REGISTERED COMPANY NUMBER: 04781182 (England and Wales) REGISTERED CHARITY NUMBER: 1105659 (England & Wales) REGISTERED CHARITY NUMBER: SC042715 (Scotland)
REPORT OF THE TRUSTEES AND
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
FOR
SALEM INTERNATIONAL CHRISTIAN CENTRE (A COMPANY LIMITED BY GUARANTEE)
Ashford Louis Chartered Certified Accountants & Statutory Auditors
187 High Road Leyton London E15 2BY
SALEM INTERNATIONAL CHRISTIAN CENTRE
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
| Page | |||
|---|---|---|---|
| Reference and Administrative Details | 1 | ||
| Chairman's Report | 2 | ||
| Operating and Financial Review | 3 | ||
| Report of the Trustees | 4 | to | 8 |
| Report of the Independent Auditors | 9 | to | 12 |
| Statement of Financial Activities | 13 | ||
| Balance Sheet | 14 | ||
| Cash Flow Statement | 15 | ||
| Notes to the Cash Flow Statement | 16 | ||
| Notes to the Financial Statements | 17 | to | 23 |
| Detailed Statement of Financial Activities | 24 | to | 25 |
SALEM INTERNATIONAL CHRISTIAN CENTRE
REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2023
TRUSTEES Reverend R Ash Fire Safety Officer (appointed 6.2.23) Reverend F O Chuku Construction (appointed 6.2.23) Doctor S I Dima Okojie Medical Doctor Rev H Edeko Teacher Bishop D J Onimisi Mech Engr REGISTERED OFFICE Unit 11c, New Horizon Business Centre The Pinnacle Barrows Road Harlow CM19 5FN REGISTERED COMPANY 04781182 (England and Wales) NUMBER REGISTERED CHARITY 1105659 (England & Wales) SC042715 (Scotland) NUMBER AUDITORS Ashford Louis Chartered Certified Accountants & Statutory Auditors 187 High Road Leyton London E15 2BY
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SALEM INTERNATIONAL CHRISTIAN CENTRE
CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
It is with gratitude and humility that I present this Chairman’s Report for Salem International Christian Centre for the year ended 31 December 2023. This has been a year of faith, service and resilience as we have continued our mission to serve our congregation, community, and God.
Achievements and Highlights
Worship and Spiritual Growth
We have seen a consistent commitment to worship, prayer, and teaching throughout the year. Weekly services, Bible studies, and prayer groups have remained at the heart of our church’s activities, fostering spiritual growth among our members.
Community Outreach
Through your generous support, we have continued to serve the needs of our community. Our food bank initiative assisted a large number of families, and our youth programs have provided mentorship and guidance to a substantial number of young people.
Charity Work
We extended our mission beyond the local community, raising funds and providing support for flood victims in Nigeria, and have also joined hands with Christian Aids to support the 2022 Pakistan floods victims, the 2023 Turkey-Syria earthquake victims and many other international missions and disaster relief programmes.
Financial Overview
Despite ongoing challenges, our financial position remains stable. Income from tithes and donations has allowed us to sustain our programs and maintain our facilities. We are committed to prudent stewardship of these resources to ensure the long-term sustainability of our mission.
Looking Ahead
As we look to the future, we remain focused on our vision to expand our reach, deepen our spiritual impact, and further strengthen our community. Plans for the coming year include:
(i) to liaise with Harlow Council Community to actively engage in rehabilitating people hooked on dangerous and life threatening substances like drugs etc.
(ii) to plant more church branches in the Midland to disciple youths and help them to channel their energies productively and to expand our children facilities to cater for more children especially those with special needs.
(iii) to strengthen our Outreach team for more visits to the hospitals and prisons to pray, counsel and provide emotional support to patients and inmates.
Acknowledgements
I would like to express my heartfelt thanks to our staff, volunteers, and congregation for their tireless efforts and unwavering dedication. To our Trustees and leadership team, your guidance and support have been invaluable.
Above all, we thank God for His faithfulness and guidance throughout the year. Together, we will continue to build a church that reflects His love and serves His purpose.
Bishop D J Onimisi Chairman
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SALEM INTERNATIONAL CHRISTIAN CENTRE
OPERATING AND FINANCIAL REVIEW FOR THE YEAR ENDED 31 DECEMBER 2023
The statement of financial activities (SOFA) for the year is set out on page 13.
