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← Catalyst Network Of Churches

2023-12-31-accounts

REGISTERED COMPANY NUMBER: 08284434 (England and Wales) REGISTERED CHARITY NUMBER: 1150242

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

CATALYST NETWORK OF CHURCHES

Harrison Beale & Owen Limited Chartered Accountants and Statutory Auditor Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT

CATALYST NETWORK OF CHURCHES

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 December 2023

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 8
Statement of Financial Activities 9
Balance Sheet 10 to 11
Cash Flow Statement 12
Notes to the Cash Flow Statement 13
Notes to the Financial Statements 14 to 23
Detailed Statement of Financial Activities 24

CATALYST NETWORK OF CHURCHES

REPORT OF THE TRUSTEES for the year ended 31 December 2023

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 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

It is a requirement of the Trustees of Catalyst Network of Churches to ensure that the organisation continues to deliver services for public benefit and the trustees have considered the Charity Commission's guidance on that subject. The organisation's charity objects and its principal activities are:

The charity operates both in the UK and wider world.

Page 1

CATALYST NETWORK OF CHURCHES

REPORT OF THE TRUSTEES for the year ended 31 December 2023

STRATEGIC REPORT

Achievement and performance

How our activities deliver public benefit

Around 80 churches from the UK are part of the Catalyst Network. There are also a large number of churches overseas that have a direct Apostolic relationship with Catalyst. The UK church leaders have gathered on several occasions during the year for training, prayer and to be equipped to fulfil their role as leaders of churches reaching out to benefit the community locally, across the UK and overseas.

The European Crisis Fund, was established during the 2022 year in response to the war in Ukraine for the support and relief of those affected by military, political or economic aggression in Europe with an immediate and particular focus on churches and refugees displaced and in need due to the war in Ukraine. We have partnered with Newfrontiers International Trust (charity reg no 1060001) to collect and distribute the money in this fund. Newfrontiers consists of a brotherhood of apostles from across the world, each of whom has responsibility for a family of churches, similar to Catalyst Network of Churches. Grants from the fund are approved by a team consisting of directors and church leaders from Newfrontiers International and Catalyst. At the end of the year the fund stood at £658k. As much of the fund will be used to assist with rebuilding and resettling churches and communities once conflict has ceased, we expect this fund will remain in place for some time.

During the year the Turkey earthquake fund was established in response to the earthquake on the Turkey / Syria border. The purpose of the fund is to provide for those affected by the earthquake either directly through churches we are connected with on the ground or through partner organisations who could bring relief to those most affected. The appeal raised £548k during the year. £253k was distributed and a further £295k remains to be distributed much of which will be used during 2024.

A number of Catalyst churches working together as the Oxford Hub have been supporting church plants and training and equipping leaders, particularly overseas, primarily through a programme of work called "Unreached". This work has grown to be on behalf of the whole of the Catalyst Network. Consequently, we set up a fund within Catalyst pending a full review of the strategic needs and support required to enable this ministry to be fully effective in advancing the Christian faith overseas. £135k came into the fund with £92k expenditure during the year.

Leadership Training, a 2 year structured training programme for church leaders and potential leaders and "God's Big Story" a 2 year entry level bible training course both ran again during the year.

Overseas ministry forms a large part of Catalyst's activities. Apostolic oversight of churches has continued with support to many nations.

Through being a network of churches together Catalyst has been able to achieve more and get more involved in more areas than would otherwise have been possible by individual churches acting alone, thereby reaching out and benefitting more people in the UK and abroad.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Trustees appointment, induction and training

There were no appointments during the year. Trustees are required to agree with the trust’s Statement of Faith. Trustee induction includes a briefing with one of the existing directors on the role of Trustees. It also includes the provision and review of charity commission material on the role of the trustee. The need for further trustee training is kept under review.

Page 2

CATALYST NETWORK OF CHURCHES

REPORT OF THE TRUSTEES for the year ended 31 December 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

The trustees met for two formal board meetings during the year and have responsibility for the general, legal and fiscal oversight of the trust.

The day to day work of the charity is delegated to four of the Directors; Simon Holley, Richard Wightman, Andrew Martin and Andrew Simpkins who are supported by both paid and voluntary staff. There is a strategy team, headed by Simon Holley, made up of church leaders from within the network with emerging apostolic gifting that makes recommendations to the board on the broad direction of the Network and projects to fund. Andrew Simpkins and Richard Wightman also form part of this team.

