Crisis Response Fund

In February 2022 we took up a special offering to support relief efforts in Ukraine. Our church members donated over £20k (including Gift Aid claimed)

£20,618

"If you're looking for an alive church with real people who genuinely care for people, Equippers is the place to be. I always feel welcomed here"

Dorothy

EQUIPPERS CHURCH

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

The Trustees present their annual report and financial statements for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The purpose of the Equippers Church charitable company is to advance the Christian faith for the public benefit in accordance with the Statement of Beliefs outlined in our Articles of Association in such parts of the UK or the world as the trustees deem fit. The trustees have regard to the Charity Commission’s guidance on public benefit when exercising any powers or duties to which the guidance is relevant.

There are over 40 different Equippers locations globally which share the same vision and values. This charitable company, Equippers Church, comprises two church locations: Weybridge and Richmond. Equippers Church is a vibrant organisation which is part of the Acts Churches UK movement.

Public Benefit

The Trustees have regard to the Charity Commission’s guidance on public benefit when exercising any powers or duties to which the guidance is relevant in deciding what activities should be undertaken.

Principal Activities

Our principal activities are:

Achievements and performance

(i) Provision of Christian events and education

The vision of the charity is to “Equip people for life through faith in Jesus Christ”. This is done primarily through Christian events and education. Teaching on the Christian faith is done through regular Sunday meetings, midweek events such as Connect Groups, youth and young adults programmes, and through other conferences and events. These activities are open to all.

Sunday Services

Equippers Church currently meets in two locations: Weybridge and Richmond. Attendance across both locations grew during 2022, and in September 2022 we launched a third Sunday service in Weybridge to accommodate the growing numbers. Our Christmas service was a highlight where both congregations came together for our Christmas show in G-Live, Guildford. 1088 people attended this service, with 459 first time visitors to this one service alone.

We love welcoming first time visitors and in 2022 we saw 989 new visitors attend our Sunday services. During the year we also celebrated 132 salvations and 21 baptisms.

Connect Groups

Teaching on the Christian faith is also done midweek through Connect Groups. These are small groups of around 10-15 people who gather online and in communities across Surrey and West London which are open to all. Connect Groups have a more interactive format where people can discuss issues, ask questions, share challenges and pray with each other. During 2022, we had 40 Connect Groups in operation.

EQUIPPERS CHURCH

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

Shout Conference

We were excited to launch Shout Conference in July 2022. This is a three-day event hosted by Equippers Church primarily for people from all the Equippers churches around Europe and beyond to gather together. In total, 1001 people attended the conference with groups from 17 different Equippers locations in attendance. This will be an annual event in our church calendar moving forward. Preparations for 2023 Shout Conference are well underway.

Education

In September 2022 we launched Equippers College UK, the training arm of Equippers Church. The current principal of Equippers College NZ, which has been successfully running for over 20 years, agreed to spend six months in the UK to help establish the college. We launched year one with 14 full-time students from the UK and Europe. Equippers College is accredited in the UK, with students gaining a Level Three Certificate in Christian Ministry.

With the lease at The Hub ending in May 2022, we had to find a new venue to accommodate the College. We were pleased to agree a lease with a local church who own a former missionary training centre which is well placed to facilitate Equippers College. A significant renovation project began in May 2022 to ensure the premises were fit for purpose for the launch of the College in September.

Our Volunteers

Our amazing volunteers help to make our Sunday and midweek gatherings happen. There are 352 people serving regularly across all areas of the charity, and we are so thankful for them!

(ii) Community Impact and Financial Support

With the onset of the war in Ukraine in February 2022, we raised an offering of £20,618 towards the relief efforts. We partnered with a local Ukrainian pastor who is coordinating the conversion and renovation of containers into temporary homes for those who lost their homes in the conflict. To date they have converted over 200 containers. We also partnered with a pastor who distributed funds to local churches who were actively providing relief to communities in need.

Each year we take up an annual “Impact Offering”. This is a pledged offering across twelve months with the funds used to support initiatives beyond our regular operating costs within Equippers Church, both within the wider community and internationally.

