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2022-03-31-accounts

Charity registration number 1102206

Company registration number 05014909 (England and Wales)

EASTGATE (KENT) LTD

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

EASTGATE (KENT) LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees David Stevens
Hugh Richard
Akinsola Osibodu
Dennis Scudder
Paul Bungay
Executive Church Leadership Team Peter Carter
Kim Carter
David Carter
David Stevens
Donna King
Elizabeth Smallwood
Paul Bungay
Stephanie Cox
Dave Foggon
Secretary Dennis Scudder
Charity number 1102206
Company number 05014909
Principal address Eastgate
141 Springhead Parkway
Northfleet
Gravesend
Kent
DA11 8AD
Registered office Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Independent examiner Colin Dadswell FCA ACCA DChA
Caladine Limited
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF

EASTGATE (KENT) LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Bankers

CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Barclays Leicestershire LE87 2BB

EASTGATE (KENT) LTD

CONTENTS

Page
Trustees' report 1 - 3
Statement of trustees' responsibilities 4
Independent examiner's report 5
Statement of financial activities 6
Statement of financial position 7
Notes to the financial statements 9 - 25

EASTGATE (KENT) LTD

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

The trustees present their report and accounts for the year ended 31 March 2022.

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

Objectives and activities

The principal objectives of Eastgate (Kent) Ltd are that of the advancement of the Christian Faith in the UK and Overseas; the advancement of the public benefit of religious and other education, and the relief of the aged, poor, sick and disabled.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. All of the many and varied activities of Eastgate as described in this report are available to, and for the benefit of, the public across the complete age spectrum, including children, teenagers and adults. Therefore, the trustees believe that Eastgate fully complies with the requirements of the Charities Act 2011 with respect to public benefit.

Achievements and performance

2021 was the eighth full year that Eastgate, a Christian worship facility and community building, has been open. The building comprises of a 500-seater auditorium on the first floor and a welcome area/coffee shop, meeting rooms and office space on the ground floor.

The meeting rooms and auditorium are used by the church and are also made available for community groups and commercial rental. The coffee shop is open to the public as well as to visitors and users of the facilities at Eastgate and those who work in the building.

During the first part of 2021 we were coming out of another phase of lock down due to the Covid pandemic and all our activities were online, with our Sunday meetings live streamed. From April 2021 people were allowed to start meeting in person with social distancing restrictions and therefore we were able to hold our first in person Sunday meeting of the year on Easter Sunday, 4th April, this meeting was also live streamed. As the year progressed and restrictions eased, we were able to meet more and more in person, whilst continuing with a selection of online activities for those who were still not able or mix with others. Eastgate has also continued to live stream our Sunday morning meeting.

Over the summer we spent time considering how we would provide a wider range of opportunities for people to come and worship together and fellowship. In the autumn we started afternoon meetings on the 1st and 3rd Sunday of the month which also had children’s and youth groups. As we headed into the New Year the 1st Sunday of the month afternoon meeting also included a ‘bring and share’ meal giving people the opportunity to connect and spend time together. We also started a once-a-month Friday night worship evening.

Our children’s and youth groups continue to meet on a Sunday morning. The youth also meet once a month on a Friday evening and have the opportunity to attend our monthly worship evenings. The youth group had a weekend away together at a local activity centre during the autumn term.

Connection groups have continued online and in person. These groups include a mixture of locality groups; teaching groups, for example ‘Discovering Kingdom Culture’; and people gathering around a common interest, for example the ‘Potting Shed’ sharing plants and gardening ideas. We have also run our Vison and Value course online and in person to help people who have recently joined the church understand more of our history and culture.

With an increasingly diverse congregation, we have continued the conversation on racial equality, recognising that we are on a journey towards unity.

