## Reading Family Church
Report and Accounts Year ended 31 December 2022
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **Reading Family Church**
## **COMPANY INFORMATION**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Trustees**||S E P Green|||
|---|---|---|---|---|
|||P J Harley (appointed May 2022)|||
|||M Abdul (appointed May 2022)|||
|||P I Chigada (appointed May||2022)|
|||M D Blake|||
|||N Davidson|||
|||J R Davis|||
|**Company Secretary**||N Davidson|||
|**Key Management**||S Green|||
|||I Anderson (until 30 Sept 2022)|||
|||S Taylor|||
|||L Green|||
|||T Riches (from 01 March 2022)|||
|||S Raheja|||
|**Governing Document**||Memorandum and Articles of Association dated 16th|||
|||April 2012|||
|**Company Registration Number**||08039827|||
|**Charity Registration Number**||1147465|||
|**Principal Address & Registered**|**Office**|448a Basingstoke Road|||
|||Reading|||
|||RG2 0RX|||
|**Independent Examiner**||Sarah Crispin ACA|||
|||Stewardship|||
|||1 Lamb's Passage|||
|||London|||
|||EC1Y 8AB|||
|**Bankers**|||||
|HSBC plc|Shawbrook Bank Ltd||Nationwide Building Society||
|26 Broad Street|Lutea House||Kings Park Road||
|Reading|Warley Business Park||Moulton Park||
|RG1 2BU|The Drive, Great Warley||Northampton||
||Brentwood||NN3 6NW||
||CM13 3BE||||
|**Solicitors**|||||
|Clifton Ingram LLP|||||
|22-24 Broad Street|||||
|Wokingham|||||
|RG40 1BA|||||
|**Contents**||||**Page**|
|Company Information||||1|
|Trustees' Annual Report||||2-8|
|Independent Examiner's Report||||9|
|Statement of Financial Activities||||10|
|Balance Sheet||||11|
|Cashflow Statement||||12|
|Notes to the Accounts||||13-20|
|Detailed Statement of Financial Activities with Comparatives||||21|
Page 1
**REPORT OF THE TRUSTEES for the Year Ended 31 December 2022**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. 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 2022).
## **OBJECTIVES AND ACTIVITIES**
## _**Objectives**_
Reading Family Church’s vision is ‘To be a growing, Jesus-centred community, bringing God’s Kingdom to Reading and beyond’.
The charity’s objectives, as set out in its Memorandum and Articles of Association, for the public benefit are: -
- to advance the Christian faith, in accordance with its Statement of Beliefs, in Berkshire and in some other parts of the United Kingdom and the world as the trustees may from time to time think fit;
- the prevention or relief of poverty in Berkshire and in some other parts of the United Kingdom and the world as the trustees may from time to time think fit; and
- to fulfill other purposes which are exclusively charitable according to the law of England and Wales, and are connected to the charitable work of the Charity as the trustees may from time to time think fit.
This report aims to clearly demonstrate the public benefit that Reading Family Church continues to provide to the town of Reading and beyond; that it has achieved its aims and objectives (as above); and that the trustees have had regard to the Charity Commission’s public benefit guidance.
## _**Activities**_
We are a vibrant church with a vision to be a growing, Jesus centred community, bringing God’s kingdom to Reading and beyond.
We currently host 2 Sunday services (at a local school) and run outreach and social transformation ministries – Youth, Students, Toddler groups, Schools work, Job Club, Debt Centre, Support groups, as well as courses to address marriage preparation, marriage enhancement, parenting, relationships, bereavement, and more.
The 9am Sunday service continues to be live streamed and whilst almost all of our transformational ministries have restarted in-person some have continued online.
## **ACHIEVEMENTS AND PERFORMANCE**
## _**Services, prayer and worship**_
The number of people attending our Sunday meeting continued to increase throughout the first half of 2022. Consequently, the decision was made to jump to two meetings (starting at 9am and 11.30am) in October 2022. The average monthly attendance for adults and children steadily increased from 342 in January to 414 in June. The jump to two meetings created sufficient space to continue that growth trend, with an average of 508 weekly attendees in November. The peak Sunday of 583 was 20[th] November when we welcomed in new elders and deacons.
The average monthly livestream saw a gradual decline – starting the year at 58 screens and ending the year at 35. From 9[th] October onwards, just the 9am meeting was livestreamed. The average number of screens watching the Sunday meeting by Tuesday lunchtime (in the week following the service) was variable month-on-month but held within a range of approximately 60-90.
Throughout 2022 we continued to hold weekly Sunday evening prayer meetings, as well as termly prayer weeks which included a series of online and in-person gatherings.
Page 2
## _**Children and school’s work**_
In our children’s work we have continued to care for our church children and families in person and have had many new families join us. We have adapted well to two services on a Sunday morning and have successfully recruited new team members. Since we moved to 2 services, we have run 9 children’s groups with a team that included 27 helpers in kids church, 25 in the creche and 7 in Comets (our additional needs group _)._ The average number of children attending our kids groups across the 2 services has been 115.
