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2021-12-31-accounts

COMPANY NUMBER: 05487537 (England and Wales)

CHARITY NUMBER: 1120355 (England and Wales)

HILLSONG CHURCH LONDON

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Hillsong Church London Year Ended 31 December 2021

Contents

Page
Reference and Administrative Information 3
Trustees’ Report (Including Strategic Report) 4-11
Independent Auditor’s Report to the Members of Hillsong Church London 12-14
Statement of Financial Activities (incorporating an income and expenditure account) 15
Statement of Financial Position 16
Statement of Cash Flows 17
Notes Forming part of the Financial Statements 18-31

Hillsong Church London Year Ended 31 December 2021

Reference and Administrative Information

Registered office and advisors

Hillsong Church London (“The Church”) is a company limited by guarantee (Company No: 05487537)

Registered Charity Number 1120355
Registered Office Hillsong Church London
425 New Kings Road
Fulham
London
SW6 4RN
Company Secretary R Newton
Trustees R Dacre (Chairman)
J Lestz
R Newton
Dr S Wilson
E Simmons
D Whitewood
C Okeke
U Obi
D Bagheri
Management Team G J Clarke (Senior Pastor and Chief Executive Officer, resigned 30 April 2021)
T Douglass (Senior Pastor and Chief Executive Officer, appointed 5 May 2021)
A Spies (Chief Financial Officer)
Bankers Barclays Bank plc
126 Station Road
Edgware
Middlesex
HA8 7RY
Auditors RSM UK Audit LLP
25 Farringdon Street
London
EC4A 4AB
Solicitors Bates Wells & Braithwaite
10 Queen Street Place
London
EC4R 1BE

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Hillsong Church London Year Ended 31 December 2021

Trustees’ Report (Including Strategic Report)

The Trustees, who are also Directors of the company for Companies Act purposes, present their report for the year ended 31 December 2021.

Objectives and Activities

Principal aims and objectives

The principal aim and objective of Hillsong Church London (“the Church”) is that of advancement of the Christian faith for the benefit of the public in the UK, Europe and elsewhere by the pronouncement of the Gospel of Jesus Christ in accordance with the Statement of Faith referred to in the company constitution.

Strategy

Our strategy in achieving these objectives has remained constant since the Church was first established:

  1. To take the truth of the Gospel and teachings of the Christian faith and communicate them in the language and style of today's culture.

  2. To build a large Christ centred Bible-based church headquartered in London, able to serve the Greater London area, the UK and Europe.

  3. To engage all members of the Church to:

  4. i. Be relationally connected in a Small Group in the life of the Church.

  5. ii. Serve in some capacity, adding to the health, life and expression of the Church.

  6. iii. Be involved in some form of personal social justice.

  7. iv. Sustain one thing to help someone break out of the cycle of injustice.

  8. v. Take personal responsibility to encourage people in their day to day life to become part of the expression and life of the Church.

  9. vi. Personally study and to journal.

  10. vii. Contribute financially.

Principal Activities

This past year has seen a continuation of our principal activities however the format of these activities has changed due to the significant impact of the Covid-19 pandemic and related control measures in the UK and around the world.

On 23 March, 2020 the UK Government announced various control measures in response to the Covid-19 which impacted the charity. The main impact of these measures was the restriction of the principal activity of regular Sunday church services. From this date, regular services and any other gatherings, including small groups, was not permitted to proceed.

In 2021 the main impact of Covid-19 related restrictions continued to be the inability to hold any services or events in person. Accordingly, all church services and activity continued to be broadcast on several online platforms. Commencing in June 2021 and in line with UK Government restrictions at the time, physical meetings re-commenced, starting with Sunday church services. Hillsong was able to return to the majority of venues and locations as had operated pre-Covid, and saw increasing numbers of attendees return to services since launch.

The charity has been able to continue to respond to changing needs of communities as a result of Covid-19 and control measures. Significant programs in 2021 included Love Your Neighbour and continued support for refugees and asylum seekers.

The principal activities of the church continued to be:

  1. In line with changing control measures, the re-start of regular Sunday church services and children’s activities around the UK based in:

  2. a. Central London at the Dominion Theatre.

  3. b. South East London, at hired premises

  4. c. Guildford, Surrey at G-Live.

  5. d. Tonbridge, Kent at The River Centre.

  6. e. Oxford, Oxfordshire at the Odeon Theatre

  7. f. Newcastle-Upon-Tyne at Westgate Hall.

  8. g. North London at the Bernie Grant Arts Centre.

  9. h. Edinburgh, Scotland at the Rose Theatre

  10. i. Liverpool at various locations within the city.

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Hillsong Church London Year Ended 31 December 2021

Trustees’ Report (Including Strategic Report) (continued)

New activities & initiatives commenced in the year focused on the restart of in-person activities, and the emerging needs in the community. These included the following:

  1. Launch of full services at a new location in Reading, Berkshire.

  2. Increased and diversified activity of our Green Light teams including providing including provision of Asylum Seeker Initial Health Screens in partnership with NHS, and participation in GLA rough sleeper programs.

  3. Acquisition of properties for use as part of the charity’s participation in the UK Community Sponsorship Scheme.

  4. New activity under Asylum Seeker programs including provision for clothing and school uniforms, support for new programs for Afghan refugees, and additional Christmas gift programmes.

