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← The Reality Of Grace Ministries International Limited

2023-03-31-accounts

Registered Company Number 05471608 (England and Wales) Registered Charity Number 1131256

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

CONTENT OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Report of the Trustees 1-5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Cash Flow Statement 9
Notes to the Cash Flow Statement 10
Notes to the Financial Statement 11-15
Detailed Statement of Financial Activities 16

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

The Charity's objects are:

“To preach and declare to the world the matchless Grace of God;”

"The relief of poverty worldwide."

Our motto: "To snatch sinners from the grips of satan, establish them in the liberty wherewith Christ has set them free . To help them to discover God's plan and purpose for their life, and to fulfil it.

To prepare them for the some coming of our Lord Jesus Christ".

These objects are charitable and operate for the public benefit. It pursues these objects by the operation of a centre for Christian worship at its premises in London. In determining how best to pursue these objects the Trustees have given regard ro the Charity Commission’s guidance on public benefit.

Objectives and aims

The Charity's object is the advancement of the evangelical Christian faith worldwide. Our strategy in fulfilling this objective in particular but not exclusively is to evangelise and spread the Gospel and the teachings of the Christian Faith by:

Significant activities

Volunteers are involved in the activities conducted by The Reality of Grace Ministries International including:

-Running outreaches

As the Global Pandemic has wound down, our outreach has expanded and enabled us to maintain the following initiatives: -Running Sunday services on-site and Midweek programmes both at defined locations and online.

In the consideration of our activities, the Trustees have given regard to the Charity Commission's guidance on public benefit.

Strategies

The Charity’s strategy for achieving this objective for the public benefit was:

To reposition itself to effectively reach those presently outside of its dominant demographic and fulfil the vision of the church.

Continued…

Page 1

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Significant activities that contributed to the achievement of these objectives were:

Events and activities organised during the year in line with the charitable objectives to promote the Christian faith and help the less privilege and disadvantaged in our community includes: Holding church services and meeting three time a week, evangelism, visiting the sick in homes and hospitals and counselling.

Youth Programme which attempts to engage the youths and keep them off the street and crime.

The charity has over 20 volunteers who support and make an invaluable contribution to the operations of the charity. Some of the key departments include:

Intervessory Group; Children's Church; Ushering Department; Youth Church; Men's Fellowship; Women's Group; Evangelism; Technical; Video and Media; Choir; Hospitality.

ACHIEVEMENTS AND PERFORMANCE

The results for the year, and the financial position as at the year end, are as set out in the attached financial statements. The Trustees consider the results to be satisfactory. The current policy of the Trustees is to maintain cash reserves of between £5,000 and £10,000. The minimum shall not fall below £5,000. As part of this policy, the minimum level of cash reserves, whilst forming part of the working capital, is regarded by the Trustees as being available solely to meet unforeseen expenditure arising outside the scope of normal day-to-day activities. The requirement was fulfilled or exceeded throughout the financial year.

FINANCIAL REVIEW

Principal funding sources

The Charity's principal funding source is from members and individuals who attend services and make contributions in the form of freewill offerings, tithes and other donations.

Investment policy and objectives

The trustees are of the opinion that the performance of the charity from a financial standpoint is in line with their expectations and plans for the charity.

Reserves policy

As at 31st March 2023, the level of reserves available for the Charity's use (i.e. unrestricted funds and not represented by fixed assets) was £299,514.

These reserves are held to ensure that we can meet our commitments to providing our services and activities and staffing obligations in the event of a reduction or absence of funds/volunteer donations ; and to meet some key events that are capital intensive.

FUTURE PLANS

The Charity continues to explore ways of furthering its charitable objectives in an effective manner by ensuring there is awareness of its services and by seeking opportunities to be more involved in the community.

