Riverside Church Annual Report & Financial Statements
For year ended December 2022
Registered charity no. 1131872 Company no. 6983393
This report covers the period 1 January 2022 to 31 December 2022
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Riverside Church, Thanet Way, Whitstable, Kent CT5 3JQ www.riversideuk.org
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Introduction
Riverside is a vibrant and growing church community of adults, children and young people meeting in Whitstable, Kent.
The church was established in 1925 and has been faithfully worshipping God and serving the local community for nearly a hundred years.
Our aim is to be a blessing to our community through sharing the love and compassion of God to those we meet.
Having our own building allows us to hire rooms to commercial and public-sector organisations during the week. This conference activity generates an income stream that supports our charitable activities.
We also have an on-site café which forms a community space right at the heart of the building. It provides a relaxed, friendly environment where everyone is welcome - old friends can come together, and new friendships can be made.
Our goal is to see the transformation of our communities through the goodness of Jesus.
We believe the goodness of Jesus is for everyone and we are passionate about helping people encounter his lifechanging power.
Our broad aims continue to be the following:
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Creating spaces and opportunities for people to encounter the good news of Jesus and His transforming presence.
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Equipping and supporting people to do life well.
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Bringing practical and spiritual relief to the vulnerable and those in need.
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Doing things well.
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Review
2022 was a big year for Riverside as we took the congregation on a journey to become a fully affirming church. We began a Sunday series called ‘All One’ in January looking at what it would mean for us to be a church which fully celebrates and affirms every person.
The series ran for seven Sundays coupled with evening sessions. These facilitated discussion and reflection and gave the opportunity to hear testimonies from people who had already journeyed this road.
In the All One series we looked back at the history of the church, referring to words that used to be over the pulpit in our original building in 1953. These were the words, ‘All One in Christ Jesus’ and were taken from the letter the apostle Paul wrote to the church in Galatia:
There is neither Jew nor Gentile, neither slave nor free, nor is there male and female, for you are all one in Christ Jesus. (Galatians 3:28)
We concluded our journey by arriving at a ‘yielded consensus’ as a church. This meant that even though people may hold differing views and biblical interpretations, the policy of Riverside would be one of full inclusion without any form of discrimination.
Becoming a fully affirming church meant Riverside needed to leave the Vineyard Churches movement and become an independent church. Both parties were honoured during this process and the Vineyard thanked us for all our ‘hard work and service’ and released us with ‘great affection.’
Even though Riverside is now an independent church, we do not feel isolated. We have excellent relationships with the other church leaders in our town, and beyond that, many gifted and supportive friends who are with us for the continuing journey.
At the end of 2022 we feel we have achieved a fresh foundation from which to minister God’s love and grace to our coastlands.
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Objective 1: Advance the Gospel
Creating spaces and opportunities for people to encounter the good news of Jesus and His transforming presence…
In January of 2022 we were able to move our Sunday services back into the auditorium after the flood restoration works had been completed. Overcoming this period of adversity really strengthened the relational links within the church and encouraged everyone in seeing God’s faithfulness.
Following our All One series, we became part of the Inclusive Church network in May. This year we have seen many new people connect with us to explore faith, and we have helped advise and encourage other church leaders on their own inclusion journeys.
We re-started our Worship Space service on a Sunday evening to create opportunity for unhurried worship, prayer, and reflection.
In June we held a baptism service with six people choosing to get baptised.
We made more space for our growing Kingfishers 5-11 children’s group by joining two of our existing rooms together to make a larger Sunday space. This allowed us to incorporate new quiet zones for children with special needs.
We also strengthened our children’s ministry by employing Lianne Midson, our Riverside Kids Team leader, for 1.5 days a week.
The plans for insulating and heating our large Youth space moved forward this year as we finalised the design specifications and secured a contractor to conduct the work in 2023.
We concluded a busy year with our All Wrapped Up project and our Christmas services. All these events provided wonderful opportunities to convey the good news of Jesus to our community as we continue in our vision to be ‘good for everyone.’
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Equipping and supporting people to do life well…
Objective 2: Improve Life
Riverside continues to be an invaluable resource for the community.
Our Sunday morning services provide a place of connection, support, and practical teaching to equip people to do life well.
During the week, our café space is often full of people using the space to meet, work or take part in local community groups in our newly refurbished lower lounge.
Our variety of different sized rooms provide flexible training spaces for many stakeholders, including local NHS trusts and councils. We also continue to host Mentalk – a safe drop-in space to promote men’s mental health.
We launched a Games Night in September, to provide a place of social connection for all ages within the church and this has been well attended.
In August we met Tyler & Kate, the founders of Herne Bay LGBTQ+ Society. Riverside was invited to support the first Herne Bay Pride which took place in December.
