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2022-12-31-accounts

Charity registration number 1148822 (England and Wales)

Charity registration number SC044099 (Scotland) Company registration number 08139399 (England and Wales)

NEW APOSTOLIC CHURCH UK

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

NEW APOSTOLIC CHURCH UK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr D A Middleton
Mr D A Heynes
Mr N C Woodman
Mr R Krause
Mrs K Paisley
Secretary C Esterhuizen
Charity number (England and Wales) 1148822
Charity number (Scotland) SC044099
Company number 08139399
Registered office 19 Southwell Park Road
Camberley
Surrey
GU15 3PU
Auditor Richard Place Dobson Services Limited
Ground Floor
1 - 7 Station Road
Crawley
West Sussex
RH10 1HT

NEW APOSTOLIC CHURCH UK

CONTENTS

Page
Trustees' report 1 - 4
Statement of trustees' responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9 - 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 27

NEW APOSTOLIC CHURCH UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees present their annual report and financial statements for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The aim of the Charity as set out in its Constitution is the interlocking union and instruction of its believers according to the New Apostolic confession of faith.

The Charity fulfils its objects by promoting and teaching the New Apostolic Church faith, which is encapsulated in the Ten Articles of Faith. This work is carried out in unity with the worldwide promotion and teaching of the New Apostolic faith under the oversight of the Chief Apostle and the New Apostolic Church International.

The Charity seeks to support the spiritual care of members and guests and to care for sustained attendance and the overall participation of its members at the divine services and other events as well as to manage the donations and freewill offerings of those attendees.

Significant activities

The strategy of the Charity is to foster spiritual fellowship and the development of the faith amongst its members. The emphasis for church buildings owned by the Charity is on maintenance and refurbishment to bring the properties in line with current standards where feasible. The activities of the charity are centred on the divine services held in the congregations which utilise church buildings owned by the Charity as well as those in hired premises.

The divine services are open to the public who can participate in them and benefit from the spiritual fellowship and faith of the members. The divine services are complemented by pastoral visits by the ministers, and a range of activities including Sunday School, Religious Instruction and Confirmation lessons, as well as activities for children, young people and seniors. Music forms an important of our worship and enhances the divine service experience. The Church website www.nacukie.org and a variety of church publications, continue to benefit existing members as well as encouraging guests with information on the Church.

Digital platforms used to stream church services and other events remain a significant offering which allows the Charity to reach members, old and new who have difficulty in attending in person.

Public Benefit

The Trustees have complied with their duty to have regard to the Charity Commission’s public benefit guidance when exercising relevant powers or duties. One of the core objects of the charity is to advance the Christian faith in accordance with the worldwide teachings of the New Apostolic faith in the United Kingdom and Ireland (and any other places); based on Matthew chapter 28 "to teach all nations". This is carried out locally by inviting guests, arranging special events, publishing church publications and informing via the website. All members are encouraged to invite others to participate in the activities of the charity.

All church services and other platforms are open to the public. Membership of the charity is open to any adult who wishes to join a congregation. Minors may also join subject to applicable law. Membership of the charity is diverse with many different cultures and social strands represented in the charity. The charity is associated with New Apostolic Church International which has some 9 million members worldwide (see https://nak.org/en/church/factsfigures).

Where possible, church properties have notice boards advising the times of services and other local information. Details are also provided on the website. Many church properties provide disabled access. The activities of the charity are spread across various locations in the United Kingdom and Ireland.

Where costs are charged to members for publications and other services, the costs are reasonable, and publications are available at an affordable cost. There are no charges for becoming a member of the charity or for performing ministrations, for example, weddings, baptisms or funerals.

page 1

NEW APOSTOLIC CHURCH UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Volunteers

The Charity is run almost exclusively by volunteer ministers and members in the UK and Ireland who fulfil their ministerial responsibilities in an honorary capacity. The activities that complement the divine services are supported by members and attendees of all ages in their voluntary capacity. Nearly all the income of the Charity is derived from the donations and freewill offerings of attendees.

Financial review

The result for the year shows a net operational surplus of £28,032. This is then adjusted for the net loss on investments in the period resulting in a net movement in funds of - £86,515.

Reserves policy

Approximately £200,000 of the reserves will be used in 2023 to make improvements to the buildings in the property portfolio. This will change in future years to build up the reserves.

Principal funding sources

Nearly all of the income of the Charity was derived directly from donations and freewill offerings from attendees. Most of the income of the Charity was used to meet the operating expenses of the Charity, including the provision of divine services, both in-person and now digital and other activities that complement the divine services. The maintenance and improvements to the Charity's properties, management and administration costs.

