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2020-12-31-accounts

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Charity Number: 1097667
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HIS CHURCH

TRUSTEES' ANNUAL REPORT AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2020

HPH Chartered Accountants 54 Bootham York YO30 7XZ

HIS CHURCH TRUSTEES' ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CONTENTS Page
Trustees' Annual Report 1 - 8
Independent Auditor's Report 9 - 11
Consolidated Statement of Financial Activities 12
Consolidated and Charity Balance Sheets 13
Consolidated and Charity Statement of Cash Flows 14
Notes to the Consolidated Financial Statements 15 - 25

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees of the Charity (whose details are shown in the reference and administrative section of this report) are pleased to present their Annual Report together with the Financial Statements of the Charity for the year ended 31 December 2020.

The Financial Statements comply with the Charities Act 2011, the Trust Deed 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).

The accounts have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 1 January 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Charity is a Public Benefit Entity.

OBJECTIVES AND ACTIVITIES

The Charity's principal objectives as set out in its Trust Deed are: -

  1. The public advancement of the Christian religion, in particular, to preach Christ crucified and risen for the salvation and redemption of souls and to baptise those who profess Jesus Christ as Lord.

  2. The pursuit of such purposes as are charitable according to the law of England and Wales, consistent with the expression of the Christian religion, as will demonstrate, augment and further the Christian religion.

The following policies have been adopted in order to further the Charity's principal objectives: -

  1. To hold meetings including worship, prayer, study, teaching, baptism and fellowship.

  2. To supply and maintain appropriate vehicles for the Charity’s Outreach Programmes.

  3. To further the Christian religion by the provision of facilities, resources, training, bible studies, outreach mission work etc. to members of the public.

ACHIEVEMENTS AND PERFORMANCE

  1. In accordance with the Word of God, sowing and distribution of foods, drinks, clothing and supplies is a priority to those in need and distributions have occurred both directly and significantly via our Charity partners, food banks, churches and mosques in the UK, Europe, Yemen and Syria including refugee camps, in pursuance of our mission outreach programmes and evangelical activities. But our outreach has expanded exponentially through Covid 19, to include schools, hospitals and care homes.

1

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENTS AND PERFORMANCE – continued

  1. The Charity regularly receives humanitarian aid in the form of ambient, chilled/frozen foods, assorted drinks, clothing and shoes, supplies, sleeping bags and toys, working closely with major manufacturers and retailers, in relation to delivery of foods, clothing and supplies to those in need. All those are major donors to the Charity in support of our outreach programmes for which we are extremely grateful.

  2. The rebranding and embroidery of donated new clothes and also seized counterfeit new clothes with the label "HIS" for underprivileged people, whilst undertaken, has fallen in number this year, due to the Coronavirus pandemic and the Charity’s response to the very real needs of vulnerable people suffering as a direct result. However, the surplus clothing due to COVID is likely to mean we will be busier in this area going forward.

  3. Whist the Coronavirus Pandemic was not expected, by the grace of God, His Church were prepared and ready to support our nation through the tremendously difficult time it caused. At a time when panic buying led to food shortages and access to food was a huge issue due to many vulnerable people needing to self-isolate, incredibly in March 2020, His Church had the equivalent of an estimated 1.5 million meals in stock at Hangar 3, our 50,000 square foot Operations and Logistics Centre. Furthermore, His Church’s transport and logistics infrastructure, strengthened further at this pivotal time by significant support from Dawson’s Rentals (particularly in the area temperature-controlled trailer units), meant His Church could both deliver this vital provision (of ambient, chilled, and frozen food) and indeed collect the surplus food which inevitably became available due to restaurants having to close during this time. His Church experienced a six-fold increase in requests for food support from a network of over 15,000 charitable organisations and distributed over a million meals to food insecure families and individuals during the first month of lockdown. In October 2020, having distributed over 3 million meals in response to COVID-19 His Church’s Charity President was awarded an MBE for “Food Services to the UK” in the Queen’s Birthday Honours list. By the end of December 2020, His Church had provided over 4 million meals, including feeding over 10,000 healthcare professionals. Notably, over 500,000 of these meals were distributed in partnership with Arsenal Football Club, supporting the emergency food relief projects of Islington, Camden and Hackney Councils, a truly pioneering partnership between a Charity and a Premier League Football Club, with an unprecedented community impact.

