**Charity registration number 1124519** **Company registration number 06585832 (England and Wales)** ## **KERITH COMMUNITY CHURCH** **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **KERITH COMMUNITY CHURCH** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Trustees**|J Davis - Chair| |---|---| ||S Benham - Senior Pastor| ||D Klitgaard - Elder| ||D Seidu - Treasurer| ||J M Whitton| |**Secretary**|G Scull| |**Charity number**|1124519| |**Company number**|06585832| |**Registered office**|The Kerith Centre| ||Church Road| ||Bracknell| ||Berkshire| ||RG12 1EH| |**Auditor**|Jacob Cavenagh & Skeet| ||5 Robin Hood Lane| ||Sutton| ||Surrey| ||SM1 2SW| |**Bankers**|HSBC Bank Plc| ||26 Broad Street| ||Reading| ||Berkshire| ||RG1 2BU| ## **KERITH COMMUNITY CHURCH** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 6| |Independent auditor's report|7 - 9| |Statement of financial activities|10| |Balance sheet|11| |Statement of cash flows|12| |Notes to the financial statements|13 - 26| ## **KERITH COMMUNITY CHURCH** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ The trustees present their annual report and financial statements for the year ended 31 December 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "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 church's 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. ## **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. ## **Volunteers** 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. ## **Achievements and performance** ## **Bracknell** In early 2022 the Trustees took the decision to sell one of the 3 Kerith owned residential properties located in Bracknell (30 Farnham Close) The primary use of the property had historically been to house international students on Keriths Academy program however this program ceased in 2017 and the sporadic rental of rooms within the house since that time has been insufficient to cover its running costs. In view of the forecast deficit in income against expenditure (largely to support the purchase of Caroline House in Farnborough, 10-year lease in Winsor and the increased associated building running costs) for 2022 and 2023 the Trustees took the decision to release the asset and secure its funds in reserves as insurance to cover these increased overheads whilst the sites grow to their full potential. ## **Farnborough** Throughout 2022 we have seen the continued piecemeal redevelopment of the Caroline House, Farnborough Site to create more useable space within some of the previously dilapidated areas, whilst also planning the longer term rebuilding of the Site which has included the engagement of an architect to draw up feasibility plans for a new or redeveloped building, carrying out initial surveys to support any potential planning issues involved and mapping out a long term fundraising strategy and initiative to support the works. These initial works and costs have been largely funded by continued financial gifts to the sites Vision funds promoted via our Vision fund gift days. ## **Windsor** 2022 saw the completion of the phase 2 redevelopment of the Windsor site again funded through their Site Vision fund gift days, culminating in the installation of new automatic double doors at the front of the building as well as the removal of some internal walls and associated redecoration to create an open plan welcome area and reception as well as a more straightforward visitor journey through to the auditorium area. Mid-week ministry work on the site has continued to grow with weekly Sparklers (toddler group) gatherings as well as a growing Social Justice presence through various support groups throughout the week. Regular Sunday attendance has also increased throughout 2022 with the focus in 2023 turning to plans for accommodating increased numbers both at Windsor and across the other mainland sites. - 1 - ## **KERITH COMMUNITY CHURCH** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **West Wight** West Wight continues to support a small community in the Freshwater area of the Isle of Wight through the rental of a town hall space in Freshwater on a Sunday and as required at other times. Summer 2022 saw a change of leadership in the site as its founding pastor moved on to new ventures and the sites existing assistant pastor stepped into the role. In the following months discussions began on the future of Kerith on the island and how we could reach more people through our ministry. As part of these discussions’ options are being investigated for expanding the site in 2023 to a more central and densely populated area of the island. **Continued impact of Covid** : 2022 continued to be a difficult and unprecedented year for all organisations and communities following the arrival of the Covid virus in 2020 and whilst we continued to see the community return in greater numbers to physical gatherings, progress has been slow and the impact of 2 years of Covid and sporadic lockdowns has greatly effective the speed of growth at each of the new sites we had anticipated and forecast prepandemic. 