Also in December we launched the Herne Bay HUB in partnership with Briary Primary School. We helped families at this school through 2021 with our Pantry Project and by providing Christmas dinner hampers. The Herne Bay HUB will enable us to continue to support local children and families through a monthly Family Fun Morning with breakfast, games, activities and music. A team of Riverside staff and volunteers facilitate the event at the same time as our main Sunday service at Riverside.
We concluded the year with a large Cherish Christmas Crafts event held at Riverside with about a hundred ladies enjoying making a variety of Christmas decorations.
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Bringing practical and spiritual relief to the vulnerable and those in need…
Objective 3: Bring Relief
In March, Riverside held a large appeal for those affected by the conflict in Ukraine. We collected and sorted hundreds of items that were donated by the church and community. These items were then delivered to a partner church in Poland which was hosting Ukrainian refugees.
In September, we hosted an appreciation meal for the volunteers involved in the Haven Project. We also raised awareness and support for Christians Against Poverty on a CAP Sunday in October. In December, we undertook our biggest Christmas compassion project ever by turning our auditorium into a ‘winter wonderland’ . Through connections with local social workers and school family liaison officers, we invited families to come and choose presents for their children. 320 children received presents, stocking fillers and fleece blankets and 280 Christmas dinner hampers were distributed to families in need.
We continue to support several local projects with finances and volunteers:
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Street Pastors – a caring night-time presence on the streets of Whitstable and Herne Bay.
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Christians Against Poverty – a debt centre providing debt counselling service and advice free of charge.
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Haven – a project providing care and support for the homeless and vulnerable in the area.
We also support the work of several overseas ministries including Mission Aviation Fellowship (MAF) who fly charity relief organisations all over the world, Open Doors, supporting the persecuted church worldwide and the Grass Roots Trust who work with the impoverished in Romania.
We also continued to support a member of Riverside who is serving a custodial sentence. Riverside Café also operates a “Pay It Forward” scheme to provide a meal or drink for someone in need.
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Doing Things Well
This involves everything, from the way we relate to people, to the way we manage our facility & develop our organisation…
Staffing: During this period we welcomed Lianne Midson onto our staff team as Riverside Kids Team Leader.
We also welcomed Peter Cornwell onto the team as our new Site Caretaker.
Site: In July we sold a side warehouse on the to Oyster cars. This helped to apportion the Riverside site in a more practical way and the funds raised will assist in the continuing development of Phase 3 of the building.
The flood restoration works carried out by BW May, in conjunction with Martello, were signed off in February bringing the building back to full operation.
Events: Our conferencing and event hire continued to grow throughout 2022 with many organisations seeing Riverside as their venue of choice. We regularly see five star ratings for our venue and service.
On-Site Partners: CXK uses Riverside as a local hub for their staff as they provide career guidance and training programmes to help young people build the skills and confidence they need to find a job.
Volunteers: We actively encourage people to volunteer their time and get involved, serving in some capacity. The All Wrapped Up project and the Ukraine Appeal mobilised hundreds of volunteer hours to serve families in need. We also have a large volunteer Sunday team which facilitate our welcoming and serving culture.
The All Wrapped Up project and the Ukraine Appeal mobilised hundreds of volunteer hours to serve families in need.
Riverside could not operate at the level we do without the dedication of our volunteers in the church, and from the local community, and we are hugely appreciative of their ongoing generosity.
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Connected Charities & Partner Projects
Riverside continues to be an active supporter of Churches Together in Whitstable (CTiW).
CTiW provide Street Pastors who patrol every Friday night providing a caring and reassuring presence on the streets.
CTiW Haven Project is a joint church initiative to create a warm friendly place for the homeless in the area. Based at St John’s Methodist Hall it provides hot drinks, snacks, laundry, and shower facilities.
CTiW jointly support a local Christians Against Poverty (CAP) centre. CAP provides free debt counselling and additional life skills services.
Canterbury Christian Schools’ Work Trust works with primary and secondary schools with the SMSC framework.
Working in Romania to alleviate poverty, though partnership with churches.
Riverside provides a space for this charity to support carers across East Kent.
CXK is a charity which supports children, young people, adults, and families and is one of our rental partners at Riverside.
Riverside supports the work of Mission Aviation Fellowship which enables over 2,000 aid, development, and mission organisations to bring medical care, emergency relief, long-term development, and Christian hope to thousands of communities.
Riverside supports the work of Open Doors which is an international ministry serving persecuted Christians and churches worldwide.
We work conjunction with MIND to host groups at Riverside promoting better mental health.
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Strategic Report Business Review
Riverside Church is in a stable position both financially and in terms of attendance.