  4. The Charity attracted the award of two Covid 19 Emergency Surplus Food Grant as a direct support to our outreach initiative in “The Great British Food Lift”. In addition, The Charity applied for and was awarded the Large Scale Food Grant, through WRAP (Waste Resource Action Plan). This Grant was awarded for capital funding, principally for complementing our commercial and chilled/frozen vehicle fleet, the installation of a new walk-in cold store/ freezer, a blast freezer and supporting items such as forklifts and weighing machinery, to assist His Church project delivery with a significant increase in chilled and frozen food capacity and activity. But due directly to Covid 19, this new project and the start of the grant has been postponed until 2021.

  5. The Charity discontinued our assisted living programme with government detention centres and prisons, again due to Covid 19 and necessary Government lockdowns.

2

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENTS AND PERFORMANCE – continued

  1. Pre Covid lockdown, His Church supported Stoke City Football Club in it’s annual ‘sleep out’, providing sleeping bags, food, snacks and drinks and with His Church personnel joining in. This project raises awareness of homelessness and raises money to help homeless people by participants being sponsored to sleep out at Stoke City’s Stadium. This is one of many projects run by professional football clubs that His Church supports in order to reach vulnerable members of the community.

  2. His Church response to Covid 19 and the effect upon our storage and distribution facilities and undertakings, led to the Charity taking further additional premises near our existing premises in North Lincolnshire. These new premises in part have required some refurbishment, security and decoration to more enable and compliment the full range of outreach services the Charity has and, will provide additional opportunity to support new initiatives. We expect the premises to be substantially occupied and operational in 2021.

  3. Audio and video production suite remains active as part of our mission outreach programme and preaching the Word of the Lord.

  4. The Charity's “green policy" had continued with appropriate recycling from donated products.

  5. Our outreach programme extends beyond Christians and all the work of the Charity is carried out by faith and as led by the Lord. Of particular note is the Charity's continuing work with multi faith organisations; with particularly expansion in England this year due to the Covid 19 Emergency Food Grant and response to the pandemic.

  6. The Charity's trading subsidiary continued to undertake commercial activity and as that Company is controlled by the Charity any profits are paid under corporate gift aid to the Charity.

The Trustees acknowledge that in terms of donations, support and outreach, this year has achieved new, incredible and wide-ranging support in response to the Coronavirus pandemic. We are humbled by this, greatly blessed and sincerely grateful to all our donors, partners, volunteers and staff who made such a huge difference in the enabling outreach of the Charity. Simply put, the Charity would not have been able to reach anywhere near as many people in answering real need without these very valuable donations, support and the encouragement given throughout this year.

3

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Volunteers

Our local ‘Helping Hands’ programme (although curtailed in lockdowns) continues to support volunteer activity for the benefit of all.

In addition, the Charity continues to enjoy the benefit of substantial input from volunteers, particularly our fulltime volunteers who have isolated and worked tirelessly with the Charity staff in answering much needed help in this momentous year. All Helping Hands and volunteers are organised and work and operate in accordance with risk management policies and under the guidance of a Church Elder, Trustee, staff member or team leader.

The Trustees are happy that these activities and achievements continue to be consistent with the aims of the Charity.

Fund Raising Activities

With the exception of publicly funded grants from WRAP, the Charity is not involved in any fund raising activities.

FINANCIAL REVIEW

Total income increased by 81.2% during the year to £1,369,869 (2019 - £756,006), and total expenditure increased by 31.2% to £1,092,603 (2019 - £833,016), resulting in net income (surplus) of £277,266 (2019 – deficit - £77,010).

Donations from gifts, tithes and offerings (including the associated gift aid recovery) increased during the year by £17,421 to £687,364 (2019 – £669,943). Income from charitable activities increased by £527,738 to £546,221 (2019 - £18,483), due to His Great British Food Lift. The Charity’s trading subsidiary, His Church Limited, donated £78,618 (2019 - £42,872) through corporate gift aid.

Expenditure on charitable activities increased by £241,252 to £1,054,979 (2019 - £813,727); the principal areas of increase in expenditure were in outreach & mission costs, in particular costs associated with His Great British Food Lift.

The surplus for the year has been added to the fund balances brought forward resulting in total funds at the year end of £779,256 (unrestricted funds - £759,512, restricted funds £19,744) (2019 - £501,990 {unrestricted funds £501,990, restricted funds £ (nil)}). This level of funds continues to provide the Charity with a firm reserves base to move forward to carry out its work as directed by God’s Will.

Free reserves which are unrestricted funds which can be freely spent on any of its charitable purposes (excluding fixed assets) were £561,601 at the year end (2019 - £363,832).

