**Charity registration number 1106273**
**Company registration number 05124435 (England and Wales)**
## **KINGSGATE COMMUNITY CHURCH**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **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||
||Ms Lydia Opayinka|(Appointed 6 January 2023)|
|**Secretary**|Mrs Sally Duffy||
|**Multisite Strategy Team**|Dr David Smith||
||Mrs Karen Smith||
||Mr Simon Deeks||
||Mrs Sally Duffy||
||Mr Jim Thody||
||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 2022**_
The trustees present their annual report and financial statements for the year ended 31 December 2022.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (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.
## 2022 Vision, Values and Strategic Priorities
In 2022, 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 2022 we continued 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”, and the call for us to be disciples and make disciples. Our priority is to disciple people in the four key priorities of a Transformed Life:
1. Knowing God
2. Finding Freedom
3. Growing in Community
4. Making a difference
## 2022 Activities:
The main activity continues to be **teaching via Sunday services and Life Groups both online and in person whenever possible.**
Other activities in 2022 included:
- **Sunday Services:** In-person services take place every Sunday with two services being held at KingsGate Peterborough and one service at KingsGate Cambridge and KingsGate Leicester. 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 2022**_
- **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 2022 LifeGroups have continued to meet regularly, either in-person and/or online. We recognise the vital part our volunteer leaders play in providing pastoral support to those in our church family through LifeGroups. LifeGroup Leader training has migrated to the eLearning platform and has increased the accessibility of training. In 2022 a full review of the Small Group Structure has been completed and is informing a restructuring of the small wing of the church. This includes the launch of the Leadership Community, which will be a key element in supporting and growing our leaders. The re-definition of what constitutes a small group at KingsGate, is informing the training of new leaders to lead different types of groups. We are deeply grateful for all our leaders do and we are excited about the developments for the future.
- **Community Action:** In 2022 Community Action continued 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:** The furniture bank takes donations from the public of essential furniture, household goods and clothing and gives them free of charge to families facing financial pressures. Often the families that Care Zone supports have been homeless and lost all their furniture. In 2022, Care Zone provided furniture for 649 properties and supported 1276 people. Care Zone also worked with Peterborough City Council and other community organisations to support refugee families arriving from Syria, Afghanistan, and Ukraine, providing furniture so that these families can make a positive start to their new life in the UK.
- **Foodbank, Peterborough:** Peterborough Foodbank is a partnership of 5 churches and is part of the Trussell Trust Foodbank network. The project helps people in crisis by providing three days’ emergency food and in 2022, fed 12,683 people. Following a successful 12-month financial inclusion project, Trussell Trust awarded further funding to expand the project for a further 3 years, starting in October 2022. The funding enabled Peterborough Foodbank to partner with Citizens Advice Peterborough (CAP) and have three dedicated CAP workers offer foodbank users information and advice around income maximisation, welfare benefits, housing, and immigration issues. The CAP team now has a triage worker who attends most of the foodbank sessions, a general advice worker and a mental health specialist advice worker who can support foodbank users who have an underlying mental health issue.
- **Debt Advice:** The KingsGate Community Money Advice Connect Centre opened in February 2021 to offer support for people struggling with debt issues. In 2022, a team of volunteer money mentors, trained and supported by Community Money Advice supported 52 people. Nine people have in place a solution to become completely debt-free and this totalled £45,151 of debt cleared for these people.
- **Christmas Hampers:** KingsGate was part of the national ‘Love Christmas’ campaign, receiving match funding from the Church Revitalisation Trust and gave away 2157 hampers across all our campuses. KingsGate worked with forty-eight community partners to ensure that the hampers went to families facing difficulties and the feedback from families was that the hampers were a much-welcomed reminder that they are cared for.
- **Food Pantry, Peterborough:** In May 2022, KingsGate Peterborough opened a food pantry at Lime Academy Parnwell. The purpose of the Food Pantry is to provide support for families facing long term food insecurity by providing access to healthy food at reduced prices, giving dignity, choice, and hope. A team of volunteers run the food pantry supported by the foodbank warehouse team. Funding was secured by Cambridgeshire Community Foundation to help set up the project. Since opening, 41 families have become members and have made 679 visits to the food pantry.
- **Community Action, Cambridge:** A volunteer team from KingsGate Cambridge continue to run the Trumpington distribution centre of Cambridge City Foodbank. KingsGate Cambridge also partnered with Besom to run several Besom projects where teams supported local families facing pressures by undertaking gardening and decorating projects.
