2021-12-31-accounts

Charity registration number 1126718

Company registration number 6738209 (England and Wales)

HOPE CHURCH ORPINGTON

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

HOPE CHURCH ORPINGTON

LEGAL AND ADMINISTRATIVE INFORMATION

Directors	Tony Hall
	Barry Palmer
	Matthew Bulpitt
	Olayemi Shyllon
	Gary Carvosso
	Ruth Marchant
	Sarah Palmer	(Appointed 24 June 2021)
	Ifey Njoku	(Appointed 1 September
		2021)
	Esau Maponda	(Appointed 1 September
		2021)
	Cassandra Chiwaridzo	(Appointed 25 November
		2021)
Secretary	Barry Palmer
Charity number	1126718
Company number	6738209
Principal address	Unit 8
	The Walnuts Centre
	Orpington
	BR6 0TW
Registered office	The Goodmead Centre
	36 Chislehurst Road
	Orpington
	Kent
	BR6 0DG
Independent examiner	Nigel Hewson FCA DChA
	Hewsons
	Chartered Accountants
	80 Woodhurst Avenue
	Orpington
	Kent
	BR5 1AT
Bankers	Metro Bank
	72-76 High Street
	Bromley
	BR1 1EG

HOPE CHURCH ORPINGTON

CONTENTS

	Page
Directors' report	1 - 5
Statement of Directors' responsibilities	6
Independent examiner's report	7
Statement of financial activities	8
Balance sheet	9 - 10
Statement of cash flows	11
Notes to the financial statements	12 - 28

HOPE CHURCH ORPINGTON

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The Directors present their annual report and financial statements for the year ended 31 December 2021.

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

The objects of the charity are the advancement of the Christian faith and the relief of hardship. There have been no changes in the charitable objects of the church during the year. In furtherance of these objects the charity operates congregations in six locations in the local area offering a range of activities and pastoral support to both church members and the wider community.

When considering the aims and objectives in general and those that were to apply for the year, the Elders and the other Directors have considered the Commission's guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. During this year particular attention has been paid to the Government regulations and best practice surrounding the Covid-19 pandemic that has hampered activities during the year. As with many other churches we have had to adapt and change our activities at various times during the year to meet our obligations to staff, members and to the wider society.

Values statement

The church has a detailed values statement which can be summarised as follows:

We are an evangelical church being built upon apostolic and prophetic foundations to display and express the love and grace of God to the community around us committed to worship, prayer, evangelism, discipleship and building friendships that endorse family life where everyone can feel secure enough to grow.

Practices Adopted

• The holding of regular Sunday and weekday services and meetings open to all. The worship of God, the preaching of His Word, the baptism of believers and the regular holding of Communion. Physical meetings resumed in April 2021 as the Covid-19 lockdown was eased. The central on-line service was later stopped but an inter-active live recording was maintained at one of the congregations for those who felt uncomfortable attending a physical meeting.

• A wide range of evangelistic activities, both inside the church building and outside in the community returned to a physical setting rather than online. However, the exception was the Food HUB project which utilised one of our buildings as a food warehouse servicing foodbanks in the Borough of Bromley and was able to carry on throughout the year.

• The provision of facilities and support for the local community had to be limited or not take place for most of the year e.g. parent and toddler resources, single parent resources, support and advice for families with children.

• The teaching and training of both full time staff and lay members.

• The resourcing and empowering (including the provision of personnel and finance) of other churches and of Christian work and ministries both in the UK and overseas.

These practices plus many other activities resulting from our aims and Vision Statement have continued throughout the year, with many members being involved in various types of mission work of one kind or another but subject to social distancing and travel restrictions. The use of social media to make contact has become part of the way the church does mission.

In addition it is our policy to alleviate distress and provide care when appropriate.

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HOPE CHURCH ORPINGTON

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Hope Church and the Local Community

Hope Church Orpington is a member of the Churches Together in Orpington, Bromley Common, West Wickham and regularly participates in church forums in Downham. We are also part of Transform Bromley Borough and actively participate in joint initiatives. Through our contacts and direct referrals we have been able to use funds that have been set aside to alleviate hardship caused by the Covid-19 pandemic and also to offer support and help from our staff and church members.

Part of the church's value statement is to "express the love and grace of God to the community". The Church recognises the need to serve the local community and is involved in many initiatives to achieve this; some examples were as follows:

• Parents & Toddlers - two groups that meet every week during term time in two of the church buildings and provide a service for parents with their young children.

• Pop In - two groups that meet every week in two of the church buildings and provide a service for the

• older generation from the community.

• Baby Basics – in conjunction with the Met Police Sexual Exploitation Unit, The Family Nurse Partnership, Local Bromley Young Persons, midwives and health visitors, provide essential supplies and help for vulnerable women including teenage mums, asylum seekers and domestic violence sufferers.

• Youth Work - the youth work team also hold youth meetings and activities for teenagers and young people from the church and the local community. This is held centrally on a Friday night at St Luke’s church for all our congregations. In addition, we hold a number of targeted events and teachings based within our local congregations.

• Single Parents - a single parents meeting is held in the church regularly, helping with life skills, dietary training and providing help and support with Social Services and the local courts.

• Citizens Advice Bureau - the Orpington building is made available to the activities of CAB helping the local community with legal, social and general advice.