Our total source of income from all sources was £654,768.
Our expenditure totalled £627,481.
Our room hiring and cafe income generated income of £147,259.
Our financial statements at the rear of this report provide more information.
Risk Management
We have systems of internal control which are designed to provide reasonable, but not absolute assurance against material misstatement or loss. They include: -
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an annual budget approved by the Trustees.
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regular consideration by the Trustees of financial reports.
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delegation of authority and segregation of duties.
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identification and management of risks.
We aim to review the main risks the church faces on a regular basis. The Trustees consider the key risks to a church like ours to be finances, safeguarding, health and safety and human resources. We employ staff with key skills in these areas. We also engage third party experts for advice when needed.
We believe that our internal financial controls conform to the guidelines issued by the Charity Commission.
Investment Powers and Policy
Our Articles authorise us to invest our funds. Cash balances are currently held with HSBC Bank and Charity Bank. We operate a policy of keeping available funds within interest-bearing deposit accounts. We maintain a level of free reserves to mitigate against the risk that the charity experiences an unexpected event which would put us in financial difficulty.
This might include an event which would bring Riverside Church into disrepute; the premises being forced to close for an extended period of time; or a serious decline in the economic environment we operate in.
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Plans for the future
We believe the appropriate level of unrestricted reserves should be based upon a proportion of our regular costs as follows:
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Four months of our long-term commitments, such as mortgage and utilities payments and the cost of running our Sunday services which would be a vital activity to maintain.
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Three months of medium-term commitments such as permanent staff costs and the monthly financial support we provide to partner charities.
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One month of short-term costs, including the day to day ministry activity of the church.
Our review has estimated this target level is £100,000. The reserves held as of 31 December 2022 are at this level. We review, on a 6-monthly basis, the level of reserves held. During the year, the Trustees conducted a full review of the reserves policy to ensure it remained up to date and relevant.
2022 was a year of transition for Riverside as we journeyed to become a fully affirming church. This change was handled with maturity and sensitivity by the church family and we are now proud to be a place where anyone can be welcomed and fully affirmed, without any form of discrimination.
The aim is to now build on this foundation to be even more of a blessing to our coastlands. Our reputation for generous care and compassion continues to grow after delivering largescale projects like All Wrapped Up, and in the next season we will be looking for more ways to serve the needs of our community.
We will continue to pursue our overall vision of being Good for Everyone through every aspect of our organisation. We want everyone who encounters Riverside to have a positive and encouraging experience, and we will continue to use all our resources to ensure this is the case.
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Information about Riverside Church
We believe that we comply with the Charity Commission guidance on public benefit and specifically the advancement of religion.
Charity Number: 1131872
Company Number: 6983393
Associated Professionals
Principal Bankers:
HSBC Bank 9 Rose Lane Canterbury Kent CT1 2JP
Registered Office:
Riverside Church Thanet Way Whitstable CT5 3JQ
Website: www.riversideuk.org
Accountants:
Kreston Reeves LLP Chartered Accountants 37 St. Margaret’s Street Canterbury Kent CT1 2TU
Governing Document & Organisational Structure:
We are a registered charity, constituted by means of our Memorandum and Articles of Association and operating as a church. We are also a company limited by guarantee, in which the company directors form the board of Trustees. The liability of each trustee in the event of winding up is limited to £10. The spiritual vision and direction of the church is set by the Senior Leadership Team who along with the Trustees form the membership of the company. The pay of the Senior Leadership Team staff is reviewed annually and benchmarked against pay levels in other churches of similar size and operation.
Solicitors:
Parry Law Sols 12-14 Oxford Street Whitstable CT5 1DE
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Information (continued)
Trustees and Senior Staff
Trust Board (TB)
The Trustees who have served during the year are as follows: -
Kirsteen Magee Chair Simon Bateson Lead Pastor Matt Haines Facilities Darlene Bushell Finance Paul Newman VCUKI liaison (Stepped down 10.05.22) Sean Carter Health & Safety
The company secretary is Kim Wood.
Appointment of Trustees & SLT
New Trustees and SLT members are appointed when appropriate. Suitable candidates are generally selected from within the church and are considered based on their skills, experience, and sympathy with the aims of the church. Trustees and SLT members are appointed by the combined Trustees and Senior Leadership Team. These two teams constitute the membership of the charitable company. New Trustees have the opportunity of reviewing appropriate documents, including the management accounts, as part of their induction process.
