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2022-03-31-accounts

HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

HARMONY CHRISTIAN MINISTRIES

Statutory Financial Statements & Trustees Report 31[st] March 2022

Charity No: 1105101 Company No: 3702274

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

Legal and Administrative Information

Trustees: Mr Kayode Obateru
Mr Adebowale A Adesina (resigned 13 October 2022)
Mr Morakinyo O Bayode (resigned 13 October 2022)
Rev John Adewale Olulana (appointed 1 January 2022)
Fredah Nkandu Babanawo (appointed 12 October 2022)
Charity Registration No: 1105101
Company Registration No: 3702274
Principal Office:
Concord House
23-27 Kemp Road
Dagenham
Essex
RM8 1ST
Accountants: Rev Olu Olasode PhD APSA FCCA
TL First Accountants & Consultants
1 Copers Cope Road
Beckenham, Kent
BR3 1NB
Bankers: Natwest Bank Plc
Barclays Bank Plc

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

TRUSTEES REPORT 2022

Introduction

The trustees who are also the directors for the purpose of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have prepared the accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (Charities SORP FRS 102) (effective 1 January 2019).

Status and Administration

The Charity is constituted and registered with the Charity Commission under charity number 1105101.

Governance and Internal Control

Trustees serve for a year period and may be re-elected. The trustees meet six times a year including a weekend meeting to review the strategy and performance and to set the operating plans and budgets.

Financial Activities and Results

The net incoming resources for the year amounted to £129,965 (2021: £87,039) leading to a net surplus carried forward of £835,760 as at 31 March 2022.

Investment Powers, Policy and Performance

The memorandum and articles of association, which states clear guidelines on investments policy, governs the trustees’ investments powers.

Reserves

The trustees have forecast the level of free reserves ( that is those funds not tied up in fixed assets, and designated as restricted funds) that the charity will require to sustain its operations over the period when it is anticipated that some of the income generating activities will be further funded to garner more income. The level of free reserve as at 31 March 2022 was £284,828 (2021: £168,411).

Volunteers

The Charity is grateful for the unstinting effort of its volunteers who are involved in service provision. Members are given the free will, without any form of coercion, to determine their form and level of support, manually or financially to the charity.

Grant Making Policy

The charity made grants to Harmony Christian Centre International. The purpose of the grant is in the furtherance of the charity objectives Harmony Christian as mentioned below. The total amount of grant made was £24,653 (2021: £24,760).

Risk Management

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

The trustees examine the major risks that the ministry faces in each financial year when preparing and updating the strategic plan. The Charity has developed systems to monitor and control these risks to mitigate any impact that they may have on the organisation in the future. Including:

An annual review of the risk which the charity may face

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

The establishment of systems and procedures to mitigate those risks identified in the plan The implementation of procedures designed to minimise any potential impact on the charity should any of those risks materialise.

Charitable Objects

The objects of the Charity are:

The ministry delivers these objectives through;

Public Benefit

The trustees believe the pursuance of its charitable objectives helps members to practice their Christian faith more effectively which leads to improvements in their lives as well as that of the community.

Advancement of Christian Faith

Sunday morning religious discourse takes place at concord house which is open to general public. During these meetings, Christian teachings and principles are discussed and preached. This program is usually broadcast on the internet from 11am to 1:00pm.

Outreach

Counselling on issues such as marriage, bereavement, health and other support are provided during the week by appointment only.

The ministry continued to make its hall available for counsellors' surgery as well as community neighbourhood meetings.

The Charity continues to support missionary work in Nigeria and Ghana. The partnership with Christ to the Rural World continues to grow in leaps and bound each year. During such missionary trips food, clothing, health screening, medical advice, farming materials and other necessities of life are distributed as well as the preaching of the good news of Christ.

Education

The ministry during the year organised education and empowerment seminar for parents and people in the borough. Testimonies are always been received from parents on the benefit of these training programs. Such testimony involves how the program has changed their lives and enabled them to improve their examination results.