Total income for the year ended 31 December 2023 was £711,672 as against £534,035 in 2022. Total expenses incurred with same period being £612,719 as against £478,857 in 2022.
Out of the total expenditure for the year of £612,719 an amount of £44,319 was spent on repairs and maintenance of the property, £168,106 was spent on wages and staff salary which includes £57,684 paid as salary to one of the trustees, Bishop David Onimisi, who is the head Pastor and the Bishop in charge of Europe Continent.
Financial position
The church is financially stable. The net current assets in the balance sheet is £13,809 compared to the £28,139 in 2022 because of the purchase of church properties for two of our branches in Edinburgh and Aberdeen. It can also be seen from the balance sheet that the total assets less current liabilities has increased from £1,122,037 in 2022 to £1,370,658 in 2023.
Reserve Policy
The trustees review the reserve policy of the charity annually.
The church has permitted reserves to build up to the necessity of allowing for future expansion and development. It is also the church's express desire to see the designated reserves built up to a substantial level.
The reserve as at 31 December 2023 is £494,313.
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SALEM INTERNATIONAL CHRISTIAN CENTRE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of 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 trustees also confirmed that the annual report and financial statement of the charity are in line with the terms of the Charities and Trustee Investment (Scotland) 2005 and the Charities Accounts (Scotland) Regulations 2006.
OBJECTIVES AND ACTIVITIES Objectives and aims
The express purpose of the church is the caring and teaching of its members and the advancing of the Christian faith by mobilising its members to serve in every sphere of the Social Society.
The Church stated vision is to see the Nations transformed by the glory of God to a place where Jesus Christ is recognised as Lord. This is accomplished by working together with other life-giving churches and charities and by mobilising people with Godly character and principles to serve in the sphere of influence of society namely: The church, education, government, media, arts & entertainment, business, sport and social society. The Church's principal objectives also include ensuring promoting church activities for such other purposes for the benefit of community according to the laws of England and Wales on one hand and Scotland on the other hand as may from time to time be determined.
Significant activities Achievements and Performances
Since its inception the church has grown and currently comprises:
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A registered membership of over 5,000 living in London, Harlow, Kent, Sheffield, Plymouth, Southampton, Cardiff, Belfast, Glasgow, Aberdeen and Edinburgh and Weekly Sunday service with an attendance of 600 and above at the Headquarter church.
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Smaller group fellowships during the week.
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University Campus fellowships in eight Universities within England and three Universities in Scotland outreaches.
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Dynamic street outreaches aim at capturing and rehabilitating youth with troubled background.
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An established pastoral care network through the small group structures.
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Training and equipping the various age groups for ministry work.
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Small groups leadership skill development classes.
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We take our food bank to a new dimension by organising online registration and collection of food items, helping
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us to reach wider audience.
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Marital and pre-marital counselling
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Our youth programs have provided mentorship and guidance to a substantial number of young people.
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Providing care to the poor and handicapped: Food bank, mercy day during which essential items like clothes and other forms of apparel are handed to those in need. Also provide quarterly free health check to the community.
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Prison and hospital ministry to reach out and comfort people in confinement or sick.
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Two churches planted in South London and Plymouth in 2021 are growing speedily.
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Extensive renovation of the church property purchased in 2016 was completed in 2021. Had fixed air conditioning
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system, complete dry lining of all the walls, provision of conveniences and decorations plus installation of a 13-passenger lift to get people to the worship hall. The renovation work has added value to the property and a rough estimate now put the value of the property at over £2m. More facilities have been added to enhance a conducive atmosphere of worship.
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New branches planned in Cardiff; Wales, and in Belfast; Northern Ireland, are growing.
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Our church branches in Edinburgh and Aberdeen completed on the purchase of their church properties and are now
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settled in the new locations.
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(a) Edinburgh Church address: Newbattle Road, Dalkeith, Midlothian, Edinburgh EH22 3LH
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(b) Aberdeen Church address: 191 Victoria Road, Torry, Aberdeen, AB11 9NE
We have seen a consistent commitment to worship, prayer, and teaching throughout the year. Weekly services, Bible studies, and prayer groups have remained at the heart of our church's activities, fostering spiritual growth among our members.
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SALEM INTERNATIONAL CHRISTIAN CENTRE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
OBJECTIVES AND ACTIVITIES
Public benefit
When planning our activities for the year, the Trustees considered the Commission's guidance on public benefit and in particular, the specific guidance on charities for the advancement of religion, health and well being of society at large.
