**REGISTERED CHARITY NUMBER: 1144463**
## Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 May 2023
for
## FreshFire Trust
Daniel Sam Limited Chartered Accountants
61 Plodder Lane Farnworth Bolton BL4 0BX
FreshFire Trust
Contents of the Financial Statements for the Year Ended 31 May 2023
||Page|
|---|---|
|Report of the Trustees|1 to 3|
|Independent Examiner's Report|4|
|Statement of Financial Activities|5|
|Balance Sheet|6|
|Notes to the Financial Statements|7 to 11|
|Detailed Statement of Financial Activities|12 to 13|
FreshFire Trust
## Report of the Trustees for the Year Ended 31 May 2023
The trustees present their report with the financial statements of the charity for the year ended 31 May 2023. The trustees have adopted the provisions of 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).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The objectives of the charity are to advance the Christian faith for the benefit of the public in accordance with the doctrines outlined in the Apostle's Creed, that is belief in/of/that:
- God, the Father Almighty, creator of heaven and earth.
- Jesus Christ, His only son, our Lord.
- Jesus Christ was conceived by the power of the Holy Spirit and born of the Virgin Mary.
- Jesus Christ suffered under Pontius Pilate, was crucified, died and was buried.
- Jesus Christ descended to the dead and on the third day he rose again.
- Jesus Christ ascended into heaven and is seated at the right hand of the Father.
- Jesus Christ will come again to judge the living and the dead.
- The Holy Spirit.
- The Holy Catholic Church, the communion of saints.
- The forgiveness of sins.
- The resurrection of the body.
- Life everlasting.
## **Public benefit**
Throughout the year the trustees have paid due regard to the Charity Commission's guidance on public benefit and, in particular, the specific guidance provided to charities for the advancement of religion.
The trustees are satisfied that the information provided in the report and accounts meets the public benefit reporting requirements.
## **Staff and Volunteers**
During this year the charity paid for the services of three people on a freelance basis:
- The Visionary Leader of the FreshFire Network is paid for his services to complete 25 hours of work per week..
- The Restoration Centre Leader is paid for 20 hours per week.
The charity has also employed another 5 staff members on part-time contracts to complete various duties to deliver the day to day operations of the charity.
All other areas of the charity are essentially filled by volunteers without whom the charity could not function.
## **ACHIEVEMENT AND PERFORMANCE**
## **Charitable activities**
FreshFire Church is a vibrant community of people that is socially and ethnically diverse, and aims to be actively involved in the local communities of all current and future churches. We do this through connecting with the local people and developing various departments such as activities for children, teenagers and young adults, as well as weekly "Connect" groups suitable for all ages from 13 years old and training, mentoring and development services.
We currently have our FreshFire Church Campus and Charity Head Quarter in Greater Manchester, UK. The campus has a congregation of 100 people and the charity is also linked with an independent FreshFire Church in Kathmandu, Nepal which has 2 churches based in the city and an orphanage which currently houses 8 children and plans to house more in the near future. We support the church by sending our UK team to Kathmandu to provide teaching and training to their leadership teams. We also offer financial support to the church leaders and the UK Papas House team fundraises in order to support the work of the orphanage.
Restoration Centre is our healing and deliverance ministry which is committed to seeing people restored to their God given identity and purpose through the life changing power of the Father's Love.
Page 1
FreshFire Trust
## Report of the Trustees for the Year Ended 31 May 2023
## **FINANCIAL REVIEW**
## **Financial position**
The results of the charity for the year are set out in the attached financial statements.
## **Reserves policy**
The charity aims to hold reserves equivalent to three months' salary costs plus overheads at any one time. This would cover the charity in the event of unforeseen expenditure.
During this year, reserves have dropped below the target levels and since the end of this financial year, the trustees have been implementing changes to reduce costs and raise additional reserve funds from within the church congregation.
## **FUTURE PLANS**
We are currently looking at expanding the network launching further churches and restoration centres around the UK. In order to do this we are planning on moving our headquarters and Stockport Campus into a larger property in the near future.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
## **Recruitment and appointment of new trustees**
The trustees, as named within this report, have served throughout the period.
New trustees are chosen by invitation in order that the charity may have representation from a wide range of agencies. We match our skill requirements with knowledge and experience and where there are gaps we offer appropriate training.