4

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

PLANS FOR THE FUTURE

The Church Elders and Charity Trustees are committed by faith to continue the Charity's programme of feeding, clothing and supplying and, where possible, meeting the needs of God's people in accordance with Matthew 25, including the Charity’s envisioned response to Covid 19 and the commencement of our new initiative and 4 year programme under the large Scale WRAP Grant. The partner programmes with donations from national and international food and clothing suppliers and various government bodies continues and remains a firm commitment in the fulfilment of the Charity's plans. We remain committed to the disposal of surplus assets no longer needed and to the acquisition of assets necessary. The Charity remains committed to environmental prudency within its "green policy".

The Charity is hopeful of relocating its principal offices to its new Head Quarters building, which will include all visitor hosting.

As can be seen, the Coronavirus Pandemic has had a significant and unfortunate impact in very many ways upon the very people we serve in need of humanitarian aid. The Charity has responded wherever it has been able to address the very real need across the UK. At the time of writing, our benefactors, partners and supporters have continued to be steadfastly committed and active in support. However, the Charity has taken the opportunity provided by the Government for an appropriate loan to more facilitate the Charity to continue our expanding operations in this new pandemic world and, to underpin these new initiatives referred to above.

STATEMENT OF PUBLIC BENEFIT

The Charity Trustees confirm that the activities of the Charity are set out in the context of its aims and objectives and the Trustees have shown in practice how the activities have been carried out for the public benefit. Specifically, the activities undertaken directly meet the needs of the communities, both in the United Kingdom and abroad in terms of the supply of food, clothing, assisted living and support.

The Trustees confirm that they have had regard to the guidance on public benefit issued by the Charity Commissioners in accordance with the Trustees’ statutory duty contained in section 17 (5) of the 2011 Charities Act.

RESERVES POLICY

As a Christian Church, the exercising of Faith in the area of provision is an inherent part of our belief. The necessity to uphold this belief has an impact on our reserves policy. As the primary expression of the Christian Faith is inseparably bound up in giving sacrificially we do not believe in retaining excessive funds as a safeguard to unrealised adverse financial circumstances. Also, as a body the people belonging to the Church understand the process of faith and faithfulness in giving. It is not the Trustees' intention therefore that the Charity builds up reserves. However, the Trustees continue to act prudently in the financial management of the Charity.

The Charity currently holds the equivalent of 6 months expenditure in free reserves (2019 – 5 months).

5

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

INVESTMENT POLICY

The Trustees have considered the most appropriate policy for investing funds and consider that holding funds in a bank deposit account gives some return on capital whilst ensuring funds are available should they be required.

LEGAL AND ADMINISTRATIVE INFORMATION

Charity Name: His Church
Charity Number: 1097667
Status: The Charity is an unincorporated association, its governing document being its Trust
Deed.
Trustees: The Trustees who served during the year were: -
Colin Matthews
Natalie Pickering
Keith Wyld
Correspondence
Address: - Franklins Solicitors LLP
Silbury Court
Silbury Boulevard
Central Milton Keynes
MK92LY
Bankers: - National Westminster Bank Plc.
501 Silbury Boulevard
Saxon Gate East
Milton Keynes
MK9 3ER
Lloyds Bank Plc
2 George Row
Northampton
NN11 1DJ
Auditor: - HPH
Statutory Auditor and Chartered Accountants
54 Bootham
York
YO30 7XZ
Solicitors: - Franklins Solicitors LLP
Silbury Court
Silbury Boulevard
Central Milton Keynes
MK9 2LY

6

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity's governing document is the Trust Deed dated the 27th day of January 2003, a copy of which is before the Charity Commissioners. There have been variations to the Trust Deed being i) a Deed of Retirement and Appointment of Trustees dated 28th June 2009, and ii) a supplemental Trust Deed dated 23 August 2015.

Appointment of Trustees

The appointment, eligibility, determination and vacancies of and for the Trusteeship are clearly set out in the Trust Deed, and are summarised below: -

Trustee Induction and Training

New Trustees will have met with the Chairperson and the existing Trustees prior to recommendation for appointment, during which time they will have had the vision and strategy of the Charity explained to them. New Trustees are provided with a copy of the Charity Commission publication 'The Essential Trustee (CC3)'.

Organisation

The power, chair of Trustees, meetings and voting are clearly set out in the Trust Deed.