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## **KINGSGATE COMMUNITY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
- **Youth:** 2022 has been an encouraging year across the youth ministry, seeing numbers return to pre pandemic levels on a Sunday, Friday nights and in Life Groups. In February 2022, 74 young people attended Youth Camp and 71 attended the Satellites summer camp. We also baptised 16 young people in 2022. Our Autumn Schools mission Illuminate saw unprecedented fruit, working in 4 schools, with over 600 young people attending the end of week gig. In addition to our core ministry provision, we have consulted on Sexuality.com, delivered ‘Youth Alpha’, youth ‘Next Steps’, an Easter mission, increased youth ministry presence, creatively developed our bitesize teaching videos, established improved pastoral care with new rhythms and follow up in place, and have returned to a bi-weekly model of Youth service and Social’s on a Friday night to maximise momentum and growth, launched Discord as a new online communication platform with our young people and created and filmed a 12 session NOCN Level 2 Award (GCSE Equivalent) in Youthwork Practice ready to be launched for all youth team volunteers in 2023.
Finally, the Youth Advisory Council for multiracial inclusion, continues to see the voice of young people empowered in our commitment to racial inclusion. Through the work of the YAC, we completed our first annual youth survey to benchmark and assess our youth ministry provision with racial inclusion in mind.
- **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 mornings continue to grow as new families join the church and, with new volunteers joining the team, we have managed to restore all the age groups across our campuses. As 2023 progresses, we are working to re-establish our schools work and outreach to young families via the Mini Movers Groups.
- **Overseas Mission:** 2022 was a very challenging year for our key overseas partners in Bulembu in eSwatini, Heart for Lebanon, as on the back of the pandemic came the war in Ukraine. As a result of this, our giving last year went to help meet immediate need for things such as food, clothing and shelter. Many children continue to be sponsored through Compassion. We were also able to respond to global crises by giving financial gifts to World Vision in response to the war in Ukraine and Tearfund for relief work in Afghanistan, Pakistan, and Somalia.
## **2022 The Church We See Special Offering**
In March 2022 we gave into ‘The Church We See’ Special offering. 60% of the offering raised allowed us to make a one-off payment on the mortgage of £193,229. 15% of the offering went into a Cambridge Building Fund, which is set aside to help finance a future building in Cambridge. 15% of the special offering will be put towards leadership development and other projects.
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.
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## **KINGSGATE COMMUNITY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **Financial review**
## Income
Total income, both restricted and unrestricted, of £4.05 million was received in 2022, an 8.2% increase from 2021 (£3.74 million in 2021). Trading income was £242,742 in 2022, a 617% from 2021 (£33,879 in 2021). Total income excluding trading income for 2022 was £3.81 million, a 6.0% increase on 2021 (£3.59 million in 2021, also excluding £116,866 of furlough income).
The charity’s main income stream is from tithes and offerings given by church members and regular attendees. In 2022, unrestricted tithes and offerings were £2,599,849 which was a 2.5% increase compared to 2021 (£2,536,053 in 2021). This included £558,940 of unrestricted offerings received by the Cambridge campus, a 3.0% increase compared to 2021 (£542,634 in 2021). It also included £87,126 of unrestricted offerings from our Leicester campus, a 10.5% decrease compared to 2021 (£97,307 in 2021).
Restricted offerings were £677,153, which was a 3.4% increase on 2021 (£652,136 in 2021).
## Expenditure
Expenditure for the year totalled £3,508,624 (2021 £2,965,170) excluding commercial operations in the trading subsidiary.
During 2022, salaries (excluding salaries within the commercial operations) accounted for 47.8% of 2022 expenditure, £1.68 million, compared to 54.2% of 2021 expenditure (£1.61 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.
## **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 £964k on 31[st] December 2022 (excluding interest in land & property). The current reserves level is £377k more than the minimum reserves required.
The need for the charity to hold significant reserves is generated by the employment of 57 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.
## **Future Plans**
In 2023 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” with an emphasis on being RADICAL DISCIPLES who:
1. Keep on ENCOUNTERING Jesus (Knowing God)
4. Keep on FOLLOWING Jesus (Living in Freedom)
5. Keep on GROWING together in Jesus (Growing in Community)
6. Keep on MISSION with Jesus (Making a difference)
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## **KINGSGATE COMMUNITY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **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.