During 2022 we received donations of £279,101 towards Impact Offering, and were pleased to be able to make donations of £169,160, with £138,028 of this coming from Impact funds. More detail on this can be found within the notes to the accounts. The trustees have ringfenced £250,000 from Impact funds accumulated from previous years towards the purchase of a future building for use as a church venue called Future Building Fund. The trustees are actively seeking such a property.

Financial review

During this financial year, the charity made a net deficit on unrestricted funds of £129,799, leaving a balance in hand of £1,176,990 at 31 December 2022. Overall the Trustees are pleased with the results for 2022 and note the charity is in a healthy financial position.

In accordance with best practice, reserves have been set at a level equating to three months’ essential core operating costs. This currently equates to £109,000.

EQUIPPERS CHURCH

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

Risk management

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

Risks are examined and considered under the following headings:

Governance Operational Finance Compliance External

This allows the Trustees and management to adapt policies and actions appropriately.

Plans for future periods

The focus for the next season continues to be the growth of our Sunday services. In addition, a second year programme at Equippers College will launch in September 2023.

Structure, governance and management

Equippers Church (changed name on 17 November 2016, formerly Jubilee Life Ministries UK) is governed by its Memorandum and Articles of Association amended 11 October 2016. The charity is a company limited by guarantee, as defined by the Companies Act 2006.

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

Mr M Collard Mrs L G S Dua Mr J Everitt Mrs I Jack Mr P A Prothero Mr T Yates (Appointed 12 January 2022) Mr T Runkel (Appointed 23 January 2023)

The existing Trustees may identify the need for additional Trustees to be appointed as the demands of the charity continue to develop, and as and when existing Trustees stand down from office. The Trustees will identify a suitable candidate to act as a Trustee, based on a series of factors including their character, experience, specialist skills and chemistry with the existing Trustees.

Subsequently the candidate will be approached by one of the current Trustees to establish their willingness to consider the role. They may be invited to sit in on meetings as an observer until they reach a decision. If they accept they will be formally appointed to the board at the next meeting.

The Chairman of the board of Trustees will ensure that they are given any necessary induction and training for the role. This will depend on their previous experience in similar roles. The new Trustee will be given tasks suitable to their experience level.

Day-to-day management is delegated by the Trustees to the management team, led by the Senior Pastor.

Auditor

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

EQUIPPERS CHURCH

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

Disclosure of information to auditor

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

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

Mr M Collard Trustee

7 September 2023

EQUIPPERS CHURCH

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

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

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

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

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

EQUIPPERS CHURCH

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EQUIPPERS CHURCH

Opinion

We have audited the financial statements of Equippers Church (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 29 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

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

EQUIPPERS CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EQUIPPERS CHURCH

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

EQUIPPERS CHURCH

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EQUIPPERS CHURCH

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

Audit response to risks identified

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

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

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

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

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

John Richard Caladine FCCA CTA FCIE (Senior Statutory Auditor) for and on behalf of Caladine Limited

7 September 2023

Chartered Certified Accountants Statutory Auditor

Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF

EQUIPPERS CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted Restricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
Notes £ £ £ £ £ £
Income from:
Donations and
legacies 3 1,182,715 30,245 1,212,960 1,114,776 12,991 1,127,767
Charitable activities 4 113,748 - 113,748 24,178 - 24,178
Investments 5 21,589 - 21,589 20,554 - 20,554
Other income 6 - - - 184,187 - 184,187
Total income 1,318,052 30,245 1,348,297 1,343,695 12,991 1,356,686
Expenditure on:
Raising funds 7 15,711 - 15,711 13,509 - 13,509
Charitable activities 8 1,394,382 30,245 1,424,627 886,388 20,447 906,835
Other 11 2,758 - 2,758 3,006 - 3,006
Total expenditure 1,412,851 30,245 1,443,096 902,903 20,447 923,350
Net gains/(losses) on
investments 16 (35,000) - (35,000) 35,000 - 35,000
Net (expenditure)/income
for the year/
Net movement in funds (129,799) - (129,799) 475,792 (7,456) 468,336
Fund balances at 1 January
2022 1,306,789 - 1,306,789 830,997 7,456 838,453
Fund balances at 31
December 2022 1,176,990 - 1,176,990 1,306,789 - 1,306,789

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

The major income and expenditure of the Church derive from continuing activities.