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. 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 exceed our year end expectations based on a fairly high deficit forecast. **Buildings** : The Kerith Centre, nearby Studio, K2, Caroline House Farnborough Site and two freehold residential properties are owned by Kerith Community Church. In addition to this we lease a small community hall in Dedworth Windsor, and in November 2022 were also able to secure a full 10-year lease on the 2 warehouse units opposite the community hall. ## **Financial review** ## **Income/ Expenditure** Total income for the year was £2,230,373 an increase of 36% compared to 2021 (£1,633,617). £1,835,425 of this income was received from the church community as general giving (2021: £1,469,731) an increase of 25% and £248,810 was the surplus on disposal of a property. Overall expenditure for the year increased by 7% however, coupled with the increase in income for general and gift day funds, has resulted in a surplus net income of £168,823 (2021: net deficit £156,961). ## **Funds and Balance Sheet** The net book value of tangible fixed assets at the end of the year were £4,152,676 (2021: £4,444,705) Cash at bank funds held at the year-end were £875,489 (2021: £535,538) of which £234,412 relates to restricted funds. Total funds at the year end were £4,150,589 of which £254,395 were restricted. In view of the reduction in the forecast deficit for the year the trustees were satisfied with the year-end position in net income. ## **Reserves policy** The trustees have set a policy of building up general reserves to the value of £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 2022, the designated reserve stood at £639,402 following the sale of the Kerith owned residential property 30 Farnham Close (£372,000 after costs). The Trustees took the decision to sell this property and secure the funds in reserves in light of the anticipated further deficit in income against expenditure forecast for 2022 (£180,000). Any excesses within the funds accrued during the year will be used to cover our deficit losses and maintain our operating stability as well as reinvested into the organisation to maintain the infrastructure and facilities of the estate. The position is continually monitored by the trustees and adjusted as necessary. The church has general reserves of £41,615 (2021:£88,623) after restricted and designated reserves are considered. - 2 - ## **KERITH COMMUNITY CHURCH** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **Going concern review** The Trustees acknowledge that the full extent and duration of the impact of COVID 19 and its subsequent impact on pre-pandemic forecast growth is currently unknown, and depends on future developments that are uncertain and unpredictable, and have considered this in performing their going concern assessment. Despite the impact of COVID 19, the Trustees are confident in the going concern status of the charity for the foreseeable future, because of a number of factors. • The budget for next year does show a large deficit. However, this is a planned drawing down on cash reserves that were at a very high level at the end of this year, due to the sale of the residential property in Bracknell, 30 Farnham Close. We are therefore likely to have reserves well in excess of our reserves policy throughout next year and the following year. • Both our site numbers and subsequent income continues to increase year on year with 2022 being no exception. The Elders and Trustees believe a further increase in numbers and associated regular giving of around 100 regular attenders at both the Windsor and Farnborough sites is achievable in the next 2 years through growth investment which will result in sufficient income at those sites by 2025 to offset their expenditure and eradicate the existing deficit. • Our expenditure base, whilst relatively fixed, could be reduced to keep expenditure levels down. We can choose not to replace staff or limit ministry activity in areas that are less utilised. Neither would be desirable, but both are levers at our disposal in the event that our ability to operate as a going concern, comes under pressure. • We also have further residential property at our disposal that we could use, in the event of liquidity issues. ## **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. ## **Money given away (including Revive)** 6.1% of all general income was given away to other causes including Revive ministry, Acts 2 (pastoral community care), and other pastoral community support. 