**Charity Registration No. 1106273**
**Company Registration No. 05124435 (England and Wales)**
## **KINGSGATE COMMUNITY CHURCH**
# **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2021**
## **KINGSGATE COMMUNITY CHURCH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Directors and Trustees**|Dr David Smith (Chairman)||
|---|---|---|
||Mr Norman Paskin||
||Mr Barry Featherstone||
||Mr Matthew Negus||
||Mr Samson Abioye|(Appointed 1 May 2021)|
|**Secretary**|Mrs Sally Duffy||
|**Multisite Strategy Team**|Dr David Smith||
||Mrs Karen Smith||
||Mr Simon Deeks||
||Mrs Sally Duffy||
||Mr David Robertson|(Left June 2021)|
||Mr Jim Thody||
||Mrs Heather Robertson|(Left June 2021)|
||Mrs Jasmine Allen||
||Mr Phil Timson||
||Mrs Zia Deeks||
||Mrs Sharon Keogh||
||Mr Simon Benn||
|**Charity number**|1106273||
|**Company number**|05124435||
|**Principal office**|2 Staplee Way||
||Parnwell||
||Peterborough||
||United Kingdom||
||PE1 4YT||
|**Auditor**|Azets Audit Services||
||Ruthlyn House||
||90 Lincoln Road||
||Peterborough||
||Cambridgeshire||
||PE1 2SP||
||United Kingdom||
||PE1 2SP||
|**Bankers**|Allied Irish Bank||
||61/62 The Mall||
||London||
||United Kingdom||
||W5 3TA||
## **KINGSGATE COMMUNITY CHURCH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **Solicitors**
Hegarty LLP 48 Broadway Peterborough United Kingdom PE1 1YW
The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as its trustees.
## **KINGSGATE COMMUNITY CHURCH**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 6|
|Statement of trustees' responsibilities|7|
|Independent auditor's report|8 - 10|
|Statement of financial activities|11 - 12|
|Balance sheets|7|
|Statement of cash flows|14|
|Notes to the financial statements|15 - 36|
## **KINGSGATE COMMUNITY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees present their report and financial statements for the year ended 31 December 2021.
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)” (as amended for accounting periods commencing from 1 January 2019)
## **Objectives and activities**
The Objectives of The Charity
The charity’s purposes, as set out in the objects contained in the company’s memorandum of association, are:
1. The advancement of the Christian faith in accordance with the doctrine set out in the underwritten Fourth Schedule and the worship of God in the said county and elsewhere by any means whatsoever including (but not by way of limitation) the preaching and proclamation of the Christian gospel, the teaching of the Christian Doctrine and principles, the pastoral care of Christian people and the printing and distribution of the Bible and Christian literature including video, and audio recordings and by any other media which is, or may become, available.
2. The relief of persons who are in conditions of need, hardship or distress or who are aged or sick. 3. The advancement of education on the basis of Christian principles and, without prejudice, to the generality of the foregoing, the provision of such education in any educational establishment and, if the Trustees so decide, the provision of one or more charitable educational establishments for the general education of children and adults on the basis of such Christian principles.
## 2021 Vision, Values and Strategic Priorities
In 2021, the Strategic Leadership Team of KingsGate Community Church reaffirmed the vision, values, and strategic priorities of the Church as:
**Vision:** ‘Transforming Lives from our Neighbourhoods to the Nations by the Power of God’s Love’.
**Values:** Word, Spirit, Worship, Prayer, Fellowship, Discipleship, Mission, and Stewardship.
## **Strategic Priorities:**
In 2021 we identified the need to refocus on our core mission, which as a church is “TRANSFORMING LIVES from our neighbourhoods to the nations, by the power of God’s love”, and the call for us to be disciples and make disciples. We identified three main areas:
1. GO together on mission for Jesus
2. GROW together in maturity in Jesus
3. COME together to meet with Jesus, a re-emphasis on the importance of the gathered church.
## 2021 Activities:
## The main activity continues to be **teaching via Sunday services and Life Groups both online and in person whenever possible.**
Other activities in 2021 included:
- **Sunday Services:** In-person, weekly Sunday services resumed from April 2021 with two services being held at KingsGate Peterborough and one service at KingsGate Cambridge. KingsGate Leicester resumed meeting monthly from autumn 2021. Online services continue to be provided via YouTube and the Church Online platform.
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## **KINGSGATE COMMUNITY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
- **LifeGroups:** LifeGroups continue to be one of the main ways people grow in their discipleship with Jesus, providing a personalised setting for development of gifts and spiritual depth. In 2021 LifeGroups have continued to meet regularly, either in-person and/or online. New pastoral area plans are helping to identify ‘gaps’ in the geographical coverage of LifeGroups. We recognise the vital part our volunteer leaders play in providing pastoral support to those in our church family through LifeGroups, especially over the pandemic. We are deeply grateful for all that they have done, continue to give and will give in the future.
- **Community Action:** 2021 was a year that despite the practical challenges of operating during lockdown saw Community Action continue to develop its support for people facing poverty and build wrap-around care for people accessing our services. This aimed to address some of the underlying reasons people found themselves in crisis and reduce the need for people to rely on Peterborough Foodbank. This wrap-around care included partnering with Citizens Advice Peterborough and Community Money Advice to offer information and advice.
- **Care Zone, Peterborough:** Furniture, clothing, toys, and other household items are provided free of charge to those who are in need in our community, referred through local agencies. I n 2021, Care Zone furnished 694 properties and supported 1,400 people. Care Zone also worked with other community groups to support the resettlement of refugees in the city from Syria and Afghanistan. To date, thirteen houses have been prepared for refugee families and Care Zone is also beginning to support Ukrainian families arriving in the city as well.
- **Foodbank, Peterborough** : The Foodbank opened in 2012 in partnership with six local churches and is part of the Trussell Trust Foodbank network. The project helps people in crisis by providing three days’ emergency food, as well as signposting and support to resolve the underlying problem. In 2021, Trussell Trust funding was secured to set up a financial inclusion pilot project for people presenting at foodbanks. The funding enabled Peterborough Foodbank to partner with Citizens Advice Peterborough to offer foodbank users information and advice around income maximisation, welfare benefits, housing, and immigration issues. The pilot project ran for 12 months, supported 220 families to address 770 issues and achieved £91,710 financial outcomes. The impact of this wrap around support saw a reduction in the numbers of people revisiting Peterborough Foodbank in 2021.
- **Foodbank, Cambridge** : KingsGate Cambridge are partnering with Cambridge City Foodbank and a volunteer team from Kingsgate Cambridge are running the Trumpington distribution centre.