## _**Reading Family Church Youth**_
The youth ministry at Reading Family Church aims to help young people aged 11-18 grow in the understanding of their faith and what it looks like to live out their faith in their everyday lives, as well as providing a safe space for young people to socialise and build friendships. This was achieved through three activities:
1. Friday sessions during term time;
2. Sunday sessions;
3. Newday.
During 2022 RFC ran regular sessions on a Friday evening and a Sunday morning. The Friday night youth sessions provided young people with a safe space to socialise, build relationships with one another and youth leaders. The Sunday sessions were primarily focused on teaching the bible in easy, accessible ways that enabled young people to apply the Bible’s teaching to their daily lives.
In August 2022, RFC took 30 young people, 7 youth leaders and 4 catering team camping to Newday for 6 days. They had a brilliant time, joining with thousands of other young people across the nation: to worship; hear the Bible taught; and build relationships with each other and God.
RFC’s youth worker resigned in August 2022 and the work has continued to be undertaken by volunteers. It is envisaged that a new youth worker will be employed in the autumn of 2023.
## _**Supporting our congregation and community**_
RFC has a team who provide pastoral support for our congregation and local community. We also have a team who support 30 midweek groups running in homes all over Reading, where attendees can experience a sense of belonging, friendship and spiritual growth that comes from joining a community within the church.
In April 2020 we launched a COVID-19 Hardship Fund to support individuals and families within our church and the local and global community. During 2022 grants were committed to 4 (2021:10) beneficiaries, totalling £12k (2021: £30K). These were the final grants from the COVID-19 Hardship Fund.
## _**Community work**_
There have been a number of staff and locality changes which has affected our provision of services to the local community. Our school’s worker resigned in July 2022 and our existing community worker resigned at the beginning of 2023 meaning that the job club/Friday group will be discontinued
Rainbows toddler group continued meeting twice a week with the Thursday morning group moving location to the church offices in September 2022. An average of 25 (church and non-church) families attended the Thursday morning toddler group. The Monday session continues to run at a local children’s centre and is attended by 8-10 local non-church families.
Job club continued to meet in the community café in Whitley as we continued in our partnership with Whitley Community Development Association. The links with them grew throughout 2022 with members of RFC visiting their café in order to befriend people in the community
RFC’s Friday group also continued and offers a meeting place for those who are lonely and/or on their own. Here we chat, play games and share a light lunch together. The highlight of the year was taking a group to Bournmouth for the day.
Our CAP debt centre continues to flourish providing support and advice to individuals and families who are struggling in debt. On average, we provide support/advice to 4 new clients every month and continued to support an average of 35 clients monthly. In 2022, the team managed to support 7 households (2021:13) get free from debt. Building with our CAP clients, a monthly ladies craft café has been running in the church offices; a safe place to come, be creative and develop friendships.
Chapter 2, a mentoring project for boys without a male role model, continued to grow in 2022. It now has 10 men from RFC actively involved in mentoring. The average number of boys being mentored by RFC attendees in 2022 was 10.
Torch (a helping hand from local churches): in 2022 RFC led the South Reading hub as well as being part of the town wide leadership team. Throughout the year we helped 112 households with varying tasks such as gardening, shopping and befriending.
Page 3
.
## _**Marriage Strengthening & Support**_
## _**Marriage Preparation**_
RFC has had the privilege of supporting four couples in marriage preparation as well as on their wedding day. Various couples in the church facilitated nine sessions looking at aspects of communication, conflict resolution as well as helping couples understand the impact of their families of origin and therefore a greater understanding of expectations and needs in marriage.
## _**Marriage Support**_
In March 2022, a team hosted (with the help of The Southampton Family Trust and Prepare Enrich) a marriage strengthening day for 15 couples in the church. With the aid of an online questionnaire, completed before the event, couples were led through various exercises to develop and strengthen their relationship further. Very positive feedback was received from the event:
_“ Great sessions, good and relevant content, fast paced and clear expectations were set to allow us to anticipate the reports.”_
_“Well organised and well run….lovely environment for the day.”_
_“Time to reflect, safe space, kept light, but great to practice skills which can / will be used again. Very relaxed.”_
## _**Marriage Crisis Support**_
Throughout the year our pastoral and eldership team have been meeting with couples who have been experiencing difficulties in their marriage and who have needed more immediate support. Often this has led to some crisis sessions and then longer-term pastoral support or alternatively signposting to counselling or other support services.
## _**Support of other charities**_
The church has continued to financially support a number of local, national and international charities. These include: _Creating Better Futures:_ a charity based in Reading devoted to helping children and their guardians in the Domboshowa and Mutare regions of Zimbabwe.
_Mercy Central:_ a charity who provide support and services to people facing financial difficulty in the County of Berkshire _Transform Reading:_ a network of churches and Christian organisations working together to see Reading transformed.
