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2022-12-31-accounts

Page
Reference and Administrative
Information
Trustees' Report (Including
Strategic Report)		 4-12
Independent
Auditor's
Report to the Members		 of Hillsong Church London
Statement of Financial Acbvities (incorporating an income and expenditure account) 16
Statement of Financial
Position		 17
Statement ofCash Flows 18
Notes Forming
part ofthe Financial Statements		 19-33

Registered office and advis Registered office and advis ors
Hillsong Church London ('7he Orurch")is a company ilmited byguarantee (Company Noi 05487537)
Registered Charity Number 1120355
Registered Office Hillsong
Church		 London
35 Little Russell Street
London
WC1A 2HH
Company Secretary R Newton
Trustees R Dacre (Chairman)
) Lestz (resigned 23 May 2023)
R Newton
(resigned 23 May 2023)
Dr 5 Wilson (resigned 23 May 2023)
ESimmons (resigned 23 May 2023)
D Whitewood
C Okeke
U Obi
D Bagheri
Management Team T Douglass (Lead Pastor and CEO)
A Spies (Chief Financial Officer)
Bankers Barclays Bank pic
126Station Road
Edgware
Middlesex
HAS 7RY
Auditors RSM UK Audit LLP
25 Farringdon
Street
London
EC4A 4AB
Solicitors Bates Wells
10Queen Street Place
London
EC4R 1BE

~ Facilities ~ Operational
~ Human Resources ~ Security
~ Fraud ~ Financial
~ IT, Data and Cyber ~ Public Relations
~ Legal and Regulatory

ummary of those risks considered to have a very high maximum
potential
for impact as per the risk log		 is including
ow:
Potential Risk Risk miti
ation controls
Loss of, or significant disruption of key venue, leading ~ Identification
of alternative
venues for all		 key sites
to increased costs, reduced congregation, strain on ~ Maintenance
ofstrong relationships
with		 landlords
human resources and reduced
ability to meet Church		 ~ The ability to stream
online services
objectives ~ Develop and establish
a strong groups culture
~ Activity seek options to acquire or lease permanent
venues
A lack of control or poorly designed procedures leads Appropriate
oversight
and staff roles for
to a safeguarding issue which has a significant impact safeguarding
matters.
on the individuals concerned as well as creating legal, DBSchecks for all staff and volunteers
who interact
financial and reputational risk for Church. with children
and vulnerable
adults
Regular safeguarding
training
for all relevant
individuals
Provision of adequate
staff and volunteers		 to meet
required
supervision
ratios in Kids si Youth
Development
and communication
of safeguarding
policies
Development
of fiit-for-purpose
reporting		 and record
kee
in
stems
A staff member or volunteer
is mistreated		 and has a ~ Provision
and maintenance
ofappropriate		 role
negative impact on the individual, as well as resulting descriptions
in legal, financial and reputational risk ~ Structured
process for performance
evaluation		 and
promotion
in place
~ Well-being
framework
beginning
with a process		 and
li
for access to health
intervention
services
A lack of physical security leads to loss ofassets or ~ Use ofvenue-provided
security
personnel		 and
injury or death of staff, volunteers and congregation procedures
~ Liaison with Police in relation to key security
concerns and/or
major events
~ Event planning
policies and procedures
cover
physical
security
requirements
~ Provision ofstaff or volunteers
with appropriate
trainin
as re uired
Damage to confidence of stakeholders caused by Policy guidelines
on employee
conduct documented,
issues outside the UK, by UK staff or by UK volunteers communicated
and followed
or congregation results in loss ofaccess to venues, Staff and team leaders ensure appropriate selection
financial stress and/or regulatory challenge of volunteers
and volunteer
training
and		 supervision
on an ongoing
basis via team nights and		 other
events
Policy in place and followed
regarding
staff
recruitment
process and ongoing
performance
evaluation