In addition, Church Elders and staff are invited, where appropriate, to attend meetings of the Charity and are encouraged to comment openly on policies and procedures and matters generally to be considered. All decisions are taken by the Charity Trustees in relation to Charity business and activities. Where expenditure is to be incurred on behalf of the Charity by a member of staff or a volunteer member of His Church a request is made for such expenditure to be approved and confirmed by a Charity Trustee and a Church Elder and signed off accordingly to be in the best interest of the Charity.

Risk Management

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity and are satisfied that systems are in place to mitigate their exposure to the major risks.

7

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT – continued

Related parties

None of the Trustees receive remuneration or other benefit from their Trustee work with the Charity. Any connection between a Trustee or senior employee with a contracted organisation must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. Details of transactions with related parties are contained within the notes to the accounts.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the Charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, our responsibility as Trustees requires us to follow best practice and:

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Charity at any time and which enable them as Trustees to ensure that the financial statements comply with the Charities Act 2011. The Trustees are also responsible for safeguarding the assets of the Charity and for their proper application, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on 28 September 2021 and signed on their behalf by:

……………………………………….

Colin Matthews – Trustee

8

HIS CHURCH

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HIS CHURCH FOR THE YEAR ENDED 31 DECEMBER 2020

Opinion

We have audited the financial statements of His Church (‘the charity’) and its subsidiaries (‘the group’) for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities and Income and Expenditure Account, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and the related notes, 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's 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 group’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 contained within the annual report. 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.

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

We have nothing to report in this regard.

9

HIS CHURCH

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HIS CHURCH FOR THE YEAR ENDED 31 DECEMBER 2020

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and the parent 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section of the Charities Act 2011, and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

10

HIS CHURCH

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HIS CHURCH FOR THE YEAR ENDED 31 DECEMBER 2020

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were Charities Act 2011 and Charities SORP.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, related party transactions and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, review of after date invoices, and related party transactions and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

HPH, Chartered Accountants

Statutory Auditor 54 Bootham York YO30 7XZ

28 September 2021

HPH is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

11

HIS CHURCH CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income
Donations, legacies and grants
3
Income from charitable activities
4
Income from other trading activities
5
Investment income
6
Total income
Expenditure
Commercial trading operations
5
Charitable activities
7
Total expenditure
Net income/(expenditure)
2
Transfer between funds
Net movement in funds
31 December 2020
Total funds carried forward at
Total funds brought forward at
1 January 2020		 Unrestricted
Funds
£
637,364
546,221
115,821
20,463
1,319,869
37,624
1,081,920
1,119,544
200,325
25,000
225,325
501,990
£ 727,315		 Restricted
Funds
£
50,000
-
-
-
50,000
-
25,000
25,000
25,000
(25,000)
-
-
£ -		 2020
2019
£
£
687,364
669,943
546,221
18,483
115,821
55,841
20,463
11,739
1,369,869
756,006
37,624
19,289
1,106,920
813,727
1,144,544
833,016
225,325
(77,010)
-
-
225,325
(77,010)
501,990
579,000
£ 727,315
£ 501,990
Total Funds

The notes on pages 15 to 25 form part of these financial statements. Income and net movement in funds derive wholly from continuing operations.

12

HIS CHURCH CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31 DECEMBER 2020

Registration number: 1097667

Note
FIXED ASSETS
Tangible fixed assets
11
Investment in subsidiary
12
CURRENT ASSETS
Stock
13
Debtors
14
Cash at bank and in hand
CREDITORS: amounts falling due
within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS: amounts falling due
after one year
16
TOTAL NET ASSETS
REPRESENTED BY
Unrestricted funds
17
Restricted funds
17		 2020
2019
£
£
217,664
138,157
-
-
217,664
138,157
39,800
39,800
288,063
274,220
483,978
208,273
811,841
522,293
102,190
158,460
709,651
363,833
927,315
501,990
200,000
-
£ 727,315
£ 501,990
727,315
501,990
-
-
£ 727,315
£ 501,990
Consolidated		 2020
2019
£
£
217,664
138,157
1
1
217,665
138,158
-
-
415,714
322,892
435,707
193,224
851,421
516,116
89,830
152,284
761,591
363,832
979,256
501,990
200,000
-
£ 779,256
£ 501,990
727,315
501,990
-
-
£ 727,315
£ 501,990
Charity only		 2020
2019
£
£
217,664
138,157
1
1
217,665
138,158
-
-
415,714
322,892
435,707
193,224
851,421
516,116
89,830
152,284
761,591
363,832
979,256
501,990
200,000
-
£ 779,256
£ 501,990
727,315
501,990
-
-
£ 727,315
£ 501,990
Charity only
138,158
-
322,892
193,224
516,116
152,284
363,832
501,990
-
£ 501,990
501,990
-
£ 501,990