• Schools Work - local schools are invited to visit the church as part of their religious education and training and during the year we have launched a lunch club in a local primary school.

• Street Pastors - in conjunction with other local churches we support the street pastors in Orpington and Bromley Town Centres helping the local police and community.

• Marriage Preparation and Support - an opportunity for couples planning to get married to get training as well as life skills for building strong marriages offered on demand.

• Work with women exiting domestic violent relationships – support group with practical help.

• Working in partnership with the Women in Prisons Support Group.

• Teaching English as a second language launched online for families in the local area and further afield.

The church operates out of six locations within the London Boroughs of Bromley and Lewisham, the latest

starting in Bromley North in October 2021.

In October 2021 the Orpington congregation took over 3 units in the Orpington Walnuts Centre with approximately 23,000 sq ft of space. This is seen as a major ministry opportunity and puts the Orpington congregation at the heart of the local community and ready to serve. The units are able to facilitate a Community use and meeting HUB, a meeting place for the Orpington congregation which can hold large events together with an administration block.

The food distribution warehouse, servicing the TBB food project was able to re-locate to the Hope Centre in the Walnuts.

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HOPE CHURCH ORPINGTON

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance

Given that the objects of the church are to advance the Christian Faith and relieve hardship the Directors are pleased with what has been achieved during the year under review. There has been continued expansion of the work of the church in spreading the Christian faith through the six congregations now in operation. Various courses have been run to encourage Christians in their faith, and to give opportunity to those wishing to explore the Christian faith. The Alpha course was run several times online, and the Vision and Values course was run frequently for new members to the church.

In addition, grants totalling £91,506 have been made to various organisations and individuals which are advancing the Christian faith or seeking to relieve hardship including individuals involved in those activities or to individuals who are facing hardship. (This does not include food distributed in kind from the Food Hub)

Financial review

The church's principal source of income is from voluntary donations. Reviewing our financial position for 2021:

We gave away 11% of our income from church activities and ended the year with a deficit of £67,226 (2020 surplus £144,823) on unrestricted funds (including designated funds).

Gifts to external organisations and individuals are considered by the Elders and approved by the Directors on the basis of need and fulfilment of the Charitable objectives. There is no upper or lower limit of support.

The reserves policy of the charity is to maintain the reserve of a minimum of two months’ to a maximum of twelve months’ expenditure, which would cover the employment needs for approximately 3 months and act as operating capital. Two month's unrestricted fund expenditure amounted to approximately £143,500 and unrestricted reserves on general fund, excluding designated funds, held as net current assets amounted to approximately £82,716.The directors continue to look for ways in which reserves may be strengthened although it would be possible to draw on designated fund balances if the need arose (see below).

The Directors have set aside designated funds from general funds for various purposes. The amounts set aside

at the end of the year were £106,941.

Reserves which were restricted and not available for general purposes of the charity amounted to £25,497. Details of the purpose for which these funds were held are detailed in note 20 to the accounts.

A significant event after the end of the reporting period is the sale of the Goodmead Centre, 36 Chislehurst Road, Orpington BR6 0DG for £2.1m. Contracts were exchanged on the 24 August 2022 with a scheduled completion date of 10 November 2022. This freehold property is included in land and buildings in the financial statements at the year end with a net book value of £1,150,626. There is a long term bank loan associated with the property.

Impact of coronavirus (COVID19) pandemic

The impact of COVID-19 in 2020 and into 2021 with the lockdowns by the United Kingdom Government caused a huge impact on all aspects of life in the United Kingdom. Hope Church Orpington was not spared as it affected all aspects of church life and activities. However, the church managed to reach out to the community and its members with an online service and the church buildings in Orpington continued as a hub for food distribution in the area storing and distributing frozen, chilled, fresh, canned and dried food goods to various food banks and churches for wider distribution to the needy in the Borough. The Church took a cautious approach to returning to physical meetings which took place in the autumn.

Reference and administrative information is provided on the page following the cover sheet.

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HOPE CHURCH ORPINGTON

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The Elders are responsible for monitoring risks and a Risk Register is in place which is reviewed at both Elders and Directors meetings at least annually. All major insurable risks are subject to normal church and employers' insurance. The Elders and Directors of Hope Church Orpington believe that the most acute risks facing the organisation lie in the area of health and safety: either risks in the way that we use our buildings or risks because a building’s fabric is old and not up to modern standards.

We have been doing and are continuing to do a significant amount of work in these areas by implementing a programme of repairs to our buildings, communication with staff, volunteers and church attendees, fire drills and liaison with third parties regarding security. With respect to church finances, we recognise that the church is always dependent on the continued generosity of church members and members of the public in support of the charity. Income (excluding food donated in kind) decreased by 8% during the year. The Directors are constantly monitoring cash flow and forward budget to ensure that the church can meet all its liabilities as they fall due. We do have a loan from Metro Bank which we used to purchase the Orpington Goodmead Centre. We see the loan as relatively low risk from the Bank’s perspective as it is 50% underwritten by guarantors from the church.

Plans for the future

During 2022 we will seek to remain flexible in the delivering of ministry and meeting the physical needs of the people of the Borough of Bromley and through our wider work with Regions Beyond into the UK and abroad. We will achieve this by:

• Continuing to seek opportunities to be in the High Streets and other places of prominence where we can better serve our communities.