With a return to activity at a scope reduced from pre-Covid activities, approximately 1,000 volunteers continued to be involved in activities conducted or supported by Hillsong Church including:

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Hillsong Church London Year Ended 31 December 2021

Trustees’ Report (Including Strategic Report) (continued)

In the consideration of all activities undertaken the trustees have had regard to the public benefit guidance published by The Charity Commission.

Achievements and performance

In prior years, achievement and performance has been primarily measured against targets for financial growth, by the increased number of attendees at Sunday services and other gatherings, and by the number of members volunteering.

With Covid-19 control measures in place, Sunday services, our regular conferences and any other gatherings were not able to proceed. Therefore, the measurement of the Church’s impact and achievements was focussed on online engagement to services and other content, as well as the number of mid-week groups. In the period since ceasing services, numbers of people engaged in Sunday online services has remained consistent, and during the year the number of mid-week groups meeting increased.

Achievements in the areas of social justice activity increased, with an increase in the number of individuals assisted and the number of new programmes launched.

The Covid-19 control measures in the UK continue to have an impact on the charity’s activities. This impact is discussed below. In 2022 Hillsong globally announced a transition of senior leadership, however there is no change to Hillsong Church London's objectives as a result of this. The general economic conditions in the UK may have an impact on the charity, however these items are managed within our risk framework. To our knowledge, there are no other internal or external factors that will significantly prevent us from achieving our future objectives.

Financial review

Balance sheet funds stood at £10,424,465 (2020: £10,573,488) comprising Restricted Funds of £2,514,050 (2020: £2,541,348) and Unrestricted Funds of £7,910,415 (2020: £8,032,140).

During this financial year, the charity made a net deficit of £149,023. This was a decrease from 2020 where a surplus of £2,161,620 was made. The 2020 financial results were a result of many costs reducing significantly under Covid-19 control measures.

The charity’s main source of income continues to be donations from church members.

Governance costs represent less than 1% of total resources expended.

During Covid-19 control measures, the charity was able to reduce costs to offset the reduction in income during the year. In 2021 the surplus created in prior years was utilised in part to invest into the cost of returning to regular activity when regulations allowed. In spite of the challenges of 2021, the charity has been able to manage to maintain a satisfactory financial position.

Reserves policy

The charity had reserves of £10,424,465 at 31 December 2021. Of the total reserves of £10,424,465 an amount of £2,514,050 is considered restricted funds. Restricted funds relate to the Hillsong Building Fund, Spring the Trap (Green Light) funds and other social justice funds which are received and passed on to partner organisations.

The total unrestricted reserves of £7,910,415 consists of £2,738,598 in cash, with the remainder represented by fixed assets of £8,753,078, other current assets of £1,590,684 less creditors of £5,171,945. The total restricted reserves of £2,514,050 consists of £987,675 in cash, with the remainder represented by fixed assets.

In 2021 the reserves policy was refreshed and stipulated a goal of holding unrestricted cash equal to three months of staffing costs and debt repayments, equal to approximately £1m. It was acknowledged that in the season of investment into returning to activities post Covid-19 restrictions, and when building costs were needed, it would be acceptable to hold reserves below this amount at this time.

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Hillsong Church London Year Ended 31 December 2021

Trustees’ Report (Including Strategic Report) (continued)

The planning for future years includes plans to reduce costs and grow income to allow for increased unrestricted surplus funds to contribute to unrestricted reserves. In the opinion of the trustees, the current unrestricted assets of £4,329,282 represent a cash or cash equivalent reserve of sufficient levels, with saleable fixed assets representing a further capacity for reserve cash if it was required.

Plans for future years

Our mission and objectives for the future remain the same as outlined earlier, that is, to continue to communicate the Gospel of Jesus Christ.

Our objectives for the future are to build on the growth experienced and see a substantial increase in the number of people establishing a personal relationship with the Lord Jesus Christ. This objective will be fulfilled by creating additional capacity for Sunday services in existing and new locations. We also seek to see increasing numbers of people actively involved in Church life by attending Small Groups or being involved in our volunteer teams and other activities.

We will continue hosting our conferences in future years. Our plan is that these conferences will reach a wider cross section of church leaders and team members from across Europe and other nations inspiring them to keep building their local church and making a positive difference in their world.

We will continue to provide opportunities for designated giving towards specific projects, which we will partner within the UK and overseas. Our aim is for every member of the Church to do at least one thing, and sustain it, which helps someone else break the cycle of poverty.

We aim to help people in our Church become mature Christians, through a clear understanding of the Bible and how it applies to their life.

The control measures imposed by the UK Government in response to the Covid-19 has a significant impact on the charity and its plans for the future. As at the current date there are no longer restrictions on holding services which means we will continue to hold Sunday church services in our venues in the future. A significant change during Covid-19 restrictions has been the increase of online meetings and content. This will continue in the future which allows individuals in the church increased options to engage with church services and other events. Online formats have been successful and will continue to be used for any other meetings where it is appropriate. The conferences for 2022 will be held as online events, or postponed until future years, depending on continued restrictions, travel options and financial position.

The activity to support those in need of emergency assistance, homeless in the UK, elderly in the community and refugees in the UK has continued. The charity has been able to respond quickly and effectively to the needs of the community and in particular, the work to support Refugees and Asylum Seekers will continue to grow in future years. Other programs such as Love Your Neighbour which commenced during the pandemic will continue.

The financial implications of the charity’s future plans are discussed below.