EASTGATE (KENT) LTD

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

Our connection with the local community continued to grow during this year. We organised an Epic Egg Hunt on Good Friday; a Summer Party in Penn Park in July; a craft fair; a Light Party on 31st October and a Christmas Fair and Nativity in the lead up to Christmas. Our connections with local Food Banks have grown and in May we launched ‘Nourish’ with the aim of loving and caring for our local community by providing practical support through free healthy meals. Around 50 to 60 meals are prepared at Eastgate each Thursday and then delivered out by volunteers to people we have come into contact with through local food banks, schools and other contacts. During the summer holidays we also ran a Family Summer Lunch Club where families we are invited to come and help prepare a healthy meal to eat together. The primary school opposite that opened in September 2020 has continued to grow and we are very grateful to them for allowing us to use their hall on a Sunday for our older children to meet in. One of our directors, Steph Cox, has also been appointed as a governor of the school monitoring special needs and inclusion.

Our focus on helping people to experience health, wellbeing and freedom has also continued. Eastgate’s Healing Centre offered online appointments enabling people to receive prayer for healing and the group started meeting in person again at the end of the year. Our group of Counsellors has grown, and the team are in the process of setting themselves up as an independent charity, so it is easier for them to attract external funding and continue to expand their services. Through this year to enable them to offer low-cost counselling Eastgate gave them a bursary fund of £2,000 from our giving fund.

Eastgate’s School of Spiritual Life were able to have their final meeting of the academic year in person at the end of May 2021. The new academic year started in October 2021 in our building with 28 people in our year 1, 31 in year 2 and a group of 10 people in year 3. In October we also launched our on-line School Spiritual Life on a Wednesday evening with over 80 people attending for all over the country and abroad. In March we ran an Encounter Weekend attended by over 100 people where people had the opportunity to develop a closer relationship with God.

As we have come out of a period of reduced income due the pandemic the Trustees and Executive Leadership Team have continued to work closely together monitoring our finances on a regular basis. We are extremely grateful to Eastgate members who continue to give faithfully to support all our activities.

Financial review

The unrestricted funds showed a surplus for the year of £69,294. Transactions regarding the governance of the building fund, bank loan interest and depreciation to date of the building have been primarily charged against the building fund leaving a balance on that fund of £589,984 at 31 March 2022. The trustees would like to express their thanks for donations and grants given during the year.

The trustees have developed a reserves policy that they would hold reserves to cover a potential reduction or loss of income. It would be unlikely that all income sources would stop simultaneously, and therefore the trustees would have time to restructure their activities. Eastgate Centre is insured, and the insurance policy would cover some loss of income in the event that the centre was unavailable. Looking at income streams from donations, Day and Evening Eastgate School of Spiritual Life, Conferences and building rentals, the trustees have considered that a total reserve of £231,500 is would be prudent to cover the eventuality of a reduction of income in each area. Unrestricted reserves at 31 March 2022 amounted to £350,450.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity is a company limited by guarantee, company number 5014909, incorporated on 14 January 2004. It is also a registered charity, number 1102206. Eastgate (Kent) Ltd is governed by its Memorandum of Association and Articles of Association.

EASTGATE (KENT) LTD TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 The trustees, who aTe also the dirèctors for the purtKJsÈ ol company law. and who setvecatwJ 81141 SpriThJh8ad Parlway. Northfleel, DA118AD. Eastgate (Kent) Ltd is led by the Execubvè Church Leadership T8am. DLtring the y&8r Ihis team was made up of Fefr Carter, Kim Carter. Donna King, Dave Carter, Ltz Smal￿. David Stevens, Paul Bungay. Stsphanie Cox and Dave Foggon. The leadership team meet fr9quonlfy lo discJJss and oversee the affairs of Eastgate. Th8y work with other member5 of staff arHJ a large nUm￿r of volunleets to implement the vision, goas and obj8Cts of the Trust. Trustees are appointed by the Executive Leadership Team. with the approval ofthe other Trustee5. Thg Twuslees mel three times *Juring the year and were regularty ConsU￿ed 8nd infomed on matt￿¥ of importance. Thel stees, Teport was approved by the Board ofTnJstee3. David Steven¥ Trustee Dated. ....%g.1 lo l&¥