Approved by the Trustees on 28 September 2021 and signed on their behalf by:

Colin Matthews Natalie Pickering Trustee Trustee

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

13

HIS CHURCH CONSOLIDATED AND CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Note
2020
2019
£
£
Net cash provided by operating activities
21
413,383
93,535
Cash flows from investing activities
Dividends, interest and rents from investments
20,463
11,739
Proceeds from sale of property, plant and equipment
-
300
Purchase of property, plant and equipment
(158,141)
(35,882)
Net cash used in investing activities
(137,678)
(23,843)
Change in cash and cash equivalents in the reporting
period
275,705
69,692
Cash and cash equivalents at the
beginning of the reporting period
208,273
138,581
Total cash and cash equivalents at the
end of the reporting period
£ 483,978
£ 208,273
Consolidated		 2020
2019
£
£
328,220
89,395
20,463
11,738
-
300
(158,141)
(35,882)
(137,678)
(23,844)
190,542
65,551
193,224
127,673
£ 383,766
£ 193,224
Charity only

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

14

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Legal Entity

His Church is regulated by the Charity Commission for England and Wales, registered number 1097667. The address of the principal office is Franklin Solicitors, Silbury Court, Silbury Boulevard, Milton Keynes, MK9 2LY and the place of operation is PO Box 201, Market Rasen, Lincolnshire, LN8 9AT.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

His Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

These financial statements consolidate the results of the charity and its wholly owned subsidiary, His Church Limited, on a line by line basis. A separate Statement of Financial Activities for the parent charity itself is not presented because the charity has taken advantage of the exemptions available. The parent charity's surplus for the year was £277,266 (2019 deficit - £77,010).

c) Preparation of the accounts on a going concern basis

The trustees have a reasonable expectation that the charity has adequate resources to continue in existence for the foreseeable future. The Covid-19 pandemic post year end has not had any adverse financial effects on the charity's and the group's operations. The trustees continue to believe the going concern basis of accounting is appropriate in preparing the financial statements.

d) Income recognition

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

e) Donated services and facilities

Donated professional and other services, and donated facilities, are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not financially recognised, reference to the Trustees’ Annual Report provides more information about their contribution.

On receipt, donated professional and other services, and donated facilities, are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

15

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 - continued

1. ACCOUNTING POLICIES (continued)

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured

Costs of charitable activities include those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. Costs relating to a particular activity are allocated directly to that activity.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's activities. These costs have been allocated to expenditure on charitable activities.

g) Fund accounting

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

Designated funds are funds set aside by trustees out of unrestricted general funds for specific future purposes or projects.

Restricted funds are funds which are used in accordance with specific restrictions imposed by donors.

h) Tangible fixed assets and depreciation

Tangible fixed assets are included in the financial statements at their historical cost (in the case of donated assets, at their fair value at the date of acquisition).

Depreciation of tangible fixed assets is provided at the following annual rates in order to write off each asset over its estimated useful life:

Motor vehicles and associated equipment 25% straight line General equipment 20% on reducing balance Audio and video equipment 20% on reducing balance

The charity applied new estimated rates of depreciation from 1 January 2019, this has not had any material effect on the value of the fixed assets nor the depreciation charge for year.

i) Pension scheme

The charity contributes to a workplace pension scheme with The People's Pension fulfilling its auto enrolment pension obligations. Contributions are charged to the Statement of Financial Activities as incurred.

j) Operating leases

Rentals payable under operating leases are charged on a straight line basis over the lease term.

16

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 - continued

1. ACCOUNTING POLICIES (continued)

k) Stocks

The stock of containers is stated at original acquisition cost and, where applicable, the direct labour cost and those overheads that have been incurred in bringing them to their present location and condition. At each reporting date, the stock of containers is assessed for impairment. If the stock of containers is impaired, the carrying amount is reduced and the impairment loss is recognised immediately in the statement of financial activities.

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand

n) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Financial instruments

p) Government grants

The government has made the following grants available to the charity which have been recognised as income using the accrual model.

 Business Interruption Payment

Grant income is recognised when the conditions for receipt have been met and there is reasonable assurance that the grant will be received. It is then recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate, except where the grant is compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs in which case it is recognised as income in the period in which it becomes receivable.