During 2020 Hillsong began actively searching for a substantial property purchase in London. On 12 January 2022 Hillsong Church London acquired new property asset in North London for the price of £6.8 million. This was funded by a combination of cash reserves and debt secured against the property.

Structure, governance and management

Day to day management is vested in the management team led by the senior pastor.

Hillsong Church London is governed by Memorandum and Articles of Association dated 22 June 2005 and most recently amended 14 October 2021. It is incorporated and domiciled in the United Kingdom. The address of the registered office is 425 New Kings Road, Fulham, London, SW6 4RN.

The trustees have delegated all aspects of decision making to the management team.

The charity is affiliated with other Hillsong churches across the world including in Australia, South Africa, the U.S.A., South America, Europe and has established churches in the Netherlands, Spain and Italy.

The trustees have had due regard to the public benefit guidance published by the Charity Commission. The current Trustee body is diverse and dynamic and has the knowledge and skills required to ensure due diligence for the organisation. The board constitutes of nine trustees, seven who are locally based, one in Europe who travels to the UK regularly. Information on each of the trustees is included below:

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Hillsong Church London Year Ended 31 December 2021

Trustees’ Report (Including Strategic Report) (continued)

The Trustees are provided with a Trustee Induction Pack with information on the organisation, the Trustees' role in relation to governance and their responsibilities under Charity Law.

Consideration for appointment of new trustees usually arises when new ventures or challenges are facing the Charity, all Trustees are at liberty to make recommendations to the Chairman and the Management, in discussion with the Chairman, also make recommendations to the Trustees. The trustees, after completion of due diligence, in turn make recommendations to the members, for appointment by resolution. New Trustees are selected giving regard to independence and maintaining a diverse group of skills and experience.

The remuneration of key management personnel is reviewed by the Chairman and two other trustees each year. Consideration is given to equivalent salaries of similar positions within the marketplace, using published salary information. In 2021 a Remuneration Committee was established to increase governance in this area, which will be operational in 2022.

Related parties

Hillsong NL, Hillsong Espana and Hillsong Italia are considered related parties as the board of trustees for these entities consist of trustees and management personnel of Hillsong London.

During the year, there were related party transactions totalling £291 (2020: £20,560) with Hillsong NL. This consists of £282 (2020: £20,560) paid on behalf of Hillsong NL for events held by Hillsong London and costs reimbursed of £573 (2020: £Nil) paid to Hillsong NL in the year. There were costs of £Nil (2020: £Nil) paid on behalf of Hillsong Espana. There were also costs of £3,637 (2020: £49,761), tithes and offerings of £4,112 (2020: £45,292) and sale of teaching resources of £59 (2020: £Nil) on behalf of Hillsong Italia. There were no donations received from related parties (2020: £nil).

No trustee received remuneration in relation to their duties as trustees or incurred expenses (2020: £nil). During the year trustees received remuneration in respect of services provided by them including legal services, management consultancy services and supplying teaching resources. The trustees’ remuneration for these items for the year was £96,026 (2020: £83,886).

Risk management

The Church is a fit for purpose organisational structure, Company Limited by Guarantee.

Both the risks and systems are regularly reviewed with a risk register maintained by the trustees. The risk register presents the principal risks facing the Church in the following categories:

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Hillsong Church London Year Ended 31 December 2021

Trustees’ Report (Including Strategic Report) (continued)

These risks have been mitigated, with action taken, including the following:

A summary of those risks considered to have a very high maximum potential for impact as per the risk log is including below:

Additional risks are managed within the charity’s risk framework.

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Hillsong Church London Year Ended 31 December 2021

Trustees’ Report (Including Strategic Report) (continued)

Going concern

As discussed above, the UK Government’s Covid-19 control measures, and particularly the restrictions on public gatherings, has had an impact on the charity. The main impact was the inability to hold any gatherings, including Sunday services and large conferences, until mid 2021. The main risk to the charity from this action was the financial risk of lower than expected donation income. This risk is amplified by the general economic conditions within the UK, inflation levels and loss of income within the general population.

In response to this risk, the charity took and in 2022 continues to take the following steps:

The financial investment required in 2021 and the preparation for property acquisition meant cash reserves were utilised in part in the year. At the end of the year cash reserves remain adequate to settle liabilities as they fall due. The trustees have considered the period of at least 12 months from signing these accounts.

Given the charity’s current ability to reduce costs and respond to income levels and its retention of cash reserves, the trustees’ are of the opinion that the charity can continue as a going concern.

The trustees, working closely with the members and management team, have in place the infrastructure to continue our mission to advance the Christian faith through growing the Church and maintaining our mission to London, the UK and other nations.

Trustees’ statement of responsibilities

The Trustees (who are also directors of Hillsong Church London 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).

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and group and of the income, expenditure and financial activities of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors

RSM UK Audit LLP has expressed its willingness to continue in office.

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Hillsong Church London Year Ended 31 December 2021

Trustees’ Report (Including Strategic Report) (continued)

Statement of disclosure to auditors

a) So far as the Trustees are aware, there is no relevant audit information of which the charity’s auditors are unaware, and

b) They have taken all the steps they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

The Trustees Report, which incorporates the Strategic Report has been approved by the Board of Trustees at its meeting on........................................ 2022 and signed on its behalf by:31 May

………………………………

R A Newton Director

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Hillsong Church London Year Ended 31 December 2021

Independent Auditor’s report to the Members of Hillsong Church London

Opinion

We have audited the financial statements of Hillsong Church London (the ‘charitable company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis of opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustees’ Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Report.

