2021-12-31-accounts

Company Registration Number - 07675378

The Charity Registration Number is :- 1143113

Holiness Unto The Lord International Church

Report and Accounts

31 December 2021

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Holiness Unto The Lord International Church

Report and accounts for the year ended 31 December 2021

Contents

	Page
Trustees' Annual Report	3
Statement of directors' responsibilities	9
Accountants' report	11
Funds Statements:-
Statement of Financial Activities	13
Statement of Financial Activities - Prior Year statement	14
Application of funds	15
Movements in funds	15
Income & Expenditure Account	16
Balance sheet	17
Notes to the accounts	18

Holiness Unto The Lord International Church

Company Registration Number - 07675378

Trustees' Annual Report for the year ended 31 December 2021

The Trustees present their Report and Accounts for the year ended 31 December 2021, which also comprises the Directors' Report required by the Companies Act 2006.

Reference and administrative details

The charity name.

The legal name of the charity is:- Holiness Unto The Lord International Church

The charity is also known by its operating name, HUTLIC

The charity's areas operation and UK charitable registration.

The charity is registered in England & Wales with the Charity Commission in England & Wales (CCEW) with charity number 1143113

Legal structure of the charity

The governing document of the charity is the Memorandum and Articles of Association establishing the company under company legislation.

The Governing Document is dated 28 April 2010

By operation of law all, trustees are directors under the Companies Act 2006 and all directors are trustees under Charities legislation and have responsibilities, as such, under both company and charity legislation.

The trustees are all individuals.

The principal operating address, telephone number, email and web addresses of the charity are:-

15a The Vale Business Centre 203-205 The Vale, Acton London, W3 7QS

Telephone [phone] Email Address [e-mail] Web address http://www.hutlic.org

The registered office of the charity for Companies Act purposes is the same as the operating address shown above

The Trustees in office on the date the report was approved were:-

Ms Meaza Kidane Mrs Woinshet Mulugeta Mr Nebiyu Lemma

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The following persons served as Trustees during the year ended 31 December 2021 :-

The trustees who served as a trustee in the reporting period were as shown above, and there were no changes during the year, or in the period between the year end and the approval of the accounts.

Ms Meaza Kidane

Mrs Woinshet Muugeta

Mr Nebiyu Lemma

All the trustees are also members of the charity.

Objects and activities of the charity

The purposes of the charity as set out in its governing document are.

• The advancement of the Christian faith for the benefit of the public and in particular, but not limited to, those of Ethiopian and Eritrean descent. The relief of distress, sickness and poverty.

• The advancement of education and the conditions of life of the public.

The main activities undertaken in relation to those purposes during the year.

HUTLIC maintained the weekly services of two days per week throughout 2021. The church services were conducted at church using a booking system until 18[th] July following the government guidelines, live YouTube, Facebook and Zoom. Bible Study Group sessions, Seminars, Training, Discipleship Classes, and Counselling were conducted via Zoom. Thanksgiving, praise and worship and baptism service was held on 25[th] September 2021. Throughout the year many people came to faith and undertook discipleship classes via zoom. Women ministry annual meeting held on 13[th] November 2021. Annual 40 Days Prayer and Fasting was conducted from 22nd November to 31 December via Zoom. The church celebrated Annual Conference from December 28th to 31st December 2021.

HUTLIC continued to be proactive during the Covid lockdown by reaching out to those who felt lonely and vulnerable, praying for those who were anxious, worried, unwell, and feared for their wellbeing. HUTLIC organized daily prayer meetings in the morning and evening via Teleconference and Zoom for those who sought prayer, insight, wisdom, revelation, and encouragement for their lives. HUTLIC trains people and then release them to follow God’s call to serve people spiritually and practically.

Church members provided groceries and shopping for vulnerable and elderly people, as well as for those that needed financial assistance and supported to one another.

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The short term and longer term aims and objectives.

The governing document gives the trustees the power to invest surplus funds. Given the plans to invest into a church building the trustees have decided to leave surplus funds in bank current accounts. Trustees will liaise with relevant professional bodies for advice on mortgages, auctions, and leasing premises. Fund raising events will be organised in future. HUTLIC formed a team of 15 members to search premises, warehouses and D1 properties to accommodate the growing congregation, including an increasing number of youth and children attending the church. The lockdown and the pandemic unfortunately halted this effort. HUTLIC is now looking for a suitable place, such as a warehouse, as St John’s Church does not have the space needed for all HUTLIC’s activities.