Risk management

The trustees have established a pattern of risk management which is monitored through a Finance and Risk subcommittee of 6 of the directors to consider the financial, strategic and operational risks to the charity. Major risks to which the charity is exposed have been reviewed and systems put in place to mitigate those risks.

Going Concern

The Trustees have continued to monitor the charity's finances to ensure that we are able to meet our commitments and thus remain a going concern. The Trustees will continue to monitor the income and adjust the cost base appropriately if needed. We hold unrestricted cash reserves which equate to 10 months' expenditure. Having considered these factors, we still consider the charity to be a going concern.

Reserves Policy

The Trustees set the reserves policy in line with the guidance issued by the Charities Commission. The policy is reviewed annually as part of our risk management processes. The trustees believe that the charity should hold reserves because it has no endowments and needs to protect itself in the event of unforeseen circumstances to continue its activities; and needs to remain flexible with an ability to maximise future opportunities as they arise.

Catalyst aims to hold a minimum of the equivalent of three month’s expenditure as general reserves. As at the year end the general reserves stood at £227k (2022: £222k) and with unrestricted expenditure for the year, including designated expenditure, of £278k, the trustees believe, as noted above, that the charity is adequately complying with its reserves policy.

Fundraising

Whilst the charity does engage in fundraising, this does not form part of the charity's principal activities. The charity neither participates in publicly marketed fundraising events nor in the active soliciting of donations from members of the public. Accordingly, the charity is not registered with the Fundraising Regulator, although the trustees will keep the situation under review.

Financial Review

Total income for the year was £1,048k (2022: £1,765k). Grants were mainly received from churches either as regular or one-off gifts. Donations from individuals were mainly received into the Turkey and Syrian Earthquake appeal fund along with associated gift aid. Further donations were also received in 2023 in respect of the the European Crisis Fund appeal which was first made in 2022 for the situation in Ukraine, supporting a number of churches. Total resources expended amounted to £1,139k (2022: £859k). The increase in expenditure relative to income reflects the fact that much of the Ukraine fund will be expended or distributed over time, as was observed in the previous year's financial statements.

The total net movement in funds in 2023 was net expenditure of £90k (2022: net income of £907k), again a reflection of the funds raised in 2022 for Ukraine, which it is anticipated will be expended or otherwise distributed over the next few years. The net assets of the charity are £1,421k (2022: £1,512k). Of this £1,030k (2022: £1,106k) is restricted and £164k (2022: £184k) is designated.

Page 3

CATALYST NETWORK OF CHURCHES

REPORT OF THE TRUSTEES for the year ended 31 December 2023

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

08284434 (England and Wales)

Registered Charity number

1150242

Registered office

St Columba's St Columba's Close Coventry CV1 4BX

Trustees

Sarah Joanna Crowhurst Simon Geoffrey Holley Roydon Loveley Andrew Timothy Harlow Martin David John Morris Michael Paul Saxton Andrew Gordon Simpkins Richard Eric Wightman

Auditors

Harrison Beale & Owen Limited Chartered Accountants and Statutory Auditor Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Catalyst Network Of Churches for the purposes of company law) are responsible for preparing the Report of the Trustees 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

Page 4

CATALYST NETWORK OF CHURCHES

REPORT OF THE TRUSTEES for the year ended 31 December 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

In so far as the trustees are aware:

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 21 August 2024 and signed on the board's behalf by:

Andrew Gordon Simpkins - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF CATALYST NETWORK OF CHURCHES

Opinion

We have audited the financial statements of Catalyst Network Of Churches (the 'charitable company') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF CATALYST NETWORK OF CHURCHES

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company'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.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act 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 a Report of the Independent Auditors 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:

The audit process includes an assessment of the entity's risk environment, through enquiry of and discussion with management, including an assessment of any key laws and regulations with which the company must comply in the ordinary course of its business.

Additionally, the overall risks of irregular transactions occurring are assessed following our observations and confirmation of the design and implementation of management's controls. Whilst we are mindful of these risks, our audit focus is geared towards the risk of material misstatement in the financial statements as a whole.