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Hillsong Church London Year Ended 31 December 2021

Independent Auditor’s report to the Members of Hillsong Church London (continued)

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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

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Hillsong Church London Year Ended 31 December 2021

Independent Auditor’s report to the Members of Hillsong Church London

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to General Data Protection Regulations and Health and Safety. We perfomed audit procedures to inquire of management whether the group is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls and voluntary income and income recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates and testing income through a combination of tests of control and tests of detail, including testing post year end receipts.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Sladden (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants 25 Farringdon Street London EC4A 4AB

Date: 22 June 2022

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Hillsong Church London Year Ended 31 December 2021

Statement of Financial Activities (incorporating an income and expenditure account) For the Year Ended 31 December 2021

2021 2020
Unrestricted Restricted Unrestricted Restricted
funds funds Total funds funds Total
Notes £ £ £ £ £ £
Incoming resources
Donations 3 10,928,624 968,375 11,896,999 13,093,390 1,076,446 14,169,836
Charitable activities 4 387,978 - 387,978 355,406 - 355,406
Investments 3,636 - 3,636 3,835 - 3,835
Other income 5 28,467 9,000 37,467 174,311 - 174,311
__
__ __ __ __ __
Total incoming resources 11,348,705 977,375 12,326,080 13,626,942 1,076,446 14,703,388
__ __ __ __ __ __
Resources expended
Raising funds 6 3,172,446 - 3,172,446 3,179,777 - 3,179,777
Charitable activities 6 8,297,984 1,004,673 9,302,657 8,636,727 725,264 9,361,991
__ __ __ __ __ __
Total resources expended 11,470,430 1,004,673 12,475,103 11,816,504 725,264 12,541,768
__ __ __ __ __ __
Net movement in funds (121,725) (27,298) (149,023) 1,810,438 351,182 2,161,620
Reconciliation of funds:
Total funds brought forward 17 8,032,140 2,541,348 10,573,488 6,221,702 2,190,166 8,411,868
Transfer of funds 17 - - - - - -
__ __ __ __ __ __
Total funds carried forward 7,910,415
__		 2,514,050
__		 10,424,465
__		 8,032,140
__		 2,541,348
__		 10,573,488
__

The statement of financial activities includes all gains and losses in the year.

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Hillsong Church London Year Ended 31 December 2021

Statement of Financial Position as at 31 December 2021

2021 2020
Note £ £ £ £
Fixed assets
Tangible assets 10 10,279,453 8,614,232
Current assets
Stocks 11 68,837 90,114
Debtors 12 1,521,847 2,225,459
Cash at bank and in hand 13 3,726,273 5,658,696
__ __
Total Current assets 5,316,957 7,974,269
Liabilities
Creditors: amounts falling due within
one year 14 (1,777,624) (4,705,782)
__ __
Net current assets 3,539,333 3,268,487
__ __
Total assets less current liabilities 13,818,786 11,882,719
Creditors: Amounts falling due after
more than one year 16 (3,394,321) (1,309,231)
__ __
Total Net assets 10,424,465 10,573,488
__ __
The funds of the charity
Restricted income funds 18 2,514,050 2,541,348
Unrestricted income funds 7,910,415 8,032,140
__ __
Total charity funds 10,424,465
__		 10,573,488
__

Approved and authorised for issue by the trustees on …………………………………… and were signed on its behalf by:31 May 2022

……………………………………

R A Newton Director

The notes on pages 18 – 31 form part of these financial statements. Company number: 05487537 (England and Wales) Charity number: 1120355 (England and Wales)

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Hillsong Church London Year Ended 31 December 2021

Statement of Cash Flows For the year ended 31 December 2021

2021 2020
Note £ £
Cash generated from operating activities 20 917,683 2,804,459
__ __
Cash flows from investing activities
Interest income 3,636 3,835
Interest expenditure (71,914) (85,039)
Purchase of tangible fixed assets (2,573,215) (946,482)
Proceeds on disposal of tangible assets 84,449 34,853
__ __
Cash used in investing activities (2,557,044) (992,833)
__ __
Cash flows from financing activities
Proceeds of new loans 2,250,000 -
Repayment of borrowings (2,431,527) (237,090)
Payment of obligations under finance leases (111,535) (66,193)
__ __
Cash used in financing activities (293,062) (303,283)
__ __
Increase in cash and cash equivalents in the year (1,932,423) 1,508,343
Cash and cash equivalents at the beginning of the year 5,658,696 4,150,353
__ __
Cash and cash equivalents at the end of the year 13 3,726,273
__		 5,658,696
__

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Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

General information

Hillsong Church London is a company limited by guarantee (Companies House No. 05487537) and a registered charity (Registered Charity No. 1120355). It is governed by Memorandum and Articles of Association dated 22 June 2005 and most recently amended 14 October 2021. It is incorporated and domiciled in the United Kingdom. The address of the registered office is 425 New Kings Road, Fulham, London, SW6 4RN.

Basis of preparation

These Financial Statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2006, and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Hillsong Church London meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest whole £.

Going concern

As discussed in the trustees' report, the UK Government’s Covid-19 control measures, and particularly the restrictions on public gatherings, has had an impact on the charity. The main impact has been the inability to hold any gatherings, including Sunday services and large conferences until mid-2021. The main risk to the charity from this action is the financial risk of lower than expected donation income. This risk is amplified by the general economic conditions within the UK, inflation levels and loss of income within the general population.

