REGISTERED COMPANY NUMBER: 07308725 (England and Wales) REGISTERED CHARITY NUMBER: 1139291
Report of the Trustees and
Financial Statements for the Year Ended 31 May 2021
for
KHARIS MINISTRIES (A COMPANY LIMITED BY GUARANTEE)
Richard Samson Chartered Accountant 21 Coldharbour Lane London SE5 9NR
KHARIS MINISTRIES
Contents of the Financial Statements for the Year Ended 31 May 2021
| Page | |
|---|---|
| Report of the Trustees | 1 to 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 to 9 |
| Notes to the Financial Statements | 10 to 16 |
| Detailed Statement of Financial Activities | 17 to 18 |
KHARIS MINISTRIES
Report of the Trustees for the Year Ended 31 May 2021
The Trustees who are also directors of the charity for the purposes of Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 May 2021. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The objects of the charity are to advance the Christian faith in accordance with the teachings of the Bible and to further the gospel of the Lord Jesus Christ by any and all means possible; and the relief of poverty, sickness and distress primarily but not exclusively in Africa by the provision of food, clothes and shelter and the relief of persons who are victims of natural disasters of war.
Significant activities
Activities which further the objectives include preaching the Word of God through regular Thursday and Sunday church meetings and Friday community based meetings held at the homes of members of the church congregation. As previously reported since 22 March 2020, this has not been possible as a result of government closure of places of worship due to the coronavirus pandemic.
The charity is actively engaged in providing wholistic support to many disadvantaged individuals from all walks of life. This support is provided in many different forms including fellowship, worship, education, training and practical application of Christian principles.This support was provided remotely during the period under review.
The charity encourages members of the church congregation to practice the belief that all activities of their lives must be guided and directed aright by the Word of God, which is the Bible.
The charity serves to provide a means through which people can seek God and lead lives based on sound Christian doctrine.
FINANCIAL REVIEW
Financial position
The trustees are pleased with the financial position of the charity at the balance sheet date.
Principal funding sources
The charity is maintained and operated by means of contributions from members of the congregation, private individuals, organisations or associations that share the objectives and aspirations of the charity and from revenues derived from its assets or business. All donations and contributions are non-refundable and shall be disbursed as the trustees see fit.
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.
The charity does not currently hold any investments.
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KHARIS MINISTRIES
Report of the Trustees for the Year Ended 31 May 2021
FINANCIAL REVIEW
Reserves policy
The charity does not currently analyse its funds into different classes or categories. All the funds are maintained in a single general fund.
Going concern
Despite the restrictions resulting from the worldwide pandemic the Charity has experienced continued growth under the guidance and leadership of Pastor David Antwi.
As previously reported he has continued to minister by recording sermons, services, talks and other material using a purpose built recording studio located in his home.
He has also provided support to Church members using internet video meetings, messaging and telephone.
Pastor David’s abilities and appeal to Church members is evidenced by their willingness to continue to support his work by way of donations to Kharis Ministries.
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KHARIS MINISTRIES
Report of the Trustees for the Year Ended 31 May 2021
FINANCIAL REVIEW
Long and continuing service award to the Church's founder
After careful consideration, the trustees resolved to make a long and continuing service award to Pastor David Antwi. The award was made to him in his capacity as a Pastor to support him in his service to the Church.
The award reflects the contribution that he has made and, continues to make, to the successful operations and growth of the Church prior to and following its inception. For the first 9 years he funded the church with his own resources and did not receive any remuneration.
Matters the trustees took into consideration included the following:
For over 20 years Pastor David has devoted his life to the purposes of the Church. He has been the main impetus, giving leadership and direction to the Church.
The benefits arising from his sacrificial labour are evident as the Church has experienced exponential growth under his guidance and leadership since 2002.
His presence is essential to the survival of the Church.
The Church would not exist without his valuable contribution. He is currently working towards structuring the Church to be more sustainable in his absence.
