Charity reglstratlon number 1134492 Company règl$tratlon numbèr 07118491 (England and Wales) DUKE STREET CHURCH {RICHMOND-UPON-THAMES) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 DUKE STREET CHURCH (RICHMOND-UPON-THAMES) LEGAL AND ADMINISTRATIVE INFORMATION Trustses Ivan Balrd Chuck Baternan Jonathan BOr$￿Y Paul Chambgrs IAGtiry Chalr from July 20231 Laurfe Hunter PhSllp Long James Muldoon Stephen Pryor John Taylor Ang8la Vincent (Apprynled 29 June 2023) (Appointed 21 March 2024) (Appointed 15 April 20241 Charlty number 1134492 Company numbof 07116491 Registered office Duke Street Richmond Surrey TW9 1DH Auditor Jacob Cavenagh & Skeet 5 Robin Hwd Lane Sutton Surrey SM12SW Bankers Bar¢kys Bank plc DUKE STREET CHURCH (RICHMOND-UPON-THAMES) CONTENTS Page Truslee$' report Indyndont au¢Jitorfs report Statement of financial activibes Balance sheet 1D Statement of cash flows 11 Notes lo the financial slalements 12-24 DUKE STREET CHURCH (RICHMOND-UPON-THAMES) TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees p￿sent their report and finanaal stslements for the year ended 31 De¢¢mbor 2023. The financlal statements have been prepared in accordance wrth the accounting policies sel out in noto 2 to th8 financial statsmenls and comply with the Church's Memorandum & Articles ofAssociation, the Companies Act 2006 and 'Accounling and Reporting by Charities-. Statement of Recommended Practice appli¢abl¢ to charilios pr¢paring their accounts in accordance wth the Financial Reporting Standard applicabk in the UK and Reputlic of IToland IFRS 1021 (effective 1 January 20191" Obj•¢tiVos and activitie5 The Church's mission is lo glorify by making dlsciples from all nations. To achieve this. our strategy Is to 'Reach-Build-Send" This m8an8 that we reach out with the message to those who have not yet heard or understood the great news of rescue through the Lord Jesus Chrt5t.' build up b8lievers in their lrfe of tnJsting and obeying Ihe Lord Jesus Christ,. and send out people who will tske the message of this great news to LoThJon and to the 'ends of the earth.. Our values reflect the kind of Church we want to be. To pursue our strategy and a¢hifj￿ our vlsion.. we seek God's help lo be prayerful. Bible4riven. 'growng more like Jesus,. 'loving and generous., 'passionate to share the good news,. and 'looking to the luture,. The Iruslees have paid due regard to publK banefit guidanc8 issued by Ihe Charity Commi$sion in deciding wh8t activities the church should undertake. It 1$ part of the responslbllity of the Church CourKil lo make donations to individuals or charitable oTganisalions wlth activities which are sympalhelic lo those of the Church or are for w8lfare purposes. During the period grants tolalling £73,63712022- £76,S711 were made and detail$ are shown in note 7 to the accounts. Athlevements and perfannanee As a church wo are constantly dependent on God for evgrything and lake conf￿enee in knowing that all that hapwns is within his providential care. We are Committed to delivering w$ek-by-w$gk pr$aching of thg bib￿, whether through on-line ministry. or in person. In July 2023. John Samu81. who had bgon S8nior Minisl8r sinco 2012, r8lir8d and left th8 staff team. Simon P8thicK our Associate Minister. assurned the role of Acting Senior Minister for the remainder of the period. We are enomiously grateful lo John for his dedicated Service lo the church during his lime us. and for SirrK)n in providin9 us with Godly leadership in the transition. In October 2023 the Church agreed to appoint James MuldoL as John's permanent successor and he is due to formally stsrt wilh us in April 2024. Wè remain fully committed to outreach in the local area and further afield and many of the activities of the church contain strong 'feach our elemgnts. W8 hav& met IhroLJghoul thè y8ar each weak for our Iwo Sunday services. whiGh we have also conUnLted online streaming to enable memtsrs and guests to join remotely. We hosted a S8ri8s of 8vents during the year designed to introduce people lo the Christian failh, which included Dur annual carol Se￿ices, the Mark Drama, a music event with Michael Tinker, Tnonthly lunch and talk designed for Seniors and evening meal for those living on the margins