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 churchs 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 Estates 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 Estates department 6. Formal staff commitment setting process annually with Line Management including a 6-monthly review - 3 - ## **KERITH COMMUNITY CHURCH** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **Investment policy** Due to the relatively short time period between the receipt of funds and their expenditure, all the funds, are held in cash. ## **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: - Operational performance, including risks to employees, volunteers, the children supported and reputation; - Financial sustainability, including stability and security of income; - The achievement of aims and objectives ## **Fundraising** In line with the reporting requirements included in the Charities Act 2016 the Trustees confirm that all fundraising is done in compliance with fundraising best practice. All fundraising activities are in line with the vision, values and mission of the Kerith Community Church.. During 202 we did not employ any professional fundraisers with all funds being received through general giving, gift day appeals and ministry specific grant applications. Kerith received no complaints or criticisms during the year about it fundraising activities or practices. ## **Plans for future periods** The trustees priorities for the coming 3 years will be focussed on the making of any necessary adjustments to enable the return of the Kerith finances to a breakeven point based on regular giving income and operating expenditure (by 2025) Alongside this will be a push for weekly attendance growth across all sites with a focus on the following, The planned return to multiple Sunday meetings on the Bracknell site, The building redevelopment project of the Farnborough Site, Auditorium redevelopment and new refreshments area for the Windsor Site and continuing investigation into the launch of the West Wight Site in a more densely populated and central area of the Island. Where such developments require additional funding (renovation projects and relocation) these projects will seek to raise such funds through additional site specific gift days. ## **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. The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: J Davis - Chair S Benham - Senior Pastor D Klitgaard - Elder D Seidu - Treasurer J M Whitton - 4 - ## **KERITH COMMUNITY CHURCH** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **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. They are not required to have any specific training for their role as a trustee, but would be expected to familiarise themselves with the Articles of Association and in particular confirm their acceptance of Part H - Statement of Faith. In addition they would be directed to CC3 - "The essential trustee - What you need to know" from the Charity Commission website, which is a comprehensive guide to what trustees do and need to know. 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. ## **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. ## **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. - 5 - KERITH COMMUNITY CHURCH TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 202Z sthtemenl tsf itrv¥lpes' responslbilllles The Irusièes. who are also the direciors of Kenlh CommuDily ChvTch for Ihe purTX>5e of cotnpany law. aTg ie5ponsible for preparing the Twslee5' Repori Ihe financial slat￿￿￿miS In accordaDce wlh opplkable law aDd Unrfed Kingdom Aca)unling SiAnd8rd$ (Uniled Kingd￿Th Genèr81lyAc￿p1edAGCounbn9 P1aCtl￿). Company Law requifc5 Ihe Iruslee5 to prepare finanoal slatemgn15 fore8¢h finanual yearwhith gwe a bije and fair %ryew of the slaie 013￿81[￿ ol ihe Ghanly and ol the IDcoming re%vJr¢es and applirAti￿ of rtsources, Including the IDcotne aDd expenditure. ol Ihfj thantable company for thal ye¥r. In prepanng Ihese finaDoal slalemenls. the InJ51ees ale requirBd to. -se*ci SUI￿ble aGcounting Wiues an¢ then 8Folylhem CDn5151enUy, - Dbsèrve th2 method$ and Wncl￿e5 in ihe charit￿8 SORP., - makèjudg8n*nls aDd esbrnale5 Ihal are reasonable And pwdenl". stale whelher applicable UK ACcoUn￿n9 SLqndards have bBen follo￿. subject lo any Material dep8rture5 is(4os¢d and explaineij