Grant making
Salem International Christian Centre does not give grants but accepts donations in furtherance of its aim and objectives.
Volunteers
Salem International Christian Centre trains and deploys community volunteers some of who have been service users and feel the need to give back to their communities by utilising their lived experiences to support others.Volunteers play a crucial role in supporting the mission and activities of our Church. Their dedication, time, and skills significantly enhance our ability to deliver services as a Church. We are deeply grateful for their contributions. Their commitment not only strengthens our Charity but also fosters a sense of community and shared purpose. We continue to invest in volunteer training and engagement to ensure a rewarding experience for all involved.
Risk Management
The Trustees have a risk management strategy, which comprises: An annual review of the risks the charity may face.
The establishment of systems and procedures to mitigate those risks identified in the review; and the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
The Trustees have assessed the risks to which the charity may be exposed with particular reference to those relating to the operations and finances of the charity. Systems are in place to ensure that all risks are recorded for subsequent monitoring and review. In the meantime, the Trustees remain satisfied that all insurable risks have been identified and adequately dealt with and that the charities exposure to other risks is kept at a minimum by good working practice and guidelines.
FINANCIAL REVIEW
Financial position
The statement of financial activities (SOFA) for the year is set out on page 13.
Total income for the year ended 31 December 2023 was £711,672 as against £534,035 in 2022. Total expenses incurred with same period being £612,719 as against £478,857 in 2022.
The church is financially stable. The net current assets in the balance sheet is £13,809 compared to the £28,139 in 2022 because of the purchase of church properties for two of our branches in Edinburgh and Aberdeen. It can also be seen from the balance sheet that the total assets less current liabilities has increased from £1,122,037 in 2022 to £1,370,658 in 2023.
Reserves policy
The policy of the church is to maintain unrestricted funds, which are free reserves of the church, at a level of unrestricted expenditure. This will provide sufficient funds to be available for all management and administrative costs as well as ensuring adequate funds continue to be available for the church's services and religious events. All unrestricted funds of the church are held for its general purpose.
The trustees review the reserve policy of the charity annually.
The church has permitted reserves to build up to the necessity of allowing for future expansion and development. It is also the church's express desire to see the designated reserves built up to a substantial level.
The reserve as at 31 December 2023 is £494,313.
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SALEM INTERNATIONAL CHRISTIAN CENTRE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
FINANCIAL REVIEW
Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the church has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months from the date of approval of these financial statements.The church therefore continues to adopt the going concern basis in preparing its financial statements.
FUTURE PLANS
Going forward, we remained focused on our vision to expand our reach, deepen our spiritual impact, and further strengthen our community.
Plans for the coming year include:
(i) to liaise with Harlow Council Community to actively engage in rehabilitating people hooked on dangerous and life threatening substances like drugs etc.
(ii) to plant more church branches in the Midland to disciple youths and help them to channel their energies productively and to expand our children facilities to cater for more children especially those with special needs.
(iii) to strengthen our Outreach team for more visits to the hospitals and prisons to pray, counsel and provide emotional support to patients and inmates.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Salem International Christian Centre was incorporated as a company limited by guarantee, with registration number 04781182 on 29th May 2003, and registered with the Charity Commission on 27 August 2004 (Registration number: 1105659) and was merged in April 2010 with Foundation Faith Church an older Charity registered in December 2001.
The liability of the Company members in the event of the charity being wound up is limited to a sum not exceeding Ten Pounds (£10). Salem International Christian Centre is also registered with the Office of the Scottish Charity Regulator under registration number SC042715.
The company was established under a Memorandum and Articles of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
Salem International Christian Centre is a family of churches with Ministry locations in England, Wales, Northern Island, Scotland, USA (Houston) and many cities in Nigeria and Ghana. Salem International Christian Centre is a Pentecostal assembly and is a member of Trans Atlantic and Pacific Alliance of Churches (TAPAC) which is a member of the churches together in Britain and Ireland. Her activities are directed and co-ordinated from the Europe headquarters located at: Unit 11C, New Horizon Business Centre, The Pinnacles, Barrows Road, Harlow CM19 5FN.
