**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.
Page 1
**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.
Page 2
**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.
Page 3
**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
Page 4
**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:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. 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
4. 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...
Page 8
**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...
Page 10
**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...
Page 11
**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...
Page 12
**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...
Page 13
**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...
Page 14
**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|
|---|---|
Page 15
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.
Page 16
## **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
Page 17
**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
Page 18