of SOGiety. We continued our weekly ministries for a number of mother and child groups, various bible study group5 and fellowship group meetings. During the year we have also started a new ministry called "Connect", whl¢h fo¢uses ￿ wel¢oming intemationals into the church and providing a plac8 to foster new lriendships. We continue to make our building available to 10¢81 businesses and societies and we regulady host groups from the ¢ommunily. Duke Stro01 Church has a long history ol supporting mission work and this continued unaffecled through 2023. We remain committed to our vision lo be a sendiro church and are involvod in cross-cultural mission in the UK and around the worfd. During the period. we continued lo support the work of Mission Partners serving in different countries through various sgnding agenoes. In addition, we have also supported projeds in Cuba, Zambia and Slovakia as well as a lo¢al %hool's outreach project in Richmond. We are reglstered as Duke Street Church. a charitable company and an Indèpendènt charity. This provides full mpliance with the regulations from the Charity Commission and retains the church's charitable slatus for Gift Aid and tax purposes. The transfer of assets to the new company wa8 substantially ¢ompletod in 2012. DUKE STREET CHURCH (RICHMOND-UPON-THAMES) TRUSTEES, REPORT ICONTINUED}(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 Finan¢lal r•vi•w As at 31 D8C8mb8r 2023 the Church rèported net as88ts of £6.3m (2022: £6.6ml. primarily comprising fixed assets of £7.3m12022.' £7.6ml which ¢ompTIsg the 8u¢Jitorium and associated property on Duke Street, Richmond and the Church Manse. The church also has cash balances of £0.41 m 12022.. £0.14ml and borrowings of £1.3m 12022.. £0.9ml. £0.6m of thts relatès to a mortgage taken out in 2008 to partly finance a redevelopment of the ¢hur¢h buildings and £0.7m relates to new drawings during the year whlch partly flnanced the audltorlum renovation. In April 2024 these loans were consolidaled into on8 singl8 loan of £1.2m for a Contractual period of fiv8 years. Duk8 Streel is financialy dependent on wnembers and friends of the church and is grateful lo God for their SaCr￿claI giving. Income from donations In 2023 was £0.57m12022: £0.65m>, and total income w8s £0.67m12022'. £0.75ml. £0.64m of this was unrestricted (2022.. £0.58ml. The Church Seeks to manage its costs carefijlly and is particularfy aware of the difficult ecoTh)mi¢ circumstances faced by many people and the increased ¢¢$t of Servicing the debt due lo increases to the Bank of England base rale ovèr the last 3 years. Costs In 2023 wer8 £0.78m12022.. £0.65ml. The Church spends much of ils income on the slaff il employs, both ministerial and adminislralive.. the cost of maintaining its premises. including interest costs on the mortgagé and on financial support for Mission Partners. During the year the church mernb8rs agrood to sptnd up to £100k of reserve5 on making necessary repairs and improvemènts to the chur¢h mansg. By the end of the year, £52k had been spent, which included upgrading the windows Io tk)uble glazing and ￿decorating the exlerlor of the bu1￿1￿￿. 11 is the Church's policy lo maintain OpBrating Cash Rg$erves of bgtween three an¢J six months of annual expenditure. For these purposes Operational Cash Reserves Includes all bank balances, other than Ik)se held separately for reslrt¢ted funds (such as the hAlssion and R8development Funds) and balanGes sel aside by the ChurGh Council for other specific purposes. Annu81 expgndlttjre is based on the annual budget for the Church. as approved by the members of th¢ Church. Al the end of 2023. total cash reserves of £0.41m12022'. £0.14m) are entirely unreslri¢t¥d. As a resull. w8 held th• equivalent of 6.3 months of budgeted operating expenses. The church was temporarily in breach ol its r8s8rv8s policy betsveen De¢gmber 2022 and January 2023. due to a decislon lo delay the final drawdown on the mortgage facilty. The risk of a temporary policy b￿a¢h w8$ deemed a￿eptab￿ given that the low general fund cash balance was a consequence of the general fund being used lo settle certain ￿St$ rglaling to the fenovatlon project on behalf of the Auditorium Project Fund- and