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2021-12-31-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 2021

HPH Chartered Accountants 54 Bootham York YO30 7XZ

HIS CHURCH TRUSTEES' ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

CONTENTS Page
Trustees' Annual Report 1 - 12
Independent Auditor's Report 13 - 16
Consolidated Statement of Financial Activities 17
Consolidated and Charity Balance Sheets 18
Consolidated and Charity Statement of Cash Flows 19
Notes to the Consolidated Financial Statements 20 - 33

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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 2021.

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and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.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, Local Authorities, Football Foundations, Churches and Mosques both in the UK, Europe, Yemen and Syria including refugee camps, in pursuance of our mission outreach programmes and evangelical activities. But our outreach has continued to expand exponentially through COVID, to include schools, hospitals, care homes and a diverse range of community projects including social hubs which educate families in life skills such as budgeting and cooking skills as well as means tested social supermarkets.

1

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENTS AND PERFORMANCE – continued .

  1. The Charity regularly provides ethical, sustainable, robustly secure, full transport and logistic solutions for major manufacturers and retailers surplus or residual stock in the form of ambient, chilled, fresh and frozen foods, assorted drinks, clothing and shoes, supplies such as personal hygiene and domestic cleaning products, sleeping bags, household items and toys. These items are redistributed as humanitarian aid through a network of over 3,000 Charitable Organisations. The Charity is grateful for all the manufacturers and retailers who trust the Charity to redistribute their branded items and those organisations hugely appreciate the Charity’s significant contribution to their social and environmental responsibilities including reducing landfill and supporting their local communities.

  2. The Charity continues to provide rebranding solutions for counterfeit clothing, clothing which cannot be sold due to trademark infringements and genuine clothing which is donated for a variety of reasons including slight defects, the clothing being “past season” or a forecasting issue i.e. the amount produced was greater than the amount sold. Although COVID has reduced the amount of Trading Standards seizures, it has increased the amount of clothing we have received due to the forecasting issues. A sizeable proportion of these items were classed as business wear i.e. shirts, trousers, jackets, ties etc, essential to the homeless outreaches we support who provide smart clothing to help homeless people create a good first impression at interviews or court appearances or indeed to attend funerals with dignity. Many of our partners, particularly football club foundations, also run employability programmes, again this clothing is key in helping make a good first impression at job interviews.

  3. The year commenced with a third national lockdown due to the Coronavirus Pandemic. The Charity continued throughout to support the nation by providing our network of charitable organisations who support vulnerable people with food, clothes and supplies including the charitable redistribution of over 9 million meals in COVID. The financial effects of COVID including higher unemployment meant the charitable organisations we support experienced higher levels of demand on their services resulting in more requests for support from the Charity and extending our Charity network.

  4. The Charity had been awarded the Large Scale Food Grant, through WRAP (Waste Resource Action Plan) 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 a forklift, labelling and weighing machinery, to assist His Church project delivery with a significant increase in chilled and frozen food capacity and activity, as well as relabelling ‘bright stock’. Due directly to delays in the global supply chain caused by COVID, the HGV crisis and Brexit, WRAP had agreed for the project commencement date to be moved to Spring 2022.

  5. The Charity had last year discontinued our assisted living programme with government detention centres and prisons, again due to COVID and necessary Government lockdowns. However, this year the Charity had provided clothing directly to Prisons for their own inmate purposes.

2

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENTS AND PERFORMANCE – continued

  1. His Church response to COVID and the effect upon our storage and distribution facilities and undertakings, had led to the Charity taking additional premises near to our existing premises in North Lincolnshire in 2020. These new premises in part have required some refurbishment, security and decoration to more enable and compliment Charity operations and has provided additional opportunity to support new initiatives. The premises were in 50% occupation and became operational in Autumn 2021. Continued minor reparations/ decorations should enable full use of the remainder by Summer 2022.

  2. In February His Church provided the food for a Lincolnshire Food Partnership Project, providing 10 pallets of mixed food to organisations across the County. Lincolnshire Food Partnership ran an evaluation on the project and the results were shared with us as below: Average % of food needs met by the delivery - 47% Average amount of time food delivery would last - 2.5 weeks Quality of food - Excellent, Good, Brilliant, exceeded expectations

  3. Other comments - requests for mixed pallet of frozen, chilled & ambient

  4. Due to COVID, many Councils had started supporting food networks in their locality having been provided with direct funds from the Government during the pandemic. His Church responded and supported these initiatives and requests for assistance. This continued throughout the year in some volume.