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 Norman Paskin Mr Barry Featherstone Mr Matthew Negus Mr Samson Abioye Ms Lydia Opayinka (Appointed 6 January 2023)
## 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.
KingsGate Trading Ltd made a distribution to the parent company under gift aid of £3,144 and paid a management charge of £28,396 for the trading period (2021 no distribution under gift or management charge). KingsGate Trading Ltd recorded a profit for the year of £18,997 (2021 a loss of £28,329).
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## **KINGSGATE COMMUNITY CHURCH**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **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.
## **Disclosure of information to auditor**
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' report was approved by the Board of Trustees.
## **Dr David Smith (Chairman)**
Trustee Dated: 21 June 2023
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## **KINGSGATE COMMUNITY CHURCH**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
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.
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## **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 2022 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 2022 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.
## **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' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
- the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
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## **KINGSGATE COMMUNITY CHURCH**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF KINGSGATE COMMUNITY CHURCH**
## **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.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in 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' report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, 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**
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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## **KINGSGATE COMMUNITY CHURCH**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF KINGSGATE COMMUNITY CHURCH**
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
- Reviewing minutes of meetings of those charged with governance;
- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of 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 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.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.
|**Mr Mark Jackson FCA DChA (Senior Statutory Auditor)**||
|---|---|
|**for and on behalf of Azets Audit Services**|23 June 2023|
|**Chartered Accountants**||
|**Statutory Auditor**|Ruthlyn House|
||90 Lincoln Road|
||Peterborough|
||Cambridgeshire|
||United Kingdom|
||PE1 2SP|
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## **KINGSGATE COMMUNITY CHURCH**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**Current financial year**
**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general**
**designated**
**2022**
**2022**
**2022**
**Notes**
**£**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
2,599,849
-
677,153
Charitable activities
**4**
106,796
-
417,852
Other trading activities
**5**
243,338
-
-
Other income
**6**
7,206
-
-
**Total income**
2,957,189
-
1,095,005
**Expenditure on:**
Raising funds
**7**
201,671
-
-
Charitable activities
**8**
2,508,451
253,578
746,595
**Total expenditure**
2,710,122
253,578
746,595
**Net incoming resources before transfers**
247,067
(253,578)
348,410
Gross transfers between funds
(320,741)
612,152
(291,411)
**Net (expenditure)/income for the year/**
**Net movement in funds**
(73,674)
358,574
56,999
Fund balances at 1 January 2022
1,039,460
6,901,220
1,213,711
**Fund balances at 31 December 2022**
965,786
7,259,794
1,270,710|**Total**
**2022**
**£**
3,277,002
524,648
243,338
7,206
4,052,194
201,671
3,508,624
3,710,295
341,899
-
341,899
9,154,391
9,496,290|**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|
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 2022**_
## **Prior financial year**
|**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general**
**designated**
**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 expenditure**
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 (expenditure)/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|
- 12 -
## **KINGSGATE COMMUNITY CHURCH**
## **BALANCE SHEETS**
## _**AS AT 31 DECEMBER 2022**_
|**Notes**
**Fixed assets**
Tangible assets
**15**
Investments
**16**
**Current assets**
Stocks
**18**
Debtors
**19**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**20**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**21**
**Net assets**
**Income funds**
Restricted funds
**24**
Unrestricted funds-general
Designated funds
**25**
General unrestricted funds
**26**|**Group**
**2022**
**£**
8,372,459
-
8,372,459
9,872
158,986
2,395,538
2,564,396
(606,724)
1,957,672
10,330,131
(833,841)
9,496,290
1,270,710
7,259,794
965,786
9,496,290|**Charity**
**2022**
**£**
9,266,453
1
9,266,454
-
148,945
2,358,930
2,507,875
(575,225)
1,932,650
11,199,104
(810,432)
10,388,672
1,270,710
8,153,788
964,174
10,388,672|**Group**
**2021**
**£**
8,523,720
-
8,523,720
14,542
95,404
2,485,312
2,595,258
(619,190)
1,976,068
10,499,788
(1,345,397)
9,154,391
1,213,711
6,901,220
1,039,460
9,154,391|**Charity**
**2021**
**£**
9,413,984
1
9,413,985
-
107,986
2,457,748
2,565,734
(595,696)
1,970,038
11,384,023
(1,345,397)
10,062,626
1,213,711
7,791,484
1,057,431
10,062,626|
|---|---|---|---|---|
The financial statements were approved by the board of directors and authorised for issue on 21 June 2023 and are signed on its behalf by:
Dr David Smith (Chairman) **Trustee Company Registration No. 05124435**
- 13 -
## **KINGSGATE COMMUNITY CHURCH**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**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 (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**Group**
**£**
514,729
(106,047)
7,374
(98,673)
(505,830)
(505,830)
(89,774)
2,485,312
2,395,538|**2022**
**Charity**
**£**
505,094
(106,047)
7,374
(98,673)
(505,239)
(505,239)
(98,818)
2,457,748
2,358,930|**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|
|---|---|---|---|---|
- 14 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **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 amounts 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. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **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.