EASTGATE (KENT) LTD

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2022

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

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

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

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

EASTGATE (KENT) LTD INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF EASTGATE (KENT) LTD I report lo the trustees on my ex8minab.on of the financial statements of Eastgate (Kentl Ltd (the charity) for the year ended 31 March 2022. Responsibllltles and basis of report As the trustees of the charity land also rts directors for the purposes of company lawl you are responsible for the preparation of the financsal ststements in accordarKe the requirements of the Companies Act 20{￿ Ilhe 20C6 Acti. Having satisfied myself Ihal the financial statements of the ehanty are not required to be audit￿ under Part 16 of the 2006 Act and a￿ eligible for independent examination, I report in respect of my examination of the charity's financial statements carried out under section 145 of the charib.es Act 2011 (the 2011 Act). In carrying out my examinab'on I have followed all the applicable Direth"ons given by the Charity Commission under section 14515llbl of the 2011 Acl_ Indopendent examinerfs stst8mgnt sin￿ the charity's gross income exceeded £250.000 your examiner must be a member of a b￿JY listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examinalion because l am a memb¥ of The Association of Chartered Certified Accountants. vknich is one of the listed bcmjies. I have completed my examinalion. I confim that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect. accounting records were not kept in respect of the charty as required by section 386 of the 2006 Act,. or the financial stslements do not accord wth those records." or the financial statements do not comply y￿h the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.. or the financial statements have not been prepared in accordarfrce with the methc&ts and principles of the Stslemenl of Recommended Pracb'ce for accounb.ng and reporting by charities applicable lo charities preparing their accounts in accordance wrth the Finanaal Reportir¥J Stsndard applicable in the UK arKI Republic of Ireland IFRS 102). I have no eoncerns and have come across no other matters in (x)nnection Nwth the examination to which attention should be drawn in this report in order lo enable a proper understanding of the financial statements to be ￿a￿)ed. Colln Dadswell FCA ACCA DChA Caladine Limited Chanty House 22 Upperton Road Easlboume East Sussex BN21 1BF Dated. ..Iltrlio.1.2ch.Z.L

EASTGATE (KENT) LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Restricted **Total ** Unrestricted Restricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
Notes £ £ £ £ £ £
Income from:
Voluntary income 3 715,553 77,266 792,819 733,741 65,770 799,511
Charitable activities 4 169,170 22,771 191,941 136,856 9,600 146,456
Investments 5 17 10 27 62 40 102
Other income 6 1,783 - 1,783 - - -
Total income 886,523 100,047 986,570 870,659 75,410 946,069
Expenditure on:
Charitable activities 7 826,239 158,649 984,888 829,748 125,812 955,560
Other 11 1,399 - 1,399 - - -
Total expenditure 827,638 158,649 986,287 829,748 125,812 955,560
Net incoming/(outgoing)
resources before transfers 58,885 (58,602) 283 40,911 (50,402) (9,491)
Gross transfers between
funds 20 10,409 (10,409) - (108) 108 -
Net income/(expenditure) for
the year/
Net movement in funds 69,294 (69,011) 283 40,803 (50,294) (9,491)
Fund balances at 1 April 2021 960,756 721,739 1,682,495 919,953 772,033 1,691,986
Fund balances at 31 March
2022 1,030,050 652,728 1,682,778 960,756 721,739 1,682,495

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

All income and expenditure derive from continuing activities.