Legacies, Gift Aid & Bank-2-Bank income

Following the enforced changes due to the Covid 19 restrictions two years ago, online bank to bank offerings continue to be the preferred option for most, although cash offerings did increase in 2022 and Gift Aid on small donations could once again be claimed as in-person church services resumed. We received notification of our entitlement to a legacy during the year of which an initial £100,000 was received in August 2022.

Investment policy and objectives

The policy is to invest funds in Barclays Treasury Fixed Term Deposits to achieve a high level of security combined with good accessibility. Euro based NAK Special Funds remains the chosen investment vehicle for the majority of the financial assets. During the year and in keeping with world markets the investment fund reduced in value. The trustees are keeping the fund performance under observation.

FUTURE DEVELOPMENTS

The core objectives of the Charity are to support the spiritual care of members and guests. The Charity will aim to achieve these objectives by implementing the strategies and activities, backed by the extensive use of volunteers, described earlier in this report. The Charity is aware that external factors, including the political and economic environment both in overseas countries where the New Apostolic Church is established and, in the UK, may impact on its ability to achieve its core objectives.

Estate Management

Almost the entire estate has been renovated and upgraded to varying degrees and funds invested to ensure all properties became compliant, within reason, to applicable legislation and good practices.

Insurances - Property and fellowship at rented locations

A full review and update takes place annually and the trustees are satisfied that there is sufficient cover of property and contents.

The value of properties has also been reviewed to meet the new FRS102 requirements.

page 2

NEW APOSTOLIC CHURCH UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Structure, governance and management

The Charity is a company limited by guarantee not having a share capital formed under the Companies Act 2006.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr D A Middleton Mr D A Heynes Mr U Falk (Resigned 26 November 2022) Mr N C Woodman Mr R Krause Mrs K Paisley

Recruitment and appointment of new Trustees Directors

The Articles make provision for the District Apostle to approve the appointment of new trustees’ directors of whom three are soul care trustees and three are members of the Church with suitable management experience. The District Apostle will consult the other trustees before an appointment is made, and the appointment will then be approved by all trustee directors.

Publications

The Charity produces & purchases literature and teaching materials that support the promotion of the New Apostolic Faith which are mostly published by Verlag Friedrich Bischoff GmbH by commission of the New Apostolic Church International. The literature and teaching materials are purchased by the Charity on a commercial basis which allows for the fact that the literature and teaching materials are available to a number of English-speaking countries including the UK and Ireland.

Risk management

The trustees confirm that the major risks, to which the Charity is exposed, are identified by the trustees, regularly reviewed and systems established or are in the process of being enhanced, to manage those risks. The trustees have a risk register which is reviewed and updated annually.

Sustainability has been ear-marked as an area the trustees need to focus on in the coming years.

DBS checks for all active volunteers are regularly reviewed in accordance with the charity’s safeguarding policy. The trustees continue to apply their skills as outlined in the skills audit and work closely with their professional support in terms of legal and accounting procedures.

Organisational structure

The organisational structure relating to the religious activities of the Charity is centred on congregations and missions, which are located mainly in the UK, and are each led by a rector. The congregations are grouped into a number of geographical districts which are each led by a District Leader The District Leaders are led by an Apostle, assisted by a Bishop, and they have responsibility for the religious activities carried out by the charity in the UK & Ireland An Apostle reports to the District Apostle and the District Apostle reports to the Chief Apostle (who is the Supreme President of the New Apostolic Church worldwide). The organisational structure relating to the business affairs of the Charity, which includes all legal, regulatory, financial, property and administrative matters is led by the trustees. and their appointed advisors. The day-to-day administration and financial matters of the Charity are carried out by an administrator who is directly supported by the Apostle who is also a Trustee. The Charity’s properties are managed by Mr D Middleton who is supported by the administrator, Mr C Esterhuizen and at each location by an appointed and trained Facilities Manager(s). One of the soul care trustees is also employed by the Charity. The Church administrator has been fully trained as our internal qualified Health & Safety officer.

David Middleton will retire in 2023 and his responsibilities for property management will be shared amongst the trustees with the guidance of the Head of Property of the parent organisation, Neuapostolische Kirche Nord-und Ostdeutschland.