in the financial 5talemenis'. and pTrpare the financial 5talernenls on the going conc￿￿ basis unlas¥11 1$ inappropriaie lo presume thai the charity wi11 coThUnue ill operabc￿. The Iwslee5 are re5PQD5ible for keeping adequalo accourtling re(x)rds thal di5d059 wilh reasonabl£ accuracy at ny time Ihe finanoal PDsibon of the chanly and eTra￿e them lo ensure Ihal the fiTr2naal slalemenls complywith lh8 Companies Acl 2(M)S. They are also responsible for ¥afeguatding the assets ol the tharily and hen¢e fw taking reasonable steps lor the prevenliDD and deiecbon of fr8ud and olherirregularilies. Aud￿Or In accotdan¢e wlh the compan￿5 Bthdes, a r&SolVty￿ proposing Ihdt Jacob Cavenagh & Skeel be reappoinied as aLYJdorof Ihe fximpany ￿￿11 be pulal a Genttal Me&ling. Dlsclosure of Inforrnatlon to audllor Eaol of the ItU51ees has confirmed Ibal there 16 no Inlomaknon of which they are aware which is relevsni lo IhB audit, t￿1 of which the auditor is unaware They have further 9￿firmed Ih31 Ihoy havtr taken appropriaie slep5 10 id6nUfy $u¢h relevanlinfom)81ion and lo establsh that ihe auditor IS 8ware of such infomBtson. The tru51ees' ioport was approved by the Board of TnJ51ees. S Benham- Senior Pastor Trustev Date". ## **KERITH COMMUNITY CHURCH** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KERITH COMMUNITY CHURCH** ## **Opinion** We have audited the financial statements of Kerith Community Church (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, 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 Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity 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 charity’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 annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual 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 our audit: - the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and - the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements. - 7 - ## **KERITH COMMUNITY CHURCH** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KERITH COMMUNITY CHURCH** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report. ## **Responsibilities of trustees** As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the 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 our procedures are capable of detecting irregularities, including fraud, is detailed below. Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to employment and financial reporting legislation and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team. We determined that the principal risks were related to: management override of controls and management bias in accounting estimates. In response to the risks identified we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - evaluating the company's internal controls; - challenging significant accounting estimates such as valuation of stock and - identifying and testing journal entries. - 8 - ## **KERITH COMMUNITY CHURCH** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF KERITH COMMUNITY CHURCH** There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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. **Paul Newton FCA (Senior Statutory Auditor) for and on behalf of Jacob Cavenagh & Skeet** ## 15/08/2023 ......................... **Chartered Accountants Statutory Auditor** 5 Robin Hood Lane Sutton Surrey SM1 2SW - 9 - ## **KERITH COMMUNITY CHURCH** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ |**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
**1,387,016**
**483,409**
Charitable activities
**4**
**108,660**
**-**
Investments
**5**
**2,478**
**-**
Surplus on disposal of
property
**248,810**
**-**
Other income
**6**
**-**
**-**
**Total income**
**1,746,964**
**483,409**
**Expenditure on:**
Charitable activities
**7**
**1,677,349**
**384,201**
Gross transfers between
funds
**-**
**-**
**Net income/(expenditure) for**
**the year/**
**Net movement in funds**
**69,615**
**99,208**
**Reconciliation of funds**
Fund balances at 1 January
2022
As originally reported
**_3,409,380_**
**_572,386_**
Prior year adjustment
**_425,268_**
**_(425,268)_**
As restated
**3,834,648**
**147,118**
**Fund balances at 31**
**December 2022**
**3,904,263**
**246,326**|**Total Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2021**
**2021**
**£**
**£**
**£**
**1,870,425**
1,160,609
487,828
**108,660**
110,052
-
**2,478**
1,466
-
**248,810**
-
-
**-**
1,535
-
**2,230,373**
1,273,662
487,828
**2,061,550**
1,527,146
391,305
**-**
200,240
(200,240)
**168,823**
(53,244)
(103,717)
**_3,981,766_**
_3,873,350_
_265,377_
**_-_**
_-_
_-_
**3,981,766**
3,873,350
265,377
**4,150,589**
3,820,106
161,660|**Total**