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

EQUIPPERS CHURCH

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

2022 2022 2021 2021
Notes £ £ £ £
Fixed assets
Property, plant and equipment 15 50,814 88,873
Investment property 16 410,000 445,000
460,814 533,873
Current assets
Trade and other receivables 17 81,950 46,354
Cash at bank and in hand 947,508 1,013,102
1,029,458 1,059,456
Current liabilities 18 (313,282) (64,329)
Net current assets 716,176 995,127
Total assets less current liabilities 1,176,990 1,529,000
Non-current liabilities 19 - (222,211)
Net assets 1,176,990 1,306,789
Income funds
Unrestricted funds
Designated funds:
Reserve fund 109,000 109,000
Richmond property reserve 55,000 55,000
Future building fund 250,000 250,000
23 414,000 414,000
General unrestricted funds 762,990 892,789
1,176,990 1,306,789
1,176,990 1,306,789

The financial statements were approved by the Trustees on 7 September 2023

Mr M Collard Trustee

Company registration number 04395378

EQUIPPERS CHURCH

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Notes £ £ £ £
Cash flows from operating activities
Cash (absorbed by)/generated from 27
operations (65,361) 492,078
Investing activities
Purchase of property, plant and equipment (12,802) (27,039)
Proceeds from disposal of property, plant
and equipment 398 5,658
Investment income received 21,589 20,554
Net cash generated from/(used in)
investing activities 9,185 (827)
Financing activities
Repayment of bank loans (9,418) (11,612)
Net cash used in financing activities (9,418) (11,612)
Net (decrease)/increase in cash and cash
equivalents (65,594) 479,639
Cash and cash equivalents at beginning of year 1,013,102 533,463
Cash and cash equivalents at end of year 947,508 1,013,102

EQUIPPERS CHURCH

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

1 Accounting policies

Company information

Equippers Church is a charitable company limited by guarantee incorporated in England and Wales. The registered office is Suite 4, 45-47 Monument Hill, Weybridge, Surrey, KT13 8RN.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention modified to include the revaluation of mixed motive investments. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

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

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

EQUIPPERS CHURCH

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

1 Accounting policies (Continued)

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6 Property, plant and equipment

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

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

Production equipment, fixtures and fittings 25% straight line Motor vehicles 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Investment property

Mixed motive investments represents a property, held for a combination of the financial return it generates and the contribution its use by another charity makes to Equippers Church's charitable purposes. The property was initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Activities.

1.8 Impairment of non-current assets

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

1.9 Cash and cash equivalents

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

1.10 Financial instruments

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

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

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

Basic financial assets

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

EQUIPPERS CHURCH

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

1 Accounting policies (Continued)

Basic financial liabilities

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

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

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.11 Employee benefits

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

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

1.12 Retirement benefits

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

2 Critical accounting estimates and judgements

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

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

EQUIPPERS CHURCH

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

3 Donations and legacies

Unrestricted Unrestricted Restricted Restricted Total Unrestricted Unrestricted Restricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
Donations and gifts 1,182,715 30,245 1,212,960 1,114,776 12,991 1,127,767
Donations and gifts
Regular donations 681,459 - 681,459 626,564 - 626,564
Impact 279,101 - 279,101 307,236 2,274 309,510
Special offerings 21,952 24,936 46,888 1,027 9,004 10,031
Gift aid 200,203 5,309 205,512 179,949 1,713 181,662
1,182,715 30,245 1,212,960 1,114,776 12,991 1,127,767

EQUIPPERS CHURCH

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

4 Charitable activities

Church
Church
activities activities
2022 2021
£ £
Events and courses (including Shout £54k) 105,247 21,402
Other income 8,501 2,776
113,748 24,178

5 Investments

**Unrestricted ** **Unrestricted ** Unrestricted Unrestricted
funds funds
2022 2021
£ £
Rental income 19,829 19,370
Interest receivable 1,760 1,184
21,589 20,554
Other income
**Total ** Unrestricted
funds
2022 2021
£ £
Transfer from Equippers London on Church merger - 184,187
Raising funds
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Fundraising and publicity
Advertising and promotion 15,711 13,509

