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Charity Number: 1097667<br>**----- End of picture text -----**<br>



## **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and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.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** . 

2. 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. 

3. 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. 

4. 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. 

5. 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. 

6. 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** 

7. 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. 

8. 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 

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

9. 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. 

10. 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. 

11. 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. 

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

13. 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. 

14. 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. 

15. 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** . 

16. 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’. 

17. 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. 

18. 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. 

19. 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. 

20. 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. 

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

## **ACHIEVEMENTS AND PERFORMANCE – continued** 

21. 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. 

22. 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. 

23. 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: 

- a) Our partnerships with football clubs furnish the Charity with a unique opportunity to engage with and provide for a complete cross section of the community who are in need of support. We plan for this work to continue and expand in England through Wolves Foundation’s Feed Our Pack’ initiative and other “Holiday Activity Food” (HAF) Projects. We are hopeful of developing this work in Scotland and Wales with prominent Football Clubs Foundations and Community Trusts 

- b) Media: The Charity has enjoyed a particularly good relationship with the main National and Local TV channels since the significant coverage of our work during the COVID Pandemic. Features on news channels including BBC News, Good Morning Britain, BBC Look North and ITV Calendar led to a number 

6 



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

## **PLANS FOR THE FUTURE – continued** . 

   - of enquiries from both Charitable Organisations requesting support and Companies wanting to donate surplus items. These news channels have asked us to stay in touch and described our creative solutions as “good news stories which are in the public interest”. We intend to nurture these relationships as they are helpful in promoting the aims and objectives of the charity and sit well with our belief that “our praises should be in the mouths of others” in that our works are objectively reported by independent organisations. 

- c) In 2021 we discovered that the first ever humanitarian food drop “Operation Manna” took place in 1945 from (amongst other Lincolnshire airfields) RAF Binbrook - the very site at which the Charity is situated. We are keen to celebrate this momentous mission which demonstrates a history of international benevolence from RAF Binbrook, which has a strong synergy with the current work distributing aid to vulnerable people worldwide. We will seek to develop this theme in 2022, we are firm believers in learning lessons from history but also remembering and being inspired by the courageous exploits of those who have gone before us. 

- d) WRAP - we anticipated the completion of the new indoor freezer and blast freezer by Spring 2022, also delivery of remaining manual handling items, the last of which being the forklift which was predicted to arrive in May 2022.  The start of the project will then commence.  In practice all of the items anticipated and supplied except the forklift, were in place by March 2022, WRAP visited the Charity to see the assets and view the project intention.  Year 2 of the large-scale WRAP grant project (the delivery phase) commenced on 1[st] May 2022. 

- e) We are continuing investigation into a direct electricity supply for Brookenby Park House. 

- f) Scotland: Our first ever articulated lorry consignment (26 pallet) of food was collected from Baxters near Inverness and our first significant Trading Standards donation came from Renfrewshire Trading Standards but we have a relatively small network of Charitable partners in Scotland. The country of Scotland, however, has areas of high deprivation which would benefit enormously from the support we can provide. We aim to increase our distributions in Scotland in 2022 through key partners such as Feeding Scotland and Rangers FC Foundation who support networks of charitable organisations 

## **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. 

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**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: - 

- i. There should be at least 3 Trustees. 

- ii. Trustee appointments are appointed by a resolution of the Trustees passed at a special meeting called under Clause 11. 

- iii. The selection process takes into account the benefits of appointing a person in regard to personal/professional qualifications which enable them to make a contribution to the Charity. 

- iv. Eligibility of the Trustees excludes anyone under 21 years of age and anyone who has previously been disqualified from office as a trustee. 

- v. The entitlement of a Trustee is passed when they sign in the trustee minute book a declaration of acceptance and willingness to act in the trusts of the Charity. 

- vi. Trustees shall cease to hold office if they are disqualified from office; become incapable due to illness; is absent without permission of all the Trustees from a period of 6 months; they resign (as long as there is still 3 trustees in office). 