Following the UK government's restrictions on public gatherings and movement in March 2020, which led to the closure of all places of worship, he has maintained his dedication to the Church, ministering using recorded sermons, services, talks and other media. He has also provided full support to Church members using internet video meetings, messaging and telephone.
Pastor David's abilities and appeal to Church members is demonstrated by their willingness to support his work by donating to Kharis Ministries.
The trustees acknowledge his outstanding efforts and positive impact on the lives of church members during the period under review.
Since 2002 and throughout the pandemic, Pastor David has been using his family home as follows:
Church headquarters.
Recording studio and hub for all Church activity.
To store the majority of the Church's equipment as the Church does not have its own premises.
The size of his home is inadequate to accommodate Church operations and his family which include his wife and two young daughters. The trustees are aware of Pastor David's cramped living arrangements and his need to move into a larger property. Without assistance, this is anticipated to continue indefinitely.
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KHARIS MINISTRIES
Report of the Trustees for the Year Ended 31 May 2021
FINANCIAL REVIEW
Pastor David's commitment to the needs of the Church is evident, having chosen to limit the benefits he has received from the Church over the last 20 years (despite his full-time commitment), to enable the resources of the Church to be used elsewhere. The trustees concluded that the long and continuing service award was overdue.
The trustees believe that the net award after statutory deductions of two hundred and five thousand, four hundred and fifty six pounds is an appropriate sum to support him in his ministry.
The trustees are of the opinion that the award is expedient in the interests of the Church.
FUTURE PLANS
The trustees recognise that future plans to continue to grow the membership of the Church are dependent upon the continued service of Pastor David Antwi.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The governing document of the charity is the Memorandum and Articles of Association of the company, limited by guarantee 'Kharis Ministries'.
Organisational structure
The charity is managed and controlled by the trustees. Currently all trustees are also directors of the company limited by guarantee.
Trustees meet regularly to make management and policy decisions.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
07308725 (England and Wales)
Registered Charity number
1139291
Registered office
2a Orchard Road Belvedere Kent DA17 5BP
Trustees
I Gogo P Afful-Mensah J N Y Darbo (resigned 28.2.22) T D Owusu-Lane Ms N A A Mensah J Dumson-Kofhan
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KHARIS MINISTRIES
Report of the Trustees for the Year Ended 31 May 2021
REFERENCE AND ADMINISTRATIVE DETAILS
Independent Examiner
Richard Samson Chartered Accountant 21 Coldharbour Lane London SE5 9NR
Approved by order of the board of trustees on 9 March 2022 and signed on its behalf by:
P Afful-Mensah - Trustee
Page 5
Independent Examiner's Report to the Trustees of Kharis Ministries
Independent examiner's report to the trustees of Kharis Ministries ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 May 2021.
Responsibilities and basis of report
As the charity's trustees of the Company (and also 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 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 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
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of ICAEW 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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
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
-
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.
Richard Samson ICAEW Richard Samson London SE5 9NR
9 March 2022
Page 6
KHARIS MINISTRIES
Statement of Financial Activities for the Year Ended 31 May 2021
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Other trading activities 2 Investment income 3 Total EXPENDITURE ON Charitable activities Ministry and evangelism Alleviation of poverty and distress Running costs Total NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2021 Unrestricted fund £ 1,170,795 - 422 1,171,217 716,331 - 101,708 818,039 353,178 1,081,467 1,434,645 |
2020 Total funds £ 991,476 937 643 |
|---|---|---|
| 993,056 361,711 2,860 267,282 |
||
| 631,853 | ||
| 361,203 720,264 |
||
| 1,081,467 |
The notes form part of these financial statements
Page 7
KHARIS MINISTRIES
Balance Sheet 31 May 2021
| Notes FIXED ASSETS Tangible assets 7 CURRENT ASSETS Debtors 8 Cash at bank and in hand CREDITORS Amounts falling due within one year 9 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 11 Unrestricted funds TOTAL FUNDS |
2021 Unrestricted fund £ 204,340 7,100 1,503,309 1,510,409 (280,104) 1,230,305 1,434,645 1,434,645 1,434,645 1,434,645 |
2020 Total funds £ 154,949 17,471 1,348,190 1,365,661 (439,143) 926,518 1,081,467 1,081,467 1,081,467 1,081,467 |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2021.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
continued...
