**CHARITY REGISTRATION NUMBER: 1143387** 

# **Victory Church Cwmbran Unaudited Financial Statements** 

**31 March 2022** 

## **ELLIS LLOYD JONES LLP** 

Chartered accountants 11 Park Square Newport South Wales NP20 4EL 



## **Victory Church Cwmbran** 

## **Financial Statements** 

## **Year ended 31 March 2022** 

||**Page**|
|---|---|
|Trustees' annual report|**1**|
|Independent examiner's report to the trustees|**10**|
|Statement of financial activities|**11**|
|Statement of financial position|**12**|
|Notes to the financial statements|**13**|





## **Victory Church Cwmbran** 

## **Trustees' Annual Report** 

## **Year ended 31 March 2022** 

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2022. 

## **Reference and administrative details** 

**Registered charity name** Victory Church Cwmbran **Charity registration number** 1143387 **Principal office** Greenforge Way Cwmbran NP44 3BA Torfaen **The trustees** Mr S Green Mr T Leaman Mr M Sheppard **Independent examiner** Kara Williams BSc BFP FCA 11 Park Square Newport South Wales NP20 4EL 

**- 1 -** 



## **Victory Church Cwmbran** 

**Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **Structure, governance and management** 

The charity was registered as a charity on 16 August 2011. The charity has a legal governing document, to which the Board of Trustees adheres. The Board of Trustees facilitates an annual members' meeting for the Partners. The Partners are people who regularly attend Victory Church or the church plants in the various locations. The Partners give of their time and commit regular financial support to fulfil the ministry of the church. At the annual meeting, Partners are presented with important proposals for their approval. 

The trustees are also responsible for employment matters, risk management and the financial controls for the charity. In practice, much of this work has been delegated to the Senior Leadership Team, therefore the operational matters of the church are delegated to the Senior Leadership Team, which is led by Pastor Clyde Thomas. 

The Board of Trustees meets twice a year to discuss and assess requests and ensure risk management and safeguards are in place to enable the vision of the charity to happen. The trustees give relevant input and support to enable the church to flourish. The Senior Leadership Team meets twice monthly to monitor and report the workings of the church accurately. 

The Senior Leadership Team is made up of: 

Clyde Thomas Richard Reed Martyn Sheppard Rebekah Thomas Sherard Wood Marilyn Harry 

## **Recruitment and appointment of trustees** 

New trustees are recommended to the church Partners by the Senior Leadership Team. Trustees must be a Partner of the church. Once nominated, a trustee will be appointed after approval by the Partners. New trustees are given an information pack prior to their appointment to enable them to understand the duties and responsibilities. Currently, a trustee will remain in their position until resignation; this process is reviewed annually by the Board of Trustees. 

The Senior Leadership Team nominated a third trustee during 2021, and following a partners' meeting, Terence Leaman was duly appointed to the board. 

**- 2 -** 



## **Victory Church Cwmbran** 

## **Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **Risk review** 

The Board of Trustees carries out an annual review of the risks faced by the charity and the procedures established to manage those risks. Internal risks are minimised by the implementation of effective internal control procedures, which ensure both appropriate authorisation of all transactions and projects and consistent quality of delivery for all operational aspects of the charity. These procedures are periodically reviewed for their continuing effectiveness. 

During a periodical review in 2022, the Board of Trustees and the Senior Leadership Team undertook a review of risks to the charity, which they believe to be income, expenditure, staff roles and responsibilities, partner commitment, and unrestricted reserves. It was agreed that partners would continue to be provided with reports showing the unrestricted income, which would inform the partners of the charity's financial status on a regular basis. The monthly reports would also clearly show the actual expenditure for the premises, staffing and the various ministries. It was also agreed that the church would look to grant funding to enable staff recruitment and growth. 