6 Other income

7 Raising funds

EQUIPPERS CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

8 Charitable activities

Church Church
activities activities
2022 2021
£ £
Staff costs 210,558 179,401
Depreciation and impairment 47,705 75,073
Church and ministry expenses 108,697 100,737
Events and conferences (including Shout £120k) 151,092 13,588
Education and training 56,482 18,391
Motor expenses 32,047 20,263
Travel and subsistence 12,544 3,763
Organisational subscriptions 10,223 12,526
Pastoral accommodation 33,660 34,400
Rent, rates and equipment 36,062 38,407
Equippers College 52,501 -
Sunday service venue costs 90,954 54,292
Speakers gifts and travel expenses 26,292 5,481
Church hospitality 19,065 10,613
Sunday speakers 17,082 7,900
904,964 574,835
Grant funding of activities (see note 9) 169,161 153,888
Share of support costs (see note 10) 289,685 159,902
Share of governance costs (see note 10) 60,817 18,210
1,424,627 906,835
Analysis by fund
Unrestricted funds 1,394,382 886,388
Restricted funds 30,245 20,447
1,424,627 906,835

EQUIPPERS CHURCH

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

9 Grants payable

Church
Church
activities activities
2022 2021
£ £
Grants to institutions:
Actions on Ponodoniosis Association 25,000 7,625
ACTS Churches UK - 6,000
Equippers Budapest 8,410 9,000
Equippers Ghana 12,000 20,000
Equippers Mexico City 11,703 4,500
Equippers Network International 5,400 5,100
Equippers - other overseas congregations 30,030 15,000
International Justice Mission 20,449 12,000
Love in Action (relief for individuals) - 14,726
Vision Rescue UK - 12,358
Gateway Beyond Cyprus - 10,000
Ukraine (multiple organisations) 25,385 -
Other smaller grants 26,510 24,516
General 4,274 13,063
169,161 153,888

EQUIPPERS CHURCH

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

10 Support costs
Support
Governance		 2022 Support
Governance		 2021
costs costs costs costs
£ £ £ £ £ £
Staff costs 145,482 - 145,482 106,080 - 106,080
Hub running and
dilapidation costs 17,493 32,640 50,133 22,680 - 22,680
Bible College
refurbishment 89,679 - 89,679 - - -
Storage 7,219 - 7,219 - - -
Insurance 6,925 - 6,925 7,610 - 7,610
Telephone and internet 5,570 - 5,570 4,603 - 4,603
Software and stationery 6,416 - 6,416 6,164 - 6,164
Bank charges and
interest 6,356 - 6,356 6,530 - 6,530
Sundry expenses 4,545 - 4,545 6,235 - 6,235
Legal and professional - 8,294 8,294 - 2,800 2,800
Accountancy - 3,536 3,536 - 2,010 2,010
Audit fees - 5,620 5,620 - 5,280 5,280
Mortgage interest - 10,411 10,411 - 7,758 7,758
Payroll fees - 316 316 - 362 362
289,685 60,817 350,502 159,902 18,210 178,112
Analysed between
Charitable activities 289,685 60,817 350,502 159,902 18,210 178,112

The amounts paid to the auditors includes £5,620 (2021: £5,280) for audit work and £3,536 (2021: £2,010) for other services.

11 Other

**Unrestricted ** Unrestricted
funds funds
2022 2021
£ £
Net loss on disposal of tangible fixed assets 2,758 (4,381)
"Toshiba" building costs - 7,387
2,758 3,006

EQUIPPERS CHURCH

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

12 Trustees

Trustee Mr P Prothero was paid £20,000 (2021: £20,000) for the provision of consultancy services through P3 Consultants, and had expenses incurred in his capacity of consultant of £1,075 (2021: £690) met by the charity.

In the 2021 financial year, Trustee Mr P Prothero purchased a car from the charity which was no longer required for operational use. The proceeds received from Mr P Prothero were £5,300.