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.
- 15 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **1 Accounting policies**
## **(Continued)**
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**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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 the statement of financial activities.
- 16 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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 2022**_
## **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 is 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 2022**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
Gifts and offerings
567,796
117,807
Covenants and gift aid
1,623,482
368,909
Income tax repayments
408,571
94,828
Grants received
-
95,609
2,599,849
677,153
**For the year ended 31 December 2021**
2,536,053
657,937
**Grants receivable for core activities**
Peterborough City Council
-
13,619
The Trussell Trust
-
51,750
Church Revitalisation Trust
-
10,500
Other
-
19,740
-
95,609|**Total**
**2022**
**£**
685,603
1,992,391
503,399
95,609
3,277,002
13,619
51,750
10,500
19,740
95,609|**Total**
**2021**
**£**
735,518
1,833,409
469,089
155,974|
|---|---|---|
|||3,193,990|
|||3,193,990|
|||75,175
31,392
47,742
1,665|
|||155,974|
## **4 Charitable activities**
|Courses and events
Foodbank income
Community action income
Learning communities
Miscellaneous income
**Analysis by fund**
Unrestricted funds
Restricted funds|**2022**
**£**
32,250
132,101
22,843
311,837
25,617
524,648
106,796
417,852
524,648|**2021**
**£**
3,562
87,727
14,013
230,457
57,511|
|---|---|---|
|||393,270|
|||75,073
318,197|
|||393,270|
- 19 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **5 Other trading activities**
|Commercial operations in trading subsidiary
**6**
**Other income**|**2022**
**£**
243,338|**2021**
**£**
114,676|
|---|---|---|
||||
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2022**|2021|
||**£**|£|
|Net gain on disposal of tangible fixed assets|7,206|6,178|
|Other income|-|36,069|
||7,206|42,247|
|**Raising funds**|||
||**2022**|**2021**|
||**£**|**£**|
|Commercial operations in trading subsidiary|||
|Staff costs|130,379|143,485|
|Direct costs|24,608|6,765|
|Administrative expenses|46,684|4,275|
||201,671|154,525|
## **7 Raising funds**
- 20 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **8 Charitable activities**
|Staff costs
Depreciation
Outreach and Community Action
Sunday Experience and Connect
Pastoral Care
Equip and Leadership Development
Overseas 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|**2022**
**£**
1,678,691
253,578
323,250
264,231
146,801
293,090
122,957
301,712
3,384,310
112,499
11,815
3,508,624
2,508,451
253,578
746,595
3,508,624|**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|
## **9 Support costs**
|**Support costs**||||
|---|---|---|---|
|Office costs
Printing, postage and stationery
Photocopying
Audit fees|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
102,580
-
3,282
-
6,637
-
-
11,815
112,499
11,815|**2022**
**£**
102,580
3,282
6,637
11,815
124,314|**2021**
**£**
74,943
3,951
7,662
10,338|
||||96,894|
## **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 £79,046 (2021 - £78,956). Employer pension contributions for this Trustee were £7,406 (2021 - £5,127). No Trustees waived any remuneration.
One Trustee (2021 - one) is accruing pension arrangements.
