2022-12-31-accounts

CENTRAL GH TRUST (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

REGISTERED COMPANY NO. 06656919 REGISTERED CHARITY NO. 1125717

CENTRAL GH TRUST

CONTENTS	Page
Company Information	2
Trustees’ Report	3-6
Independent Auditors’ Report	7-10
Statement of financial activities	11
Balance sheet	12
Cashflow statement	13
Notes to financial statements	14-25

CENTRAL GH TRUST

COMPANY INFORMATION

Trustees	Laurie Pollard
	Colin Barnes
	Oliver Whiley
	Cyril Parsons (appointed 8 December 2022)
Company secretary	Christopher Stedman
Registered office	Central GH Trust
	Noble House
	Eaton Road
	Hemel Hempstead
	Herts HP2 7UB
Charity registration number	1125717 (England & Wales)
Company registration number	06656919 (England & Wales)
Independent auditors	Saffery Champness
	71 Queen Victoria Street
	London EC4V 4BE
Bankers	NatWest Bank plc
	Watford Town Centre Branch
	72-74 High Street
	Watford
	Herts WD17 2GZ
Investment Managers	Crestbridge Group Services Limited
	8 Sackville Street
	London
	W1S 3DG

Page 2

CENTRAL GH TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their annual report and the audited financial statements for the year ended 31 December 2022.

Structure, Governance & Management

Constitution

The charity was incorporated on 25 July 2008 as a company limited by guarantee and was registered with the Charity Commission on 4 September 2008. The charity is governed by its Memorandum and Articles of Association under the Companies Act 2006. The liability of each member is limited to £10 in the event of a winding up.

Trustees

The Trustees met regularly during the year. The power to appoint new Trustees is vested in the existing Trustees. There is an informal interview, induction and training process for any new Trustee. The Trustees who served during the year are shown below:

Laurie Pollard Colin Barnes Oliver Whiley

Cyril Parsons (appointed 8 December 2022)

Public benefit

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives and in planning the future activities. In particular the Trustees consider how planned donations will contribute to the aims and objectives they have set. The Trustees consider the current policy for making donations delivers public benefit. Details of the objects which form the basis of this policy are given later in this report. In selecting Christian religious charities for the receipt of grants, the charity is mindful of the requirement that such charities themselves demonstrate public benefit.

Risk review

The major strategic, business and operational risks which the charity faces are under continuous review by the Trustees who ensure that these risks are managed effectively.

The Trustees have identified that the principal risk and uncertainty is the possible failure of recipient trusts to repay loans or the balance of loans on time (for whatever reason) which may impact on future lending to other trusts needing support. Lesser risks are that grants could be used for purposes other than those described in formal applications and that gospel halls could be used for non-charitable purposes.

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CENTRAL GH TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees mitigate these risks with the following procedures:

• Administrative arrangements are in place to prevent misappropriation of cash funds by local coordinators.

• Periodic reviews are made to ensure that local trustees abide by their agreement on loan repayment terms. In the event of real difficulties a revised repayment schedule may be agreed.

• The reserves policy is such that normally sufficient cash is held to enable programmes of support to continue if loan repayments fall short.

• Contact is maintained with trustees of local trusts some of which carry temporary cash surpluses which they would be willing to lend to CGHT.

• Where CGHT supports a local project it is now part of standard procedure to request a financial statement showing total cost and sources of finance to confirm that CGHT’s contribution has been included in full.

• Trustees and affiliates maintain contact with local trustees and local congregation members and would quickly become aware of any changes in use which would be a breach of the grant or loan application. There is a fall-back clause in loan agreements that enables CGHT trustees to recall the balance of any loan giving three months’ notice in writing.

Objectives and Activities

The objects of the Charity are:

• The advancement of the Christian faith in particular by the provision of churches, gospel halls and other structures and facilities for Christian worship and the giving of assistance to those involved in their construction, repair, improvement and maintenance in such ways as are exclusively charitable, and;

• Such other charitable purposes as the Members see fit.