• Continuing to invest in and coordinating a pan church response to the increase in poverty arising from increase in the cost of living by continuing to manage and grow the food HUB project in collaboration with TBB and the London Borough of Bromley.

• Working with the London City Mission at our Downham Congregation to redevelop the site where the church meets to create a community HUB and worship centre within the next 12 months and allow for the expansion of community mission and congregational growth in 3 to 4 years time.

• Increasing the number of partners who use the new Walnuts Centre facilities to reach more of the community and provide more outreach opportunities.

Structure, governance and management

The charity is a company limited by guarantee.

The Directors who served during the year were:
Tony Hall
Barry Palmer
Matthew Bulpitt
Olayemi Shyllon
Gary Carvosso
Ruth Marchant
Sarah Palmer	(Appointed 24 June 2021)
Ifey Njoku	(Appointed 1 September 2021)
Esau Maponda	(Appointed 1 September 2021)
Cassandra Chiwaridzo	(Appointed 25 November 2021)

Directors are appointed and removed by a majority of Elders. Elders are appointed by existing Elders.

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HOPE CHURCH ORPINGTON

DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Organisation and staffing of Hope Church - Hope Church Orpington is an orthodox, evangelical Protestant Christian church. The church is currently governed by fifteen Elders headed by a lead Elder who is employed by the Church. In total six of the Elders are employed by the Church. Two are full time and four are part time. There are also employed seven further full time staff, five part time members of staff.

A significant number of volunteer members of the church lead, sustain and develop ministries and activities of the church. Their contribution is vital to the success of the charity.

Staffing needs are kept under regular review by the Elders and other Directors. The Elders, Directors and staff are all committed members of the church, and support the vision and values of the church. Hope Church has a structured approach to staff induction, supervision and annual review. Each employee has a written job description that reflects the scope of the role and responsibility they undertake. Their line manager is responsible for coordinating a planned induction at the beginning of their employment. Regular supervision, usually monthly, is given to all employees and interns.

Salaries for staff are set annually by the salary subcommittee. They make recommendations based on performance during the year, any significant changes in responsibilities and RPI.

The oversight of the church is the responsibility of a team of fifteen Elders (Tony Hall - lead Elder, Gary Carvosso, David Jackson, Julian Sanders, Matt Lofthouse, Kennedy Mark, Mike Garforth, Colin Potter, Bruce Anderson, Peter Heath, Jerome Kalan, Darren Upton, Gideon Bodi, Mathew Bulpitt and Olayemi Shyllon), assisted by the other Directors, particularly in the administrative and regulatory oversight of the church. Trevor Payne resigned as an Elder on 1 January 2022 and Peter Harwood resigned as an Elder on 17 July 2022.

The Directors and the Elders are assisted by a team of paid employees and, in common with many churches, a large number of volunteers.

The day to day running of the charity is delegated by the Directors to the Core Team which meets weekly. The Directors agree the overall strategy and budgets, as recommended by the Core team. Two of the Directors usually sit on the Core team and are responsible for communicating any changes and representing the Directors’ decisions.

New Directors are given induction training provided by the Chair of Directors. They receive recent minutes, the latest report and accounts, the governing document and the guidance produced by Stewardship on being a Director/Trustee. Directors are encouraged to attend training and are informed of relevant opportunities.

Hope Church Orpington is part of the Regions Beyond movement and a member of the Evangelical Alliance. Neither of these bodies has control over the operation of the church or its financial affairs.

Barry Palmer

Director Dated: 8 September 2022

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HOPE CHURCH ORPINGTON

STATEMENT OF DIRECTORS' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The directors, who also act as trustees for the charitable activities of Hope Church Orpington, are responsible for preparing the Directors' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the Directors 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and

• prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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HOPE CHURCH ORPINGTON

INDEPENDENT EXAMINER'S REPORT

TO THE DIRECTORS OF HOPE CHURCH ORPINGTON

I report to the Directors on my examination of the financial statements of Hope Church Orpington (the charity) for the year ended 31 December 2021.

Responsibilities and basis of report

As the Directors of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England & Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the

examination giving me cause to believe that in any material respect:

• 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

• 2 the financial statements do not accord with those records; or

• 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

• 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Nigel Hewson FCA DChA

Hewsons Chartered Accountants 80 Woodhurst Avenue Orpington Kent BR5 1AT

Dated: 9 September 2022

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HOPE CHURCH ORPINGTON

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Restricted funds funds 2021 2021 Notes £ £	Unrestricted Restricted funds funds 2021 2021 Notes £ £	Unrestricted Restricted funds funds 2021 2021 Notes £ £	Total Unrestricted Restricted	Total Unrestricted Restricted	Total Unrestricted Restricted	Total
	funds	funds		funds	funds
	2021	2021	2021	2020	2020	2020
	£	£	£	£	£	£
Income from:
Donations and legacies 3	758,927	102,281	861,208	777,867	154,678	932,545
Charitable activities 4	32,971	384	33,355	12,852	-	12,852
Investments 5	958	-	958	505	-	505
Total income	792,856	102,665	895,521	791,224	154,678	945,902
Expenditure on:
Charitable activities 6	860,082	132,146	992,228	646,401	111,419	757,820
Net (expenditure)/income for the year/ Net movement in funds Fund balances at 1 January 2021
	(67,226)	(29,481)	(96,707)	144,823	43,259	188,082
	1,159,603	54,978	1,214,581	1,014,780	11,719	1,026,499
Fund balances at 31 December 2021
	1,092,377	25,497	1,117,874	1,159,603	54,978	1,214,581

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.