## **Covid-19** 

During the year, we continued to follow the general guidelines of the requirements of the local restrictions but committed to meeting in-person as much as viably possible. The trustees and Senior Leadership Team met to discuss the impact that Covid-19 restrictions could have on the charity and, following communication with the partners, the general support received was very favourable. Income actually increased, with some expenses being reduced, therefore, putting us in a secure position, even in the midst of this unprecedented time. We prayed and thank the Lord for His provision. 

**- 3 -** 



## **Victory Church Cwmbran** 

**Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **Objectives and activities** 

The objectives of the church are for public benefit: - 

 To advance the Christian faith in accordance with the statement of beliefs in such ways and in such parts of the United Kingdom or the world as the trustees from time to time may think fit; 

 To relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind, including the provision of counselling and support in such part of the United Kingdom or the world as the trustees from time to time may think fit; 

- To advance education in such ways and in such parts of the United Kingdom or the world 

- as the trustees from time to time may think fit; and 

- To use the income and may use the capital of the church in promoting the objects. It is 

- the intention to evangelise Wales by church planting. 

The activities of the church include: - 

Sunday services and mid-week services in many locations. There is a Kids' Church, crèche, coffee shop, soft play area and a program for youth and young adults. The church also has a music group that meets weekly and takes an active part in services. The church engages in the community by supporting ex-addicts and ex-offenders. 

The Board of Trustees and the Senior Leadership Team referred to the guidance contained in the general guidance of the Charity Commission on public benefit when reviewing the charity's aims and objectives and in planning future activities. In particular, the Board of Trustees and the Senior Leadership Team considered how planned activities would contribute to the aims and objectives that were set for the charity. 

## **Purposes and Aims** 

The purpose and aim of Victory Church Cwmbran is to bring glory to God and hope to people. We achieve this by providing a varied church programme across multiple locations. We exist to advance the Christian faith and see lives transformed by the gospel of Jesus Christ. 

Christian community is at the heart of what we do. We seek to build an inclusive community for the 21st century, where everyone can find hope and faith for themselves, whilst discovering Biblical truth and values for their lives. Our community is open and accessible to all and centres around the person and work of Jesus Christ. 

## **Ensuring Our Work Delivers Its Aims** 

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aims, objectives and activities remained focused on our stated purposes. 

**- 4 -** 



## **Victory Church Cwmbran** 

**Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **Focus on Our Work** 

Our main objectives for the period continued to be providing a high-quality church presence in the communities where we are planted, with a strong focus on engaging people who do not normally attend church, as well as our own congregation. 

We focused on: 

- releasing teams of people to start new church plants; 

- developing leaders across the life of our church; 

- building a cohesiveness in ministry across sites; 

- supporting our international works in Bulgaria and the Philippines as well as third party works in Uganda; 

- reaching out to the most vulnerable in our communities through extensive daily relief and charitable works; and 

- developing our Supported Housing Ministry which has capacity to house 12 men at any one time. Many of the men supported have found hope and faith and discovered fresh purpose in their lives. 

**- 5 -** 



## **Victory Church Cwmbran** 

**Trustees' Annual Report** _**(continued)**_ 

**Year ended 31 March 2022** 

## **Achievements and performance** 

## **Cwmbran Location** 

Our main central location has been a solid presence in Cwmbran throughout this unprecedented season. Various ministries have operated on a weekly basis around the restricted times of the pandemic. Some of these ministries are detailed below in more detail. On a daily basis, the church continued to serve families through The Ark soft play centre and Cafe Victory. 

We ran Victory Together evenings on a Wednesday to reestablish strong fellowship within the life of the church following the pandemic. We continued to see people make the decision to follow Jesus Christ each week through the Sunday ministry. 

Our online presence was changed in preparation for us to create a new online presence early 2023. We currently upload all services to YouTube. 

## **Chepstow Location** 

Our work in Chepstow was concluded at the end of the financial year, we will shortly be launching in Caldicot, where we will be revitalising a historic Elim Church. 

