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← Grace Church Dulwich

2023-08-31-accounts

05554986

Grace Church Dulwich (A company limited by guarantee)

Report and Financial Statements For the year ending 31 August 2023

Charity number 1111740 Company number 05554986

Grace Church Dulwich (A company limited by guarantee)

Financial Statements for the year ending 31 August 2023

Contents Page
Report of the Trustees 2
Report of the Independent Examiner 6
Statement of Financial Activities 7
Balance Sheet 8
Notes forming part of the financial statements 9

1

Grace Church Dulwich

Report of the Trustees for the year ending 31 August 2023

Reference and Administrative Information

Charity name: Grace Church Dulwich Charity registration number: 1111740 Company registration number: 05554986 Registered Office 135 Sydenham Park Road Sydenham London SE26 4LP

Directors of the Company and Trustees for the purpose of charity law Rev. S Dowdy Chairman / Senior Minister (resigned 31 August 2023) Mr B Jones Churchwarden Mr M Evans Churchwarden – (appointed 7 February 2023) Mr A Neden Treasurer Mrs M Burke (appointed 7 February 2023) Mrs L Nelson (resigned 7 February 2023) Mr W Nettleford Mrs H Simmons (resigned 6 February 2024)

Secretary Mrs V Widdows

Independent Examiner

Ajay Rajani FCIE, Stewardship, 1 Lambs Passage London EC1Y 8AB

Bankers

NatWest Bank, St Paul’s Branch, Juxon House, 98 St Paul’s Churchyard, London EC4M 8BU

Structure, Governance and Management

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 6 September 2005 and registered as a charity as from that date. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £1 each.

Recruitment and Appointment of the Church Council, Directors of the company and Trustees for the purposes of charity law

Under the company’s Memorandum and Articles of Association the greater of (i) two or (ii) one third of the members of the Church Council (aside from the Senior Minister and Wardens who serve ex-officio) shall retire at each Annual General Meeting in rotation. Appointments (other than the initial appointment of the first members of the Church Council) or reappointments shall be by election at the Annual General Meeting, with the approval of the Senior Minister and for a fixed period of three years.

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Grace Church Dulwich

Report of the Trustees for the year ending 31 August 2023

The Directors of the company are also charity trustees for the purposes of charity law. Trustees are appointed for a fixed term of three years (aside from the Senior Minister and Wardens who serve ex-officio). The appointment or re-appointment of any Trustee is by the remaining Trustees and requires the prior written approval of the Council of Reference and the Church Council.

Objectives and Activities

The objects of the charity are the advancement of the Christian Faith.

We are an Anglican Evangelical church. People of all ages and stages and backgrounds meet at Grace Church, committed to learning from the Bible as we seek actively to love and serve Jesus Christ. Visitors are always welcome, particularly all those investigating the claims of Jesus or looking for a church family to make their own.

Our mission statement

Our overall purpose is to make disciples of Jesus Christ.

We believe that Jesus’ Great Commission of Matthew 28:16-20 is the mission of the church: to go into the world and make disciples by declaring the gospel of Jesus Christ in the power of the Spirit, and gathering these disciples into churches that they might worship and obey Jesus Christ both now and in eternity- to the glory of God the Father.

Activities and Achievements

The principal activities of the charity are:

These activities are undertaken in and around the Dulwich area of South-East London.

In planning these activities, the Trustees have had regard to the guidance on public benefit issued by the Charity Commission. All of these activities have welcomed newcomers from the local community throughout the year.

For the year the principal mission partners were Holy Redeemer Streatham; through Crosslinks, a Minister and his family working in Naples, Italy, an individual working with Calvary Church Castlebar, Eire and Christ Church Soweto, South Africa; and, through Grace Baptist Mission, the principal (and his family) of Proclamation Institute Zambia.

Financial Review

The charity is dependent for funding solely on donations from members of the Company and other individual donors.

In the year to 31 August 2023, the charity recorded a deficit of £40,478 on unrestricted funds from its usual activities (2022 a total surplus on unrestricted funds of £114,962 – being a surplus of £25,624 from its usual activities, an additional £87,000 by virtue of donations made in order

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Grace Church Dulwich

Report of the Trustees for the year ending 31 August 2023

to facilitate the acquisition of a residential property to support the ministry long term and a further gain of £2,338 on the sale of its social investment).

In 2022 a house was acquired in order to house one of the members of staff and his family for the better performance of his duties. The charity used historic reserves, the additional donations referred to above and a loan from Kingdom Bank Limited to fund the purchase.

These financial statements record only the financial transactions – they do not, and it would not be possible to, record all the voluntary work done and resources provided by many to support the charity and its objectives.