- vii. On a vacancy, the Trustees shall note this in the minute book. 

## **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: 

- a) select suitable accounting policies and apply them consistently; 

- b) make judgements and estimates that are reasonable and prudent; 

- c) state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and 

- d) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. 

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 



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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: 

- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 December 2021 and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **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. 

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**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: 

- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit 

## **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. 

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**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: 

- We obtained an understanding of the legal and regulatory frameworks within which the charity 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, the Statement of Recommended Practice, employment laws, health and safety legislation and Food Safety and Hygiene Regulations. 

- We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management, related party transactions and income recognition. Our audit procedures to respond to these risks included enquiries of trustees and management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, review of trustee minutes and reviewing accounting estimates for biases. 

- 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.  We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations. 

- These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations. 

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**<br>**Income**<br>Donations, legacies and grants<br>3<br>Income from charitable activities<br>4<br>Income from other trading activities<br>5<br>Investment income<br>6<br>**Total income**<br>**Expenditure**<br>Commercial trading operations<br>5<br>Charitable activities<br>7<br>**Total expenditure**<br>**Net income/(expenditure)**<br>2<br>Transfer between funds<br>**Net movement in funds**<br>**31 December 2021**<br>**Total funds carried forward at**<br>Total funds brought forward at<br>1 January 2021|**Unrestricted**<br>**Funds**<br>**_£_**<br>943,448<br>8,328<br>491,462<br>8,012<br>1,451,250<br>108,424<br>1,166,319<br>1,274,743<br>176,507<br>405,325<br>581,832<br>727,315<br>**£ 1,309,147**|**Restricted**<br>**Funds**<br>**_£_**<br>405,325<br>-<br>-<br>-<br>405,325<br>-<br>-<br>-<br>405,325<br>(405,325)<br>-<br>-<br>**£ -**|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>**1,348,773**<br>687,364<br>**8,328**<br>546,221<br>**491,462**<br>115,821<br>**8,012**<br>20,463<br>**1,856,575**<br>1,369,869<br>**108,424**<br>37,624<br>**1,166,319**<br>1,106,920<br>**1,274,743**<br>1,144,544<br>**581,832**<br>225,325<br>**-**<br>-<br>**581,832**<br>225,325<br>**727,315**<br>501,990<br>**£ 1,309,147**<br>£ 727,315<br>**Total Funds**|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>**1,348,773**<br>687,364<br>**8,328**<br>546,221<br>**491,462**<br>115,821<br>**8,012**<br>20,463<br>**1,856,575**<br>1,369,869<br>**108,424**<br>37,624<br>**1,166,319**<br>1,106,920<br>**1,274,743**<br>1,144,544<br>**581,832**<br>225,325<br>**-**<br>-<br>**581,832**<br>225,325<br>**727,315**<br>501,990<br>**£ 1,309,147**<br>£ 727,315<br>**Total Funds**|
|---|---|---|---|---|
|||||1,369,869|
|||||37,624<br>1,106,920|
|||||1,144,544|
|||||225,325<br>-|
|||||225,325<br>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**<br>**Net cash provided by operating activities**<br>21<br>**Cash flows from investing activities**<br>Dividends, interest and rents from investments<br>Proceeds from sale of property, plant and equipment<br>Purchase of property, plant and equipment<br>**Net cash used in investing activities**<br>Change in cash and cash equivalents in the reporting<br>period<br>Cash and cash equivalents at the<br>beginning of the reporting period<br>**Total cash and cash equivalents at the**<br>**end of the reporting period**|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>852,542<br>413,383<br>8,012<br>20,463<br>8,850<br>-<br>(670,881)<br>(158,141)<br>(654,019)<br>(137,678)<br>198,523<br>275,705<br>483,978<br>208,273<br>**£ 682,501**<br>**£ 483,978**<br>**Consolidated**|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>579,650<br>380,161<br>8,012<br>20,463<br>8,850<br>-<br>(633,136)<br>(158,141)<br>(616,274)<br>(137,678)<br>(36,624)<br>242,483<br>435,707<br>193,224<br>**£ 399,083**<br>**£ 435,707**<br>**Charity only**|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>579,650<br>380,161<br>8,012<br>20,463<br>8,850<br>-<br>(633,136)<br>(158,141)<br>(616,274)<br>(137,678)<br>(36,624)<br>242,483<br>435,707<br>193,224<br>**£ 399,083**<br>**£ 435,707**<br>**Charity only**|
|---|---|---|---|
||||20,463<br>-<br>(158,141)|
||||(137,678)|
||||242,483<br>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. 