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SALEM INTERNATIONAL CHRISTIAN CENTRE
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
Trustees and Management
The directors who are also Trustees for purpose of Charity law, who served during the year and up to date of this report are set are:
Bishop David Onimisi - Chairman
Reverend Sylvester Dima-Okojie
Reverend Henry Edeko - Secretary
Reverend Ralph Ash
Reverend Fynecountry Chuku
Key Management Personnel
Founder / General Overseer:- Archbishop Sam Amaga
Europe Continental Bishop:- Bishop David Onimisi
Administrator:- Rev. Dana Akeredolu
Accounts Personnel:- Pastor Julia Malcolm
Resident Pastors: Rev Sylvester Dima-Okojie Rev Oriola Olapade
The directors, in line with provision in the company Articles of Association, elect trustees and they meet as required, together with members of the management, to generally manage the affairs of the charity. New trustees are familiarised with the charity's legal documents, their legal responsibilities and the objectives and finances of the charity.
Organisation
The board of Trustees meet three times a year to review all aspects of the charity activities. The board has established various volunteer groups to help in the running of the charity's programmes and activities.
Induction and training of new trustees
New trustees will undergo orientation on their legal obligations under charity law, the aims and objectives of the charity, its governing frameworks, decision-making processes, strategic plans, and financial performance. All trustee are issued with a trustee pack and attend in-house and external training relevant to their roles.
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SALEM INTERN.4TIONAL CHRISTLLN CENTRE REPORTOFTHE TRU FOR THE END D 31 DECEIIBER 2023 STATEMENT OF TRUSTEES, RFSPONSIBILITIES The trustees Are also the deCtorS of Salem Ithiern&iional Christian Cetttse tDr the purpJs¢s of compNtty lawl are responsible for prwTin8 ihe Antsual Repon 4rMI the styr¢ments in aceordan¢e with arolicable law ATh1 United Kingdom Ac¢oum¢ng Siatxlarth (Lnittd Kinbth Genernlly Atc¢ptd A¢Un[in9 PtiCe) Ind the Cbaniie5 2nd Inyestll1 Iscodwyjl Aet 2LN)5 Regulation 8 of the awitses Accounts (Sc14) Regu]alions •OOO. Company requires the mLsie¢$ 10 prepate finathI for each fuwKial year wllich and fair Iqew of rhe srate of iffuirs of th¢ chrttablc wmpaDy of thr LRCOIDin8 resowtrs and applicarioth of r¢sovrtts. including the income and ¢xpenthture. of the cl4n"thble thry>nDy for thai period. In prepBnng those finarla1 staiennts. Ihe trustees are Tequired - select $uir8ble Ac¢ouniinB poli¢i¢s and then appl). them ¢onsi5knrfy: - obseThE the methods aThJ principles in the Charity SORP. - make judgements and UiJm&¢es Ihat are reAsonthle and pnthm: - pr¢pare the findla1 Irate1$ on the 80th8 CO buis unkjs li IS 1thpY0Prlte to prem ihal the chorithble mparty will eoniinue in business. The trustees are re$pJnsibk for kttping Proper BccrwniinB records which diK10 Mryth tettonable •eeurAey ai any time Ihe flnancial posjtion of the charithbl¢ ¢ompan)' aNI ¢n8ble Them w enswe that the fina1[ Statements eompl>' wih the Companies Act 2(#)6. They are ajso responsibk for f¢BardIng Ihg aw¢5 of th¢ clwithblt compan) and hellce for takin8 rethimble step5 for the pmtntion Ind dewtion of fraud other irrc8ulariThes. It) so fir u ihe are aw¥e'. - Ihere 1$ relev1 8wJir infom111) tsf wliich the chafttsble CompryI$ IltoA are unIre.. #nd the trusttts httve taken all sitps thal ouBhi w have tyken th¢msel%'es awart of any relevant audir infornmuon ATh1 tt¢ablish that the I111 are 4M7re of infornuts'on. AUDITORS The auditors. Ashford Low& will be prnpod for YeppOinenl at the fOrMIng Annu41 (kn%rnJ Meetin8. Approved by othr of lh¢ lrd of ¢nllieu on..... Rev H Edekn- Trus*e
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SALEM INTERNATIONAL CHRISTIAN CENTRE
Opinion
We have audited the financial statements of Salem International Christian Centre (the 'charitable company') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The Charity met the criteria for audit in the previous financial year ended 31 December 2022; however, the accounts were not audited. As a result, the comparative figures presented in these financial statements are unaudited. This year, the financial statements have been subject to a full statutory audit in accordance with applicable UK auditing standards.