Trustee Mr T Yates (Trustee appointed January 2022) is employed by the Charity and received gross remuneration of £30,354 (2021 - £24,159) and also made contributions into a defined contribution pension scheme of £2,204 (2021 - £1,313). The Charity also provided a £3,000 Relocation Allowance benefit in regards to moving closer to Richmond as location Pastor.

Trustee Mr M Collard is also employed by the Charity and received gross remuneration of £84,103 (2021 - £79,664) which included manse rental costs of £21,000 (2021 - £21,000) and car allowance of £5,100 (2021 - £5,565). The Charity also made contributions into a defined contribution pension scheme of £5,113 (2021 - £3,517).

The legal authority for these payments is found in a provision in the Memorandum and Articles of Association of the Charity.

No Trustees had costs incurred in fulfilling their duties as Trustees met by the charity.

No other Trustees received any remuneration or benefits from the Charity during the year (2021 - None)

The total amount of donations received without restriction from the Trustees and related parties amounted to £202,376 (2021 - £137,444).

13 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2022 2021
Number Number
Pastoral 8 7
Support 6 7
Total 14 14
Employment costs 2022 2021
£ £
Wages and salaries 312,807 257,697
Social security costs 20,883 13,869
Other pension costs 22,350 13,915
356,040 285,481

EQUIPPERS CHURCH

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

13 Employees (Continued)

The number of employees whose annual remuneration was more than £60,000 is as follows:

2022 2021
Number Number
£70,001- £80,000 - 1
£80,001- £90,000 1 -

14 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

15 Property, plant and equipment

Property, plant and equipment
Production Motor Total
equipment,
vehicles
fixtures and
fittings
£ £ £
Cost
At 1 January 2022 505,019 2,000 507,019
Additions 12,802 - 12,802
Disposals (87,727) (2,000) (89,727)
At 31 December 2022 430,094 - 430,094
Depreciation and impairment
At 1 January 2022 416,146 2,000 418,146
Depreciation charged in the year 47,705 - 47,705
Eliminated in respect of disposals (84,571) (2,000) (86,571)
At 31 December 2022 379,280 - 379,280
Carrying amount
At 31 December 2022 50,814 - 50,814
At 31 December 2021 88,873 - 88,873

EQUIPPERS CHURCH

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

16 Investment property

Investment property
2022
£
Fair value
At 1 January 2022 445,000
Net gains or losses through fair value adjustments (35,000)
At 31 December 2022 410,000

Land and Building at Wern Industrial Estate, Wern Terrace, Rogerstone, Newport, NP10 9YB was purchased in May 2017 and is held as a mixed motive investment in the financial statements. (See note 25)

17 Trade and other receivables

17 Trade and other receivables
2022 2021
Amounts falling due within one year: £ £
Trade receivables 13,862 324
Other receivables 23,512 29,721
Prepayments and accrued income 44,576 16,309
81,950 46,354
18 Current liabilities
2022 2021
Notes £ £
Bank loans 20 225,183 12,390
Other taxation and social security 6,228 4,558
Trade payables 52,834 26,944
Accruals and deferred income 29,037 20,437
313,282 64,329
19 Non-current liabilities
2022 2021
Notes £ £
Bank loans 20 - 222,211

EQUIPPERS CHURCH

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

20 Borrowings

Borrowings
2022 2021
£ £
Bank loans 225,183 234,601
Payable within one year 225,183 12,390
Payable after one year - 222,211

The Barclays plc bank loan of £273,000 commenced 19 May 2017 and is repayable over 20 years. Interest is charged at a variable rate of 3.15% above the Bank of England base rate. The loan is secured by legal charge dated 19 May 2017 over The Warehouse, Rogerstone, Newport, NP10 9FQ.

21 Retirement benefit schemes

Defined contribution schemes

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

EQUIPPERS CHURCH

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

22 Restricted funds

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

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 January 2021 resources expended 1 January 2022 resources expended 31 December
2022
£ £ £ £ £ £ £
Specific gifts - 7,349 (7,349) - 3,377 (3,377) -
Ukraine - - - - 26,868 (26,868) -
Restricted
impact 1,250 2,274 (3,524) - - - -
COVID 19
(Love in
Action) 6,206 3,368 (9,574) - - - -
7,456 12,991 (20,447) - 30,245 (30,245) -

Specific Gifts

From time to time donors will make a donation for a specific purpose, normally in support of a visiting speaker. These amounts are passed onto that speaker or are used for the purpose identified by the donor.