  5. We were able to distribute in excess of 20,000 toys across a network of Charities in the run-up to Christmas. These toys always have a huge impact and due to eased restrictions, His Church were again able to attend the event hosted by the Owen McVeigh Foundation, where gifts of toys were given to children affected by cancer.

  6. The audio and video production suite remains active as part of our mission outreach programme and preaching the Word of the Lord. A short film about His Church’s response during the pandemic was circulated amongst our partners.

  7. The Charity's “green policy" had continued with appropriate recycling from donated products, through Lincolnshire County Council.

  8. 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 across the Country.

  9. A new partnership began with Wolves Foundation with their Feed our Pack initiative, which aims to provide food for 34 foodbanks and projects in their locality over a period of 12 months. This has essentially expanded His Church’s network, with many of these organisations requesting additional food or supplies.

  10. Collections of sleeping bags from Tangerine fields resumed where festivals were taking place, as not all were running still due to COVID restrictions. These are laundered and ‘baled’ ready for distribution (they had been purchased as new and prior to washing they had only been used once or twice or not at all) and have proved essential for the homeless in Winter.

3

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENTS AND PERFORMANCE – continued .

  1. The Charity had been offered food periodically through the new Xcess Network, which was proving to have more ability to receive and administrate larger donations by sharing across the group. One example was a donation of 12 pallets of soft fruits. This was distributed across different organisations, mainly locally and had quite an impact. A child at Havelock School in Grimsby who had never tasted a nectarine described it as ‘better than donuts’.

  2. Our partnership with the 1[st] Battalion Scots Guards continued, the Charity provided Christmas presents for all children who had a parent serving abroad, wrapped in Scots Guards wrapping paper. A Welfare Officer from the Scots Guards expressed his sincere gratitude for this support saying it has made the Welfare Division far more accessible to families and created a great deal of appreciation and cohesion within the families of the battalion. The Scots Guards also requested that His Church help them with their community engagement project having been stationed on Operations in Belize. The request was for educational supplies and football kits for the children in local schools and orphanages. His Church engaged with Liverpool FC, Stoke City FC, Southampton FC, Wolverhampton Wanderers FC and Lidl to provide a wonderful range of football kit and educational supplies. Upon the Scots Guards return they were invited to Liverpool FC where a Scots Guards Captain presented Liverpool FC CSR Manager with a framed photo collage of the Liverpool Kit being worn by the children from the schools and orphanages in Belize who received them and explained how much the children and soldiers alike were enormously grateful for their support.

  3. Holiday Provision is another key area which the Charity seek to provide help to other organisations, in particular schools and dedicated holiday projects. It is well known that children who would normally receive free school meals are particularly at risk of going hungry as their families may struggle to provide for them once the schools are shut and that provision is not available. Specific pallets designed to cover lunches and refreshments were made available at half-term and full-term holidays as well as over the Summer.

  4. The Charity continued to work with Football Club Foundations and Community Trusts, supporting their existing projects such as refreshments for charity runs and sleepouts. As a continuation of the work supporting the NHS carried out during COVID, we were asked by London United to provide refreshments for a tournament specifically for NHS staff, as a thank you for their efforts during the pandemic. At the event we met with existing partners and made new acquaintances with other London Football Club Foundations.

  5. Quarter 4 (Q4) of 2021 also saw the opening of His Church SHQ Upper Rooms. This was attended by donating partners, volunteers and supporters of the Charity, particularly those who had gone above and beyond during the Covid pandemic. Some key people who could not attend sent wonderful messages of support which we were able to play on a video for those who did attend. The event was a fantastic opportunity to show our appreciation and share the good news stories in person about the difference their donated products had made to vulnerable people.

4

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENTS AND PERFORMANCE – continued

  1. The Charity's trading subsidiary continued to undertake commercial activity, increasingly so this year with some additional local authorities’ food banks requests with government grant assistance. As that Company is controlled by the Charity any profits are paid under corporate gift aid to the Charity.