Senior Leadership Team (SLT)
The day to day running of the church is delegated to the employed pastoral staff and operational staff. The staff are led by Simon & Keely Bateson (Lead Pastors) and their Senior Leadership Team which is as follows: -
Simon Bateson Lead Pastor Keely Bateson Lead Pastor Martin Franks Assistant Pastor Jacob Perrins Assistant Pastor Debbie Franks SLT Emma Perrins SLT Alan Chalkley SLT Alison Chalkley SLT Christine Gibson SLT Jackie Carter SLT Sean Carter SLT & TB
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Information (continued)
Responsibilities Statement
The Trustees (who are also directors of Riverside Church 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they 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 these financial statements, the Trustees are required to:
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Select suitable accounting policies and then apply them consistently;
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Observe the methods and principles in the Charities SORP;
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Make judgments and accounting estimates that are reasonable and prudent;
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State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and 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 preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the Trustees on …………………………. and signed on their behalf by
Simon Bateson Trustee / Director
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Riverside Church
(A company limited by guarantee)
Independent examiner's report
For the year ended 31 December 2022
Independent examiner's report to the Trustees of Riverside Church ('the Charitable company')
I report to the charity Trustees on my examination of the accounts of the Charitable company for the year ended 31 December 2022.
Responsibilities and basis of report
As the Trustees of the Charitable company (and its directors 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 Charitable company 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 Charitable company's accounts 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
Since the Charitable company'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 Institute of Chartered Accountants in England and 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:
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accounting records were not kept in respect of the Charitable company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts 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
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the accounts 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 accounts to be reached.
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Riverside Church
(A company limited by guarantee)
Independent examiner's report (continued) For the year ended 31 December 2022
This report is made solely to the Charitable company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charitable company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charitable company and the Charitable company's Trustees as a body, for my work or for this report.
Signed: Dated:
Samantha Rouse FCCA DChA
Kreston Reeves LLP
Chartered Accountants 37 St Margaret's Street Canterbury Kent CT1 2TU
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Riverside Church
(A company limited by guarantee)
Statement of financial activities (incorporating income and expenditure account) For the year ended 31 December 2022
| Note Income from: Donations and legacies: 3 Weekly offering Donations eligible for Gift Aid Gift Aid Gifts & miscellaneous income Deemed notional interest on loans . Other donations and legacies Profit on disposal of fixed assets Other trading activities 4 Investments 5 Other income 6 Total income Expenditure on: Raising funds 7 Charitable activities: . Other charitable activities Total expenditure Net income/(expenditure) Transfers between funds 16 Total transfers Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 33,196 145,204 36,010 8,046 933 14,108 146,382 99,346 49,981 94,705 627,911 32,289 554,567 586,856 41,055 (7,491) (7,491) 33,564 1,294,845 33,564 1,328,409 |
Restricted funds 2022 £ 5,623 6,000 - 4,340 - 10,894 - - - - 26,857 - 40,625 40,625 (13,768) 7,491 7,491 (6,277) 10,078 (6,277) 3,801 |
Total funds 2022 £ 38,819 151,204 36,010 12,386 933 25,002 146,382 99,346 49,981 94,705 654,768 32,289 595,192 627,481 27,287 - - 27,287 1,304,923 27,287 1,332,210 |
Total funds 2021 £ 47,208 143,414 35,875 7,105 1,750 146,979 - 43,204 16,758 95,000 |
|---|---|---|---|---|
| 537,293 | ||||
| 15,334 469,794 |
||||
| 485,128 | ||||
| 52,165 - |
||||
| - | ||||
| 52,165 | ||||
| 1,252,758 52,165 |
||||
| 1,304,923 |
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 20 to 38 form part of these financial statements.
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Riverside Church
(A company limited by guarantee) Registered number: 06983393
Balance sheet As at 31 December 2022
| Note Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 15 Total net assets Charity funds Restricted funds 16 Unrestricted funds 16 Total funds |
9,319 606,503 615,822 (41,755) |
2022 £ 1,296,273 574,067 1,870,340 (538,130) 1,332,210 3,801 1,328,409 1,332,210 |
107,380 398,491 505,871 (33,489) |
2021 £ 1,423,034 472,382 1,895,416 (590,493) 1,304,923 10,078 1,294,845 1,304,923 |
|---|---|---|---|---|
The Charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Simon Bateson
Trustee Date:
The notes on pages 20 to 38 form part of these financial statements.
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Riverside Church
(A company limited by guarantee)
| Statement of cash flows For the year ended 31 December 2022 Cash flows from operating activities Net cash used in operating activities Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Proceeds from sale of fixed assets Net cash provided by/(used in) investing activities Repayments of borrowing Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year The notes on pages 20 to 38 form part of these financial statements |
2022 £ 80,727 2,068 (16,008) 197,865 183,925 (56,640) 208,012 398,491 606,503 |
2021 £ 40,115 880 (1,374) - (494) (15,947) 23,674 374,817 398,491 |
|---|---|---|
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Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
1. General information
Riverside Church is a charitable company limited by guarantee, incorporated in England and Wales with the company number 6983393 and the charity number 1131872.