Reserves

Apart from the residential property acquired during the previous year, the charity does not own any other building or other significant fixed assets nor is it currently contemplating any longerterm financial projects such as would require the establishment of substantial reserves. Consequently, the Trustees consider that whilst this remains the case, taking into account the asset which would be sellable if absolutely necessary, a prudent readily realisable reserve would be to have unrestricted net current assets of somewhere between £80,000 to £100,000, enough to cover approximately three months of usual expenditure. The charity ended the year with unrestricted net current assets of just under £76,000, which is just under the range set by the policy for holding reserves.

Responsibilities of Trustees

The directors are responsible for preparing the trustees' annual 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 the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements, the trustees are required to:

  1. select suitable accounting policies and apply them consistently;

  2. observe the methods and principles in the Charities SORP;

  3. make judgements and estimates that are reasonable and prudent;

  4. state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

  5. prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible

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Grace Church Dulwich

Report of the Trustees for the year ending 31 August 2023

for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Stewardship Services were appointed as reporting accountants and one of their employees serves as the company's independent examiner.

This report, which has been prepared in accordance with the provisions of the Companies Act 2006 relating to small companies, was approved by the trustees on 2 May 2024 and signed on their behalf by:

Andrew Frederick John Neden

Mr A Neden FCA (Trustee)

5

Grace Church Dulwich

Independent Examiner's Report to the Trustees of Grace Church Dulwich

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2023 on pages 7 to 18 following which have been prepared on the basis of the accounting policies set out on pages 9 to 11.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a Fellow of the Association of Charity Independent Examiners, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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

Ajay Rajani FCIE Fellow of the Association of Charity Independent Examiners

Stewardship 1 Lambs Passage London EC1Y 8AB

3 May 2024

6

Grace Church Dulwich

Statement of Financial Activities (including Income & Expenditure Account) for the year ending 31 August 2023

Total Total
Funds Funds
2023 2022
Notes £ £
Income and
endowments from:
Donations 297,915 391,348
2
Interest receivable 534 183
Charitable activities 3 7,122
 5,716
Total income and 305,571 397,247
endowments
Expenditure on
charitable
activities:
Grant payments 4 26,344 27,533
Activities relating 5 283,023 250,302
directly to the church
Interest payable 31,771 2,000
Governance costs 6 4,911
 4,788
Total expenditure 346,049
 284,623
Net gains on
investments -
 2,338
Net incoming / (40,478) 114,962
(outgoing)
resources
Total funds brought 419,184 304,222
forward
Total funds carried 378,706 419,184
forward

The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities. All of the charity’s income during the year to 31 August 2023 and the year to 31 August 2022 was unrestricted.

7

Grace Church Dulwich

Balance Sheet as at 31 August 2023

Notes
Fixed assets
Residential property
10
Current assets
Stock
12
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Creditors: amounts falling due after
one year
14
Net assets
Total funds (all unrestricted)
15		 2023
£
-
39,143
52,391

91,534
(16,008)


 2023
£
897,515




75,526
(594,335)

378,706

378,706
 2022
£
521
68,978
84,719

154,218
(27,528)




 2022
£
892,735
126,690
(600,241)

419,184


419,184

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2023 in accordance with Section 476 of the Companies Act 2006 however, in accordance with Section 145 of the Charities Act 2011, the accounts have been examined by an independent examiner and their report has been included in these financial statements. The directors (who are the charitable company's trustees for the purposes of charity law) acknowledge their responsibilities for:

The financial statements were approved by the Trustees on 2 May 2024 and were signed on its behalf by:

Andrew Frederick John Neden

Mr A Neden FCA (Trustee) Company Number: 05554986, Charity Number: 1111740

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Grace Church Dulwich

Notes forming part of the Financial Statements for the year ending 31 August 2023

1 Accounting Policies

The charity is a charitable company limited by guarantee and is incorporated in the United Kingdom. The company's registered number and registered office address can be found in the Directors’ Report.

These financial statements are prepared on a going concern basis, under the historical cost convention as modified by the revaluation of certain assets, which are measured at fair value through the Statement of Financial Activities.

These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102"), with the Companies Act 2006 and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.

The principles adopted in the preparation of the financial statements are set out below.

a. Going concern

The trustees (who are the charitable company's directors for the purposes of company law) have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

b. Fund accounting

Unrestricted funds are funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.

c. Income and endowments

Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Income from donations includes recoverable gift aid, which is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.

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Grace Church Dulwich

Notes forming part of the Financial Statements for the year ending 31 August 2023

The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.

Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from events organised by the charity.

d. Expenditure

Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.