  2. The Charity has been active on social media throughout the year highlighting outreach and projects undertaken. In addition, His Church were filmed for a Calendar News feature which focused on how food waste contributes to climate change. This helped raise awareness of the Charity, but also the wider issues of preventing or redirecting food waste and tackling climate change.

  3. The Charity continued to provide creative solutions for items donated, which is particularly impactful when donations from different partners can be combined to have a greater effect. We combined wigs from TrendCo, dresses from Phase Eight and worked with Toni & Guy, Hull, to help ladies who have experienced hair loss after going through difficult times.

The Trustees acknowledge that the sheer volume and diversity of donations the Charity received in 2021 has been extraordinary, we are blessed to have built a reputation as a solution provider with a strong capacity to receive and redistribute surplus items with integrity and transparency. This has meant that in turn we have been able to provide efficient and effective, generous and culturally sensitive support to an ever expanding and eclectic range of charitable organisations. Simply put, the Charity would not have been able to reach anywhere near as many people in answering real need without the trust of such a wide and diverse range of blue-chip partners and the very valuable donations, support and the encouragement given throughout this year. The Trustees are, as always, sincerely grateful to all our Charity Partners for the vision and support in these increased turbulent times.

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 both part time and full time volunteers, whose work and commitment along with the Charity staff in providing much needed help in this challenging year. All Helping Hands and volunteers are organised, work and operate in accordance with risk management and Health & Safety 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 fundraising activities.

5

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

FINANCIAL REVIEW

Total income increased by 35.5% during the year to £1,856,575 (2020 - £1,369,869), and total expenditure increased by 11.4% to £1,274,743 (2020 - £1,144,544), resulting in net income (surplus) of £581,832 (2020 – surplus - £225,325).

Donations from gifts, tithes and offerings (including the associated gift aid recovery) increased during the year by £661,409 to £1,348,773 (2020 – £687,364) of which £405,325 related to the WRAP Grant. Income from charitable activities decreased by £537,893 to £8,328 (2020 - £546,221), due to His Great British Food Lift causing a large increase in 2020. The Charity’s trading subsidiary, His Church Limited, donated £384,726 (2020 - £78,618) through corporate gift aid.

Expenditure on charitable activities increased by £59,399 to £1,166,319 (2020 - £1,106,920).

The surplus for the year has been added to the fund balances brought forward resulting in total funds at the year end of £1,309,147 (unrestricted funds - £1,309,147, restricted funds £ (nil)) (2020 - £727,315 {unrestricted funds £727,315, 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 £587,916 at the year end (2020 - £509,651).

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 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".

As can be seen, the Coronavirus Pandemic has continued to have 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:

6

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

PLANS FOR THE FUTURE – continued .

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.

7

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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 to excessive reserves. However, the Trustees continue to act prudently in the financial management of the Charity. The Charity currently holds £587,916 in unrestricted funds, the equivalent of 5 months expenditure in free reserves. The Charity holds £721,231 in unrestricted designated funds, in relation to the fixed assets held by the Charity.

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.

8

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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: - Hangar 3 Brookenby Park Binbrook Market Rasen Lincolnshire LN8 6HF 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

9

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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.

10

HIS CHURCH TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

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 14 September 2022 and signed on their behalf by:

……………………………………….

Colin Matthews – Trustee

11

x Dear Friends and Partners, May we take this opportunity to thank you for your support in 20211 With your help, we haue been able to respond to the increasing need caused by the current pondemic ond assist more vuLneroble people than euer before. This year, uje hove worked together to redistribute... 6 MiUio• Meals IAmb•enL Chilled ond ctsth (Adult, Children ond Baby) Suppli (Personol hygient ond domesiicl Tfjs to uLnerob(e ildren We wish you all a happy, healthy new year and look forward to catching up with you in 20221 Ajii'lils j 12

HIS CHURCH

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HIS CHURCH FOR THE YEAR ENDED 31 DECEMBER 2021

Opinion

We have audited the financial statements of His Church for the year ended 31 December 2021 which comprise consolidated Statement of Financial Activities, consolidated and Charity Balance Sheets, consolidated and Charity Statement of Cash Flows, and notes to the consolidated 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 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 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.