The Charity’s principal objectives are:

• To provide support and guidance regarding the construction and maintenance of places of worship, and

• To assist other Christian religious charities by providing grants and loans for the development of places of worship.

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CENTRAL GH TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and Performance

Grant making

The Charity looks to achieve its objectives by collecting donations in order that it may lend or grant money to Christian religious charities in need. Grant applications for funds are considered by a committee.

During the year the Charity made grants of £231,318 (2021 £484,148), and at the year end there were loans made to Christian religious charities of £3,366,080 (2021: £4,881,007).

Financial Review

The net movement in funds amounted to a deficit of £87,444 (2021: surplus of £266,946), of which a deficit of £231,318 related to restricted funds (2021: surplus of £171,288) and a deficit of £231,318 related to unrestricted funds (2021: surplus of £95,568). These movements are detailed in the statement of financial activities on page 11.

The unrestricted surplus for the 2022 year is due to a decrease in the level of grants paid from the Trust, and the grants awarded being funded from the restricted funds of the Trust itself. It is the intention of Trustees to maintain the level of cash resources at a level which allows expenses and grants to be met.

Reserves policy

CGHT’s aim is to retain sufficient cash to enable it to support its mainstream charitable purpose of providing financial assistance to charitable trusts engaged in the provision of churches, gospel halls and facilities for Christian worship.

As a general policy, the trustees aim to hold approximately £2 - £5 million as a cash reserve, to fund the increasing requests for support from the charity’s beneficiaries.

The trustees are aware that with the ongoing cycle of loan repayments, this reserve would be entirely adequate. They are also aware of the fact that there are local trusts with similar charitable purposes holding significant surplus cash and that loans could be arranged at short notice.

At 31 December 2022, the level of general unrestricted funds was £18,805,799 (2021: £18,661,925) and restricted funds was £544,570 (2021: £775,888). Excluding loans made to and received from other trusts, loans from individuals, tangible fixed assets, and investment property the “free reserves” of the charity were £15,257,922 (2021: £13,485,118).

Investment policy

Any surplus resources are held as cash to allow grants and loans to be made promptly and surplus funds attract interest.

Future Plans

The charity plans to continue to assist Christian religious charities through loans and grants.

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CENTRAL GH TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

Trustees Responsibilities

The trustees (who are also directors of Central GH Trust for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year 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 year. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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:

• there is no relevant audit information of which the charitable company’s auditor is unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

This report was prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Signed on behalf of the Trustees on

………………………………. Oliver Whiley Trustee

Page 6

CENTRAL GH TRUST

INDEPENDENT AUDITORS REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 DECEMBER 2022

Opinion

We have audited the financial statements of Central GH Trust for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the 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 charitable company’s state of 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 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 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 auditor’s report 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.

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CENTRAL GH TRUST

INDEPENDENT AUDITORS REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 DECEMBER 2021

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees’ Report which includes the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Trustees’ Report which includes the Directors’ Report has been prepared in accordance with applicable legal requirements.

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 Trustees’ Report.

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:

• 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 to take advantage of the small companies exemption in preparing the Trustees’ Report.

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 6, the trustees (who are also 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 to do so.

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CENTRAL GH TRUST

INDEPENDENT AUDITORS REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 DECEMBER 2021

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates.

Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales .

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

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CENTRAL GH TRUST

INDEPENDENT AUDITORS REPORT TO THE MEMBERS FOR THE YEAR ENDED 31 DECEMBER 2022

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

Cara Turtington (Senior Statutory Auditor) for and on behalf of Saffery Champness

Chartered Accountants Statutory Auditors

71 Queen Victoria Street London EC4V 4BE

8 September 2023

Saffery Champness is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 10

CENTRAL GH TRUST

STATEMENT OF FINANCIAL ACTIVITIES (incorporating the income and expenditure account) FOR THE YEAR ENDED 31 DECEMBER 2022