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HOPE CHURCH ORPINGTON

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes	2021	2021	2020 £ £ 1,236,360 6,660 25,699 354,675 387,034 (51,452) 335,582 1,571,942 (357,361) 1,214,581 54,978 172,903 986,700 1,159,603 1,214,581	2020 £ £ 1,236,360 6,660 25,699 354,675 387,034 (51,452) 335,582 1,571,942 (357,361) 1,214,581 54,978 172,903 986,700 1,159,603 1,214,581
	£	£	£
Fixed assets
Tangible assets 12 Current assets	11,061 32,323 242,462 285,846 (70,692)	1,233,533 215,154 1,448,687 (330,813) 1,117,874 25,497 1,092,377 1,117,874	6,660 25,699 354,675 387,034 (51,452) 172,903 986,700
Stocks 14
Debtors 15
Cash at bank and in hand Creditors: amounts falling due within one year 16
Net current assets
Total assets less current liabilities Creditors: amounts falling due after more than one year 17 Net assets
				(357,361)
				1,214,581 54,978 1,159,603 1,214,581
Income funds
Restricted funds 20
Unrestricted funds	106,941 985,436
Designated funds 21
General unrestricted funds

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HOPE CHURCH ORPINGTON

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.

The Directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Directors on 8 September 2022

Barry Palmer Director

Company Registration No. 6738209

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HOPE CHURCH ORPINGTON

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes Cash flows from operating activities Cash (absorbed by)/generated from operations 25 Investing activities Purchase of tangible fixed assets	2021		2020	£ 232,157
	£	£	£
	(13,040) (74,686) 958 (73,728) (25,445) (25,445) (112,213) 354,675 242,462		(13,974) 505 (24,122)
Investment income received
Net cash used in investing activities
				(13,469)
Financing activities
Repayment of bank loans Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
				(24,122)
				194,566 160,109 354,675

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HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Hope Church Orpington is a private company limited by guarantee incorporated in England and Wales. The registered office is The Goodmead Centre, 36 Chislehurst Road, Orpington, Kent, BR6 0DG.

1.1 Accounting convention

The accounts have been prepared in accordance 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). 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 £.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note..

1.2 Going concern

The Directors have considered the day to day cash flow requirements of the charity and have a reasonable expectation that the charity has adequate resources to continue in operational existence for at least a further 12 months. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements. This assessment is undertaken in light of the recent developments arising from the coronavirus (COVID 19) pandemic. The charity has not seen a significant reduction in voluntary income since lockdown measures were imposed in the UK and the directors believe that finances will not be significantly impacted by the pandemic.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Directors in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Designated funds comprise funds which have been set aside at the discretion of the Directors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts.

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 accounts.

1.4 Income recognition

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 is recognised at the time of the donation.

Goods donated for distribution are valued at estimated cost to the charity were it to purchase those goods itself and are included in income when received and in grants payable when distributed. Where impractical to measure the value of donated goods on receipt they are included in income when distributed.

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.

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HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised in these accounts. More information about the contribution of volunteers is provided in the directors' report.

1.5 Expenditure recognition

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.

Grants and donations payable are taken into account at the earlier of when they are paid or become legally enforceable.

Other than the normal commitments under contracts of employment there are no contractual or constructive obligations to future expenditure at the balance sheet date. Where the directors have authorised expenditure which is not yet legally enforceable or has become a constructive obligation, amounts are set aside into funds designated for the purpose.

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.. The cost of assets transferred from Hope Church Orpington trust is the market value on the date of transfer. Assets costing less than £250 are written off as an expense in the year in which the expenditure is incurred. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings straight line basis over 50 years (buildings only) Improvements to short leasehold over the term of the lease to the earliest break point Fixtures, fittings & equipment straight line basis over 3 - 10 years depending on useful life

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 net income/(expenditure) for the year.

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

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.

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HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

• 1 Accounting policies

(Continued)

1.10 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.

1.11 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.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Directors 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 2021 2021 £ £	Unrestricted Restricted funds funds 2021 2021 £ £	Unrestricted Restricted funds funds 2021 2021 £ £	Total Unrestricted Restricted	Total Unrestricted Restricted	Total Unrestricted Restricted	Total
	funds	funds		funds	funds
	2021	2021	2021	2020	2020	2020
	£	£	£	£	£	£
Donations and gifts	728,927	18,494	747,421	747,867	25,113	772,980
Grants receivable	30,000	-	30,000	30,000	68,560	98,560
Donated goods and services
	-	83,787	83,787	-	61,005	61,005
	758,927	102,281	861,208	777,867	154,678	932,545

Of the donated goods and services referred to above £48,331 (2020: £49,776) relates to the activities of the initiative operating under the name of the Transform Bromley Borough Food Partnership. More detailed information is provided at note 7. The balance of the donated goods relate to Baby Basics which is a general church initiative providing essential equipment, clothing and toiletries for women and families in extreme need

.