2022 2021
Unrestricted Restricted Unrestricted Restricted
funds funds Total funds funds Total
E E E E E E
Incoming resources
Donations 3 9,345,356 762,041 10,107,397 10,928,624 968,375 11,896,999
Charitable
activities		 4 587,012 587,012 387,978 387,978
Investments 111 3,636 3,636
Other income 5 146,903 146,903 28,467 9,000 37,467
Total incoming resources 10,079,382 762,041 10,841,423 11,348,705 977,375 12,326,080
Resources expended
Raising funds 251,178 251,178 3,172,446 3,172,446
Charitable
activities		 6 11,267,097 465,776 11,732,873 8,297,984 1,004,673 9,302,657
Total resources expended 11,518,275 465,776 11,984,051 11,470,430 1,004,673 12,475,103
Net movement in funds (1,438,893) 296,265 (1,142,628) (121,725) (27,298) (149,023)
Reconciliation of funds:
Total funds brought forward 17 7,910,415 2,514,050 10,424,465 8,032,140 2,541,348 10,573,488
Total funds carried forward 6,471,522 2,810,315 9,281,837 7,910,415 2,514,050 10,424,465

2022 2021
Fixed assets
Tangible assets 10 16,321,082 10,279,453
Current assets
Stocks 11 42,248 68,837
Debtors 12 1,376,861 1,521,847
Cash at bank and in hand 13 755,558 3,726,273
Total Current assets 2,174,667 5,316,957
Liabilities
Creditors:
amounts		 falling due within
one year 14 (2,743,084) (1,777,624)
Net current (liabilities)/assets (568,417) 3,539,333
Total assets less current liabilities 15,752,665 13,818,786
Creditors:
Amounts		 falling due after
more than one year 16 (6,470,828) (3,394,321)
Net assets 9,281,837 10,424,465
The funds of the charity
Restricted
income		 funds 18 2,810,315 2,514,050
Unrestricted
income funds		 6,471,522 7,910,415
Total charity funds 9,281,837 10,424,465
Statement ofCash Flows
Forthe year ended 31December 2022
2022f 2021
E
Cash (loss)/generated from operating activities 20 (68,306) 917,683
Cash flows from investing
activities
Interest income 111 3,636
Interest expenditure (321,598) (71,914)
Purchase of tangible
fixed		 assets (7,265,925) (2,573,215)
Proceeds on disposal of tangible assets 443,091 84,449
Cash used in investing activities (7,144,321) (2,557,044)
Cash flows from financing
activities
Proceeds of new loans 4,574,030 2,250,000
Repayment
of borrowings		 (240,158) (2,431,527)
Payment of obligations
under finance leases		 (91,959) (111,535)
Cash used in financing activities 4,241,913 (293,062)
Decrease
in cash and cash equivalents		 in the year (2,970,715) (1,932,423)
Cash and cash equivalents at the beginning of the year 3,726,273 5,658,696
Cash and cash equivalents at the end ofthe year 13 755,558 3,726,273

coming
re		 s ources fro m donation s
2022 2021
Unrestricted
E		 Restricted
f		 Totalf Unrestricted
f		 Restricted
f		 Total
Tithes 8i Offerings 7,819,477 762,041 8,581,518 9,148,244 968,375 10,116,619
Gift Aid Claimed 1,525,879 1,525,879 1,780,380 1,780,380
9,345,356 762,041 10,107,397 10,928,624 968,375 11,896,999
come from charitable activities
2022 2021
Unrestricted Restricted Total Unrestricted Restricted Total
E E f f f f
Conferences and
events 286,495 286,495 278,527 278,527
Resource sales 5,303 5,303 1,218 1,218
Music royalties
receivable 9,329 9,329 4,586 4,586
Other income 108,567 108,567 103,647 103,647
Grant income 177,318 177,318
587,012 587,012 387,978 387,978
ther income
2022 2021
Unrestricted
f		 Restricted Total
f		 Unrestricted
f		 Restricted
f		 Total
f
Profit on disposal of
tangible
fixed		 assets 146,903 146,903 21,713 21,713
Coronavirus
Job
Retention
Scheme		 6,754 6,754
Mental
Health		 and
Emotional
Wellbeing
Council Grant
Scheme 9,000 9,000
146,903 146,903 28,467 9,000 37,467