13

HIS CHURCH

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HIS CHURCH FOR THE YEAR ENDED 31 DECEMBER 2021

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 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.

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 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 9 to 10, 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’s 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.

14

HIS CHURCH

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HIS CHURCH FOR THE YEAR ENDED 31 DECEMBER 2021

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act 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.

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

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.

15

HIS CHURCH

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HIS CHURCH FOR THE YEAR ENDED 31 DECEMBER 2021

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

14 September 2022

HPH Accountants LLP 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.

16

HIS CHURCH CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

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 2021
Total funds carried forward at
Total funds brought forward at
1 January 2021		 Unrestricted
Funds
£
943,448
8,328
491,462
8,012
1,451,250
108,424
1,166,319
1,274,743
176,507
405,325
581,832
727,315
£ 1,309,147		 Restricted
Funds
£
405,325
-
-
-
405,325
-
-
-
405,325
(405,325)
-
-
£ -		 2021
2020
£
£
1,348,773
687,364
8,328
546,221
491,462
115,821
8,012
20,463
1,856,575
1,369,869
108,424
37,624
1,166,319
1,106,920
1,274,743
1,144,544
581,832
225,325
-
-
581,832
225,325
727,315
501,990
£ 1,309,147
£ 727,315
Total Funds		 2021
2020
£
£
1,348,773
687,364
8,328
546,221
491,462
115,821
8,012
20,463
1,856,575
1,369,869
108,424
37,624
1,166,319
1,106,920
1,274,743
1,144,544
581,832
225,325
-
-
581,832
225,325
727,315
501,990
£ 1,309,147
£ 727,315
Total Funds
1,369,869
37,624
1,106,920
1,144,544
225,325
-
225,325
501,990
£ 727,315

The notes on pages 20 to 33 form part of these financial statements.

Income and net movement in funds derive wholly from continuing operations.

17

HIS CHURCH CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31 DECEMBER 2021

Registration number: 1097667

Note Consolidated Consolidated Charity only
2021 2020 2021 2020
£ £ £ £
FIXED ASSETS
Tangible fixed assets 11 721,231 217,664 684,273 217,664
Investment in subsidiary 12 - - 1 1
721,231 217,664 684,274 217,665
CURRENT ASSETS
Stock 13 39,800 39,800 - -
Debtors 14 277,321 288,063 586,760 363,773
Cash at bank and in hand 639,168 483,978 355,750 435,707
956,289 811,841 942,510 799,480
CREDITORS: amounts falling due
within one year 15 211,706 102,190 160,970 89,830
NET CURRENT ASSETS 744,583 709,651 781,540 709,650
TOTAL ASSETS LESS CURRENT
LIABILITIES 1,465,814 927,315 1,465,814 927,315
CREDITORS: amounts falling due
after one year 16 156,667 200,000 156,667 200,000
TOTAL NET ASSETS £ 1,309,147 £ 727,315 £ 1,309,147 £ 727,315
REPRESENTED BY
Unrestricted undesignated funds 17 587,916 727,315 587,916 727,315
Unrestricted designated funds 17 721,231 - 721,231 -
Restricted funds 17 - - - -
£ 1,309,147 £ 727,315 £ 1,309,147 £ 727,315
Approved by the Trustees on 12 September 2022
and signed on their behalf by:
Colin Matthews Natalie Pickering
Trustee Trustee

The notes on pages 20 to 33 form part of these financial statements.

18

HIS CHURCH CONSOLIDATED AND CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Net cash provided by operating activities
21
Cash flows from investing activities
Dividends, interest and rents from investments
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
Net cash used in investing activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the
beginning of the reporting period
Total cash and cash equivalents at the
end of the reporting period		 2021
2020
£
£
852,542
413,383
8,012
20,463
8,850
-
(670,881)
(158,141)
(654,019)
(137,678)
198,523
275,705
483,978
208,273
£ 682,501
£ 483,978
Consolidated		 2021
2020
£
£
579,650
380,161
8,012
20,463
8,850
-
(633,136)
(158,141)
(616,274)
(137,678)
(36,624)
242,483
435,707
193,224
£ 399,083
£ 435,707
Charity only		 2021
2020
£
£
579,650
380,161
8,012
20,463
8,850
-
(633,136)
(158,141)
(616,274)
(137,678)
(36,624)
242,483
435,707
193,224
£ 399,083
£ 435,707
Charity only
20,463
-
(158,141)
(137,678)
242,483
193,224
£ 435,707

The notes on pages 20 to 33 form part of these financial statements.