Throughout 2022 RFC also partnered with Starting point - Brighter Futures for Children, Cowshed, Readifood, Faith Christian group, Home for Good. Christian Community Action, Commuincare and Reading Refugee Support Group.
## _**Support of overseas Missionaries**_
The church has financially supported individuals who work overseas. These missionaries are engaged in work that either advances the Christian faith or relieves or prevents poverty.
## _**Building purchase**_
RFC has a goal of purchasing a building to function as a home for its church congregation and a hub for the local community. Little progress was made on this during 2022. Funds remain in place for such a time as the economic environment improves and a suitable building is available for purchase.
Page 4
## **FINANCIAL REVIEW**
## _**Financial overview**_
At 31 December 2022, Reading Family Church had total funds of £2.74m (2021: £2.6m), of which £1.16m were available for the general purposes of the charity (2021: £1.04m), £1.58m were designated for future purposes by the trustees (2021: £1.55m) and £81 were restricted (2021: £13,233).
Total income for 2022 was £940,667 (2021: £780,829). This comprised of two key elements:
- £843,002 (2021: £752,248) of unrestricted donations from the attendees of the church and the associated reclaimed gift aid tax. These donations are intended to cover the regular running costs and activities of the church.
- £9,433 (2021: £8,444) which came from donations from the attendees of the church towards the Vision Fund and the associated reclaimed gift aid tax. The fund is a designated fund, intended for future projects in our community such as a building, but has no restriction on its specific use.
Expenditure for the year, was £803,900 (2021: £668,865).
Reading Family Church has acted as an agent for the disbursement of a small number of gifts made by church attendees to other attendees, where they wished for the gift to remain anonymous. As at 31 December 2022 it held a balance of zero (2021: zero).
## _**Reserves Policy**_
Reading Family Church has three types of funds:
- Unrestricted funds which can be used for any purpose and which make up the charity’s general reserves.
- Designated funds which have been set aside by the trustees for a particular purpose and require the trustees’ permission to be used for any other purpose. This includes Reading Family Church’s Vision Fund.
- Restricted funds that are given for a specific purpose and require the permission of the giver or the Charity Commission to use them for any other purpose. Only small proportions of Reading Family Church’s funds are restricted.
The charity needs general reserves as a source of working capital and to cover expenditure in the event of an unexpected decrease in income or other change in circumstances. The trustees have defined the minimum level of reserves permissible as 3 months’ worth of the charity’s operating expenditure. Operating expenditure is defined as all of the charity’s essential costs, and excludes discretionary spend such as voluntary donations to third parties. The rationale for this is to allow Reading Family Church to continue to operate for at least 3 months in the extreme scenario that its income reduces materially over a very short period of time.
At 31 December 2022 the charity’s general reserves were £1.16m. This represented approximately 18 months’ of operating expenditure. The fact that this is significantly higher than our minimum level represents the generosity of the church members throughout the year, as well as the prudent saving over the last 18 months to support the higher operating costs and immediate maintenance required in order to use the planned new building once purchased. These costs have yet to materialise due to complications with the purchase of the current building occupied by RFC, although a future purchase is still part of the church’s strategy. The reserves policy is reviewed on an annual basis by the directors, and the level of reserves held is reviewed monthly as part of the management reporting.
## _**Investment Policy**_
Reading Family Church has a duty to protect its investments, while balancing the rate of return that these investments produce. Currently the charity’s assets are predominately cash, and the majority is for general use or in a designated fund. These funds may be needed at relatively short notice (3-6 months). The following criteria apply to the management of these funds:
- Any investment shall minimise the risk of loss of capital.
- It shall be possible to access the investment of general reserves with a maximum of three months’ notice and longerterm designated funds with a maximum of six months’ notice.
- The rate of return shall be as high as possible, but is secondary to the 2 criteria above.
Any risk associated with holding reserves in deposit accounts shall be minimised. The likelihood of financial institutions
Page 5
failing is low, however the potential impact of such as failure on Reading Family Church could be substantial, and this risk shall be mitigated as much as possible.
On this basis, Reading Family Church shall:
- Only invest in cash deposit accounts that are covered by the FSCS.
- Spread the level of investment over a number of accounts. The number of accounts should be reviewed by the trustees periodically and reflect the relative stability of the financial institutions.
- Only invest in deposit accounts with a notice period of up to six months (more if any penalties for early withdrawals do not impact the capital invested).
- Select cash deposit accounts with a high rate of return wherever possible.
## _**Risk Policies**_
The trustees have a risk management strategy that includes an annual review of the principle risks and uncertainties facing the charity and its subsidiaries and the establishment of policies and procedures to mitigate those risks.
The primary risks and uncertainties were again safeguarding and health and safety (with a focus on keeping staff, volunteers and those attending in-person events safe from COVID-19). These risks are managed by ensuring effective policies and procedures are in place and staff and volunteers are appropriately trained.