## **Merthyr Location** 

We stepped into an existing church in Merthyr two years ago, to revitalise and reopen it. The church quickly began to grow and people began to attend from the local area. This growth was stunted with the pandemic but we are pleased to update that we are now in a stronger position with an appointed minister for the location. 

## **Swffryd Location** 

We launched Swffryd, a church reopening in a very deprived area of Wales (Swffryd in Blaenau Gwent). The church has been at the heart of the community for many years but, in recent years, has struggled to keep going. Victory were asked to help revitalise the church and we are pleased to report that now two years in, the Swffryd location continues to develop. We also do a lot of partnership work with Love Wales to address needs in Blaenau Gwent. 

## **International Locations** 

Our ministries in the Philippines and Bulgaria continued and partners in the United Kingdom provided financial support and continuous prayer. The local teams shared the Gospel, reached the lost and supported the most vulnerable spiritually and practically. 

## **Baptisms and Salvations** 

The heart-beat of our ministry is to see lives changed, this is evidenced through salvations and baptisms. Throughout the year, we saw more make a commitment to Christ and many baptised over the period. 

**- 6 -** 



## **Victory Church Cwmbran** 

**Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **Youth Ministry** 

Our Youth Ministry re-launched during the period and Limitless Youth was born. The team are now focusing on both in-house young people and detached youth, bringing a message of hope and faith to a new generation. 

## **Kids' Ministry** 

Our Victory kids' ministry continued to serve children, throughout the year, with Bible teaching, worship and opportunities to learn and grow together. The children took part in Christmas in Cwmbran as well as a special Sunday service in December. During the year, the children learned various topics and enjoyed kids church in The Ark. 

## **Supported Housing** 

During the past year, 26 individuals were supported in the residential homes to help prevent imminent homelessness. Out of the 26 residents, 5 men resettled, 2 married, 6 moved into employment, 4 into higher education, 4 in voluntary work, and 10 continued within the service. Throughout the year, the service continued to work in partnership with external organisations, where possible. Post pandemic, the service had much need to change. This restructuring has allowed the service to make substantial changes to the source of referrals, which has been successful with regards to securing the correct candidates, who satisfy the suitability criteria and who have hopes of better outcomes for the future. 

## **Grocery Store** 

The Leadership identified a huge local need around the community of Torfaen relating to food-poverty. We began planning, in partnership with CBN, for a community grocery store. The community grocery store is a step up from a foodbank, offering local families the opportunity to shop with us and save money on their weekly essentials. The Grocery Store facility was developed throughout the year with the aim to open during the 2022. 

## **Financial review** 

During the year, the charity received income totalling £444,322 (2021: £323,769) and total resources expended amounted to £412,112 (2021: £330,131). Unrestricted income was £206,604 (2021: £145,052) and unrestricted expenditure was £166,896 (2021: £173,816) resulting in an unrestricted net surplus of £39,708 (2021: deficit of £28,764). Restricted income was £237,718 (2021: £178,717) and restricted expenditure was £245,216 (2021: £156,315) resulting in a restricted net deficit of £7,498 (2021: surplus of £22,402). 

At the year end, the charity had unrestricted reserves of £50,953 (2021: £11,245) and restricted reserves of £68,573 (2021: £76,071). This was represented by £104,581 (2021: £68,989) net current assets and fixed assets of £14,945 (2021: £18,327). 

## **Reserves policy** 

The trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets ("the free reserves") held by the charity should be between three and six months of the resources expended.  We are moving toward this aspiration and The trustees are currently looking at ways to increase reserves to enable them to fall within the range as set out above. 

**- 7 -** 



## **Victory Church Cwmbran** 

**Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **Plans for future periods** 

As a church, we would like to see more and more people discover the truth of Jesus' Gospel for themselves. We are intentionally working to reach every human being in the local community by demonstrating the Gospel in everyday life and working practically and spiritually to increase our reach. 