2. NET INCOME/(EXPENDITURE) FOR THE YEAR

Net income/(expenditure) for the year is stated after charging:
Depreciation, less profit on disposals
Audit fees
Independent examination and accountancy fees
Other fees paid to auditor/examiner		 2020
£
78,634
2,500
6,073
851		 2019
£
54,924
-
6,455
818

17

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 - continued

3. DONATIONS, LEGACIES AND GRANTS

Tithes and offerings
Gifts and legacies
Gift aid tax recovery
Grants		 Unrestricted
Funds
£
76,072
537,998
17,398
5,896
£ 637,364		 Restricted
Funds
£
-
-
-
50,000
£ 50,000		 2020
2019
£
£
76,072
126,846
537,998
501,857
17,398
16,700
55,896
24,540
£ 687,364
£ 669,943
Total Funds

4. INCOME FROM CHARITABLE ACTIVITIES

His Great British Foodlift
Recycling revenue
Other income		 Unrestricted
Funds
£
537,399
863
7,959
£ 546,221		 Restricted
Funds
£
-
-
-
£ -		 2020
2019
£
£
537,399
-
863
1,772
7,959
16,711
£ 546,221
£ 18,483
Total Funds

5. INCOME FROM COMMERCIAL TRADING OPERATIONS AND INVESTMENT IN TRADING

The charity owns the whole of the issued share capital of His Church Limited, which is incorporated in the United Kingdom (company number 07260167) and pays its taxable profit to the charity by corporate gift aid. A summary of the trading results which have been consolidated on a line by line basis is shown below.

Summary profit and loss account
Turnover
Cost of sales
Administration expenses
Investment income
Profit for the financial period
Corporate gift aid distribution to parent charity
Retained profit brought forward
Retained profit carried forward
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Aggregate share capital and reserves		 31 December
2020
£
119,395
(22,907)
(17,870)
-
78,618
(78,618)
-
£ -
135,421
(135,420)
£ 1
£ 1		 31 December
2019
£
64,845
(5,409)
(16,565)
1
42,872
(42,872)
-
£ -
69,240
(69,239)
£ 1
£ 1

After adjusting for intercompany transactions upon consolidation, the income from trading activities was £115,821 (2019 - £55,841) and expenditure was £37,624 (2019 - £19,289).

18

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 - continued

6. INVESTMENT INCOME
Rent allowance receivable
Bank interest receivable
Loan interest receivable
7. CHARITABLE ACTIVITIES
Costs directly allocated to activities:
Outreach and mission costs - wages
Outreach and mission costs
Motor vehicle and travel expenses
Warehouse and storage
Repairs and renewals
Waste and recycling costs
Legal and professional fees
Property - rent, rates, maintenance,
insurance and electricity
Bank charges
Depreciation of tangible fixed assets
(Profit) on disposal of assets
Telephone
Sundry expenses
Audio, video and design
Audit fees
Examination and accountancy fees
Payroll processing fees
Courier charges, postage, printing and
stationery
Wages, social security and benefits in
kind
Workshop
tools
and
equipment
maintenance		 Unrestricted
Funds
£
11,000
122
9,341		 Restricted
Funds
£
-
-
-
£ -
Restricted
Funds
£
25,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
£ 25,000		 2020
2019
£
£
11,000
-
122
114
9,341
11,625
£ 20,463
£ 11,739
2020
2019
£
£
350,928
293,790
29,629
-
60,479
24,093
152,655
171,064
2,566
3,228
5,018
4,975
7,781
7,790
692
500
146,845
3,629
189,657
202,154
13,330
7,326
37,307
18,453
78,633
55,223
-
(299)
7,688
7,130
4,955
3,915
11,108
5,108
2,500
-
4,298
4,830
851
818
£ 1,106,920
£ 813,727
Total Funds
Total Funds
£ 20,463
Unrestricted
Funds
£
325,928
29,629
60,479
152,655
2,566
5,018
7,781
692
146,845
189,657
13,330
37,307
78,633
-
7,688
4,955
11,108
2,500
4,298
851
£ 1,081,920

8. TAXATION

As a registered charity, His Church is exempt from tax on its income and gains falling within sections 521 to 536 of the Income Tax Act 2007 and section 256 of the Taxation of Chargeable Gains Act 1992 respectively. No tax charges have arisen in the charity.