As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, including those regulations relating to fraud, as our procedures are not designed to detect all instances of non-compliance. By definition, the risk of our detection of non-compliance is greater where compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. The risk is also greater regarding irregularities due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF CATALYST NETWORK OF CHURCHES

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' 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 and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Harrison Beale & Owen Limited

Chartered Accountants and Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT

21 August 2024

Page 8

CATALYST NETWORK OF CHURCHES

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the year ended 31 December 2023

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
4
Charitable activities
6
Advancement of the Christian Faith
Investment income
5
Total
EXPENDITURE ON
Charitable activities
7
Advancement of the Christian Faith
NET INCOME/(EXPENDITURE)
Transfers between funds
16
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
185,131
59,670
1,186
245,987
277,575
(31,588)
16,653
(14,935)
405,886
390,951		 Restricted
funds
£
787,277
7,960
7,232
802,469
861,314
(58,845)
(16,653)
(75,498)
1,105,622
1,030,124		 2023
Total
funds
£
972,408
67,630
8,418
1,048,456
1,138,889
(90,433)
-
(90,433)
1,511,508
1,421,075		 2022
Total
funds
£
1,696,694
68,205
550
1,765,449
858,558
906,891
-
906,891
604,617
1,511,508

The notes form part of these financial statements

Page 9

CATALYST NETWORK OF CHURCHES

BALANCE SHEET 31 December 2023

Notes
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
16
Unrestricted funds:
General fund
Designated funds
Restricted funds:
Festival
Support of churches
Ukraine fund
Leadership weekend
Development fund
Covid-19 fund
Business redevelopment fund
Earthquake Appeal
Oxford Hub
TOTAL FUNDS		 Unrestricted
funds
£
-
395,950
395,950
(5,000)
390,950
390,950
390,950		 Restricted
funds
£
10,500
1,029,011
1,039,511
(9,386)
1,030,125
1,030,125
1,030,125		 2023
Total
funds
£
10,500
1,424,961
1,435,461
(14,386)
1,421,075
1,421,075
1,421,075
227,015
163,935
390,950
3,738
827
657,823
-
31,366
-
5,014
294,957
36,400
1,030,125
1,421,075		 2022
Total
funds
£
39,594
1,479,213
1,518,807
(7,299)
1,511,508
1,511,508
1,511,508
222,035
183,851
405,886
14,303
827
989,701
1,304
59,219
7,454
32,814
-
-
1,105,622
1,511,508

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The notes form part of these financial statements

continued...

Page 10

CATALYST NETWORK OF CHURCHES

BALANCE SHEET - continued 31 December 2023

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The financial statements were approved by the Board of Trustees and authorised for issue on 21 August 2024 and were signed on its behalf by:

Andrew Gordon Simpkins - Trustee

The notes form part of these financial statements

Page 11

CATALYST NETWORK OF CHURCHES

CASH FLOW STATEMENT for the year ended 31 December 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Finance costs paid
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Interest received
Net cash provided by investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning
of the reporting period
Cash and cash equivalents at the end of the
reporting period		 2023
£
(61,976)
(694)
(62,670)
8,418
8,418
(54,252)
1,479,213
1,424,961		 2022
£
874,531
(997)
873,534
550
550
874,084
605,129
1,479,213

The notes form part of these financial statements

Page 12

CATALYST NETWORK OF CHURCHES

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 December 2023

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
Net (expenditure)/income for the reporting period (as per the Statement
of Financial Activities)
Adjustments for:
Interest received
Finance costs
Decrease/(increase) in debtors
Increase in creditors
Net cash (used in)/provided by operations		 2023
£
(90,433)
(8,418)
694
29,094
7,087
(61,976)		 2022
£
906,891
(550)
997
(39,594)
6,787
874,531

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
Total		 At 1.1.23
£
1,479,213
1,479,213
1,479,213		 Cash flow
£
(54,252)
(54,252)
(54,252)		 At 31.12.23
£
1,424,961
1,424,961
1,424,961

The notes form part of these financial statements

Page 13

CATALYST NETWORK OF CHURCHES

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023

1. GENERAL INFORMATION

Catalyst Network of Churches is a private company limited by guarantee incorporated in England and Wales. The registered office is St Columba's, St Columba's Close, Coventry, England, CV1 4BX.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Catalyst Network of Churches meets the definition of a public benefit entity under FRS 102.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern and trustees have incorporated any relevant risks into their assumptions underlying the preparation of the budget.

Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the Statement of Financial Activities to which it relates.

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

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

continued...

Page 14

CATALYST NETWORK OF CHURCHES

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Expenditure

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

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

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. As such, it does not have liability to corporation tax in the course of its normal charitable activities.

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 and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund.

The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Pension costs and other post-retirement benefits

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.