We need to continue to develop our financial support base, to enable us to grow our work and offer more outreach and ministry to people. This is particularly important, as our ethos of ministry is 24/7; and not only limited to designated church services. 

We would like to see every believer equipped for mission in their workplace. We aim to offer a range of ministry in this area over the next period. 

We see the releasing of youth ministry as vitally important and are seeking to release a youth pastor to oversee the youth work. 

During an unprecedented time, Partners changed; the Partners connected and supported the charity to deliver services and outreach support in the various locations. The trustees have worked with the Senior Leadership Team to fulfil the objectives of the charity during the pandemic, as well as ways of ensuring continued income for the charity. 

As detailed in the financial review for the last financial year, the trustees looked at expenditure and identified appropriate reductions. The realignment has enabled the charity to commence rebuilding the balance on unrestricted reserves. 

The trustees believe that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis. 

**- 8 -** 



## **Victory Church Cwmbran** 

**Trustees' Annual Report** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **RESPONSIBILITIES OF THE TRUSTEES** 

The charity's trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and regulations. 

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and the income and expenditure of the charity for that period. 

In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any 

- material departures disclosed and explained in the financial statements; 

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

- presume that the charity will continue in operation. 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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. 

## Nov 3, 2022 

The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by: 

M Sheppard Samuel Green (Nov 3, 2022 11:27 GMT) M Sheppard (Nov 3, 2022 20:32 GMT) Mr S Green Mr M Sheppard Trustee Trustee 

**- 9 -** 



## **Victory Church Cwmbran** 

## **Independent Examiner's Report to the Trustees of Victory Church Cwmbran** 

## **Year ended 31 March 2022** 

I report to the trustees on my examination of the financial statements of Victory Church Cwmbran ('the charity') for the year ended 31 March 2022. 

## **Responsibilities and basis of report** 

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’). 

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. 

## **Independent examiner's statement** 

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies. 

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 

1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or 

2. the financial statements do not accord with those records; or 

3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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. 

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. 

## Kara Williams 

Kara Williams (Nov 3, 2022 20:51 GMT) Kara Williams BSc BFP FCA Independent Examiner 

11 Park Square Newport South Wales NP20 4EL 

**- 10 -** 



## **Victory Church Cwmbran** 

## **Statement of Financial Activities** 

## **Year ended 31 March 2022** 

||||**2022**||2021|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**4**|154,925|237,469|**392,394**|305,972|
|Charitable activities|**5**|–|1|**1**|946|
|Other trading activities|**6**|39,379|–|**39,379**|7,251|
|Other income|**7**|12,300|248|**12,548**|9,600|
|||`──────────`|`──────────`|`──────────`|`──────────`|
|**Total income**||206,604|237,718|**444,322**|323,769|
|||`══════════`|`══════════`|`══════════`|`══════════`|
|**Expenditure**||||||
|Expenditure on charitable activities|**8,9**|166,896|245,216|**412,112**|330,131|
|||`──────────`|`──────────`|`──────────`|`──────────`|
|**Total expenditure**||166,896|245,216|**412,112**|330,131|
|||`══════════`|`══════════`|`══════════`|`══════════`|
|||`──────────`|`──────────`|`──────────`|`──────────`|
|**Net income/(expenditure) and net**||||||
|**movement in funds**||39,708|(7,498)|**32,210**|(6,362)|
|||`══════════`|`══════════`|`══════════`|`══════════`|
|**Reconciliation of funds**||||||
|Total funds brought forward||11,245|76,071|**87,316**|93,678|
|||`──────────`|`──────────`|`──────────`|`──────────`|
|**Total funds carried forward**||50,953|68,573|**119,526**|87,316|
|||`══════════`|`══════════`|`══════════`|`══════════`|



