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2021-12-31-accounts

REGISTERED COMPANY NUMBER: 06585832 (England and Wales) REGISTERED CHARITY NUMBER: 1124519

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

KERITH COMMUNITY CHURCH

Brindley Millen Ltd Chartered Accountants and Statutory Auditors

167 Turners Hill Cheshunt Hertfordshire EN8 9BH

KERITH COMMUNITY CHURCH

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 December 2021

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 7
Statement of Financial Activities 8
Balance Sheet 9
Cash Flow Statement 10
Notes to the Cash Flow Statement 11
Notes to the Financial Statements 12 to 22
Detailed Statement of Financial Activities 23 to 24

KERITH COMMUNITY CHURCH

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Mission and Vision

The churches vision statement is "Helping people find their way back to God through communities growing in their love of God and their love for people". This is done through reaching out to these communities with the love of Christ through weekly meetings in our buildings, social justice activities and small group gatherings in the community as well as sowing into the wider national and international community with funds and resources.

Organisation

The primary responsibility for ensuring that Kerith Community Church fulfils its mission has been delegated by the Company Directors and Charity Trustees to the Elders. The Trustees are comprised of two Elders and three other church members, who meet at least three times a year, assisted by the Company Secretary/Operations Director and Executive Pastor.

The Elders meet monthly, under the chairmanship of the Senior Pastor. The Senior Pastor is responsible for the day to day running of the church. Under the oversight of The Elders, the day-to-day responsibilities for running much of the church activities and ministries are further delegated to the Coordination Team, led by the Executive Pastor. The Coordination Team comprises, The Senior Pastor, Executive Pastor, Operations Director, Sites Director and Ministries Director.

Financial matters are also dealt with at a monthly finance meeting between the Coordination Team with actions cascaded to the Management Team.

Public benefit

The Trustees consider the Charity Commission guidance on public benefit and consider that the activities of the Charity meet its objectives and provide a benefit to the public.

FINANCIAL REVIEW

Financial position

Income/ Expenditure

Total income for the year was £1,633,617 compared to 2020 £1,889,927. £1,469,731 of this income was received from the church community as general giving (2020: £1,597,616).

Overall expenditure for the year increased from £1,570,078 to £1,790,578 and resulted in a deficit of £156,961 (2020:£319,849).

Funds and Balance Sheet

The net book value of tangible fixed assets at the end of the year of £4,444,705 (2020: £3,286,151) after deducting a depreciation charge of £183,665 for the year (2020: £171,971).

Cash at bank funds held at the year-end were £535,538 (2020: £877,037) of which £132,274 relates to restricted funds.

The trustees were satisfied with the year-end position, on the understanding that the identified loss for the period could be attributed to the previously unplanned investment in a permanent building for the Farnborough site.

Investment policy and objectives

Due to the relatively short time period between the receipt of funds and their expenditure, all the funds, are held in cash.

Reserves policy

The trustees have set a policy of building up general reserves to the value £300,000 to cover any unforeseeable needs of the church, based on the running costs of the organisation for 3 calendar months. The church is dependent upon its regular Sunday offerings, together with Tax reclaimed through Gift Aid and donations to fund ongoing ministries, as at 31st December 2021, the designated reserve stood at £288,000. Any previous excesses within the funds accrued during the year have been reinvested into the organisation to maintain the infrastructure and facilities of the estate. The position is continually monitored by the trustees who have committed 2.5% of the monthly income to build up the reserves to the budgeted level.

Page 1

KERITH COMMUNITY CHURCH

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

FINANCIAL REVIEW

Funds

All funds include an accrual from the Income Tax Refund not yet received, which is expected to be received within the next 12 months. Funds are allocated from Offerings, Tax Refunds and Bank Interest, but not from Gift Day offerings.

Mission and Social Justice

12.6% of all income was used to fund these activities which are made up of funds provided for Mission activity, acts 2 (pastoral community care), national and international partnerships and Social Justice (Revive) ministries.

Donations are made to individuals and organisations; both in the UK and overseas, directly involved in Christian work, relief work, or work within the community and whose objectives the Elders consider to be in keeping with those of this church. Social Justice includes all activities where funds are provided to support those suffering financial hardship or similar social need. This includes grants made to members of the local community, as a result of requests made by local Social Services, and who have demonstrated a financial need.