## **LOOKING FORWARD TO 2023**
Looking ahead to 2023, the church will continue its vision ‘to be a growing, Jesus-centred community, bringing God’s Kingdom to Reading and beyond’. We will continue preaching biblical truths at Sunday meetings as the primary means of advancing the Christian faith, and continue each of the activities outlined above to bring the prevention or relief of poverty.
Activities will continue in-person, including our two Sunday meetings that now has the provision of a live stream at the 9am meeting (with recording available for later viewing) to support those unable to join in-person.
We will continue to develop our CAP debt centre, and our community based transformational activities. The appointment of a local mission’s co-ordinator at the beginning of 2023 means that our community work will be re-shaped to meet these challenges.
It is envisaged that Mercy Central will be wound down in 2023 with any surplus funds being transferred to RFC. These funds will be for the exclusive use of the CAP debt centre.
In respect of our children’s work, we want to continue to help children grow in their faith and plan to strengthen our team helping children in local schools understand Christian beliefs and values.
We will continue our search to purchase a building to be a home for our church and a hub for the local community.
Page 6
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## _**Governing document**_
Reading Family Church has been in existence for 20 years and was originally planted by Kerith Community Church in Bracknell. The charity is controlled by its governing document, the memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The company was incorporated on 20th April 2012 and commenced trading on 1st September 2012. Prior to that date, Reading Family Church was an unincorporated charity (Charity Registration Number 1090328).
## _**Management**_
Reading Family Church is led by a team of elders, who provide Spiritual Governance, and set the Vision and Strategy of the church. The elders meet to discuss and oversee the affairs of the church and the charity. They work alongside other members of staff and a team of volunteers to implement the vision, goals and objectives of the trust. Currently there are seven elders, three of whom are full time employees of the church, one of whom is a part time employee (resigned as an employee on 21/02/23 but is still an elder) and three (four as of 21/02/23) of whom are volunteers. The trustees have delegated day to day management of the charity to the Senior Pastor.
The increasing number of ministries and activities of the church are led by a team of deacons, some of whom are employed by the charity but most of whom do so on a voluntary basis. The numbers of deacons is 13, each responsible or jointly responsible for running and managing one of the church’s activities that help deliver its public benefit.
## _**Governance**_
There are seven directors (or trustees) who provide the governance of the church. They meet at least three times a year in their role overseeing the financial, legal and employment elements of the church. Sean Green chairs the directors and is the only paid director; he is also an elder of the Church.
The trustees have processes and procedures in place that determine when trustee approval is needed, which includes unbudgeted staff appointments and significant unbudgeted spend, alongside a number of matters reserved for the trustees. A trustee induction process is in place whereby existing trustees support those incoming and external training is offered when necessary.
Specific responsibilities are also delegated to the Salary Committee, a sub-committee of the Board with a membership of 3 individuals, all of whom are also directors. This committee performs an annual pay review, and also sets the pay and remuneration of key management personnel, as well as performing the Senior Pastor’s appraisal. The Senior Pastor is not a member of the Salary Committee.
The elders of the church make recommendations for the appointment of directors. The nominee is then appointed by a resolution of the existing directors and remains in office thereafter. The directors of the charity are drawn primarily from the active members of the church with the appropriate skills for Board membership, and also include one independent member from a different church.
## **Affiliations**
Reading Family Church is a member of the Evangelical Alliance and Transform Reading. The church is also affiliated to Newfrontiers, which is a worldwide family of churches. This affiliation enables the church to help other Christian churches in the UK and abroad. It also provides a support network that allows the church to draw on the experience and expertise of other churches.
## **Responsibilities of trustees under company law**
The trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements, the trustees are required to:
1. select suitable accounting policies and apply them consistently;
2. observe the methods and principles of the Charities SORP
Page 7
3. make judgements and estimates that are reasonable and prudent;
4. state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
5. prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the board of trustees and signed on its behalf by:
## **S E P Green**
S E P Green - Trustee
Date: 9 May 2023
Page 8
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF**
## **Reading Family Church ('the Company')**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2022 on pages 10 to 20 following, which have been prepared on the basis of the accounting policies set out on pages 13 to 14.
## **Responsibilities and basis of report**
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner’s statement**
Since the Company’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 & Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Sarah Crispin**
Sarah Crispin ACA Institute of Chartered Accountants in England & Wales Stewardship 1 Lamb's Passage London EC1Y 8AB
Date: 11 May 2023
Page 9
## **Reading Family Church**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations
3
Charitable activities
4
Investments
5
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities
6
**Total expenditure**
**Net gains/(losses) on investments**
**Net income/(expenditure)**
**Transfers between funds**
16
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
16|Unrestricted
Funds
£
852,434
65,209
22,694
940,337
790,419
790,419
-
149,918
-
149,918
2,592,319
2,742,237|Restricted
Funds
£
330
-
-
330
13,482
13,482
-
(13,152)
-
(13,152)
13,233
81|Total
Funds
2022
£
852,764
65,209
22,694
940,667
803,900
803,900
-
136,766
-
136,766
2,605,552
2,742,318|Total
Funds
2021
£
766,121
3,264
11,444|
|---|---|---|---|---|
|||||780,829|
|||||668,865|
|||||668,865|
|||||-|
|||||111,964
-|
|||||111,964
2,493,588|
|||||2,605,552|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing operations.