Resources used in the activities undertaken during the year.

The voluntary income for the year from donations and church collections was £170,455 (2020:£108,016). The costs of generating voluntary income and costs of charitable activities were £98,795 (2020:£88,867).

The charity has built up reserves of £321,452.The trustees will review the level of reserves held by the charity in light of this.

The main achievements and performance of the charity during the year.

The Covid pandemic affected every aspect of life in the UK and the world, and HUTLIC was no exception. The wider church meets the spiritual needs of its members, and HUTLIC was faithful to assume its responsibility in the face of immense difficulty. The church was committed, during this difficult period, to follow the biblical patterns of submission as prescribed in “1 Peter 2:13-17” by ensuring trustees, leaders and members complied with Covid rules and guidelines.

‘Therefore, submit yourselves to every ordinance of man for the Lord’s sake, whether to the king as supreme, or to governors, as to those who are sent by him for the punishment of evildoers and for the praise of those who do good. For this is the will of God, that by doing good you may put to silence the ignorance of foolish men as free, yet not using liberty as a cloak for vice, but as bondservants of God. Honor all people. Love the brotherhood. Fear God. Honor the king.’

The services were only allowed in by online booking until the restriction was lifted. Thus, HUTLIC strived, and did so successfully, to cater to the spiritual needs of its members and friends without compromising Covid restrictions.

HUTLIC also supported the displaced people and rehabilitation in Ethiopia who were forced to leave their places of residence because of the conflict.

During the year, HUTLIC’s Senior Pastor, Zinaw T Hailemariam, provided marriage counselling to those who were having difficulty following the imposed lockdowns and pandemic. He also provided much needed prayer, care, biblical advice, and guidance to those who sought help in the face of mental health issues, loneliness, depression, lost their jobs and various ailments. Pastor Zinaw provided marriage training to those preparing to get married and extensive teaching to parents on how to raise Godly

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children in difficult times. He led a series of teachings aimed at the church’s youth to inspire them to support their community, tackle antisocial behaviour and to be a good example to their peers. Many people were healed of various sicknesses, delivered from addictions and evil spirits, and some received The Lord Jesus as their personal Saviour.

Youth and Children Ministry

During the 2021 HUTLIC continued to train and minster the young adults and children on a weekly basis every Sunday’s. Proverbs 22:6 “Train up a child in the way he should go, and when he is old, he will not depart from it.”

HUTLIC believes each child should be given the opportunity to know the Lord personally and grow in their knowledge of the word of God. We work to help the children live out successful and victorious lives with emphasis on holiness. There were more than 50 children and teenagers joining the lessons each week. The lessons were divided into age groups of 5-7, 8- 9, 10-12 and 13+ groups. Teachers were assigned for each week to be responsible for arranging lessons. The teachings were designed to encourage the children in their walk with God. The lessons have inspired and motivated the students to live a life worthy of their calling and in line with the word of God.

We also scheduled 7 online baptism lessons and 14 Youth team members got baptised on September 2021.

During December the young children on every age group worked hard with their teachers and prepared a wonderful Christmas worship and the whole congregation was blessed by their ministry

Evangelism Ministry

HUTLIC evangelism ministry continue training people and then release them to follow God’s call with the intention of spreading the good news of Jesus Christ. The training was held on zoom and all available platforms. Matthew 28:19 “Go therefore and make disciples of all the nations, baptizing them in the name of the Father and of the Son and of the Holy Spirit”

Foundation class and discipleship training run for new believes to enhance their spiritual stability and spiritual base of their commission based on the word of God. Once they complete the foundation class, they are encouraged to take baptism class. About 16 believers attended baptism class and have been baptised.

HUTLIC conducted weekly Bible study groups in North, South, East, and West London via Zoom. The bible study strengthens, give courage, grow in confidence of God’s truth, and help members to understand all that God has done for us through Jesus Christ.

Prayer Ministry

HUTLIC believes in consistent prayer that releases the power of God’s blessing on our life and circumstances, by prayer we draw near to God and have Him draw near to us. The team meets weekly via Zoom and monthly prayer and fasting as well as fellowship.

HUTLIC Prayer Warrior are committed to pray for others for forgiveness, confession of sin, healing, Intercession, deliverances and enable believers to endure various trials and temptation.