- 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. 

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:<br>Depreciation, less profit on disposals<br>Audit fees<br>Independent examination and accountancy fees<br>Other fees paid to auditor/examiner|**2021**<br>**£**<br>167,314<br>2,625<br>5,550<br>1,057|**2020**<br>**£**<br>78,634<br>2,500<br>6,073<br>851|
|---|---|---|



## **3. DONATIONS, LEGACIES AND GRANTS** 

|Tithes and offerings<br>Gifts and legacies<br>Gift aid tax recovery<br>Grants|**Unrestricted**<br>**Funds**<br>**_£_**<br>58,443<br>861,396<br>18,809<br>4,800<br>£ 943,448|**Designated**<br>**Funds**<br>**_£_**<br>-<br>-<br>-<br>-<br>£ -|**Restricted**<br>**Funds**<br>**_£_**<br>-<br>-<br>-<br>405,325<br>£ 405,325|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>58,443<br>76,072<br>861,396<br>537,998<br>18,809<br>17,398<br>410,125<br>55,896<br>£ 1,348,773<br>£ 687,364<br>**Total Funds**|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>58,443<br>76,072<br>861,396<br>537,998<br>18,809<br>17,398<br>410,125<br>55,896<br>£ 1,348,773<br>£ 687,364<br>**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**<br>**Funds**<br>**_£_**<br>His Great British Foodlift<br>-<br>Recycling revenue<br>2,807<br>Other income<br>5,521<br>£ 8,328|**Designated**<br>**Funds**<br>**_£_**<br>-<br>-<br>£ -|**Restricted**<br>**Funds**<br>**_£_**<br>-<br>-<br>-<br>£ -|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>-<br>537,399<br>2,807<br>863<br>5,521<br>7,959<br>£ 8,328<br>£ 546,221<br>**Total Funds**|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>-<br>537,399<br>2,807<br>863<br>5,521<br>7,959<br>£ 8,328<br>£ 546,221<br>**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<br>Turnover<br>Cost of sales<br>Administration expenses<br>Investment income<br>Profit for the financial period<br>Corporate gift aid distribution to parent charity<br>Retained profit brought forward<br>Retained profit carried forward<br>The assets and liabilities of the subsidiary were:<br>Fixed Assets<br>Current assets<br>Current liabilities<br>Aggregate share capital and reserves|**31 December**<br>**2021**<br>**£**<br>502,988<br>(80,534)<br>(37,728)<br>-<br>384,726<br>(384,726)<br>-<br>£ -<br>36,958<br>380,874<br>(417,831)<br>£ 1<br>£ 1|**31 December**<br>**2020**<br>**£**<br>119,395<br>(22,907)<br>(17,870)<br>-|
|---|---|---|
|||78,618<br>(78,618)<br>-|
|||£ -|
|||-<br>135,421<br>(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**<br>Rent allowance receivable<br>Bank interest receivable<br>Loan interest receivable<br>**7. CHARITABLE ACTIVITIES**<br>Costs directly allocated to activities:<br>Outreach and mission costs - wages<br>Outreach and mission costs<br>Motor vehicle and travel expenses<br>Warehouse and storage<br>Repairs and renewals<br>Waste and recycling costs<br>Legal and professional fees<br>Property - rent, rates, maintenance,<br>insurance and electricity<br>Bank charges<br>Depreciation of tangible fixed assets<br>(Profit) on disposal of assets<br>Telephone<br>Sundry