• 14 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

4 Charitable activities

	2021	2020
	£	£
Church activities and events	8,298	1,848
Services provided under contract	20,000	-
Charitable rental income	1,237	560
Other income	3,820	10,444
	33,355	12,852
Analysis by fund
Unrestricted funds	32,971	12,852
Restricted funds	384	-
	33,355	12,852

5 Investments

	Unrestricted	Unrestricted
	funds	funds
	2021	2020
	£	£
Interest receivable	958	505

• 15 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

6 Charitable activities

Church activities Food distribution £ £	Church activities Food distribution £ £	Church activities Food distribution £ £	Total 2021	Total 2020
	£	£	£	£
Staff costs	429,163	12,000	441,163	326,086
Depreciation and impairment	77,513	-	77,513	44,764
Orpington premises and operating costs	47,681	13,000	60,681	35,552
Bromley premises and operating costs	36,046	-	36,046	25,721
West Wickham & Chislehurst premises and operating costs
	7,328	-	7,328	7,922
Downham premises and operating costs	7,571	-	7,571	8,854
Evangelism and community outreach	4,545	1,751	6,296	13,170
Children's and youth work	17,084	-	17,084	3,792
Church family activities	1,299	-	1,299	5,787
Training future leaders	19,143	-	19,143	5,551
Conferences and other training	1,305	-	1,305	4,000
Ministerial and travel expenses	8,193	-	8,193	8,001
Other charitable expenditure	1,077	-	1,077	563
	657,948	26,751	684,699	489,763
Grant funding of activities (see note 8)	91,506	70,453	161,959	141,182
Share of support costs (see note 9)	137,565	-	137,565	123,722
Share of governance costs (see note 9)	8,005	-	8,005	3,153
Analysis by fund
	895,024	97,204	992,228	757,820
Unrestricted funds	848,082	12,000	860,082	646,401
Restricted funds	46,942	85,204	132,146	111,419
	895,024	97,204	992,228	757,820

Congregations meet in Orpington, Bromley Common, West Wickham, Downham, Chislehurst and Bromley North. The premises and operating costs referred to above reflect the costs of facilitating meetings in each of these locations.

• 16 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

7 Description of charitable activities

Church activities

Church activities includes all expenditure directly related to the activities of the congregations meeting in Orpington, Bromley Common, West Wickham, Downham, Chislehurst and Bromley North.

Food distribution:

The figures reported relate to an initiative organised by churches in Bromley Borough, listed below, of which Hope Church Orpington is the lead church and provides warehouse space at their Orpington premises. The initiative operates under the name of Transform Bromley Borough Food Partnership (TBBFP). All the income of the initiative has been reported in these accounts and food distributed from the Orpington hub to food banks and other food distribution efforts by participating churches has been included as grants to institutions.

The majority of food received by TBBFP is from the Fareshare initiative with a very short shelf life and has been valued at 27p per kilo (2020: 26p per kilo) and included in income under the heading donated goods and services. Food purchased is included at cost. Food distributed and included in grants to organisations has been valued at cost or estimated market value in the same way as described for income. Due to the short life of the food no stock was held at the distribution centre at the year end as it is received and dispatched to food banks on the same day.

The participating churches and associated groups who have received food from the initiative are: Hope Church Orpington Bromley Christian Centre Christ Church Anerley Citygate Beckenham Whitefoot & Downham Food Plus Brook Lane Community Church Hayes Community Food Bank Living Well, Bromley St Edwards Mottingham Unity Church Community Fridge Christchurch Orpington St Nicholas Community Larder, Orpington

Jubilee Church Bromley is involved in supporting the initiative but did not receive donated food.

• 17 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

8 Grants payable

Church activities Food distribution £ £ Grants to institutions:	Church activities Food distribution £ £ Grants to institutions:	Church activities Food distribution £ £ Grants to institutions:	Total	2020
	£	£	£	£
Grants to institutions:
Regions Beyond	25,200	-	25,200	38,718
London City Mission	8,750	-	8,750	10,500
Hope for Tomorrow Global	6,000	-	6,000	-
Lesotho Church	3,000	-	3,000	-
Transform Bromley Borough Food Partnership	-	70,453	70,453	65,543
Rio Vivo Church Brazil	-	-	-	2,177
Other grants of less than £1,000	-	-	-	710
Other	314	-	314	-
	43,264	70,453	113,717	117,648
Grants to individuals	48,242	-	48,242	23,534
	91,506	70,453	161,959	141,182

Grants categorised above as Transform Bromley Borough Food Partnership represent food and equipment distributed by Hope Church to members of the Transform Bromley Borough Food Partnership initiative. Hope Church Orpington acted as lead church in the initiative offering warehouse facilities and coordinating distribution to the other organisations. The organisations participating in the initiative are listed in note 7.

9 Support costs

Support costs
	Support costs Governance costs		2021 Support costs Governance costs			2020
	£	£	£	£	£	£
Staff costs	80,039	-	80,039	69,043	-	69,043
Administration expenses	40,303	-	40,303	36,124	-	36,124
Interest & bank charges	17,223	-	17,223	18,555	-	18,555
Accountancy	-	4,050	4,050	-	2,640	2,640
Legal and professional	-	3,955	3,955	-	513	513
	137,565	8,005	145,570	123,722	3,153	126,875

Accountancy costs include fees payable to the independent examiner of £2,650 (2020: £2,500) for fees in connection with their report and £1,400 (2020: £1,400 less an over provision of £1,260) for other services.