- 21 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **10 Trustees**
## **(Continued)**
During the year one trustee received reimbursement of expenses amounting to £440 (2021 - two trustees received £264) of which £nil (2021 - £60) 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**|**2022**
**£**
11,815
2,923
14,738|**2021**
**£**
10,338
2,898|
|---|---|---|
|||13,236|
## **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|**2022**
**£**
3,835,664
326,185|**2021**
**£**
3,629,507|
|---|---|---|
|||652,817|
- 22 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **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 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.
||**2022**|**2021**|
|---|---|---|
|**KingsGate Trading Limited Profit & Loss Account**|**£**|**£**|
|Turnover|242,742|33,859|
|JRS income|-|80,797|
|Cost of sales|(181,795)|(150,250)|
|Administration costs|(15,618)|(13,168)|
|Other income and interest received|596|20|
|Interest payable|(539)|-|
|Net profit|45,386|(48,742)|
|Add: sales made to charity|994|11,520|
|Less: management charges paid to charity|(23,664)|-|
||22,716|(37,222)|
|Dividend paid to charity|(3,144)|-|
||19,572|(37,222)|
|Tax on loss on ordinary activities|(3,719)|8,893|
|Retained in the subsidiary|15,853|(28,329)|
||**2022**|**2021**|
|**KingsGate Trading Limited Balance Sheet**|**£**|**£**|
|Fixed assets|10,680|14,410|
|Current assets|103,629|56,243|
|Current liabilities|(78,607)|(50,213)|
|Long term liabilities|(23,409)|(24,000)|
|Total net assets|12,293|(3,560)|
|Aggregate share capital and reserves|12,293|(3,560)|
- 23 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **14 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|KingsGate Community Church
KingsGate Trading Limited
**Employment costs**
**2022**
**2022**
**Charity**
**Subsidiary**
**£**
**£**
Wages and salaries
1,468,789
119,706
Social security costs
142,554
7,234
Other pension costs
67,348
3,439
1,678,691
130,379
The number of employees whose annual remuneration was £60,000 or more were:
£70,001 - £80,000|**2022**
**Number**
57
15
72
**2022**
**Group**
**£**
1,588,495
149,788
70,787
1,809,070
**2022**
**Number**
1|**2021**
**Number**
55
22|
|---|---|---|
|||77|
|||**2021**
**Group**
**£**
1,549,957
135,508
65,914|
|||1,751,379|
|||**2021**
**Number**
1|
The above employee participated in the pension scheme. During the year ended 31 December 2022, pension contributions for this employee amounted to £7,406 (2021 - £5,127).
- 24 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **15 Tangible fixed assets**
|**Group**
**Cost**
At 1 January 2022
Additions
Disposals
At 31 December 2022
**Depreciation**
At 1 January 2022
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2022
**Carrying amount**
At 31 December 2022
At 31 December 2021
**Charity**
**Cost**
At 1 January 2022
Additions
Disposals
At 31 December 2022
**Depreciation**
At 1 January 2022
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2022
**Carrying amount**
At 31 December 2022
At 31 December 2021|**Freehold**
**land and**
**buildings**
**£**
8,951,827
-
-
8,951,827
1,015,699
83,871
-
1,099,570
7,852,257
7,936,128
**Freehold**
**land and**
**buildings**
**£**
9,856,501
-
-
9,856,501
1,015,699
83,871
-
1,099,570
8,756,931
8,840,802|**Plant and**
**equipment**
**£**
1,703,077
106,047
(7,278)
1,801,846
1,115,485
173,269
(7,110)
1,281,644
520,202
587,592
**Plant and**
**equipment**
**£**
1,621,322
106,047
(5,020)
1,722,349
1,048,140
169,707
(5,020)
1,212,827
509,522
573,182|**Total**
**£**
10,654,904
106,047
(7,278)
10,753,673
2,131,184
257,140
(7,110)
2,381,214
8,372,459
8,523,720
**Total**
**£**
11,477,823
106,047
(5,020)
11,578,850
2,063,839
253,578
(5,020)
2,312,397
9,266,453
9,413,984|
|---|---|---|---|
- 25 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **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 (2021 - £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 2022 & 31 December 2022|-|
|**Charity**||
|**Cost or valuation**||
|At 1 January 2022 & 31 December 2022|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.