expenses<br>Audio, video and design<br>Audit fees<br>Examination and accountancy fees<br>Payroll processing fees<br>Courier<br>charges,<br>postage,<br>printing<br>and<br>stationery<br>Wages, social security and benefits in kind<br>Workshop<br>tools<br>and<br>equipment<br>maintenance|**Unrestricted**<br>**Funds**<br>**_£_**<br>-<br>16<br>7,996|**Restricted**<br>**Funds**<br>**_£_**<br>-<br>-<br>-<br>£ -<br>**Restricted**<br>**Funds**<br>**_£_**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>£ -|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>-<br>11,000<br>16<br>122<br>7,996<br>9,341<br>£ 8,012<br>£ 20,463<br>**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>330,756<br>350,928<br>-<br>29,629<br>30,142<br>60,479<br>179,067<br>152,655<br>4,214<br>2,566<br>4,907<br>5,018<br>8,515<br>7,781<br>2,821<br>692<br>24,425<br>146,845<br>299,664<br>189,657<br>8,231<br>13,330<br>86,865<br>37,307<br>166,527<br>78,633<br>(8,850)<br>-<br>11,007<br>7,688<br>3,372<br>4,955<br>7,224<br>11,108<br>2,625<br>2,500<br>3,750<br>4,298<br>1,057<br>851<br>£ 1,166,319<br>£ 1,106,920<br>**Total Funds**<br>**Total Funds**|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>-<br>11,000<br>16<br>122<br>7,996<br>9,341<br>£ 8,012<br>£ 20,463<br>**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>330,756<br>350,928<br>-<br>29,629<br>30,142<br>60,479<br>179,067<br>152,655<br>4,214<br>2,566<br>4,907<br>5,018<br>8,515<br>7,781<br>2,821<br>692<br>24,425<br>146,845<br>299,664<br>189,657<br>8,231<br>13,330<br>86,865<br>37,307<br>166,527<br>78,633<br>(8,850)<br>-<br>11,007<br>7,688<br>3,372<br>4,955<br>7,224<br>11,108<br>2,625<br>2,500<br>3,750<br>4,298<br>1,057<br>851<br>£ 1,166,319<br>£ 1,106,920<br>**Total Funds**<br>**Total Funds**|
|---|---|---|---|---|
||£ 8,012||||
||**Unrestricted**<br>**Funds**<br>**_£_**<br>330,756<br>-<br>30,142<br>179,067<br>4,214<br>4,907<br>8,515<br>2,821<br>24,425<br>299,664<br>8,231<br>86,865<br>166,527<br>(8,850)<br>11,007<br>3,372<br>7,224<br>2,625<br>3,750<br>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:<br>Salaries and wages<br>Social security costs<br>Pension costs<br>Less: recharged to His Church Limited|**2021**<br>**_£_**<br>331,565<br>23,383<br>2,647<br>357,595<br>(22,838)<br>£ 334,757|**2020**<br>**_£_**<br>360,786<br>23,889<br>2,765|
|||387,440<br>(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<br>Administration and support|18<br>1<br>19|18<br>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:<br>At 1 January 2020<br>Additions<br>Disposals<br>At 31 December 2021<br>Depreciation:<br>At 1 January 2020<br>Charge for the year<br>Eliminated on disposals<br>At 31 December 2021<br>Net book values:<br>At 31 December 2021<br>At 31 December 2020|**Motor vehicles**<br>**and associated**<br>**equipment**<br>**_£_**<br>501,377<br>411,139<br>(6,833)<br>905,683<br>385,006<br>140,187<br>(6,833)<br>518,360<br>£ 387,323<br>£ 116,371|**General**<br>**equipment**<br>**_£_**<br>267,251<br>49,496<br>-<br>316,747<br>176,525<br>23,754<br>-<br>200,279<br>£ 