19

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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 £581,832 (2021- 225,325).

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 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 goods, services and facilities

Donated goods, services and facilities, are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. 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.

20

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - 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 reliably.

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 Semi-permanent structures 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.

21

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - 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

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

p) Government grants

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

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.

22

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - continued

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		 2021
£
167,314
2,625
5,550
1,057		 2020
£
78,634
2,500
6,073
851

3. DONATIONS, LEGACIES AND GRANTS

Tithes and offerings
Gifts and legacies
Gift aid tax recovery
Grants		 Unrestricted
Funds
£
58,443
861,396
18,809
4,800
£ 943,448		 Designated
Funds
£
-
-
-
-
£ -		 Restricted
Funds
£
-
-
-
405,325
£ 405,325		 2021
2020
£
£
58,443
76,072
861,396
537,998
18,809
17,398
410,125
55,896
£ 1,348,773
£ 687,364
Total Funds		 2021
2020
£
£
58,443
76,072
861,396
537,998
18,809
17,398
410,125
55,896
£ 1,348,773
£ 687,364
Total Funds
£ 687,364

Donations in kind. The Charity receives donated goods from various donors, which have zero commercial value. The goods are not permitted to be resold and therefore they have no value on the open market. These donations in kind are then distributed via the Charity's outreach programmes.

It is impractical to measure the fair value of the goods donated as they are not for resale and the cost of valuation would outweigh the benefits to the users of the accounts.

4. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
Funds
£
His Great British Foodlift
-
Recycling revenue
2,807
Other income
5,521
£ 8,328		 Designated
Funds
£
-
-
£ -		 Restricted
Funds
£
-
-
-
£ -		 2021
2020
£
£
-
537,399
2,807
863
5,521
7,959
£ 8,328
£ 546,221
Total Funds		 2021
2020
£
£
-
537,399
2,807
863
5,521
7,959
£ 8,328
£ 546,221
Total Funds
£ 546,221

23

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - continued

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:
Fixed Assets
Current assets
Current liabilities
Aggregate share capital and reserves		 31 December
2021
£
502,988
(80,534)
(37,728)
-
384,726
(384,726)
-
£ -
36,958
380,874
(417,831)
£ 1
£ 1		 31 December
2020
£
119,395
(22,907)
(17,870)
-
78,618
(78,618)
-
£ -
-
135,421
(135,420)
£ 1
£ 1

After adjusting for intercompany transactions upon consolidation, the income from trading activities was £495,129 (2020 - £115,821) and expenditure was £108,424 (2020 - £37,624).

24

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - 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
£
-
16
7,996		 Restricted
Funds
£
-
-
-
£ -
Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
£ -		 2021
2020
£
£
-
11,000
16
122
7,996
9,341
£ 8,012
£ 20,463
2021
2020
£
£
330,756
350,928
-
29,629
30,142
60,479
179,067
152,655
4,214
2,566
4,907
5,018
8,515
7,781
2,821
692
24,425
146,845
299,664
189,657
8,231
13,330
86,865
37,307
166,527
78,633
(8,850)
-
11,007
7,688
3,372
4,955
7,224
11,108
2,625
2,500
3,750
4,298
1,057
851
£ 1,166,319
£ 1,106,920
Total Funds
Total Funds		 2021
2020
£
£
-
11,000
16
122
7,996
9,341
£ 8,012
£ 20,463
2021
2020
£
£
330,756
350,928
-
29,629
30,142
60,479
179,067
152,655
4,214
2,566
4,907
5,018
8,515
7,781
2,821
692
24,425
146,845
299,664
189,657
8,231
13,330
86,865
37,307
166,527
78,633
(8,850)
-
11,007
7,688
3,372
4,955
7,224
11,108
2,625
2,500
3,750
4,298
1,057
851
£ 1,166,319
£ 1,106,920
Total Funds
Total Funds
£ 8,012
Unrestricted
Funds
£
330,756
-
30,142
179,067
4,214
4,907
8,515
2,821
24,425
299,664
8,231
86,865
166,527
(8,850)
11,007
3,372
7,224
2,625
3,750
1,057
£ 1,166,319 £ 1,106,920

25

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - continued

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.