19

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 - continued

9. STAFF COSTS AND NUMBERS

TAFF COSTS AND NUMBERS
2020 2019
£ £
Staff costs were as follows:
Salaries and wages 360,786 282,470
Social security costs 23,889 15,858
Pension costs 2,765 2,005
387,440 300,333
Less: recharged to His Church Limited (6,883) (6,543)
£ 380,557 £ 293,790
No individual employed by the charity received emoluments of more than £60,000.
The average monthly number of full-time equivalent employees during the year was as follows:
Charitable activities 18 17
Administration and support 1 1
19 18

The key management personnel of the charity comprise the Trustees, the Pastor, Site Manager, and the Operations Director. The total employee benefits of the key management personnel were £108,749 (2019 - £82,812).

His Church is reliant on volunteers to help with the packing and distribution of food and clothes, and the charity's outreach programmes. It is not possible to accurately derive the value of this contribution to the charity.

10. TRUSTEE REMUNERATION AND RELATED PARTY TRANSACTIONS

No trustee received any remuneration during the year for acting in their capacity as trustee. One trustee (Natalie Pickering) was paid a salary totalling £17,445 (2019 - £15,191) under a contract of employment in connection with their work as Special Projects Co-ordinator.

None of the trustees or other related parties were reimbursed any expenses in the year (2019 - £Nil). During the year indemnity insurance was taken out to indemnify the Trustees against damages and legal expenses for mistakes made in the actual running or governance of the organisation at an annual premium of £453 (2019 - £412).

During the year a total of £79,852 (2019 - £74,654) was donated to the charity by the Trustees and those closely related to them.

His Church is the ultimate controlling party of the trading subsidiary His Church Limited. His Church Limited distributed £78,618 (2019 - £42,872) in the year under a corporate gift aid arrangement.

At the accounting year end there is an inter-organisation balance in the charity's debtors relating to His Church Limited amounting to £123,418 (2019 - £63,063). Loan interest of 5% is charged to the subsidiary company on the amount outstanding on the routine inter-organisation loan account at the previous year end. The amount charged this year was £3,153 (2019 - £2,655).

There were no other related party transactions.

20

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 - continued

11. TANGIBLE FIXED ASSETS

Consolidated and Charity

Cost:
At 1 January 2020
Additions
At 31 December 2020
Depreciation:
At 1 January 2020
Charge for the year
At 31 December 2020
Net book values:
At 31 December 2020
At 31 December 2019		 Motor vehicles
and associated
equipment
£
393,757
107,620
501,377
329,191
55,815
385,006
£ 116,371
£ 64,566		 General
equipment
£
224,017
43,234
267,251
154,490
22,035
176,525
£ 90,726
£ 69,527		 Audio
and video
equipment
£
26,211
7,287
33,498
22,147
784
22,931
£ 10,567
£ 4,064		 Total
£
643,985
158,141
802,126
505,828
78,634
584,462
£ 217,664
£ 138,157

12. INVESTMENTS

The charity's investment is in its wholly owned trading subsidiary His Church Limited, whose share capital was acquired for £1 on 20 May 2010.

13. STOCK

Stock of containers 2020
2019
£
£
39,800
39,800
£ 39,800
£ 39,800
Consolidated		 2020
2019
£
£
-
-
£ -
£ -
Charity

21

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 - continued

14. DEBTORS

Trade debtors
Prepayments and accrued income
Other debtors
Loans
Amounts due from subsidiary
undertaking		 2020
2019
£
£
10,959
16,168
7,491
4,212
-
-
36,550
-
233,063
253,840
£ 288,063
£ 274,220
Consolidated		 2020
2019
£
£
159
1,777
7,491
4,212
123,418
63,063
-
-
284,646
253,840
£ 415,714
£ 322,892
Charity

Debtors due after more than 1 year total £213,505 (2019 - £234,314) included within Loans.

15. CREDITORS amounts falling due within one year

Trade creditors
Other taxes and social security costs
Other creditors
Loans from trustees
Accruals and deferred income		 2020
2019
£
£
76,039
50,500
10,351
8,742
7,734
1
-
93,200
8,066
6,017
£ 102,190
£ 158,460
Consolidated		 2020
2019
£
£
76,039
50,500
-
4,067
7,375
-
-
93,200
6,416
4,517
£ 89,830
£ 152,284
Charity

16. CREDITORS amounts falling due after one year

Bank loan 2020
2019
£
£
200,000
-
£ 200,000
£ -
Consolidated		 2020
2019
£
£
200,000
-
£ 200,000
£ -
Charity

The bank loan facility is secured by a Partial Guarantee provided by the Secretary of State.