In the event of restrictions being lifted on church gatherings, the risk remained primarily financial, in that costs of activities would return, but income would remain lower than at pre Covid-19 levels.

The trustees consider the use of the going concern basis of accounting is appropriate. While there is a general economic uncertainty within the UK, the trustees have considered the charity’s ability to reduce costs, and remain of the opinion that the charity can continue as a going concern. While there is a significant asset purchase in early 2022, this will enable the charity to increase activity and reduce other operating costs. There are no other material uncertainties related to events or conditions that may cast significant doubt about the ability of the Church to continue as a going concern.

Income

Donation income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met and it is probable that the income will be received and the income can be reliably measured.

Income is received by way of donations, tithes and offerings and is included in full in the statement of financial activities when received. Donations arising under Gift Aid are accounted for on the date of receipt and provisions are made for income tax remaining unclaimed at the year end.

Income from charitable activities

Income from conferences, events, and sales of Christian resources are made in furtherance of the objects of the Church, and are accounted for when income is receivable.

Income received in advance of an event is deferred until the criteria for income recognition are met.

18

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

1. Accounting policies (continued)

Investment income

Investment income relates to interest on funds held on deposit and is recognised when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of support costs

Total expenditure includes the allocation of support costs to the various expenditure categories set out in the statement of financial activities. These support costs relate to the corporate functions including information technology, property and facilities management, human resources, finance and governance, in addition to the support costs incurred by communications and other centralised departments that are not otherwise directly allocated. Support costs have been allocated to activities based on the apportionment of time spent by employees in each category. This apportionment is calculated for each key employee department.

Governance costs represent costs from external service providers relating to the strategic management of the Church. While the trustees meet regularly on an informal and formal basis to discuss strategic and governance issues, the Church structure and involvement of the trustees in its day-to-day activities means that these meetings do not give rise to specific costs.

Leases

An asset and corresponding liability are recognised for leasing agreements that transfer to the Church substantially all of the risks and rewards incidental to ownership (“finance leases”). The amount capitalised is the fair value of the leased asset or, if lower, the present value of the minimum lease payments payable during the lease term, both determined at inception of the lease. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are expensed as incurred.

Operating lease rentals are charged to the statement of financial activities on a straight line basis over the life of the lease.

Restricted funds

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to that fund.

Details of restricted funds are disclosed in note 18.

19

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

1. Accounting policies (continued)

Unrestricted funds

Unrestricted funds are donations and other income received or generated for the objectives of the Church without further specified purpose and are available as general funds.

Tangible fixed assets

Fixed assets are for use by the Church in fulfilling its main charitable objectives and are capitalised and depreciated. Items under £1,000 are written off against income in the year of purchase.

Depreciation is charged at a rate to reduce useful economic lives of tangible fixed assets to £nil in accordance with the following policies:

Freehold buildings - 2% reducing balance basis (10%-25% on property improvements) Production equipment - 10-33% straight line basis Vehicles - 33.3-50% straight line basis Office equipment - 20-33.3% straight line basis Leasehold improvements - 10-20% straight line basis

No depreciation is provided in respect of freehold land.

Donated goods

Donated goods for on-going use by a charity in carrying out its activities are recognised as tangible fixed assets with the corresponding gain recognised as income from donations within the statement of financial activities.

Donated goods held as tangible fixed assets are subject to depreciation and an assessed at the reporting date of whether there is any indication that the asset should be written down to its recoverable amount.

Impairments of fixed assets

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the charitable company estimates the recoverable amount of the asset.

Stocks

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price. The Charity has not entered into any financing transactions.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

20

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

1. Accounting policies (continued)

Cash and cash equivalents

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Employee benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

Pensions

The church contributes to a defined contribution scheme with Scottish Widows in respect of staff. Contributions are charged to the income and expenditure account when payable. Differences between contributions payable in the year and contributions actually paid are shown as either other creditors or other debtors.

Grant income

The charity has chosen to include the Covid-19 Job Retention Scheme grant, the Retail, Hospitality and Leisure grant fund (RHLGF) and the Mental Health and Emotional Wellbeing Council Grant in other income in its financial statements. In the prior year, the organisation availed itself of the furlough scheme and the RHLGF scheme introduced by the government in light of the Covid-19 pandemic, and in the current year the organisation availed itself of the furlough scheme and the Mental Health and Emotional Wellbeing Council Grant. During the period an amount of £15,754 (2020: £174,311) was claimed under the schemes. This amount is reflected in other income on the face of the SOFA.

2. Judgement in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations for future events that are believed to be reasonable under the circumstances.

Leases

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the Company as lessee.