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

EASTGATE (KENT) LTD STATEMENT OF FINANCIAL POSITION AS AT31 MARCH 2022 2022 2021 Fixed assets Property, plant arKI equipment Invoslments 13 14 2.652.219 2.730.801 2.652.220 2,730,602 Currènt assets Trade and other receivables Cash at bank and in hand Is 53.332 J5.031 82,703 364.232 448,935 (110.263) Currnnt liabilities 17 1116.4811 Net currenl assets 331,882 3￿,872 Total assets less current liabili1Ses 2.984,102 3,(￿7,274 Non-curront liab41iti•s 18 {1.301,324} 11,384,779} Net &￿ets 1,682,778 1,682,495 Income funds Reslricteil funds Un￿striCted funds 652,728 1,030,050 721,739 ,758 1.682,778 1,682,495 The company is entiled to the exemption from the au￿rt requirement ex)ntained in sec￿on 477 of th8 Companies Act 2006, forthe year endec$ 31 March 2022. The directors ackno￿edge their responsibilit￿S for ￿1Mp￿rng wilh thè requirements of tha Companies Act 2006 with respect to t￿Ount1rSg r￿OrdS the prep3r8tion of financial stalernents. The members have not rèquired the ￿)MpanY to oblain an audti of its finan(Aa] statements for the year in question in ace4)rdance with seCt￿n 476 These finan￿81 ststements have been p￿pared in 8c*ordan¢È with the prOM￿n$ applicab18 to rnmpanies subject lo the small companies regime. The finan£?al statements were approved by the Twstees on ... David S19vens Trustse Dennis Sr44dder Trustee Company reglstratlon numbgr 05014909

EASTGATE (KENT) LTD

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

2022 2021
Notes £ £ £ £
Cash flows from operating activities
Cash generated from/(absorbed by)
operations 112,892 (28,397)
Investing activities
Purchase of property, plant and equipment - (17,875)
Proceeds on disposal of property, plant and
equipment 43 -
Investment income received 27 102
Net cash generated from/(used in)
investing activities 70 (17,773)
Financing activities
Repayment of bank loans (82,163) (18,761)
Net cash used in financing activities (82,163) (18,761)
Net increase/(decrease) in cash and cash
equivalents 30,799 (64,931)
Cash and cash equivalents at beginning of year 364,232 429,163
Cash and cash equivalents at end of year 395,031 364,232

EASTGATE (KENT) LTD

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

1 Accounting policies

Company information

Eastgate (Kent) Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Chantry House, 22 Upperton Road, Eastbourne, East Sussex, BN21 1BF. The charity operates from 141 Springhead Parkway. Northfleet, Gravesend, Kent, DA11 8AD

1.1 Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

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

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

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

1.4 Income

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

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

Grants are recognised in full in the Statement of Financial Activities in the year in which they are receivable.

Conference and Ministry School fees are allocated to the period in which the event or school term occurs. Advances delegate fees received are included as deferred income in the balance sheet.

EASTGATE (KENT) LTD

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

1 Accounting policies (Continued)

1.5 Expenditure

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

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

Resources expended are recognised in the period in which they are incurred and allocated to the particular cost centre to which they relate. Resources expenses include irrecoverable VAT.

Expenditure on conferences which occur after the period end are included as prepayments in the statement of financial position, thus matching the accounting treatment for income.

Support and governance costs directly related to School of Spiritual Life and Training and Equipping have been charged to these activities. All general support costs are apportioned between the activities as follows:

Church activities 77% School of Spiritual Life 20% Training and Equipping 3%

1.6 Property, plant and equipment

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

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings 2% on a straight line basis Fixtures, fittings and equipment 20% on a straight line basis

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

1.7 Non-current investments

Investments in subsidiaries are held at cost.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8 Impairment of non-current assets

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

EASTGATE (KENT) LTD

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

1 Accounting policies (Continued)

1.9 Cash and cash equivalents

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

1.10 Financial instruments

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

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

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

Basic financial assets

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

Basic financial liabilities

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

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

Derecognition of financial liabilities

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

1.11 Employee benefits

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

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

1.12 Retirement benefits

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

1.13 Taxation

The trust is a charity, and in the opinion of the trustees its incoming resources are not subject to Corporation Tax.

