Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
Company registration number: 05947463 Charity registration number: 1119562
## Heart Church
(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2024
Page Kirk LLP Chartered accountants and statutory auditors Sherwood House 7 Gregory Boulevard Nottingham NG7 6LB
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Senior Leader's statement|2|
|Trustees' Report|3 to 14|
|Independent Auditors' Report|15 to 19|
|Consolidated Statement of Financial Activities|20 to 21|
|Consolidated Balance Sheet|22|
|Balance Sheet|23|
|Consolidated Statement of Cash Flows|24|
|Notes to the Financial Statements|25 to 59|
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Reference and Administrative Details**
|**Trustees**|Miss S Abel|
|---|---|
||Mr M W Baxter|
||Mr G A Bowen|
||Mr A M Dickin|
||Mr N C Gale|
||Mr M Jones|
||Mr B M Kakimpa|
||Mrs F I Ojambati|
||Mrs D Maisiri|
||Mrs O O Shonde|
|**Secretary**|Mrs J Wallington-Jones|
|**Charity Registration Number**|1119562|
|**Company Registration Number**|05947463|
|**Registered Office**|104-114 Talbot Street|
||Nottingham|
||NG1 5GL|
||The charity is incorporated in England and Wales.|
|**Auditor**|Page Kirk LLP|
||Chartered accountants and statutory auditors|
||Sherwood House|
||7 Gregory Boulevard|
||Nottingham|
||NG7 6LB|
|**Solicitors**|Bates Wells|
||10 Queen Street Place|
||London|
||EC4R 1BE|
|**Bankers**|Natwest|
||Smiths Bank Branch|
||16 South Parade|
||Nottingham|
||NG1 2JX|
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Senior Leader's statement**
This report commences where the 2023 report concluded, with the announcement of approximately 13 million pounds received through the sale of land. The gratitude continues to resonate as we endeavour to implement a plan and utilise this revenue to benefit future generations through investing in a building.
As we currently lease the Kings Meadow Campus, where our Sunday services are held, securing our own venue would be a significant aspiration. Operating church services as we do, presents substantial challenges, particularly when you consider it is a rented space. Consequently, we are actively exploring potential opportunities to acquire a building, whilst simultaneously grappling with the complexities of finding the right thing in the right location. We remain optimistic that our efforts will be fruitful.
Each year, we host a Vision Sunday, which facilitates the congregation’s reengagement with our church vision and provides a focal point for the ensuing year. This year’s theme was “Is there not a cause?” This concept originated from an Old Testament quote attributed to the young David prior to his encounter with Goliath. Our mission is to witness individuals undergo transformative experiences through the transformative power of the gospel. We do not merely seek to introduce religion to people; rather, we aspire to align them with God’s optimal plan for their lives.
Following our “Go, Sow, Grow” theme of the previous year, the steady, post-covid recovery in numbers, meant that it was necessary to implement a second service. Prior to this we were seeing significant numbers having a substandard experience in an overflow room. Whilst the first service is initially smaller we are anticipating growing, whilst simultaneously alleviating pressure on the second (and more popular) service.
Later in this report, you will find details of our initiative, ‘Generous June’, which obviously took place during the month of June. This program provided teaching and opportunities for individuals to demonstrate generosity in practical ways. We were immensely gratified by the congregation’s response, which ultimately resulted in an offering of thousands of pounds being raised to alleviate child hunger within the City of Nottingham.
Having dedicated significant time, energy, and effort to the Christmas Spectacular in previous years, we made the decision this year to present a scaled-down version in December. This proved to be an astute choice, alleviating the strain on both our employed and volunteer creative and media team members. Notably, we have recently witnessed a number of singers and musicians (as is the natural course of life) transition away from Heart Church. We believed that to attempt to replicate our usual standard with a diminished team could have had a detrimental impact on morale and potentially deterred individuals from participating in future projects. All things considered, we were able to deliver a remarkable and well-attended day of Christmas services.
Overall, it has been an encouraging year, with the church continuing to strengthen and grow on a weekly basis. We have so much to be grateful for.
Malcolm Baxter Senior Leader
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 December 2024.
## **Trustees and Officers**
The trustees and officers serving during the year and since the year end were as follows:
|Trustees:|Miss S Abel|
|---|---|
||Mr M W Baxter|
||Mr G A Bowen|
||Mr A M Dickin|
||Mr N C Gale|
||Mr M Jones|
||Mr B M Kakimpa|
||Mrs F I Ojambati|
||Mrs D Maisiri|
||Mrs O O Shonde|
|Secretary:|Mrs J Wallington-Jones|
## **Structure, governance and management**
## _**Nature of governing document**_
Heart Church (“the Church”) is a charitable company and is also registered as a charity. 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. New Memorandum and Articles of Association were adopted on 25 April 2018 and were updated on 31 July 2019.
## _**Recruitment and appointment of trustees**_
The Elders and current Trustees of the Church identify suitable candidates who are invited to serve as Trustees. Suitability would be based, primarily, on commitment to Heart Church, demonstrated by membership, regular attendance and a high degree of involvement. Potential candidates are not appointed as Trustees due to any particular professional competence that they may be able to bring although this is identified by means of a skills matrix within the Charity’s risk management strategy and utilised as appropriate.
The current trustees give consideration to equality, diversity and inclusion when inviting new trustees.
## _**Induction and training of trustees**_
New trustees are provided with appropriate documents including the Memorandum of Association, accounts and budgets, conflict of interest policy and form and various other Charity Commission guidance documents.
The Chair of trustees and Finance Manager meet new trustees to brief them on current matters within the charity and trustees are invited to attend various staff training sessions.
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
## _**Arrangements for setting key management personnel remuneration**_
All staff are subject to the same performance related pay process. The results of these processes are ratified by a Salaries Committee delegated by the board of trustees. Malcolm Baxter’s pay award is set by this independent committee.
## _**Organisational structure**_
The oversight and governance of the Church is vested in the board of trustees comprising the Senior Leader together with duly appointed or elected individuals from the Church. Spiritual oversight of the Church and its activities is vested in an Eldership.
Strategy and management of Heart Church is delegated to the Leadership Team under the direction of the Senior Leader.
## _**Relationships with related parties**_
## **73rd Trust**
73rd Trust engages the unchurched through relevant communication of the Gospel. Heart Church and 73rd Trust share a trustee (Nigel Gale) who declares a conflict of interest at Heart Church board meetings, if appropriate. 73rd Trust’s primary employee, Mark Ritchie, served as an elder of Heart Church until December 2022.
## _**Risk management**_
The Trustees actively review the major risks which Heart Church faces on a regular basis, in particular those relating to its operations and finances. They are satisfied that systems are in place to mitigate Heart Church’s exposure to the major risks. The Trustees’ formal risk management strategy comprises: -
• an annual review of the risks which Heart Church may face;
• the adequacy of current systems and procedures to mitigate those risks identified in the strategy; and
• the implementation of procedures designed to minimise any potential risk on Heart Church should any of those risks materialise.
The strategy is reviewed and discussed at Operations meetings and then reported to the board of trustees.
Key controls used by Heart Church include:
- formal agendas for all Board of Trustees activity;
- key person insurance;
- strategic planning, budgeting and management accounting;
- formal written policies;
- clear authorisation and appraisal levels; and
- vetting principles as required by law for the protection of the vulnerable.
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
## _**Tax status**_
Heart Church is a registered charity (No. 1119562) and is exempt from corporation tax. It has two subsidiaries:
• T Land Limited is a registered company (No. 06325433) and is registered for corporation tax. • T Street Limited is a registered dormant company (No. 04757373) and is exempt from corporation tax.
## **Objectives and activities**
## _**Objects and aims**_
The objectives of Heart Church continue as they have for decades, to proclaim the good news of Jesus Christ; to help believers develop in their faith and fulfil their potential and to reach out to the marginalised in our society, regardless of their circumstances. These aims are formally stated within the Memorandum of Association in that:-
The objects of the charity are for the benefit of the public:
- to advance the Christian faith in accordance with the Statement in such ways and in such parts of the United Kingdom or the world as the directors from time to time may think fit:
- to relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind including through the provision of counselling and support in such parts of the United Kingdom or the world as the directors from time to time think fit: and - to advance education in such ways and in such parts of the United Kingdom or the world as the directors from time to time may think fit.