Induction and training of new trustees

Once new trustee directors have been formally appointed after signing a declaration of eligibility/willingness to act, they are invited to read Commission guides CC3 and ‘Managing faith charities as trustees’. They immediately have the opportunity to engage with issues and decisions with which the trustees become involved. This provides new trustees with peer group support enabling them to contribute to the work of the existing trustee directors from the date of their formal appointment.

page 3

NEW APOSTOLIC CHURCH UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Wider network

The Charity's religious activities are carried out in unity with the worldwide promotion and teaching of the New Apostolic faith under the oversight of the Chief Apostle and the New Apostolic Church International. The Charity's legal, regulatory, financial, property and administrative matters are directed by the trustees having regard to professional advice and what is in the best interests of the Charity.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

..............................

Mr D A Heynes

trustee 22.9.2023 Dated: .........................

page 4

NEW APOSTOLIC CHURCH UK

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees, who are also the directors of New Apostolic Church UK for the purpose of company law, are responsible for preparing the Trustees' 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 affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

The trustees are responsible for keeping adequate accounting records that 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 Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). 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.

page 5

NEW APOSTOLIC CHURCH UK

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF NEW APOSTOLIC CHURCH UK

Opinion

We have audited the financial statements of New Apostolic Church UK (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 25 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

page 6

NEW APOSTOLIC CHURCH UK

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NEW APOSTOLIC CHURCH UK

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatements due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

page 7

NEW APOSTOLIC CHURCH UK

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NEW APOSTOLIC CHURCH UK

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, the audit engagement team made enquiries of management, and those charged with governance, regarding the procedures relating to identifying, evaluating and complying with;

  1. laws and regulations and whether they were aware of any instances of non-compliance;

  2. detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  3. the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, General Data Protection Regulations, Companies Act, Charities Act 2011, Charities and Trustees Investment (Scotland) Act, Charities Statement of Recommended Practice and employment law and regulations. We performed audit procedures to detect non-compliance, which may have a material impact on the financial statements. These included reviewing financial statement disclosures and evaluating advice received from external advisors. There were no significant laws and regulations we deemed as having an indirect impact on the financial statements.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the rationale in relation to any significant, unusual transactions and transactions entered into outside of the normal course of business.

As a portion of income is cash donations, this was also highlighted as an area of high risk for fraud and not being recorded in the accounts. Audit procedures performed included but were not limited to observing count procedures and substantive and analytical testing of income recording systems.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body,and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

For and on behalf of Richard Place Dobson Services Limited .........................26/09/2023 Chartered Accountants Date Statutory Auditor

Richard Place Dobson Services Limited is eligible for appointment as auditor of the charitable company by vitue of its eligibilty for appointment as auditor of a company under section 1212 of the Companies Act 2006.

page 8

NEW APOSTOLIC CHURCH UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Current financial year
Unrestricted
Unrestricted
Restricted
funds
funds
funds
general
designated
2022
2022
2022
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
593,960
-
31,017
Investments
4
10,847
29,975
-
Other income
5
6,125
-
-
Total income
610,932
29,975
31,017
Expenditure on:
Charitable activities
6
561,604
51,271
31,017
Net gains/(losses) on investments
11
-
(116,388)
-
Net incoming/(outgoing) resources
49,328
(137,684)
-
Other recognised gains and losses
Other gains or losses
13
1,841
-
-
Net movement in funds
51,169
(137,684)
-
Fund balances at 1 January 2022
329,215
8,036,177
-
Fund balances at 31 December 2022
380,384
7,898,493
-		 Total
2022
£
624,977
40,822
6,125
671,924
643,892
(116,388)
(88,356)
1,841
(86,515)
8,365,392
8,278,877		 Total
2021
£
456,208
41,072
14
497,294
563,828
(87,072)
(153,606)
-
(153,606)
8,518,998
8,365,392

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

page 9

NEW APOSTOLIC CHURCH UK

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2022

Prior financial year
Unrestricted
Unrestricted
funds
funds
general
designated
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
456,208
-
Investments
4
10,868
30,204
Other income
5
14
-
Total income
467,090
30,204
Expenditure on:
Charitable activities
6
552,826
11,002
Net gains/(losses) on investments
11
-
(87,072)
Gross transfers between funds
(451,210)
451,210
Net incoming/(outgoing) resources
(536,946)
383,340
Other recognised gains and losses
Net movement in funds
(536,946)
383,340
Fund balances at 1 January 2021
866,161
7,652,837
Fund balances at 31 December 2021
329,215
8,036,177		 Total
2021
£
456,208
41,072
14
497,294
563,828
(87,072)
-
(153,606)
(153,606)
8,518,998
8,365,392