The Charitable company's registered office is Riverside Church, Thanet Way, Whitstable, CT5 3JQ.
The financial statements have been prepared for the year ended 31 December 2022.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Riverside Church meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Charitable company's financial statements are presented in Sterling and are rounded to the nearest Pound.
2.2 Company status
The charitable company is a company limited by guarantee. The members of the company are the Trustees and senior leadership team named in the Charity's information page. In event of the charitable company being wound up, the liability in respect of the guarantee is limited to £10 per member of the charitable company.
2.3 Going concern
The Trustees have considered the Charitable Company's level of reserves and future incoming resources and concluded that these are sufficient to enable the charity to continue its operations for the foreseeable future. Therefore the accounts have been prepared on a going concern basis.
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Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
2. Accounting policies (continued)
2.4 Income
All income is recognised once the Charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charitable company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charitable company, can be reliably measured.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
2.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Expenditure on raising funds includes all expenditure incurred by the Charitable company to raise funds for its charitable purposes and includes costs of all fundraising activities events and noncharitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charitable company's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
2.6 Government grants
Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Statement of financial activities as the related expenditure is incurred.
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Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
2. Accounting policies (continued)
2.7 Tangible fixed assets and depreciation
A review of impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of any fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities incorporating the income and expenditure account.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is not charged on freehold land.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following bases:
| Freehold property | - Land - not depreciated, Buildings - over 20 |
|---|---|
| years | |
| Fixtures and fittings | - 5 years straight line |
| Computer equipment | - 3 years straight line |
| Other fixed assets | - Not depreciated |
2.8 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.9 Cash at bank and in hand
Cash at bank and 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.
2.10 Financial instruments
The Charitable company 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.
2.11 Finance costs
Borrowing costs associated with direct expenditure on properties undergoing major refurbishment are capitalised.
Interest is capitalised as from the commencement of the development work until the practical date of completion.
2.12 Pensions
The Charitable company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charitable company to the fund in respect of the year.
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Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
2. Accounting policies (continued)
2.13 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charitable company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.14 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charitable company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
2.15 Taxation
The Charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charitable company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
2.16 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charitable company and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 23
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
2. Accounting policies (continued)
2.17 Critical accounting estimates and areas of judgement
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Tangible fixed assets
The charity has recognised tangible fixed assets with a carrying value of £1,296,273 at the reporting date (see note 12). The assets are stated at their cost less provision for depreciation and impairment. The charity's accounting policy sets out the approach to calculating depreciation for immaterial assets acquired. For material assets such as land and buildings, the company determines at acquisition reliable estimates for the useful life of the asset, its residual value and decommissioning costs. These estimates are based upon such factors as the expected use of the acquired asset and market conditions. At subsequent reporting date the Trustees consider whether there are any factors such as technological advancements or changes in market conditions that indicate a need to reconsider the estimates used.
Where there are indicators that the carrying value of tangible assets may be impaired the charity undertakes tests to determine the recoverable amount of assets. These tests require estimates of the fair value of assets less cost to sell and of their value in use. Wherever possible, the estimate of the fair value of assets is based upon observable market prices less incremental cost for disposing of the asset. The value in use calculation is based upon a discounted cash flow model, based upon the charity's forecasts for the foreseeable future which do not include any restructuring activities that the charity is not yet committed to or significant future investments that will enhance the asset's performance. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as expected future cash flows and the growth rate used for extrapolation purposes.
Page 24
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
3. Income from donations and legacies
| Unrestricted funds 2022 £ Donations Weekly Offering 33,196 Donations eligible for Gift Aid 145,204 Gift Aid 36,010 Gifts & miscellaneous income 8,046 Deemed notional interest on loans 933 Subtotal detailed disclosure 223,389 Donations (4,194) Legacies 14,685 Grants 3,617 Government grants - Subtotal 14,108 Total 2022 237,497 Total 2021 359,394 |
Restricted funds 2022 £ 5,623 6,000 - 4,340 - 15,963 5,717 - 5,177 - 10,894 26,857 22,937 |
Total funds 2022 £ 38,819 151,204 36,010 12,386 933 239,352 1,523 14,685 8,794 - 25,002 264,354 382,331 |
Total funds 2021 £ 47,208 143,414 35,875 7,105 1,750 |
|---|---|---|---|
| 235,352 | |||
| - 100,000 23,396 23,583 |
|||
| 146,979 | |||
| 382,331 | |||
Government grants are income received from the Coronavirus Job Retention Scheme during the prior period.