• 18 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10 Directors

The following Directors received remuneration in accordance with the provisions of the governing document: Tony Hall received remuneration of £52,520 (2020: £50,667) plus pension contributions of £5,252 (2020: £5,067) and his wife, Tina Hall, received remuneration of £11,517 (2020: £11,200) plus pension contributions of £1,152 (2020: £1,120). Gary Carvosso received remuneration of £16,160 (2020: £15,733) plus pension contributions of £1,616 (2020: £1,573). During the year Molly Carvosso, daughter of Gary Carvosso, received £3,616 in connection with her employment as media assistance with the charity.

None of the other Directors (or any persons connected with them) received any remuneration during the year, but two of them incurred expenses of £2,316 (2020: £1,909) in connection with their duties as employees or volunteers rather than as directors and one of them received £200 (2020: £800) to cover expenses accommodating an intern working at the church.

Donations received from the directors and persons connected to them for the year totalled £81,301 (2020: £75,334).

11 Employees

Number of employees

The average monthly headcount during the year was:

Number of employees The average monthly headcount during the year was:
	2021	2020
	Number	Number
Ministerial staff	13	11
Support staff	5	4
	18	15
Employment costs	2021	2020
	£	£
Wages and salaries	448,855	341,781
Social security costs	36,467	26,550
Other pension costs	35,880	26,798
	521,202	395,129

There were no employees whose annual remuneration was £60,000 or more.

• 19 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

12 Tangible fixed assets

Tangible fixed assets
	Land and buildings Improvements to short leasehold		Fixtures, fittings & equipment	Total
	£	£	£	£
Cost
At 1 January 2021	1,359,421	115,006	166,403	1,640,830
Additions	-	61,332	13,354	74,686
Disposals	-	-	(1,579)	(1,579)
At 31 December 2021	1,359,421	176,338	178,178	1,713,937
Depreciation and impairment
At 1 January 2021	190,597	67,826	146,047	404,470
Depreciation charged in the year	18,198	46,393	12,922	77,513
Eliminated in respect of disposals	-	-	(1,579)	(1,579)
At 31 December 2021	208,795	114,219	157,390	480,404
Carrying amount
At 31 December 2021	1,150,626	62,119	20,788	1,233,533
At 31 December 2020	1,168,824	47,180	20,356	1,236,360

On 24 August 2022 contracts were exchanged for the sale of the charity's entire freehold land and buildings at The Goodmead Centre, 36 Chislehurst Road, Orpington for £2.1 million with a scheduled completion date of 10 November 2022.

13 Financial instruments

Financial instruments measured at amortised cost comprise the loan financing provided by Metro Bank PLC to the church.

	2021	2020
	£	£
Bank loans	357,362	382,807
Payable within one year	26,549	25,446
Payable after one year	330,813	357,361
Amounts included above which fall due after five years:
Payable by instalments	211,908	243,753

The bank loan financing is in the form of a secured loan with an interest rate of 4.25% above the lender's published base rate. The charge is over a property at the principal address of the charity which had a net book value at 31 December 2021 of £1,150,626. Two of the directors have each provided a personal guarantee of £41,250 in support of the bank loan.

• 20 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

14 Stocks
Finished goods and goods for resale 15 Debtors Amounts falling due within one year: Other debtors Prepayments and accrued income 16 Creditors: amounts falling due within one year	2021	2020
	£	£
	11,061	6,660
	2021	2020
	£	£
	19,474	12,087
	12,849	13,612
	32,323	25,699
Bank loans Other taxation and social security Deferred income 18 Accruals and deferred income 17 Creditors: amounts falling due after more than one year Bank loans	2021	2020
	£	£
	26,549	25,446
	11,631	10,367
	-	1,465
	32,512	14,174
	70,692	51,452
	2021	2020
	£	£
	330,813	357,361

• 21 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

18 Deferred income

Other deferred income	2021	2020
	£	£
	-	1,465
Deferred income is included in the financial statements as follows:
	2021	2020
	£	£
Deferred income is included within:
Current liabilities	-	1,465
Movements in the year:
Deferred income at 1 January 2021	1,465	1,226
Released from previous periods (1,465)		-
Resources deferred in the year	-	239
Deferred income at 31 December 2021
	-	1,465

19 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 the statement of financial activities in respect of defined contribution schemes was £35,880 (2020: £26,798). It is not currently the policy of the charity to make a re-charge to restricted funds for any employee costs including employer pension contributions; therefore the above costs are allocated entirely against unrestricted funds.