116,468<br>£ 90,726|**Audio**<br>**and video**<br>**equipment**<br>**_£_**<br>33,498<br>2,365<br>-<br>35,863<br>22,931<br>2,586<br>-<br>25,517<br>£ 10,346<br>£ 10,567|**Assets**<br>**under**<br>**construction**<br>**_£_**<br>-<br>170,136<br>-<br>170,136<br>-<br>-<br>-<br>£ 170,136<br>£ -|**Heritage**<br>**assets**<br>**_£_**<br>-<br>22,000<br>-|**Semi-**<br>**permanent**<br>**structures**<br>**_£_**<br>-<br>15,745<br>-<br>15,745<br>-<br>787<br>787<br>£ 14,958<br>£ -|**Total**<br>**_£_**<br>802,126<br>670,881<br>(6,833)|
|---|---|---|---|---|---|---|---|
||||||22,000||1,466,174|
||||||-<br>-||584,462<br>167,314<br>(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**<br>Stock of containers<br>**14. DEBTORS**<br>Trade debtors<br>Prepayments and accrued income<br>Gift Aid debtor<br>Other debtors<br>Loans<br>Amounts due from subsidiary<br>undertaking|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>39,800<br>39,800<br>£ 39,800<br>£ 39,800<br>**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>57,656<br>10,959<br>7,314<br>7,491<br>-<br>-<br>3,351<br>-<br>-<br>36,550<br>209,000<br>233,063<br>£ 277,321<br>£ 288,063<br>**Consolidated**<br>**Consolidated**|**2021**<br>**_£_**<br>-<br>£ -<br>**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>-<br>159<br>7,314<br>7,491<br>367,095<br>123,418<br>3,351<br>-<br>-<br>-<br>209,000<br>232,705<br>£ 586,760<br>£ 363,773<br>**Charity**<br>**Charity**|**2021**<br>**_£_**<br>-<br>£ -<br>**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>-<br>159<br>7,314<br>7,491<br>367,095<br>123,418<br>3,351<br>-<br>-<br>-<br>209,000<br>232,705<br>£ 586,760<br>£ 363,773<br>**Charity**<br>**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**<br>**2020**<br>**_£_**<br>**_£_**<br>Trade creditors<br>106,810<br>76,039<br>Other taxes and social security costs<br>48,802<br>10,351<br>Other creditors<br>4,424<br>7,734<br>Loans from trustees<br>-<br>-<br>Accruals and deferred income<br>8,337<br>8,066<br>Bank loan<br>43,333<br>-<br>£ 211,706<br>£ 102,190<br>**REDITORS amounts falling due after one year**<br>**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>Bank loan<br>156,667<br>200,000<br>£ 156,667<br>£ 200,000<br>**Consolidated**<br>**Consolidated**|**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>106,810<br>76,039<br>-<br>-<br>4,415<br>7,375<br>-<br>-<br>6,412<br>6,416<br>43,333<br>-<br>£ 160,970<br>£ 89,830<br>**2021**<br>**2020**<br>**_£_**<br>**_£_**<br>156,667<br>200,000<br>£ 156,667<br>£ 200,000<br>**Charity**<br>**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<br>Restricted funds<br>Restricted funds<br>Unrestricted designated<br>funds<br>Unrestricted undesignated<br>funds<br>Unrestricted undesignated<br>funds|**_Balance b/f_**<br>**At 01/01/21**<br>**£**<br>727,315<br>-<br>-<br>£ 727,315<br>**_Balance b/f_**<br>**At 01/01/20**<br>**£**<br>501,990<br>-<br>£ 501,990|**Income**<br>**received**<br>**£**<br>1,451,250<br>-<br>405,325<br>£ 1,856,575<br>**Income**<br>**received**<br>**£**<br>1,319,869<br>50,000<br>£ 1,369,869|**Expenditure**<br>**£**<br>1,274,743<br>-<br>-<br>£ 1,274,743<br>**Expenditure**<br>**£**<br>1,119,544<br>25,000<br>£ 1,144,544|**Transfers**<br>**in/out**<br>**£**<br>(315,906)<br>721,231<br>(405,325)<br>£ -<br>**Transfers**<br>**in/out**<br>**£**<br>25,000<br>(25,000)<br>£ -|**_Balance c/f_**<br>**At 31/12/21**<br>**£**<br>587,916<br>721,231<br>-|