Cash at bank and in hand

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

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

Page 15

continued...

CATALYST NETWORK OF CHURCHES

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Cash at bank and in hand

Financial instruments

The charity 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 their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In 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.

4. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Donations
Grants
Grants received, included in the above, are as follows:
New Life Church, Milton Keynes
New Frontiers International Trust Limited
King's Arms Trust, Bedford
Jubilee Church, Coventry
Emmanuel Church, Oxford
Other grants		 2023
£
614,042
358,366
972,408
2023
£
7,510
-
9,080
9,960
67,883
263,933
358,366		 2022
£
1,496,867
199,827
1,696,694
2022
£
12,291
8,222
13,710
51,405
-
114,199
199,827

Page 16

continued...

CATALYST NETWORK OF CHURCHES

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023

5.
INVESTMENT INCOME
Deposit account interest
6.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Charitable activities
Advancement of the Christian Faith
7.
CHARITABLE ACTIVITIES COSTS
Advancement of the Christian Faith
8.
GRANTS PAYABLE
Advancement of the Christian Faith
The total grants paid to institutions during the year was as follows:
Support of churches
9.
SUPPORT COSTS
Management
£
Advancement of the Christian Faith
132,244
Grant
funding of
activities
(see note
8)
£
996,834
Information
technology
£
3,158

continued...

Page 17

CATALYST NETWORK OF CHURCHES

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023

9. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

2023
Advancement
of the
Christian
Faith
£
Wages and salaries
51,522
Pensions
2,146
Travel
30,601
Support and other office costs
47,281
Interest payable and similar charges
694
IT and computer costs
3,158
Auditors' remuneration
5,000
Legal and professional fees
1,653
142,055		 2022
Total
activities
£
72,405
1,272
11,771
14,493
997
2,039
4,000
3,238
110,215

10. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2023 2022
£ £
Auditors' remuneration 5,000 4,000

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

During the year, expenses incurred on behalf of the charity to the value of £nil (2022: £nil) were reimbursed to trustees in the year.

During the year, trustees donated £750 (2022: £nil) to the charity.

continued...

Page 18

CATALYST NETWORK OF CHURCHES

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023

12. STAFF COSTS

Wages and salaries
Other pension costs		 2023
£
51,522
2,146
53,668		 2022
£
72,405
1,272
73,677

Staff expenditure in the year in respect of social security costs was £nil (2022: £nil).

The average monthly number of employees during the year was as follows:

Central operations
No employees received emoluments in excess of £60,000.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
151,597
Charitable activities
Advancement of the Christian Faith
49,925
Investment income
550
Total
202,072
EXPENDITURE ON
Charitable activities
Advancement of the Christian Faith
210,881
NET INCOME/(EXPENDITURE)
(8,809)
Transfers between funds
(31,789)
Net movement in funds
(40,598)
RECONCILIATION OF FUNDS
Total funds brought forward
446,484
TOTAL FUNDS CARRIED FORWARD
405,886		 2023
4
Restricted
funds
£
1,545,097
18,280
-
1,563,377
647,677
915,700
31,789
947,489
158,133
1,105,622		 2022
2
Total
funds
£
1,696,694
68,205
550
1,765,449
858,558
906,891
-
906,891
604,617
1,511,508

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

continued...

Page 19

CATALYST NETWORK OF CHURCHES

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Accruals and deferred income
16.
MOVEMENT IN FUNDS
Net
movement
At 1.1.23
in funds
£
£
Unrestricted funds
General fund
222,035
41,036
Designated funds
183,851
(72,625)
405,886
(31,589)
Restricted funds
Festival
14,303
(10,565)
Support of churches
827
-
Ukraine fund
989,701
(331,878)
Leadership weekend
1,304
(1,304)
Development fund
59,219
(24,354)
Covid-19 fund
7,454
-
Business redevelopment fund
32,814
(27,800)
Earthquake Appeal
-
294,957
Oxford Hub
-
42,100
1,105,622
(58,844)
TOTAL FUNDS
1,511,508
(90,433)		 2023
£
10,500
2023
£
14,386
Transfers
between
funds
£
(36,056)
52,709
16,653
-
-
-
-
(3,499)
(7,454)
-
-
(5,700)
(16,653)
-		 2022
£
39,594
2022
£
7,299
At
31.12.23
£
227,015
163,935		 2022
£
39,594
2022
£
7,299
390,950
3,738
827
657,823
-
31,366
-
5,014
294,957
36,400
1,030,125
1,421,075

continued...