EASTGATE (KENT) LTD

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

2 Critical accounting estimates and judgements

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

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

3 Voluntary income

Unrestricted Unrestricted Restricted Restricted Total Unrestricted Unrestricted Restricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
Donations and gifts 657,228 52,266 709,494 668,942 65,770 734,712
Legacies receivable 25,000 25,000 50,000 - - -
Grants 33,325 - 33,325 64,799 - 64,799
715,553 77,266 792,819 733,741 65,770 799,511
Donations and gifts
Donations and gifts 550,081 44,007 594,088 565,680 59,767 625,447
Gift aid tax relief 106,347 8,259 114,606 101,692 6,003 107,695
Transformation centre
donations 800 - 800 1,570 - 1,570
657,228 52,266 709,494 668,942 65,770 734,712

EASTGATE (KENT) LTD

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

4 Charitable activities

Church
School of

School of

Training and

Training and

Training and
Total Church
School of

School of

Training and

Training and
Total
activities Spiritual Life Equipping 2022 activities Spiritual Life Equipping 2021
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £ £ £
School fees - 58,631 - 58,631 - 73,647 - 73,647
Conference fees 20,515 - 20,237 40,752 9,795 - 24,214 34,009
Church Holiday - - - - 9,022 - - 9,022
Books and CDs income - - 1,319 1,319 - - - -
Charitable rental income 63,807 - - 63,807 5,503 - - 5,503
Transformation centre income 27,432 - - 27,432 24,275 - - 24,275
111,754 58,631 21,556 191,941 48,595 73,647 24,214 146,456
Analysis by fund
Unrestricted funds 91,239 58,631 19,300 169,170 38,995 73,647 24,214 136,856
Restricted funds 20,515 - 2,256 22,771 9,600 - - 9,600
111,754 58,631 21,556 191,941 48,595 73,647 24,214 146,456

EASTGATE (KENT) LTD

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

5 Investments

Unrestricted Unrestricted Restricted Restricted Total Unrestricted Unrestricted Restricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
Interest receivable 17 10 27 62 40 102
6 Other income
Unrestricted Total
funds
2022 2021
£ £
Other income 1,783 -

EASTGATE (KENT) LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

7 Charitable activities

Church
School of

School of

Training and

Training and
activities Spiritual Life Equipping Total Total
2022 2022 2022 2022 2021
£ £ £ £ £
Staff costs 334,591 52,835 11,223 398,649 459,263
Travel 489 - - 489 -
Consultancy 4,247 9,190 - 13,437 9,947
Church holiday - - - - 9,201
Outreach and mission 3,359 - - 3,359 784
Website and rebrand 4,996 - - 4,996 2,948
Children and youth 6,906 - - 6,906 1,984
Church events and groups 9,627 - - 9,627 2,306
Members fund - - - - 11
Worship, sound and lighting 14,174 - 2,825 16,999 21,068
Conferences hosted 64 - 25,697 25,761 18,803
Transformation centre & Sozo ministry 12,961 - - 12,961 9,101
Conferences attended, training and
retreats 3,329 - - 3,329 690
Direct costs - 2,212 - 2,212 3,194
Healthcare support 13,741 - - 13,741 -
408,484 64,237 39,745 512,466 539,300
Grant funding of activities (see note 9) 75,764 - 500 76,264 45,057
Share of support costs (see note 8) 373,662 9,911 1,673 385,246 341,029
Share of governance costs (see note 8) 8,176 1,741 995 10,912 30,174
866,086 75,889 42,913 984,888 955,560
Analysis by fund
Unrestricted funds 733,113 75,889 17,237 826,239 829,748
Restricted funds 132,973 - 25,676 158,649 125,812
866,086 75,889 42,913 984,888 955,560