The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services to beneficiaries. It comprises expenditure on activities undertaken directly and by grant funding to other institutions and individuals. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and includes the fees of the independent examiner.

e. Tangible fixed assets

Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £2,000 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:

Computer software and hardware 2 years Fixtures and fittings 5 years

Residential property used by the charity is held at historic cost. The residual value of the property at the end of its expected useful life is considered to be very high and, as it would not be material, no depreciation is being charged on this asset.

f. Social investments

Social investments are investments where the primary motive is to further the charity's objects, not to generate an investment return. In the previous year social investments comprised an investment in a residential property used by another church to provide accommodation to its senior minister and the charity’s interest in this property was measured at fair value. This property was sold in the previous year.

g. Stock

Stock is valued at the lower of cost and net realisable value.

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Grace Church Dulwich

Notes forming part of the Financial Statements for the year ending 31 August 2023

The company makes contributions to a defined benefit scheme for its Senior Minister and operates a defined contribution pension scheme for its other employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises (see note 18 ‘Pension contributions’ for further information). The assets of these schemes are held separately from those of the company in independently administered funds.

j. Taxation

The company is a registered charity; it has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.

The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).

The company has taken advantage of an exemption conferred by the Charities SORP and has not prepared a cash flow statement.

The directors do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.

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Grace Church Dulwich

Notes forming part of the Financial Statements for the year ending 31 August 2023

2 Income from donations

2023 2022
£ £
Monetary donations upon which 230,590 309,650
income tax was reclaimable (and
including this tax)
Other monetary donations 67,325 81,698
297,915 391,348

During the year the charity received donations totalling £25,750 (2022: £29,775) from related parties (which includes the trustees, any other members of key management and anyone closely connected to them).

3 Income from charitable activities

ncome from charitable activities
Bookstall sales
Contributions to the cost of events		 2023
£
339
6,783
7,122		 2022
£
-
5,716
5,716

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Grace Church Dulwich

Notes forming part of the Financial Statements for the year ending 31 August 2023

4 Grant payments

Grants to organisations to support
UK and overseas mission:
Holy Redeemer Streatham
(£4,000 of this through the
Southwark Good Steward
Trust)
Crosslinks (re a family working
in Naples)
Crosslinks (re a church worker in
Eire)
Grace Baptist Mission (re
Proclamation Institute Zambia)
Crosslinks central support
Crosslinks (re Christ Central
Soweto)
Southwark diocese support
Lakeview camp		 2023
£
6,000
5,750
6,000
2,000
-
4,000
2,000
594
______
26,344
 2022
£
6,000
5,750
6,000
4,000
313
4,000
1,200
270
______
27,533
5
Activities relating directly to the church
2023
£
Staff salary and directly related
costs
134,150
Staff accommodation costs
89,379
Venue related costs
26,742
Other ministry costs
28,193
Other costs
3,646
Cost of items sold on the bookstall
913

283,023

6
Governance costs
2023
£
Legal, accountancy and corporate
fees and insurance
4,911		 2022
£
107,169
99,037
29,629
11,238
3,166
63
250,302
2022
£
4,788

13

Grace Church Dulwich

Notes forming part of the Financial Statements for the year ending 31 August 2023

7

Net Incoming Resources for the Period
This is stated after charging: Year ending 31 Year ending 31
August 2023 August 2022
£ £
Depreciation 0 0
Independent examiner’s fee 2,000 2,000

In addition to the above fee for examining the accounts, the company paid Stewardship £906 (2022: £780) for payroll bureau services.

8 Staff costs and trustee remuneration

Staff costs were as follows:

taff costs and trustee remuneration
taff costs were as follows:
Year ending 31 Year ending 31
August 2023 August 2022
£ £
Salaries and wages 108,971 86,180
Social security costs 3,071 2,582
Employers pension contributions 22,108 18,564
Other (157)
Total 134,150
 107,169

Excluding the Senior Minister (who was not employed directly by the charity) the average monthly number of employees during the year was 4 (2022: 4); this equates to 3.1 (2022: 2.5) full time equivalent staff. Most of the charity's activities are carried out by volunteers.

The company’s key management comprise its directors. Total employment benefits payable to key management for the year were as follows:

Wages and Employer
salaries pension Total
contributions
To Rev. S Dowdy, who is a trustee:
In the year ended 31 August 2023 27,436 10,023 37,459
In the year ended 31 August 2022 27,342 9,883 37,225

In addition the charity incurred expenditure totalling £41,973 (2022: £41,279) in respect of the customary provision of accommodation to the Senior Minister so that he could better perform his duties.

Rev. S Dowdy serves as the charity’s Senior Minister and received the above payments for serving in that capacity, not for serving as a trustee; these payments are permitted by the charity’s governing document.