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Media Ministry

The ministry provided services twice a week as well as at every other church event and occasion. During lockdown and pandemic, the team livestreamed the service on YouTube and Facebook, Viber and WhatsApp link. The live chat created a platform for participants to engage through comments, prayer requests, praising and giving testimonies. Guests were also invited to share the Gospel via Zoom Meeting, vMix Call and all available platform from all over the world. Many have received their salvations and had a deep encounter with our Lord Jesus Christ. Our dedicated team translates the word of GOD in English. Romans 10:17 “Faith comes by hearing, and hearing by the word of God.”

Structure, governance and management of the charity

The methods used to recruit and appoint new charity trustees.

The governing document requires a minimum of three trustees, and that further trustees are appointed by existing trustees. The trustees have the overall financial and governance responsibility for the running of the church. The Senior Pastor has the overall spiritual responsibility for the church. This includes preaching to and teaching the congregation, as well as leading unbelievers to Christ. The Senior Pastor is also responsible for carrying out counselling such as marriage counselling and helping those with mental health issues, emotional distress, and spiritual issues. These activities were carried out online during the lockdown using various social media platforms. Additionally, the Senior Pastor carries out both hospital and home visits to those who are sickly as well as conducting special programs for prayer and healing. Within the church, the Senior Pastor leads a network of HUTLIC ministries and teams as well as overseeing the congregation’s wellbeing in line with Biblical principles as outlined in HUTLIC’s statement of faith. Annually, the Senior Pastor meets up with several senior pastors worldwide to develop skills as a pastor to further advance the ability to spread the gospel. The leaders of the church provide support to the Senior Pastor to help accomplish HUTLIC’s objectives.

Bankers

Royal Bank of Scotland

Accountants

TFG Accountancy Services Ltd, Unit 3 Langdale House, 11 Marshalsea Road, SE1 1EN

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Holiness Unto The Lord International Church

Financial review

The charity's financial position at the end of the year ended 31 December 2021

The financial position of the charity at 31 December 2021 and comparatives for the prior period, as more fully detailed in the accounts, can be summarised as follows:-

Net income Unrestricted Revenue Funds available for the general purposes of the charity Total Funds	2021 £ 71,660 321,452 321,452	2020 £ 19,149
		249,792
		249,792

Financial review of the position at the reporting date, 31 December 2021.

Policies on reserves.

The charity has built up reserves of £321,452. The trustees will review the level of reserves held by the charity in light of this.

Availability and adequacy of assets of each of the funds

The Board of trustees is satisfied that the charity's assets in each fund are available and adequate to fulfil its obligations in respect of each fund.

Plans For the Future

Summary of plans for the future and the trustees' perspective of the future direction of the charity.

HUTLIC plans to lease a building suitable for church services within the near future. Trustees will liaise with relevant professionals for advice on mortgages, auctions and leasing process

TEDROS FETWI

Member of Chartered Certified Accountant

Unit 3 Langdale House

11 Marshalsea Road London United Kingdom

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Statement of the Directors Trustees' Responsibilities

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Companies Act 2006, the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. Notwithstanding the explicit requirement in the extant statutory regulations, the Charities (Accounts and Reports) Regulations 2008, to prepare the financial statements in accordance with the SORP 2005, in view of the fact that the SORP 2005 has been withdrawn, the Trustees determined to interpret this responsibility as requiring them to follow current best practice and prepare the accounts according to the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015 (as amended by the Bulletin issued in February 2016) .

In particular, the Companies Act 2006 and charity law require the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to :-

• to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

• select suitable accounting policies and apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate

to presume that the charity will continue in business;

• state whether applicable accounting standards and statements of

recommended practice have been followed, subject to any material

departures disclosed and explained in the financial statements;

The law requires that the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year.

The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act 2006 and comply with regulations made under the Charities Act. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are also responsible for the contents of the Trustees' report, and the statutory responsibility of the Independent Examiner in relation to the Trustees' report is limited to examining the report and ensuring that, on the face of the report, there are no material inconsistencies with the figures disclosed in the financial statements.

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Method of preparation of accounts - Small company provisions

The financial statements are set out on pages 13 to 17.

The financial statements have been prepared implementing the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015 (as amended by the Bulletin issued in February 2016) and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016)

These financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.

This report was approved by the board of trustees on 25 August 2022.

MEAZA KIDANE

Director and Trustee

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Holiness Unto The Lord International Church

Report of the Independent Examiner to the Trustees of the charitable company on the accounts for the year ended 31 December 2021

I report on the financial statements of the charitable company on pages 13 to 17 for the year ended 31 December 2021 which have been prepared in accordance with the Charities Act 2011 (the Act) and with the Financial Reporting Standard 102, (effective 1st January 2016) as modified by FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015 (as amended by the Bulletin issued in February 2016) published by the Charity Commission in England & Wales (CCEW) , effective January 2015 (The SORP), under the historical cost convention and the accounting policies set out on page 18.