• 22 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

20 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:

Movement in funds Movement in funds Balance at 1 January 2020 Incoming resources Resources expended Balance at 1 January 2021 Incoming resources Resources expended Balance at 31 December 2021 £ £ £ £ £ £ £ Special offering and collections 7,285 12,596 (19,505) 376 2,736 (2,386) 726 Overseas aid 709 2,131 (2,790) 50 1,500 (1,550) - Micro Mission - - - - 1,250 (999) 251 West Wickham 154 - - 154 - - 154	Movement in funds Movement in funds Balance at 1 January 2020 Incoming resources Resources expended Balance at 1 January 2021 Incoming resources Resources expended Balance at 31 December 2021 £ £ £ £ £ £ £ Special offering and collections 7,285 12,596 (19,505) 376 2,736 (2,386) 726 Overseas aid 709 2,131 (2,790) 50 1,500 (1,550) - Micro Mission - - - - 1,250 (999) 251 West Wickham 154 - - 154 - - 154	Movement in funds Movement in funds Balance at 1 January 2020 Incoming resources Resources expended Balance at 1 January 2021 Incoming resources Resources expended Balance at 31 December 2021 £ £ £ £ £ £ £ Special offering and collections 7,285 12,596 (19,505) 376 2,736 (2,386) 726 Overseas aid 709 2,131 (2,790) 50 1,500 (1,550) - Micro Mission - - - - 1,250 (999) 251 West Wickham 154 - - 154 - - 154	Movement in funds Movement in funds Balance at 1 January 2020 Incoming resources Resources expended Balance at 1 January 2021 Incoming resources Resources expended Balance at 31 December 2021 £ £ £ £ £ £ £ Special offering and collections 7,285 12,596 (19,505) 376 2,736 (2,386) 726 Overseas aid 709 2,131 (2,790) 50 1,500 (1,550) - Micro Mission - - - - 1,250 (999) 251 West Wickham 154 - - 154 - - 154	Movement in funds Movement in funds Balance at 1 January 2020 Incoming resources Resources expended Balance at 1 January 2021 Incoming resources Resources expended Balance at 31 December 2021 £ £ £ £ £ £ £ Special offering and collections 7,285 12,596 (19,505) 376 2,736 (2,386) 726 Overseas aid 709 2,131 (2,790) 50 1,500 (1,550) - Micro Mission - - - - 1,250 (999) 251 West Wickham 154 - - 154 - - 154	Movement in funds Movement in funds Balance at 1 January 2020 Incoming resources Resources expended Balance at 1 January 2021 Incoming resources Resources expended Balance at 31 December 2021 £ £ £ £ £ £ £ Special offering and collections 7,285 12,596 (19,505) 376 2,736 (2,386) 726 Overseas aid 709 2,131 (2,790) 50 1,500 (1,550) - Micro Mission - - - - 1,250 (999) 251 West Wickham 154 - - 154 - - 154	Movement in funds Movement in funds Balance at 1 January 2020 Incoming resources Resources expended Balance at 1 January 2021 Incoming resources Resources expended Balance at 31 December 2021 £ £ £ £ £ £ £ Special offering and collections 7,285 12,596 (19,505) 376 2,736 (2,386) 726 Overseas aid 709 2,131 (2,790) 50 1,500 (1,550) - Micro Mission - - - - 1,250 (999) 251 West Wickham 154 - - 154 - - 154	Movement in funds Movement in funds Balance at 1 January 2020 Incoming resources Resources expended Balance at 1 January 2021 Incoming resources Resources expended Balance at 31 December 2021 £ £ £ £ £ £ £ Special offering and collections 7,285 12,596 (19,505) 376 2,736 (2,386) 726 Overseas aid 709 2,131 (2,790) 50 1,500 (1,550) - Micro Mission - - - - 1,250 (999) 251 West Wickham 154 - - 154 - - 154
		Incoming esources Resources expended Balance at 1 January 2021 r			Incoming esources Resources expended Balance at 31 December 2021
	£	£	£	£	£	£	£
		12,596 2,131			2,736 1,500 1,250
	7,285		(19,505)	376		(2,386)	726
Overseas aid	709		(2,790)	50		(1,550)	-
Micro Mission	-	-	-	-		(999)	251
West Wickham
	154	-	-	154	-	-	154
Baby Basics	3,571	14,621 5,005 120,325 154,678	(8,570)	9,622	36,230 (33,282) 3,960 (4,503) 56,989 (89,426) 102,665 (132,146)	(33,282)	12,570
Hardship fund	-		(1,688)	3,317		(4,503)	2,774
Food distribution fund
	-		(78,866)	41,459		(89,426)	9,022
	11,719		(111,419)	54,978			25,497

Special offerings and collections - receives monies from special offerings or gifts received for a restricted purpose which do not form part of another restricted fund. The transfer out of restricted funds reflects restricted income fully expended on assets for ongoing use for unrestricted purposes.

Overseas aid - this fund represents monies raised specifically for relief of poverty in overseas countries.

Micro Mission - funds received to facilitate smaller evangelistic ventures and initiatives.

West Wickham - this fund receives income restricted for use in meeting expenses of the West Wickham congregation.

Baby Basics - this fund receives income restricted for use in providing essential equipment, clothing and toiletries for women and families in extreme need.

Hardship fund - this fund receives gifts for helping those facing financial difficulties.

Food distribution fund - this fund receives income to facilitate the activities of the Transform Bromley Food Partnership initiative.