|**17**
**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**
**2022**
**£**
74,564
6,233
-
2,395,538
-
2,476,335
41,058
88,820
1,158,986
1,288,864|**Charity**
**2022**
**£**
24,523
4,299
47,108
2,358,930
1
2,434,861
35,463
77,481
1,129,577
1,242,521|**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|
- 26 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**18**
**Stocks**
**2022**
**2022**
**Group**
**Company**
**£**
**£**
Finished goods and goods for resale
9,872
-
**19**
**Debtors**
**2022**
**2022**
**Group**
**Charity**
**Amounts falling due within one year:**
**£**
**£**
Trade debtors
74,564
24,523
Income tax recoverable
38,566
38,566
Amounts due from subsidiary undertakings
-
47,108
Other debtors
6,233
4,299
Prepayments and accrued income
34,449
34,449
153,812
148,945
Deferred tax asset
5,174
-
158,986
148,945
**20**
**Creditors: amounts falling due within one year**
**2022**
**2022**
**Group**
**Charity**
**Notes**
**£**
**£**
Bank loans
**22**
325,145
319,145
Other taxation and social security
39,208
39,208
Deferred income
70,699
70,699
Trade creditors
41,058
35,463
Other creditors
41,794
33,229
Accruals
88,820
77,481
606,724
575,225
Deferred income is income received for Learning Communities that relates to the
2023.
**21**
**Creditors: amounts falling due after more than one year**
**2022**
**2022**
**Group**
**Charity**
**Notes**
**£**
**£**
Bank loans
**22**
833,841
810,432|**2021**
**2021**
**Group**
**Company**
**£**
**£**
14,542
-
**2021**
**2021**
**Group**
**Charity**
**£**
**£**
6,797
4,079
34,927
34,927
-
26,719
5,559
3,033
39,228
39,228
86,511
107,986
8,893
-
95,404
107,986
**2021**
**2021**
**Group**
**Charity**
**£**
**£**
319,419
313,419
39,217
39,217
74,100
74,100
53,480
48,285
37,100
27,834
95,874
92,841
619,190
595,696
year ended 31 December
**2021**
**2021**
**Group**
**Charity**
**£**
**£**
1,345,397
1,321,397|**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|
- 27 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**22**
**Loans and overdrafts**
**2022**
**2022**
**Group**
**Charity**
£
**£**
Bank loans
1,158,986
1,129,577
Payable within one year
325,145
319,145
Payable after one year
833,841
810,432
The charity bank borrowings are secured over the assets of the group.|**2021**
**Group**
**£**
1,664,816
319,419
1,345,397|**2021**
**Charity**
**£**
1,634,816|
|---|---|---|
|||313,419
1,321,397|
||||
## **23 Provision for liabilities**
|**Deferred taxation**
**Balances:**
Tax losses
**Movements in the year:**
Liability/(Asset) at 1 January 2022
Charge to profit or loss
Liability/(Asset) at 31 December 2022|**2022**
**Group**
**£**
5,174|**2022**
**Charity**
**£**
-|**2021**
**Group**
**£**
8,893|**2021**
**Charity**
**£**
-|
|---|---|---|---|---|
|||||**2022**
**£**
(8,893)
3,719|
|||||(5,174)|
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 2022**_
## **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 2021**
**£**
Building fund - Peterborough
-
Building fund - Cambridge
290
Mission fund
479,971
Body needs fund - Peterborough
18,627
Body needs fund - Cambridge
558
Foodbank fund
160,054
Sabbatical fund
2,666
PCAS grant
78,552
Together on purpose
-
Learning Community fund
9,268
2020 vision fund
186,407
Children's work
8,563
Parnwell Hub grant
17,395
Peterborough - Love Your Neighbour
14,963
Coronavirus support grant
22,986
Winter Support fund
4,992
Carried forward to next page
1,005,292|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 January 2022**
**£**
**£**
**£**
**£**
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)
-
-
47,742
(109,220)
38,492
31,391
40,579
(33,179)
(2,280)
10,112
933,322
(749,782)
(2,764)
1,186,068|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December 2022**
**£**
**£**
**£**
**£**
-
-
-
-
35,291
-
51,172
88,784
157,173
(208,765)
20,084
424,489
9,375
(5,339)
(1,177)
19,381
200
(900)
1,177
900
132,101
(49,365)
-
296,988
-
-
-
-
-
(51,617)
(3,103)
-
12,986
(26,057)
(69,151)
169,086
285,451
(271,958)
-
102,142
-
(4,137)
-
30,969
-
(1,000)
-
7,563
300
(114)
-
16,890
-
-
-
-
51,750
(62,067)
-
21,074
3,000