Respective responsibilities of the Trustees and the Independent Examiner

As described on page 9, the charitable company's Trustees, who are also the Directors of the Company for the purposes of Company law, are responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice , applicable to smaller entities, and for being satisfied that the financial statements give a true and fair view.

The Trustees consider that the audit requirement of Section 144(1) of the Charities Act 2011 (the Act) does not apply, and that there is no requirement in the memorandum and articles of the charity for the conducting of an audit, and that the accounts do not require an audit in accordance with Part 16 of the Companies Act 2006 and that no member or members have requested an audit pursuant to Section 476 of the Companies Act 2006. As a consequence, the Trustees have elected that the financial statements be subject to independent examination.

Having satisfied myself that the charity is not subject to audit under any legal provision, or otherwise, and is eligible for independent examination, it is my responsibility to:-

• a) examine the accounts under Section 145 of the Act;

• b) follow the procedures in the General Directions given by the Charity Commission under section 145(5)(b) of the Act and;

• c) state whether particular matters have come to my attention.

Basis of Independent Examiner's Statement and scope of work undertaken

I conducted my examination in accordance with the General Directions given by the Charity Commission under section 145(5)(b) of the Act, setting out the duties of an Independent Examiner in relation to the conducting of an Independent Examination. An Independent Examination includes a review of the accounting records kept by the charitable company and of the accounting systems employed by the charitable company and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you, as Trustees, concerning such matters. The purpose of the examination is to establish as far as possible that there have been no breaches of charity legislation and that the financial statements comply with the SORP, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements.

The procedures undertaken do not provide all the evidence that would be required in an audit , and information supplied by the Trustees in the course of the examination is not subjected to audit tests or enquiries, and consequently I do not express an audit opinion on the view given by the financial statements, and in particular, I express no opinion as to whether the financial statements give a true and fair view of the affairs of the charity, and my report is limited to the matters set out in the statement below.

I planned and performed my examination so as to satisfy myself that the objectives of the Independent Examination are achieved and before finalising the report I obtained written assurances from the Trustees of all material matters.

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Independent Examiner's Statement, Report and Opinion

Subject to the limitations upon the scope of my work as detailed above , in connection with my examination, I can confirm that :-

The accounts of this charitable company are not required to be audited under Part 16 of the Companies Act 2006;

This is a report in respect of an examination carried out under 145 of the Act and in accordance with General Directions given by the Charity Commission under section 145(5)(b) of the Act which may be applicable;

and that no matter has come to my attention in connection with my examination which gives me reasonable cause to believe that in any material respect the requirements :-

to keep accounting records in accordance with Section 386 of the Companies Act 2006 and Section 130 of The Charities Act 2011;

to prepare financial statements which accord with the accounting records and comply with the accounting requirements of Section 396 of the Companies Act 2006 and The Charities Act 2011 and;

have been prepared in accordance with the requirements of Section 396 of the Companies Act 2006 and with the methods and principles set out in the FRS102 Statement of Recommended Practice - Accounting and Reporting by Charities (effective January 2016)

have not been met or to which, in my opinion, attention should be drawn in my report in order to enable a proper understanding of the accounts to be reached;

TEDROS FETWI - Independent Examiner

Chartered Certified Accountant

Unit 3 Langdale House 11 Marshalsea Road London United Kingdom SE1 1EN

This report was signed on 25 August 2022

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Holiness Unto The Lord International Church

Statement of Financial Activities (including the Income and Expenditure Account for the year ended 31 December 2021, as required by the Companies Act 2006)

SOR P Ref Income & Endowments from: Donations & Legacies A1 Expenditure on: Raising funds B1 Charitable activities B2 Total expenditure B Net income for the year Net income after transfers A-B- C Net movement in funds Reconciliation of funds:- E Total funds brought forward Total funds carried forward	Current year Current year Unrestricted Funds Restricted Funds 2021 2021 £ £ 165,360 5,095 - - 93,700 5,095 93,700 5,095 71,660 - 71,660 - 71,660 - 249,792 - 321,452 -	Current year Prior Year Total Funds Total Funds 2021 2020 £ £ 170,455 108,016 - 35 98,795 88,832
		98,795 **88,867 **
		71,660 19,149
		71,660 19,149
		71,660 19,149 249,792 230,643
		321,452 **249,792 **

The 'SORP Ref' indicated above is the classification of income set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the Balance Sheet.