21

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

3. Incoming resources from donations

2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
Tithes & Offerings 9,148,244 968,375 10,116,619 10,995,377 1,076,446 12,071,823
Gift Aid Claimed 1,780,380 - 1,780,380 2,098,013 - 2,098,013
__ __ __ __ __ __
10,928,624
__		 968,375
__		 11,896,999
__		 13,093,390
__		 1,076,446
__		 14,169,836
__

4. Income from charitable activities

Unrestricted
Restricted
£
£
Conferences and
events
278,527
-
Resource sales
1,218
-
Music royalties
receivable
4,586
-
Other income
103,647
-
_
_
387,978
-
_
_
ther income
Unrestricted
Restricted
£
£
Profit on disposal of
tangible fixed assets
21,713
-
Coronavirus Job
Retention Scheme
6,754
-
Retail, Leisure and
Hospitality Grant
Scheme
-
-
Mental Health and
Emotional Wellbeing
Council Grant
Scheme
-
9,000
_
_
28,467
9,000

 2021
2020
Total
Unrestricted
Restricted
Total
£
£
£
£
278,527
141,504
-
141,504
1,218
16,265
-
16,265
4,586
6,044
-
6,044
103,647
191,593
-
191,593
_
_
_
_
387,978
355,406
-
355,406
_
_
_
_
2021
2020
Total
Unrestricted
Restricted
Total
£
£
£
£
21,713
-
-
-
6,754
149,311
-
149,311
-
25,000
-
25,000
9,000
-
-
_
_
_
_
37,467
174,311
-
174,311

5. Other income

22

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

6. Total resources expended

Total resources expended
Basis of
allocation		 Cost of
raising
funds		 Conference
and events		 Resource
sales		 Teaching
and
ministry		 Missions Governance
costs		 Total 2021 Total 2020
£ £ £ £ £ £ £ £
Costs directly allocated to activities
Staff costs Direct - 117,453 - 3,080,865 - - 3,198,318 3,547,766
Venue costs Direct 1,666,405 128,800 - 300 - - 1,795,505 1,542,360
Production costs, equipment hire
and transport costs Direct 812,487 398,084 - 22,760 - - 1,233,331 911,880
Ministry and mission expenses Direct 120,046 82,292 - 1,437,271 954,507 - 2,594,116 2,734,336
Cost of sales Direct - - 124,374 - - - 124,374 174,020
Support costs allocated to
activities
Staff costs Staff time 72,894 168,963 12,149 737,464 31,811 10,103 1,033,384 951,195
Premises Staff time 37,315 86,493 6,219 377,509 16,284 5,172 528,992 533,347
General management and office
administration costs Staff time 30,182 69,959 5,030 305,790 13,171 4,183 428,315 428,911
Communications and IT costs Staff time 29,775 69,017 4,963 301,235 12,994 4,127 422,111 506,939
Legal and professional Direct - - - - - 60,462 60,462 42,171
Accounting fees Direct - - - - - 59,488 59,488 54,089
Audit fees Direct - - - - - 35,500 35,500 33,300
Depreciation Staff time 403,342 99,179 7,131 432,882 18,673 - 961,207 964,238
Loss on disposal of fixed assets Staff time - - - - - - - 117,216
__ __ __ __ __ __ ___ ___
Total resources expended 3,172,446
__		 1,220,240
__		 159,866
__		 6,696,076
__		 1,047,440
__		 179,035
__		 12,475,103
___		 12,541,768
___

Expenditure on charitable activities was £9,302,657 (2020: £9,361,991), of which £8,297,984 was unrestricted (2020: £8,636,727) and £1,004,673 was restricted (2020: £725,264).

23

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

7. Analysis of expenditure

This is stated after charging:

This is stated after charging:
2021 2020
£ £
Auditors' remuneration - audit 35,500 33,300
Auditors' remuneration - other services 56,502 54,089
Depreciation
Owned 951,115 923,773
Leased 10,092 40,465
Operating lease rentals 718,153 671,391
Loss / (profit) on disposal of fixed assets (21,713) 117,216
__ __
Analysis of staff costs and costs of key management personnel
2021 2020
£ £
Wages and salaries 3,468,991 3,809,814
Social security costs 377,421 372,803
Pension costs 133,046 135,852
__ __
3,979,458
__		 4,318,469
__

8. Analysis of staff costs and costs of key management personnel

No trustee received remuneration in relation to their duties as trustees or incurred expenses (2020: £nil). During the year two (2020: two) trustees received remuneration in respect of other services provided by them. The trustees’ remuneration for the year was £96,026 (2020: £83,886). The trustees are responsible for governing the charity and directing how it is managed and run.

Key management personnel is defined as those persons having authority and responsibility for planning, directing and controlling the activities of the entity directly or indirectly, which is comprised of the trustees and the management team as defined on page 3. The total employee benefits and remuneration of the key management personnel during the year, including employer NI, was £303,378 (2020: £293,014).

The average monthly number of employees during the year was as follows:

2021 2020
No No
100
__		 113
__

No member of staff received remuneration between £170,000 - £180,000 (2020: one), none between £140,000 and £150,000 (2020: one), one between £100,000 and £110,000 (2020: none) none between £90,000 - £100,000 (2020: none), one between £80,000 - £90,000 (2020: one) three between £70,000 and £80,000 (2020: none), three between £60,000 - £70,000 (2020: two).

Pensions contributions paid to higher paid staff during the year to 31 December 2021 were £25,528 (2020: £24,025).

24

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

9. Donated services and facilities

There are approximately in excess of 1,000 (2020: 2,000) unpaid volunteers involved in activities conducted or supported by Hillsong Church. The value to be placed on these resources cannot be reliably quantified and measured and is not therefore recognised in the statement of financial activities.