## _**Public benefit**_
The section of this report above entitled objectives and activities sets out the aims and priorities of the trust.
The Trustees have considered this matter, in conjunction with the guidance contained in the Charity Commission’s general guidance on public benefit together with the more specific guidance provided by their publication The Advancement of Religion for the Public Benefit, and have concluded:
1. That the aims of the organisation continue to be charitable; 2. That the aims and work done give identifiable benefits to the charitable sector and both indirectly and directly to individuals in need;
3. That the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay; and
4. That there is no detriment or harm arising from the aims or activities.
A more detailed explanation of how the Trustees believe that they have discharged their responsibilities to deliver a public benefit is included in the Achievements and Performance section below.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
## _**Grant making policies**_
During the year Heart Church awarded gifts and donations totalling £51,594 (2023: £40,822). Heart Church’s policy is to make gifts of this nature to individuals and organisations which further the objectives of Heart Church and each request is reviewed by the Trustees on this basis.
## **Achievements and performance**
## _**Sunday Services**_
Sunday Services continued to play a key role in the life of our church activities at Heart Church through 2024. These were opportunities for the church to gather for public worship, teaching, preaching, evangelism, and community - from birth to seniors, with a congregation from diverse backgrounds.
In 2024, we continued to hold the majority of our Sunday services in King’s Meadow Campus (KMC) - a campus of the University of Nottingham, with some services held at the Albert Hall in the city centre when KMC was unavailable for hire, and a pre-recorded online service when neither of the venues were available. We continued to work hard to maintain a healthy rhythm for the staff and volunteers who set up and set down each week and made church happen across rented accommodation.
Throughout the year, we focused on several different preaching and teaching series, including: ●King David
- ●Vision Series
- ●Fruit of the Spirit.
- ●Generous June
- ●Colossians
- ●Prophecy
- ●Christmas Series
We had our annual Vision Sunday where we focused on our overall vision for the year ahead. This year Vision Sunday was titled 'Is there not a Cause?'. We held Child and Baby Blessing services and Adult Baptism services. These services saw large numbers of guests coming along to visit.
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
## **HEART WOMEN**
The Heart Women team ran two events throughout the course of the year. In April, 200 women gathered for worship and to hear a guest speaker. The theme of the evening was ‘Illuminate’, where women were encouraged to impact their environments. In October 135 women came together for Saturday morning breakfast where they also shared communion with each other and worshipped together.
## **LITTLE HEARTS**
In January 2024, The Leadership Team took the decision to withdraw our involvement with Little Hearts parent and toddler group. It was agreed to hand over the group to the Vicar at St. Ann with Emmanuel Church, which is where the group has been meeting for the past 6 years. The main reasons were due to lack of interest from Heart Church families to attend, even following conversations with them and the complexities of leading a non Heart Church team that didn’t always understand the vision of Heart Church. We gave a term’s notice to the team and were able to bless the group by buying them a new Sum up machine, donating a healthy amount of petty cash along with all the toys and resources we had built up over the years. Our involvement ended at Easter 2024.
## **ADVENTURE KIDS**
Throughout 2024, Adventure Kids had an average attendance of 92 children a week. The highest attendance was in March, with a weekly average of 112. Going to two services has massively increased our capacity although we often reach capacity in our Primary aged room in our second service.
Throughout the year we have taught the children what is being spoken about in the main service. This created cohesion and consistency throughout Church life and has worked well. Throughout the year we ran series on: Vision, David, Colossians, Prophecy and the fruit of the Spirit. We had a great Vision Sunday together as Adventure Kids. We delivered the vision of ‘Is there not a cause’ in a way that was engaging, accessible, and fun for the children. We then looked at each of the points of the vision in more detail throughout the year. They made a mini flag to take home which replicated the creative aspect from the main service. Throughout the year we have explored creative response activities for the children to do most weeks, this helps them to remember what we have learned and allows them to spend time reflecting on what they have learned at the end of every session.
Heart Nottingham Sunday was a powerful week in Adventure Kids. We made activity packs for the children where they learned about being Jesus’s hands and feet to the people in their lives.
We had three Adventure Kids Wide events, and we had over 50 children join us during the Summer Holidays at City Site for an afternoon of fun. There were three themes; cinema, sports/games, and summer party. This worked well and there was something for everyone to enjoy. We also did a ‘Let’s Get Together’ run by a family in the Church where families met at a park for an afternoon together.
We had 25 new people join the Adventure Kids team across the year. This growth has been incredible and necessary in order to facilitate two morning services. 22 children moved up to youth in September. Working closely with the youth team, we made some changes to help the young people with this transition, it was great to see them settling into youth so quickly.
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
## **HEART YOUTH**
Heart Youth has continued to grow throughout the year. There is a good core of young people who are not only regular attendees at Heart Youth but who are demonstrably growing in their faith. As well as following their pattern of Collectives, Counter cultural and Cultivate evenings,other highlights from 2024 would be:
●Heart Youth Collective Conference held in February. Just under 150 young people gathered on a Saturday for worship, fun and teaching from two guest speakers. ●Heart Youth supported Heart Nottingham in running a successful youth festival as part of Heart Week.
●55 young people went away for Heart Youth Summer Collective. They went and stayed at a youth hostel in Eyam for 2 nights which was a cost effective way of going to something different. Celie Townsend left her post as Youth Pastor at the end of August. Throughout the autumn term, the job was advertised and although interviews were held, no appointment was made. The Leadership Team sought to bring support and stability to the team of leaders throughout the winter term, with one of the best attended nights of the year being the Bonfire Party.
## **HEART NOTTINGHAM**
Heart Nottingham exists to outwork Heart Church’s passion to bless and serve the city of Nottingham through social action and engagement. Heart Nottingham had a full programme of activities for 2024.
## **Easter**
We gave 100 food hampers for premium pupil families at Greenfield Community School. With a team of volunteers, we hosted an evening’s entertainment and served a healthy meal for the Emmanuel House Winter Night Shelter. Other volunteers went and led an Easter Service at Melbourne House.
## **Heart Week**
Heart Week was a great success and included more events than the last few years. It was a phenomenal week where we impacted our community through various activities - including spending the day in St Ann’s where we hosted a Community Family Fun day and Youth Festival - over 200 children and young people attended across the day. For the first time we attended HMP Foston Hall and lead a chapel service. We also engaged with refugees and asylum seekers, taking over 48 parents and children to White Post Farm for an enjoyable day out. Each family was provided with a picnic lunch which a team of volunteers had prepared.
## **Christmas**
We had volunteer teams lead Christmas services at Melbourne House and HMP Foston Hall. We prepared and gave 20 bespoke family food hampers, including gifts for the children to families supported by Women’s aid Nottingham. For Jericho Road, we gave 8 toiletry gift sets, chocolates and drinks for them to incorporate into the hampers they were giving to the women they support. We gave £100 to Open Homes Big Give appeal and 10 x £30 Tesco vouchers to Safe Families for them to distribute appropriately. Our Christmas season ended with running the Christmas party at Emmanuel House where a Christmas dinner was served along with karaoke christmas carols! Each attendee was given a small gift of handwarmers and chocolates.
Throughout 2024, other activities run by Heart Nottingham included: ●An appeal for sleeping bags which were then given to Emmanuel House. ●Monthly meals at Emmanuel House prepared and served by volunteers. ●£400 given to a family from Sneinton CofE school to support them after their property became damaged.
●Volunteers supporting the annual reading day at Sneinton CofE Primary. ●At Greenfield Community School, we paid for baking ingredients throughout the year and replenished play sand and bark for their outdoor space that we had renovated in Heart Week 2023.
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
## **From The Heart Offerings (FTHO)**
Throughout 2024 Heart Nottingham ran two financial appeals which were open to Heart Church congregation members and are detailed below.
## **1. FTHO Generous June**
We set a target of £4,000 as we had become aware of a need at Sneinton C of E Primary school. This amount is what they needed in order to fund their breakfast club for the 2024/25 academic year. The generosity of the congregation was incredible and £21,186.07 was given. We followed due process with Heart Church Trustees and Charity Commission as to how we distribute the excess money to the target we set. In summary, all monies have to go towards providing food for vulnerable children. The breakdown is as follows:
School / Organisation - Amount given: Sneinton Cof E Primary - £4,134.00 Greenfields Community School - £750.00 Dunkirk Primary School - £4,000.00 Hempshill Hall Primary School - £4,000.00 St. Stephens Church, Sneinton - £1,000.00
We are still in process of distributing the remaining £7,302.00 in accordance with agreed guidelines.