9. STAFF COSTS AND NUMBERS

TAFF COSTS AND NUMBERS
Staff costs were as follows:
Salaries and wages
Social security costs
Pension costs
Less: recharged to His Church Limited		 2021
£
331,565
23,383
2,647
357,595
(22,838)
£ 334,757		 2020
£
360,786
23,889
2,765
387,440
(6,883)
£ 380,557

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
Administration and support		 18
1
19		 18
1
19

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 £99,362 (2020 - £108,749).

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.

26

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - continued

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 £17,662 (2020 - £17,445) 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 (2020 - £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 £840 (2020 - £453).

During the year a total of £21,107 (2020 - £79,852) 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 £384,726 (2020 - £78,618) 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 £367,095 (2020 - £123,418). 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 £6,171 (2020 - £3,153).

There were no other related party transactions.

27

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - continued

11. TANGIBLE FIXED ASSETS

Consolidated and Charity

Cost:
At 1 January 2020
Additions
Disposals
At 31 December 2021
Depreciation:
At 1 January 2020
Charge for the year
Eliminated on disposals
At 31 December 2021
Net book values:
At 31 December 2021
At 31 December 2020		 Motor vehicles
and associated
equipment
£
501,377
411,139
(6,833)
905,683
385,006
140,187
(6,833)
518,360
£ 387,323
£ 116,371		 General
equipment
£
267,251
49,496
-
316,747
176,525
23,754
-
200,279
£ 116,468
£ 90,726		 Audio
and video
equipment
£
33,498
2,365
-
35,863
22,931
2,586
-
25,517
£ 10,346
£ 10,567		 Assets
under
construction
£
-
170,136
-
170,136
-
-
-
£ 170,136
£ -		 Heritage
assets
£
-
22,000
-		 Semi-
permanent
structures
£
-
15,745
-
15,745
-
787
787
£ 14,958
£ -		 Total
£
802,126
670,881
(6,833)
22,000 1,466,174
-
-		 584,462
167,314
(6,833)
- 744,943
£ 22,000 £ 721,231
£ - £ 217,664

All fixed assets are held for direct charitable purposes in Designated Funds.

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.

28

HIS CHURCH

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - continued

13. STOCK
Stock of containers
14. DEBTORS
Trade debtors
Prepayments and accrued income
Gift Aid debtor
Other debtors
Loans
Amounts due from subsidiary
undertaking		 2021
2020
£
£
39,800
39,800
£ 39,800
£ 39,800
2021
2020
£
£
57,656
10,959
7,314
7,491
-
-
3,351
-
-
36,550
209,000
233,063
£ 277,321
£ 288,063
Consolidated
Consolidated		 2021
£
-
£ -
2021
2020
£
£
-
159
7,314
7,491
367,095
123,418
3,351
-
-
-
209,000
232,705
£ 586,760
£ 363,773
Charity
Charity		 2021
£
-
£ -
2021
2020
£
£
-
159
7,314
7,491
367,095
123,418
3,351
-
-
-
209,000
232,705
£ 586,760
£ 363,773
Charity
Charity
£ 363,773

Debtors due after more than 1 year total £189,855 (2020 - £213,505) included within Loans.

15. CREDITORS amounts falling due within one year

2021
2020
£
£
Trade creditors
106,810
76,039
Other taxes and social security costs
48,802
10,351
Other creditors
4,424
7,734
Loans from trustees
-
-
Accruals and deferred income
8,337
8,066
Bank loan
43,333
-
£ 211,706
£ 102,190
REDITORS amounts falling due after one year
2021
2020
£
£
Bank loan
156,667
200,000
£ 156,667
£ 200,000
Consolidated
Consolidated		 2021
2020
£
£
106,810
76,039
-
-
4,415
7,375
-
-
6,412
6,416
43,333
-
£ 160,970
£ 89,830
2021
2020
£
£
156,667
200,000
£ 156,667
£ 200,000
Charity
Charity