that the loan facility was avadablo to us to draw down at short notice if ntrces5ary. We drew £0.35m on the loan in January 2023. which recovered the Operating Cash Reserv8s position. Thg Church manages Its finances through a General Fund and. wher8 r818vant. through restricted funds, which are astablished for specific purp¢)ses. In ro¢enl years members have been erwuragad lo give to the General Fund so Ihal the Church Council may have flgxibility in how Church income is allocated, whi18 always r8maining answerable to members and the Lord. (Members ￿main free lo giv8 to a Teslricted fund rfthis is their preferen￿). FUndraI￿n9 Duke Str8at Church èngagèd in lundraTsing in the form of receiving freg-will offerfngs and donallons, some of which were grfl-aided, from members and regular attenders of the fellowship. We did not contract the Servi￿ of any professional fundraisers as defined by section 58 of the Charities Act 1992. Cmjr practice before govemmont reslriclions relating to COVID was to publidy invlle an offering al every seryice. Other than this we do not engage in persistent fundraising or intrusive fundraising pra¢li¢es ￿1th any of our ￿￿OrS, including vulnerable people. and we nevèi hav$ private or coerc4ve discussic*ns with individuals about thgir giving. Our lundraising practices are ethical and in accordance with Biblical prlnclples. No complaints were received about our fundr8ising pr8Cté¢es. DUKE STREET CHURCH (RICHMOND-UPON-THAMES) TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 Risks and Risk Management Plan From lime lo time the Trustees considers the risks and uncertainties that might provenl thg thurch ffom a¢hieviny Its charitable goals. The risk areas. and approa¢h for managing the risk area can be summarised as follow$= Finan¢ial Risk.. our regular and one-off giving declln88.' we face a significant increase in the interest charged on our oulslanding mortgage; we factr an uninsurgd liabilty,. ther9 is a significant reduction in external hirer income. Risk Managgmont Approach: we prepare monthly management accounts., we manage an Operational Cash ReseNes policy of between three and six months, expenses,. we ensure that insUrar￿e pg1icEs are upt¢>dale and include Employer'$ liabilty of £10 million. Public Liability of £5 million and Property Owner's Liability of £5 million. Security & Safeguarding Rlsk.. there is a major Security. SafeguardThJ. or Health & Safety incident Rlsk Managemènt Approach: we conduct a thorough Sècurity & SafeguardiThJ Review.. we impthent buildirw zoning plans that ensure that chIld￿n and vulnerablè adults Can be secured from other more publlc parts of the building when required,. we ensure compliance with our Building Terffls of Use for all extemal hirers- we ensure that Insurance policies are up-to-dale and Gover us for vjenlified risks- we maintsin up40-date Service Incident logs and Risk Logs., we ensure that all major identrfied risks a￿ reported lo the Council and a risk management plan identified (Act%pt, Mitigate or Avoid). knkewise, when we have hired alternative venues. we have adopted the pollcies of the venues themselves. Plan$ f¢rthe Futuie The Church will corblinue to utilise the funds that are provided by members and friends through Ihe generous provision of the Lord to support the vislon and objectives that were hlghlighted in the sections above. In addition to the ongoin9 and regular 8¢livilies Ihal this entails, the church has a numbei of specifi¢ plans for the future.. The church plan5 to continue the necessary maintenance woth on the manse. We ￿cognIse the important part that debt has played in enabling us lo cary out ¢ru¢ial works lo our buildings in support of our ministry. Iv)wever the Church would prefer not to be in debt. We will Continue to repay our outstanding loans and the Church Counal wll consider over-paying our conlradual amounts where it does not impede other ministry objectives. DUKE STREET CHURCH {RICHMOND-UPON-THAMES) TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 Stru¢tur•. govemance and rnanagement Tha church is a regist8r8d ¢harity number 1134492 and an incorporated company number 07118491.lts registered name is Dukè Str8gt Church IRi¢hmond-UW)n-Thamesl but il operates