A separate Statement of Total Recognised Gains and Losses is not required as this statement includes all recognised gains and losses.

All the prior year transactions were unrestricted items, and no further analysis is required

All activities derive from continuing operations

The notes attached on pages 18 to 28 form an integral part of these accounts.

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Statement of Financial Activities - Prior Year statement SORP Ref Income & Endowments from: Donations & Legacies A1 Total income A Expenditure on: Raising funds B1 Charitable activities B2 Total expenditure B Net gains on investments B4 Net income for the year Transfers between funds C Net income after transfers Net movement in funds Reconciliation of funds:- E Total funds brought forward Total funds carried forward	Prior Year Prior Year Unrestricted Funds Restricted Funds 2020 2020 £ £ 108,016 - 108,016 - 35 - 88,832 - 88,867 - 19,149 - - - 19,149 - 19,149 - 230,643 - 249,792 -	Prior Year Total Funds 2020 £ 108,016
		108,016
		35 88,832
		**88,867 **
		19,149 -
		19,149
		19,149 230,643
		**249,792 **

All activities derive from continuing operations

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Holiness Unto The Lord International Church – Resources applied in the year ended 31 December 2021

Funds generated in the year as detailed in the SOFA Resources applied Net resources available to fund charitable activities	2021 2020 £ £ 71,660 19,149 - -
	71,660 19,149

The resources applied on fixed assets for charity use represents the cost of additions less proceeds of any disposals.

Movements in revenue and capital funds for the year ended 31 December 2021

Revenue accumulated funds

Accumulated funds brought forward Recognised gains and losses before transfers Closing revenue funds Summary of funds Revenue accumulated funds	Unrestricted Restricted Funds Funds 2021 2021 £ £ 249,792 - 71,660 - 321,452 - 321,452 - Unrestricted Restricted and Funds Designated funds 2021 2021 £ £ 321,452 -	Total Last year Funds Total Funds 2021 2020 £ £ 249,792 230,643 71,660 19,149
		321,452 249,792
		321,452 **249,792 **
		Total Last Year Funds Total Funds 2021 2020 £ £
		321,452 249,792

The notes attached on pages 18 to 28 form an integral part of these accounts.

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Holiness Unto The Lord International Church Income and Expenditure Account for the year ended 31 December 2021 as required by the Companies Act 2006

		2021	2020
		£	£
Income
Income from operations		170,455	108,016
Investment income
Gross income in the year before exceptional items		170,455	108,016
Gross income in the year including
exceptional items		170,455	108,016
Expenditure
Charitable expenditure, excluding depreciation and amortisation		95,695	86,932
Fundraising costs		-	35
Governance costs		3,100	1,900
Realised losses on disposals of social investments which are programme related
Total expenditure in the year		98,795	**88,867 **
Net income before tax in the financial year		71,660	19,149
Tax on surplus on ordinary activities		-	-
Net income after tax in the financial year		71,660	19,149
Retained surplus for the financial year		71,660	19,149

All activities derive from continuing operations

In accordance with the provisions of the Companies Act 2006, the headings and subheadings used in the Income and Expenditure account have been adapted to reflect the special nature of the charity's activities.

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Holiness Unto The Lord International Church Balance Sheet as at 31 December 2021

Notes SOR P Ref Current assets B Cash at bank and in hand B4 Creditors: amounts falling due within one year 8 C1 Net current assets The total net assets of the charity	2021 £	2021 £	2020 £	2020 £
	324,644 (3,192)	321,452	253,284 (3,492)	249,792
		321,452		249,792

The total net assets of the charity are funded by the funds of the charity, as follows:-

Unrestricted Revenue Funds 13 D3 Designated Funds Total charity funds	321,452 321,452	249,792
		249,792

The 'SORP Ref' indicated above is the classification of Balance Sheet items as set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the SOFA..

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.

The member has not required the company to obtain an audit in accordance with section 476 of the Act.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The charity is subject to Independent Examination under charity legislation, and the report of the Independent Examiner is on page 11.

The financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.

MEAZA KIDANE

Trustee Approved by the board of trustees on 25 August 2022

The notes on pages 18 to 28 form an integral part of these accounts.

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Holiness Unto The Lord International Church

Notes to the Accounts for the year ended 31 December 2021

1 Accounting policies

Policies relating to the production of the accounts.