## **2. Christmas From the Heart Offering (FTHO)**
The nominated recipient for this offering was Ducklings, the charity of the Nottingham Children’s Hospital School at QMC. £2394.91 was raised. This was presented to the charity on 20/01/25 who were delighted as this is over half of their annual target to raise.
## **Volunteer promotion update**
We continue to encourage our church family to sign up as volunteers for our Partner charities and a concerted effort to promote this has been a focus across the year. This has been through Heart Nottingham Sundays and regular Heart Nottingham communication through Heartbeat Mail.
**Emmanuel House** - Disappointingly of the 7 expressions of interest made, only 1 person followed through on their application and has joined team.
**Jericho Road** - Of the 5 individuals who expressed an interest, 2 formally applied to become volunteers.
**Refugee Roots** - We have 1 fully signed up volunteer who is supporting as a Befriender. **Safe Families** - 4 new volunteers signed up during 2024. **100 Homes** - 1 individual has signed up and is going through the process to become a Foster Carer.
## **PASTORAL MINISTRY**
There was significant pastoral activity during the year, whether supporting those planning to be married, those who were ill or bereaved, or enabling and supporting members of Heart Church to develop healthy lives, spiritually and otherwise.
## **Sunday Pastoral Team**
The immediate point of contact for those facing life challenges (who approach us for prayer or counsel following a Sunday Service) is often the Sunday Pastoral Team - providing a “front door”, a source of immediate pastoral response, triage, and a signposting service to those attending Sunday Services who might require deeper pastoral intervention or could have their needs met within one of our scheduled pastoral activities. There are currently 24 people on this team. A ’prayer and signposting’ card system has been introduced and team members use the ‘get involved’ section of the website to good effect to help people find their next steps.
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
The Care and Support Pastor role includes ongoing leadership of this team and some team members continue to become involved in midweek pastoral activity under her supervision.
## **Integration**
Our Connect Team continues to be the first point of contact for the majority of new people on a Sunday, as an increasing number of new people find their way to Heart Church every week. This team has been strengthened and has encouraged the congregation and other team members also to take responsibility for welcoming newcomers and helping them connect. During the year, 360 people let us know they were new to Heart Church. A great deal of effort has been expended by pastoral team members, on Sundays and midweek, to help these people find their place in the Heart Church community. The Growth Track course was a particular success in terms of integrating many of those people into Heart Church. Of these 360 new people, 75 have completed a Growth Track course (of the 100 who attended Growth Track in the year) and 94 have joined a Life Group or a team.
## **Parents Room Team**
This room is staffed by a team of 6 volunteers who facilitate peer support and can access wider church resources should they be required during Sunday services. A team member is allocated to all expectant families to offer practical and spiritual support and this team has also further developed the pre-existing meal rota making sure that each family with a new baby receives a minimum of 7 cooked meals delivered to their home by team members (either life group, serving team or parents room team members). This has been provided to 20 families this year and continues to be a useful point of contact as well as ongoing support.
## **Life Groups**
The development of this area of ministry remains a priority to ensure connection, care and devotional engagement across the Church.
## **Courses**
Much of the pastoral effort expended has been in enabling congregants to develop personal skills, knowledge, and practices to allow them to flourish as Christians, in whatever context or life stage they find themselves, through courses and coaching relationships. In the year there were 324 attendees on such courses:
- ●Growth Track: 100 (5 courses)
- ●Freedom in Christ: 48 (2 courses)
- ●Alpha Course: 40 (2 courses)
- ●The Parenting Course: 8 (1 course)
- ●The Marriage Course: 28 (2 courses)
- ●Marriage Prepare/Enrich: 9 couples
- ●The Story of the Scriptures: 37 (1 course)
- ●Soul Focus: 109 (1 Course)
- ●Introduction to Effective Job Search:10 (2 Courses)
- ●Baptism Course: 58 (3 Courses)
## **Young Adults**
Young Adults continue to make up a significant portion of our congregation, with 49% of the adults in our database aged between 18 and 30. In 2024, we have continued to see an increase in the number of students attending our services, primarily at the 11:30 service. Many Young Adults are actively engaged in church life, serving on teams, participating in Life Groups, and taking part in our courses. However, a considerable number still attend passively, slipping in and out without integration.
This year, we have continued to build upon the structures and rhythms established in 2023 and 2022. Our primary focus remains on creating opportunities for Young Adults to foster community and engage in age-specific discipleship. Beyond this, we focus on encouraging their involvement in the wider church and the wider opportunities for discipleship, connection and support.
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
## Young Adults Hangs:
Since moving our Hangs to Kings Meadow Campus rather than in town attendance has significantly increased, with a consistently high number of new attendees. These gatherings take place regularly during student term after the 11:30 service. In 2024, attendance has consistently reached at least 60, often nearing 100. However, the capacity of our space in 2024 limited us to comfortably accommodating 60 people, which resulted in some YAs leaving due to overcrowding.
## Young Adults Nights:
We have continued to host Young Adults Nights once or twice a term. The purpose of these evenings is to provide a space for Young Adults to engage with relevant topics as Christ-followers. These sessions typically include a panel discussion, small group conversations, and ministry time. The discussions that take place in these settings are always particularly fruitful. Attendance at these nights has ranged between 70 and 100 Young Adults.
In 2024, we explored the following topics:
- ●Friendships
- ●Hearing the Voice of God
- ●Who I Am in Christ
- ●Rhythms of Private Devotion
- ●Community
## Students:
This year, we hosted one student lunch during the autumn term. Student lunches are consistently well-attended and serve as an excellent way to welcome students while sharing how they can get involved at Heart Church. As in previous years, demand exceeded capacity, with sign-ups reaching the limit of 175 before the event.
Beyond this event, we encourage students to engage in our Young Adults events, and in 2024, we have seen an increasing number of students participating in these gatherings. In 2024 we were invited to speak at both the University of Nottingham (UON) and Nottingham Trent University (NTU) Christian Unions. Additionally, we supported their evangelistic events week and attended their Church Search Fair in the autumn term. This year, we have continued to strengthen relationships with other churches and student networks across the city and nation, including Fusion, UCCF, LICC, and student workers from Grace Church, Trent Vineyard, Trinity, and St Nics. These connections help us stay engaged with the wider student and young adult ministry landscape, fostering collaboration and shared learning opportunities.
## **Hospitality**
The process of revisiting Heart Church's vision for hospitality has continued, putting some clearer definitions and expectations to hospitality across all areas of church engagement with congregants and team members, resourcing appropriately and clearly. There has been an increase in team numbers, team leadership, and team focus, largely necessitated by the need to provide refreshments for all team members between our Sunday Services when we increased from one to two services in order to accommodate demand. During the year the team provided hospitality across many departments and courses including Baptisms, Alpha, Freedom in Christ, Nottingham City Prayer, Leadership days, Trustee meetings, Staff meetings, and all Sunday-based activities.
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
## **Financial instruments**
## _**Objectives and policies**_
The group's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the group’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The group does not use derivative financial instruments for speculative purposes.
## _**Cash flow risk**_
The group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The group uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.
## _**Credit risk**_
The group’s principal financial assets are bank balances and cash, trade and other receivables, and investments.
The group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
## _**Liquidity risk**_
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixture of long-term and short-term debt finance. Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
## **Financial review**
## _**Policy on reserves**_
The management committee have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets (‘the free reserves’) held by Heart Church should be between 3 and 6 months of the resources expended, which equates to £250,000 to £500,000 in general funds. At this level, the management committee feel that they would be able to continue the current activities of Heart Church in the event of a significant drop in funding. It would obviously be necessary to consider how the funding would be replaced or activities changed. At 31 December 2024, Heart Church held free reserves of £13,601,921 (2023: £927,775) and so the target level has been met.
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Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
## _**Investment policy and objectives**_
The trustees have the power to invest in such assets as they see fit. Heart Church has a policy of keeping any surplus liquid funds in fixed and notice products. These deposits are arranged such that some funds can be accessed at reasonably short notice.
The trustees consider the provisions of CC14 Charities and investment matters: a guide for trustees and structure their investment policy accordingly.