Donations Policy

Kerith Community Church supports organisations and individuals (both domestic and foreign) and gifts are considered by the trustees on the basis of need whilst ensuring that the charity's objectives are met. There are no upper or lower limits of support but are reviewed and agreed upon by the elders subject to budgetary control and adequate reporting.

In addition, special collections are occasionally taken to support specific causes.

Other policies and procedures remained in place during the year:

  1. Safeguarding policy and procedures associated with children's and youth activities overseen and managed by the church`s Safeguarding Officer

  2. Equipment set up and set down health and safety procedures associated with all the church's events, including Sunday services, ministry events and other events including specific and generic risk assessments held by the Site Services department

  3. First aid, fire and evacuation procedures during Sunday meetings and ministry events overseen by the Site Services department and building administrators

  4. Income protection and recording policies as advised in best practice through our auditors and insurers.

  5. Data back-up for Information Technology systems held by the Site Services department

  6. Formal staff commitment setting process annually with Line Management including a 6 monthly review

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, the Memorandum and Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

All Elders, with the exception of the Senior & Executive Pastor, are appointed from church members who display eldership characteristics and leadership skills. After going through a process to ascertain their suitability, the church is given a period of notice after which, subject to no sustainable objection, the candidate is recognised as an Elder and may be appointed a Trustee and Company Director.

In addition, trustees/company directors are also appointed from church members with professional experience and leadership skills, in areas such as finance, law, HR, facilities management etc.

Salaries and other staff benefits are agreed by the Salary Review Group, who meet as required, but at least once a year. This group is made up of one Trustee, the HR Manager and currently three members of the church.

Buildings: The Kerith Centre, nearby Studio, K2 and three freehold residential properties are owned by Kerith Community Church. In addition to this we lease a small community hall in Dedworth Windsor, and in September 2020 were also able to secure a full 10-year lease on the 2 warehouse units opposite the community hall.

Page 2

KERITH COMMUNITY CHURCH

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Bracknell

A number of changes to accommodate our Revive (Social Justice) Ministries were carried out in the K2 building and K2 house on our Bracknell site throughout 2021, these included re purposing and developing the formally residential K2 house into a Revive learning centre including newly fitted life skills training kitchen, meeting room, offices, counselling room and client shower room. In addition to this the Foodbank stores were permanently rehomed to the rear of K2 and K2 house gardens with the installation of 2 portacabin storage units in the grounds and converted sorting area to the rear of the K2 hall.

These changes have meant that all Revive ministries can now run out of one area and centre around a weekday café in the K2 building.

Farnborough

In March 2021 Kerith purchased a disused Warehouse in Farnborough to redevelop as a permanent home for its Farnborough Site, throughout 2021 Phase one of the redevelopment of this building took place, encompassing an initial fund-raising initiative to meet the costs of change of use, building design plans, making the building safe and fit for purpose, basic decoration and redevelopment of first phase usable areas and installation of security and production equipment.

The primary works carried out during this phase were, the installation of audio visual equipment to facilitate Sunday meetings including LED screen, PA and IT equipment, Renovation of 3 areas to provide Kids break out rooms, including new carpets, paint, toys and equipment and lighting, Replacement of broken windows, redecoration of toilet areas, New water main and associated plumbing works, electrical re wiring of usable areas and new PCB boards, Installation of new Intruder alarm system, Fire detection system and CCTV, New external doors, Removal of asbestos present in currently unused area of building, repositioning of front gates, new external signage and waste clearance from site. The building was granted change of use and signed off by building control in the first week of December 2021 and the first Sunday meeting held the following Sunday. Throughout 2022 the site team, Elders and Trustees will begin to plan the Phase 2 redevelopment including long term objectives and fundraising requirements.

Windsor

In addition to the works on the new Farnborough building, we now have a medium-term permanent home for our Windsor site offering all the space we require to carry out a wide range of ministry activities in addition to our Sunday gatherings. In 2021 significant redevelopment also took place at the new Windsor site to include re carpeting and re painting of public welcome and kids' areas and installing new technical equipment, heating and additional insulation measures to the main meeting areas and kids spaces.