4. Income from other trading activities
Income from non charitable trading activities
| Unrestricted funds 2022 £ Cafe income and other trading income 99,346 Total 2021 43,204 |
Total funds 2022 £ 99,346 43,204 |
Total funds 2021 £ 43,204 |
|---|---|---|
Page 25
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
5. Investment income
| Unrestricted funds 2022 £ Use of building 47,913 Investment income 2,068 Total 2022 49,981 Total 2021 16,758 |
Total funds 2022 £ 47,913 2,068 49,981 16,758 |
Total funds 2021 £ 15,878 880 |
|---|---|---|
| 16,758 | ||
6. Other incoming resources
| Insurance income Total 2021 |
Unrestricted funds 2022 £ 94,705 95,000 |
Total funds 2022 £ 94,705 95,000 |
Total funds 2021 £ 95,000 |
|---|---|---|---|
Insurance income relates to the proceeds received from the insurance claim, following the flooding of the premises in August 2021.
Page 26
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
7. Expenditure on raising funds
Fundraising trading expenses
| Unrestricted funds 2022 £ Cafe expenses 32,289 Total 2021 15,334 |
Total funds 2022 £ 32,289 15,334 |
Total funds 2021 £ 15,334 |
|---|---|---|
8. Analysis of grants
| Mission support Total 2021 |
Grants to Institutions 2022 £ 17,150 21,785 |
Grants to Individuals 2022 £ 4,107 2,224 |
Total funds 2022 £ 21,257 24,009 |
Total funds 2021 £ 24,009 |
|---|---|---|---|---|
Page 27
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
9. Analysis of expenditure by activities
| Charitable activities Total 2021 Analysis of direct costs |
Activities undertaken directly 2022 £ 425,983 305,388 |
Grant funding of activities 2022 £ 21,257 24,009 |
Support costs 2022 £ 147,952 140,397 |
Total funds 2022 £ 595,192 469,794 |
Total funds 2021 £ 469,794 |
|---|---|---|---|---|---|
| Staff costs Church Ministries Equipment & maintenance Insurance (church) Utilities (church) Other staff costs Total 2022 |
Total funds 2022 £ 247,753 126,465 19,243 4,022 22,870 5,630 425,983 |
Total funds 2021 £ 218,146 49,817 11,270 3,853 21,571 731 |
|---|---|---|
| 305,388 |
For comparative purposes Church Ministries costs are made up of costs previously classed as Creative Ministries, Youth Activities, Outreach activities and Care costs.
Page 28
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
9. Analysis of expenditure by activities (continued)
Analysis of support costs
| Depreciation Photocopying/Storage/Postage Professional fees Catering Music/Copyright fees/Equipment Miscellaneous costs Independent examiner's fee Interest Total 2022 |
Total funds 2022 £ 91,286 961 8,954 591 1,490 17,736 1,950 24,984 147,952 |
Total funds 2021 £ 93,335 942 6,595 447 2,701 8,458 1,425 26,494 |
|---|---|---|
| 140,397 |
10. Staff costs
| Wages and salaries Social security costs Contribution to defined contribution pension schemes |
2022 £ 229,123 10,444 8,186 247,753 |
2021 £ 202,160 8,864 7,122 |
|---|---|---|
| 218,146 |
The average number of persons employed by the Charitable company during the year was as follows:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| Employees | 13 | 11 |
No employee received remuneration amounting to more than £60,000 in either year.
The church leadership team are considered to be key management personnel. The total compensation paid in respect of the key management personnel amounts to £107,288 (2021: £100,844).
Page 29
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
11. Trustees' remuneration and expenses
Simon Bateson received remuneration in his capacity of Lead Pastor and not as a Trustee. This remuneration amounted to £53,245 (2021: £50,053).
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 December 2022, no Trustee expenses have been incurred (2021 - £NIL).
12. Tangible fixed assets
| Cost or valuation At 1 January 2022 Additions Disposals At 31 December 2022 Depreciation At 1 January 2022 Charge for the year On disposals At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 |
Freehold property £ 1,705,002 - (73,547) 1,631,455 335,018 64,073 (22,064) 377,027 1,254,428 1,369,984 |
Fixtures and fittings £ 92,885 8,172 (5,074) 95,983 74,257 19,197 (5,074) 88,380 7,603 18,628 |
Computer equipment £ 143,315 4,137 - 147,452 133,148 8,016 - 141,164 6,288 10,167 |
Other fixed assets £ 24,255 3,699 - 27,954 - - - - 27,954 24,255 |
Total £ 1,965,457 16,008 (78,621) 1,902,844 542,423 91,286 (27,138) 606,571 1,296,273 1,423,034 |
|---|---|---|---|---|---|
Freehold land of £350,000 in relation to the Riverside Campus has not been depreciated as its residual value is likely to exceed its valuation and therefore its economic useful life is likely to be infinite.