(14,210)
3,103
2,005
687,627
(695,529)
2,105
1,180,271|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December 2022**
**£**
**£**
**£**
**£**
-
-
-
-
35,291
-
51,172
88,784
157,173
(208,765)
20,084
424,489
9,375
(5,339)
(1,177)
19,381
200
(900)
1,177
900
132,101
(49,365)
-
296,988
-
-
-
-
-
(51,617)
(3,103)
-
12,986
(26,057)
(69,151)
169,086
285,451
(271,958)
-
102,142
-
(4,137)
-
30,969
-
(1,000)
-
7,563
300
(114)
-
16,890
-
-
-
-
51,750
(62,067)
-
21,074
3,000
(14,210)
3,103
2,005
687,627
(695,529)
2,105
1,180,271|
|---|---|---|---|
||||1,180,271|
- 29 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **24 Restricted funds**
**(Continued)**
|**Balance at**
**1 January 2021**
**£**
Brought forward
1,005,292
Food Pantry fund
-
Syrian and Afghan Refugees
-
Romanian Fund
-
Care Leavers Goods
-
Care Zone donations
-
The Church We See
-
1,005,292|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 January 2022**
**£**
**£**
**£**
**£**
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|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December 2022**
**£**
**£**
**£**
**£**
687,627
(695,529)
2,105
1,180,271
22,789
(16,529)
10,000
17,425
17,156
(18,115)
-
-
1,288
(18)
-
1,270
-
(10,604)
-
9,115
-
(5,800)
-
-
366,145
-
(303,516)
62,629
1,095,005
(746,595)
(291,411)
1,270,710|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December 2022**
**£**
**£**
**£**
**£**
687,627
(695,529)
2,105
1,180,271
22,789
(16,529)
10,000
17,425
17,156
(18,115)
-
-
1,288
(18)
-
1,270
-
(10,604)
-
9,115
-
(5,800)
-
-
366,145
-
(303,516)
62,629
1,095,005
(746,595)
(291,411)
1,270,710|
|---|---|---|---|
||||1,270,710|
The Building funds 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 Mission 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 Body Needs 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 grant 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 2022**_
## **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.
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.
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 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 Fund included a grant received in 2021 from the local council to help with the COVID relief efforts within the Peterborough Romanian Community, and also includes giving to help support KingsGate members setting up a church in Cluj, Romania.
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.
The Church We See fund was an offering received in March. 60% was used to make a one-off mortgage payment, 15% was set aside into a Cambridge building fund and the remainder is for Leadership Development and other projects.
- 31 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **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 2021**
**Expenditure**
**£**
**£**
Interest in land and property
6,068,102
(83,871)
Interest in fixed assets
423,711
(194,915)
Fixed asset fund
12,316
-
6,504,129
(278,786)
**Charity**
**Balance at**
**1 January 2021**
**Expenditure**
**£**
**£**
Interest in land and property
6,972,776
(83,871)
Interest in fixed assets
413,598
(194,915)
Fixed asset fund
12,316
-
7,398,690
(278,786)|**Transfers**
**Balance at**
**1 January 2022**
**Expenditure**
**£**
**£**
**£**
317,081
6,301,312
(83,871)
350,246
587,592
(169,707)
-
12,316
-
667,327
6,901,220
(253,578)
**Transfers**
**Balance at**
**1 January 2022**
**Expenditure**
**£**
**£**
**£**
317,081
7,205,986
(83,871)
354,499
573,182
(169,707)
-
12,316
-
671,580
7,791,484
(253,578)|**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
505,240
6,722,681
102,317
520,202
4,595
16,911
612,152
7,259,794
**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
505,240
7,627,355
106,047
509,522
4,595
16,911
615,882
8,153,788|**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
505,240
6,722,681
102,317
520,202
4,595
16,911
612,152
7,259,794
**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
505,240
7,627,355
106,047
509,522
4,595
16,911
615,882
8,153,788|
|---|---|---|---|
||||8,153,788|
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.