The Charity seeks to provide services and activities that meet the needs of people and contribute to a positive change in the moral and spiritual climate in its environs, this reflects its Christian ethos and beliefs.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Church is a charitable company limited by guarantee, incorporated on 3rd June 2005 and registered as a charity on 20th August

Continued…

Page 2

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

  1. It is governed by its Memorandum and Articles of Association and is managed by a Board of Trustees. Decisions are determined by a simple majority vote by the Trustees who set the strategic direction of the Charity.

Delegated authority has been given to the Executive Pastor and Leadership Team for the day-to-day running of the operations of the Charity.

The Trustees have assessed the major risks to which the Charity is exposed, in particular those relating to the specific operational areas of the Charity and its finances. The Trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems and by examining the operational and business risks faced by the Charity, they have established effective systems to mitigate those risks.

The remuneration of the charity’s key management personnel is reviewed and set annually by the trustees. The following guiding principles are used in determining the appropriate level: Transparency; Appropriateness and benchmarking against external comparators; Expertise and experience; and Competitive recruitment and talent retention.

Recruitment and appointment of new trustees

Trustees are selected on the basis of the contribution that they will make to the governance of the organisation and the skills that they will contribute. They are provided with copies of the "Charity Commission's Guidance to Trustees" and are also provided with training as and when required.

Risk management

The Trustees review the major risks that the charity is exposed to at their meetings and are satisfied that systems are in place to manage the risks that have been identified. In particular, insurance cover is in place and the finances of the Charity are kept under review. Appropriate Disclosure & Barring Service check (DBS), supported by regularly reviewed policies are done for all those who work with children or other vulnerable groups with the Charity. Internal control risks are minimised by the implementation of procedures for authorisation of significant transactions and projects. Procedures are in place to ensure compliance with health and safety of members of staff, volunteers, clients and visitors to the Charity. Qualified and appropriately experienced employees are appointed and external consultants are engaged to advise on significant issues.

Continued…

Page 3

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

REFERENCE AND ADMINISTRATIVE DETAILS

The Reality of Grace Vision -Snatch sinners from the grip of satan, establish them in the liberty where Christ has set them free , help them discover their purpose for living and prepare them for the soon return of Our Lord Jesus Christ.

Trustees and Directors

Andrew Okungbowa Emmanuel Agholor Olaide Rokosu-Euzebio

Company's secretary

Olaide Rokosu-Euzebio

Presiding Pastor

Pastor Oluwole Adekunle

Registered Company number 05471608 (England and Wales)

Registered Charity number 1131256

Registered office

124 City Road London EC1V 2NX

Bankers

HSBC UK 85 Lewisham High Street London SE13 6BE

Independent Examiners

Tolulope Fasanya, AFA MIPA Institute of Financial Accountants Anchor Business Solutions Limited 1[st] floor Unit 24 Acorn House 351-397 Midsummer Boulevard MK9 3HP United Kingdom

Continued...

Page 4

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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

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

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

This report was approved by the board of trustees and signed on their behalf by:

Andrew Okungbowa

18 August 2023

Page 5

THE INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF

THE REALITY OF GRACE MINISTRIES INTERNATIONAL

YEAR ENDED 31 MARCH 2023

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31/03/2023 set out on pages 7 to 16.

Responsibilities and basis of report

As the charity’s trustees of the Company (who are also the directors of the company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”). Having satisfied myself that the accounts of the Company are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (“the 2011 Act”). In carrying out my examination, I have followed the Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

The company’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified Accountant. with IFA.

I have completed my examination. I confirm that no material matters have come to my attention which gives me cause to believe that:

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 accounts to be reached.