EASTGATE (KENT) LTD

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

7 Charitable activities (Continued)

For the year ended 31 March 2021

Church
School of

School of

Training and

Training and

Training and
Total
activities Spiritual Life Equipping 2021
£ £ £ £
Staff costs 354,371 77,054 27,838 459,263
Consultancy 4,803 5,144 - 9,947
Church holiday 9,201 - - 9,201
Outreach and mission 784 - - 784
Website and rebrand 2,948 - - 2,948
Children and youth 1,984 - - 1,984
Church events and groups 2,306 - - 2,306
Members fund 11 - - 11
Worship, sound and lighting 21,068 - - 21,068
Conferences hosted 177 - 18,626 18,803
Transformation centre & Sozo ministry 9,101 - - 9,101
Conferences attended, training and retreats 690 - - 690
Direct costs - 3,194 - 3,194
407,444 85,392 46,464 539,300
Grant funding of activities (see note 9) 45,057 - - 45,057
Share of support costs (see note 8) 327,401 11,660 1,968 341,029
Share of governance costs (see note 8) 27,416 2,263 495 30,174
807,318 99,315 48,927 955,560
Analysis by fund
Unrestricted funds 691,836 99,315 38,597 829,748
Restricted funds 115,482 - 10,330 125,812
807,318 99,315 48,927 955,560

EASTGATE (KENT) LTD

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

8 Support costs
Support
Governance
Total Support costs Governance Total
costs costs 2022 costs 2021
£ £ £ £ £ £
Staff costs 203,521 - 203,521 180,007 - 180,007
Depreciation 76,940 - 76,940 82,599 - 82,599
Bank loan interest 36,548 - 36,548 38,281 - 38,281
Building maintenance 27,981 - 27,981 9,761 - 9,761
Insurance 5,787 - 5,787 5,628 - 5,628
Light, heat and water 22,421 - 22,421 13,227 - 13,227
Cleaning 2,984 - 2,984 1,394 - 1,394
Advertising 265 - 265 2,221 - 2,221
Computers and software 1,284 - 1,284 839 - 839
Office, printing and
stationery 4,838 - 4,838 4,399 - 4,399
Telephone 2,677 - 2,677 2,673 - 2,673
Independent examination - 1,440 1,440 - 1,440 1,440
Accountancy - 3,906 3,906 - 3,533 3,533
Legal and professional - 1,455 1,455 - 1,375 1,375
Bank and service
charges - 3,088 3,088 - 23,160 23,160
Payroll - 1,023 1,023 - 666 666
385,246 10,912 396,158 341,029 30,174 371,203
Analysed between
Charitable activities 385,246 10,912 396,158 341,029 30,174 371,203

EASTGATE (KENT) LTD

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

9 Grants payable

Church
Training and

Church
activities Equipping activities
2022 2022 2021
£ £ £
Grants to institutions:
Tear Fund 3,600 - 3,600
New Generation Church Trust - - 3,300
Gravesham Sanctuary 9,698 - 1,700
Ellenor Foundation 3,000 - 3,000
Transform Work UK - - 2,500
Jubilee Medical Centre 3,000
Hive Hope 4,458 - 7,000
Heaven in Healthcare 20,000 - 4,000
Gravesham Foodbank 3,853 - 5,000
Imago Dei Prison Ministries 2,000 3,000
Emerge 2,000 -
Open Doors 2,000 - -
Abound and Flourish 2,000 -
Iris Global 3,600 -
Asia Link 2,000 - -
A21 Campaign 2,000 - -
Other grants (£1,500 and under) 4,519 - 9,457
67,728 - 44,557
Grants to individuals 8,036 500 500
75,764 500 45,057

10 Trustees

None of the trustees received any remuneration or benefits from the charity during the year.

The trustees and executive church leadership team have donated an aggregate sum of £65,453 (2021: £71,005) to the charity.