The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 

**The notes on pages 13 to 21 form part of these financial statements.** 

**- 11 -** 



## **Victory Church Cwmbran** 

## **Statement of Financial Position** 

## **31 March 2022** 

|||**2022**||2021|
|---|---|---|---|---|
||**Note**|**£**|**£**|£|
|**Fixed assets**|||||
|Tangible fixed assets|**14**||**14,945**|18,327|
|**Current assets**|||||
|Cash at bank and in hand||**107,130**||72,141|
|**Creditors: amounts falling due within one year**|**15**|**2,549**||3,152|
|||`──────────`||`────────`|
|**Net current assets**|||**104,581**|68,989|
||||`──────────`|`────────`|
|**Total assets less current liabilities**|||**119,526**|87,316|
||||`──────────`|`────────`|
|**Net assets**|||**119,526**|87,316|
||||`══════════`|`════════`|
|**Funds of the charity**|||||
|Restricted funds|||**68,573**|76,071|
|Unrestricted funds|||**50,953**|11,245|
||||`──────────`|`────────`|
|**Total charity funds**|**17**||**119,526**<br>`══════════`|87,316<br>`════════`|



These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by: Nov 3, 2022 

Samuel Green (Nov 3, 2022 11:27 GMT) Mr S Green Trustee 

M Sheppard M Sheppard (Nov 3, 2022 20:32 GMT) Mr M Sheppard Trustee 

**The notes on pages 13 to 21 form part of these financial statements.** 

**- 12 -** 



## **Victory Church Cwmbran** 

## **Notes to the Financial Statements** 

## **Year ended 31 March 2022** 

## **1. General information** 

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Greenforge Way, Cwmbran, NP44 3BA, Torfaen. 

## **2. Statement of compliance** 

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011. 

## **3. Accounting policies** 

## **Basis of preparation** 

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. 

The financial statements are prepared in sterling, which is the functional currency of the entity. 

## **Going concern** 

There are no material uncertainties about the charity's ability to continue. 

## **Fund accounting** 

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. 

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. 

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds. 

## **Incoming resources** 

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: 

- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. 

- legacy income is recognised when receipt is probable and entitlement is established. 

**- 13 -** 



## **Victory Church Cwmbran** 

**Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **3. Accounting policies** _**(continued)**_ 

## **Resources expended** 

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: 

- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. 

- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. 

- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. 

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis. 

## **Tangible assets** 

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. 

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities. 

## **Depreciation** 

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: 

- Fixtures and fittings - 20% reducing balance Motor vehicles - 25% straight line Equipment - 33% straight line 

**- 14 -** 



## **Victory Church Cwmbran** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **3. Accounting policies** _**(continued)**_ 

## **Impairment of fixed assets** 

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. 

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. 

## **Financial instruments** 

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument. 

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs. 

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. 

## **Defined contribution plans** 

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. 

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. 

## **4. Donations and legacies** 

||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2022**|
||£|£|**£**|
|**Donations**||||
|General donations|128,104|211,173|**339,277**|
|Gift aid claimed|21,104|3,535|**24,639**|
|**Grants**||||
|Grants receivable|5,717|22,761|**28,478**|
||`──────────`|`──────────`|`──────────`|
||154,925|237,469|**392,394**|
||`══════════`|`══════════`|`══════════`|



**- 15 -** 



## **Victory Church Cwmbran** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **4. Donations and legacies** _**(continued)**_ 