Total resources expen ded
Sasis of
allocation		 Cost of
raising
funds		 Conference
and events		 Resource
sales		 Teaching
and
ministry		 Missions Governance Total 2022 Total 2021
E E E E E
Staff costs Direct 80,678 2+80,502 2,461,180 3,198,318
Venue costs Direct 244,046 2,801,787 3,045,833 1,795,505
Production
costs, equipment		 hire
and transport costs DII'ect 89,937 577,174 667,111 1,233,331
Ministry
and mission expenses		 Direct 50,647 1,312,829 389,791 1,753,267 2,594,116
Cost ofsales Direct 50,005 50,005 124,374
Support costs allocated to
activities
Staff costs Staff time 99,596 194,357 16,599 748,463 39,872 15,142 1,114,029 1,033,384
Premises Staff time 61,417 119,852 10,236 448,919 24,588 9,337 674,349 528,992
General
management
and		 office
administration
costs		 Staff time 27,837 54,323 4,640 209,674 11,143 4,232 311,849 428,315
Communications
and ITcosts		 Staff time 33,181 64,752 5,530 249,357 13,285 5,045 371,150 422,111
Audit fees Direct 42,000 42,000 60,462
Accounting
fees		 Direct 47,624 47,624 59,488
Legal 8 Professional Direct 57,472 57,472 35,500
Depreciation Staff time 113,010 9,652 908,111 23,184 1,053,957 961,207
Interest Staff bme 29,147 56,880 4,858 219,044 11,669 321,598
Profit or loss on foreign exchange 12,628 12,628
251,178 1,068,481 101,519 9,868,488 513,532 180,852 11,984,051 12,475,103

2022f 2021
E
Auditors' remuneration - audit 42,000 35,500
Auditors' remuneration —other services 44,872 56,502
Depreciation
Owned 1,018,182 951,115
Leased 35,775 10,092
Operating lease rentals 905,500 718,153
Profit on disposal of fixed assets (146,903) (21,713)
8. Analysis ofstaff costs and costs of key management personnel
2022f 2021f
Wages and salaries 2,979,943 3,468,991
Social security costs 297,669 377,421
Pension costs 101,308 133,046
3,378,920 3,979,458

2022 2021
No No
Lead Pastors 2 2
Pastoral,
Missions and Ministries		 37 46
Sunday Services 19 22
Conferences and events 3 4
Administration and support 22 26
83 100
The number of employees
whose employee		 benefits exceeded f60,000:
2022 2021
No No
E130k - E140I&
E100k - E110K
E90k - E100k
j80k - Egok 1
E70k - E80k 3
660k - E70k 3

Tangible fixed assets
Freehold Leasehold Production Vehicles Office Total
land and Improvement equipment equipment
buildinas
E
Cost
At 1 January 2022 8,301,485 1,329,791 6,245,059 349,537 1,476,621 17,702,493
Additions 7,066,269 12,365 234,640 19,328 59,172 7,391,774
Disposals (209,496) (226,778) (47,974) (484,248)
At 31December 2022 15,158,258 1,342,156 6,252,921 320,891 1,535,793 24,610,019
Depreciation
At 1 January
2022		 923,940 572,393 4,436,236 327,495 1,162,976 7,423,040
Charge for the year 336,353 109,336 472,913 14,597 120,758 1,053,957
On disposals (24,375) (115,711) (47,974) (188,060)
At 31December 2022 1,235,918 681,729 4,793,438 294,118 1,283,734 8,288,937
Net book value
31December 2022 13,922,340 660,427 1,459,483 26,773 252,059 16,321,082
Net book value
31December 2021 7,377,545 757,398 1,808,823 22,042 313,645 10,279,453

Debtors
2022 2021
E E
Trade debtors 30,816 21,415.00
Gift Aid recoverable 152,947 58,987
Other debtors 329,242 236,691
Prepayments and accrued income 632,061 1,204,754
Derivative
financial		 instrument 231,795
1,376,861 1,521,847

2022f 2021
E
Cash at bank 743,043 3,719,975
Cash in hand 12,515 6,298
755,558 3,726,273
14. Creditors: amounts falling due within one year
2022f 2021f
Bank loan 311,151 290,604
Obligations
under finance leases		 60,383 47,231
Trade creditors 449,590 893,512
Taxation and social security 404,743 110,636
Other creditors 28,752 55,163
Accruals and deferred income 788,465 380,478
Other loans 700,000
2,743,084 1,777,624