Income from: Donations and legacies Collections and donations 2 Gift aid recoverable Investments Investment income 3 Total income Expenditure on: Charitable activities Assistance to other trusts to provide Christian places of worship Total expenditure 4 Losses on investments 10 Net income/(expenditure) Transfers between funds Net movement in funds Total funds brought forward Total funds carried forward	Unrestricted funds £ 215,213 23,206 68,034 306,454 107,027 107,027 (55,553) 143,874 - 143,874 18,661,925 18,805,799	Restricted funds £ - - - - 231,318 231,318 - (231,318) - (231,318) 775,888 544,570	Total 2022 £ 215,213 23,206 68,034 306,454 338,345 338,345 (55,553) (87,444) - (87,444) 19,437,813 19,350,369	Total 2021 £ 759,014 28,893 47,088
				834,995
				568,049
				562,223
				-
				266,946 -
				266,946 19,170,867
				19,437,813

All the above results are derived from continuing activities. The charity has no other recognised gains and losses from those stated above.

The notes on pages 14 to 25 form an integral part of these financial statements.

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CENTRAL GH TRUST

BALANCE SHEET AS AT 31 DECEMBER 2022

Notes Fixed assets Tangible fixed assets 9 Investments 10 Programme related investments 11 Current assets Debtors due in less than one year 12 Investments 13 Cash at bank and in hand Creditors: Amounts falling due within one year 14 Net current assets Total assets less current liabilities Net assets Represented by: Restricted funds 16 Unrestricted funds Total funds	£ 14,000 7,997,344 3,366,080 10,221 - 8,001,601 544,570 18,805,799	2022 £ 11,377,424 8,011,822 (38,877) 7,972,945 19,350,369 19,350,369 19,350,369	£ 10,500 552,897 4,881,007 508,735 2,000,000 12,257,412 775,888 18,661,925	2021 £ 5,444,404 14,766,147 (772,738)
				13,993,409
				19,437,813
				19,437,813
				19,437,813

The notes on pages 14 to 25 form an integral part of this statement of financial activities.

The financial statements were approved by the Trustees on and signed on their behalf by:

……………………………………. Oliver Whiley Trustee Company number: 06656919 (England & Wales)

Page 12

CENTRAL GH TRUST

STATEMENT OF CASH FLOWS AS AT 31 DECEMBER 2022

Cash flows from operating activities: Net cash generated from/(used in) operating activities 18 Cash flows from investing activities: Purchase of tangible fixed assets Purchase of investments New investing loans provided Receipt from repayments of investing loans New charitable loans provided Receipts from charitable loan repayments Net cash provided by investing activities Cash flows from financing activities: Repayment of borrowing Cash inflows from new borrowing Net cash (used in)/provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 January 2022 18 Cash and cash equivalents at 31 December 2022 18	2022 £ 6,141 (7,500) (7,500,000) - 2,500,000 (1,205,000) 2,719,927 (3,492,573) (757,097) - (757,097) (4,255,811) 12,257,412 8,001,601	2021 £ 266,279 (7,500) - (2,000,000) - (580,000) 10,898,327
		8,310,827 (1,655,526) -
		(1,655,526)
		6,921,580 5,335,832 12,257,412

The notes on pages 14 to 25 form an integral part of this statement of financial activities.

Page 13

CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

1.1 Company information

Central GH Trust is incorporated in England and Wales as a registered charity and a company limited by guarantee. The registered office is Noble House, Eaton Road, Hemel Hempstead, Herts HP2 7UB.

1.2 Basis of preparation

The financial statements have been prepared under the historical cost convention with the exception of investments which are included at fair value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Financial Reporting Standard applicable in the UK and republic of Ireland (FRS 102) and the Companies Act 2006.

The Central GH Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are wholly recognised at historical costs or transaction value unless otherwise stated in the relevant accounting policy note(s).

1.3 Going Concern

The trustees have considered the operating position of the charity and are of the opinion that there are no material uncertainties regarding the charity’s ability to continue as a going concern.

1.4 Incoming resources

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

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure on charitable activities comprises expenditure related to the direct furtherance of Central GH Trust charitable objects and is accounted for on an accruals basis. Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with use of the resources.