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KHARIS MINISTRIES
Balance Sheet - continued 31 May 2021
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 9 March 2022 and were signed on its behalf by:
P Afful-Mensah - Trustee
The notes form part of these financial statements
Page 9
KHARIS MINISTRIES
Notes to the Financial Statements for the Year Ended 31 May 2021
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.
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.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
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.
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
The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability.
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
continued...
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KHARIS MINISTRIES
Notes to the Financial Statements - continued for the Year Ended 31 May 2021
1. ACCOUNTING POLICIES - continued
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
2. OTHER TRADING ACTIVITIES
| 2. | OTHER TRADING ACTIVITIES | ||
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| T shirt sales | - | 937 | |
| 3. | INVESTMENT INCOME | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Deposit account interest | 422 | 643 | |
| 4. | NET INCOME/(EXPENDITURE) | ||
| Net income/(expenditure) is stated after charging/(crediting): | |||
| 2021 | 2020 | ||
| £ | £ | ||
| Depreciation - owned assets | 66,041 | 51,649 | |
| Hire of plant and machinery | 3,226 | 1,233 |
5. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 May 2021 nor for the year ended 31 May 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 May 2021 nor for the year ended 31 May 2020.
continued...
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KHARIS MINISTRIES
Notes to the Financial Statements - continued for the Year Ended 31 May 2021
6. STAFF COSTS
The average monthly number of employees during the year was as follows:
| Ministerial Ministerial support |
2021 2 3 5 |
2020 2 2 |
|---|---|---|
| 4 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| £60,001 - £70,000 £480,001 - £490,000 |
2021 - 1 1 |
2020 1 - |
|---|---|---|
| 1 |
During the period under review the trustees, after careful consideration, resolved to make a long and continuing service award to Pastor David Antwi. The award was made to him in his capacity as a Pastor to support him in his invaluable service to the Church. The award will enable him to continue his commitment to the successful operations and growth of the Church since he founded it in 2002. The trustees are of the opinion that the award is expedient in the interests of the Church and its smooth operation. Particularly, in the light of the Church's continued use of Pastor David's personal residence for several activities including (but not limited to) storage, meetings and recording sermons. After statutory deductions the award conferred him a net benefit of two hundred and five thousand, four hundred and fifty six pounds; which equates to approximately ten thousand pounds per year over the last 20 years.
continued...
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KHARIS MINISTRIES
Notes to the Financial Statements - continued for the Year Ended 31 May 2021
7. TANGIBLE FIXED ASSETS
| 7. TANGIBLE FIXED ASSETS |
|||||
|---|---|---|---|---|---|
| COST At 1 June 2020 Additions At 31 May 2021 DEPRECIATION At 1 June 2020 Charge for year At 31 May 2021 NET BOOK VALUE At 31 May 2021 At 31 May 2020 8. DEBTORS Amounts falling due within one year: Loan Prepayments Stripe Soldo Amounts falling due after more than one year: Other debtors Aggregate amounts |
Plant and machinery £ 597,725 103,148 700,873 443,260 62,849 506,109 194,764 154,465 |
Fixtures and fittings £ 6,042 12,284 18,326 5,558 3,192 8,750 9,576 484 2021 £ 3,600 1,000 - 1,500 6,100 1,000 7,100 |
Totals £ 603,767 115,432 |
||
| 719,199 | |||||
| 448,818 66,041 |
|||||
| 514,859 | |||||
| 204,340 | |||||
| 154,949 | |||||
| 2020 £ 3,600 1,000 11,371 1,500 |
|||||
| 17,471 | |||||
| - | |||||
| 17,471 |
continued...