## **Organisational structure**
The trustees make strategic decisions based on the financial position of the charity, however they do not carry out the routine day to day management of the churches or other ministries.
## **Induction and training of new trustees**
There are informal policies and procedures for the induction and training of new trustees. All of our trustees are inducted according to individual requirements.
A copy of the charity's trust deed is supplied along with the charity's policies and procedures and copies of recent board meeting minutes and accounts. Individual trustee's roles/responsibilities are negotiated with all the trustees so that their roles complement each other.
## **Risk management**
The executive team conducts an on-going review of major risks as part of its regular monitoring and reporting. Internal risks are minimised by the implementation of procedures in regard to Good Practice Child Protection Policies, Fire Safety and Health and safety inspections where the Charity's activities operate. Financial risks are minimised by the implementation of procedures for the authorisation of all transactions by the team and reviews on a regular basis.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number**
1144463
## **Principal address**
1st Floor, 107 Lees Road Oldham OL4 1JW
## **Trustees**
R Graves B Tan Panza J Elliott ACA FMAAT M J Elliott L M Osondu
Page 2
FreshFire Trust
Report of the Trustees for the Year Ended 31 May 2023
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Independent Examiner** Gracian Daniel-Sam ACA Daniel Sam Limited Chartered Accountants 61 Plodder Lane Farnworth Bolton BL4 0BX Approved by order of the board of trustees on ............................................... and signed on its behalf by:
........................................................................ R Graves - Trustee
Page 3
Independent Examiner's Report to the Trustees of FreshFire Trust
## **Independent examiner's report to the trustees of FreshFire Trust**
I report to the charity trustees on my examination of the accounts of FreshFire Trust (the Trust) for the year ended 31 May 2023.
## **Responsibilities and basis of report**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
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 Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or
3. the accounts 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.
Gracian Daniel-Sam ACA Daniel Sam Limited Chartered Accountants 61 Plodder Lane Farnworth Bolton BL4 0BX
Date: .............................................
Page 4
FreshFire Trust
## Statement of Financial Activities
## for the Year Ended 31 May 2023
|Unrestricted
**INCOME AND ENDOWMENTS FROM**
Notes
fund
£
Donations and legacies
119,470
Other trading activities
2
6,291
Investment income
3
18
**Total**
125,779
**EXPENDITURE ON**
Raising funds
393
**Charitable activities**
Mission
153,335
**Total**
153,728
**NET INCOME/(EXPENDITURE)**
(27,949)
**Transfers between funds**
10
-
**Net movement in funds**
(27,949)
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
30,257
**TOTAL FUNDS CARRIED FORWARD**
2,308|Restricted
fund
£
56,874
520
-
57,394
21
55,359
55,380
2,014
-
2,014
2,878
4,892|31.5.23
Total
31.5.22
Total
funds
£
funds
£
176,344
123,094
6,811
8,826
18
8
183,173
131,928
414
1,085
208,694
248,720
209,108
249,805
(25,935)
(117,877)
-
-
(25,935)
(117,877)
33,135
151,012
7,200
33,135|
|---|---|---|
The notes form part of these financial statements
Page 5
FreshFire Trust
|Balance Sheet
31 May 2023
Unrestricted
Notes
fund
£
**FIXED ASSETS**
Tangible assets
7
2,574
**CURRENT ASSETS**
Debtors
8
3,313
Prepayments and accrued income
1,374
Cash at bank
-
4,687
**CREDITORS**
Amounts falling due within one year
9
(4,953)
**NET CURRENT ASSETS**
(266)
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
2,308
**NET ASSETS**
2,308
**FUNDS**
10
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Restricted
fund
£
-
-
-
4,892
4,892
-
4,892
4,892
4,892|31.5.23
Total
funds
£
2,574
3,313
1,374
4,892
9,579
(4,953)
4,626
7,200
7,200
2,308
4,892
7,200|31.5.22
Total
funds
£
5,302
21,007
-
13,211
34,218
(6,385)
27,833
33,135
33,135
30,257
2,878
33,135|
|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on
. ............................................ and were signed on its behalf by:
............................................. R Graves - Trustee
............................................. J Elliott ACA FMAAT - Trustee
The notes form part of these financial statements
Page 6
FreshFire Trust
Notes to the Financial Statements
for the Year Ended 31 May 2023
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, 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 Charities Act 2011. 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.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment - 25% on cost
## **Taxation**
The charity is exempt from 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**
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
## **Pension costs and other post-retirement benefits**
The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
continued...