Impact of Covid : 2021 continued to be a difficult and unprecedented year for all organisations and communities following the arrival of the Covid virus in 2020 and subsequent Government led lockdowns. As a result, the Trustees continued to closely monitor our income and expenditure in line with the constant changing circumstance and subsequent uncertainty for return to relative normality and full in person gatherings. Alongside this the Site and Central teams worked hard to adapt to the constant changing needs of both the Church and community whilst planning next steps in a revised understanding of what Church post Covid may need to look like and how it would function. Despite this uncertainty God continued to bless us with resource and finances through our communities which enabled us to both meet our planned and budgeted obligations and have sufficient funds in reserves to enable the un-budgeted pur chase of the building in Farnborough.

Volunteers are an essential part of church life, with most activities being supported by volunteers. It is estimated that over 80% of the church attendance support the ministry of the church through volunteering with a significant number of new volunteers coming forward to offer both community support to the Revive ministries and practical help towards the new building projects throughout 2022.

Key management remuneration

Salaries and remuneration for key management personnel are set by the Trustees following consultation and guidance from the Salaries Review board of the Church Community with relevant experience in charity and commercial industry. Benchmarking is carried out every 3 - 5 years to ensure all salaries remain consistent with similar sized and focused organisations.

Page 3

KERITH COMMUNITY CHURCH

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk Management

The Trustees continually review the risks and have a risk management strategy in place to ensure appropriate procedures are in place to identify, monitor and review these risks on a regular basis.

A continual review of the risks both financial and operational the charity may face is performed by the Operations Director in conjunction with the Trustees, enabling the establishment of systems and procedures to mitigate any risks that have been identified.

Procedures are implemented through consultation with the Trustees to minimise any potential impact on the charity should those risks materialise.

Major risks are considered to be those that may have a significant impact on:

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

06585832 (England and Wales)

Registered Charity number

1124519

Registered office

The Kerith Centre Church Road Bracknell Berkshire RG12 1EH

Trustees

J Davis Chair S Benham Senior Pastor D Klitgaard Elder Mrs D Seidu Treasurer J M Whitton

Company Secretary

G Scull

Auditors

Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH

Bankers

HSBC Bank plc 26 Broad Street Reading Berkshire RG1 2BU

Page 4

KERITH COMMUNITY CHURCH

REPORT OF THE TRUSTEES

for the Year Ended 31 December 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those 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.

In so far as the trustees are aware:

AUDITORS

The auditors, Brindley Millen Ltd, will be stepping down at the forthcoming Annual General Meeting.

May 31, 2022 Approved by order of the board of trustees on ............................................. and signed on its behalf by:

Simon Benham (May 31, 2022 16:38 GMT+1)

..............................................................................

S Benham - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KERITH COMMUNITY CHURCH

Opinion

We have audited the financial statements of Kerith Community Church (the 'charitable company') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Report of the Trustees.

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:

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KERITH COMMUNITY CHURCH

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

Our 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 a Report of the Independent Auditors 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 our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are those covered by the Statement of Recommended Practice for Charities (SORP 2019) and the Charities Act 2011. We assessed the risk of material misstatement in respect of fraud by making enquiries of management and trustees and by testing the implementation of accounting controls in place.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above by making enquiries with key personnel and reviewing relevant documentation such as minutes of Trustee meetings and correspondence with regulatory bodies. We considered the risk of fraud through management override by incorporation testing of journal entries and reviewing any requirements to meet performance targets. We also considered, and tested for, the possibility of unauthorised payments to related parties.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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 auditors' 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.

mwbrindley

mwbrindley (Jun 1, 2022 12:21 GMT+1)

Maurice Brindley BSc FCA (Senior Statutory Auditor) for and on behalf of Brindley Millen Ltd Chartered Accountants and Statutory Auditors 167 Turners Hill Cheshunt Hertfordshire EN8 9BH Jun 1, 2022 Date: .............................................

Page 7

KERITH COMMUNITY CHURCH

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 December 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Church Ministries
Mission Support and Social Justice
Bookshop
Investment income
3
Other income
Total
EXPENDITURE ON
Charitable activities
5
Church Ministries
Mission Support and Social Justice
Bookshop
Total
NET INCOME/(EXPENDITURE)
Transfers between funds
17
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
1,160,609
109,571
-
481
1,466
1,535
1,273,662
1,434,829
28,029
592
1,463,450
(189,788)
(196,093)
(385,881)
3,795,260
3,409,379		 Restricted
funds
£
309,122
-
50,833
-
-
-
359,955
154,490
172,638
-
327,128
32,827
196,093
228,920
343,467
572,387		 31.12.21
Total
funds
£
1,469,731
109,571
50,833
481
1,466
1,535
1,633,617
1,589,319
200,667
592
1,790,578
(156,961)
-
(156,961)
4,138,727
3,981,766		 31.12.20
Total
funds
£
1,597,616
126,506
122,732
1,447
3,338
38,288
1,889,927
1,435,101
134,423
554
1,570,078
319,849
-
319,849
3,818,878
4,138,727