- 32 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **26 Unrestricted funds**
|**Group**
**Balance at**
**1 January 2021**
**£**
General fund
1,024,735
1,024,735
**Charity**
**Balance at**
**1 January 2021**
**£**
General fund
1,005,827
1,005,827|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 January 2022**
**£**
**£**
**£**
**£**
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**
**1 January 2022**
**£**
**£**
**£**
**£**
2,653,372
(1,932,953)
(668,815)
1,057,431
2,653,372
(1,932,953)
(668,815)
1,057,431|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
**£**
**£**
2,957,189
(2,710,122)
(320,741)
965,786
2,957,189
(2,710,122)
(320,741)
965,786
**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
**£**
**£**
2,740,659
(2,508,451)
(325,465)
964,174
2,740,659
(2,508,451)
(325,465)
964,174|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
**£**
**£**
2,957,189
(2,710,122)
(320,741)
965,786
2,957,189
(2,710,122)
(320,741)
965,786
**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
**£**
**£**
2,740,659
(2,508,451)
(325,465)
964,174
2,740,659
(2,508,451)
(325,465)
964,174|
|---|---|---|---|
||||964,174|
- 33 -
## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**27**
**Analysis of net assets between funds**
**Group**
**Unrestricted**
**funds**
**Designated**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31 December 2022 are
represented by:
Tangible assets
-
8,372,459
Current assets/(liabilities)
989,195
(302,233)
Long term liabilities
(23,409)
(810,432)
965,786
7,259,794
**Charity**
**Unrestricted**
**funds**
**Designated**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31 December 2022 are
represented by:
Tangible assets
-
9,266,453
Investments
1
-
Current assets/(liabilities)
964,173
(302,233)
Long term liabilities
-
(810,432)
964,174
8,153,788|**Restricted**
**funds**
**2022**
**£**
-
1,270,710
-
1,270,710
**Restricted**
**funds**
**2022**
**£**
-
-
1,270,710
-
1,270,710|**Total**
Unrestricted
funds
**2022**
2021
**£**
£
8,372,459
-
1,957,672
1,063,460
(833,841)
(24,000)
9,496,290
1,039,460
**Total**
Unrestricted
funds
**2022**
2021
**£**
£
9,266,453
-
1
1
1,932,650
1,057,430
(810,432)
-
10,388,672
1,057,431|Designated
funds
2021
£
8,523,720
(301,103)
(1,321,397)
6,901,220
Designated
funds
2021
£
9,413,984
-
(301,103)
(1,321,397)
7,791,484|Restricted
funds
2021
£
-
1,213,711
-
1,213,711
Restricted
funds
2021
£
-
-
1,213,711
-
1,213,711|Total
2021
£
8,523,720
1,976,068
(1,345,397)
9,154,391
Total
2021
£
9,413,984
1
1,970,038
(1,321,397)
10,062,626|
|---|---|---|---|---|---|
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## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
## **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|**2022**
**£**
39,762
58,695
98,457|**2021**
**£**
79,515
-|
|---|---|---|
|||79,515|
## **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 £478,478 (2021 - £515,386). 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 £23,664 (2021 - £nil) were charged to KingsGate Trading Limited, a subsidiary company. Wages costs are recharged between the Charity and its subsidiary, resulting in a net income to the Charity of £18,090 (2021 - net cost of £11,224). A gift aided donation of £3,144 (2021 - £nil) was also received from KingsGate Trading Limited. Included within debtors is £47,108 (2021 - £26,719) due from KingsGate Trading Limited.
Donations of £90,220 (2021 - £61,122) were received during the year from eight Trustees (2021 - six Trustees). No conditions were attached to these donations.
During the prior 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.
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## **KINGSGATE COMMUNITY CHURCH**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_
|**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) in debtors
(Decrease) in creditors
**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|**2022**
**2022**
**Group**
**Charity**
**£**
**£**
341,899
326,046
(7,206)
(7,374)
257,140
253,578
4,670
-
(63,582)
(40,959)
(18,192)
(26,197)
514,729
505,094
**At 1 January**
**2022**
**£**
2,485,312
(319,419)
(1,345,397)
820,496
**At 1 January**
**2022**
**£**
2,457,748
2,457,748
(319,419)
(1,345,397)
792,932|**2021**
**2021**
**Group**
**Charity**
**£**
**£**
624,488
652,817
(6,178)
(6,178)
283,591
278,786
-
-
(13,255)
5,082
(84,046)
(87,843)
804,600
842,664
**Cash flows At 31 December**
**2022**
**£**
**£**
(89,774)
2,395,538
(5,726)
(325,145)
511,556
(833,841)
416,056
1,236,552
**Cash flows At 31 December**
**2022**
**£**
**£**
(98,818)
2,358,930
(98,818)
2,358,930
274
(319,145)
534,965
(810,432)
436,421
1,229,353|
|---|---|---|
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