Grants are charged to expenditure when the obligation in relation to each grant arises. Unpaid grants are included in creditors in accordance with the requirements of FRS102.

Direct costs comprise costs incurred directly in generating funds and for charitable purposes.

Support costs comprise costs incurred directly in support of expenditure on the objects of the charity and are an integral part of the costs of carrying out the direct charitable objectives of the charity.

Governance costs are those incurred in compliance with constitutional and statutory requirements.

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies (continued)

1.6 Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of Central GH Trust.

Restricted funds relate to assets transferred to the charity from Woodlands Meeting Room Trust and Finchley Gospel Hall Trust in previous years. As the objects of both Trusts are narrower than that of the charity with regards to charitable lending, these assets have been treated as restricted in the financial statements of the charity. See note 15 for further details.

1.7 Programme related investments

Loans are made to Christian religious charities. These are made to further the charity’s objects rather than to create financial gain.

1.8 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost including any incidental expenses of acquisition. Assets are capitalised where the unit cost exceeds £500.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over the term of the lease or their expected useful economic lives, whichever is shorter. Useful lives are as follows:

Equipment – 20% straight line Property – 2% straight line

1.9 Investment property

Investment property is initially measured at transaction price excluding transaction costs and is subsequently measured at fair value at each reporting date. The Statement of Financial Activities includes the net gains or losses arising on revaluation and disposals throughout the year. No depreciation is charged on investment property.

1.10 Investments

Fixed asset investments are initially measured at transaction price excluding transaction costs and are subsequently measured at fair value at each reporting date. The Statement of Financial Activities includes the net gains or losses arising on revaluation and disposals throughout the year.

1.11 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 recognised 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.

1.12 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1.13 Cash at bank and in hand

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

1.14 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably 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 and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.15 Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, the Trustees are required to make judgement, 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.

The key areas for consideration is the valuation of the investment property. The Trustees have made key assumptions in the determination of the fair value of the investment property in respect of there being no material change in its market value since its purchase in 2019.

2 Income

Donations received (unrestricted) Donations received (restricted) Legacies (unrestricted) 3 Interest receivable Bank interest received Loan interest received	2022 £ 212,213 - 3,000 215,213 2022 £ 47,115 20,920 68,034	2021 £ 472,926 286,388 - 759,014 2021 £ 7,311 39,777 47,088

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

4 Expenditure

Grants £ Restricted funds: Assistance to other Trusts 231,318 Unrestricted funds: Assistance to other Trusts - 231,318 Grants £ Restricted funds: Assistance to other Trusts 114,800 Unrestricted funds: Assistance to other Trusts 369,358 484,158 The surplus for the year is stated Audit fees Depreciation	Support costs Governance costs £ £ - - 66,091 36,936 66,091 36,936 Support costs Governance costs £ £ - - 63,709 18,432 63,709 18,432 after charging:	Depreciation £ - 4,000 4,000 Depreciation £ - 1,750 1,750 2022 £ 12,900 4,000	2022 Total £ 231,318 107,027
			338,345
			2021 Total £ 114,800 568,049 568,049 2021 £ 12,606 1,750

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

5 Grants Awarded

The Charity makes grants to Christian religious charities for the development of places of worship.

KMLF, Copenhagen Glanwern Gospel Hall Trust, Swansea Fond de Reserve de l'Egise, Toulon Reuniones Evangelicas BA, Buenos Aires Peterhead Gospel Trust, Peterhead Swaffham Gospel Hall Trust, Ashill Heathwood Hall Gospel Trust, Wroxham Stiftung Evangeliums-Versammlungsraeume, Zurich	2022 £ 2021 £ 150,000 - 50,000 - 25,318 - 6,000 6,198 - 285,000 - 112,000 - 50,000 - 30,960 231,318 484,158

6 Taxation

The Trust is a registered charity and is exempt from corporation tax on its charitable income, provided this is spent on charitable purposes.