The notes form part of these financial statements

Page 8

KERITH COMMUNITY CHURCH (REGISTERED NUMBER: 06585832)

BALANCE SHEET

31 December 2021

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Stocks
12
Debtors
13
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one year
15
NET ASSETS
FUNDS
17
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
3,035,525
1,045
28,035
403,264
432,344
(58,489)
373,855
3,409,380
-
3,409,380		 Restricted
funds
£
1,409,180
-
-
132,274
132,274
(48,999)
83,275
1,492,455
(920,069)
572,386		 31.12.21
Total
funds
£
4,444,705
1,045
28,035
535,538
564,618
(107,488)
457,130
4,901,835
(920,069)
3,981,766
3,409,380
572,386
3,981,766		 31.12.20
Total
funds
£
3,286,151
1,423
25,229
877,037
903,689
(51,113)
852,576
4,138,727
-
4,138,727
3,795,260
343,467
4,138,727

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

May 31, 2022 The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

Simon Benham (May 31, 2022 16:38 GMT+1)............................................. S Benham - Trustee

.............................................Jonathan Davis (May 31, 2022 16:59 GMT+1) J Davis - Trustee

The notes form part of these financial statements

Page 9

KERITH COMMUNITY CHURCH

CASH FLOW STATEMENT for the Year Ended 31 December 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash provided by financing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 31.12.21
£
57,048
(26,863)
30,185
(1,342,219 )
1,466
(1,340,753 )
995,000
(25,931)
969,069
(341,499)
877,037
535,538		 31.12.20
£
488,057
(319)
487,738
(100,023)
3,338
(96,685)
-
-
-
391,053
485,984
877,037

The notes form part of these financial statements

Page 10

KERITH COMMUNITY CHURCH

NOTES TO THE CASH FLOW STATEMENT for the Year Ended 31 December 2021

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
31.12.21 31.12.20
£ £
Net (expenditure)/income for the reporting period (as per the Statement of
Financial Activities) (156,961) 319,849
Adjustments for:
Depreciation charges 183,665 171,971
Loss on disposal of fixed assets - 545
Interest received (1,466) (3,338)
Interest paid 26,863 319
Decrease in stocks 378 121
Increase in debtors (2,806) (3,418)
Increase in creditors 7,375 2,008
Net cash provided by operations 57,048 488,057
  1. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)
At 1.1.21 Cash flow At 31.12.21
£ £ £
Net cash
Cash at bank and in hand 877,037 (341,499) 535,538
877,037 (341,499) 535,538
Debt
Debts falling due within 1 year - (49,000) (49,000)
Debts falling due after 1 year - (920,069) (920,069)
- (969,069) (969,069)
Total 877,037 (1,310,568 ) (433,531)

The notes form part of these financial statements

Page 11

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 December 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements and assessment of going concern

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The accounts are prepared on an accruals basis and include income and expenditure as they are earned or incurred.

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The financial statements are presented in sterling (£).

Critical accounting judgements and key sources of estimation uncertainty

In preparing financial statements it is necessary to make certain judgements, estimated and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements.

Useful economic life of tangible fixed assets:

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Charitable activities

Support costs are allocated in direct relation to the allocation of the salary cost of each activity.

Tangible fixed assets

Only equipment costing £1,000 or over is capitalised, with depreciation charged at the following annual rates in order to write off each asset over its estimated useful life:

Freehold property - permanent buildings over a 50 year period
- temporary buildings over a 5 year period
Improvements to property - 10% on cost
Equipment - 15% on cost
Fixtures and Fittings - 20% and 6.67% on cost
Motor Vehicles - 20% on cost
Computer equipment - 33.3% on cost

The carrying values are reviewed at the year end for impairment if circumstances indicate that the full carrying value may not be recoverable.

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Net current assets

Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash, current bank accounts and deposit bank accounts with no withdrawal limitations.

continued...