Page 7
FreshFire Trust
## Notes to the Financial Statements - continued for the Year Ended 31 May 2023
## **2. OTHER TRADING ACTIVITIES**
**----- Start of picture text -----**
||||
|---|---|---|
|31.5.23|31.5.22|
|£|£|
|Sale of resources|6,811|8,826|
|3.|INVESTMENT INCOME|
|31.5.23|31.5.22|
|£|£|
|Bank interest received|18|8|
|4.|TRUSTEES' REMUNERATION AND BENEFITS|
|31.5.23|31.5.22|
|£|£|
|Trustees' salaries|10,054|10,448|
|Trustees' pension contributions to money purchase schemes|80 118|
|10,134|10,566|
**----- End of picture text -----**
The above remuneration is in respect of Leona Osondu in her role as UK co-ordinator of Papa's House and not in her role as a trustee.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 May 2023 nor for the year ended 31 May 2022.
## **5. STAFF COSTS**
The average monthly number of employees during the year was as follows:
**----- Start of picture text -----**
||||
|---|---|---|
|31.5.23|31.5.22|
|Outreach|6|6|
**----- End of picture text -----**
No employees received emoluments in excess of £60,000.
## **6. INDEPENDENT EXAMINER'S REMUNERATION**
The amount payable to the Independent Examiner for carrying out the independent examination of the accounts is £960 (2022: £960).
continued...
Page 8
FreshFire Trust
## Notes to the Financial Statements - continued for the Year Ended 31 May 2023
## **7. TANGIBLE FIXED ASSETS**
|**COST**
At 1 June 2022 and 31 May 2023
**DEPRECIATION**
At 1 June 2022
Charge for year
At 31 May 2023
**NET BOOK VALUE**
At 31 May 2023
At 31 May 2022
**8.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Other debtors
**9.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Taxation and social security
Amount owed to restricted funds
Other creditors
**10.**
**MOVEMENT IN FUNDS**
Net
movement
**Unrestricted funds**
At 1.6.22
£
in funds
£
General fund
30,257
(27,949)
**Restricted funds**
Papa’s House fund
Sacred Space building fund
2,878
-
(1,181)
3,195
**TOTAL FUNDS**
33,135
(25,935)|31.5.23
£
3,313
31.5.23
£
1,793
-
1,850
1,310
4,953
Transfers
between
funds
£
-
-
-
-|Computer
equipment
£
23,803
18,501
2,728
21,229
2,574
5,302
31.5.22
£
21,007
31.5.22
£
3,261
318
-
2,806
6,385
At
31.5.23
£
2,308
1,697
3,195
7,200|
|---|---|---|
continued...
Page 9
FreshFire Trust
## Notes to the Financial Statements - continued for the Year Ended 31 May 2023
## **10. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|Incoming
resources
£
**Unrestricted funds**
General fund
125,779
**Restricted funds**
Papa’s House fund
Sacred Space building fund
27,736
29,658
**TOTAL FUNDS**
183,173
**Comparatives for movement in funds**
At 1.6.21
£
**Unrestricted funds**
General fund
141,813
**Restricted funds**
Papa’s House fund
9,199
**TOTAL FUNDS**
151,012
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
111,236
**Restricted funds**
Papa’s House fund
20,692
**TOTAL FUNDS**
131,928|Incoming
resources
£
125,779
27,736
29,658
183,173|Resources
expended
£
Movement
in funds
£
(153,728)
(27,949)
(28,917)
(26,463)
(1,181)
3,195
(209,108)
(25,935)
Net
movement
At
in funds
£
31.5.22
£
(111,556)
30,257
(6,321)
2,878
(117,877)
33,135
Resources
expended
£
Movement
in funds
£
(222,792)
(111,556)
(27,013)
(6,321)
(249,805)
(117,877)|
|---|---|---|
continued...