22

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 - continued

17. CHARITY FUNDS

Consolidated and charity
Unrestricted general funds
Restricted funds
Unrestricted general funds
Restricted funds		 Balance b/f
At 01/01/20
£
501,990
-
£ 501,990
Balance b/f
At 01/01/19
£
598,812
(19,812)
£ 579,000		 Income
received
£
1,319,869
50,000
£ 1,369,869
Income
received
£
731,466
24,540
£ 756,006		 Expenditure
£
1,119,544
25,000
£ 1,144,544
Expenditure
£
828,288
4,728
£ 833,016		 Transfers
in/out
£
25,000
(25,000)
£ -
Transfers
in/out
£
-
-
£ -		 Balance c/f
At 31/12/20
£
727,315
-
£ 727,315
Balance c/f
At 31/12/19
£
501,990
-
£ 501,990

Restricted Funds

The charity has one restricted fund relating to a grant receivable from the Waste and Resources Action Programme (WRAP) Food Waste Reduction Fund in connection with the 'COVID-19 Emergency Surplus Food Grant'. The grant was received in two £25k instalments: the first was used to purchase a Mercedes Mitsubishi Canter (£9k) and a Mercedes Actros cab (£16k), and the second to go towards overtime spent during the pandemic which cost the charity in excess of £36k.

The transfers during the year relate to restricted funds being released once fixed assets have been purchased.

18. ANALYSIS OF FUNDS

Current Year
Unrestricted general funds
Restricted funds
Prior Year
Unrestricted general funds
Restricted funds
Current Year
Unrestricted general funds
Restricted funds
Prior Year
Unrestricted general funds
Restricted funds
Charity only
Consolidated		 Tangible
fixed
assets
£
217,664
-
£ 217,664
138,157
-
£ 138,157
217,665
-
£ 217,665
138,158
-
£ 138,158		 Net current
assets /
liabilities
£
709,651
-
£ 709,651
363,833
-
£ 363,833
761,591
-
£ 761,591
363,832
-
£ 363,832		 Non current
assets /
liabilities
£
(200,000)
-
£ (200,000)
-
-
£ -
(200,000)
-
£ (200,000)
-
-
£ -		 31/12/2020
Total
£
727,315
-
£ 727,315
501,990
-
£ 501,990
779,256
-
£ 779,256
501,990
-
£ 501,990

23

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 - continued

19. CONTINGENT LIABILITIES

There are no contingent liabilities of a material amount for which provision has not been made in the accounts.

20. CAPITAL COMMITMENTS

There were no capital commitments at 31 December 2020 (2019 - £Nil).

21. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net cash flow from operating activities
Net movement in funds
Deduct investment income
(Increase)/decrease in debtors
Increase in creditors
Net cash provided by operating activities
Add back depreciation charge and profit/loss on
disposals		 2020
2019
£
£
225,325
(77,010)
78,634
54,924
(20,463)
(11,739)
(13,843)
14,702
143,730
112,658
£ 413,383
£ 93,535
Consolidated		 2020
2019
£
£
225,325
(77,010)
78,633
54,924
(20,463)
(11,738)
(92,821)
9,586
137,546
113,633
£ 328,220
£ 89,395
Charity only

22. OPERATING LEASE COMMITMENTS

The total of future minimum annual lease payments under non-cancellable operating leases for each of the following periods is:

Not later than one year
Later than one year and not later than five years		 2020
2019
48,000
£
48,000
£
4,000
£
52,000
£
Land and buildings		 2020
2019
-
£
-
£
-
£
-
£
Other		 2020
2019
-
£
-
£
-
£
-
£
Other
-
£

The Charity occupied property and is 'holding over' under the Landlord and Tenants Act 1954, under a three year lease which commenced on 31 January 2018.

24

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 - continued

23. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Income
Donations, legacies and grants
Income from charitable activities
Income from other trading activities
Investment income
Total income
Expenditure
Commercial trading operations
Charitable activities
Total expenditure
Net (expenditure)/income and net
movement in funds for the year
31 December 2019
Total funds carried forward at
Total funds brought forward at
1 January 2019		 Unrestricted
General
Funds
£
645,403
18,483
55,841
11,739
731,466
19,289
808,999
828,288
(96,822)
598,812
£ 501,990		 Restricted
Funds
£
24,540
-
-
-
24,540
-
4,728
4,728
19,812
(19,812)
£ -		 2019
2018
£
£
669,943
707,000
18,483
26,282
55,841
57,557
11,739
10,558
756,006
801,397
19,289
16,077
813,727
855,294
833,016
871,371
(77,010)
(69,974)
579,000
648,974
£ 501,990
£ 579,000
Total Funds

25