|---|---|---|---|---|---|
||||||£ 1,309,147|
||||||**_Balance c/f_**<br>**At 31/12/20**<br>**£**<br>727,315<br>-|
||||||£ 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**<br>**_Current Year_**<br>Unrestricted undesignated funds<br>Unrestricted designated fund<br>Restricted funds<br>**_Prior Year_**<br>Unrestricted undesignated funds<br>Restricted funds<br>**Charity only**<br>**_Current Year_**<br>Unrestricted undesignated funds<br>Restricted funds<br>**_Prior Year_**<br>Unrestricted undesignated funds<br>Restricted funds|**Tangible**<br>**fixed**<br>**assets**<br>**£**<br>721,231<br>-<br>£ 721,231<br>217,664<br>-<br>£ 217,664<br>684,274<br>-<br>£ 684,274<br>217,665<br>-<br>£ 217,665|**Net current**<br>**assets /**<br>**liabilities**<br>**£**<br>744,583<br>-<br>£ 744,583<br>709,651<br>-<br>£ 709,651<br>781,540<br>-<br>£ 781,540<br>709,650<br>-<br>£ 709,650|**Non current**<br>**assets /**<br>**liabilities**<br>**£**<br>(156,667)<br>-<br>-<br>£ (156,667)<br>(200,000)<br>-<br>£ (200,000)<br>(156,667)<br>-<br>£ (156,667)<br>200,000<br>-<br>-<br>£ (200,000)|**31/12/2021**<br>**Total**<br>**£**<br>1,309,147<br>-<br>-|
|---|---|---|---|---|
|||||£ 1,309,147|
|||||727,315<br>-|
|||||£ 727,315|
|||||1,309,147<br>-|
|||||£ 1,309,147|
|||||727,315<br>-|
|||||£ 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**<br>**2020**<br>**£**<br>**£**<br>**Net cash flow from operating activities**<br>Net movement in funds<br>581,832<br>225,325<br>158,464<br>78,634<br>Deduct investment income<br>(8,012)<br>(20,463)<br>(Increase)/decrease in debtors<br>10,742<br>(13,843)<br>Increase/(decrease) in creditors<br>109,516<br>143,730<br>**Net cash provided by operating activities**<br>£ 852,542<br>£ 413,383<br>Add back depreciation charge and<br>profit/loss on disposals<br>**Consolidated**|**2021**<br>**2020**<br>**£**<br>**£**<br>581,832<br>225,325<br>157,677<br>78,633<br>(8,012)<br>(20,463)<br>(222,987)<br>(40,880)<br>71,140<br>137,546<br>£ 579,650<br>£ 380,161<br>**Charity only**|**2021**<br>**2020**<br>**£**<br>**£**<br>581,832<br>225,325<br>157,677<br>78,633<br>(8,012)<br>(20,463)<br>(222,987)<br>(40,880)<br>71,140<br>137,546<br>£ 579,650<br>£ 380,161<br>**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<br>Later than one year and not later than<br>five years|**2021**<br>**2020**<br>60,000<br>£<br>48,000<br>£<br>-<br>£<br>4,000<br>£<br>**Land and buildings**|**2021**<br>**2020**<br>-<br>£<br>-<br>£<br>-<br>£<br>-<br>£<br>**Other**|**2021**<br>**2020**<br>-<br>£<br>-<br>£<br>-<br>£<br>-<br>£<br>**Other**|
|---|---|---|---|
||||-<br>£|



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



33