Page 12

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

1. ACCOUNTING POLICIES - continued

Net current assets

Creditors

Creditors are recognised where then charity has a present obligation resulting from a past event that will result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated Funds, shown in the notes, principally represent funds set aside by the church on a regular basis to meet certain specific objectives together with the capital assets of the church. These are described in greater detail in the Trustees' Report.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Donated goods

Material donated goods and services are valued at current market value and are included in the financial statements as income and expenditure or assets.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially settled at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2. DONATIONS AND LEGACIES

3.

Offerings & Donations
Gift Days & Special Offerings
Gift aid
Legacies
INVESTMENT INCOME
Deposit account interest		 31.12.21
£
951,327
264,612
253,792
-
1,469,731
31.12.21
£
1,466		 31.12.20
£
1,033,970
252,968
281,317
29,361
1,597,616
31.12.20
£
3,338

continued...

Page 13

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

4.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Ministry
Church Ministries
Rent and other income
Church Ministries
Ministry
Mission Support and Social Justice
Grants
Mission Support and Social Justice
Bookshop
Bookshop
Grants received, included in the above, are as follows:
Albert Gubay Foundation
Alfa Chemicals
Berkshire Community Foundation
Bracknell Forest Borough Council
Christians Against Poverty
Groundwork UK
Defra
Englefield Charitable Trust
National Lottery Community Fund
Stewardship
St Joseph's
Trussell Trust
Other grants < £1,000
5.
CHARITABLE ACTIVITIES COSTS
Church Ministries
Mission Support and Social Justice
Bookshop		 Direct
Costs
£
1,554,818
200,667
592
1,756,077		 31.12.21
£
50,746
58,825
-
50,833
481
160,885
31.12.21
£
-
-
9,333
20,000
-
1,000
-
3,000
-
-
17,500
-
-
50,833
Support
costs (see
note 6)
£
34,501
-
-
34,501		 31.12.20
£
83,333
43,173
10,000
112,732
1,447
250,685
31.12.20
£
22,500
2,000
-
-
3,500
-
34,900
-
3,000
20,000
-
24,432
2,400
112,732
Totals
£
1,589,319
200,667
592
1,790,578

6. SUPPORT COSTS

Church Ministries

Governance costs £ 34,501

continued...

Page 14

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.12.21 31.12.20
£ £
Auditors' remuneration 5,610 5,610
Depreciation - owned assets 183,665 171,971
Deficit on disposal of fixed assets - 545

8. TRUSTEES' REMUNERATION AND BENEFITS

Total Trustees remuneration was £76,757. (2020: £73,130)

One trustee received the following sums under Contracts of Employment in respect of their work for the church: S Benham £76,757 (Including Pension contributions of £6,299)

The charity consider its key management personnel to comprise the trustees, Executive Pastor and Operations Director. Total trustee remuneration and benefits for the year are £185,486 (2020: £156,660).

Trustees' expenses

The church has a Professional Liability policy with a limit of £1,000,000 for all claims in aggregate at a cost of £3,173 (2020: £2,941) and covering all Trustees.

Expenses either reimbursed to, or paid on behalf of, Directors and related parties amounted to £3,501 (2020: £2,704). Payments were mainly in respect of travel expenses, refreshments for pastoral meetings and conferences.

9.

STAFF COSTS

STAFF COSTS
31.12.21 31.12.20
£ £
Wages and salaries 753,449 754,363
Social security costs 53,751 52,979
Other pension costs 73,921 74,561
881,121 881,903
The average monthly number of employees during the year was as follows:
31.12.21 31.12.20
Ministry 15 14
Administration 12 11
27 25
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
31.12.21 31.12.20
£60,001 - £70,000 1 1

Pension costs represent the premiums paid to a non-contributory Group Personal Pension Plan offered to all eligible employees, to which the church contributes 10% of salary.

Page 15

continued...