Page 30
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
13. Debtors
| Due within one year Trade debtors Other debtors Prepayments and accrued income Tax recoverable |
2022 £ 5,795 - - 3,524 9,319 |
2021 £ 3,696 864 100,000 2,820 |
|---|---|---|
| 107,380 |
14. Creditors: Amounts falling due within one year
| Bank loans Other loans Trade creditors Other taxation and social security Accruals and deferred income |
2022 £ 17,364 - 5,182 16,104 3,105 41,755 |
2021 £ 16,641 5,000 4,131 5,157 2,560 |
|---|---|---|
| 33,489 |
15. Creditors: Amounts falling due after more than one year
| Bank loans Other loans |
2022 £ 538,130 - 538,130 |
2021 £ 555,493 35,000 |
|---|---|---|
| 590,493 |
Page 31
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
Included within the above are amounts falling due as follows:
| Between one and two years Bank loans Between two and five years Bank loans Other loans Over five years Bank loans |
2022 £ 18,122 59,226 - 460,782 |
2021 £ 17,367 |
|---|---|---|
| 56,761 35,000 |
||
| 481,365 |
The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:
| Payable or repayable by instalments | 2022 £ 460,782 460,782 |
2021 £ 481,365 |
|---|---|---|
| 481,365 |
The amounts in other loans relate to loans given to the charity by members of the church. These loans are unsecured and interest free.
The amounts in bank loans relate to a re-mortgage from HSBC UK Bank PLC, and were previously used to purchase the site for the new church building. There is a guarantee in favour of HSBC UK Bank PLC over the property at Riverside Works in relation to this loan.
Page 32
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
16. Statement of funds
Statement of funds - current year
| Unrestricted funds Designated funds General fixed reserve Designated fixed asset fund General funds General funds Total Unrestricted funds Restricted funds Building Development Fund Pantry Project Herne Bay Hub Project Defibrillator grant Youth Fund Christmas project Hearing Fund Total of funds |
Balance at 1 January 2022 £ 80,000 810,901 890,901 403,944 1,294,845 - 6,229 2,305 31 1,513 - - 10,078 1,304,923 |
Income £ - - - 627,911 627,911 10,340 - 1,902 - - 13,665 950 26,857 654,768 |
Expenditure £ - - - (586,856) (586,856) (24,051) - (3,436) - (1,522) (10,666) (950) (40,625) (627,481) |
Transfers in/out £ 20,000 (220,935) (200,935) 193,444 (7,491) 13,711 (6,229) - - 9 - - 7,491 - |
Balance at 31 December 2022 £ 100,000 589,966 |
|---|---|---|---|---|---|
| 689,966 | |||||
| 638,443 | |||||
| 1,328,409 | |||||
| - - 771 31 - 2,999 - |
|||||
| 3,801 | |||||
| 1,332,210 |
Page 33
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
16. Statement of funds (continued)
Transfers between funds
Designated fixed asset fund - the transfer of £220,935 to unrestricted funds represents the decision by the Trustees to show separate the funds allocated to fixed assets less any associated liabilities.
Pantry Project- the transfer of £6,229 to unrestricted funds represents a transfer to reflect that there is no remaining balance of restricted funds attributable to this fund, and therefore the restricted fund has ceased.
Purposes of designated funds
General Fixed Reserve - this represents funds set aside in accordance with the Charity's reserves policy.
Designated fixed asset fund - this represents the book value of the fixed assets less any associated liabilities and are deemed by the Trustees not to be freely available funds.
Purposes of restricted funds
Building Development fund (previously Phase 3 fund) - this represents amounts donated to the church in relation to the development of the Riverside Church site including the area known as Phase 3.
Pantry Project - this represents amounts donated to the church in relation to the Pantry Project.
Herne Bay Hub Project - this represents amounts donated to the church in relation to the Herne Bay Hub Project.
Defibrillator grant - this represents amounts donated to the church in relation to the purchase of a defibrillator.
Youth fund - this represents amounts donated to the church in relation to the Youth activities.
Growbaby fund - this represents amounts donated to the church in relation to the Growbaby project.
Christmas project fund- this represents amounts donated to the church in relation to the Christmas projects.
Hearing fund- this represents grants received in relation to helping fund hearing packs.