The statement of financial activities also complies with the requirements for an income and expenditure account required by the Companies Act 2006.
The notes on page 13-20 form part of these accounts.
Page 10
## **Reading Family Church**
## **BALANCE SHEET**
## **AS AT 31 DECEMBER 2022**
|Note
**FIXED ASSETS**
Tangible assets
10
**CURRENT ASSETS**
Debtors
11
Cash at bank and in hand
12
**CREDITORS: Amounts falling**
**due within one year**
13
**Net current assets / (liabilities)**
**Total assets less current liabilities**
**TOTAL NET ASSETS**
**FUND BALANCES**
16
Unrestricted Funds
General funds
Designated funds
Restricted Funds|Unrestricted
Funds
£
27,814
27,814
74,938
2,669,728
2,744,666
(30,242)
2,714,423
2,742,237
2,742,237
1,160,752
1,581,485
2,742,237
-
2,742,237|Restricted
Funds
£
-
-
-
81
81
-
81
81
81
-
-
-
81
81|Total
Funds
2022
£
27,814
27,814
74,938
2,669,809
2,744,747
(30,242)
2,714,504
2,742,318
2,742,318
1,160,752
1,581,485
2,742,237
81
2,742,318|Total
Funds
2021
£
28,488|
|---|---|---|---|---|
|||||28,488|
|||||45,535
2,561,773|
|||||2,607,308
(30,243)|
|||||2,577,064|
||||||
|||||2,605,552|
|||||2,605,552|
|||||1,038,263
1,554,056|
|||||2,592,319
13,233|
|||||2,605,552|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006 however, in accordance with Section 145 of the Charities Act 2011, the accounts have been examined by an independent examiner and their report has been included in these financial statements.
- The directors (who are the charitable company's trustees for the purposes of charity law) acknowledge their responsibilities
- (a) ensuring that the charitable company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its net income or expenditure for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.
The financial statements were approved by the Board of Directors and were signed on its behalf by:
## **S E P Green**
S E P Green
Date: 9 May 2023
Company number: 08039827
The notes on page 13-20 form part of these accounts.
Charity number: 1147465
Page 11
## **Reading Family Church**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **CASH FLOW STATEMENT**
|Note
**Cash flows from operating activities:**
**_Net cash provided by/(used in) operating activities_**
a
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Purchase of property, plant and equipment
**_Net cash provided by/(used in) investing activities_**
b
b
**Cash and equivalents at the beginning of the year**
**Change in cash and equivalents due to exchange rate movements**
**_Cash and cash equivalents at the end of the year_**
**_Change in cash and equivalents in the reporting period_**|2022
£
91,606
22,694
(6,264)
16,430
108,036
2,561,773
-
2,669,809|2021
£
118,620|
|---|---|---|
|||11,444
(17,137)|
|||(5,693)|
||||
|||112,927
2,448,846
-|
|||2,561,773|
## **Note a: Reconciliation of net income/(expenditure) to net cash flow from operating activities**
|**Adjustments for:**
Depreciation charges and provisions for impairment
Dividends, interest and rents from investments
Loss/(profit) on the sale of fixed assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**_Net cash provided by (used in) operating activities_**
**Note b: Analysis of cash and cash equivalents**
Cash at bank with immediate access
Notice deposits
Petty cash
**Total cash and cash equivalents**
**_Net income/(expenditure) for the reporting period (as per the statement of financial_**
**_activities)_**|2022
£
136,766
5,908
(22,694)
1,029
(29,403)
(1)
91,606
2022
£
622,911
2,046,062
837
2,669,809|2021
£
111,964
10,359
(11,444)
(7,428)
15,169|
|---|---|---|
|||118,620|
|||2021
£
525,251
2,036,103
419|
|||2,561,773|
Page 12
## **Reading Family Church**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1 Statutory Information**
The charity is a charitable company limited by guarantee and is incorporated in the United Kingdom. The company's registered number and registered office address can be found on the Company Information page.
## **2 Accounting Policies**
These financial statements are prepared on a going concern basis, under the historical cost convention.
These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102"), with the Companies Act 2006 and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The principles adopted in the preparation of the financial statements are set out below.
## a) Going concern
The trustees (who are the charitable company's directors for the purposes of company law) have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## b) Income
Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations includes:
Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from conferences and events.
Investment income represents income generated by the charity's assets and includes income from bank interest.
The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.