- **Debt Advice Centre** : Using funding secured from the Church Revitalisation Trust, the KingsGate Community Money Advice Connect Centre opened in February 2021 to offer support for people struggling with debt issues. A team of volunteer money mentors, trained and supported by Community Money Advice have supported thirty-five families and to date has achieved £73,514 in financial outcomes. Eight families have completed the process and are now debt free.
- **Christmas Hampers:** KingsGate was part of the national ‘Love Christmas’ campaign, receiving match funding from the Church Revitalisation Trust and gave away more than 2,000 hampers filled with delicious food treats. KingsGate worked with community partners to ensure that the hampers went to families facing difficulties. This was a wonderful way to express our care for people during the Christmas season.
- **Youth:** 2021 started mid pandemic with LifeGroups and Friday night youth ministry provided through an online experience. Our online provision maintained a strong core of young people. Sunday youth ministry resumed in-person from Easter, with numbers increasing throughout the year to an average attendance in the autumn term of 88 young people. We launched our new youth branding ‘KingsGate Youth – The Future Now’ alongside the relaunch of our in-person Friday night youth service in September. Following three back-to-back vision nights, our Friday night youth ministry started strong, with 170 young people attending our first in-person. 2021 also saw the start of our YAC, Youth Advisory Council for Multiracial inclusion, as well as the development of our video based ‘Bitesize’ teaching, translating mainstage teaching for a younger audience, as well as creating a ‘Youth Next steps’ video teaching series.
- **Children’s Ministry:** Children's work continues offering both in-person and online resources to support families in helping their children to encounter God. The teaching program continues to mirror main auditorium teaching across all ages. Numbers on Sunday morning continue to grow as families find their way back to in-person services. 2021 focussed on regrowing the Sunday morning volunteer team; identifying and developing leaders through our mentoring program.
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## **KINGSGATE COMMUNITY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
- **Overseas Mission:** 2021 was a very challenging year for our key overseas partners in Bulembu in eSwatini, Heart for Lebanon and Compassion, as they experienced the pandemic to a level far worse than the UK and most of Europe. Although we were unable to send teams, many children continue to be sponsored through Compassion and due to the generosity of the church, we were able to give financially to meet specific needs in both Bulembu and Lebanon. During this time, we have continued to support their work through focussed times of prayer as well as relational support to key leaders via zoom. We were also able to respond to global crises by giving financial gifts to World Vision in response to the Haiti earthquake and Tearfund for their ongoing work in Afghanistan.
## **2021 Together on Purpose Special Offering**
In September 2021 we gave into the ‘Together on Purpose’ Special offering. This offering enabled us to continue to invest in leadership development, invest in the technology to support our online presence and support our community action projects, including the debt advice centre.
We additionally transferred 10% of this offering, into our Mission Fund. This helps to resource our Community Action projects, as well as resourcing our partnerships with overseas mission projects, as detailed above.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance Financial review**
Income
Total income, both restricted and unrestricted, of £3.74 million was received in 2021, a 7.5% decrease from 2020 (£4.05 million in 2020). These figures include furlough payments and income from the trading subsidiary. Furlough payments received for both church and trading in 2021 totalled £116,866, a decrease of 63.2% from 2020 (£317,802 in 2020). Trading income was £33,879 in 2021, an 82.9% decrease from 2020 (£198,556 in 2020). Total income excluding furlough and trading income for 2021 was £3.59 million, a 1.7% increase on 2020 (£3.52m in 2020).
The charity’s main income stream is from tithes and offerings given by church members and regular attendees. In 2021, unrestricted tithes and offerings were £2,536,053 which was a 2.1% decrease compared to 2020 (£2,589,858 in 2020). This included £487,465 of unrestricted offerings received by the Cambridge centre, a 11.3% increase compared to 2020 (£487,465 in 2020). It also included £97,307 of unrestricted offerings from our Leicester centre, a 19.2% decrease compared to 2020 (£120,401 in 2020).
Restricted offerings were £657,937, which was a 10.7% increase on 2020 (£594,564 in 2020).
## Expenditure
Expenditure for the year totalled £2,965,170 (2020 £3,017,564) excluding commercial operations in the trading subsidiary.
During 2021, salaries (excluding salaries within the commercial operations) accounted for 54.2% of 2021 expenditure, £1.61 million, compared to 56.2% of 2020 expenditure, £1.70 million. The charity employs both ministry-based positions, such as pastors, children and youth workers and community action workers, as well as administration and management staff, all of which work under the overall direction of the Strategic Leadership Team.
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## **KINGSGATE COMMUNITY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Reserves Policy**
It is the policy of the charity to work towards and then maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately three months unrestricted expenditure excluding certain discretionary spend. This would provide sufficient funds to cover salaries and building running costs for three months. Unrestricted funds of the charity were £1,057k at 31 st December 2021 (excluding interest in land & property). The current reserves level is £471k more than the minimum reserves required.
The need for the charity to hold significant reserves is generated by the employment of 55 full and part time permanent employees along with building running costs of the KingsGate Peterborough building.
It is the charity’s policy to monitor growth and income statistics carefully and if income were to continue to fall significantly, take immediate measures to minimise risk.
## Risk Management
The trustees has 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.
## COVID-19 Risk
In 2021, the impact of COVID-19 continued to be a risk to KingsGate in two main ways: the impact on conferencing business within the trading company and reduction in tithes and offerings. During 2021 we saw a reduction in general tithes and offerings of £82k (3%) and conferencing made a loss of £28k. However, both these reductions in income were compensated for by a reduction in expenditure and the extension to the Coronavirus Job Retention Scheme.
In 2022, the loss of Conferencing income continues to be a risk, but we are beginning to see clients return and bookings are beginning to be secured. We are not expecting conferencing to return to pre-pandemic levels in 2022 and are forecasting an overall budget shortfall because of it. Any shortfall for 2022 will be financed from reserves that have cumulated over the previous three years.
Although the pandemic has had a significant impact, Trustees are confident that KingsGate remains financially secure.
## **Future Plans**
In 2022 we will be continuing to focus on our core mission, which as a church is “TRANSFORMING LIVES from our neighbourhoods to the nations, by the power of God’s love”. We will continue to focus on following three main areas, building on what was done in 2021:
1. GO together on mission for Jesus
2. GROW together in maturity in Jesus
3. COME together to meet with Jesus, a re-emphasis on the importance of the gathered church.
## **Structure, governance and management**
## Governing Document
KingsGate Community Church is a company limited by Guarantee with no share capital. It was incorporated as Peterborough Community Church on the 11 th May 2004 and was registered with the Charity Commission on the same day. It changed its name to KingsGate Community Church from 1 st February 2008.
None of the trustees have any beneficial interest in the company. All the trustees are members of the company and guarantee to contribute such amount as may be required (not exceeding £10) to the company’s assets in the event of a winding up.