page 10

NEW APOSTOLIC CHURCH UK

BALANCE SHEET

AS AT 31 DECEMBER 2022

2022
Notes
£
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
16
67,378
Cash at bank and in hand
538,804
606,182
Creditors: amounts falling due within one
year
17
(32,655)
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds
Designated funds
19
7,898,493
General unrestricted funds
380,384
The financial statements were approved by the Trustees on .........................
..............................
Mr D A Heynes
Trustee
22/09/2023		 £
5,991,182
1,714,168
7,705,350
573,527
8,278,877
8,278,877
8,278,877		 2021
£
7,315
587,020
594,335
(21,816)
8,036,177
329,215		 £
5,992,291
1,800,582
7,792,873
572,519
8,365,392
8,365,392
8,365,392

Company Registration No. 08139399

page 11

NEW APOSTOLIC CHURCH UK

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 24 91,384 5,935
Investing activities
Purchase of tangible fixed assets (150,447) (309,386)
Purchase of investments (29,975) (30,204)
Investment income received 40,822 41,072
Net cash used in investing activities (139,600) (298,518)
Net cash used in financing activities - -
Net decrease in cash and cash equivalents (48,216) (292,583)
Cash and cash equivalents at beginning of year 587,020 879,603
Cash and cash equivalents at end of year 538,804 587,020

page 12

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

New Apostolic Church UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 19 Southwell Park Road, Camberley, Surrey, GU15 3PU.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's charity's memorandum and articles of association, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of listed investments to market value at the year end. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for a specific purpose.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

1.4 Income

Items of income are recognised and included in the accounts when all of the following criteria are met:

For legacies, entitlement is taken as the earlier of:

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

page 13

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

Interest receivable

Interest on funds held on deposit or dividend income from investments is included when receivable and the amount can be measured realisable by the charity, this is normally upon notification by the relevant organisation.

Other income

Other income consists of insurance proceeds and is recognised in the accounts when there is a reasonable certainty it will be received.

1.5 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. Expenditure is classified under the following activity headings:

Charitable activities - includes the costs of carrying out the charitable objects in promoting and teaching the New Apostolic faith and their associated support costs as well as costs incurred in supporting Youth Away days. No support costs are allocated to this activity.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs. These costs have all been allocated to the main charitable activity of promoting and teaching the New Apostolic Faith.

1.6 Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold land and buildings 2% on cost
Plant and equipment 15% on reducing balance
Fixtures and fittings 15% on reducing balance
Computers 15% on reducing balance
Motor vehicles 25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Only items over £5,000 will be capitalised. In the main this will be items such as new Altars, Organs and new furniture.

No depreciation is charged on freehold property as the estimated residual value is higher than the cost properties are carried in the accounts and any charge would be immaterial. Where residual values of property fall below cost, an impairment review is undertaken and the carrying value of property is impaired in the accounts.

1.7 Fixed asset investments

Fixed asset investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the quoted market value at the balance sheet date.

page 14

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at the carrying value plus accrued interest less repayments.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid deposit accounts with a short maturity date of three months or less from the opening of the account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.11 Employee benefits

The costs of short term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

1.12 Retirement benefits

Pensions

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

1.13 Leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

1.14 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

page 15

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.15 Legal status

The Charitable Company is a company limited by guarantee and has no share capital. in the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The key judgements and estimates made in preparing the accounts are the valuation of freehold property. The residual value has been estimated to be more than the buildings original cost and therefore no depreciation has been charged on this basis.

The trustees have made a judgement on whether each property is impaired, where such a judgement has been made this has been explained in the notes to the accounts

3 Donations and legacies

Unrestricted
Restricted
funds
funds
general
2022
2022
£
£
Donations and gifts
236,855
31,017
Donations under gift aid
357,105
-
593,960
31,017		 Total
Unrestricted
funds
general
2022
2021
£
£
267,872
224,515
357,105
231,693
624,977
456,208		 Total
Unrestricted
funds
general
2022
2021
£
£
267,872
224,515
357,105
231,693
624,977
456,208
456,208

page 16

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

4 Investments

Unrestricted
Unrestricted
funds
funds
general
designated
2022
2022
£
£
Rental income
10,800
-
Income from unlisted investments
-
29,975
Interest receivable
47
-
10,847
29,975		 Total
Unrestricted
Unrestricted
funds
funds
general
designated
2022
2021
2021
£
£
£
10,800
10,800
-
29,975
-
30,204
47
68
-
40,822
10,868
30,204		 Total
2021
£
10,800
30,204
68
41,072