Basis of preparation and accounting convention

The accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016) and 'FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015 (as amended by the Bulletin issued in February 2016) published by the Charity Commission in England & Wales (CCEW) ,effective January 2016, (The SORP), and in accordance with all applicable law in the charity's jurisdiction of registration, except that the charity has prepared the financial statements in accordance with the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015 (as amended by the Bulletin issued in February 2016) in preference to the previous SORP, the SORP 2005, which has been withdrawn, notwithstanding the fact that the extant statutory regulations, the Charities (Accounts and Reports) Regulations 2008 refer explicitly to the SORP 2005. This has been done to accord with current best practice.

Policies relating to categories of income and income recognition.

Nature of income

Gross income represents the gross receipts from donations, church collections and gift aid receipts

Categories of Income

Income is categorised as income from exchange transactions (contract income) and income from non-exchange transactions (gifts), investment income and other income.

Income from exchange transactions is received by the charity for goods or services supplied under contract or where entitlement is subject to fulfilling performance related conditions. The income the charity receives is approximately equal in value to the goods or services supplied by the charity to the purchaser.

Income from a non-exchange transaction is where the charity receives value from the donor without providing equal value in exchange, and includes donations of money, goods and services freely given without giving equal value in exchange.

Income recognition

Income, whether from exchange or non-exchange transactions, is recognised in the statement of financial activities (SOFA) on a receivable basis, when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities and only when the charity has legal entitlement, the income is probable and can be measured reliably.

Income subject to terms and conditions which must be met before the charity is entitled to the resources is not recognised until the conditions have been met.

All income is accounted for gross, before deducting any related fees or costs.

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Policies relating to expenditure on goods and services provided to the charity.

Recognition of liabilities and expenditure

A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated..

Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing or the amount of the future expenditure required to settle the obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increases in liabilities, and is decreased by the utilisation of any provision within the period, and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.

Allocating costs to activities

Direct costs that are specifically related to an activity are allocated to that activity. Shared direct costs and support costs are apportioned between activities.

The basis for apportionment, which is consistently applied, and proportionate to the circumstances, is :-

Staffing - on the basis of time spent in connection with any particular activity. Staffing - on a per capita basis, based on the number of people employed within any particular activity. Premises related costs - on the proportion of floor area occupied by a particular activity.

Non-specific support costs - on the basis of the usage of resources, in terms of time taken, capacity used, request made or other measures

Estimation techniques used in apportioning costs - give details

Volunteers

In accordance with the SORP, and in recognition of the difficulties in placing a monetary value on the contribution from volunteers, the contribution of volunteers is not included within the income of the charity.

The Trustees value the significant contribution made to the activities of the charity by unpaid volunteers and this is described more fully in Note4.

Policies relating to assets, liabilities and provisions and other matters.

Fixed Asset Investments

Fixed asset investments in quoted shares, traded bonds, investment properties and similar investments are shown initially at cost upon acquisition and at their market value at the balance sheet date at the end of the financial period. Investment properties are not depreciated.

Fixed asset investments in unlisted equities are shown at the balance sheet date at the best estimate of their market value, where practicable. Where valuation techniques are considered unreliable or where, in the opinion of the trustees, the costs outweigh the benefits to the users of the accounts, the investment is included at cost, and a review is undertaken at each year end as to whether the asset should be written down.

Gains on fixed asset investments, if any, whether realised or unrealised, are included in row B4 of the Statement of Financial Activities.

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Tangible fixed assets

Tangible fixed assets are measured at their original cost value, or subsequent revaluation, or if donated, as described above. Cost value includes all costs expended in bringing the asset into its intended working condition.

Depreciation has been provided at the following rates in order to write off the assets to their anticipated residual value over their estimated useful lives.

Freehold premises	0	% straight line
Leasehold premises	2	% straight line
Plant and machinery	20	% straight line
Motor vehicles	25	% straight line

Debtors

Debtors are measured at their recoverable amounts at the balance sheet date.

Leasing and hire purchase contracts and commitments

Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability.

The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Rentals paid under operating leases are charged to income on a straight line basis over the lease term.

2 Liability to taxation

The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 for UK corporation tax purposes. Accordingly, the Charity 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 on the specific charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities.

3 Winding up or dissolution of the charity

If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.