Having calculated forthcoming cashflow requirements, the trustees primarily invest in a range of products via two online cash management platforms and via their principal bankers. These funds are invested for a maximum of 12 months. The trustees also keep some funds available in deposit accounts with its principal banker.
## **FUTURE PLANS**
Our focus for 2025 is twofold.
Firstly, we are actively exploring options for establishing a permanent new home for Heart Church, whether through the repurposing of an existing building or the development of a new facility.
Secondly, we will be marking a significant milestone in September as we celebrate 10 years since the launch of Heart Church. This will be a time of reflection on God’s faithfulness over the past decade, as well as a moment to cast vision and prepare for the opportunities and growth of the next ten years.
Page 13
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Trustees' Report**
## **Statement of Responsibilities**
The trustees (who are also the directors of Heart Church for the purposes 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the parent charitable company and the group and of the incoming resources and application of resources, including its income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards, comprising FRS 102 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 parent charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the parent charitable company and the group 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 parent charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Disclosure of information to auditor**
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
## **Reappointment of auditor**
Page Kirk LLP have indicated their willingness to be reappointed for another term. In accordance with the Companies Act 2006 a resolution proposing the appointment of Page Kirk LLP as auditor will be put to the members.
The annual report was approved by the trustees of the charity on 23 September 2025 and signed on its behalf by:
Signed by: Ftd ......................................... 57D19720858545A...Dickiv Mr A M Dickin Trustee
Page 14
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Independent Auditor's Report to the Members of Heart Church**
## **Opinion**
We have audited the financial statements of Heart Church (the 'charitable parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group's and parent charity's affairs as at 31 December 2024 and of its incoming resources and application of resources, including its income and expenditure, 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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.
## **Key audit matters**
In 2023 it was determined that the land at Toton, which had been transferred to T Land Limited from its parent charity Heart Church in 2010, should be transferred back to Heart Church as the initial transfer had not been correctly performed in line with the Charity Commission's guidance. Therefore the investment was disposed of in T Land Limited and transferred to the parent charity via the inter-company loan balance.
Page 15
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Independent Auditor's Report to the Members of Heart Church**
## **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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
## **Opinion on other matter prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the and Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the and Trustees' Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the and the Trustees' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company 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.
Page 16
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Independent Auditor's Report to the Members of Heart Church**
## **Responsibilities of trustees**
As explained more fully in the Statement of Responsibilities (set out on page 14), the trustees 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 charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Taxation legislation, COVID - furlough income and Money Laundering.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included:
- Enquiries of management about their own identification and assessment of the risks of irregularities.
- Sample testing on the posting of journals.
- Reviewing meeting minutes, regulatory correspondence and professional fees.
- Detailed substantive testing on the completeness of income.
Page 17
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Independent Auditor's Report to the Members of Heart Church**
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Page 18
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Independent Auditor's Report to the Members of Heart Church**
## **Use of our report**
This report is made solely to the charitable parent company's trustees, 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 group's trustees those matters we are required to state to them in an auditor’s 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 parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
> ...................................... ZZDE9D310D1AD349C. James Haywood ACA (Senior Statutory Auditor) For and on behalf of Page Kirk LLP, Statutory Auditor
Sherwood House 7 Gregory Boulevard Nottingham NG7 6LB
23 September 2025
Page 19
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Consolidated Statement of Financial Activities for the Year Ended 31 December 2024 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Investment income
5
Total income
**Expenditure on:**
Charitable activities
7
Total expenditure
Net (expenditure)/income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
20|**Unrestricted**
**funds**
**£**
1,046,342
35,245
157,926
1,239,513
(1,700,134)
(1,700,134)
(460,621)
(460,621)
15,045,473
14,584,852|**Restricted**
**funds**
**£**
48,836
20
-
48,856
(41,807)
(41,807)
7,049
7,049
329,591
336,640|**Total**
**2024**
**£**
1,095,178
35,265
157,926|
|---|---|---|---|
||||1,288,369|
||||(1,741,941)|
||||(1,741,941)|
||||(453,572)|
||||(453,572)
15,375,064|
||||14,921,492|
The notes on pages 25 to 59 form an integral part of these financial statements. Page 20
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Consolidated Statement of Financial Activities for the Year Ended 31 December 2024 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Investment income
5
Total income
**Expenditure on:**
Charitable activities
7
Total expenditure
Gains/losses on investment assets
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
20|**Unrestricted**
**funds**
**£**
1,102,638
31,581
46,029
1,180,248
(1,406,563)
(1,406,563)
12,241,038
12,014,723
12,014,723
3,030,750
15,045,473|**Restricted**
**funds**
**£**
41,113
-
-
41,113
(33,385)
(33,385)
-
7,728
7,728
321,863
329,591|**Total**
**2023**
**£**
1,143,751
31,581
46,029|
|---|---|---|---|
||||1,221,361|
||||(1,439,948)|
||||(1,439,948)
12,241,038|
||||12,022,451|
||||12,022,451
3,352,613|
||||15,375,064|
All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2023 is shown in note 20.
The notes on pages 25 to 59 form an integral part of these financial statements. Page 21
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **(Registration number: 05947463) Consolidated Balance Sheet as at 31 December 2024**
|||**2024**|**2023**|
|---|---|---|---|
||**Note**|**£**|**£**|
|**Fixed assets**||||
|Tangible assets|12|868,267|933,557|
|Investments|13|-|23,517,000|
|||868,267|24,450,557|
|**Current assets**||||
|Debtors|14|13,891,205|84,384|
|Cash at bank and in hand|15|6,510,920|1,290,610|
|||20,402,125|1,374,994|
|**Creditors: Amounts falling due within one year**|16|(70,186)|(4,157,038)|
|**Net current assets/(liabilities)**||20,331,939|(2,782,044)|
|**Total assets less current liabilities**||21,200,206|21,668,513|
|**Creditors: Amounts falling due after more than one year**|17|(6,177,807)|(6,177,807)|
|**Provisions**|18|(100,907)|(115,642)|
|**Net assets**||14,921,492|15,375,064|
|**Funds of the group:**||||
|**Restricted income funds**||||
|Restricted funds|20|336,640|329,591|
|**Unrestricted income funds**||||
|Unrestricted funds||14,584,852|2,010,570|
|Revaluation reserve||-|13,034,903|
|Total unrestricted funds||14,584,852|15,045,473|
|**Total funds**|20|14,921,492|15,375,064|
The financial statements on pages 20 to 59 were approved by the trustees, and authorised for issue on 23 September 2025 and signed on their behalf by:
[ ......................................... A73522C90FED4OE...SignedAS by:[jee] Mr G A Bowen Trustee
......................................... 57D19720858545A... Mr A M Dickin Trustee
The notes on pages 25 to 59 form an integral part of these financial statements. Page 22
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **(Registration number: 05947463) Balance Sheet as at 31 December 2024**
|||**2024**|**2023**|
|---|---|---|---|
||**Note**|**£**|**£**|
|**Fixed assets**||||
|Tangible assets|12|868,267|933,557|
|Investments|13|1|23,517,001|
|||868,268|24,450,558|
|**Current assets**||||
|Debtors|14|13,899,456|84,384|
|Cash at bank and in hand|15|6,492,780|1,281,278|
|||20,392,236|1,365,662|
|**Creditors: Amounts falling due within one year**|16|(64,366)|(4,155,953)|
|**Net current assets/(liabilities)**||20,327,870|(2,790,291)|
|**Total assets less current liabilities**||21,196,138|21,660,267|
|**Creditors: Amounts falling due after more than one year**|17|(6,177,807)|(6,177,807)|
|**Provisions**|18|(100,907)|(115,642)|
|**Net assets**||14,917,424|15,366,818|
|**Funds of the charity:**||||
|**Restricted income funds**||||
|Restricted funds|20|336,640|329,591|
|**Unrestricted income funds**||||
|Unrestricted funds||14,580,784|2,092,324|
|Revaluation reserve||-|12,944,903|
|Total unrestricted funds||14,580,784|15,037,227|
|**Total funds**|20|14,917,424|15,366,818|
The financial statements on pages 20 to 59 were approved by the trustees, and authorised for issue on 23 September 2025 and signed on their behalf by:
[ ......................................... A73522C90FED4OE...SignedAS by:[jee] Mr G A Bowen Trustee
......................................... 57D19720858545A... Mr A M Dickin Trustee
The notes on pages 25 to 59 form an integral part of these financial statements. Page 23
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Consolidated Statement of Cash Flows for the Year Ended 31 December 2024**
|**Note**
**Cash flows from operating activities**
Net cash expenditure
**Adjustments to cash flows from non-cash items**
Depreciation
Investment income
5
**Working capital adjustments**
Increase in debtors
14
Decrease in creditors
16
Decrease in provisions
18
Net cash flows from operating activities
**Cash flows from investing activities**
Interest receivable and similar income
5
Purchase of tangible fixed assets
12
Sale of tangible fixed assets
Sale of investments
Net cash flows from investing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December|**2024**
**£**
(453,572)
78,845
(157,926)
(532,653)
(13,806,821)
(4,086,852)
(14,735)
(18,441,061)
157,926
(15,308)
1,753
23,517,000
23,661,371
5,220,310
1,290,610
6,510,920|**2023**
**£**
(218,587)
87,916
(46,029)|
|---|---|---|
|||(176,700)
(14,991)
(8,776)
(14,487)|
|||(214,954)|
|||46,029
(57,433)
10,490
-|
|||(914)|
|||(215,868)
1,506,478|
|||1,290,610|
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 25 to 59 form an integral part of these financial statements. Page 24
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **1 Charity status**
The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The address of its registered office is: 104-114 Talbot Street Nottingham NG1 5GL
These financial statements were authorised for issue by the trustees on 23 September 2025.