KingsGate Community Church business is concluded under the framework of its governing memorandum and
articles of association, prepared under the Companies Act 1985 .
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## **KINGSGATE COMMUNITY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Dr David Smith (Chairman) Mr Simon Wilson (Resigned 14 October 2021) Mr Norman Paskin Mr Barry Featherstone Mr Matthew Negus Mr Samson Abioye (Appointed 1 May 2021)
## Appointment of Trustee Directors
The trustees, who have served during the year and since the year end, are set out on page 2. Trustees are appointed by the board and each year, one third retire by rotation and either new trustees are identified, or previous serving trustees are reappointed.
## Trustee Induction and Training
All trustees are offered external training which will help them to undertake their roles and responsibilities.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
## Organisation
The board of trustees meet at least four times a year. Trustees ensure that the charity remains solvent, is wellrun, and delivering the charitable outcomes for the benefit of the public for which it has been set up. The Strategic Leadership Team, which is made up of the Senior Leadership Team and the Multisite Strategy Team, are responsible for the day-to-day running of the organisation. Key strategies identified by the Senior Leadership Team and the Multisite Strategy Team are ratified by Trustees before implementation.
## Related Parties
KingsGate Trading Ltd, a wholly owned subsidiary, was established on 26 th January 2007. This subsidiary was incorporated to manage the business activities of the charity including the provision of conference facilities, sale of books and resources. KingsGate Community Church granted a ‘licence to use’ the building to KingsGate Trading Ltd who started to hire out the building from 1 st June 2008.
For the majority of 2021, KingsGate Trading Ltd was unable to trade due to COVID-19 restrictions. Events returned from September 2021. KingsGate Trading Ltd made no distributions to the parent company under gift aid and did not pay a management charge for the trading period. KingsGate Trading Ltd recorded a loss for the year £28,329 (2020 a loss of £2,361).
## **Auditor**
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
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KINGSGATE COMMUNITY CHURCH
TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
Disclosure of inft)rmation to audltor
Each of the trustees has ¢onfimed that th is no infDFmation of vknith they are a%*dre vthich 1$ relevant to
the audrÉ, but of whKti the auditor is unaware. They have further confim)ed that they have taken approprlate
steps to identfy such relevant inf0mtiOn and to estatAish that Ihe auditor is aware of such inforniation.
The trustees, report was approveil by the Board of Trusiees.
r Barry Featharstong
Trustee
Dated.. ..1
202L
## **KINGSGATE COMMUNITY CHURCH**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees, who are also the directors of Kingsgate Community Church 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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping 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.
- 7 -
## **KINGSGATE COMMUNITY CHURCH**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF KINGSGATE COMMUNITY CHURCH**
## **Opinion**
We have audited the accounts of Kingsgate Community Church (the ‘ charity ’) and it's subsidiary for the year ended 31 December 2021 which comprise the Group Statement of Financial Activities , the Group and Parent Charitable Company Balance Sheets, the Group and Parent Charitable Company Cash Flow Statements and the notes to the accounts, 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, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the Group and Parent charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 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 _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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.
- 8 -
## **KINGSGATE COMMUNITY CHURCH**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF KINGSGATE COMMUNITY CHURCH**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the trustees' r eport, which includes the d irectors ' r eport prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the d irectors ' r eport included within the trustees' r eport has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the Group and Parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies ' exemptions in preparing the trustees' r eport and from the requirement to prepare a s trategic r eport.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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KINGSGATE COMMUNITY CHURCH
INDEPENDENT AUDrroR'S REPORT (CONTINUED)
TO THE TRUSTEES OF KINGSGATE COMMUNrrY CHURCH
Extant to wfiich the audit Wds considered capable of detecting irre9ulariiie5. including fraud
Irregulatrbes. induding fraud. are instances of norkMpliance laws and latiOns. We desgn procedures
in line with our responsibiliti.es. OL1ed above and on the Finanoal Ren9 Counul's website. to detect
material mi¥statements in respeca of irregLFkirities. induthrs fraud.
We obtain and update our undetandIng of the entity. rts activitses, its control environmert and likety fvture
developments, induding in relation to the legal and regulatory fwamev•vrk appScable and h¢)w the entty is
complying with that framev•tJrt Based on this understsnding, we rdentify and assess the risks of material
misstslement of the financyal 5tstements. vthether due to flaud or error, design and perforni audit procedures
sponsrve to those risks, and obtsin audit edence that is suffiuent and appropriate to provide a basis for our
opinion. Thts indudes consideration of the risk of aas ty the entity that were ntrary to applicable laws and
regulakn"ons. including fraud.
In response to the risk of irreguiaiities and n0n-comptk1n V4ith laws and regulatÈons, indudinè fraud. we
designed procedures which inclLKled.'
. Enquiry of management and those charged with vernance around a¢[ and potential lthgation and
daims as well as actual, suspected and alleged fraud;
Reviewing Minutes of meetings ofthose tharged th govemance",
Assessing the extent of coMlanCe Trmth the laws and regtiOnS considered to have a direct material
effect on the financtal ststements or the operth.ons of the enbty through enquiry ar*d inspection.,
Reviewng financid statement disdosures arxl tesb.ng to supporttng documentstion to assess
mpliance applicable laws and regulatsons"
Perfomiing audit work over the risk of management bias override of controls, induding testing of
joumal entries and other adjustments for appropriateness. evaluating the business rationale of
significant transactions ottside the nomHI of IsInesS and reviewiThJ aCClAg est"mates for
indicators of potents.al bias.
Because of the inherent limitations of an audrt. Ihere rs a risk that we WIN nol detect all irregularibes, ind11n9
those leading to a material misstatement in the financial ststements or nowompliance th regulation. This risk
increases the more that compliance with a law or regulation Is renM)ved )trom the events and transactions
reftecled in the financyal statements. as VAI be less likety to bewme aware of instances of non-
complian¢e. The risk of not dete¢iing a material mtsststement resulh'ng from fraud is higher than for one
resulting from error. as fraud may invofve collusion. forgery. intentional omtssÉons. misrepresentations. or the
oveffide of intemal contrrA.
Use of our report
This report is made to the tharitable comPanS member5. as a body. in acLx)rdance vth Chapter 3 of Part
16 of the Companies Ad 2006. Our audri *rk has been underiaken so that we migm stste to the charitable
company's members those matters we are required to state to them irb an authtors, report and for no other
purpose. To the fullest extent permitted by law. we do not accept or assume resFy)nsibility to anyone other than
the Charitsble company arKI the charitable CoMpanS member5 as a Ix)dy. for our audit worl for this report. or
for the opinions we have fomied.
Mr Mark Jackson FCA DChA {Senior Ststhrtory Auditor)
for and on behalf ofAzets Audit Ser¥i¢¢s
2.:£..Zo2%...