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In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SALEM INTERNATIONAL CHRISTIAN CENTRE
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SALEM INTERNATIONAL CHRISTIAN CENTRE
Our responsibilities for the audit of the financial statements
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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:
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We obtained an understanding of the legal and regulatory requirements applicable to the charity. We considered that the most significant are those that relate to the reporting framework being FRS 102, Charities SORP (FRS 102), Anti-Money Laundering and Charities Act 2011 rules and regulations, the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006. We obtained an understanding of how the charity complies with these requirements by making enquiries of management and seeking representations from those charged with governance. We corroborated our understanding by reviewing supporting documentation.
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We inquired from management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations. We designed our audit procedures to identify instances of non-compliance throughout the audit and remained alert to instances of non-compliance throughout the audit.
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We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal control and by designating incoming resources recognition as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business. We tested completeness of income through substantive tests performed, analytical review procedures and cut off tests on the incoming resources recognised.
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Where incoming resources were received from overseas, we requested supporting documentation to ensure that sufficient anti-money laundering documentation was in place.
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The charity is a regulated entity under the supervision of the Charities Commission. As such, the Senior Statutory Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate competence and capabilities.
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. However, the primary responsibility for prevention and detection of fraud rests with both management and those charged with governance of the company. 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SALEM INTERNATIONAL CHRISTIAN CENTRE
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Report of the Independent Auditors.
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
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Eric Ashong FCCA (Senior Statutory Auditor) for and on behalf of Ashford Louis Chartered Certified Accountants & Statutory Auditors 187 High Road Leyton London E15 2BY
25/01/2025 Date: .............................................
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SALEM INTERNATIONAL CHRISTIAN CENTRE
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 2 711,672 EXPENDITURE ON Charitable activities 3 Direct charitable expenditure 410,570 Support costs 188,549 Governance 13,600 Total 612,719 NET INCOME 98,953 Transfers between funds 15 47,501 Net movement in funds 146,454 RECONCILIATION OF FUNDS Total funds brought forward 347,859 TOTAL FUNDS CARRIED FORWARD 494,313 |
Restricted fund £ - - - - - - (47,501) (47,501) 47,501 - |
31.12.23 31.12.22 Total Total funds funds £ £ 711,672 534,035 410,570 362,503 188,549 113,354 13,600 3,000 612,719 478,857 98,953 55,178 - - 98,953 55,178 395,360 340,182 494,313 395,360 |
31.12.23 31.12.22 Total Total funds funds £ £ 711,672 534,035 410,570 362,503 188,549 113,354 13,600 3,000 612,719 478,857 98,953 55,178 - - 98,953 55,178 395,360 340,182 494,313 395,360 |
|---|---|---|---|
| 362,503 113,354 3,000 |
|||
| 478,857 | |||
| 55,178 - |
|||
| 55,178 340,182 |
|||
| 395,360 |
The notes form part of these financial statements
Page 13