2022
E		 2021f
At 1january 802,828 759,248
Less amount released to income resources (802,828) (759,248)
Plus amount deferred in the year 512,917 802,828
At 31 December 512,917 802,828

Creditors: amount falling due after more than one year
2022 2021
E E
Bank loan 2,534,474 2,811,320
Other loans 3,890,171
Obligations
under finance leases		 46,183 25,445
Accruals and deferred income 557,556
6,470,828 3,394,321
Analysis of bank, other loans and finance leases: 2022f 2021f
Debt can be analysed as falling due
In one year or less, or on demand 371,534 337,835
Between one and two years 334,751 318,746
Between two and five years 6,007,170 483,362
In five years or more 128,907 2,034,657
6,842,362 3,174,600

Unrestricted Restricted 2022 Unrestricted Restricted 2021
Funds Funds Total Funds Funds Total
E E E E E E
Tangible fixed assets 13,848,507 2,472,575 16,321,082 8,753,078 1,526,375 10,279,453
Current assets 1,836,927 337,740 2,174,667 4,329,282 987,675 5,316,957
Current liabilities (2,743,084) (2,743,084) (1,777,624) (1,777,624)
Non-current
liabilities		 (6,470,828) (6,470,828) (3,394,321) (3,394,321)
Fund Total 6,471,522 2,810,315 9,281,837 7,910,415 2,514,050 10,424,465
Reconciliation of funds
Total funds brought
forward at 1january 7,910,415 2,514,050 10,424,465 8,032,140 2,541,348 10,573,488
(1,438,893) 296,265 (1,142,628) (121,725) (27,298) (149,023)
Total funds carried
forward at 31 December 6,471,522 2,810,315 9,281,837 7,910,415 2,514,050 10,424,465

Summary of the activity ofthe restricted
fu		 nds for 2022 w as as follows:
Balance Balance
Brought carried
forward Incoming Outgoing forward
2022 resources resources Depreciation 2022
E E E E E
Spring the Trap 68,796 60,867 (50,066) 79,597
Because We Can 52,604 408,091 (211,650) 249,045
Building Fund 2,386,872 172,681 (10,319) (76,660) 2,472,574
Youth Services 4,821 21,369 (20,847) 5,343
Love Your Neighbour 957 99,033 (96,234) 3,756
Total 2,514,050 762,041 (389,116) (76,660) 2,810,315
Summary of the activity of the restricted
fu		 nds for 2021 w as as follows:
Balance Balance
Brought carried
forward Incoming Outgoing forward
2021 resources resources Depreciation 2021
E E E E
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

2022f 2021f
Operating leases which expire:
Within one year 665,070 844,724
Between one and five years 1,842,839 2,124,598
In over five years 776,250 1,158,750
3,284,159 4,128,072
20. Reconciliation
of		 net movement net movement net movement in funds to net cash flow from operating activities
2022f 2021f
Net movements
in funds		 (1,142,627) (149,023)
Deduct interest
income shown		 in investing activities (111) (3,636)
Add back interest expenditure shown in investing activities 321,598 71,914
Add back depreciation charges 1,053,957 961,207
Profit on disposal of tangible asset (146,903) (21,713)
Decrease in stocks 26,589 21,277
Decrease
in debtors		 144,986 703,612
Decrease
in creditors		 (325,795) (665,955)
Net cash provided by operating activities (68,306) 917,683

New
At start of finance At end of
year Cash flows leases year
Cash at bank and in hand 3,726,273 (2,970,715) 755,558
Borrowings excluding overdrafts (3,101,924) (4,333,872) (7,435,796)
Obligations under finance leases (72,676) 91,959 (125,849) (106,566)
551,673 (7,212,628) (125,849) (6,786,804)

2022 2021
E E
Ray Newton: Salary including NI — Legal Counsel 26,811 28,145
David Whitewood: Salary including NI 34,092 67,881
Total 60,903 96,026