Page 34
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
16. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Designated funds General fixed reserve Designated fixed asset fund General funds General funds Total Unrestricted funds Restricted funds Building Development Fund Pantry Project Herne Bay Hub Project Defibrillator grant Youth Fund Growbaby Total of funds |
Balance at 1 January 2021 £ 80,000 884,665 964,665 276,489 1,241,154 - 9,268 2,305 31 - - 11,604 1,252,758 |
Income £ - - - 514,356 514,356 11,880 5,978 - - 4,079 1,000 22,937 537,293 |
Expenditure £ - - - (446,338) (446,338) (24,744) (9,017) - - (2,566) (2,463) (38,790) (485,128) |
Transfers in/out £ - (73,764) (73,764) 59,437 (14,327) 12,864 - - - - 1,463 14,327 - |
Balance at 31 December 2021 £ 80,000 810,901 |
|---|---|---|---|---|---|
| 890,901 | |||||
| 403,944 | |||||
| 1,294,845 | |||||
| - 6,229 2,305 31 1,513 - |
|||||
| 10,078 | |||||
| 1,304,923 |
Page 35
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
16. Statement of funds (continued)
Transfers between funds (prior year)
Designated fixed asset fund - the transfer of £73,764 from unrestricted funds represents the decision by the Trustees to show separate the funds allocated to fixed assets less any associated liabilities.
17. Summary of funds
Summary of funds - current year
| Designated funds General funds Restricted funds |
Balance at 1 January 2022 £ 890,901 403,944 10,078 1,304,923 Balance at 1 January 2021 £ 964,665 276,489 11,604 1,252,758 |
Income £ - 627,911 26,857 654,768 Income £ - 514,356 22,937 537,293 |
Expenditure £ - (586,856) (40,625) (627,481) Expenditure £ - (446,338) (38,790) (485,128) |
Transfers in/out £ (200,935) 193,444 7,491 - Transfers in/out £ (73,764) 59,437 14,327 - |
Balance at 31 December 2022 £ 689,966 638,443 3,801 |
|---|---|---|---|---|---|
| 1,332,210 | |||||
| Balance at 31 December 2021 £ 890,901 403,944 10,078 |
|||||
| Summary of funds - prior year | |||||
| Designated funds General funds Restricted funds |
|||||
| 1,304,923 |
Page 36
Riverside Church
(A company limited by guarantee)
Notes to the financial statements
For the year ended 31 December 2022
18. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Unrestricted funds 2022 Restricted funds 2022 £ £ Tangible fixed assets 1,296,273 - Current assets 612,021 3,801 Creditors due within one year (41,755) - Creditors due in more than one year (538,130) - Total 1,328,409 3,801 Analysis of net assets between funds - prior year Unrestricted funds 2021 Restricted funds 2021 £ £ Tangible fixed assets 1,423,034 - Current assets 495,793 10,078 Creditors due within one year (33,489) - Creditors due in more than one year (590,493) - Total 1,294,845 10,078 19. Reconciliation of net movement in funds to net cash flow from operating activities 2022 £ Net income for the year (as per Statement of Financial Activities) 27,287 Adjustments for: Depreciation charges 91,286 Dividends, interests and rents from investments (2,068) Gain on sale of fixed assets (146,382) Decrease/(increase) in debtors 98,061 Increase/(decrease) in creditors 12,543 Net cash provided by operating activities 80,727 |
Total funds 2022 £ 1,296,273 615,822 (41,755) (538,130) 1,332,210 Total funds 2021 £ 1,423,034 505,871 (33,489) (590,493) 1,304,923 2021 £ 52,165 93,335 (880) - (102,666) (1,839) 40,115 |
|---|---|
Page 37
Riverside Church
(A company limited by guarantee)
Notes to the financial statements For the year ended 31 December 2022
20. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
2022 £ 606,503 606,503 |
2021 £ 398,491 |
|---|---|---|
| 398,491 |
21. Analysis of changes in net debt
| Cash at bank and in hand Debt due within 1 year Debt due after 1 year |
At 1 January 2022 £ 398,491 (21,641) (590,493) (213,643) |
Cash flows £ 208,012 4,277 52,363 264,652 |
At 31 December 2022 £ 606,503 (17,364) (538,130) |
|---|---|---|---|
| 51,009 |
22. Pension commitments
The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £8,186 (2021 - £7,122). At the balance sheet date, contributions were due amounting to £1,300 (2021: £635) and are included in creditors.
23. Related party transactions
On 1 March 2016, G Magee, the husband of K Magee, a Trustee of the Charity, gave the Charity an interest free loan amounting to £50,000, of which is fully paid as at 31 December 2022.
During the year, 6 (2021: 6) Charity Trustees have donations to the Charity totalling £33,483 (2021: £38,363).
L Bushell, the daughter of D Bushell, a Trustee of the Charity was employed during the year. The total compensation she received was £19,822 (2021: £17,819) commensurate to this role.
Page 38