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KHARIS MINISTRIES
Notes to the Financial Statements - continued for the Year Ended 31 May 2021
9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Hire purchase (see note 10) Gift Aid Social security and other taxes Other creditors Pension Accrued expenses 10. LEASING AGREEMENTS Minimum lease payments under hire purchase fall due as follows: Net obligations repayable: Within one year 11. MOVEMENT IN FUNDS At 1.6.20 £ Unrestricted funds General fund 1,081,467 TOTAL FUNDS 1,081,467 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 1,171,217 TOTAL FUNDS 1,171,217 |
2021 £ - 251,269 (21,215) 22,876 12,312 14,862 280,104 2021 £ - Net movement in funds £ 353,178 353,178 Resources expended £ (818,039) (818,039) |
2020 £ 629 251,269 137,437 16,032 9,976 23,800 439,143 2020 £ 629 At 31.5.21 £ 1,434,645 1,434,645 Movement in funds £ 353,178 353,178 |
|
|---|---|---|---|
continued...
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KHARIS MINISTRIES
Notes to the Financial Statements - continued for the Year Ended 31 May 2021
11. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Net movement At 1.6.19 in funds £ £ Unrestricted funds General fund 720,264 361,203 TOTAL FUNDS 720,264 361,203 Comparative net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 993,056 (631,853) TOTAL FUNDS 993,056 (631,853) A current year 12 months and prior year 12 months combined position is as follows: Net movement At 1.6.19 in funds £ £ Unrestricted funds General fund 720,264 714,381 TOTAL FUNDS 720,264 714,381 |
At 31.5.20 £ 1,081,467 1,081,467 Movement in funds £ 361,203 361,203 At 31.5.21 £ 1,434,645 1,434,645 |
|---|---|
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continued...
KHARIS MINISTRIES
Notes to the Financial Statements - continued for the Year Ended 31 May 2021
11. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 2,164,273 2,164,273 |
Resources expended £ (1,449,892) (1,449,892) |
Movement in funds £ 714,381 714,381 |
|---|---|---|---|
12. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 May 2021.
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KHARIS MINISTRIES
Detailed Statement of Financial Activities for the Year Ended 31 May 2021
| INCOME AND ENDOWMENTS Donations and legacies Donations Other trading activities T shirt sales Investment income Deposit account interest Total incoming resources EXPENDITURE Charitable activities Ministry and evangelism Donations to other charities Grants to individuals Support costs Management Wages Social security Pensions Hire of plant and machinery Insurance Telephone Postage and stationery Sundries Travelling expenses Repairs and maintenance Accountancy fees Information and communications technology Legal and professional fees Plant and machinery Carried forward |
2021 £ 1,170,795 - 422 1,171,217 28,936 24,236 - 53,172 569,797 69,076 6,834 3,226 2,731 7,884 2,263 127 1,322 7,420 10,200 2,777 6,562 62,849 753,068 |
2020 £ 991,476 937 643 |
|---|---|---|
| 993,056 310,074 32,187 2,860 |
||
| 345,121 134,844 10,611 6,300 1,233 1,837 8,612 7,910 1,545 25,105 7,503 10,200 2,401 840 51,488 270,429 |
This page does not form part of the statutory financial statements
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KHARIS MINISTRIES
Detailed Statement of Financial Activities for the Year Ended 31 May 2021
| Management Brought forward Fixtures and fittings Finance Bank charges Hire purchase Total resources expended Net income |
2021 £ 753,068 3,192 756,260 9,236 (629) 8,607 818,039 353,178 |
2020 £ 270,429 161 |
|---|---|---|
| 270,590 15,789 353 |
||
| 16,142 | ||
| 631,853 | ||
| 361,203 |
This page does not form part of the statutory financial statements
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