Ukraine

Donations for Ukraine in response to the war which started in 2022.

Restricted impact

Donations given outside of normal offerings used for purposes as specified.

COVID 19 (Love in Action)

This fund was started to provide support for families during the COVID 19 pandemic.

EQUIPPERS CHURCH

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

23 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds Movement in funds Movement
in funds
Balance at Incoming Transfers Balance at Incoming Balance at
1 January 2021 resources 1 January 2022 resources 31 December
2022
£ £ £ £ £ £
Reserve fund 109,000 - - 109,000 - 109,000
Richmond Property
Reserve - 55,000 - 55,000 - 55,000
Future Building fund - - 250,000 250,000 - 250,000
109,000 55,000 250,000 414,000 - 414,000

Reserve fund

In accordance with the charity's reserves policy, funds equating to 3 months' essential spending commitments should be maintained. As at the balance sheet date this equates to £109,000.

Property fund

This fund contains money received on the merger with Equipper's London, towards the future purchase of a building.

Future building fund

The Future Building Fund was established during 2021, when £250,000 of that years Impact Offering was set aside for future property needs.

EQUIPPERS CHURCH

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

24 Operating lease commitments

A lease was taken out for office premises from June 2020 at The Monument Weybridge for a term of 14 months at £15,000 per annum expiring July 2021. This has continued on a rolling 1 month lease since that date

The tenancy on the two Church manses are also on 1 month notice.

A property lease was taken out for the use of Equippers College from September 2022 for a term of two years at £30,000 per annum. Rental costs can be reduced by a maximum of £60,000 dependent upon the monies spent on Refurbishment of the property. At 31 December 2022, some £75k had been expended on this and therefore no further rent is due.

At the reporting end date the charity had further outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022 2021
£ £
Within one year 12,000 21,408
Between two and five years 12,000 -
24,000 21,408

25 Events after the reporting date

Land and Building at Wern Industrial Estate, Wern Terrace, Rogerstone, Newport, NP10 9YB was purchased in May 2017 and is held as a mixed motive investment in the financial statements. Equippers Church has agreed a sale of the property for £410,000 with a completion date yet to be determined with part of the proceeds to be utilised for the repayment of bank borrowing.

26 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2022 2021
£ £
Aggregate compensation 169,125 114,061

EQUIPPERS CHURCH

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

26 Related party transactions (Continued)

Two family members of Trustees were employed by the Charity during the year and received remuneration and pension contributions as follows:

Salary Pension 2022 2021
contributions
£ £ £ £
Mrs M Collard (Wife of Trustee Mr M Collard) 32,003 2,311 34,314 23,796
Miss S Drummond (Sister-in-law of Trustee Mr
M Collard) 33,402 2,423 35,825 27,479
65,405 4,734 70,139 51,275
27 Cash generated from operations 2022 2021
£ £
(Deficit)/surplus for the year (129,799) 468,336
Adjustments for:
Investment income recognised in statement of financial activities (21,589) (20,554)
Loss/(gain) on disposal of property, plant and equipment 2,758 (4,381)
Fair value gains and losses on investment properties 35,000 (35,000)
Depreciation and impairment of property, plant and equipment 47,705 75,073
Movements in working capital:
(Increase)/decrease in trade and other receivables (35,596) 31,795
Increase/(decrease) in trade and other payables 36,160 (23,191)
Cash (absorbed by)/generated from operations (65,361) 492,078
28 Analysis of changes in net funds
At 1 January **Cash flows ** At 31 December
2022 2022
£ £ £
Cash at bank and in hand 1,013,102 (65,594) 947,508
Loans falling due within one year (12,390) (212,793) (225,183)
Loans falling due after more than one year (222,211) 222,211 -
778,501 (56,176) 722,325

29 Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to assist with the preparation of the financial statements.