## c) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
The cost of raising funds is not significant and has not been separately disclosed.
The Charities SORP requires charities with income over £500,000 to allocate costs to the various activities undertaken by the charity. The nature of the work of the church is considered to be so integrated that the core charitable activity costs are considered to be for the one activity.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
Page 13
## **Reading Family Church**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## d) Fund accounting
- General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects.
## e) Tangible fixed assets
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £500 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Equipment Over 3 to 7 years
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
## f) Pension scheme arrangements
The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.
## g) Taxation
The company is a registered charity; it has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
## h) Financial instruments
- The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).
i) Critical accounting estimates and areas of judgement The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.
## **3 Donations**
|**3**
**Donations**|||
|---|---|---|
|Donations of cash and similar
Income tax recoverable
**4**
**Income from charitable activities**
Conferences and events
Fees for seconded staff
**5**
**Investment income**
Bank interest|2022
£
707,084
145,680
852,764
2022
£
15,295
49,914
65,209
2022
£
22,694
22,694|2021
£
647,490
118,631|
|||766,121|
|||2021
£
3,264
-|
|||3,264|
|||2021
£
11,444|
|||11,444|
Page 14
## **Reading Family Church**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **6 Charitable expenditure**
|**6**
**Charitable expenditure**|||
|---|---|---|
|**a**
**Costs incurred directly on specific activities**
Church Ministry
Ministry staff costs
Conferences, courses & events
Premises costs
Grants payable (note 6c)
**b**
**Costs incurred on support & administration**
Governance costs
Independent examiner's fee
Other
Support staff costs
Support costs
Depreciation of tangible fixed assets
**Total expenditure**|2022
£
26,034
355,268
21,336
193,669
596,307
103,032
699,339
5,760
-
5,760
71,571
21,322
5,908
104,561
803,900|2021
£
13,567
281,404
8,109
142,966|
|||446,047
104,796|
|||550,843|
|||3,120
-|
|||3,120
75,700
28,842
10,359|
|||118,021|
|||668,865|
The fee payable to the independent examiner for preparing and examining the accounts was £5,760 (2021: £3,120); in addition the charity paid £1,485 to Stewardship for payroll bureau and consultancy services.
## **c Grants payable**
|Grants for UK and overseas mission
Grants for the relief of poverty
The comparatives for the previous year are as follows:
Grants for UK and overseas mission
Grants for the relief of poverty
The charity's principal grants to institutions comprised:
African Inland Mission
Baptist Missionary Society
Catalyst Network of Churches
Catalyst Oxford Hub
Chapter 2
Cowshed
Creating Better Futures
Godfirst Church
Mercy Central
Reading Refugee Support Group
Starting Point
Torch
Transform Reading
Whitley Community Development Association|Institutions
£
44,000
23,957
67,957
Institutions
£
53,875
11,000
64,875|Individuals
£
35,075
35,075
Individuals
£
38,051
38,051
2022
£
5,000
3,000
5,000
20,000
3,050
2,000
6,060
10,000
-
5,000
5,000
847
1,000
2,000
67,957|2022
£
79,075
23,957|
|---|---|---|---|
||||103,032|
||||2021
£
91,926
11,000|
||||102,926|
||||2021
£
5,000
2,875
5,000
20,000
3,000
3,000
20,000
5,000
1,000|
||||64,875|
Page 15
## **Reading Family Church**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **8 Analysis of staff costs, the cost of key management personnel and trustee remuneration**
|**ysis of staff costs, the cost of key management personnel and trustee remuneration**|||
|---|---|---|
|Gross wages and salaries
Social security
Pension costs
Other employment benefits|2022
£
357,281
28,869
35,044
3,533
424,727|2021
£
290,933
26,344
31,876
3,416|
|||352,569|
The average monthly number of employees during the year was 15.6 (2021: 15.2). Most of the charity's activities are carried out by volunteers. This includes employees seconded to partner organisations. In 2021 the cost of these staff and the fees for their services were netted off and not shown separately in the accounts.
1 member of staff received a salary at a rate of £60,000 - £70,000 per annum.
The charity's key management comprise the trustees and the key staff named on the Company Information page. Total employment benefits payable to key management for the year were as follows:
|Other
Employer
Wages &
employment
pension
salaries
benefits
contributions
Trustees:
Mr S E P Green
60,456
6,021
Key management connected to trustees:
Mrs E J Green (spouse of Mr S E P Green)
31,775
3,153
Other members of key management
115,614
11,446|2022
£
66,477
34,928
127,060|
|---|---|
||228,465|
The following amounts were payable in the previous year:
|following amounts were payable in the previous year:||
|---|---|
|Other
Employer
Wages &
employment
pension
salaries
benefits
contributions
Trustees:
Mr S E P Green
59,451
5,767
Key management connected to trustees:
Mrs E J Green (spouse of Mr S E P Green)
26,840
2,587
Other members of key management
95,497
9,307|2021
£
65,218
29,427
104,804|
||199,449|
Mr S E P Green served as Senior Pastor and received the above payments for serving in that capacity, not for serving as a trustee; these payments are permitted by the charity's governing document.