**2021**
**£**
1,648,437
110,052
1,466
-
1,535
1,761,490
1,918,451
-
(156,961)
_4,138,727_
_-_
4,138,727
3,981,766| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 10 - KERITH COMMUNITY CHURCH BALINCE SHEET ASAT31 DECEMBER 2022 2022 2021 Notes Flxed assels Yangible as5eis 12 4.152,876 4,444.705 Cuffenl ass*i¥ Stocks Deblots Catsh al bank and in hand 13 14 12.U19 79.187 875,489 1,045 28,035 535,$38 967,495 564,618 Credltor5'. amounts falllng sjue wllhln one year 1100,60D 1107,4881 Nel wrr8ni as5et5 866,888 457,130 Total asset$1oss cuwvent Ilabllitl? 5,019,S64 4,901.835 Creditors.. amounts fallln9 due allef mor• th•n on? year 16 1868,9751 1920.0691 Net assets 4,150,509 3,961.766 Income funds Resincled funds Unre51riGled fun De5iyDated funds GeneRI unrestrfcted funds 19 246,326 161,660 3.854,579 49.684 3.731.483 68.623 3,904.263 3.820.106 4.150.5B9 3,981.766 These financial $takmen15 hav8 been WePar￿ h 0(x0rdanr￿ wilh p￿ls￿)ng 8ppMcatde lo wmp8nies Sub￿1 lo the sm311 wmpanies r£gim8 The finan¢i8I $tslementsW8re approved by theTwstets on........... J ￿s- Chair Trust88 S Benham- Senior Pastor Twsteè Comp•ny reglstrntlon numb•i 06585832 ## **KERITH COMMUNITY CHURCH** ## **STATEMENT OF CASH FLOWS** ## _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**25**
**Investing activities**
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Investment income received
**Net cash generated from/(used in)**
**investing activities**
**Financing activities**
Proceeds from new bank loans
Repayment of bank loans
**Net cash (used in)/generated from**
**financing activities**
**Net increase/(decrease) in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2022**
**2021**
**£**
**£**
**£**
**£**
**273,993**
30,185
**(7,169)**
(1,342,219)
**122,202**
-
**2,478**
1,466
**117,511**
(1,340,753)
**-**
995,000
**(51,553)**
(25,931)
**(51,553)**
969,069
**339,951**
(341,499)
**535,538**
877,037
**875,489**
535,538| |---|---| - 12 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **1 Accounting policies** ## **Charity information** Kerith Community Church is a private company limited by guarantee incorporated in England and Wales. The registered office is The Kerith Centre, Church Road, Bracknell, Berkshire, RG12 1EH. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the charity's Memorandum & Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102. 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 £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. ## **1.4 Income** Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Donated goods to the Foodbank are recognised when they are received and valued at £2.37 per kg. - 13 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use. Grants payable are included when they have been approved by the trustees, the expenditure is committed and this has been communicated to the recipients. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings permanent: over 50 years; temporary: over 5 years Leasehold land and buildings over period of lease Equipment 15% on cost Fixtures and fittings 20% and 6.67% on cost Computers 33.3% on cost Motor vehicles 20% on cost The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. ## **1.7 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.8 Stocks** The stock of items held by the Foodbank is included at an estimate of £2.37 per kg. ## **1.9 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. - 14 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **1 Accounting policies** ## **(Continued)** ## **1.10 Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**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 the 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 and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 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. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. ## **1.11 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.12 Retirement benefits** Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. - 15 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **2 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Donations and legacies** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2022**
**2022**
**£**
**£**
Donations and gifts
**1,138,633**
**213,117**
Grants
**-**
**35,000**
Donated goods and
services
**-**
**203,377**
Gift days and special
offerings
**248,383**
**31,915**
**1,387,016**
**483,409**|**Total**
Unrestricted
funds
**2022**
2021
**£**
£
**1,351,750**
951,727
**35,000**
-
**203,377**
-
**280,298**
208,882
**1,870,425**
1,160,609|Restricted
funds
2021
£
264,212
50,833
127,873
44,910
487,828|Total
2021
£
1,215,939
50,833
127,873