under the name Duke Street Church. Th8 charity was incorporated on 7 January 2010 and is governed by its Memorandum and Artlcles of Assoclatlon. New Iruslees are appointed by the church members at thg members, meetings. They receNe training wthin trustee mè8liNJs. The Irus188s. who are also the directors for the purpose of company law. and who s8N8d during the year 8nd up to the d81e of signature of the financial slalements were= Ivan Bair(I Chuck Bateman Garelh Batten Jonalhan Borsley Paul Chambers (Acting Chair from July 20231 Laurie Hunter Philip Long James Muhjoon Stephen Pryor John Samuel (Chair until July 20231 John Taylor Siobh8n Temple Tim Totton Angela Vincent Ali Azzopardi {Resigned 21 March 20241 {Appointed 29 June 20231 {Apptsinted 21 March 20241 {Appolnted 15 Aprll 20241 {Resigned 1 August 2023) {Resigned 21 March 20241 {Resigned 29 June 20241 {Reslgned 29 June 20231 Trustees serve for a term of four years, after which they may stsnd for re*lection. The Elders and th8 Coun¢il consider carefully whether an individual remains appmpriat8 for office throughout their term and at the point of nomlnallon for re-election against the standards set out in Ihe Bible. We do not set a maximum numbèr of ye8rs that a trustee may serve for bul do factor tenure in to those considerations. We note sever81 of our Irust8es have 88rved for longer than 9 y8ars. The Church's actlviues are managed by Elders (who have particular responsibility for the spiritual direction and oversight of the Church) and Core Group Leaders (who are responsible for different a8￿Cts of the Church's lifel. Elders and Core Group Leade￿ act as trustees, and together they comprise the Church Council. The Church Council is responsible for the overall condu¢t of the Charity and ensuriThJ compliance with the Memorandum and Articles ofAssodalien. All trustees are appointad by the Church members. The key managemgnl personnel of the Church are the trusle6s and Matt Bailey. Head of Ministy Support. They are in charge of directing. controlling. running and operating the charity on a day-to4ay basis. Apart from the Senior Minister. the trustees give of their lime freely and did not receive any remuneration in tha yèar. Details of related party trar)sactions are disclosed In Note 24 to the financial stslements. The pay of senlor stsff 1$ reviewed ￿nUallY and normally Increased In accordance ￿th average earnings. Members of staff received a salary increase in 2023 to ensure that salaries r8main in line with other ¢omp8rable roles. We will continue trj benthmark staff benefrts aga￿$1 staff pthrming similar roles in similar charities. Thè trustges of the main churth building are The Baptist Union Corporation Lttl IBUCLI, Nicholas Forresl and Sir Paul Coleridge. BUCL is sole trustee of the manse153 Old Deer Park Gardens. Rlchmondl. The Church is assoualed with the Evangellcal Alllance. Affinity. ihe London Gospel Partnership and the Fellowshlp of Independent Evangelical Churche5. DUKE STREET CHURCH (RICHMOND-UPON-THAMES) TRUSTEES. REPORT (CONTINUED){INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 Statement of trustees. re$ponslbllltle$ The truslees, who ale also the dirgclors of Duke Slregt Church for tho purpos& of company law, a￿ rosponsiblo for p￿paring the Trustees, Rgport and the financlal statements In accordance with appllcable law and United Kingdom Accounting Stsn¢Jards (Unitod lQngdom Generally Accepted Accounting Practhcel. Company Law requires Ihe trustees to prepare financial statements for each financial year which give a true and fair viow of the Slate of affairs of the church and of the incoming resources and application of resources, including the income and expenditure. of the eharitsble company for that year. In preparing thgse finan¢ial 6talgmgnl$. the trustees are required to.. sdect Suitab￿ accounting poliGie3 and then apply them con3istently', observe Ihe methods and prfncipl8s In the ChariUes SORP; make judgements and estimates that are reasonable and prudent- state whelher applicable UK Accounting Standards have been followed. subject lo any materlal departures disclosed and explained in the financial stalemen15' and prepare the financial staternents on the wing concem basis