Chartefed Accounlants
statutory Auditor
Ruthtyn House
90 nCOln Roaj
Petertrf)rough
Untted lfjngdom
PE12SP
10-
## **KINGSGATE COMMUNITY CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Current financial year**
**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general d esignated**
**2021**
**2021**
**2021**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
2,536,053
-
657,937
Charitable activities
**4**
75,073
-
318,197
Other trading activities
**5**
114,676
-
-
Other income
**6**
42,247
-
-
**Total income**
2,768,049
-
976,134
**Expenditure on:**
Raising funds
**7**
154,525
-
-
Charitable activities
**8**
1,921,433
278,786
764,951
**Total resources expended**
2,075,958
278,786
764,951
**Net incoming resources before**
**transfers**
692,091
(278,786)
211,183
Gross transfers between funds
(677,366)
680,130
(2,764)
**Net income for the year/**
**Net movement in funds**
14,725
401,344
208,419
Fund balances at 1 January 2021
1,024,735
6,499,876
1,005,292
**Fund balances at 31 December**
**2021**
1,039,460
6,901,220
1,213,711|**Total**
**2021**
**£**
3,193,990
393,270
114,676
42,247
3,744,183
154,525
2,965,170
3,119,695
624,488
-
624,488
8,529,903
9,154,391|Total
2020
**£**
3,184,422
344,892
313,243
206,603
4,049,160
297,404
3,017,564
3,314,968
734,192
-
734,192
7,795,711
8,529,903|
|---|---|---|
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.
- 11 -
## **KINGSGATE COMMUNITY CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Prior financial year**
**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general d esignated**
**2020**
**2020**
**2020**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
2,589,858
-
594,564
Charitable activities
**4**
56,948
-
287,944
Other trading activities
**5**
313,243
-
-
Other income
**6**
206,603
-
-
**Total income**
3,166,652
-
882,508
**Expenditure on:**
Raising funds
**7**
297,404
-
-
Charitable activities
**8**
2,039,093
222,697
755,774
**Total resources expended**
2,336,497
222,697
755,774
**Net incoming resources before transfers**
830,155
(222,697)
126,734
Gross transfers between funds
(603,795)
405,911
197,884
**Net income for the year/**
**Net movement in funds**
226,360
183,214
324,618
Fund balances at 1 January 2020
798,375
6,316,662
680,674
**Fund balances at 31 December 2020**
1,024,735
6,499,876
1,005,292|**Total**
**2020**
**£**
3,184,422
344,892
313,243
206,603
4,049,160
297,404
3,017,564
3,314,968
734,192
-
734,192
7,795,711
8,529,903|
|---|---|
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.
- 12 -
KINGSGATE COMMUNrrY CHURCH
BALANCE SHEErs
ASAT31 DECEMBER 2021
Charity
2020
2021
2021
2020
FIX os$0ts
Tangible assets
Investments
15
16
8.523.720
9.413.984
8.439,457
9,338,271
8.523.720
9.413.985
8.439.457
9,338,272
Currèntassots
14.542
14.542
82.149
2.329.541
Debtors
Cash at bank aTrJ in hand
19
107.986
2,457.748
313,068
2,250.558
2,485.312
2,595258
2.565.734
2,426232
2.363.626
Creditors: wnounts falling withln
one y•ar
{619.1901
(595.696)
{691,6861
1847.9891
1.976.(68
1.970.038
1,734.546
1,715.637
T¢>tsl assèts 18s# curr•rt Ilabili
10.499.788
11.384.023 10.174.003
11.053.909
Creditors: amowrts frdlliry after
moro than one year
11.345.39n (1.321.397) {1.644,fOO) (1.644.100)
9.154.391
lo..$26
8.529,903
9.409.809
In¢omo funds
Restricted fvnds
U restricted fund
Dw6ignated fLmds
Gener unrestricted lunds
1.213.711
1213.711
1.005.292
1.005.292
6.901.220
1,039,460
7.791.484
1,057,431
6.499,876
1.024.73S
7.398,690
1.005.827
9,154.391
10,(62.626
8.529.903
9.409,809
The fmancial statements *Ere approved by the bo of dwects5 aTrJ autrK¥ised lor issue on .....
and are signed on its behaw by..
Mr Barry Featherstone
Trustee
C(xnpany Registi*lon No. 05124435
13-
## **KINGSGATE COMMUNITY CHURCH**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**31**
**Investing activities**
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
**Net cash used in investing activities**
**Financing activities**
Repayment of bank loans
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**Group**
**£**
804,600
(368,840)
7,092
(361,748)
(287,081)
(287,081)
155,771
2,329,541
2,485,312|**2021**
**Charity**
**£**
842,664
(355,485)
7,092
(348,393)
(287,081)
(287,081)
207,190
2,250,558
2,457,748|**2020**
**Group**
**£**
985,181
(98,096)
4,941
(93,155)
(301,204)
(301,204)
590,822
1,738,719
2,329,541|**2020**
**Charity**
**£**
1,096,219
(98,096)
4,941
(93,155)
(301,204)
(301,204)
701,860
1,548,698
2,250,558|
|---|---|---|---|---|
- 14 -
**KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **Charity information**
Kingsgate Community Church is a private company limited by guarantee incorporated in England and Wales. The registered office is 2 Staplee Way, Parnwell, Peterborough, PE1 4YT, United Kingdom.
## **1.1 Accounting convention**
The accounts have been prepared in accordance with the charity's governing document, 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)” (as amended for accounting periods commencing from 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 a mounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention, modified to include certain items at fair value. The principal accounting policies adopted are set out below.
## **1.2 Group financial statements**
The financial statements consolidate the results of the charitable company and its subsidiary undertaking KingsGate Trading Limited on a line-by line basis. Intra-group sales and profits are eliminated fully on consolidation. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.
## **1.3 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 and so continue to adopt the going concern basis of accounting in preparing the financial statements. In arriving at this conclusion, the Trustees have considered the uncertainty regarding the ongoing impact of COVID. As described in more detail in the Trustees’ report, whilst income has reduced since 2020, the trustees have taken a number of mitigating actions to limit the financial impact. On this basis the trustees believe there are sufficient reserves to enable the charity to operate through this period.
## **1.4 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds - these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.
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.
## **1.5 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.
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
- 15 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
**(Continued)**
No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). The charity benefits from many voluntary hours and unclaimed out-of-pocket expenses contributed by a number of supporters. The charity is extremely grateful for all these gifts in kind.
The charity receives grants in respect of its activities. Income from grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
Income from trading activities is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
Investment income is accounted for in the period in which the charity is entitled to receipt.