16. CREDITORS amounts falling due after one year

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

29

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - continued

17. CHARITY FUNDS

Consolidated and charity
Restricted funds
Restricted funds
Unrestricted designated
funds
Unrestricted undesignated
funds
Unrestricted undesignated
funds		 Balance b/f
At 01/01/21
£
727,315
-
-
£ 727,315
Balance b/f
At 01/01/20
£
501,990
-
£ 501,990		 Income
received
£
1,451,250
-
405,325
£ 1,856,575
Income
received
£
1,319,869
50,000
£ 1,369,869		 Expenditure
£
1,274,743
-
-
£ 1,274,743
Expenditure
£
1,119,544
25,000
£ 1,144,544		 Transfers
in/out
£
(315,906)
721,231
(405,325)
£ -
Transfers
in/out
£
25,000
(25,000)
£ -		 Balance c/f
At 31/12/21
£
587,916
721,231
-
£ 1,309,147
Balance c/f
At 31/12/20
£
727,315
-
£ 727,315

Restricted Funds

The restricted funds relate to the Large Scale Food Grant, supplied through WRAP (Waste Resource Action Plan) for capital funding. The Grant was principally related to the completion of 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 a forklift, labelling and weighing machinery.

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

Unrestricted Designated Funds

The unrestricted designated funds balance represents the net book value of the fixed assets, all held for direct charitable purposes

30

HIS CHURCH

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - continued

18. ANALYSIS OF FUNDS

Consolidated
Current Year
Unrestricted undesignated funds
Unrestricted designated fund
Restricted funds
Prior Year
Unrestricted undesignated funds
Restricted funds
Charity only
Current Year
Unrestricted undesignated funds
Restricted funds
Prior Year
Unrestricted undesignated funds
Restricted funds		 Tangible
fixed
assets
£
721,231
-
£ 721,231
217,664
-
£ 217,664
684,274
-
£ 684,274
217,665
-
£ 217,665		 Net current
assets /
liabilities
£
744,583
-
£ 744,583
709,651
-
£ 709,651
781,540
-
£ 781,540
709,650
-
£ 709,650		 Non current
assets /
liabilities
£
(156,667)
-
-
£ (156,667)
(200,000)
-
£ (200,000)
(156,667)
-
£ (156,667)
200,000
-
-
£ (200,000)		 31/12/2021
Total
£
1,309,147
-
-
£ 1,309,147
727,315
-
£ 727,315
1,309,147
-
£ 1,309,147
727,315
-
£ 727,315

31

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - 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 2021 (2020 - £Nil).

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

2021
2020
£
£
Net cash flow from operating activities
Net movement in funds
581,832
225,325
158,464
78,634
Deduct investment income
(8,012)
(20,463)
(Increase)/decrease in debtors
10,742
(13,843)
Increase/(decrease) in creditors
109,516
143,730
Net cash provided by operating activities
£ 852,542
£ 413,383
Add back depreciation charge and
profit/loss on disposals
Consolidated		 2021
2020
£
£
581,832
225,325
157,677
78,633
(8,012)
(20,463)
(222,987)
(40,880)
71,140
137,546
£ 579,650
£ 380,161
Charity only		 2021
2020
£
£
581,832
225,325
157,677
78,633
(8,012)
(20,463)
(222,987)
(40,880)
71,140
137,546
£ 579,650
£ 380,161
Charity only
£ 380,161

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		 2021
2020
60,000
£
48,000
£
-
£
4,000
£
Land and buildings		 2021
2020
-
£
-
£
-
£
-
£
Other		 2021
2020
-
£
-
£
-
£
-
£
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.

32

HIS CHURCH NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 - continued

23. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
General
Funds
Income
£
Donations, legacies and grants
637,364
Income from charitable activities
546,221
Income from other trading activities
115,821
Investment income
20,463
Total income
1,319,869
Expenditure
Commercial trading operations
37,624
Charitable activities
1,081,920
Total expenditure
1,119,544
Net income/(expenditure)
200,325
Transfer between funds
25,000
Net movement in funds
225,325
501,990
31 December 2020
£ 727,315
Total funds carried forward at
Total funds brought forward at
1 January 2020		 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		 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
756,006
19,289
813,727
833,016
(77,010)
-
(77,010)
579,000
£ 501,990

33