11 Other

Unrestricted Total
funds
£
2022 2021
Net loss on disposal of tangible fixed assets 1,399 -

EASTGATE (KENT) LTD

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

12 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Direct charitable activities 16 25
Administration and support 10 9
Total 26 34
Employment costs 2022 2021
£ £
Wages and salaries 536,333 568,929
Social security costs 40,287 43,053
Other pension costs 25,550 27,288
602,170 639,270
The number of employees whose annual remuneration was £60,000 or more
were:
2022 2021
Number Number
£60,001 - £70,000 1 1

EASTGATE (KENT) LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

13 Property, plant and equipment

Property, plant and equipment
Land and Fixtures, Total
buildings fittings and
equipment
£ £ £
Cost
At 1 April 2021 3,134,144 205,251 3,339,395
Disposals - (1,803) (1,803)
At 31 March 2022 3,134,144 203,448 3,337,592
Depreciation and impairment
At 1 April 2021 438,420 170,374 608,794
Depreciation charged in the year 62,683 14,257 76,940
Eliminated in respect of disposals - (361) (361)
At 31 March 2022 501,103 184,270 685,373
Carrying amount
At 31 March 2022 2,633,041 19,178 2,652,219
At 31 March 2021 2,695,724 34,877 2,730,601

Eastgate has been granted a 999 year lease to land at Springhead Parkway, Northfleet, Kent at a peppercorn rent, dated 18 October 2012.

14 Fixed asset investments - see note 25

Fixed asset investments - see note 25
Other
investments
Cost
At 1 April 2021 & 31 March 2022 1
Carrying amount
At 31 March 2022 1
At 31 March 2021 1

EASTGATE (KENT) LTD

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

15 Trade and other receivables
2022 2021
Amounts falling due within one year: £ £
Trade receivables 27,561 53,772
Amounts owed by subsidiary undertakings 8,435 8,435
Other receivables 17,336 20,313
Prepayments and accrued income - 183
53,332 82,703
16 Borrowings
2022 2021
£ £
Bank loans 1,382,636 1,464,799
Payable within one year 81,312 80,020
Payable after one year 1,301,324 1,384,779
Amounts included above which fall due after five years:
Payable by instalments 951,467 936,979

The loan from Barclays Bank PLC has a total drawdown facility of £1.56m repayable over a term of 20 years with repayments commencing October 2015. Interest is charged at 2.4% above base rate.

The loan is secured by a first and only legal charge on the lease to the land and buildings at Eastgate.

17 Current liabilities

17 Current liabilities
2022 2021
Notes £ £
Bank loans 16 81,312 80,020
Other taxation and social security 11,049 11,536
Trade payables 6,232 1,990
Accruals and deferred income 17,888 16,717
116,481 110,263
18 Non-current liabilities
2022 2021
Notes £ £
Bank loans 16 1,301,324 1,384,779

EASTGATE (KENT) LTD

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

19 Retirement benefit schemes

Defined contribution schemes

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

The charge to profit or loss in respect of defined contribution schemes was £25,550 (2021 - £27,288).

20 Restricted funds

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

Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at
1 April 2021 resources expended 31 March
£ £ £ £ 2022
£
Building fund 668,752 34,783 (113,551) - 589,984
Eastgate Music 14,382 - - - 14,382
Living Fire 38,605 23,272 (25,675) (18,713) 17,489
ESSL Bursary Fund - 25,000 - 1,324 26,324
Members Fund - 3,003 (1,335) - 1,668
Nourish - 952 (6,251) 8,180 2,881
November Offering - 13,037 (11,837) (1,200) -
721,739 100,047 (158,649) (10,409) 652,728

Movements for the year ended 31 March 2021

Movements for the year ended 31 March 2021
Movement in funds
Balance at Incoming Resources Transfers Balance at
1 April 2020 resources expended 31 March
£ £ £ £ 2021
£
Building fund 739,212 45,024 (115,484) - 668,752
Eastgate Music 14,382 - - - 14,382
Living Fire 18,439 26,125 (5,959) - 38,605
Heaven in Healthcare - 4,261 (4,369) 108 -
772,033 75,410 (125,812) 108 721,739

EASTGATE (KENT) LTD

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

20 Restricted funds (Continued)

Building fund

This fund was for the construction of a Place of Worship and community Centre details of which are set out in the financial statements. Bank loan interest and depreciation on the buildings is charged against the fund.

Eastgate Music

This fund is for monies given specifically for the development of worship at Eastgate and production and distribution of music.