7 Governance costs

Audit fee Legal and professional fees	2022 £ 12,900 24,036 36,936	2021 £ 12,606 5,826 18,432

8 Staff and Trustees costs

The Charity has no directly employed staff. The day to day running of the Charity is carried out by the Trustees.

During the year £48,765 (2021: £45,627) was paid to C&H Stedman for company secretarial and accountancy services. Christopher Stedman, the company secretary of Central GH Trust, is a partner in C&H Stedman.

One trustee received reimbursement of expenses of £4,751 during the year (2021: £nil to no Trustees). No trustees received any payments or emoluments during the year.

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9 Tangible fixed assets

Cost At 1 January 2022 Additions At 31 December 2022 Depreciation At 1 January 2022 Charge for year 31 December 2022 Net book value At 31 December 2022 At 31 December 2021	Intellectual Property Equipment £ £ 12,500 1,062 7,500 20,000 1,062 2,000 1,062 4,000 6,000 1,062 14,000 - 10,500 -	Total £ 13,562 7,500
		21,062
		3,062 4,000
		7,062
		14,000
		10,500

All fixed assets are used for charitable activities.

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

10 Investments

Investment property Investments Investment property Market value at 1 January 2022 and 31 December 2022	2022 £ 552,897 7,444,447 7,997,344		2021 £ 552,897 - 552,897 2022 £ 552,897

In the opinion of the Trustees, the carrying value of the property as at 31 December 2022 is an accurate reflection of fair value.

Investments

As at 1 January 2022 Additions Gains/(Losses) At 31 December 2022	2022 £ - 7,500,000 (52,553) 7,447,447

Investments represent the Charity’s holding in the Vision Investment Fund Unit Trust, managed by Crestbridge Group Services Limited.

11 Programme related investments

Programme related investments
Advances to Christian religious charities Loans repayable in over one year: Brought forward at 1 January Loans made Loans repaid Carried forward at 31 December	2022 £ 4,881,007 1,205,000 (2,719,927) 3,366,080	2021 £ 15,199,334 580,000 (10,898,327)
		4,881,007

The above loans are provided to registered charities and are interest free.

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

12 Debtors

Debtors
Amounts falling due within one year: Gift Aid recoverable Payroll giving receivable Prepayments Loans	2022 £ 564 1,458 8,199 -	2021 £ 3,627 1,465 3,643 500,000
	10,221	508,735

A Loan of £2,000,000 was made to the Oakhill Educational Trust in December 2015. The loan attracted interest at a rate of 4% and was secured by means of a legal charge on a freehold property. The balance of the loan at the start of the year was £500,000. The loan was repaid to the Trust in full in October 2022.

13 Current Investments

Current Investments
Market value at 1 January 2022 Additions Disposals Market value at 31 December 2022	2022 £ 2,000,000 - (2,000,000) -	2021 £ - 2,000,000 -
		2,000,000

A loan of £2,000,000 was made to Traxx Tyres Limited on 15 February 2021 for the purposes of income generation. The loan attracted interest at a rate of 2.25% and was secured by means of a legal charge on a freehold property. The loan was repaid to the Trust in full in March 2022.

14 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Loans from individuals Accruals and deferred income Trade creditors	2022 £ - 16,483 22,394 38,877	2021 £ 757,097 14,903 738
		772,738

In prior year the Trust received personal loans from charity supporters under an initiative run by Focus Learning Trust. The initiative resulted in CGHT holding loans for individuals for 3 years. No interest was payable on the loans and the charity was free to apply interest earned without restriction. The charity repaid debentures in full totalling £757,097 during 2022.