## **1.6 Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Costs of raising funds; - Expenditure on charitable activities; and
- Other expenditure which represents those items not falling into the categories above.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and other administrative costs. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
## **1.7 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
All assets costing more than £250 are capitalised. No depreciation is provided on freehold land.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings 1% p.a. straight line Office equipment 25% p.a. reducing balance Computer equipment 25% p.a. straight line
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 net income/(expenditure) for the year.
- 16 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.8 Fixed asset investments**
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.
Investments in subsidiaries are measured at cost less impairment.
## **1.9 Impairment of fixed 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 ) .
## **1.10 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first in, first out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
## **1.11 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term liquid investments with original maturities of three months or less .
## **1.12 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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 debtors 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 creditors 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 p aymen ts 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
- 17 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **(Continued)**
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
## **1.13 Taxation**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **1.14 Provisions**
Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value , the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
## **1.15 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.
## **1.16 Leases**
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
## **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.
- 18 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Gifts and offerings
575,203
160,315
Covenants and gift aid
1,566,091
267,318
Income tax repayments
394,759
74,330
Grants received
-
155,974
2,536,053
657,937
**For the year ended 31 December 2020**
2,589,858
594,564
**Grants receivable for core activities**
Peterborough City Council
-
75,175
The Trussell Trust
-
31,392
Church Revitalisation Trust
-
47,742
Cambridgeshire Community Foundation
-
-
Other
-
1,665
-
155,974
**Charitable activities**
Courses and events
Foodbank income
Community action income
Learning communities
Miscellaneous income
**Analysis by fund**
Unrestricted funds
Restricted funds||**Total**
**2021**
**£**
735,518
1,833,409
469,089
155,974
3,193,990
75,175
31,392
47,742
-
1,665
155,974
**2021**
**£**
3,562
87,727
14,013
230,457
57,511
393,270
75,073
318,197
393,270|**Total**
**2020**
**£**
640,533
1,907,940
476,256
159,693
3,184,422
3,184,422
106,264
29,927
18,502
5,000
-
159,693
**2020**
**£**
15,067
119,394
12,411
165,650
32,370
344,892
56,948
287,944
344,892|
|---|---|---|---|
|||||
|||||
|||||
**4 Charitable activities**
- 19 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **5 Other trading activities**
|**6**
**7**|**2021**
**2020**
**£**
**£**
Commercial operations in trading subsidiary
114,676
313,243
**Other income**
**Unrestricted**Unrestricted
**funds**
funds
**general**
general
**2021**
2020
**£**
£
Net gain on disposal of tangible fixed assets
6,178
3,489
Other income
36,069
203,114
42,247
206,603
**Raising funds**
**2021**
**2020**
**£**
**£**
Commercial operations in trading subsidiary
Staff costs
143,485
222,858
Direct costs
6,765
37,964
Administrative expenses
4,275
36,582
154,525
297,404|
|---|---|
- 20 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **8 Charitable activities**
|Staff costs
Depreciation
Outreach and Community Action
Sunday Experience and Connect
Pastoral Care
Equip and Leadership Development
Mission
Facilities
Share of support costs (see note 9)
Share of governance costs (see note 9)
**Analysis by fund**
Unrestricted funds
Unrestricted funds - designated
Restricted funds
**Support costs**
Office costs
Printing, postage and stationery
Photocopying
Audit fees|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
74,943
-
3,951
-
7,662
-
-
10,338
86,556
10,338|**2021**
**£**
1,607,894
278,786
258,953
157,276
86,182
165,500
67,090
246,595
2,868,276
86,556
10,338
2,965,170
1,921,433
278,786
764,951
2,965,170
**2021**
**£**
74,943
3,951
7,662
10,338
96,894|**2020**
**£**
1,697,037
222,697
191,280
155,219
84,552
207,452
53,873
279,732
2,891,842
115,613
10,109
3,017,564
2,039,093
222,697
755,774
3,017,564
**2020**
**£**
101,484
4,242
9,887
10,109
125,722|
|---|---|---|---|
## **9 Support costs**
- 21 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **10 Trustees**
Trustees' remuneration is permitted under certain limited circumstances, if paid as an employee, under the terms of its governing document. During the year, remuneration was paid to one Trustee amounting to £78,956 (2020 - £79,999). Employer pension contributions for this Trustee were £5,127 (2020 - £5,127). No Trustees waived any remuneration .
One Trustee (2020 - one) is accruing pension arrangements.
During the year two trustees received reimbursement of expenses amounting to £ 264 (2020 - £ nil ) of which £ 60 ( 2020 - £nil) was outstanding at the year end and included within trade creditors.
## **11 Auditor's remuneration**
|The analysis of auditor's remuneration is as follows:
Audit of the charity's annual accounts
**Other services to the group**
- the audit of the subsidiary
**Total audit fees**|**2021**
**£**
10,338
2,898
13,236|**2020**
**£**
10,109
2,848
12,957|
|---|---|---|
## **12 Surplus for the financial year**
As permitted by section 408 of the Companies Act 2006, the holding company's surplus has not been included in these financial statements. The surplus for the financial year is made up as follows:
|Holding company's gross income for the financial year
Holding company's surplus for the financial year|**2021**
**£**
3,629,507
652,817|**2020**
**£**
3,758,534
740,038|
|---|---|---|
- 22 -
**KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **13 Commercial operations in trading subsidiary**
The wholly owned trading subsidiary, KingsGate Trading Limited, which is incorporated in England and Wales, pays a proportion of its profits to the charity by gift aid. KingsGate Trading Limited operates the resources centre, coffee shop and room hire at KingsGate Community Church. The charity owns the entire issued share capital of 1 ordinary share at £1 each. A summary of the trading results is shown below.
||**2021**|**2020**|
|---|---|---|
|**KingsGate Trading Limited Profit & Loss Account**|**£**|**£**|
|Turnover|33,859|198,555|
|JRS income|80,797|114,605|
|Cost of sales|(150,250)|(280,015)|
|Administration costs|(13,168)|(13,966)|
|Other income and interest received|20|83|
|Net profit|(48,742)|19,262|
|Add: sales made to charity|11,520|930|
|Less: management charges paid to charity|-|(19,131)|
||(37,222)|1,061|
|Dividend paid to charity|-|(3,485)|
||(37,222)|(2,424)|
|Tax on loss on ordinary activities|8,893|63|
|Retained in the subsidiary|(28,329)|(2,361)|
||**2021**|**2020**|
|**KingsGate Trading Limited Balance Sheet**|**£**|**£**|
|Fixed assets|14,410|5,860|
|Current assets|56,243|95,658|
|Current liabilities|(50,213)|(76,749)|
|Long term liabilities|(24,000)|-|
|Total net assets|(3,560)|24,769|
|Aggregate share capital and reserves|(3,560)|24,769|
- 23 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **14 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|KingsGate Community Church
KingsGate Trading Limited
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2021**
**2021**
**Charity**
**Subsidiary**
**£**
**£**
1,418,852
131,105
128,044
7,464
60,998
4,916
1,607,894
143,485|**2021**
**Number**
55
22
77
**2021**
**Group**
**£**
1,549,957
135,508
65,914
1,751,379|**2020**
**Number**
65
27
92
**2020**
**Group**
**£**
1,710,136
139,958
69,801
1,919,895|
|---|---|---|---|
The number of employees whose annual remuneration was £60,000 or more were:
|||**2021**|**2020**|
|---|---|---|---|
|||**Number**|**Number**|
|£70,001|- £80,000|1|1|
The above employee participated in the pension scheme. During the year ended 31 December 2021 , pension contributions for this employee amounted to £ 5,127 ( 2020 - £ 5,127 ).