## **2 Accounting policies**
**Summary of significant accounting policies and key accounting estimates** The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
## **Basis of preparation**
Heart Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Basis of consolidation**
The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 December 2024.
No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a loss for the financial year of £449,394 (2023 - profit of £12,352,550)
Page 25
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.
## **Exemption from preparing a cash flow statement**
The charity has adopted to not disclose a charitable company cash flow statement in these financial statements as permitted by the small companies regime.
## **Going concern**
The trustees consider that there are no material uncertainties about the group's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the group.
Page 26
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **Judgements**
Investment land is stated at the director’s valuation within the financial statements. The valuation of the land has required the directors to make judgements on the range of indicative land values received. This is explained further in note 14. The carrying value of the investment land at the year end is £nil (2023: £23,517,000).
## **Income and endowments**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
## _**Donations and legacies**_
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## _**Grant provisions**_
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.
Page 27
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Tangible fixed assets**
Tangible fixed assets are initially recorded at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Fixed assets costing under £750 in value are not capitalised but treated as revenue expenditure in the year of purchase.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
|**Asset class**|**Depreciation method and rate**|
|---|---|
|Freehold property|2% to 10% straight line|
|Computer equipment|33 1/3% straight line|
|Fixtures and fittings|20% reducing balance|
|Plant and machinery|5 - 25% reducing balance|
|Motor vehicles|33 1/3% straight line|
## **Business combinations**
Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. In accordance with Section 35 of FRS 102, Section 19 of FRS 102 has not been applied in these financial statements in respect of business combinations effected prior to the date of transition.
## **Fixed asset investments**
Group investment land is included in the financial statements at fair value as determined by the directors. Any movement in the value of the land will be accounted through the Statement of financial activities.
Company shares in and loans to trading subsidiaries are included in the financial statements initially at cost and subsequently measured at cost less any accumulated impairment losses.
Page 28
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
## **Borrowings**
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
## **Provisions**
Provisions are recognised when the charity has an obligation at the reporting date 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.
Page 29
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **Foreign exchange**
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.
The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).
Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for:
1) exchange differences on transactions entered into to hedge certain foreign currency risks (see above);
2) exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and
3) in the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the group.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **Pensions and other post retirement obligations**
The group operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Page 30
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **Financial instruments**
## _**Classification**_
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
## _**Recognition and measurement**_
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the group transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the group, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Page 31
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## _**Debt instruments**_
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
## _**Investments**_
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
Page 32
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## _**Derivative financial instruments**_
The group uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The group does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
## _**Fair value measurement**_
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
## **3 Income from donations and legacies**
|Missions
General Tithes
Other gifts
Gift aid reclaimed|**Unrestricted funds**
**Designated**
**£**
**General**
**£**
-
-
-
859,837
1,691
-
-
184,814
1,691
1,044,651|**Restricted**
**funds**
**£**
24,559
-
24,277
-
48,836|**Total**
**2024**
**£**
24,559
859,837
25,968
184,814
1,095,178|**Total**
**2023**
**£**
27,256
903,818
14,487
198,190|
|---|---|---|---|---|
|||||1,143,751|
## **4 Income from charitable activities**
|Sundry receipts|**Unrestricted funds**
**Designated**
**£**
**General**
**£**
6,617
28,628|**Restricted**
**funds**
**£**
20|**Total**
**2024**
**£**
35,265|**Total**
**2023**
**£**
31,581|
|---|---|---|---|---|
Page 33
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **5 Investment income**
|**Unrestricted funds**
**Designated**
**£**
**General**
**£**
Other income from fixed
asset investments
93,899
64,027
Rent receivable
-
-
93,899
64,027
**6**
**Gifts made**
During the year, Heart Church has made the following gifts:
**No of gifts**
**United Kingdom:**
73rd Trust
12
Jubilee Foundation
5
Emmanuel House
-
Other small gifts in the year
64
81
**Overseas:**
Ghana - King's Village
6
Ghana
-
B
&
M
Owusu-Sekyere
as
missionaries
3
Ukraine Crisis
-
9
**Total gifts made:**
**90**|**Restricted**
**funds**
**£**
-
-
-
**2024**
**£**
3,960
1,273
-
23,192
28,425
22,138
1,031
-
23,169
**51,594**|**Total**
**2024**
**£**
157,926
-
157,926
**No of gifts**
13
7
1
47
68
4
4
1
9
**77**|**Total**
**2023**
**£**
41,949
4,080|
|---|---|---|---|
||||46,029|
||||**2023**
**£**
3,990
3,116
4,646
5,723
17,475
21,816
1,031
500
23,347
**40,822**|
Page 34
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **7 Expenditure on charitable activities**
|**Note**
Other direct costs
Grant funding of
activities
Staff costs
Allocated support
costs
8
**Note**
Grant funding of
activities
Staff costs
Allocated support
costs
8|**Unrestricted funds**
**Designated**
**£**
**General**
**£**
110
15,806
300
9,862
-
678,270
287,483
708,303
287,893
1,412,241
**Unrestricted funds**
**Designated**
**£**
**General**
**£**
5,465
24,850
500
9,713
-
674,195
252,408
439,432
258,373
1,148,190|**Restricted**
**funds**
**£**
-
41,432
-
375
41,807
**Restricted**
**funds**
**£**
763
30,610
-
2,012
33,385|**Total**
**2024**
**£**
15,916
51,594
678,270
996,161|
|---|---|---|---|
||||1,741,941|
||||**Total**
**2023**
**£**
31,078
40,823
674,195
693,852|
||||1,439,948|
Page 35
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **8 Analysis of governance and support costs**
## **Charitable activities expenditure**
|Staff costs
Premises costs
Depreciation
Legal and professional
Governance costs
Other costs|**Unrestricted funds**
**Designated**
**£**
**General**
**£**
-
54,685
172,547
230,532
421
78,425
111,012
270,151
-
20,660
3,503
53,850
287,483
708,303|**Restricted**
**funds**
**£**
-
-
-
-
-
375
375|**Total**
**2024**
**£**
54,685
403,079
78,846
381,163
20,660
57,728
996,161|**Total**
**2023**
**£**
49,521
384,584
81,624
113,420
19,392
45,311|
|---|---|---|---|---|
|||||693,852|
## **9 Trustees remuneration and expenses**
During the year the group made the following transactions with trustees:
||**2024**||**2023**||
|---|---|---|---|---|
||**Remuneration**|**Expenses**|**Remuneration**|**Expenses**|
||**£**|**£**|**£**|**£**|
|Miss S Abel|35,814|389|34,127|275|
|Mr M W Baxter|67,732|162|63,553|5,187|
|Mr G A Bowen|60,558|2,223|53,464|416|
|Mr A M Dickin|18,907|125|22,913|246|
The trustees through their attendance at church and support of the charity give voluntary tithes and collections to the charity throughout the year. Donations made by the trustees without any conditions attached totalled £61,004 for the year (2023 - £58,630).