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

15 Movement in funds

Unrestricted funds Restricted funds Woodlands Finchley Total funds Unrestricted funds Restricted funds Woodlands Finchley Total funds	At 1 January 2022 £ 18,661,925 489,500 286,388 775,888 19,437,813		Incoming resources £ 306,454 - - - 19,437,813 At 1 January 2021 £ 18,566,567 604,300 -		Outgoing resources £ (107,027) (104,400) (126,118) (231,318) 306,454 Incoming resources £ 548,607 - 286,388		Investment Losses £ (55,553) - - - (55,553) Outgoing resources £ (453,249) (114,800) -		At 31 December 2022 £ 18,805,799 385,100 159,470 544,570 19,350,369 At 31 December 2021 £ 18,661,925 489,500 286,388
			604,300		286,388		(114,800)		775,888
			19,170,867		834,995		(568,049)		19,437,813

Restricted funds relate to:

Woodlands – Assets transferred to the charity from Woodlands Meeting Room Trust (registered charity number 1162840) during the year ended 31 December 2018. As the objects of Woodlands Meeting Room Trust were narrower than that of the charity with regards to charitable lending, these assets have been treated as restricted income in the financial statements of the charity. On the repayment of the loans, the charity is making grants from the restricted funds in line with the objects of the Woodlands Meeting Room Trust.

Finchley – Assets transferred to the charity from Finchley Gospel Hall Trust (an unregistered charity) during the year ended 31 December 2021. As the objects of Finchley Gospel Hall Trust were narrower than that of the charity, these assets have been treated as restricted income in the financial statements of the charity. The charity plans to make grants from the restricted funds in line with the objects of the Finchley Gospel Hall Trust.

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

16 Analysis of net assets between funds

At 31 December 2022 Tangible fixed assets Investments Programme related fixed assets Cash Debtors Creditors At 31 December 2021 Tangible fixed assets Investment in subsidiary Programme related fixed assets Cash Debtors Creditors	Unrestricted funds £ 14,000 7,997,344 2,980,980 7,842,131 10,221 (38,877) 18,805,799 Unrestricted funds £ 10,500 552,897 4,391,507 11,971,024 2,508,735 (772,738) 18,661,925	Restricted funds £ - - 385,100 159,470 - - 544,570 Restricted funds £ - - 489,500 286,388 - - 775,888	Total funds £ 14,000 7,997,344 3,366,080 8,001,601 10,221 (38,877)
			19,350,369
			Total funds £ 10,500 552,897 4,881,007 12,257,412 2,508,735 (772,738)
			19,437,813

17 Related parties

Oliver Whiley is also a Trustee of Silverdale Gospel Hall Trust. Silverdale Gospel Hall Trust has an outstanding loan balance owed to CGHT of £nil as at 31 December 2022 (2021: £350,000).

During the year donations of £nil were received from Trustees (2021: £14,000).

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

18 Reconciliation of net expenditure to net cash flow from operating activities

Net expenditure per the SOFA Adjustments for: Depreciation Losses on investments Increase in debtors Increase in creditors Net cash used in operating activities 19 Analysis of cash and cash equivalents Cash at bank and in hand Total cash and cash equivalents 20 Analysis of changes in net debt Cash Loans owed to the charity due within one year Loans owed by the charity due within one year	At 1 January 2022 £ 12,257,412 7,381,007 (757,097) 18,881,322	2022 £ (87,444) 4,000 55,553 (1,486) 23,236 (6,141) 2022 £ 8,001,601 8,001,601 Cash flows Non-cash movement £ £ (4,255,811) - (4,014,927) - 757,097 - (7,513,641) -	2021 £ (266,946) 1,750 - (1,560) (857) 266,279 2021 £ 12,257,412 12,257,412 At 31 December 2022 £ 8,001,601 3,366,080 - 11,367,681

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CENTRAL GH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

21 Comparative Statement of Financial Activities

Income from: Donations and legacies: Collections and donations Gift aid recoverable Investments: Investment income Total income Expenditure on: Charitable activities: Assistance to other trusts to provide Christian places of worship Total expenditure Net (expenditure) Transfers between funds Net movement in funds	Unrestricted funds £ 472,926 28,893 47,088 548,607 453,249 453,249 95,658 - 95,658	Restricted funds 286,388 - - 286,338 114,800 114,800 171,288 - 171,288	Total 2021 759,014 28,893 47,088
			834,995
			568,049
			568,049
			266,946 -
			266,946

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