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Church Ministries
Mission Support and Social Justice
Bookshop
Investment income
Other income
Total
EXPENDITURE ON
Charitable activities
Church Ministries
Mission Support and Social Justice
Bookshop
Total
NET INCOME
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
11.
TANGIBLE FIXED ASSETS
COST
At 1 January 2021
Additions
At 31 December 2021
DEPRECIATION
At 1 January 2021
Charge for year
At 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020		 Freehold
property
£
4,528,815
5,841
4,534,656
1,543,547
99,626
1,643,173
2,891,483
2,985,268		 Unrestricted
funds
£
1,299,621
126,506
-
1,447
3,338
38,288
1,469,200
1,383,770
22,308
554
1,406,632
62,568
113,750
176,318
3,618,942
3,795,260
Long
leasehold
£
-
1,306,392
1,306,392
-
17,654
17,654
1,288,738
-		 Restricted
funds
£
297,995
-
122,732
-
-
-
420,727
51,331
112,115
-
163,446
257,281
(113,750)
143,531
199,936
343,467
Improvements
to
property
£
71,011
-
71,011
7,101
7,101
14,202
56,809
63,910		 Total
funds
£
1,597,616
126,506
122,732
1,447
3,338
38,288
1,889,927
1,435,101
134,423
554
1,570,078
319,849
-
319,849
3,818,878
4,138,727
Equipment
£
224,923
29,986
254,909
143,196
24,946
168,142
86,767
81,727

Page 16

continued...

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

11. TANGIBLE FIXED ASSETS - continued

Fixtures
and
fittings
£
COST
At 1 January 2021
554,154
Additions
-
At 31 December 2021
554,154
DEPRECIATION
At 1 January 2021
405,306
Charge for year
31,399
At 31 December 2021
436,705
NET BOOK VALUE
At 31 December 2021
117,449
At 31 December 2020
148,848
12.
STOCKS
Stocks
13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other debtors
Gift aid receivable
Prepayments
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 16)
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses		 Motor
vehicles
£
20,694
-
20,694
14,296
2,939
17,235
3,459
6,398		 Computer
equipment
£
10,193
-
10,193
10,193
-
10,193
-
-
31.12.21
£
1,045
31.12.21
£
5,981
16,309
5,745
28,035
31.12.21
£
49,000
32,059
15,429
-
11,000
107,488		 Totals
£
5,409,790
1,342,219		 Totals
£
5,409,790
1,342,219
6,752,009
2,123,639
183,665
2,307,304
4,444,705
3,286,151
31.12.20
£
1,423
31.12.20
£
2,917
16,226
6,086
25,229
31.12.20
£
-
26,298
16,703
24
8,088
51,113
51,113

continued...

Page 17

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 16)
16.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instalments
17.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Properties and capital equipment
Designated reserve
Restricted funds
Restricted capital equipment
Kerith Vision Fund
Pastor's discretionary fund
Other restricted funds
Foodbanks Emergency Fund
Farnborough Building
TOTAL FUNDS		 At 1.1.21
£
209,035
3,170,225
416,000
3,795,260
115,925
87,718
1,468
132,441
5,915
-
343,467
4,138,727		 Net
movement
in funds
£
(55,486)
(134,701)
400
(189,787)
(75,543)
(33,575)
(1,343)
686
(2,052)
144,653
32,826
(156,961)		 31.12.21
£
920,069
31.12.21
£
49,000
49,000
147,000
724,069
Transfers
between
funds
£
(67,369)
-
(128,724)
(196,093)
393,889
(53,143)
(125)
3,988
(3,863)
(144,653)
196,093
-		 31.12.20
£
-
31.12.20
£
-
-
-
-
At
31.12.21
£
86,180
3,035,524
287,676
3,409,380
434,271
1,000
-
137,115
-
-
572,386
3,981,766

continued...

Page 18

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

17. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Properties and capital equipment
Designated reserve
Restricted funds
Restricted capital equipment
Kerith Vision Fund
Pastor's discretionary fund
Other restricted funds
Foodbanks Emergency Fund
Farnborough Building
TOTAL FUNDS		 Incoming
resources
£
1,273,262
-
400
1,273,662
-
4,887
-
181,656
-
173,412
359,955
1,633,617		 Resources
expended
£
(1,328,748 )
(134,701)
-
(1,463,449 )
(75,543)
(38,462)
(1,343)
(180,970)
(2,052)
(28,759)
(327,129)
(1,790,578 )		 Movement
in funds
£
(55,486)
(134,701)
400
(189,787)
(75,543)
(33,575)
(1,343)
686
(2,052)
144,653
32,826
(156,961)

Comparatives for movement in funds

Unrestricted funds
General fund
Properties and capital equipment
Designated reserve
Restricted funds
Restricted capital equipment
Kerith Vision Fund
Pastor's discretionary fund
Other restricted funds
Foodbanks Emergency Fund
TOTAL FUNDS		 At 1.1.20
£
98,506
3,287,136
233,300
3,618,942
71,507
69,237
4,783
54,409
-
199,936
3,818,878		 Net
movement
in funds
£
207,076
(144,508)
-
62,568
(28,008)
162,642
(13,315)
102,256
33,706
257,281
319,849		 Transfers
between
funds
£
(96,547)
27,597
182,700
113,750
72,426
(144,161)
10,000
(24,224)
(27,791)
(113,750)
-		 At
31.12.20
£
209,035
3,170,225
416,000
3,795,260
115,925
87,718
1,468
132,441
5,915
343,467
4,138,727

continued...