||||Unrestricted|Restricted|Total Funds|
|---|---|---|---|---|---|
||||Funds|Funds|2021|
||||£|£|£|
||**Donations**|||||
||General donations||93,678|155,905|249,583|
||Gift aid claimed||17,380|–|17,380|
||**Grants**|||||
||Grants receivable||17,143|21,866|39,009|
||||`──────────`|<br>`──────────`|`──────────`|
||||128,201|177,771|305,972|
||||`══════════`|<br>`══════════`|`══════════`|
|**5.**|**Charitable activities**|||||
|||Restricted|**Total Funds**|Restricted|Total Funds|
|||Funds|**2022**|Funds|2021|
|||£|**£**|£|£|
||Victory Academy|1|**1**|946|946|
|||`════`|<br>`════`|<br>`════`|`════`|
|**6.**|**Other trading activities**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2022**|Funds|2021|
|||£|**£**|£|£|
||Income from The Ark|17,610|**17,610**|94|94|
||Coffee shop income|21,364|**21,364**|6,926|6,926|
||Gift shop income|405|**405**|231|231|
|||`────────`|<br>`────────`|<br>`───────`|`───────`|
|||39,379|**39,379**|7,251|7,251|
|||`════════`|<br>`════════`|<br>`═══════`|`═══════`|
|**7.**|**Other income**|||||
||||Unrestricted|Restricted|**Total Funds**|
||||Funds|Funds|**2022**|
||||£|£|**£**|
||Rental Income||12,300|248|**12,548**|
||||`════════`|<br>`════`|`════════`|
||||Unrestricted|Restricted|Total Funds|
||||Funds|Funds|2021|
||||£|£|£|
||Rental Income||9,600|–|9,600|
||||`═══════`|<br>`════`|`═══════`|



**- 16 -** 



## **Victory Church Cwmbran** 

**Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **8. Expenditure on charitable activities by fund type** 

||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2022**|
||£|£|**£**|
|Church and Campus|130,336|36,651|**166,987**|
|Outreach, missions and other ministries|–|207,506|**207,506**|
|Coffee shop and others|33,538|1,059|**34,597**|
|Support costs|3,022|–|**3,022**|
||`──────────`|`──────────`|`──────────`|
||166,896|245,216|**412,112**|
||`══════════`|`══════════`|`══════════`|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2021|
||£|£|£|
|Church and Campus|156,699|23,312|180,011|
|Outreach, missions and other ministries|–|131,477|131,477|
|Coffee shop and others|14,025|1,325|15,350|
|Support costs|3,092|201|3,293|
||`──────────`|`──────────`|`──────────`|
||173,816|156,315|330,131|
||`══════════`|`══════════`|`══════════`|



## **9. Expenditure on charitable activities by activity type** 

|||Activities||||
|---|---|---|---|---|---|
|||undertaken|Support|**Total funds**|Total fund|
|||directly|costs|**2022**|2021|
|||£|£|**£**|£|
||Church and Campus|166,987|–|**166,987**|180,011|
||Outreach, missions and other|||||
||ministries|207,506|–|**207,506**|131,477|
||Coffee shop and others|34,598|–|**34,598**|15,350|
||Governance costs|–|3,021|**3,021**|3,293|
|||`──────────`|`───────`|`──────────`|`──────────`|
|||409,091|3,021|**412,112**|330,131|
|||`══════════`|`═══════`|`══════════`|`══════════`|
|**10.**|**Net income/(expenditure)**|||||
||Net income/(expenditure) is stated after charging/(crediting):|||||
|||||**2022**|2021|
|||||**£**|£|
||Depreciation of tangible fixed assets|||**4,228**|5,314|
|||||`═══════`|`═══════`|
|**11.**|**Independent examination fees**|||||
|||||**2022**|2021|
|||||**£**|£|
||Fees payable to the independent examiner for:|||||
||Independent examination of the financial statements|||**2,765**|2,990|
|||||`═══════`|`═══════`|



**- 17 -** 



## **Victory Church Cwmbran** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **12. Staff costs** 

The total staff costs and employee benefits for the reporting period are analysed as follows: 

|follows:|||
|---|---|---|
||**2022**|2021|
||**£**|£|
|Wages and salaries|**95,111**|100,567|
|Social security costs|**4,734**|4,857|
|Employer contributions to pension plans|**4,342**|4,410|
||`──────────`|`──────────`|
||**104,187**|109,834|
||`══════════`|`══════════`|



The average head count of employees during the year was 6 (2021: 6). 

No employee received employee benefits of more than £60,000 during the year (2021: Nil). 

## **13. Trustee remuneration and expenses** 

No remuneration or other benefits from employment with the charity or a related entity were received by the trustees. 