Page 36
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **10 Staff costs**
The aggregate payroll costs were as follows:
|The aggregate payroll costs were as follows:|||
|---|---|---|
|**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs|**2024**
**£**
640,388
45,127
47,440
732,955|**2023**
**£**
629,584
45,030
49,102|
|||723,716|
The monthly average number of persons (including senior management / leadership team) employed by the group during the year expressed as full time equivalents was as follows:
|Senior leadership
Support staff
Administrative staff|**2024**
**No**
7
15
3
25|**2023**
**No**
7
16
3|
|---|---|---|
|||26|
18 (2023 - 18) of the above employees participated in the Defined Contribution Pension Schemes.
Contributions to the employee pension schemes for the year totalled £47,440 (2023 - £49,102).
The number of employees whose emoluments fell within the following bands was:
|£60,001 - £70,000|**2024**
**No**
2|**2023**
**No**
1|
|---|---|---|
The total employee benefits of the key management personnel of the group were £294,978 (2023 - £281,092).
Page 37
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|**11 Auditors' remuneration**
Audit of the financial statements
**Other fees to auditors**
Taxation compliance services
All other non-audit services|**2024**
**£**
12,720
360
7,580
7,940|**2023**
**£**
12,000|
|---|---|---|
|||360
7,032|
|||7,392|
Page 38
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **12 Tangible fixed assets**
|**Group**
**Cost**
At 1 January 2024
Additions
Disposals
At 31 December 2024
**Depreciation**
At 1 January 2024
Charge for the year
Eliminated on disposals
At 31 December 2024
**Net book value**
At 31 December 2024
At 31 December 2023|**Land and**
**buildings**
**£**
787,071
3,972
-
791,043
267,609
15,220
-
282,829
508,214
519,462|**Furniture and**
**equipment**
**£**
27,872
-
-
27,872
21,129
1,349
-
22,478
5,394
6,743|**Motor**
**vehicles**
**£**
8,100
-
-
8,100
6,837
421
-
7,258
842
1,263|**Plant and**
**machinery**
**£**
782,376
11,336
(10,220)
783,492
376,287
61,855
(8,467)
429,675
353,817
406,089|**Total**
**£**
1,605,419
15,308
(10,220)|
|---|---|---|---|---|---|
||||||1,610,507|
||||||671,862
78,845
(8,467)|
||||||742,240|
||||||868,267|
||||||933,557|
Page 39
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|**Charity**
**Cost**
At 1 January 2024
Additions
Disposals
At 31 December 2024
**Depreciation**
At 1 January 2024
Charge for the year
Eliminated on disposals
At 31 December 2024
**Net book value**
At 31 December 2024
At 31 December 2023|**Land and**
**buildings**
**£**
787,071
3,972
-
791,043
267,609
15,220
-
282,829
508,214
519,462|**Furniture and**
**equipment**
**£**
27,872
-
-
27,872
21,129
1,349
-
22,478
5,394
6,743|**Motor**
**vehicles**
**£**
8,100
-
-
8,100
6,837
421
-
7,258
842
1,263|**Plant and**
**machinery**
**£**
782,376
11,336
(10,220)
783,492
376,287
61,855
(8,467)
429,675
353,817
406,089|**Total**
**£**
1,605,419
15,308
(10,220)|
|---|---|---|---|---|---|
||||||1,610,507|
||||||671,862
78,845
(8,467)|
||||||742,240|
||||||868,267|
||||||933,557|
Page 40
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|**13 Fixed asset investments**
**Group**
Investment land
**Other investments**
**Cost or Valuation**
At 1 January 2024
Disposals
At 31 December 2024
**Net book value**
At 31 December 2024
At 31 December 2023||**2024**
**£**
**2023**
**£**
-
23,517,000
**Investment**
**land**
**£**
**Total**
**£**
23,517,000
23,517,000
(23,517,000)
(23,517,000)
-
-
-
-
23,517,000
23,517,000|**2023**
**£**
23,517,000|
|---|---|---|---|
|||||
Page 41
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|**Charity**
Shares in group undertakings and participating interests
Investment land|**2024**
**£**
1
-
1|**2023**
**£**
1
23,517,000|
|---|---|---|
|||23,517,001|
## **Shares in group undertakings and participating interests**
|**Shares in group undertakings and participating interests**|||
|---|---|---|
|**Cost**
At 1 January 2024
At 31 December 2024
**Net book value**
At 31 December 2024
At 31 December 2023|**Subsidiary**
**undertakings**
**£**
1
1
1
1|**Total**
**£**
1|
|||1|
|||1|
|||1|
Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:
The charitable company owns 100% of the ordinary share capital of T Land Limited (company number 06325433), incorporated in England and Wales. T Land Limited’s principal activity is that of land investment. The loss for the financial period of T Land Limited was £4,178 (2023 - profit of £373,766) and the aggregate amount of capital and reserves at the end of the period was £4,069 (2023 - £8,247).
The charitable company also owns 100% of the ordinary share capital of T Street Limited (company number 04757373), a company registered in England and Wales, which is presently dormant.
Page 42
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
**Notes to the Financial Statements for the Year Ended 31 December 2024**
## **Heart Church**
## **Other investments**
|**Other investments**|||
|---|---|---|
|**Cost or Valuation**
At 1 January 2024
Disposals
At 31 December 2024
**Net book value**
At 31 December 2024
At 31 December 2023|**Investment**
**land**
**£**
**Total**
**£**
23,517,000
23,517,000
(23,517,000)
(23,517,000)
-
-
-
-
23,517,000
23,517,000||
|||-|
|||-|
|||23,517,000|
## **14 Debtors**
|**14 Debtors**||||
|---|---|---|---|
|Trade debtors
Due from group undertakings
Prepayments
Other debtors|**Group**
**2024**
**£**
**2023**
**£**
500
4,550
-
-
33,554
40,806
13,857,151
39,028
13,891,205
84,384|**Charity**
**2024**
**£**
**2023**
**£**
500
4,550
8,252
-
33,553
40,806
13,857,151
39,028
13,899,456
84,384||
||||84,384|
Group debtors includes £13,728,462 (2023: £Nil) receivable after more than one year. Charity debtors includes £13,728,462 (2023: £Nil) receivable after more than one year.
Page 43
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **15 Cash and cash equivalents**
|**15 Cash and cash equivalents**||||
|---|---|---|---|
|Cash on hand
Cash at bank|**Group**
**2024**
**£**
**2023**
**£**
1,320
2,320
6,509,600
1,288,290
6,510,920
1,290,610|**Charity**
**2024**
**£**
**2023**
**£**
1,320
2,320
6,491,460
1,278,958
6,492,780
1,281,278||
||||1,281,278|
## **16 Creditors: amounts falling due within one year**
|Trade creditors
Accruals
Due to group undertakings
Other creditors
Other taxation and social
security|**Group**
**2024**
**£**
**2023**
**£**
16,256
17,805
38,215
32,602
-
-
4,555
4,092,639
11,160
13,992
70,186
4,157,038|**Charity**
**2024**
**£**
**2023**
**£**
16,256
17,805
32,395
26,778
-
4,739
4,555
4,092,639
11,160
13,992
64,366
4,155,953|**Charity**
**2024**
**£**
**2023**
**£**
16,256
17,805
32,395
26,778
-
4,739
4,555
4,092,639
11,160
13,992
64,366
4,155,953|
|---|---|---|---|
||||4,155,953|
## **17 Creditors: amounts falling due after one year**
||**Group**||**Charity**||
|---|---|---|---|---|
||**2024**|**2023**|**2024**|**2023**|
||**£**|**£**|**£**|**£**|
|Other creditors|6,177,807|6,177,807|6,177,807|6,177,807|
## **18 Provisions**
## **Group**
|**Group**|||
|---|---|---|
|At 1 January 2024
Utilised during the period
At 31 December 2024|**Employment**
**provisions**
**£**
(115,642)
14,735
(100,907)|**Total**
**£**
(115,642)
14,735|
|||(100,907)|
Page 44
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|**Charity**
At 1 January 2024
Utilised during the period
At 31 December 2024|**Employment**
**provisions**
**£**
(115,642)
14,735
(100,907)|**Total**
**£**
(115,642)
14,735|
|---|---|---|
|||(100,907)|
## Employment provision
This provision relates to future payments for life to be made to a former employee (and on death at a reduced rate for the life of the spouse of a former employee) under a formal agreement. The provision has been calculated using life expectancy data and the agreed payments to be made and is discounted to present values. This discount will unwind into future finance costs as the provision unwinds.