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

Responsibilities of the Trustees

The charity’s trustees (who are also the directors of Harmony Christian Ministry for the propose of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standard (United Kingdom Generally Acceptable Accounting Practice)

The Charities Act 2011 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 charitable company and of the incoming resources and application of resources, including income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to:

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

Kayode Obateru Trustee /Treasurer

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

INDEPENDENT EXAMINER’S REPORT

I report to the trustees on my examination of the accounts of the Harmony Christian Ministries for the year ended 31 March 2022.

Responsibilities and basis of report

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I am qualified to undertake the examination by being a qualified member of the Chartered Association of Certified Accountants (ACCA) and Fellow of the Association (FCCA).

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination (other than that disclosed below *) which gives me cause to believe that in, any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Rev Olu Olasode PhD APSA FCCA Chartered Certified Accountant TL First Accountants Limited TL First Limited

31 December 2022

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

STATEMENT OF FINANCIAL ACTIVITIES
INCOMING RESOURCES
Grants and Donations (including Gift Aids)
Investment income
Other Incoming Resources
Total Incoming Resources
RESOURCES EXPENDED
Costs of Activities in Furtherance of the
Company’s Objects
Charitable Activities
Governance Costs
Total Resources Expended
Net Incoming / (Outgoing) Resources
Total Funds Brought Forward
Reserves Adjustments
Total Funds Carried Forward		 2022
2022
2022
2021
Restricted
Unrestricted
Total
Total
£
£
£
£
524,684
481,580
25,518
0
23,482
-
-
550,202
505,062
413,070
417,979
7,167
44

420,237
418,023
129,965
87,039
705,675
618,636
120
-
835,760
705,675

There were no recognised gains or losses for the year, other than those included in the Statement of Financial Activities.

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

BALANCE SHEET
FIXED ASSETS(Note 5)
CURRENT ASSETS
Debtors
Cash and Bank
CURRENT LIABILITIES
Creditors- within one year (Note 7)
NET CURRENT ASSETS
Creditors– More than one year (note 8)
NET ASSETS
CAPITAL AND RESERVES
Restricted Funds
Unrestricted Funds
Reserves
NET ASSETS		 2022
£
14,077
284,828
(10,369)		 2022
£
1,664,793
288,536
(1,117,569)		 2021
£
-
168,411
(11,883)		 2021
£
1,721,644
156,528
(1,172,497)
835,760 705,675
835,760 705,675
835,760 705,675

Approved by the Board of Trustees on …………………………… and signed on their behalf

-----------------------------------------------------Trustee

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

NOTES TO THE FINANCIAL STATEMENTS

1. BASIS OF PREPARATION

1.1. Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The accounts have been prepared in accordance with 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 16 July 2014 and with the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

1.2. Going Concern

The charity is a going concern and the accounts have been prepared on a going concern basis.

1.3. Change of accounting policy

There is no change of accounting policy during the period.

1.4. Changes to accounting estimates

There is no change to accounting estimates during the period

1.5. Material prior year adjustments

There are no material prior year adjustments during the period.

2. ACCOUNTING POLICIES

2.1. Income

Recognition of These are included in the Statement of Financial Activities (SoFA) when: income

There has been no offsetting of assets and liabilities, or income and expenses, Offsetting unless required or permitted by the FRS 102 SORP or FRS 102.

Grants and Grants and donations are only included in the SoFA when the general income donations recognition criteria are met (5.10 to 5.12 FRS102 SORP).

In the case of performance related grants, income must only be recognised to the extent that the charity has provided the specified goods or services as

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

entitlement to the grant only occurs when the performance related conditions are met (5.16 FRS 102 SORP).

Legacies

Legacies are included in the SOFA when receipt is probable, that is, when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met.

Government grants

The charity has received government grants in the reporting period

Gift Aid receivable is included in income when there is a valid declaration Tax reclaims on from the donor. Any Gift Aid amount recovered on a donation is considered to donations and be part of that gift and is treated as an addition to the same fund as the initial gifts donation unless the donor or the terms of the appeal have specified otherwise.

Contractual income and This is only included in the SoFA once the charity has provided the related performance goods or services or met the performance related conditions. related grants

Donated goods are measured at fair value (the amount for which the asset Donated goods could be exchanged) unless impractical to do so.

The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt and they are recognised on receipt. In the reporting period in which the stocks are distributed, they are recognised as an expense at the carrying amount of the stocks at distribution.