- 24 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **15 Tangible fixed assets**
|**Group**
**Cost**
At 1 January 2021
Additions
Disposals
At 31 December 2021
**Depreciation**
At 1 January 2021
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2021
**Carrying amount**
At 31 December 2021
At 31 December 2020
**Charity**
**Cost**
At 1 January 2021
Additions
Disposals
At 31 December 2021
**Depreciation**
At 1 January 2021
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2021
**Carrying amount**
At 31 December 2021
At 31 December 2020|**Freehold**
**land and**
**buildings**
**£**
8,951,827
-
-
8,951,827
931,828
83,871
-
1,015,699
7,936,128
8,019,999
**Freehold**
**land and**
**buildings**
**£**
9,856,501
-
-
9,856,501
931,828
83,871
-
1,015,699
8,840,802
8,924,673|**Plant and**
**equipment**
**£**
1,356,235
368,840
(21,998)
1,703,077
936,777
199,720
(21,012)
1,115,485
587,592
419,458
**Plant and**
**equipment**
**£**
1,287,835
355,485
(21,998)
1,621,322
874,237
194,915
(21,012)
1,048,140
573,182
413,598|**Total**
**£**
10,308,062
368,840
(21,998)
10,654,904
1,868,605
283,591
(21,012)
2,131,184
8,523,720
8,439,457
**Total**
**£**
11,144,336
355,485
(21,998)
11,477,823
1,806,065
278,786
(21,012)
2,063,839
9,413,984
9,338,271|
|---|---|---|---|
- 25 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **15 Tangible fixed assets**
**(Continued)**
All assets are used for direct charitable purposes.
Included within land and buildings is an amount of £1,472,000 (2020 - £1,472,000) in respect of land which is not depreciated.
## **16 Fixed asset investments**
**Investment in subsidiaries Group £ Cost or valuation** At 1 January 2021 & 31 December 2021 -
**Charity Cost or valuation** At 1 January 2021 & 31 December 2021 1
The investment represents a 100% shareholding in KingsGate Trading Limited, a company incorporated in England and Wales.
For details of the principal activity and results for the year, see note 13.
|**Financial instruments**
**Carrying amount of financial assets**
Trade debtors
Other debtors
Amounts due from subsidiary undertakings
Bank and cash
Fixed asset investments
Measured at cost
**Carrying amount of financial liabilities**
Trade creditors
Accruals
Bank loans
Measured at cost|**Group**
**2021**
**£**
6,797
5,559
-
2,485,312
-
2,497,668
53,480
95,874
1,664,816
1,814,170|**Charity**
**2021**
**£**
4,079
3,033
26,719
2,457,748
1
2,491,580
48,285
92,841
1,634,816
1,775,942|**Group**
**2020**
**£**
198
2,818
-
2,329,541
-
2,332,557
26,178
57,348
1,951,897
2,035,423|**Charity**
**2020**
**£**
198
685
33,052
2,250,558
1
2,284,494
19,916
55,433
1,951,897
2,027,246|
|---|---|---|---|---|
## **17 Financial instruments**
- 26 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**18**
**Stocks**
Finished goods and goods for resale
**19**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Income tax recoverable
Amounts due from subsidiary undertakings
Other debtors
Prepayments and accrued income
Deferred tax asset
**20**
**Creditors: amounts falling due within one year**
**Notes**
Bank loans
**22**
Other taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals|**2021**
**Group**
**£**
14,542
**2021**
**Group**
**£**
6,797
34,927
-
5,559
39,228
86,511
8,893
95,404
**2021**
**Group**
**£**
319,419
39,217
74,100
53,480
37,100
95,874
619,190|**2021**
**Company**
**£**
-
**2021**
**Charity**
**£**
4,079
34,927
26,719
3,033
39,228
107,986
-
107,986
**2021**
**Charity**
**£**
313,419
39,217
74,100
48,285
27,834
92,841
595,696|**2020**
**Group**
**£**
14,542
**2020**
**Group**
**£**
198
33,830
-
2,818
45,303
82,149
-
82,149
**2020**
**Group**
**£**
307,797
32,147
210,149
26,178
58,067
57,348
691,686|**2020**
**Company**
**£**
-
**2020**
**Charity**
**£**
198
33,830
33,052
685
45,303
113,068
-
113,068
**2020**
**Charity**
**£**
307,797
32,147
210,149
19,916
22,546
55,433
647,988|
|---|---|---|---|---|
Deferred income is income received for Learning Communities that relates to the year ended 31 December 2022.
|**21**|**Creditors: amounts falling due after more than one year**|**Creditors: amounts falling due after more than one year**|**Creditors: amounts falling due after more than one year**||||
|---|---|---|---|---|---|---|
||||**2021**|**2021**|**2020**|**2020**|
||||**Group**|**Charity**|**Group**|**Charity**|
|||**Notes**|**£**|**£**|**£**|**£**|
||Bank loans|**22**|1,345,397|1,321,397|1,644,100|1,644,100|
- 27 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**22**
**Loans and overdrafts**
**2021**
**2021**
**Group**
**Charity**
£
**£**
Bank loans
1,664,816
1,634,816
Payable within one year
319,419
313,419
Payable after one year
1,345,397
1,321,397
The charity bank borrowings are secured over the assets of the group.|**2020**
**Group**
**£**
1,951,897
307,797
1,644,100|**2020**
**Charity**
**£**
1,951,897
307,797
1,644,100|
|---|---|---|
|**23**
**Provision for liabilities**
**Deferred taxation**
**Balances:**
Tax losses
**Movements in the year:**
Liability at 1 January 2021
Credit to profit or loss
Liability/(Asset) at 31 December 2021|**2021**
**Group**
**£**
8,893|**2021**
**Charity**
**£**
-|**2020**
**Group**
**£**
-|**2020**
**Charity**
**£**
-
**2021**
**£**
-
(8,893)
(8,893)|
|---|---|---|---|---|
The deferred tax asset set out above is expected to reverse within the foreseeable future and relates to the utilisation of tax losses against future expected profits of the same period.