Living Fire is a network of Churches who come together to share ideas and experiences of Church evangelism and worship. Historically this has involved Eastgate hosting conferences, training days and mentoring Church leaders. Moving forwards, Eastgate plan to establish Living Fire as its own separate charity in the 2022/23 financial year.

Heaven in Healthcare

Heaven in Healthcare is a project being developed to build a network of Christians working in healthcare in order to promote the virtues of Christianity in the Healthcare environment. As of May 2020, Heaven in Healthcare was established as a separate charity (charity number: 1191175).

ESSL Bursary Fund

The ESSL Bursary fund is for the purpose of providing financial support for students who would otherwise be unable to attend the school.

Members Fund

The Members Fund is for monies given by Eastgate church goers to help other members of the church who are in need of support. It is up to the discretion of the charity who the beneficiaries of the money are.

Nourish Fund

The Nourish fund represents funds given for the purpose of providing a weekly free meal to people needing extra support in our local community.

November Offering Fund

The November Offering fund represents funds given for the purpose of supporting Gravesham Sanctuary; Nourish; Hive Hope, Northfleet's Food Bank and the Gravesend Food Bank

EASTGATE (KENT) LTD

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

21 Designated funds

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

Movement
in funds
Balance at Transfers Balance at Incoming Balance at
1 April 2020 1 April 2021 resources 31 March
£ £ £ £ 2022
£
Eastgate School of Spiritual Life 18,354 (18,354) - - -
Training and Equipping 7,960 (7,960) - - -
26,314 (26,314) - - -

Eastgate School of Spiritual Life

A fund designated to train and equip people for the Christian life in the power of the Holy Spirit and the advance of the Christian gospel. At the end of the 2021 financial year, the decision was made to close this fund and the remaining balance was transferred to general unrestricted funds.

Training and Equipping

This fund is an umbrella fund for training and equipping conferences enabling Christians to prepare for living the Christian life. At the end of the 2021 financial year, the decision was made to close this fund and the remaining balance was transferred to general unrestricted funds.

22 Analysis of net assets between funds

Unrestricted
Restricted
Total Unrestricted Unrestricted
Restricted
Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
£ £ £ £ £ £
Fund balances are represented by:
Property, plant and
equipment
679,599
1,972,620 2,652,219 562,050 2,168,551 2,730,601
Investments
1
- 1 1 - 1
Current assets/(liabilities)
350,450
(18,568) 331,882 398,705 (62,033) 336,672
Long term liabilities
-
(1,301,324)
(1,301,324)
- (1,384,779)
(1,384,779)
1,030,050 652,728 1,682,778 960,756 721,739 1,682,495

EASTGATE (KENT) LTD

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

23 Operating lease commitments

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

2022 2021
£ £
Within one year 626 626
Between two and five years 626 1,253
1,252 1,879

24 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2022 2021
£ £
Aggregate compensation 240,666 280,754

Mrs J Carter, wife of David Carter (member of the Executive Church Leadership Team), was paid £15,096 (2021: £14,663) for overseeing Welcome and Integration and Connection Groups.

Mrs J Bungay, wife of Paul Bungay, was paid £13,868 (2021: £10,743) for youth work.

The charity engaged MAS Cleaning, a business owned by Mr M Smallwood, husband of Executive Church Leadership Team member Elizabeth Smallwood to undertake cleaning work. During the year the business was paid a total of £180 (2021: £280) for services rendered.

Edward Smallwood, son of Elizabeth Smallwood, carried out some PA and caretaking duties and was paid a total of £749 during the year.

Elaine Richard, wife of Trustee Hugh Richard, was paid £179 for overseeing resource sales at the Encounter Weekend in March.

25 Subsidiaries

These financial statements are separate charity financial statements for Eastgate (Kent) Development Ltd.

Details of the charity's subsidiaries at 31 March 2022 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
Eastgate (Kent) England Building development Ordinary 100.00 -
Development Ltd