page 17

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

5 Other income

Unrestricted Unrestricted
funds funds
general general
2022 2021
£ £
Other income 6,125 14
6 Charitable activities
2022 2021
£ £
Staff costs 104,015 106,057
Depreciation and impairment 150,552 102,497
Hire of plant and machinery 13,511 14,719
Rent of halls for services 39,742 43,204
Rates and water for services 2,613 2,111
Light and heat for services 19,917 15,675
Church music expenses 4,925 18,692
Materials 2,417 4,394
Repairs and maintenance 68,418 69,895
Travel and subsistence 67,913 35,684
474,023 412,928
Share of support costs (see note 7) 63,860 75,908
Share of governance costs (see note 7) 106,009 74,992
643,892 563,828
Analysis by fund
Unrestricted funds - general 561,604 552,826
Unrestricted funds - designated 51,271 11,002
Restricted funds 31,017 -
643,892 563,828

page 18

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

7
Support costs
Support costs
Governance
costs
2022
Support costs
Governance
costs
£
£
£
£
£
Staff costs
10,562
-
10,562
41,019
-
Depreciation
1,005
-
1,005
1,183
-
Rates and water
12
-
12
348
-
Insurance
12,654
-
12,654
14,796
-
Telephone
13,760
-
13,760
13,130
-
Postage and stationery
15,155
-
15,155
14,086
-
Church publications
102
-
102
9
-
Sundries
6,473
-
6,473
5,074
-
Bank Charges
1,026
-
1,026
593
-
Licences
3,023
-
3,023
470
-
District Events
88
-
88
257
-
Audit fees
-
12,960
12,960
-
12,600
Other assurance services
-
6,087
6,087
-
10,096
Legal and Professional fees
-
86,962
86,962
-
37,239
63,860
106,009
169,869
90,965
59,935
Analysed between
Charitable activities
63,860
106,009
169,869
75,908
74,992
8
Net movement in funds
2022
£
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's financial
statements
12,960
Depreciation of owned tangible fixed assets
151,557		 2021
£
41,019
1,183
348
14,796
13,130
14,086
9
5,074
593
470
257
12,600
10,096
37,239
150,900
150,900
2021
£
12,600
103,680

9 Trustees

One trustee was reimbursed a total of £275 (2021: £157) for travelling expenses.

None of the trustees received remuneration for their role as trustee. One of the trustees David Middleton received remuneration during the year of £72,379 (2021: £70,271) for his role as a Bishop of The New Apostolic Church UK. Payment is made in accordance with the charity's Articles of Association.

page 19

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

10 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Charitable activities 1 2
Employment costs 2022 2021
£ £
Wages and salaries 90,238 111,290
Social security costs 5,283 12,185
Other pension costs 19,056 23,601
114,577 147,076

The staff costs above represent the total remuneration paid to key management personnel of the charity.

The number of employees whose annual remuneration was more than £60,000 is as follows:

follows:
2022 2021
Number Number
£70,000 - £80,000 1 1

page 20

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

11 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
designated designated
2022 2021
£ £
Revaluation of investments (116,388) (87,072)

12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

13 Other gains or losses

Other gains or losses
Unrestricted Total
funds
general
2022 2021
£ £
Foreign exchange gains (1,841) -

page 21

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

14 Tangible fixed assets

Freehold land
and buildings
£
Cost
At 1 January 2022
5,148,577
Additions
-
At 31 December 2022
5,148,577
Depreciation and impairment
At 1 January 2022
-
Depreciation charged in the year
25,000
At 31 December 2022
25,000
Carrying amount
At 31 December 2022
5,123,577
At 31 December 2021
5,148,577		 Plant and
equipment
Fixtures and
fittings
£
£
88,276
1,033,208
-
150,447
88,276
1,183,655
46,145
238,327
6,320
119,232
52,465
357,559
35,811
826,096
42,131
794,881		 Computers
Motor vehicles
£
£
20,073
2,570
-
-
20,073
2,570
13,370
2,570
1,005
-
14,375
2,570
5,698
-
6,702
-		 Total
£
6,292,704
150,447
6,443,151
300,412
151,557
451,969
5,991,182
5,992,291

page 22

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

15 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 January 2022 1,800,582
Additions 29,975
Valuation changes (116,388)
At 31 December 2022 1,714,169
Carrying amount
At 31 December 2022 1,714,169
At 31 December 2021 1,800,582

Fixed asset investments revalued

The historical cost of the investments at the year end was £1,628,588 (2021: £1,598,613).