253,792| |---|---|---|---| ||||1,648,437| ## **4 Charitable activities** |Ministry
Rent and other income|**2022**
**£**
**71,899**
**36,761**
**108,660**|**2021**
**£**
50,746
59,306| |---|---|---| |||110,052| ## **5 Investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2022**|2021| ||**£**|£| |Interest receivable|**2,478**|1,466| - 16 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **6 Other income** ||**Total**|Unrestricted| |---|---|---| |||funds| ||**2022**|2021| ||**£**|£| |CJRS income|**-**|**1,535**| ## **7 Charitable activities** |Staff costs
Depreciation and
impairment
Ministry costs
Grant funding of activities
(see note 8)
Share of support costs (see
note 9)
Share of governance costs
(see note 9)
**Analysis by fund**
Unrestricted funds
Restricted funds|**General**
**church**
**2022**
**£**
**866,884**
**171,623**
**645,810**
**1,684,317**
**51,464**
**15,837**
**8,500**
**1,760,118**
**1,572,684**
**187,434**
**1,760,118**|**Revive**
**2022**
**£**
**73,045**
**5,373**
**223,014**
**301,432**
**-**
**-**
**-**
**301,432**
**104,665**
**196,767**
**301,432**|**Total**
**2022**
**£**
**939,929**
**176,996**
**868,824**
**1,985,749**
**51,464**
**15,837**
**8,500**
**2,061,550**
**1,677,349**
**384,201**
**2,061,550**|**Total**
**2021**
**£**
**881,121**
**183,665**
**688,868**
**1,753,654**
**21,118**
**10,196**
**5,610**
**1,790,578**
**1,527,146**
**263,432**
**1,790,578**|**Revive**
**2021**
**£**
**-**
**-**
**127,873**
**127,873**
**-**
**-**
**-**
**127,873**
**-**
**127,873**
**127,873**|**Total**
**2021**
**£**
881,121
183,665
816,741| |---|---|---|---|---|---|---| |||||||1,881,527
21,118
10,196
5,610| |||||||1,918,451| |||||||1,527,146
391,305| |||||||1,918,451| - 17 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **8 Grants payable** ||**General**|General| |---|---|---| ||**church**|church| ||**2022**|2021| ||**£**|£| |Grants to institutions (15 grants):||| |City Church, Lithuania|**6,500**|**2,017**| |Skinia Church, Ukraine|**1,500**|**-**| |Lutsk AOG Church, Ukraine|**1,174**|**-**| |Misioni Joshua, Albania|**2,903**|**4,937**| |Emerge Advocacy|**4,000**|**-**| |Shoot Academy|**3,000**|**-**| |Tearfund|**2,000**|**-**| |Tehilia|**1,600**|**617**| |Renova|**1,920**|**-**| |Hope & Vision|**1,920**|**500**| |Mustard Seed Autism Trust|**2,227**|**-**| |Restored|**1,000**|**-**| |Ryde Youth Work Project|**2,000**|**-**| |Driven Forward|**600**|**-**| |Foodshare|**1,170**|**-**| |Other|**-**|**2,017**| ||**33,514**|**10,088**| |Grants to individuals|**17,950**|**11,030**| ||**51,464**|**21,118**| ## **9 Support costs** |**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Finance and legal
**3,123**
**-**
HR
**12,714**
**-**
Audit fees
**-**
**5,880**
Accountancy
**-**
**2,620**
**15,837**
**8,500**
Analysed between
Charitable activities
**15,837**
**8,500**|**2022**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
**£**
**3,123**
**2,028**
**-**
**12,714**
**8,168**
**-**
**5,880**
**-**
**5,610**
**2,620**
**-**
**-**
**24,337**
**10,196**
**5,610**
**24,337**
**10,196**
**5,610**|**2021**
**£**
2,028
8,168
5,610
-| |---|---|---| |||15,806| |||15,806| - 18 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **10 Employees** The average monthly number of employees during the year was: |Ministry
Administration
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2022**
**Number**
**21**
**21**
**42**
**2022**
**£**
**804,896**
**58,864**
**76,169**
**939,929**|**2021**
**Number**
20
21| |---|---|---| |||41| |||**2021**
**£**
753,449
53,751
73,921| |||881,121| Redundancy costs of £2,261 (2021:£nil) were paid during the year and included in wages and salaries costs above. The number of employees whose annual remuneration was more than £60,000 is as follows: |||**2022**|**2021**| |---|---|---|---| |||**Number**|**Number**| |£60,000|- £70,000|-|1| ## **11 Trustees** The trustee, S Benham, received remuneration of £54,766 (2021:£70,458) and pension contributions of £5,477 (2021:£6,299) were paid on his behalf in respect of his work as Senior Pastor. These payments are permitted by the Memorandum & Articles of Association of the church. One trustee was reimbursed £3,767 (2021: £3,173) for travel related expenses during the year. - 19 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ |**12**
**Tangible fixed assets**
**Freehold land**
**and buildings**
**£**
**Cost**
At 1 January 2022
**4,605,666**
Additions
**-**
Disposals
**(184,000)**
At 31 December 2022
**4,421,666**
**Depreciation and impairment**
At 1 January 2022
**1,657,375**
Depreciation charged in the year
**103,047**
Eliminated in respect of disposals
**(61,798)**
At 31 December 2022