• 23 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

21 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 2020 r £	Balance at 1 January 2020 r £	Movement in funds	Movement in funds	Movement in funds	Movement in funds	Movement in funds	Movement in funds	Movement in funds
		Incoming esources Resources expended		Transfers Balance at 1 January 2021 r		Incoming esources Resources expended Balance at 31 December 2021
	£	£	£	£	£	£	£	£
						-
New congregations	-	-	-	38,000	38,000		(19,316)	18,684
Repair and maintenance fund	43,000	-	-	7,000	50,000	-	-	50,000
Christ Central Church, Penge	-	-	-	-	-	9,000	-	9,000
Social action fund	13,652	-	-	-	13,652	-	-	13,652
Central funds and infrastructure team	-	-	-	44,000	44,000	- - - - 9,000	(42,846)	1,154
Hardship fund	-	3,000 7,000 - 10,000	(1,613)	-	1,387		(300)	1,087
Food distribution fund	-		(1,777)	12,000	17,223		(12,000)	5,223
Micro mission fund	-		(1,359)	10,000	8,641		(500)	8,141
	56,652		(4,749)	111,000	172,903		(74,962)	106,941

• 24 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

• 21 Designated funds (Continued)

New Congregations - money set aside to establish new congregations.

Repair and maintenance fund - transfers have been made to this fund to facilitate repair of the spire at St Luke's Church Bromley Common. In accordance with a lease dated 23 December 2014 the charity is to repair and restore the spire within 5 years of the date of the lease. The spire repair was not carried out within 5 years of the date of the lease due to lengthy negotiations with the Diocese Rochester and the Covid pandemic. However, the repairs expected cost is estimated to be between £40,000 and £50,000.

Christ Central Church, Penge - are funds for mentoring services.

Social action fund - a gift was received towards the social action of the church. It has since been clarified with the donor that the funds can be used at the discretion of the directors who have agreed it will be used as far as possible for social action and therefore the income has been treated as designated.

Central funds and infrastructure team - money set aside to facilitate the work of the infrastructure team.

Hardship fund - a fund to provided help for those facing financial hardship.

Food distribution fund - funds set aside to assist the work of the Transform Bromley Borough Food Partnership initiative.

Micro mission fund - funds set aside to facilitate smaller evangelistic ventures and initiatives.

• 25 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

22 Analysis of net assets between funds	22 Analysis of net assets between funds	22 Analysis of net assets between funds				Total 2020 £ 1,236,360 335,582
Unrestricted funds Restricted funds 2021 2021 £ £ Fund balances at 31 December 2021 are represented by: Tangible assets 1,233,533 - Current assets/(liabilities) 189,657 25,497 Long term liabilities (330,813) - 1,092,377 25,497			Total Unrestricted funds		Restricted funds
	2021	2021	2021	2020	2020
	£	£	£	£	£
	1,233,533	-	1,233,533	1,236,360	-
	189,657	25,497	215,154	280,604	54,978
	(330,813)	-	(330,813)	(357,361)	-	(357,361)
						1,214,581
	1,092,377	25,497	1,117,874	1,159,603	54,978

• 26 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

23 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 shown below. The commitments relate to a lease of St Luke's Bromley Common and the lease of photocopier equipment.

Within one year Between two and five years	2021	2020
	£	£
	12,658	20,632
	17,500	30,158
	30,158	50,790
24 Related party transactions
Remuneration of key management personnel The remuneration of key management personnel is as follows. Aggregate compensation
	2021	2020
	£	£
	188,965	159,800

Key management personnel comprise the employed directors and three other individuals who are part of the leadership team.	Key management personnel comprise the employed directors and three other individuals who are part of the leadership team.	Key management personnel comprise the employed directors and three other individuals who are part of the leadership team.
25 Cash generated from operations	2021	2020
(Deficit)/surpus for the year Adjustments for: Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase) in stocks (Increase)/decrease in debtors Increase/(decrease) in creditors (Decrease)/increase in deferred income Cash (absorbed by)/generated from operations	£	£
	(96,707)	188,082
	(958)	(505)
	77,513	44,764
	(4,401)	(3,479)
	(6,624)	12,200
	19,602	(9,144)
	(1,465)	239
	(13,040)	232,157

• 27 -

HOPE CHURCH ORPINGTON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

26 Analysis of changes in net (debt)/funds At 1 January 2021 Cash flows At 31 December 2021 £ £ £ Cash at bank and in hand 354,675 (112,213) 242,462 Loans falling due within one year (25,446) (1,103) (26,549) Loans falling due after more than one year (357,361) 26,548 (330,813) (28,132) (86,768) (114,900)	26 Analysis of changes in net (debt)/funds At 1 January 2021 Cash flows At 31 December 2021 £ £ £ Cash at bank and in hand 354,675 (112,213) 242,462 Loans falling due within one year (25,446) (1,103) (26,549) Loans falling due after more than one year (357,361) 26,548 (330,813) (28,132) (86,768) (114,900)	26 Analysis of changes in net (debt)/funds At 1 January 2021 Cash flows At 31 December 2021 £ £ £ Cash at bank and in hand 354,675 (112,213) 242,462 Loans falling due within one year (25,446) (1,103) (26,549) Loans falling due after more than one year (357,361) 26,548 (330,813) (28,132) (86,768) (114,900)	26 Analysis of changes in net (debt)/funds At 1 January 2021 Cash flows At 31 December 2021 £ £ £ Cash at bank and in hand 354,675 (112,213) 242,462 Loans falling due within one year (25,446) (1,103) (26,549) Loans falling due after more than one year (357,361) 26,548 (330,813) (28,132) (86,768) (114,900)
		(1,103) (26,549)
		26,548 (330,813)
	(28,132)	(86,768) (114,900)

• 28 -