##
|||||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|||
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|~|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|||
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||||||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|
##
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|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|
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