16 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2022
£
50,258
415
16,705
67,378
2022
£
1,329
8,141
20,971
2,214
32,655		 2021
£
-
415
6,900
7,315
2021
£
-
1,575
17,580
2,661
21,816

17 Creditors: amounts falling due within one year

page 23

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

18 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in Movement in funds Movement in funds
funds
Incoming Balance at Incoming Resources Balance at
resources 1 January 2022 resources expended 31 December
2022
£ £ £ £ £
German Church support costs - - 31,017 (31,017) -
- - 31,017 (31,017) -

German Church support costs - donations were received during the year from the Parent Church to support the charitable activities of the Church and to assist with meeting certain costs.

page 24

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

19 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 January 2021
£
Fixed asset fund
5,095,387
Investment fund
1,857,450
Property Improvement fund
450,000
Cyclical maintenance fund
250,000
7,652,837		 Incoming
resources
£
-
30,204
-
-
30,204		 Movement in funds
Resources
expended
Transfers
Revaluations,
gains and losses
Balance at
1 January 2022
£
£
£
£
-
890,208
-
5,985,595
-
-
(87,072)
1,800,582
-
(450,000)
-
-
(11,002)
11,002
-
250,000
(11,002)
451,210
(87,072)
8,036,177		 Movement in funds
Incoming
resources
Resources
expended
Revaluations,
gains and losses
Balance at
31 December
2022
£
£
£
£
-
-
-
5,985,595
29,975
-
(116,388)
1,714,169
-
-
-
-
-
(51,271)
-
198,729
29,975
(51,271)
(116,388)
7,898,493		 Movement in funds
Incoming
resources
Resources
expended
Revaluations,
gains and losses
Balance at
31 December
2022
£
£
£
£
-
-
-
5,985,595
29,975
-
(116,388)
1,714,169
-
-
-
-
-
(51,271)
-
198,729
29,975
(51,271)
(116,388)
7,898,493
7,898,493

The fixed fund represents the funds necessarily set aside for the charity's occupation of the land and buildings plus fixtures and fittings within those properties. This fund includes the impairment in value of two of the churches of £264,402.

The Investment fund represents the funds that are held in HI GKR Fonds. The Investment fund includes an investment revaluation reserve of £289,872 (2021: £289,872).

The property improvement fund represents funds set aside to fund architect and other professional fees to investigate the re-development of existing properties.

The cyclical maintenance fund represents funds set aside for a fixed maintenance plan and ongoing contracts for supply of services. This includes PAT testing, legionella, fire extinguisher checks, boiler servicing and similar.

page 25

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

20 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted
funds
Designated
funds
Restricted
funds
2022
2022
2022
£
£
£
Fund balances at 31 December 2022 are represented by:
Tangible assets
5,587
5,985,595
-
Investments
-
1,714,168
-
Current assets/(liabilities)
374,797
198,730
-
380,384
7,898,493
-		 Total
Unrestricted
funds
Designated
funds
2022
2021
2021
£
£
£
5,991,182
6,696
5,985,595
1,714,168
-
1,800,582
573,527
322,519
250,000
8,278,877
329,215
8,036,177		 Total
2021
£
5,992,291
1,800,582
572,519
8,365,392

page 26

NEW APOSTOLIC CHURCH UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

21 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

2022 2021
£ £
Within one year - 2,525

22 Related party transactions

During the year purchases of £212,773 (2021: £306,452) were made from CSC UK Limited, a related company due to both of the directors of CSC UK Limited being related to a trustee. The amounts paid were on normal business terms.

23 Charges Held

Neuapostolische Kirche Norddeutschland have registered a charge over 48 Warwick Gardens, Kensington W14 8PP against loans to be provided in the future for potential property development projects.

24
Cash generated from operations
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Foreign exchange differences
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase in creditors
Cash generated from operations		 2022
2021
£
£
(88,356)
(153,606)
(40,822)
(41,072)
1,841
-
116,388
87,072
151,557
103,680
(60,063)
3,082
10,839
6,779
91,384
5,935		 2022
2021
£
£
(88,356)
(153,606)
(40,822)
(41,072)
1,841
-
116,388
87,072
151,557
103,680
(60,063)
3,082
10,839
6,779
91,384
5,935
5,935

25 Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to assist with the preparation of the financial statements.

page 27