SALENI T[y cETRE BALAJCE SHE DECE.MBER 2023 31.1213 Total 31.J2?2 Total FtXED ASSETS TATwble assets 1.356,849 1,356,849 1.093,898 tkbtors Cwb at bnnk 10 789 73.531 65.357 65.357 65J57 65357 74.3?0 CREDITORS Anunt6 f4Uth8 Mithin one {SlJ48) 151.548) {46.1811 NET CURRENT ASSETS 13.8OY 13.809 28.139 TOTAL ASSETS LE&8 CURREI LIABILITIES IJ70.658 1,370,658 1,122,037 CREDITORS Anwwits fAllinB •fter more th*n one )rar 12 1876J451 1876J451 1726.6771 NET ASSETS 494J13 494313 393.360 FUNDS Unrestricted fu Resthcted fiu 15 494 J13 347.859 47.501 TOTAL FUNDS 494.313 395.300 These fLtiaiicL&I NAleMen hAve becn prw¢d in aecordllnre Vjith the provisiom applicable ehan'thble companiej Subject to the $mttll conyanies re8iTh. ncia smtemens wtre approved by the Bo•rd of Tnlets authoriied for iiwe on .. and were $18ned OD its behr by. Djon i.Tn H Edeko. Tnutee Page 14
SALEM INTERNATIONAL CHRISTIAN CENTRE
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023
| Notes Cash flows from operating activities Cash generated from operations 1 Interest paid Interest element of hire purchase and finance lease rental payments paid Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Net cash used in investing activities Cash flows from financing activities New loans in year Loan repayments in year Capital repayments in year Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
31.12.23 £ 232,796 (71,750) (2,820) 158,226 (316,857) (316,857) 181,000 (34,537) 3,994 150,457 (8,174) 73,531 65,357 |
31.12.22 £ 159,993 (34,284) (461) 125,248 (55,244) (55,244) - (58,303) 23,872 (34,431) 35,573 37,958 73,531 |
|---|---|---|
The notes form part of these financial statements
Page 15
SALEM INTERNATIONAL CHRISTIAN CENTRE
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023
| 1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM | OPERATING ACTIVITIES | OPERATING ACTIVITIES |
|---|---|---|---|
| 31.12.23 | 31.12.22 | ||
| £ | £ | ||
| Net income for the reporting period (as per the Statement of Financial | |||
| Activities) | 98,953 | 55,178 | |
| Adjustments for: | |||
| Depreciation charges | 53,906 | 23,889 | |
| Interest paid | 71,750 | 34,284 | |
| Interest element of hire purchase and finance lease rental payments | 2,820 | 461 | |
| Increase in creditors | 5,367 | 46,181 | |
| Net cash provided by operations | 232,796 | 159,993 |
2.
ANALYSIS OF CHANGES IN NET DEBT
| At 1.1.23 | Cash flow | At 31.12.23 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank and in hand | 73,531 | (8,174) | 65,357 |
| 73,531 | (8,174) | 65,357 | |
| Debt | |||
| Hire purchase and finance leases | (23,872) | (3,994) | (27,866) |
| Debts falling due after 1 year | (702,805) | (145,674) | (848,479) |
| (726,677) | (149,668) | (876,345) | |
| Total | (653,146) | (157,842) | (810,988) |
The notes form part of these financial statements
Page 16
SALEM INTERNATIONAL CHRISTIAN CENTRE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006, and the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost Plant and machinery - 20% on cost Fixtures and fittings - 15% on cost Motor vehicles - 20% on cost
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Hire purchase and leasing commitments
The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability.
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
continued...
Page 17
SALEM INTERNATIONAL CHRISTIAN CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
2. DONATIONS AND LEGACIES
| DONATIONS AND LEGACIES | ||
|---|---|---|
| Donations Gift aid |
31.12.23 £ 652,257 59,415 711,672 |
31.12.22 £ 477,494 56,541 |
| 534,035 |
3. CHARITABLE ACTIVITIES COSTS
| Direct charitable expenditure Support costs Governance 4. SUPPORT COSTS Management £ Support costs 52,804 Governance - 52,804 5. NET INCOME/(EXPENDITURE) Net income/(expenditure) is stated after charging/(crediting): Auditors' remuneration Depreciation - owned assets Hire of plant and machinery Other operating leases |
Support Direct costs (see Costs note 4) £ £ 410,570 - 107,090 81,459 - 13,600 517,660 95,059 Governance Finance costs £ £ 3,105 25,550 - 13,600 3,105 39,150 31.12.23 £ 9,600 53,906 - 25,263 |
Totals £ 410,570 188,549 13,600 |
Totals £ 410,570 188,549 13,600 |
|---|---|---|---|
| 612,719 | |||
| Totals £ 81,459 13,600 95,059 31.12.22 £ - 23,889 26,825 7,644 |
Totals £ 81,459 13,600 |
||
| 95,059 |
6. TRUSTEES' REMUNERATION AND BENEFITS
One member of the Trustees received remuneration as the Principal Pastor overseeing the work in the Continent of Europe. No other Trustees receive remuneration, except for essential services rendered by them to the charity.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.
continued...