## **9 Acting as agent**
On occasion the charity receives money on behalf of church members in need, which it banks and then pays out to these individuals. This income is received as agent for these individuals and the income, and the related payments, are excluded from the Statement of Financial Activities; any money that has not been distributed by the year end is recognised as a creditor.
During the year, acting in the capacity of agent, the charity:
- a) received £nil (2021: £6,696) and paid £nil (2021: £6,751)
- b) at the year end the charity owed £nil (2021: £nil)
Page 16
## **Reading Family Church**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **10 Tangible fixed assets**
|Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Accumulated depreciation
At 1 January 2022
Charge for the year
Eliminated on disposal
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021
**11**
**Debtors**
**Falling due within one year:**
Trade debtors
Tax recoverable
Other debtors
Prepayments and accrued income
**12**
**Cash at Bank and in Hand**
Cash at bank with immediate access
Notice deposits
Petty cash
**13**
**Creditors: liabilities falling due within one year**
Taxation and social security
Trade creditors
Other creditors
Accruals
Deferred income|Fixtures,
fittings and
equipment
£
78,398
6,264
(2,049)
82,613
49,911
5,908
(1,020)
54,799
27,814
28,488
2022
£
1,675
13,094
995
59,174
74,938
2022
£
622,911
2,046,062
837
2,669,809
2022
£
15,521
1
11,628
3,092
30,242|Total
2022
£
78,398
6,264
(2,049)|
|---|---|---|
|||82,613|
|||49,911
5,908
(1,020)|
|||54,799|
|||27,814|
|||28,488|
|||2021
£
-
10,626
16,149
18,759|
|||45,535|
|||2021
£
525,251
2,036,103
419|
|||2,561,773|
|||2021
£
-
6,043
23,565
635|
|||30,243|
Page 17
## **Reading Family Church**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **14 Deferred income**
Deferred income comprises the following:
|**Deferred income**
Deferred income comprises the following:|||
|---|---|---|
|Within one year
Balance at the end of the reporting period
Amount deferred in year
The income deferred at the period end will be released to income over the following periods:
Amount released to income
Balance at the beginning of the reporting period|2022
£
635
(635)
3,092
3,092
3,092|2021
£
1,050
(1,050)
635|
|||635|
|||635|
The income deferred at the period end will be released to income over the following periods: Within one year
Deferred income all relates to income received for specific conferences, courses or events.
## **15 Pension commitments**
During the year employer’s pension contributions totalling £35,044 (2021: £31,876) were payable to defined contribution personal pension schemes. £3,006 pension contributions were owing at the balance sheet date (2021: £2,791).
## **16 Funds**
During the year the movements in the charity's funds were as follows:
|_Designated Funds_
Vision Fund
_General Unrestricted Funds_
Total Unrestricted Funds
_Restricted Funds_
Covid 19 Fund
Other restricted funds
Aggregate of funds|Opening
balance
2022
£
1,554,056
1,554,056
1,038,263
2,592,319
12,058
1,175
13,233
2,605,552|Incoming
resources
2022
£
27,429
27,429
912,907
940,337
330
330
940,667|Outgoing
resources
2022
£
-
(790,419)
(790,419)
(12,058)
(1,424)
(13,482)
(803,900)|Transfers
in the year
2022
£
-
-
-
-
-|Gains and
losses
2022
£
-
-
-
-|Closing
balance
2022
£
1,581,485|
|---|---|---|---|---|---|---|
|||||||1,581,485
1,160,752|
|||||||2,742,237|
|||||||-
81|
|||||||81|
|||||||2,742,318|
## **Analysis of net assets by fund**
The assets and liabilities of the various funds were as follows:
|Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year|General
Designated
funds
funds
£
£
27,814
74,938
1,088,243
1,581,485
(30,242)
1,160,752
1,581,485
Unrestricted Funds|Restricted
funds
£
81
81|2022
£
27,814
74,938
2,669,809
(30,242)|
|---|---|---|---|
||||2,742,318|
Page 18
## **Reading Family Church**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
In the previous year the movements in the charity's funds were as follows:
|_Designated Funds_
Vision Fund
_General Unrestricted Funds_
Total Unrestricted Funds
_Restricted Funds_
Church Plant Fund
Covid 19 Fund
Other restricted funds
Aggregate of funds|Opening
balance
2021
£
1,541,669
1,541,669
889,921
2,431,590
22,184
39,308
506
61,998
2,493,588|Incoming
resources
2021
£
16,474
16,474
759,106
775,580
412
2,650
2,187
5,249
780,829|Outgoing
resources
2021
£
(4,087)
(4,087)
(610,764)
(614,851)
(22,596)
(29,900)
(1,518)
(54,014)
(668,865)|Transfers
in the year
2021
£
-
-
-
-
-
|Gains and
losses
2021
£
-
-
-
-|Closing
balance
2021
£
1,554,056|
|---|---|---|---|---|---|---|
|||||||1,554,056
1,038,263|
|||||||2,592,319|
|||||||-
12,058
1,175|
|||||||13,233|
|||||||2,605,552|
## **Analysis of net assets by fund**
In the previous year, the assets and liabilities of the various funds were as follows:
|Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year|General
Designated
funds
funds
£
£
28,488
39,275
6,260
1,000,619
1,547,796
(30,118)
1,038,263
1,554,056
Unrestricted Funds|Restricted
funds
£
13,358
(125)
13,233|2021
£
28,488
45,535
2,561,773
(30,243)|
|---|---|---|---|
||||2,605,552|
## _Designated Funds_
The Vision Fund is an unrestricted fund designated by the Trustees to allow for future expenditure on cost of rent of larger premises, new staff, saving for or purchase of, a building, or other general church use.