- 28 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **24 Restricted funds**
## **Group and Charity**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 January 2020**
**£**
Building fund - Peterborough
-
Building fund - Cambridge
4,284
Mission fund
440,610
Body needs fund - Peterborough
-
Body needs fund - Cambridge
858
Foodbank fund
68,020
Sabbatical fund
1,854
PCAS grant
35,760
Together on purpose
-
Learning Community fund
12,290
2020 vision fund
108,247
Children's work
7,563
Parnwell Hub grant
1,188
Coronavirus support grant
-
Peterborough - Love Your Neighbour
-
Winter Support fund
-
Peterborough Care Zone -
Cambridgeshire Community
Foundation
-
Carried forward to next page
680,674|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 January 2021**
**£**
**£**
**£**
**£**
113,717
(113,717)
-
-
2,274
(6,268)
-
290
56,747
(213,006)
195,620
479,971
6,450
(7,823)
20,000
18,627
-
(300)
-
558
119,394
(27,360)
-
160,054
-
812
-
2,666
80,000
(37,208)
-
78,552
-
-
-
-
165,650
(168,672)
-
9,268
254,882
(131,234)
(45,488)
186,407
1,000
-
-
8,563
18,772
(2,565)
-
17,395
29,927
(14,964)
-
14,963
18,502
(23,268)
27,752
22,986
10,193
(5,201)
-
4,992
5,000
(5,000)
-
-
882,508
(755,774)
197,884
1,005,292|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December 2021**
**£**
**£**
**£**
**£**
109,989
(98,990)
(10,999)
-
2,257
-
(226)
2,321
37,985
(243,075)
181,116
455,997
-
(2,105)
-
16,522
-
(135)
-
423
87,727
(33,529)
-
214,252
-
(2,666)
-
-
-
(26,112)
2,280
54,720
279,231
-
(27,923)
251,308
230,457
(151,076)
-
88,649
65,950
(34,027)
(183,224)
35,106
-
-
-
8,563
13
(704)
-
16,704
31,392
(14,964)
-
31,391
47,742
(109,220)
38,492
-
40,579
(33,179)
(2,280)
10,112
-
-
-
-
933,322
(749,782)
(2,764)
1,186,068|
|---|---|---|
- 29 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **24 Restricted funds**
|**Restricted funds**
**Balance at**
**1 January 2020**
**£**
Brought forward
680,674
Food Pantry fund
-
Syrian and Afghan Refugees
-
Romanian Connect Group
-
Care Leavers Goods
-
Care Zone donations
-
680,674|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 January 2021**
**£**
**£**
**£**
**£**
882,508
(755,774)
197,884
1,005,292
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
882,508
(755,774)
197,884
1,005,292|**(Continued)**
**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December 2021**
**£**
**£**
**£**
**£**
933,322
(749,782)
(2,764)
1,186,068
1,165
-
-
1,165
10,347
(9,388)
-
959
500
(500)
-
-
25,000
(5,281)
-
19,719
5,800
-
-
5,800
976,134
(764,951)
(2,764)
1,213,711|
|---|---|---|
The Building f unds are held to fund improvements to the premises at Peterborough and to finance any future Cambridge building needs. Once expended a transfer is made to a designated fund representing the interest in the land and property.
The M ission fund arises from the commitment to spend 10% of all income on mission activities. These include community action, launching new Centres, overseas missions and gifts to other ministries.
The B ody N eeds fund represents funds to support members of the church community who are in financial hardship.
The Foodbank fund represents funds provided to support the running of a foodbank across Peterborough.
The sabbatical fund represents the balance of income given to the Church to finance the Senior Pastor's sabbatical.
PCAS g rant was a grant received from the City Council for the provision of emergency food and furniture upon referral from the Peterborough Community Assistance scheme.
The Together on Purpose fund was an offering received in September 2021 to finance key areas of the Together on Purpose vision; Leadership Development, Media and Technology to support our online presence and community action initiatives.
- 30 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **24 Restricted funds**
**(Continued)**
The Learning Community fund represents income and expenses in relation to educational events hosted in partnership with Gateway Church (Dallas), ARC and Stewardship.
The 2020 Vision fund was an offering received over a 4 year period to finance 5 key areas of the 2020 Vision; Inside out initiatives, Leadership Development, Launching new Centres, Technology and building needs.
The Children’s Work fund was a donation received given specifically for the benefit of the Children’s Ministry.
The Parnwell Hub grant was a grant received from the City Council to run community development activities in Parnwell with a range of partner agencies.
Coronavirus Support Grant was a grant received from the Trussell Trust to provide information and advice services for Peterborough Foodbank beneficiaries through a partnership with Citizens Advice Peterborough.
The Love Your Neighbour grant was a grant received from the Church Revitalisation Trust for the provision of emergency food, support the running of Care Zone and to launch a new Debt Advice Service.
The Winter Support Fund was a grant received from Peterborough City Council for the provision of emergency food and white goods upon referral from the Peterborough Community Assistance scheme.
The Peterborough Care Zone - Cambridgeshire Community Foundation provided funding for Care Zone to purchase crockery and saucepan sets for people who had previously experienced homelessness and had been allocated housing.
Food Pantry - KingsGate is setting up a food pantry in Parnwell for families facing long term food insecurity.
Syrian and Afghan Refugee fund - Care Zone is working in partnership with other organisations to resettle refugees from Syrian and Afghanistan into the city. Peterborough City Council has provided funding to enable to Care Zone to increase its capacity to provide furniture for these families.
Romanian Connect Group fund was a grant from the local council to help with the COVID relief efforts within the Peterborough Romanian Community.
Care Leavers Goods Fund - Peterborough City Council provided funding for Care Zone to supply furniture and white goods to care leavers.
Care Zone Donations is a donation received from the Institute of Export to purchase items as needed by the Care Zone.
- 31 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **25 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:
|**Group**
**Balance at**
**1 January 2020**
**Expenditure**
**£**
**£**
Interest in land and property
5,850,769
(83,871)
Interest in fixed assets
465,893
(138,826)
Fixed asset fund
-
-
6,316,662
(222,697)
**Charity**
**Balance at**
**1 January 2020**
**Expenditure**
**£**
**£**
Interest in land and property
6,755,443
(83,871)
Interest in fixed assets
455,780
(138,826)
Fixed asset fund
-
-
7,211,223
(222,697)|**Transfers**
**Balance at**
**1 January 2021**
**Expenditure**
**£**
**£**
**£**
301,204
6,068,102
(83,871)
92,391
419,458
(194,915)
12,316
12,316
-
405,911
6,499,876
(278,786)
**Transfers**
**Balance at**
**1 January 2021**
**Expenditure**
**£**
**£**
**£**
301,204
6,972,776
(83,871)
96,644
413,598
(194,915)
12,316
12,316
-
410,164
7,398,690
(278,786)|**Transfers**
**Balance at**
**31 December**
**2021**
**£**
**£**
317,081
6,301,312
363,049
587,592
-
12,316
680,130
6,901,220
**Transfers**
**Balance at**
**31 December**
**2021**
**£**
**£**
317,081
7,205,986
354,499
573,182
-
12,316
671,580
7,791,484|
|---|---|---|
The designated fund for interest in land and property is an amount transferred from restricted funds in respect of restricted expenditure that has been capitalised in fixed assets. This fund will be utilised as depreciation is charged on the property.