4 The contribution of volunteers

The charity depends on the support of its volunteers, which is much appreciated. The charity depends on its members who volunteer their valuable time stewarding church events. supporting the weekly church services. The arrangements with volunteers are difficult to value precisely in monetary terms and have not been recognised in the Statement of Financial Activities. The volunteers and the charity accept and agree that no contract of employment is created by these arrangements.

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5 Staff costs and emoluments

Salary costs	2021	2020
	£	£
Gross Salaries excluding trustees and key
management personnel	41,441	36,977
Employer's National Insurance for all staff	1,995	-
Total salaries, wages and related
costs	43,436	36,977
Numbers of full time employees or full time
equivalents	2021	2020
The average number of total staff employed in the year
was	2	2
The average number of part time staff employed in the
year was	1	2
The average number of full time staff employed in the
year was	1	1
The estimated full time equivalent number of all staff employed in
the year was	2	2
The estimated equivalent number of full time staff deployed in	different activities in the year was:-
Engaged on charitable activities	1	1
Engaged on management and administration	1	1
The estimated full time equivalent number of all staff
employed as above	2	2

Neither the trustees nor any persons connected with them have received any remuneration from the charity or any related entity, either in the current or prior year.

No employees received emoluments (excluding pension costs) in excess of £60,000 per annum.

6[Remuneration and payments to Trustees and persons connected ]

with them

No trustees or persons connected with them received any remuneration from the charity, or any related entity.

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7 Tangible fixed assets

Land and Buildings £ Cost At 1 January 2021 - At 31 December 2021 - Depreciation At 1 January 2021 - At 31 December 2021 - Net book value At 31 December 2021 - 8 Creditors: amounts falling due within one year Accruals PAYE, NIC VAT and other taxes	Land and Buildings £ -		Plant & Machinery £ 6,450	Plant & Machinery £ 6,450
	-			6,450 6,450
	-
	-
	-
			2021 £ 1,913 1,279 **3,192 **

9[Loans to trustees included in ] debtors

The charity granted no loan to trustees during the year.

10[Guarantees made by the charity on behalf of ] trustees

The charity did not make any guarantees on behalf of trustees

11 Income and Expenditure account summary At 1 January 2021 Surplus after tax for the year At 31 December 2021	2021 £ 249,792 71,660 **321,452 **	2020 £ 230,643 19,149
		**249,792 **

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12 Particulars of how particular funds are represented by assets and liabilities

At 31 December 2021 Investments at valuation:- Current Assets Current Liabilities At 1 January 2021 Investments at valuation:- Current Assets Current Liabilities	Unrestricted funds £ 324,644 (3,192)	Designated funds £ - - - Designated funds £ - -		Restricted Total funds Funds £ £ - 324,644 - (3,192) - 321,452 Restricted funds £ - - -	Total Funds £ 253,284 (3,492)
	**321,452 **
	Unrestricted funds £ 253,284 (3,492) **249,792 **
		-			**249,792 **

13 Change in total funds over the year as shown in Note 12 , analysed by individual funds

Unrestricted and designated funds:- Unrestricted Revenue Funds Total unrestricted and designated funds Total charity funds	Funds brought forward from 2020 Movement in funds in 2021 See Note 14 £ £ 249,792 71,660 249,792 71,660 249,792 71,660	Transfers between funds in 2021 Funds carried forward to 2022 See Note £ £ - 321,452
		- **321,452 **
		- **321,452 **

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14 Analysis of movements in funds over the year as shown in Note 13

Unrestricted and designated funds:- Unrestricted Revenue Funds Restricted funds:- Funeral funds	Income 2021 £ 165,360 5,095 170,455	Expenditure 2021 £ (93,700) (5,095) (98,795)	Other Gains & Losses 2021 £ - - -	Movement Movement in funds in funds 2021 2021 £ £ 71,660 71,660 - -
				71,660 71,660

The purposes for which the funds as detailed in note 13 are held by the 15 charity are:-

Unrestricted and designated funds:-

Unrestricted Revenue Funds

These funds are held for the meeting the objectives of the charity, and to provide reserves for future activities, and, subject to charity legislation, are free from all restrictions on their use.

Restricted funds:-

16 Ultimate controlling party

The charity is under the control of its legal members.