Page 45
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **19 Reserves**
|**Group**
At 1 January 2024
Transfer of surplus funds
At 31 December 2024
**Group**
At 1 January 2023
Deficit on property revaluation
Other reserve movements
At 31 December 2023
**Charity**
At 1 January 2024
Surplus on property revaluation
At 31 December 2024
**Charity**
At 1 January 2023 restated
Deficit on property revaluation
Other reserve movements
At 31 December 2023|**Unrestricted**
**revaluation**
**reserve**
**£**
(13,034,903)
13,034,903
-
**Unrestricted**
**revaluation**
**reserve**
**£**
(793,865)
(796,619)
(11,444,419)
(13,034,903)
**Unrestricted**
**revaluation**
**reserve**
**£**
(12,944,903)
12,944,903
-
**Unrestricted**
**revaluation**
**reserve**
**£**
-
(796,619)
(12,148,284)
(12,944,903)|**Total**
**£**
(13,034,903)
13,034,903|
|---|---|---|
|||-|
|||**Total**
**£**
(793,865)
(796,619)
(11,444,419)|
|||(13,034,903)|
|||**Total**
**£**
(12,944,903)
12,944,903|
|||-|
|||**Total**
**£**
-
(796,619)
(12,148,284)|
|||(12,944,903)|
Page 46
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **20 Funds**
|**Group**
**Unrestricted funds**
**_General_**
General funds
**_Designated_**
Other designated funds
Building funds
Operation Rudolph
KMC Fund
Capital repairs
Music Production
**_Other_**
Revaluation reserve
**Total unrestricted funds**|**Balance at 1**
**January 2024**
**£**
846,021
147,424
513
342
545,176
469,371
1,723
1,164,549
13,034,903
13,034,903
15,045,473|**Incoming**
**resources**
**£**
1,137,306
8,308
93,899
-
-
-
-
102,207
-
-
1,239,513|**Resources**
**expended**
**£**
(1,412,241)
(114,654)
(21,984)
-
(150,535)
(720)
-
(287,893)
-
-
(1,700,134)|**Transfers**
**£**
13,034,903
-
-
-
-
-
-
-
(13,034,903)
(13,034,903)
-|**Balance at 31**
**December**
**2024**
**£**
13,605,989
41,078
72,428
342
394,641
468,651
1,723|
|---|---|---|---|---|---|
||||||978,863|
||||||-|
||||||-|
||||||14,584,852|
Page 47
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|**Restricted funds**
Missions
InSpire Building Project
Jubilee Foundation
**Total restricted funds**
**Total funds**|**Balance at 1**
**January 2024**
**£**
18,787
289,258
21,546
329,591
15,375,064|**Incoming**
**resources**
**£**
48,706
-
150
48,856
1,288,369|**Resources**
**expended**
**£**
(40,534)
-
(1,273)
(41,807)
(1,741,941)|**Transfers**
**£**
-
-
-
-
-|**Balance at 31**
**December**
**2024**
**£**
26,959
289,258
20,423|
|---|---|---|---|---|---|
||||||336,640|
||||||14,921,492|
Page 48
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|**Unrestricted funds**
**_General_**
General funds
**_Designated_**
Other designated funds
Building funds
Operation Rudolph
KMC Fund
Capital repairs
Music Production
**_Other_**
Revaluation reserve
**Total unrestricted funds**
**Restricted funds**
Missions
InSpire Building Project
Jubilee Foundation
**Total restricted funds**|**Balance at 1**
**January 2023**
**£**
756,386
274,856
513
342
721,295
481,644
1,849
1,480,499
793,865
793,865
3,030,750
18,093
289,258
14,512
321,863|**Incoming**
**resources**
**£**
1,179,568
680
-
-
-
-
-
680
-
-
1,180,248
30,963
-
10,150
41,113
Page 49|**Resources**
**expended**
**£**
(1,089,933)
(128,112)
-
-
(176,119)
(12,273)
(126)
(316,630)
-
-
(1,406,563)
(30,269)
-
(3,116)
(33,385)|**Transfers**
**£**
(12,241,038)
-
-
-
-
-
-
-
12,241,038
12,241,038
-
-
-
-
-|**Other**
**recognised**
**gains/(losses)**
**£**
12,241,038
-
-
-
-
-
-
-
-
-
12,241,038
-
-
-
-|**Balance at 31**
**December**
**2023**
**£**
846,021
147,424
513
342
545,176
469,371
1,723|
|---|---|---|---|---|---|---|
|||||||1,164,549|
|||||||13,034,903|
|||||||13,034,903|
|||||||15,045,473|
|||||||18,787
289,258
21,546|
|||||||329,591|
||||||||
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
**Total funds**
|**Balance at 1**
**January 2023**
**£**
3,352,613|**Incoming**
**resources**
**£**
1,221,361|**Resources**
**expended**
**£**
(1,439,948)|**Transfers**
**£**
-|**Other**
**recognised**
**gains/(losses)**
**£**
12,241,038|**Balance at 31**
**December**
**2023**
**£**
15,375,064|
|---|---|---|---|---|---|
Page 50
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|**Charity**
**Unrestricted funds**
**_General_**
General funds
**_Designated_**
Other designated funds
Building funds
Operation Rudolph
KMC fund
Capital repairs
Music Production
**_Other_**
Revaluation reserve
**Total unrestricted funds**|**Balance at 1**
**January 2024**
**£**
927,775
147,424
513
342
545,176
469,371
1,723
1,164,549
12,944,903
12,944,903
15,037,227|**Incoming**
**resources**
**£**
1,146,217
8,308
93,899
-
-
-
-
102,207
-
-
1,248,424|**Resources**
**expended**
**£**
(1,416,974)
(114,654)
(21,984)
-
(150,535)
(720)
-
(287,893)
-
-
(1,704,867)|**Transfers**
**£**
12,944,903
-
-
-
-
-
-
-
(12,944,903)
(12,944,903)
-|**Balance at 31**
**December**
**2024**
**£**
13,601,921
41,078
72,428
342
394,641
468,651
1,723|
|---|---|---|---|---|---|
||||||978,863|
||||||-|
||||||-|
||||||14,580,784|
Page 51
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|**Restricted funds**
Missions
InSpire Building Project
Jubilee Foundation
**Total restricted funds**
**Total funds**|**Balance at 1**
**January 2024**
**£**
18,787
289,258
21,546
329,591
15,366,818|**Incoming**
**resources**
**£**
48,706
-
150
48,856
1,297,280|**Resources**
**expended**
**£**
(40,534)
-
(1,273)
(41,807)
(1,746,674)|**Transfers**
**£**
-
-
-
-
-|**Balance at 31**
**December**
**2024**
**£**
26,959
289,258
20,423|
|---|---|---|---|---|---|
||||||336,640|
||||||14,917,424|
Page 52
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|**Unrestricted funds**
**_General_**
General funds
**_Designated_**
Other designated funds
Building funds
Operation Rudolph
KMC fund
Capital repairs
Music Production
**_Other_**
Revaluation reserve
**Total unrestricted funds**
**Restricted funds**
Missions
InSpire Building Project
Jubilee Foundation
**Total restricted funds**|**Balance at 1**
**January 2023**
**£**
1,211,906
274,856
513
342
721,295
481,644
1,849
1,480,499
-
-
2,692,405
18,093
289,258
14,512
321,863|**Incoming**
**resources**
**£**
1,114,378
680
-
-
-
-
-
680
-
-
1,115,058
30,963
-
10,150
41,113
Page 53|**Resources**
**expended**
**£**
(1,398,509)
(128,112)
-
-
(176,119)
(12,273)
(126)
(316,630)
-
-
(1,715,139)
(30,269)
-
(3,116)
(33,385)|**Transfers**
**£**
(12,944,903)
-
-
-
-
-
-
-
12,944,903
12,944,903
-
-
-
-
-|**Other**
**recognised**
**gains/(losses)**
**£**
12,944,903
-
-
-
-
-
-
-
-
-
12,944,903
-
-
-
-|**Balance at 31**
**December**
**2023**
**£**
927,775
147,424
513
342
545,176
469,371
1,723|
|---|---|---|---|---|---|---|
|||||||1,164,549|
|||||||12,944,903|
|||||||12,944,903|
|||||||15,037,227|
|||||||18,787
289,258
21,546|
|||||||329,591|
||||||||
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
**Total funds**
|**Balance at 1**
**January 2023**
**£**
3,014,268|**Incoming**
**resources**
**£**
1,156,171|**Resources**
**expended**
**£**
(1,748,524)|**Transfers**
**£**
-|**Other**
**recognised**
**gains/(losses)**
**£**
12,944,903|**Balance at 31**
**December**
**2023**
**£**
15,366,818|
|---|---|---|---|---|---|
Page 54
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **Restrictions on funds**
## _**Designated funds**_
Each designated fund has been agreed by the group and all relate to specific projects as designated by the Trustees. A summary of the nature and purpose of the designated funds that have incurred significant activity during the year is set out below:
## _KMC fund_
In the year ended 31 December 2018, the Trustees agreed to set aside five years' worth of KMC rental, in line with their five-year strategic plan. The aim of this was to provide for the required production audio visual requirements and to establish a fund for other initial set up costs. This also included an amount for any capital repairs that were required at Talbot Street. During the year ended 31 December 2020, a fire occurred at Talbot Street which damaged many items within the building. The group has received some insurance proceeds during the year for this.