No trustees claimed expenses or had their expenses met by the charity during the year. 

## **14. Tangible fixed assets** 

||Fixtures and|Motor|||
|---|---|---|---|---|
||fittings|vehicles|Equipment|**Total**|
||£|£|£|**£**|
|**Cost**|||||
|At 1 April 2021|49,533|1,200|32,151|**82,884**|
|Additions|846|–|–|**846**|
||`────────`|`───────`|`────────`|`────────`|
|**At 31 March 2022**|50,379|1,200|32,151|**83,730**|
||`════════`|`═══════`|`════════`|`════════`|
|**Depreciation**|||||
|At 1 April 2021|34,229|1,200|29,128|**64,557**|
|Charge for the year|3,230|–|998|**4,228**|
||`────────`|`───────`|`────────`|`────────`|
|**At 31 March 2022**|37,459|1,200|30,126|**68,785**|
||`════════`|`═══════`|`════════`|`════════`|
|**Carrying amount**|||||
|**At 31 March 2022**|12,920|–|2,025|**14,945**|
||`════════`|`═══════`|`════════`|`════════`|
|At 31 March 2021|15,304|–|3,023|18,327|
||`════════`|`═══════`|`════════`|`════════`|



## **15. Creditors: amounts falling due within one year** 

||**2022**|2021|
|---|---|---|
||**£**|£|
|Accruals and deferred income|**2,400**|2,400|
|Sundry creditors|**149**|752|
||`───────`|`───────`|
||**2,549**|3,152|
||`═══════`|`═══════`|



**- 18 -** 



## **Victory Church Cwmbran** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **16. Pensions and other post retirement benefits** 

## **Defined contribution plans** 

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £4,342 (2021: £4,410). 

## **17. Analysis of charitable funds** 

## **Unrestricted funds** 

|**Unrestricted funds**|||||
|---|---|---|---|---|
||At|||**At 31**|
||1 April 2021|Income|Expenditure|**March 2022**|
||£|£|£|**£**|
|General funds|11,245|206,604|(166,896)|<br>**50,953**|
||`════════`|`══════════`|<br>`══════════`|`════════`|
||At|||At 31|
||1 April 2020|Income|Expenditure|March 2021|
||£|£|£|£|
|General funds|40,009|145,052|(173,816)|<br>11,245|
||`════════`|`══════════`|<br>`══════════`|`════════`|
|**Restricted funds**|||||
||At|||**At 31**|
||1 April 2021|Income|Expenditure|**March 2022**|
||£|£|£|**£**|
|Missions|28,621|44,680|(47,188)|<br>**26,113**|
|Youth Development Fund|3,428|4,095|(4,584)|<br>**2,939**|
|The Ark capital fund|5,299|–|(1,060)|<br>**4,239**|
|Campus and church planting fund|12,493|23,662|(25,922)|<br>**10,233**|
|Supported housing fund|11,601|113,102|(123,558)|<br>**1,145**|
|Restricted donations|190|–|–|**190**|
|Helping Hands food bank|841|1,648|(1,248)|<br>**1,241**|
|Vision Appeal|2,684|5,093|(4,429)|<br>**3,348**|
|Mission Appeal|1,372|13,937|(12,486)|<br>**2,823**|
|Academy Fund|1,514|1|–|**1,515**|
|External Grant Funding|8,028|31,500|(24,741)|<br>**14,787**|
||`────────`|`──────────`|<br>`──────────`|`────────`|
||76,071|237,718|(245,216)|<br>**68,573**|
||`════════`|`══════════`|<br>`══════════`|`════════`|
||At|||At 31|
||1 April 2020|Income|Expenditure|March 2021|
||£|£|£|£|
|Missions|13,171|28,547|(13,097)|<br>28,621|
|Youth Development Fund|1,819|1,609|–|3,428|
|The Ark capital fund|6,624|–|(1,325)|<br>5,299|
|Campus and church planting fund|8,775|16,960|(13,242)|<br>12,493|
|Supported housing fund|13,210|105,875|(107,484)|<br>11,601|
|Restricted donations|190|–|–|190|