**1,698,624**
**Carrying amount**
At 31 December 2022
**2,723,042**
At 31 December 2021
2,948,292
**13**
**Stocks**
Foodbank and bookshop stock
**14**
**Debtors**
**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
**Amounts falling due after more than one year:**
Other debtors
**Total debtors**|**Leasehold**
**land and**
**buildings**
**£**
**1,306,392**
**-**
**-**
**1,306,392**
**17,654**
**17,654**
**-**
**35,308**
**1,271,084**
1,288,738|**Fixtures,**
**fittings and**
**equipment**
**Motor vehicles**
**£**
**£**
**819,257**
**20,694**
**7,169**
**-**
**(21,103)**
**-**
**805,323**
**20,694**
**615,040**
**17,235**
**54,565**
**1,730**
**(21,103)**
**-**
**648,502**
**18,965**
**156,821**
**1,729**
86,767
3,459
**2022**
**£**
**12,819**
**2022**
**£**
**27,341**
**22,846**
**50,187**
**2022**
**£**
**29,000**
**79,187**|**Total**
**£**
**6,752,009**
**7,169**
**(205,103)**
**6,554,075**
**2,307,304**
**176,996**
**(82,901)**
**2,401,399**
**4,152,676**
4,444,705
**2021**
**£**
1,045
**2021**
**£**
22,290
5,745
28,035
**2021**
**£**
-
28,035| |---|---|---|---| - 20 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ |**15**
**Creditors: amounts falling due within one year**
**Notes**
Bank loans
**18**
Other taxation and social security
Trade creditors
Accruals and deferred income
**16**
**Creditors: amounts falling due after more than one year**
**Notes**
Bank loans
**18**|**2022**
**£**
**48,541**
**17,979**
**21,112**
**12,975**
**100,607**
**2022**
**£**
**868,975**|**2021**
**£**
49,000
15,429
32,059
11,000| |---|---|---| |||107,488| |||**2021**
**£**
920,069| ## **17 Retirement benefit schemes** ## **Defined contribution schemes** The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £76,169 (2021 - £73,921). ## **18 Loans and overdrafts** |Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments|**2022**
**£**
**917,516**
**48,541**
**868,975**
**650,723**|**2021**
**£**
969,069| |---|---|---| |||49,000
920,069| |||724,069| The long-term loan is secured by a fixed charge over the land and buildings of the charity; The Kerith Centre, Church Road, Bracknell, RG12 1EH. The carrying value of the assets charged was £1,619,540 at the balance sheet date (2021: £1,672,848). The loan is repayable over 15 years, with a variable interest rate. The interest rate held at the balance sheet date was 4.25%. The interest charged in the year was £39,690 (2021: £26,579). - 21 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **19 Restricted funds** The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: |**Balance at**
**1 January 2021**
**£**
Restricted capital equipment
**37,835**
Kerith Vision Fund
**87,718**
Pastor's discretionary fund
**1,468**
Other restricted funds
**104,133**
Foodbanks Emergency Fund
**5,915**
Foodbank
**28,308**
Farnborough building
**-**
Building funds
**-**
**265,377**|**Movement in funds**
**Income**
**Expenditure**
**Transfers**
**Balance at**
**1 January 2022**
**£**
**£**
**£**
**£**
**-**
**(11,846)**
**5,840**
**17,287**
**4,887**
**(38,462)**
**(53,143)**
**1,000**
**-**
**(1,343)**
**(125)**
**-**
**135,805**
**(154,319)**
**(6,885)**
**78,734**
**-**
**(2,052)**
**(3,863)**
**-**
**173,724**
**(154,524)**
**1,355**
**48,863**
**173,412**
**(28,759)**
**(144,653)**
**-**
**-**
**-**
**1,234**
**1,234**
**487,828**
**(391,305)**
**(200,240)**
**147,118**|**Movement in funds**
**Income**
**Expenditure**
**£**
**£**
**-**
**(5,373)**
**-**
**-**
**-**
**-**
**143,694**
**(128,384)**
**-**
**-**
**229,614**
**(205,945)**
**-**
**-**
**110,101**
**(44,499)**
**483,409**
**(384,201)**|**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
**-**
**11,914**
**-**
**1,000**
**-**
**-**
**4,917**
**98,961**
**-**
**-**
**-**
**72,532**
**-**
**-**
**(4,917)**
**61,919**
**-**
**246,326**|**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
**-**
**11,914**
**-**
**1,000**
**-**
**-**
**4,917**
**98,961**
**-**
**-**
**-**
**72,532**
**-**
**-**
**(4,917)**
**61,919**
**-**
**246,326**| |---|---|---|---|---| |||||**246,326**| - 22 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **19 Restricted funds** **(Continued)** Restricted capital equipment represents the value of capital assets held for restricted purposes. 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. The Foodbank fund supports the operation of the Foodbank and receives restricted grants, donations and food donations. The Farnborough building fund received donations towards the purchase of a property which was achieved in 2021 and this is reflected in the transfer out of this fund. The other building funds are restricted donations received to support specific building related projects at each of the church's sites. - 23 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **20 Designated funds** The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes: |**Balance at**
**1 January 2021**
**£**
Properties and capital