10. Tangible fixed assets

Freehold
land and
buildings
Leasehold
Improvement
Production
equipment
£
£
£
Cost
At 1 January 2021
6,472,172
1,024,446
5,827,176
Additions
1,829,313
305,345
417,883
Disposals
-
-
-
_
_
_
At 31 December 2021
8,301,485
1,329,791
6,245,059
_
_
_
Depreciation
At 1 January 2021
758,096
467,160
3,933,344
Charge for the year
165,844
105,233
502,892
On disposals
-
-
-
_
_
_
At 31 December 2021
923,940
572,393
4,436,236
_
_
_
Net book value
7,377,545
757,398
1,808,823
31 December 2021
_
_
__
Net book value
31 December 2020
5,714,076
557,286
1,893,832


 Vehicles
Office
equipment
Total
£
£
£
418,845
1,607,810
15,350,449
50,293
86,330
2,689,164
(119,601)
(217,519)
(337,120)
_
_
_
349,537
1,476,621
17,702,493
_
_
_
358,379
1,219,238
6,736,217
40,714
146,524
961,207
(71,598)
(202,786)
(274,384)
_
_
_
327,495
1,162,976
7,423,040
_
_
_
22,042
313,645
10,279,453
_
_
__
60,466
388,572
8,614,232

Barclays Plc holds a first charge over all tangible fixed assets owned by The Church under mortgage at the year end.

Included in the total net book value of assets is £87,155 (2020: £72,686) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £10,092 (2020: £40,465).

11. Stocks

During the year, an impairment loss of £Nil (2020: £Nil) was recognised on stocks held.

12. Debtors

Trade debtors
Gift Aid recoverable
Other debtors
Prepayments and accrued income		 2021
£
21,415
58,987
236,691
1,204,754
1,521,847		 2020
£
29,160
59,266
656,220
1,480,813
2,225,459

25

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

13. Cash at bank and in hand

Cash at bank and in hand
2021 2020
£ £
Cash at bank 3,719,975 5,652,201
Cash in hand 6,298 6,495
__ __
3,726,273
__		 5,658,696
__

14. Creditors: amounts falling due within one year

2021 2020
£ £
Bank loan 290,604 2,620,651
Obligations under finance leases 47,231 49,760
Trade creditors 893,512 859,382
Taxation and social security 110,636 110,538
Other creditors 55,163 112,249
Accruals and deferred income 380,478 953,202
__ __
1,777,624
__		 4,705,782
__

A bank loan was obtained in July 2008 from Barclays Bank over a 20 year term with 228 capital repayment instalments. The current repayments are £9,019 per month together with interest payments at the bank base rate plus 1.20%.

In October 2021 a loan obtained in August 2016 was repaid, and a new loan of £2,250,000 was obtained from Barclays Bank over a 5 year term with 20 capital repayment instalments. The current repayments are £37,500 per quarter plus interest payments at the bank base rate plus 2.70%.

In October 2021 a second loan obtained in August 2016 was repaid, and a further new loan was obtained from Barclays Bank over a 5 year term with 20 capital repayment instalments. The current repayments are £2,967 per quarter plus interest payments at the bank base rate plus 2.70%.

Finance leases were taken out during prior years for motor vehicles and production equipment over lease terms of 3 years, with 35 capital repayment instalments. One finance lease was taken out in 2021 relating to motor vehicles, over a lease term of 3 years with 35 capital repayment instalments. A further finance lease was taken out in 2021, relating to production equipment, over a lease term of 2 years with 24 capital repayment instalments. Total current repayments in 2021 under finance leases are £68,113 (2020: £62,881) plus interest of £8,059 (2020: £8,740).

Included in other creditors above is £22,001 (2020: £24,365) owing to the pension fund.

26

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

15. Deferred income

At 1 January
Less amount released to income resources
Plus amount deferred in the year
At 31 December		 2021
2020
£
£
759,248
1,290,297
(759,248)
(1,290,297)
802,828
759,248
_
_
802,828
759,248
_
_

As at 31 December 2021 and 31 December 2020 all deferred income relates to income received in advance of conferences and events to be held at a future date.

16. Creditors: amount falling due after more than one year

2021 2020
£ £
Bank loan 2,811,320 662,800
Obligations under finance leases 25,445 18,502
Accruals and deferred income 557,556 627,929
__ __
3,394,321 1,309,231
__ __
Analysis of bank loan and finance leases: 2021 2020
£ £
Debt can be analysed as falling due
In one year or less, or on demand 337,835 2,670,411
Between one and two years 318,746 125,049
Between two and five years 483,362 305,387
In five years or more 2,034,657 250,868
__ __
3,174,600
__		 3,351,715
__

27

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

17. Analysis of net assets between funds

Unrestricted Restricted 2021 Unrestricted Restricted 2020
Funds Funds Total Funds Funds Total
£ £ £ £ £ £
Tangible fixed assets 8,753,078 1,526,375 10,279,453 8,180,851 433,381 8,614,232
Current assets 4,329,282 987,675 5,316,957 5,866,302 2,107,967 7,974,269
Current liabilities (1,777,624) - (1,777,624) (4,705,782) - (4,705,782)
Non-current liabilities (3,394,321) - (3,394,321) (1,309,231) - (1,309,231)
__ __ __ __ __ __
Fund Total 7,910,415 2,514,050 10,424,465 8,032,140 2,541,348 10,573,488
__ __ __ __ __ __
Reconciliation of funds
Total funds brought
forward at 1 January 8,032,140 2,541,348 10,573,488 6,221,702 2,190,166 8,411,868
Movement in funds (121,725) (27,298) (149,023) 1,810,438 351,182 2,161,620
__ __ __ __ __ __
Total funds carried
forward at 31 December 7,910,415 2,514,050 10,424,465 8,032,140 2,541,348 10,573,488