Tolulope Fasanya, AFA MIPA Institute of Financial Accountants Anchor Business Solutions Limited 25/26 Rabans Close Aylesbury HP19 8RS

21 August 2023

Page 6

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Investment income
3
EXPENDITURE ON
Charitable activities
Charitable activities
4
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 31.03.23
Unrestricted
fund
£
230,433
491
230,923
217,472
217,472
13,451
285,565
299,015		 31.03.22
Total
funds
£
223,280
12
223,292
191,959
191,959
31,333
254,231
285,564

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes form part of these financial statements

Page 7

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2023

Notes
FIXED ASSETS
Tangible assets
8
CURRENT ASSETS
Debtors
9
Cash at bank
CREDITORS
Amount falling due within one year
10
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
Unrestricted funds
TOTAL FUNDS		 31.03.23
Unrestricted
fund
£
17,996
36,887
246,631
283,518
(2,500)
281,018
299,015
299,015
299,015
299,015		 31.03.22
Total
funds
£
24,279
31,379
234,815
266,194
(4,908)
261,286
285,564
285,564
285,564
285,564

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006 however, in accordance with Section 145 of the Charities Act 2011, the accounts have been examined by an independent examiner and their report has been included in these financial statements.

The directors (who are charitable company’s trustees for the purposes of charity law) acknowledge their responsibilities:

The financial statements were approved by the Board of Directors and were signed on its behalf by:

Andrew Okungbowa 18 August 2023

Company number: 05471608 Charity number: 1131256

Page 8

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

Note
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing
Change in cash and cash equivalent in
the reporting period
Cash and cash equivalent at the
beginning of the reporting period
Cash and cash equivalent at the end of
the reporting period		 31.03.23
£
11,817
11,817
-
11,817
11,817
234,815
**246,632 **		 31.03.22
£
(10,777)
(10,777)
(23,995)
(34,772)
(34,772)
269,588
234,816

The notes form part of these financial statements

Page 9

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2.

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustment for:
Depreciation charges
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash provided by operations
SIS OF CHANGE IN NET FUNDS
At 1.4.22
£
Net cash
Cash at bank
234,816
234,816
Total
234,816		 31.03.23
£
13,451
6,282
(5,509)
(2,408)
11,817
Cash flow
£
11,817
11,817
11,817		 31.03.22
£
31,333
6,805
(966)
(47,950)
(10,777)
At 30.3.23
£
246,632
246,632
**246,632 **

ANALYSIS OF CHANGE IN NET FUNDS

The notes form part of these financial statements

Page 10

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going concern

The trustees (who are the charitable company's directors for the purposes of company law) have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Income

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

Expenditure

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

Tangible fixed assets

Depreciation is provided over a three years period which is deemed the useful economic life to write-off each asset on a straight-line basis.

Office equipment Straight-line
Furniture & fittings Straight-line
Computer Straight-line
PA System Straight-line
Video Equipment Straight-line
Motor Vehicle Straight-line

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

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

Continued…

Page 11

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease

2. DONATIONS AND LEGACIES

ONS AND LEGACIES
Donations
Gift aid
Other income
Job retention scheme		 31.03.23
£
191,742
36,887
1,804
-
230,433		 31.03.22
£
155,989
31,379
8,373
27,539
223,280

3. INVESTMENT INCOME
MENT INCOME 31.03.23 31.03.22
£ £
Bank account interest **491 ** 12

4. CHARITABLE ACTIVITIES COSTS

Direct
costs
£
Charitable activities
81,595
SUPPORT COSTS
Management
£
Other resources expended
Charitable activities
133,159
Bank charges
218
Independent examiner fee
-
133,377
NET INCOME (EXPENDITURE
Net income (expenditure) is stated after charging/crediting
Independent examiner's remuneration
Depreciation - owned assets		 Support
costs
£
135,877
Governance
cost
£
-
-
2,500
2,500		 31.03.23
Total
£
217,472
31.03.23
Total
£
133,159
218
2,500
135,877
31.03.23
£
2,500
**6,282 **		 31.03.22
Total
£
191,959
31.03.22
Total
£
130,831
52
2,500
133,382
31.03.22
£
2,500
6,805
Continued…