The interest in fixed assets fund represents the net book value of equipment and vehicles. The brought forward element of this fund is included in the General fund.
- 32 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **26 Unrestricted funds**
|**Group**
**Balance at**
**1 January 2020**
**£**
General fund
798,375
798,375
**Charity**
**Balance at**
**1 January 2020**
**£**
General fund
777,874
777,874|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 January 2021**
**£**
**£**
**£**
**£**
3,166,652
(2,336,497)
(603,795)
1,024,735
3,166,652
(2,336,497)
(603,795)
1,024,735
**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 January 2021**
**£**
**£**
**£**
**£**
2,876,026
(2,040,025)
(608,048)
1,005,827
2,876,026
(2,040,025)
(608,048)
1,005,827|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December**
**2021**
**£**
**£**
**£**
**£**
2,768,049
(2,075,958)
(677,366)
1,039,460
2,768,049
(2,075,958)
(677,366)
1,039,460
**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December**
**2021**
**£**
**£**
**£**
**£**
2,653,372
(1,932,953)
(668,815)
1,057,431
2,653,372
(1,932,953)
(668,815)
1,057,431|
|---|---|---|
- 33 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**27**
**Analysis of net assets between funds**
**Group**
**Unrestricted**
**funds**
**Designated**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 31 December 2021 are
represented by:
Tangible assets
-
8,523,720
Current assets/(liabilities)
1,069,260
(301,103)
Long term liabilities
(24,000) (1,321,397)
1,045,260
6,901,220
**Charity**
**Unrestricted**
**funds**
**Designated**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 31 December 2021 are
represented by:
Tangible assets
-
9,413,984
Investments
1
-
Current assets/(liabilities)
1,063,230
(301,103)
Long term liabilities
-
(1,321,397)
1,063,231
7,791,484|**Restricted**
**funds**
**2021**
**£**
-
1,207,911
-
1,207,911
**Restricted**
**funds**
**2021**
**£**
-
-
1,207,911
-
1,207,911|**Total**Unrestricted
funds
**2021**
2020
**£**
£
8,523,720
-
1,976,068
1,024,735
(1,345,397)
-
9,154,391
1,024,735
**Total**Unrestricted
funds
**2021**
2020
**£**
£
9,413,984
-
1
1
1,970,038
1,005,826
(1,321,397)
-
10,062,626
1,005,827|Designated
funds
2020
£
8,439,457
(295,481)
(1,644,100)
6,499,876
Designated
funds
2020
£
9,338,271
-
(295,481)
(1,644,100)
7,398,690|Restricted
funds
2020
£
-
1,005,292
-
1,005,292
Restricted
funds
2020
£
-
-
1,005,292
-
1,005,292|Total
2020
£
8,439,457
1,734,546
(1,644,100)
8,529,903
Total
2020
£
9,338,271
1
1,715,637
(1,644,100)
9,409,809|
|---|---|---|---|---|---|
- 34 -
**KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **28 Control**
No one individual has overall control of the charity.
## **29 Operating lease commitments**
## **Group and charity**
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:
|Within one year
Between two and five years|**2021**
**£**
79,515
-
79,515|**2020**
**£**
55,817
12,601
68,418|
|---|---|---|
## **30 Related party transactions**
## **Remuneration of key management personnel**
The total amount of employee benefits (including employer's pension contributions) received by key management personnel is £515,386 (2020 - £553,125). The charity considers its key management personnel comprises of the members of the Multisite Strategy team.
## **Transactions with related parties**
During the year management charges of £ nil (2020 - £ 19,131 ) were charged to KingsGate Trading Limited, a subsidiary company. W ages costs are recharge d between the Charity and its subsidiary, resulting in a net cost to the Charity of £ 11,224 ( 2020 - net income of £ 4,425 ) . A gift aided donation of £ nil ( 2020 - £ 3,485 ) was also received from KingsGate Trading Limited. Included within debtors is £ 26,719 ( 2020 - £ 33,052 ) due from KingsGate Trading Limited.
Donations of £61,122 ( 2020 - £ 91,305 ) were received during the year from six Trustees ( 2020 - s ix Trustees). No conditions were attached to these donations.
During the year the charity had an arrangement with a third party to create videos based on a book authored by D Smith, a trustee. Many churches and individuals benefitted from the videos, as did KingsGate. The creation of the videos promoted books sales and therefore may have impacted on royalties earned by D Smith, but it is not possible to quantify the effect. A proportion of royalties from the book earned by D Smith will be gifted back to the project and the church will receive an equal share of any surplus generated from video sales over and above costs incurred.
- 35 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**31**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Gain on disposal of tangible fixed assets
Depreciation of tangible fixed assets
Movements in working capital:
Decrease in stocks
(Increase)/decrease in debtors
(Decrease) in creditors
(Decrease) in provisions
**Cash generated from operations**
**32**
**Analysis of changes in net funds**
**Group**
Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year
**Charity**
Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year|**2021**
**Group**
**£**
624,488
(6,178)
283,591
-
(13,255)
(84,046)
-
804,600
|**2021**
**Charity**
**£**
652,817
(6,178)
278,786
-
5,082
(87,843)
-
842,664
**At 1 January**
**2021**
**£**
2,329,541
(307,797)
(1,644,100)
377,644
**At 1 January**
**2021**
**£**
2,250,558
2,250,558
(307,797)
(1,644,100)
298,661|**2020**
**2020**
**Group**
**Charity**
**£**
**£**
734,192
740,039
(3,417)
(3,489)
226,878
222,697
1,911
-
57,852
174,087
(32,172)
(37,115)
(63)
-
985,181
1,096,219
**Cash flows At 31 December**
**2021**
**£**
**£**
155,771
2,485,312
(11,622)
(319,419)
298,703
(1,345,397)
442,852
820,496
**Cash flows At 31 December**
**2021**
**£**
**£**
207,190
2,457,748
207,190
2,457,748
(5,622)
(313,419)
322,703
(1,321,397)
524,271
822,932|
|---|---|---|---|
- 36 -