equipment
**3,248,316**
Designated reserve
**416,000**
**3,664,316**|**Movement in funds**
**Income**
**Transfers**
**Balance at**
**1 January 2022**
**£**
**£**
**£**
**-**
**195,491**
**3,443,807**
**400**
**(128,724)**
**287,676**
**400**
**66,767**
**3,731,483**|**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
**(228,630)**
**3,215,177**
**351,726**
**639,402**
**123,096**
**3,854,579**|**Transfers**
**Balance at**
**31 December**
**2022**
**£**
**£**
**(228,630)**
**3,215,177**
**351,726**
**639,402**
**123,096**
**3,854,579**| |---|---|---|---| ||||**3,854,579**| Properties and capital equipment fund represents the value of all unrestricted capital assets, less the outstanding capital on the mortgage. Designated reserve represents funds set aside in line with Charity Commission guidelines to ensure the smooth running of the charity should there be any interruption to operations. ## **21 Analysis of net assets between funds** |**Unrestricted**
**funds**
**Restricted**
**funds**
**2022**
**2022**
**£**
**£**
Fund balances at 31
December are
represented by:
Tangible assets
**4,140,762**
**11,914**
Current assets/(liabilities)
**632,476**
**234,412**
Long term liabilities
**(868,975)**
**-**
**3,904,263**
**246,326**|**Total**
Unrestricted
funds
**2022**
2021
**£**
£
**4,152,676**
4,412,876
**866,888**
327,299
**(868,975)**
(920,069)
**4,150,589**
3,820,106|Restricted
funds
2021
£
31,829
129,831
-
161,660|Total
2021
£
4,444,705
457,130
(920,069)| |---|---|---|---| ||||3,981,766| ## **22 Operating lease commitments** At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years
In over five years|**2022**
**£**
**68,174**
**193,962**
**266,499**
**528,635**|**2021**
**£**
68,174
195,881
329,499| |---|---|---| |||593,554| - 24 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ ## **22 Operating lease commitments** ## **(Continued)** The expenditure on operating leases during the year was £68,173, (2021: £67,215) ## **23 Related party transactions** ## **Remuneration of key management personnel** The remuneration of key management personnel is as follows. ||**2022**|**2021**| |---|---|---| ||**£**|**£**| |Aggregate compensation|**180,077**|185,486| ## **Transactions with related parties** During the year the charity entered into the following transactions with related parties: During the year employment costs of £22,440 (2021: £21,300) and pension costs of £2,244 (2021: £2,130) were paid to Mrs C Benham, the spouse of a trustee. This remuneration was in relation to her employment for the charity. During the year payments of £3,510 (2021: £2,397) were made to Wild SEO Agency, a company controlled by Mrs C Klitgaard, the daughter in law of a trustee. During the year payments of £9,443 (2021: £10,638) were made to Rapid Commercial Cleaning Services Ltd, a company controlled by trustee, Mr J Whitton. ## **24 Prior year adjustment** A prior year adjustment has been made to correct the presentation of restricted funds. A net amount of £425,268 has been transferred from the Restricted Capital Equipment fund to the general fund in relation to capital expenditure where the assets are not restricted. The 2021 figures have also been amended to include £173,174 of income and expenditure representing donations of food given and received by the Foodbank during the year. - 25 - ## **KERITH COMMUNITY CHURCH** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2022**_ |**25**|**Cash generated from operations**||**2022**|**2021**| |---|---|---|---|---| ||||**£**|**£**| ||Surplus/(deficit) for the year||**168,823**|(156,961)| ||Adjustments for:|||| ||Investment income recognised in statement of financial activities||**(2,478)**|(1,466)| ||Depreciation and impairment of tangible fixed assets||**176,996**|183,665| ||Movements in working capital:|||| ||(Increase)/decrease in stocks||**(11,774)**|378| ||(Increase) in debtors||**(51,152)**|(2,806)| ||(Decrease)/increase in creditors||**(6,422)**|7,375| ||**Cash generated from operations**||**273,993**|30,185| |**26**|**Analysis of changes in net (debt)/funds**|||| |||**At 1 January**|**Cash flows At**|**31 December**| |||**2022**||**2022**| |||**£**|**£**|**£**| ||Cash at bank and in hand|**535,538**|**339,951**|**875,489**| ||Loans falling due within one year|**(49,000)**|**459**|**(48,541)**| ||Loans falling due after more than one year|**(920,069)**|**51,094**|**(868,975)**| |||**(433,531)**|**391,504**|**(42,027)**| - 26 -