18. Analysis of restricted income funds

Summary of the activity of the restricted funds for 2021 was as follows :

Balance Balance
Brought carried
forward
Incoming		 Outgoing forward
2021 resources resources Depreciation 2021
£ £ £ £ £
Spring the Trap 60,058 131,215 (122,477) - 68,796
Because We Can 63,447 163,614 (174,457) - 52,604
Building Fund 2,176,855 281,251 (36,754) (34,480) 2,386,872
Youth Services - 4,821 - - 4,821
Love Your Neighbour 240,988 396,474 (636,505) - 957
__ __ __ __ __
Total 2,541,348 977,375 (970,193) (34,480) 2,514,050
__ __ __ __ __
Summary of the activity of the restricted funds for 2020 was as follows :
Balance
Brought Balance
forward
Incoming		 Outgoing carried
2020 resources resources forward 2020
£ £ £ £
Spring the Trap 49,106 179,962 (169,010) 60,058
Because We Can 35,563 210,159 (182,275) 63,447
Building Fund 2,105,497 239,275 (167,917) 2,176,855
Youth Services - 2,788 (2,788) -
Love Your Neighbour - 447,050 (206,062) 240,988
__ __ __ __
Total 2,190,166
__		 1,079,234
__		 (728,052)
__		 2,541,348
__

28

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

Analysis of restricted income funds (continued)

The major restricted funds comprise Hillsong Foundation Funds, including:

Spring The Trap

As ‘Green Light’ (formerly City Care) funds are generated in order to provide care, compassion and support to people from all walks of life facing challenges in the local community.

Because We Can

Hillsong Church London collaborates with international social justice organisations as part of a global effort to make poverty history.

Building Fund

The Building Fund was set up using gifts specified to be used to acquire appropriate accommodation for the Church in the future, and to make improvements to church accommodation.

Youth Services

As the 'I Care Revolution' Hillsong delivers a strong message via schools to encourage people to start to take responsibility and care for others.

Love Your Neighbour

The Love Your Neighbour campaign exists to provide Covid-19 related relief, including provision of food supplies, financial and debt guidance and career advice.

19. Commitments

The total future minimum payments under non-cancellable operating leases are as follows:

2021 2020
£ £
Operating leases which expire :
Within one year 844,724 573,987
Between one and five years 2,124,598 1,873,191
In over five years 1,158,750 1,369,583
__ __
4,128,072
__		 3,816,761
__

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net movements in funds
Deduct interest income shown in investing activities
Add back interest expenditure shown in investing activities
Add back depreciation charges
(Profit) / loss on disposal of tangible asset
Decrease / (increase) in stocks
Decrease / (increase) in debtors
Decrease in creditors
Net cash provided by operating activities		 2021
2020
£
£
(149,023)
2,161,620
(3,636)
(3,835)
71,914
85,039
961,207
964,238
(21,713)
117,216
21,277
(13,735)
703,612
(94,715)
(665,955)
(411,369)
_
_
917,683
2,804,459
_
_

29

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

21. Analysis of changes in net funds

At start of
year
Cash flows
£
£
Cash at bank and in hand
5,658,696
(1,932,423)
Borrowings excluding overdrafts
(3,283,451)
181,527
Obligations under finance leases
(68,262)
111,535
_
_
2,306,983
(1,639,361)
_
_		 New
finance
leases
At end of
year
£
£
-
3,726,273
-
(3,101,924)
(115,949)
(72,676)
_
_
(115,949)
551,673
_
_

22. Related party transactions

Hillsong NL, Hillsong Espana and Hillsong Italia are considered related parties as the board of trustees for these entities consist of trustees and management personnel of Hillsong London.

During the year, there were related party transactions totalling £291 (2020: £20,560) with Hillsong NL. This consists of £282 (2020: £20,560) paid on behalf of Hillsong NL for events held by Hillsong London and costs reimbursed of £573 (2020: £Nil) paid to Hillsong NL in the year. There were costs of £Nil (2020: £Nil) paid on behalf of Hillsong Espana. There were also costs of £3,637 (2020: £49,761), tithes and offerings of £4,112 (2020: £45,292) and sale of teaching resources of £59 (2020: £Nil) on behalf of Hillsong Italia. There were no donations received from related parties (2020: £nil).

No trustee received remuneration in relation to their duties as trustees or incurred expenses (2020: £nil). During the year trustees received remuneration in respect of services provided by them including legal services, management consultancy services and supplying teaching resources. The trustees’ remuneration for these items for the year was £96,026 (2020: £83,886), remunerated to the following trustees:

Ray Newton: Salary - Legal Counsel
David Whitewood: Salary
Total		 2021
2020
£
£
28,145
28,162
67,881
55,724
_
_
96,026
83,886
_
_

There were no other outstanding balances with related parties as at 31 December 2021 (2020: £nil).

23. Controlling party

The company is limited by guarantee and does not have share capital. No one individual member has control.

30

Hillsong Church London Year Ended 31 December 2021

Notes forming part of the Financial Statements (continued)

24. Events after the reporting date

On 12 January 2022 Hillsong Church London acquired new property asset in North London for the price of £6.8 million. This was funded by a combination of cash reserves and debt secured against the property.

31