Donated goods for resale are measured at fair value on initial recognition, which is the expected proceeds from sale less the expected costs of sale, and recognised in 'Income from other trading activities' with the corresponding stock recognised in the balance sheet. On its sale the value of stock is charged against 'Income from other trading activities' and the proceeds from sale are also recognised as 'Income from other trading activities'.

Goods donated for on-going use by the charity are recognised as tangible fixed assets and included in the SoFA as incoming resources when receivable.

Gifts in kind for use by the charity are included in the SoFA as income from donations when receivable.

Donated Donated services and facilities are included in the SOFA when received at the services and value of the gift to the charity provided the value of the gift can be measured facilities reliably.

Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the SOFA.

Support costs The charity has incurred expenditure on support costs. The value of any voluntary help received is not included in the accounts but is Volunteer help described in the trustees’ annual report. Income from This is included in the accounts when receipt is probable and the amount

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

interest, receivable can be measured reliably. royalties and dividends Income from Membership subscriptions received in the nature of a gift are recognised in membership Donations and Legacies. subscriptions

Membership subscriptions which gives a member the right to buy services or other benefits are recognised as income earned from the provision of goods and services as income from charitable activities.

Settlement of Insurance claims are only included in the SoFA when the general income insurance recognition criteria are met (5.10 to 5.12 FRS102 SORP) and are included as claims an item of other income in the SoFA. Investment This includes any realised or unrealised gains or losses on the sale of gains and losses investments and any gain or loss resulting from revaluing investments to market value at the end of the year.

2.2. Expenditure and Liabilities

Liability Liabilities are recognised where it is more likely than not that there is a legal recognition or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty. Support costs have been allocated between governance costs and other Governance and support. Governance costs comprise all costs involving public accountability support costs of the charity and its compliance with regulation and good practice. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, eg allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. Where the charity gives a grant with conditions for its payment being a Grants with specific level of service or output to be provided, such grants are only performance recognised in the SoFA once the recipient of the grant has provided the conditions specified service or output. Grants payable Where there are no conditions attaching to the grant that enables the donor without charity to realistically avoid the commitment, a liability for the full funding performance obligation must be recognised. conditions Redundancy cost The charity made no redundancy payments during the reporting period. Deferred income No material item of deferred income has been included in the accounts. The charity has creditors which are measured at settlement amounts less any Creditors trade discounts A liability is measured on recognition at its historical cost and then Provisions for subsequently measured at the best estimate of the amount required to settle liabilities the obligation at the reporting date

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

The charity accounts for basic financial instruments on initial recognition as Basic financial per paragraph 11.7 FRS102 SORP. Subsequent measurement is as per instruments paragraphs 11.17 to 11.19, FRS102 SORP.

2.3. Expenditure and Liabilities

Tangible fixed These are valued at cost and capitalised if they can be used for more than one assets for use year, and cost at least £1,000 by charity

The charge for depreciation is calculated to write off the cost of the fixed assets over their useful lives on the following bases:

Office & Musical Equipment 25% on the reducing balance Furniture & fittings 25% on the reducing balance Motor Vehicles 25% on the reducing balance Freehold Office 1% on the Straight Line Method Assets are depreciated from the time at which they are brought into use.

Intangible The charity has intangible fixed assets, that is, non-monetary assets that do not fixed assets have physical substance but are identifiable and are controlled by the charity through custody or legal rights. The amortisation rates and methods used are disclosed in note 9.5

They are valued at cost. Heritage assets The charity has heritage assets, that is, non-monetary assets with historic, artistic, scientific, technological, geophysical or environmental qualities that are held and maintained principally for their contribution to knowledge and culture. The depreciation rates and methods used as disclosed in note 9.6.1.4.

They are valued at cost. Investments Fixed asset investments in quoted shares, traded bonds and similar investments are valued at initially at cost and subsequently at fair value (their market value) at the year end. The same treatment is applied to unlisted investments unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investments held for resale or pending their sale and cash and cash equivalents with a maturity date of less than 1 year are treated as current asset investments. Stocks held for sale as part of non-charitable trade are measured at the lower Stocks and or cost or net realisable value. work in progress Goods or services provided as part of a charitable activity are measured at net realisable value based on the service potential provided by items of stock. Work in progress is valued at cost less any foreseeable loss that is likely to occur on the contract.