Page 18
SALEM INTERNATIONAL CHRISTIAN CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
7. STAFF COSTS
| Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: No employees received emoluments in excess of £60,000. 8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund £ INCOME AND ENDOWMENTS FROM Donations and legacies 534,035 EXPENDITURE ON Charitable activities Direct charitable expenditure 362,503 Support costs 113,354 Governance 3,000 Total 478,857 NET INCOME 55,178 RECONCILIATION OF FUNDS Total funds brought forward 292,681 TOTAL FUNDS CARRIED FORWARD 347,859 |
31.12.23 £ 168,106 5,621 3,447 177,174 31.12.23 Restricted fund £ - - - - - - 47,501 47,501 |
31.12.22 £ 147,251 13,644 3,459 164,354 31.12.22 Total funds £ 534,035 362,503 113,354 3,000 478,857 55,178 340,182 395,360 |
31.12.22 £ 147,251 13,644 3,459 164,354 31.12.22 Total funds £ 534,035 362,503 113,354 3,000 478,857 55,178 340,182 395,360 |
|---|---|---|---|
| 362,503 113,354 3,000 |
|||
| 478,857 | |||
| 55,178 340,182 |
|||
| 395,360 |
continued...
Page 19
SALEM INTERNATIONAL CHRISTIAN CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
9. TANGIBLE FIXED ASSETS
| Fixtures Freehold Plant and and Motor property machinery fittings vehicles £ £ £ £ COST At 1 January 2023 970,000 308,756 13,801 55,006 Additions 279,100 15,280 878 21,599 At 31 December 2023 1,249,100 324,036 14,679 76,605 DEPRECIATION At 1 January 2023 - 212,997 10,617 30,051 Charge for year 18,986 23,170 1,191 10,559 At 31 December 2023 18,986 236,167 11,808 40,610 NET BOOK VALUE At 31 December 2023 1,230,114 87,869 2,871 35,995 At 31 December 2022 970,000 95,759 3,184 24,955 10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.23 £ Amounts receivable in respect of hire purchase contracts - 11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.23 £ Social security and other taxes 37,192 Other creditors 756 Accrued expenses 13,600 51,548 12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 31.12.23 £ Bank loans (see note 13) 841,051 Other loans (see note 13) 7,428 Hire purchase and finance leases (see note 14) 27,866 876,345 |
Totals £ 1,347,563 316,857 |
Totals £ 1,347,563 316,857 |
|---|---|---|
| 1,664,420 | ||
| 253,665 53,906 |
||
| 307,571 | ||
| 1,356,849 | ||
| 1,093,898 | ||
| 31.12.22 £ 789 31.12.22 £ 38,046 8,135 - 46,181 31.12.22 £ 692,878 9,927 23,872 |
||
| 726,677 |
continued...
Page 20
SALEM INTERNATIONAL CHRISTIAN CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
13. LOANS
An analysis of the maturity of loans is given below:
| Amounts falling between one and two years: Bank loans - 1-2 years Other loans - 1-2 years |
31.12.23 £ 841,051 7,428 848,479 |
31.12.22 £ 692,878 9,927 |
|---|---|---|
| 702,805 |
The bank loan is secured by way of first charge over Unit 11c, New Horizon Business Centre, The Pinnacle, Barrows Road, Harlow CM19 5FN.
14. LEASING AGREEMENTS
Minimum lease payments fall due as follows:
| Net obligations repayable: Between one and five years 15. MOVEMENT IN FUNDS Unrestricted funds General fund Restricted funds Restricted fund TOTAL FUNDS Net movement in funds, included in the above are as Unrestricted funds General fund TOTAL FUNDS |
Hire purchase contracts 31.12.23 31.12.22 £ £ 27,866 23,198 Net movement At 1.1.23 in funds £ £ 347,859 98,953 47,501 - 395,360 98,953 follows: Incoming resources £ 711,672 711,672 |
Finance leases 31.12.23 31.12.22 £ £ - 674 Transfers between At funds 31.12.23 £ £ 47,501 494,313 (47,501) - - 494,313 Resources Movement expended in funds £ £ (612,719) 98,953 (612,719) 98,953 |
Finance leases 31.12.23 31.12.22 £ £ - 674 Transfers between At funds 31.12.23 £ £ 47,501 494,313 (47,501) - - 494,313 Resources Movement expended in funds £ £ (612,719) 98,953 (612,719) 98,953 |
|---|---|---|---|
| 98,953 |
continued...