unless it is inapprcfjriale to presume that the church will continue in Operation. The trustees are responsible for keeping adequate a¢￿untIng records that are sufficient to show Bnd explain thè charitable companys transactions and disclose with reasonable accuracy al any time the financial position of the church and enable them to ensure that the financl81 statements comply with thg Companies Act 2006. They are also responsible for safeguarding the assets of the church and hence for taking reasonable steps for the provenlion and detection of fraud and othpr iiregularities. Auditor In accor(lan¢e with the ￿Mpan￿S articles, a resolution proposing that Jacob Cavenagh & Skeet be reappointed as audllor of th8 ¢ompany will be pul at a General Meeting. DIsGlosuro of Informatlon to audltor Each of the trustees has confimed that there is no information of which they are aware which Is relevant lo the audit, but of which the audttor is unaware. They have further confirmed that they hav& tsken apprwate steps to idenufy Such relevant information and to establlsh that the auditor is aware of such infomi8ti0n. The trustses. report was prepared in accordance with the spacial provish)ns rélaliro lo small companies and approvad by the Board of Trustees. Paul Chambers Trustee DUKE STREET CHURCH (RICHMOND-UPON-THAMES) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DUKE STREET CHURCH Opinion We have audited the financial statemonls of Duke Street Church {the 'church') for the year end￿ 31 De￿mber 2023 which comprise the statement of financial activities, the balance sheet. tho statement of ¢ash flows and the notes to the fin8n¢i81 ststements, including a summary of significant accounting policies. The finanual reporting framework that has been applied in Ihgir Preparation is applicab￿ law and United Kingdom Accounting Standards. Including Financial Reporting Stsnd8rd 102 Th& Financial R&porting Standard applicable in the UK and R?publAC of Ireland (United Kingdom Gen$rallyA¢¢epled A¢counting Praclicel. In our opinSon. the financial slalements.. giv¥ a tru$ and fair view of Ihe stste of the charitable o)mpany's affairs as at 31 Decembar 2023 and of its incoming resources and appli¢alK)n of resource5, including its income and expenditure, for the year then ended.. have been properly prepared in accordance with Unilod Kingdom Generally Accepted Ac¢ounting Pracli¢e,' a￿1 hav& bèen prepared in a¢¢ordance wilh the requirements of the Companies Act 2006. Basi¥ for opinion We condu¢ted our audit in accordance Yllh InlemalioTral Standards on Auditing (UK) IISA5 IUKII and appKcabl8 law. Our responsibilities under those standards are further described in the Auditorfs responsibilits'es for the audit of th8 financial sfotemenls section of our report. We are independent of the church in accordance wth the ethical roquiremgnts Ihal are relevant lo ￿r audll of the financial statements in the UK. Including the FRC'S Ethical Standard, and we hav8 fulfilled our other ethical responsibilities in accordance with these requirements. We believ that the audit evidence we have obtained is sufficiènt and appropriate to provide a basis for our opinion. Concluslon5 relatlng to goSng concom In auditing the financial statements, we have concluded that the trustees, use of the going concern basls of a¢counling in the preparation of th8 finanLial slalemenls is appropriate. Based on th8 work ￿ have performed, we have not identified any material unc*rtaintigs relathng to events or conditions that, indimdually or collectively, may cast significant doubl on the church's ability lo continu8 as a going concern for a perii)d of at least ts¥e￿e months from when the financial stslements are authorised for issue. Our responsibilitles and responsibiliknes of tha truslges wllh respect lo going concem are described in Ihe relevant sections of this report. Othèr infomiation The other infonmation comprises th& iifomation induded in the annual report other than the financial statements and our auditorfs report thereon. The trustees are responslble for the other infom)ation contsined wllhln the annual report. Our opinion on the financial statements does not cover the other infomiation and, exeept lo the extent olhermse