Page 19

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

17. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Properties and capital equipment
Restricted funds
Restricted capital equipment
Kerith Vision Fund
Pastor's discretionary fund
Other restricted funds
Foodbanks Emergency Fund
TOTAL FUNDS		 Incoming
resources
£
1,469,200
-
1,469,200
-
201,223
-
172,163
47,341
420,727
1,889,927		 Resources
expended
£
(1,262,124 )
(144,508)
(1,406,632 )
(28,008)
(38,581)
(13,315)
(69,907)
(13,635)
(163,446)
(1,570,078 )		 Movement
in funds
£
207,076
(144,508)
62,568
(28,008)
162,642
(13,315)
102,256
33,706
257,281
319,849

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Properties and capital equipment
Designated reserve
Restricted funds
Restricted capital equipment
Kerith Vision Fund
Pastor's discretionary fund
Other restricted funds
Foodbanks Emergency Fund
Farnborough Building
TOTAL FUNDS		 At 1.1.20
£
98,506
3,287,136
233,300
3,618,942
71,507
69,237
4,783
54,409
-
-
199,936
3,818,878		 Net
movement
in funds
£
151,590
(279,209)
400
(127,219)
(103,551)
129,067
(14,658)
102,942
31,654
144,653
290,107
162,888		 Transfers
between
funds
£
(163,916)
27,597
53,976
(82,343)
466,315
(197,304)
9,875
(20,236)
(31,654)
(144,653)
82,343
-		 At
31.12.21
£
86,180
3,035,524
287,676
3,409,380
434,271
1,000
-
137,115
-
-
572,386
3,981,766

continued...

Page 20

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

17. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Properties and capital equipment
Designated reserve
Restricted funds
Restricted capital equipment
Kerith Vision Fund
Pastor's discretionary fund
Other restricted funds
Foodbanks Emergency Fund
Farnborough Building
TOTAL FUNDS		 Incoming
resources
£
2,742,462
-
400
2,742,862
-
206,110
-
353,819
47,341
173,412
780,682
3,523,544		 Resources
expended
£
(2,590,872 )
(279,209)
-
(2,870,081 )
(103,551)
(77,043)
(14,658)
(250,877)
(15,687)
(28,759)
(490,575)
(3,360,656 )		 Movement
in funds
£
151,590
(279,209)
400
(127,219)
(103,551)
129,067
(14,658)
102,942
31,654
144,653
290,107
162,888

Unrestricted funds

Properties and capital equipment fund represents the value of all unrestricted capital assets.

Conveyancing designated fund represented monies set aside by the trustees for the Sandhurst site pastor's house move, this fund was spent in the year.

Designated reserve represents monies set aside in line with Charity Commission guidelines to ensure smooth running of the charity should there be any interruption to operations.

Flow Church Designated fund represents monies set aside for Flow church plant.

Restricted funds

Restricted capital equipment represents the value of capital assets purchased with restricted monies, these assets are depreciated on an annual basis.

Kerith Vision Fund represents monies given for the set up of new sites and for improvements to buildings and equipment in current use.

Other restricted funds are a group of restricted funds which represent monies received and expenses for varying other restricted purposes including; gifts made to other charities, assisting church members in need to pay for winter fuel, travel costs for youth pastor, assisting women's ministry in other countries and assisting churches and church plants in developing nations.

Transfers between funds

During the year the following transfers were made:

All additions and disposals of capital items have been transferred to either the Properties and capital equipment fund or the Restricted capital equipment fund, dependent upon whether the asset was purchased with restricted funding, this included purchases made with the General and Vision fund.

continued...

Page 21

KERITH COMMUNITY CHURCH

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

18. RELATED PARTY DISCLOSURES

During the year employment costs of £21,300 (2020: £29,930) and pension costs of £2,130 (2020: £2,973) were paid to Mrs C Benham, the spouse of a trustee. This remuneration was in relation to her employment for the charity.

Page 22