5. NET INCOME (EXPENDITURE

Page 12

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6.
STAFF COSTS
Salaries and wages
Tax and national insurance
pensions
The average number of employees during the year was as follows:
Ministry
Administration
There was no employee that received remuneration exceeding £60,000 during
.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
INCOME AND ENDOWMENT FROM
Donations and legacies
Investment income (Bank interests received)
EXPENDITURE ON
Charitable activities
Charitable activities
Support costs
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 31.03.23
£
106,694
9,557
3,519
119,769
31.03.23
1
2
3
the period.
Unrestricted
fund
31.03.23
£
230,433
491
230,923
81,595
135,877
217,472
13,451
285,565
299,016		 31.03.22
£
106,694
7,007
3,438
117,139
31.03.22
1
2
3
Unrestricted
fund
31.03.22
£
223,280
12
223,292
58,576
133,382
191,959
31,333
254,231
285,564

7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Continued…

Page 13

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8. TANGIBLE FIXED ASSETS

COST
At 1 April 2022
Addition
At 31 March 2023
DEPRECIATION
At 1April 2022
Charge for the year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 Office
Equipment
£
12,576
-
12,576
12,292
284
12,576
-
284		 Motor
Vehicle
£
36,710
-
36,710
12,715.00
5,999
18,714
17,996
23,995		 Totals
£
49,286
-
49,286
25,007
**6,282 **
31,290
17,996
24,279

9. DEBTORS

DEBTORS: AMOUNT FALLING DUE WITHIN ONE YEAR

10.

11.

Trade debtors (Rental income)
Accrued income (Gift aid)
CREDITORS: AMOUNT FALLING DUE WITHIN ONE YEAR
Tax and national insurance (HMRC)
Accrued independent examination fee
MOVEMENT IN FUNDS
At 1.3.22
£
Unrestricted funds
General fund
285,564
TOTAL FUNDS
285,564		 31.03.23
£
-
36,887
36,887
31.03.23
£
-
2,500
2,500
Net
movement
in funds
£
13,451
13,451		 31.03.22
£
-
31,379
31,379
31.03.22
£
2,408
2,500
4,908
At 31.12.23
£
299,015
299,015

Continued…

Page 14

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
230,923
230,923		 Resources
expended
£
(217,472)
(217,472)		 Movement
in fund
£
13,451
**13,451 **

12. CONTROLLING ENTITY

There is no overall controlling entity.

13. RELATED PARTIES DISCLOSURE

There was no transaction with the trustees during the period ended.

Page 15

THE REALITY OF GRACE MINISTRIES INTERNATIONAL LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

INCOME AND ENDOWMENTS
Building Funds
Donations
Offerings
Tithes
Gift Aid
Job Retention Scheme
Other Income
Investment income
Bank interest receivable
Total incoming resources
EXPENDITURE
Charitable Expenditure
Counselling
TV & Radio
Evangelism & Conferences
Building Maintenance and Establishment Expenses
Foodbank and Community Project
Services and Meetings
Rent
Management & Administration expenses
Staff Salaries
NICs and Employer NI
Pensions
Insurances
Printing, Postage and Stationery
Data Protection Fees
Miscellaneous Expenses
Penalties
Professional Fees
Rent
Software Subscriptions
Subscriptions
Disclosure & Barring Service(DBS)
Bad Debts
Depreciation
Finance
Bank charges
Governance
Independent Examiner's remuneration
Total resources expended
Net income/expenditure		 31.03.23
£
15,430
55,995
36,190
84,128
36,887
-
1,804
230,433
491
230,923
2,181
2,143
10,844
10,789
23,874
13,273
18,493
81,595
106,694
9,557
3,519
2,288
584
35
2,777
240
1,222
4,680
738
542
-
-
284
133,159
218
2,500
2,718
217,472
13,451		 31.03.22
£
5,790
16,278
49,275
84,647
31,379
27,539
8,373
223,280
12
223,292
1,243
-
16,910
9,637
13,196
17,590
-
58,576
106,694
7,007
3,438
-
605
35
286
65
3,050
4,620
40
536
48
3,130
1,277
130,831
52
2,500
2,552
191,959
31,333

Page 16