explicilly stat8d in our report, we do not express any form of a$suran¢g conclusion thereon. Our rèsponsibllity is to read the other InfomialSon antj. Sn doing so. consider whether the other infomiauon 1$ materially inconsislenl with the financial stat8ment$ or our knowledge obtained in the course of Ihe autlil, or otherwise app8ars lo be materially misslaled. If we identify such malgrfal in¢onsisten¢ies or apparent malarial misslat8rnents. wè are required to determine whether this gives riso to a material mis5tatemenl in the financial statements themselves. If, based on the work we have perfOrn￿d, we conclude that thero is a material mi55talemenl of this other information, we are required to report that fact. We have nothing to report in this regaril. Oplnlons on othor matters pr•s¢rlbod by the Companles Act 2006 In our oplnSon, based on thè work undertaken in Ihe course of our audit.. th8 inlormation given in the tfusleès, report for the financial year for whlch the finandal statements are prepared, which includes the directors, report pfypwed for the purposes of company law. is conslslent wilh the rinancial statements. and the directors. report included thin tho trustees, report has b88n wepared in a¢cordan¢& wth appIl￿bIg Iggal requirements. DUKE STREET CHURCH {RICHMOND-UPON-THAMES) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF DUKE STREET CHURCH Mattars on whieh wo are roqulrnd to r8port by 4X￿p11¢n In the light of thg knowledge and understanding of the ¢hurch and lis envlronment obtalned In the course of the audit. w8 have not id8ntifi8d material misstatements in th8 dire¢tors' reix*t included within the trusteas. report. We have nothlng to report In respect of the followlng matters in relation to which the Companies Aet 2006 requires us to report lo you rf. in our opinion.. adequate accounting records have not been kept, w retums alequate for our audit have not b$8n recelved from branches not visited by us- or the financial statements are not in agreement with the accounting records and returns- or certain disclosure5 of Iruslees, remuneration specified by law are not made- or we have not received ￿1 the infomalion and explanations we requlre for our audit,. or the trustees were not entiued to prepare the financial statements in accordancè with th8 small comp8ni8s regime and take advantage of thg small companios. 8xemptions in preparing the Irustees, report and from the requirement to prepare a strategic report. Responsibilities of trustees As oxplained more fully in the Statement of trusleos, responsibilili8s, tho trusletrs, who are also tho directors of the church for thtr purpose of (x)mpany law, aTè responsible lor the prtrp8r¥lion of the financlal Statements and for being satisfied that they gSve a true and faSr vSew. and for such Intemal control as the trustees detem)ine is necessary to gnab19 the preparation of financial statements that are free from material missialement, whelher due to fraud or érror. In preparing th8 financial statem8nts, the Iruste8s aré responsible for assessiro th8 church's ability to continue as a going concem, disclosing, as applicable. mattels related to going concem and using the going concem basis of accountin9 unless the trustees either intend to liquidate the charitable company or lo ￿se operations, or have no realistic allemalive but lo do $0. Auditorfs r•sponsibiliti•s lor the audit of the financial statem•nts Our objectsves are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and lo issue an audilorfs report that includes our oplnlon. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted In a¢¢ordance with ISAS IUKI will a￿ayS detect a material misslalemenl when il exis15. Misslatemenls can arise from fraud or e￿0[ and are considered fftalerial if, individually or in the aggregate, they could reasonably be expectsd to influence the economic decisions of users taken on the basis of these financial slalements. The extent to whKh c*Jr procedures am Capable of deteth'ng irregularities, i￿luding fraud, is detailed below. Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to company, employment and financlal reporting legi¥l8llon 8nd wg consiéemd Ihg èxtent to which Tr)n {350,294) 1851.6851 155,834) {907.519) -24-