Page 21
SALEM INTERNATIONAL CHRISTIAN CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
15. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund Restricted funds Restricted fund TOTAL FUNDS |
At 1.1.22 £ 292,681 47,501 340,182 |
Net movement in funds £ 55,178 - 55,178 |
At 31.12.22 £ 347,859 47,501 |
|---|---|---|---|
| 395,360 |
Comparative net movement in funds, included in the above are as follows:
| Incoming resources £ Unrestricted funds General fund 534,035 TOTAL FUNDS 534,035 A current year 12 months and prior year 12 months combined position is as follows: Net movement At 1.1.22 in funds £ £ Unrestricted funds General fund 292,681 154,131 Restricted funds Restricted fund 47,501 - TOTAL FUNDS 340,182 154,131 |
Resources Movement expended in funds £ £ (478,857) 55,178 (478,857) 55,178 Transfers between At funds 31.12.23 £ £ 47,501 494,313 (47,501) - - 494,313 |
Resources Movement expended in funds £ £ (478,857) 55,178 (478,857) 55,178 Transfers between At funds 31.12.23 £ £ 47,501 494,313 (47,501) - - 494,313 |
|---|---|---|
| 55,178 | ||
| At 31.12.23 £ 494,313 - |
||
| 494,313 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 1,245,707 | (1,091,576 ) | 154,131 |
| TOTAL FUNDS | 1,245,707 | (1,091,576 ) | 154,131 |
continued...
Page 22
SALEM INTERNATIONAL CHRISTIAN CENTRE
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
16. RELATED PARTY DISCLOSURES
Salem UK is part of the Salem family worldwide, founded by the Archbishop Sam Amaga, a reputable man of integrity and a man of faith. His invaluable contribution in conjunction with the Board of Trustees here in UK, has seen to the stability of the work.
During the year, the church paid an amount totalling £18,550 to a trustee as supervisor's fees.
Page 23
SALEM INTERNATIONAL CHRISTIAN CENTRE
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023
| 31.12.23 | 31.12.22 | |
|---|---|---|
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Donations | 652,257 | 477,494 |
| Gift aid | 59,415 | 56,541 |
| 711,672 | 534,035 | |
| Total incoming resources | 711,672 | 534,035 |
| EXPENDITURE | ||
| Charitable activities | ||
| Wages | 168,106 | 147,251 |
| Social security | 5,621 | 13,644 |
| Pensions | 3,447 | 3,459 |
| Hire of plant and machinery | - | 26,825 |
| Other operating leases | 25,263 | 7,644 |
| Light and heat | 14,254 | 10,916 |
| Advertising | - | 6,801 |
| Sundries | 5,378 | 1,429 |
| Ministerial expenses | 58,963 | 33,217 |
| Hotels and lodging | 7,038 | 7,500 |
| Church house expenses | 9,800 | 793 |
| Honorarium cost | 14,221 | 9,418 |
| Donations | 10,291 | 18,500 |
| Welfare expenses | 10,146 | - |
| Motor expenses | 12,337 | 16,933 |
| Repairs and maintenance | 44,319 | 41,952 |
| Depreciation of freehold property | 18,986 | - |
| Depreciation of plant and machinery | 23,170 | 12,217 |
| Depreciation of fixtures and fittings | 1,191 | 5,433 |
| Depreciation of motor vehicles | 10,559 | 6,239 |
| Mortgage | 71,750 | 34,284 |
| Hire purchase | 2,820 | 461 |
| 517,660 | 404,916 | |
| Support costs | ||
| Management | ||
| Rates and water | 1,020 | - |
| Insurance | 4,471 | 4,063 |
| Travelling | 11,218 | 21,581 |
| Telephone | 8,119 | 6,802 |
| Postage and stationery | 6,364 | 2,691 |
| Advertising | - | 399 |
| Legal and professional fees | 21,612 | 3,000 |
| 52,804 | 38,536 |
This page does not form part of the statutory financial statements
Page 24
SALEM INTERNATIONAL CHRISTIAN CENTRE
| Management Finance Lease rentals Bank charges Governance costs Auditors' remuneration Administrative expenses Accountancy fees Total resources expended Net income |
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 31.12.23 31.12.22 £ £ 2,339 2,257 766 679 3,105 2,936 9,600 - 25,550 29,469 4,000 3,000 39,150 32,469 612,719 478,857 98,953 55,178 |
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 31.12.23 31.12.22 £ £ 2,339 2,257 766 679 3,105 2,936 9,600 - 25,550 29,469 4,000 3,000 39,150 32,469 612,719 478,857 98,953 55,178 |
|---|---|---|
| 2,936 - 29,469 3,000 |
||
| 32,469 | ||
| 478,857 | ||
| 55,178 |
This page does not form part of the statutory financial statements
Page 25