Every member of the charity is obliged to contribute such amount as may be required not exceeding £10 to the assets of the company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

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Holiness Unto The Lord International Church

Detailed analysis of income and expenditure for the year ended 31 December 2021 as required by the SORP 2015

17 Donations and Legacies

Donations and gifts from individuals Small donations individually less than £1000 Total donations and gifts from individuals Church collection Church Collection from congregation on Sundays Total Church collection Total Donations and Legacies A1 Expenditure on charitable activities Event Expenses Church Service Expenses Total direct spending B2a	Current year Current year Unrestricted Funds Restricted Funds 2021 2021 £ £ 106,872 5,095 106,872 5,095 58,488 - 58,488 - 165,360 5,095 - Direct spending Current year Current year Unrestricted Funds Restricted Funds 2021 2021 £ £ 2,579 5,095 - - 2,579 5,095	Current year Total Funds 2021 £ 111,967 111,967 58,488 58,488 170,455 Current year Total Funds 2021 £ 7,674 - 7,674	Prior Year Total Funds 2020 £ 83,717
			83,717
			24,299
			24,299
			108,016
			Prior Year Total Funds 2020 £ - 210
			210

18 Expenditure on charitable activities - Direct spending

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19 Expenditure on charitable activities- Grant funding of activities

Current year Unrestricted Funds 2021 £ Grants made to organisations 3,939 Total grant making costs B2c 3,939 Breakdown of Grants made to organisations Current year Unrestricted Funds 2021 £ Grants to Ethiopian Embassy for the displaced 1,500 Grants for missionary expenses Addis Ababa 2,439 3,939	Current year Restricted Funds 2021 £ -	Current year Total Funds 2021 £ 3,939	Prior Year Total Funds 2020 £ -
	-	3,939	-
	Current year Restricted Funds 2021 £ - - -	Current year Total Funds 2021 £ 1,500 2,439 3,939	Prior Year Total Funds 2020 £ - -
			-

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20 Support costs for charitable activities

Current year Current year Current year Unrestricted Funds Restricted Funds Total Funds 2021 2021 2021 £ £ £ Employee costs not included in direct costs Salaries - Administrative staff 41,441 - 41,441 Employers' NI - Administrative staff 1,995 - 1,995 Training and welfare - staff - - - Payroll fees and charges 882 - 882 Guest Speaker Costs 2,750 - 2,750 Volunteer costs Missionary Expenses - - - Premises Expenses Rent payable under operating leases 21,352 - 21,352 Church rent 9,000 - 9,000 Administrative overheads Telephone, fax and internet 1,837 - 1,837 Postage 21 - 21 Stationery and printing 81 - 81 Information and publications 589 - 589 Membership subscriptions 129 - 129 Equipment expensed 2,623 - 2,623 Software licences and expenses 95 - 95 Advertising and marketing - - - Sundry expenses 379 - 379 Compliance Costs- Companies House 13 - 13 Financial costs Bank charges 895 - 895 Support costs before reallocation 84,082 - 84,082 Total support costs 84,082 - 84,082 The basis of allocation of costs between activities is described under accounting policies	Current year Restricted Funds 2021 £ - - - - - - - - - - - - - - - - - - -	Current year Total Funds 2021 £ 41,441 1,995 - 882 2,750 - 21,352 9,000 1,837 21 81 589 129 2,623 95 - 379 13 895	Prior Year Total Funds 2020 £ 36,977 - 314 844 1,350 3,039 21,352 16,970 2,672 8 - - - 1,006 - 760 681 13 736
			86,722
			86,722

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21 Other Expenditure - Governance costs Independent Examiner's fees Reporting Accountant fees Total Governance costs 22 Total Charitable expenditure Total direct spending B2a Total grant making costs B2c Total support costs B2d Total Governance costs B2e Total charitable expenditure B2 23 Expenditure on raising funds and costs Cost of DVD's Total fundraising costs B1	Current year Current year Unrestricted Funds Restricted Funds 2021 2021 £ £ 1,900 - 1,200 - 3,100 - Current year Current year Unrestricted Funds Restricted Funds 2021 2021 £ £ 2,579 5,095 3,939 - 84,082 - 3,100 - 93,700 5,095 of investment management Current year Current year Unrestricted Funds Restricted Funds 2021 2021 £ £ - - - -	Current year Restricted Funds 2021 £ - - - Current year Restricted Funds 2021 £ 5,095 - - -	Current year Total Funds 2021 £ 1,900 1,200 3,100 Current year Total Funds 2021 £ 7,674 3,939 84,082 3,100	Prior Year Total Funds 2020 £ 1,900 -
				1,900
				Prior Year Total Funds 2020 £ 210 - 86,722 1,900
		5,095	98,795	**88,832 **
			Current year Total Funds 2021 £ -	Prior Year Total Funds 2020 £ 35
		-	-	35

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