## _Restricted Funds_
The Tribe of Benjamin Fund is a restricted fund that is managed for Ben Davies where churches in the group historically sent the income to Reading Family Church and Ben Davies puts in his expenses for conferences and other expenses needed to run The Church Plant Fund is a restricted fund being held to support the establishment of new churches.
The Covid 19 Fund is a restricted fund set up to make financial gifts to individuals and organisations who are experiencing financial hardship as a results of the Covid 19 crisis.
The Other Restricted funds represent monies donated by church members for particular areas such as supporting those in financial difficulty.
Page 19
## **Reading Family Church**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
## **17 Operating lease commitments**
The charity has an operating lease for its church building. The minimum amount payable (until the next break clause and ignoring the potential effect of future rent reviews) in respect of this lease is as follows:
|the potential effect of future rent reviews) in respect of this lease is as follows:|||
|---|---|---|
|Within one year
Between one and five years
After five years
Payments falling due:|2022
£
124,800
171,600
-
296,400|2021
£
124,800
296,400
-|
|||421,200|
During the year the charity was charged £124,800 (2021: £95,866) for its operating lease.
## **18 Transactions with related parties** During the year the charity:
- a) received donations totalling £93,566 (2021: £43,270) from related parties (which includes trustees, any other members of key management and anyone closely connected to them).
- b) No expenses (2021: £nil) were paid to, or for, the trustees.
During the year the charity also made the following payments to, or for, related parties:
- a) During the year the charity received £21,604 (2021: £9,162) from and paid £nil (2021: £20,000) to Mercy Central, an organisation for which Mr S Green is Chair of Trustees
- b) During the year the charity received £10,222 (2021: £7,036) from and paid £nil (2021: £200) to Oakwood Youth Challenge, an organisation for which Mr J Davis is Chair of Trustees
- c) Ms Z Green who is the daughter of Mr S Green (a Trustee) received £1,105 (2021: £1,802) salary in her capacity as office cleaner
- d) Mr S Taylor (a member of key management) received a long service award gift with a value of £500.
- e) During the year the charity paid £744 (2021: £960) to Quadriga Health & Safety Ltd. Mr J Davis is also a trustee of Quadriga Trustees Ltd.
## **19 Events since the year end**
During the financial year 2022/23, Mercy Central funds of £42,307 have been transferred to the charity. This money will be restricted to CAP work.
## **20 Members**
Each member of the company commits to contribute if the charity is wound up an amount of £1.
Page 20
## **Reading Family Church**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations
3
Charitable activities
4
Investments
5
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities:
6
**Total Expenditure**
**Net gains/(losses) on investments**
**Net income/(expenditure)**
**Transfers between funds**
16
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
16||General
Designated
2022
2022
£
£
843,002
9,433
65,209
-
4,697
17,997
912,907
27,429
790,419
-
790,419
-
-
-
122,489
27,429
-
-
122,489
27,429
1,038,263
1,554,056
1,160,752
1,581,485
Unrestricted funds|Restricted
2022
£
330
-
-
330
13,482
13,482
-
(13,152)
-
(13,152)
13,233
81|Total
2022
£
852,764
65,209
22,694
940,667
803,900
803,900
-
136,766
-
136,766
2,605,552
2,742,319|||General
Designated
2021
2021
£
£
752,428
8,444
3,264
3,414
8,030
759,106
16,474
610,764
4,087
610,764
4,087
-
-
148,342
12,387
-
-
148,342
12,387
889,921
1,541,669
1,038,263
1,554,056
Unrestricted funds|Restricted
2021
£
5,249
5,249
54,014
54,014
-
(48,765)
-
(48,765)
61,998
13,233|Total
2021
£
766,121
3,264
11,444
780,829
668,865
668,865
-
111,964
-
111,964
2,493,588
2,605,552|
|---|---|---|---|---|---|---|---|---|---|
Page 21