Page 10
FreshFire Trust
Notes to the Financial Statements - continued for the Year Ended 31 May 2022
## **10. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
Papa’s House fund
Sacred Space building fund
**TOTAL FUNDS**|At 1.6.21
£
141,813
9,199
-
151,012|Net
movement
Transfers
between
At
in funds
funds
31.5.23
£
£
£
(138,805)
(700)
2,308
(8,202)
3,195
700
-
1,697
3,195
(143,812)
-
7,200|
|---|---|---|
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
**Restricted funds**
Papa’s House fund
Sacred Space building fund
**TOTAL FUNDS**|Incoming
resources
£
237,015
48,428
29,658
315,101|Resources
expended
£
Movement
in funds
£
(375,820)
(138,805)
(56,630)
(26,463)
(8,202)
3,195
(458,913)
(143,812)|
|---|---|---|
## **11. RELATED PARTY DISCLOSURES**
During the period, the related party transactions were as stated below:
The charity paid amounts totalling £47,414 to Glorybound Ltd, a company in which Adam Graves (husband of trustee Rachel Graves) is the sole director and shareholder. The payments were in respect of ministry services and travel expenses. In the prior year, ministry related payments totalling £51,796 were paid to Adam Graves directly on a self-employed basis.
Leona Osondu, a trustee of the charity, received gross wages of £10,054 (2022: £10,448) and employer pension contributions of £80 (2022: £118) in her role as UK co-ordinator of Papa's House (the Nepalese orphanage that the charity supports).
Beylai Tan Panza, a trustee of the charity, received a £500 birthday gift from the charity.
The charity provided funds, in the form of a loan, of £26,463 to FFT Trading Limited, a company in which trustees Rachel Graves and Joanne Elliott are the directors. There is an intended trust relationship whereby the directors should act on the direction of the trustees of this charity. These funds were made available from the charity’s ‘Sacred Space’ building fund to contribute to the costs of new leased premises and the associated refurbishment works. This loan has been fully impaired as at 31 May 2023 on the basis that FFT Trading Limited is experiencing difficulties with the lease.
There are no other related party transactions which require disclosure in the accounts.
Page 11
FreshFire Trust
## Detailed Statement of Financial Activities
## for the Year Ended 31 May 2023
|Detailed Statement of Financial Activities
for the Year Ended 31 May 2023|||
|---|---|---|
||31.5.23|31.5.22|
||£|£|
|**INCOME AND ENDOWMENTS**|||
|**Donations and legacies**|||
|Tithes and offerings|80,417|71,145|
|Donations|76,426|30,942|
|Gift aid|19,501|21,007|
|**Other trading activities**|176,344|123,094|
|Other income|6,811|8,826|
|**Investment income**|||
|Bank interest received|18|8|
|**Total incoming resources**|183,173|131,928|
|**EXPENDITURE**|||
|**Other trading activities**|||
|Purchases|414
|1,085|
|**Charitable activities**|||
|Trustees' salaries|10,054|10,448|
|Trustees' pension contributions|80|118|
|Wages|30,803|41,650|
|Pensions|47|151|
|Hire of plant and machinery|613|748|
|Rent|12,149|44,014|
|Insurance|874|844|
|Rates and water|676|-|
|Telephone|438|403|
|Advertising|1,710|2,722|
|Freelance consultants|63,328|72,384|
|IT maintenance|5,199|8,023|
|Outreach and sponsorship|14,193|5,906|
|Travel and subsistence|1,858|14,210|
|Worship|249|448|
|Conferences and training|4,148|7,561|
|Hospitality|64|473|
|Visiting minister honorariums|967|4,138|
|Office running costs|2,134|2,475|
|Depreciation of tangible fixed assets|2,728|3,316|
|Impairment of loan|26,463|-|
|Grants to institutions|27,295|25,471|
||206,484|245,503|
|**Support costs**|||
|**Finance**|||
|Bank charges|1,363|639|
This page does not form part of the statutory financial statements
Page 12
FreshFire Trust
|Detailed Statement of Financial Activities|||
|---|---|---|
|for the Year Ended 31 May 2023|||
||31.5.23|31.5.22|
||£|£|
|**Finance**|||
|**Governance costs**|||
|Accountancy and legal fees|1,261|2,578|
|Total resources expended|209,108|249,805|
|**Net (expenditure)/income**|(25,935)|(117,877)|
This page does not form part of the statutory financial statements
Page 13