## _Employment cost_
In the previously mentioned five year strategic plan, the Trustees set aside an amount to cover the funding of two new roles and to rectify any salary shortfalls in order to achieve the group's objectives. This was subsequently transferred to other designated funds in 2020 due to the COVID-19 pandemic affecting the strategic plan.
## _Capital repairs_
The KMC production equipment has an estimated repair schedule and also has a lifespan of between 7-10 years and therefore it was agreed in five-year strategic plan that an amount should be provided for to maintenance of the equipment and to replenish the production equipment at the end of its life.
## _Building Funds_
The trustees have agreed that interest raised on Toton land funds from fixed and notice accounts will not be used as unrestricted general income. Instead it will be designated towards a future building project, in part to offset construction inflation, and also o pay for any consultant fees as part of the process of investigating options.
## _Operation Rudolph_
Operation Rudolph was an initiative many years ago providing Christmas Food Hampers. As the work of Heart Nottingham includes preparation of Food Hampers this fund will be used to assist with those costs.
## _Music Production_
Creative music has been produced by Heart Church musicians for decades and this music is widely available on streaming platforms. This fund represents income from those platforms which is held and utilised into production costs of future recordings.
## _**Restricted funds**_
Each restricted fund has sufficient resources to enable the fund to be applied in accordance with the restrictions imposed. A summary of the nature and purpose of the restricted funds that have incurred significant activity during the year is set out below:
## _Missions_
This consists of amounts received to provide grants in order to support projects in different parts of the world. The main beneficiary of the grants this year are the Kings Village in Ghana.
Page 55
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## _InSpire Building Project_
The InSpire project was launched in 2004 to raise funds for a previously planned new church building. This fund represents the balance held since that time. The trustees intend to use these funds on the planned new building project possible now that the sale of Toton has occurred. The InSpire project was planned on the realistic expectation that a sale of Toton was imminent back through the 2000’s.
## _Jubilee Foundation_
A fund raised from congregational donations which can be applied for to assist in specific circumstances. This fund typically funds white goods, furniture and holidays for families and individuals oppressed by life’s circumstances. This fund can not be used to support Heart Church members but is for the wider community.
Page 56
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
**Notes to the Financial Statements for the Year Ended 31 December 2024**
## **Heart Church**
## **21 Analysis of net assets between funds**
## **Group**
|Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Provisions
Total net assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Creditors over 1 year
Provisions
Total net assets|**Unrestricted funds**
**Restricted**
**General**
**£**
**Designated**
**£**
**funds**
**£**
482,259
385,006
1,002
19,471,912
594,575
335,638
(69,468)
(718)
-
(6,177,807)
-
-
(100,907)
-
-
13,605,989
978,863
336,640
**Unrestricted funds**
**Restricted**
**General**
**£**
**Designated**
**£**
**Revaluation**
**reserve**
**£**
**funds**
**£**
546,457
385,848
-
1,252
213,381
-
23,303,619
-
267,954
778,701
-
328,339
(66,129)
-
(4,090,909)
-
-
-
(6,177,807)
-
(115,642)
-
-
-
846,021
1,164,549
13,034,903
329,591|**Unrestricted funds**
**Restricted**
**General**
**£**
**Designated**
**£**
**funds**
**£**
482,259
385,006
1,002
19,471,912
594,575
335,638
(69,468)
(718)
-
(6,177,807)
-
-
(100,907)
-
-
13,605,989
978,863
336,640
**Unrestricted funds**
**Restricted**
**General**
**£**
**Designated**
**£**
**Revaluation**
**reserve**
**£**
**funds**
**£**
546,457
385,848
-
1,252
213,381
-
23,303,619
-
267,954
778,701
-
328,339
(66,129)
-
(4,090,909)
-
-
-
(6,177,807)
-
(115,642)
-
-
-
846,021
1,164,549
13,034,903
329,591|**Total funds**
**at 31**
**December**
**2024**
**£**
868,267
20,402,125
(70,186)
(6,177,807)
(100,907)|**Total funds**
**at 31**
**December**
**2024**
**£**
868,267
20,402,125
(70,186)
(6,177,807)
(100,907)|
|---|---|---|---|---|
|||||14,921,492|
|||||**Total funds**
**at 31**
**December**
**2023**
**£**
933,557
23,517,000
1,374,994
(4,157,038)
(6,177,807)
(115,642)|
|||329,591||15,375,064|
## **Charity**
|Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Creditors over 1 year
Provisions
Total net assets|**Unrestricted funds**
**General**
**£**
**Designated**
**£**
482,259
385,006
1
-
19,462,023
594,575
(63,648)
(718)
(6,177,807)
-
(100,907)
-
13,601,921
978,863|**Restricted**
**funds**
**£**
1,002
-
335,638
-
-
-
336,640|**Total funds**
**at 31**
**December**
**2024**
**£**
868,267
1
20,392,236
(64,366)
(6,177,807)
(100,907)|
|---|---|---|---|
||||14,917,424|
Page 57
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
|Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Creditors over 1 year
Provisions
Total net assets|**Unrestricted funds**
**General**
**£**
**Designated**
**£**
**Revaluation**
**reserve**
**£**
546,457
385,848
-
213,382
-
23,303,619
258,622
778,701
-
(65,044)
-
(4,090,909)
-
-
(6,177,807)
(115,642)
-
-
837,775
1,164,549
13,034,903|**Restricted**
**funds**
**£**
1,252
-
328,339
-
-
-
329,591|**Total funds**
**at 31**
**December**
**2023**
**£**
933,557
23,517,001
1,365,662
(4,155,953)
(6,177,807)
(115,642)|
|---|---|---|---|
||||15,366,818|
Page 58
Docusign Envelope ID: 48A07D81-969B-4B1A-A235-01B8B104B7AA
## **Heart Church**
## **Notes to the Financial Statements for the Year Ended 31 December 2024**
## **22 Financial instruments**
|**Group**|||
|---|---|---|
|**Categorisation of financial instruments**|||
||**2024**|**2023**|
||**£**|**£**|
|Financial assets that are debt instruments measured at amortised|||
|cost|20,368,571|1,334,188|
|Financial liabilities measured at amortised cost|6,236,833|10,320,853|
|**Charity**|||
|**Categorisation of financial instruments**|||
||**2024**|**2023**|
||**£**|**£**|
|Financial assets that are debt instruments measured at amortised|||
|cost|20,358,683|1,324,856|
|Financial liabilities measured at amortised cost|6,231,013|10,319,768|
## **23 Related party transactions**
## **Group**
## **Charity**
During the year the charity made the following related party transactions:
## **73rd Trust**
(Heart Church and 73rd Trust share a trustee, Nigel Gale, who declares a potential conflict of interest at Heart Church board meeting.)
73rd Trust engages the unchurched through relevant communication of the Gospel. Heart Church support 73rd Trust through financial support of £3,990 (2023 - £3,990). At the balance sheet date the amount due to/from 73rd Trust was £Nil (2023 - £Nil).
Page 59