No other trustees received employment benefits in either the current or preceding year. No staff received salaries at a rate of more than £60,000 per annum.

Except for the reimbursement of expenses incurred when acting as agent for the charity, or incurred when undertaking employment and clergy duties, no expenses were paid to (or for) the trustees.

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Grace Church Dulwich

Notes forming part of the Financial Statements for the year ending 31 August 2023

9 Related party transactions

During the year:

Subsequent to the end of the year Mr A Neden was appointed a director of Kingdom Bank Plc. The interest paid to Kingdom Bank Plc of £31,771 is set out in the Statement of Financial Activities and the amounts owing to Kingdom Bank Plc in respect of the loan secured on the property held by the Charity is set out in Note 14.

10 Tangible Fixed Assets

ngible Fixed Assets
Residential Fixtures Computer Total
property and fittings software &
hardware
£ £ £ £
Cost
At 1 September 2022 892,735 11,850 2,711 907,296
Additions 4,780 - -
 4,780
At 31 August 2023 897,515 11,850 2,711
 912,076
Accumulated depreciation
At 1 September 2022 - 11,850 2,711 14,561
Charge for the year - - -
 -
At 31 August 2023 - 11,850 2,711
 14,561
Net book value at 31 August 2023 897,515 - - 897,515
Net book value at 31 August 2022 892,735 - - 892,735

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Grace Church Dulwich

Notes forming part of the Financial Statements for the year ending 31 August 2023

11 Social investments
Residential property
2023 2022
£ £
Valuation/Cost brought forward - 125,000
Gain on valuation at fair value - -
Disposal - (125,000)
Valuation carried forward - -
The social investment referred to above comprised a 15.38% interest in a residential property
at 20 Barriedale, London, which was acquired in 2012. The investment was made to help fund
the provision of accommodation to the senior minister of Grace Church Brockley; it was sold
in January 2022.
12 Stock
2023 2022
£ £
Books for resale -
 521
13 Debtors
2023 2022
£ £
Income tax recoverable 21,409 61,930
Other debtors 16,088 5,642
Prepayments 1,646 1,406
39,143 68,978
14 Creditors: Amounts Falling Due within One Year and After one year
2023 2022
Amounts falling due within one year £ £
Repayments on loan from Kingdom Bank 8,900 11,191
Trade creditors - -
Taxation and social security costs - -
Accruals 7,108
 16,337
16,008
 27,528
Amounts falling due after one year £ £
Repayments on loan from Kingdom Bank 594,335
 600,241

16

Grace Church Dulwich

Notes forming part of the Financial Statements for the year ending 31 August 2023

The loan from Kingdom Bank is secured against the property in Pymer’s Mead, currently at a rate of 5.85%. It is repayable by monthly instalments over a term of 30 years from August 2022. Of the amount owed, £8,900 (2022: £11,191) falls due for repayment within one year, £42,586 (2022: £40,887) falls due between one and five years, and the balance of £551,749 (2022: £559,354) falls due over the remaining 23 year term of the loan.

15 Movements in funds

Movements in funds
At 1 Incoming Outgoing At 31
September Resources Resources August 2023
2022
£ £ £ £
Total funds – all 419,184 305,571 346,049 378,706
unrestricted
In the previous year the movements on the charity’s funds were as follows
At 1 Incoming Outgoing At 31
September Resources Resources August 2022
2021
£ £ £ £
Total funds – all 304,222 399,585 284,623 419,184
unrestricted

As at 31 August 2023 and 31 August 2022 all of the company’s assets and liabilities were in respect of unrestricted funds.

16 Operating lease commitments

The company has entered into operating leases on certain properties. Commitments for future minimum rental payments are shown below:

inimum rental payments are shown below:
2023 2022
£ £
Payments falling due:
Within one year 52,800 72,800
Between one and five years 36,000 27,000

17 Pension contributions

The Senior Minister was employed by another charitable enterprise and the company made payments to this charitable enterprise for a share of his services. These payments included contributions to the Church of England Funded Pensions Scheme, which is a multi-employer defined benefits pension scheme. The company may have a constructive obligation to make contributions towards any funding deficit reported by this scheme however the company is unable to determine the extent of this obligation (if any) and the pension scheme has been treated as if it were a defined contribution scheme. The following pension contributions have been charged to the Statement of Financial Activities:

17

Grace Church Dulwich

Notes forming part of the Financial Statements for the year ending 31 August 2023

2023 2022
£ £
Church of England Funded Pensions Scheme for Senior 10,023 9,883
Minister
Defined contribution scheme for other employees 12,085
 8,681
22,108
 18,564

18