**- 19 -** 



## **Victory Church Cwmbran** 

**Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **17. Analysis of charitable funds** _**(continued)**_ 

|Helping Hands food bank|222|2,512|(1,893)|841|
|---|---|---|---|---|
|Vision Appeal|6,684|2,250|(6,250)|2,684|
|Mission Appeal|1,315|2,517|(2,460)|1,372|
|Academy Fund|843|946|(275)|1,514|
|External Grant Funding|816|17,501|(10,289)|8,028|
||`────────`|`──────────`|`──────────`|`────────`|
||53,669|178,717|(156,315)|76,071|
||`════════`|`══════════`|`══════════`|`════════`|



Restricted funds are as follows: 

Missions - to support international missions work of Victory Church Philippines, Victory Church Sofia and other ministries in Uganda, Romania and USA. 

Youth Development Fund (also called Victory Academy) - to provide a theology and leadership programme. 

The Ark capital fund - relates to donations received to purchase capital equipment for The Ark Play Centre 

Campus and church planting fund - to provide funds to plant new Churches in different areas 

Supported housing fund - to provide housing and a support package for males transitioning from homelessness or rehabilitation. 

Restricted donations - from time to time, donations are given to the church with a specific purpose. These are then spent in accordance with the donor's wishes 

Helping Hands - to provide food hampers for the most needy families during the Christmas period. 

Vision Appeal - to support the vision of the church to multiply the ministry in more communities. 

Mission Appeal - to support the local and international outreach ministry. 

Academy Fund - Victory Church Academy is a theology and leadership training programme. Students enroll for the academic course which runs from September to July. 

External Grant Fund - to upgrade electrics and restroom facilities. In addition to this to fund new media equipment to deliver online services. Grants have been received from various providers in order to fund this project. 

**- 20 -** 



## **Victory Church Cwmbran** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year ended 31 March 2022** 

## **18. Analysis of net assets between funds** 

||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2022**|
||£|£|**£**|
|Tangible fixed assets|6,906|8,039|**14,945**|
|Current assets|46,596|60,534|**107,130**|
|Creditors less than 1 year|(2,549)|–|**(2,549)**|
||`────────`|`────────`|`──────────`|
|**Net assets**|50,953|68,573|**119,526**|
||`════════`|`════════`|`══════════`|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2021|
||£|£|£|
|Tangible fixed assets|8,747|9,580|18,327|
|Current assets|12,969|59,172|72,141|
|Creditors less than 1 year|(3,152)|–|(3,152)|
||`────────`|`────────`|`────────`|
|**Net assets**|18,564|68,752|87,316|
||`════════`|`════════`|`════════`|



## **19. Operating lease commitments** 

The total future minimum lease payments under non-cancellable operating leases are as follows: 

||**2022**|2021|
|---|---|---|
||**£**|£|
|Not later than 1 year|**48,840**|38,740|
|Later than 1 year and not later than 5 years|**82,970**|120,610|
||`──────────`|`──────────`|
||**131,810**|159,350|
||`══════════`|`══════════`|



## **20. Related parties** 

The total amount of donations received from trustees without conditions, during the year, was £11,672 (2021: £7,330). 

The charity leased properties owned or controlled by trustees during the year.  £25,000 (2021: £25,000) was paid to Mr M Sheppard, trustee, in relation to rental properties. 

Purchases of £29,043 were made with companies controlled by trustees during 2022 (2021: £461). 

During the year a rent review was undertaken on properties which are rented by the charity. Mr M Sheppard has an interest in these properties and the charity feel it is only fair to ensure that, not only is a reasonable rate paid by the charity but, Mr M Sheppard's personal interests are protected. 

**- 21 -**