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other Debtors consideration expected to be received.

Current asset investments

The charity has has investments which it holds for resale or pending their sale and cash and cash equivalents with a maturity date less than one year. These include cash on deposit and cash equivalents with a maturity date of less than one year held for investment purposes rather than to meet short term cash commitments as they fall due.

They are valued at fair value except where they qualify as basic financial instruments.

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

3. GRANTS & DONATIONS

3. GRANTS & DONATIONS
Donation, Tithe and Offering
Gift Aid
Grants
Other Income
Investment Income
4. RESOURCES EXPENDED
Analysis of Resources Expended
Direct Costs:
Services & Events
Departmental /Project Support
Evangelism & Missions
Staff Costs
Indirect Costs:
Office and Admin Costs
Rent
Professional and Consultancy
Maintenance
Bank charges and Interest
Depreciation
Governance Cost
Total Resources Expended		 2022
2022
2022
2021
Restricted
Unrestricted
Total
Total
£
£
£
£
-
380,898
340,416
95,132
-
87,770
24,653
42,149
24,001
11,245
25,518
23,482
-
550,202
505,062
Cost of Charitable
Activities
Governance
Cost
Total 2022
Total 2021
52,911
52,911
50,499
-
-
-
61,688
61,688
58,982
116,977
116,977
111,521
231,576
231,576
221,002
59,547
59,547
53,878
5,243
5,243
6,379
16,770
16,770
21,153
19,551
19,551
31,128
22,032
22,032
22,708
58,351
58,351
61,728
7,167
7,167
44
181,494
7,167
188,661
197,018
413,070
7,167
420,237
418,023

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HARMONY CHRISTIAN MINISTRIES FINANCIAL STATEMENTS AND TRUSTEES REPORT YEAR ENDED 31 MARCH 2022

5. FIXED ASSETS

5. FIXED ASSETS
Land &
Building
Plant&
Machinery
Fixtures&
Fittings
Motor
Vehicle
Computer
Equipment
Total
£
£
£
£
£
COST
At 1 April 2021
2,335,928
137,823
147,688
48,879
21,592
2,691,910
Additions
1,500
1,500
Disposals
At 31 March2022
2,335,928
137,823
149,188
48,879
21,592
2,693,410
DEPRECIATION
Accumulated Depreciation
659,312
128,407
118,735
48,879
14,933
970,266
Charge for the year
46,718
2,354
7,613
-
1,666
58,351
At 31 March 2022
706,030
130,761
126,348
48,879
16,599
1,028,617
NET BOOK VALUE
At 31 March 2022
1,629,898
7,062
22,840
0
4,993
1,664,793
At 31 March 2021
1,676,616
9,416
28,953
0
6,659
1,721,644
6.DEBTORS
2022
2021
£
£
Other Debtors
10,253
-
Taxation & Social
security Cost
3,824
-
-
14,077
-
7.CREDITORS - Due within one
year
2022
2021
£
£
Trade Creditors
-
1,480
Taxation & Social
security Cost
-
4,865
Groups & Association
10,369
5,538
10,369
11,883
8.CREDITORS – Due after one
year
Bank Loans by Instalment 1
653,891
708,845
Bank Loans by Instalment 2
463,678
463,652
1,117,569
1,172,497		 Land &
Building
Plant&
Machinery
Fixtures&
Fittings
Motor
Vehicle
Computer
Equipment
Total
£
£
£
£
£
2,335,928
137,823
147,688
48,879
21,592
2,691,910
1,500
1,500
2,335,928
137,823
149,188
48,879
21,592
2,693,410
659,312
128,407
118,735
48,879
14,933
970,266
46,718
2,354
7,613
-
1,666
58,351
706,030
130,761
126,348
48,879
16,599
1,028,617
1,629,898
7,062
22,840		 0
4,993
1,664,793
1,676,616
9,416
28,953		 0
6,659
1,721,644
2022
£
10,253
3,824
14,077
2022
£
-
-
10,369
10,369
653,891
463,678
1,117,569		 2021
£
-
-
-
-
2021
£
1,480
4,865
5,538
11,883
708,845
463,652
1,172,497

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