Page 20

CATALYST NETWORK OF CHURCHES

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023

16. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated funds
Restricted funds
Festival
Support of churches
Ukraine fund
Leadership weekend
Development fund
Business redevelopment fund
Earthquake Appeal
Oxford Hub
TOTAL FUNDS		 Incoming
resources
£
149,389
96,597
245,986
5,439
46,594
61,733
-
-
5,750
548,419
134,535
802,470
1,048,456		 Resources
expended
£
(108,353)
(169,222)
(277,575)
(16,004)
(46,594)
(393,611)
(1,304)
(24,354)
(33,550)
(253,462)
(92,435)
(861,314)
(1,138,889 )		 Movement
in funds
£
41,036
(72,625)
(31,589)
(10,565)
-
(331,878)
(1,304)
(24,354)
(27,800)
294,957
42,100
(58,844)
(90,433)

Comparatives for movement in funds

Unrestricted funds
General fund
Designated funds
Restricted funds
Festival
Support of churches
Ukraine fund
Leadership weekend
Development fund
Covid-19 fund
Business redevelopment fund
TOTAL FUNDS		 At 1.1.22
£
246,870
199,614
446,484
14,303
827
8,443
-
62,807
27,987
43,766
158,133
604,617		 Net
movement
in funds
£
55,665
(64,474)
(8,809)
-
-
979,469
1,304
(3,588)
(20,533)
(40,952)
915,700
906,891		 Transfers
between
At
funds
31.12.22
£
£
(80,500)
222,035
48,711
183,851
(31,789)
405,886
-
14,303
-
827
1,789
989,701
-
1,304
-
59,219
-
7,454
30,000
32,814
31,789
1,105,622
-
1,511,508		 At
31.12.22
£
222,035
183,851
405,886
14,303
827
989,701
1,304
59,219
7,454
32,814

continued...

Page 21

CATALYST NETWORK OF CHURCHES

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023

16. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated funds
Restricted funds
Support of churches
Ukraine fund
Leadership weekend
Development fund
Turkey fund
Covid-19 fund
Business redevelopment fund
TOTAL FUNDS		 Incoming
resources
£
144,555
57,517
202,072
38,807
1,481,511
18,280
17,000
7,500
79
200
1,563,377
1,765,449		 Resources
expended
£
(88,890)
(121,991)
(210,881)
(38,807)
(502,042)
(16,976)
(20,588)
(7,500)
(20,612)
(41,152)
(647,677)
(858,558)		 Movement
in funds
£
55,665
(64,474)
(8,809)
-
979,469
1,304
(3,588)
-
(20,533)
(40,952)
915,700
906,891

The general fund represents cumulative surpluses since inception and are the free reserves of the charity.

The trustees have designated certain amounts to enable support for a variety of key areas, to ring fence from normal unrestricted funds available to the charity.

Festival: This fund represents surpluses on the activities of the Festival.

Support of churches: The church planting fund is for specific gifts given for specific church plants that Catalyst is involved in. These grants are used to pay grants for these churches or to fund other support given to them.

Ukraine fund: Catalyst is working with a number of churches based in Ukraine. These funds are used to support those churches.

Leadership weekend fund: These funds are used to support an annual weekend event in which Catalyst equips, inspires and releases leaders who make a difference in their environment.

Development fund: These funds are used to support New Frontiers churches and apostolic bases in the UK and overseas.

Turkey fund: These funds are used to enable the training of church leaders to equip them to fulfil their roles and support their churches.

Covid-19 fund: These funds are used to provide emergency food and medical relief to some of the poorest people affected by local Covid restrictions. Grants were made to over 70 churches/organisations in over 30 countries.

Business redevelopment fund: These funds are to help regenerate business adversely affected by the Covid-19 pandemic.

continued...

Page 22

CATALYST NETWORK OF CHURCHES

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023

16. MOVEMENT IN FUNDS - continued

Earthquake Appeal: These funds are to provide support and relief to those affected by the 2023 Earthquake in the Turkey / Syria border area.

Oxford Hub: These funds are working in partnership with a group of Catalyst churches to provide church planting support and to equip and train leaders.

17. EMPLOYEE BENEFIT OBLIGATIONS

The charitable company makes contributions to defined contribution personal pension plans for the employees whereby payments are made to an insurance company independent from the finances of the charitable company. Contributions are charged to the statement of financial activities as and when incurred. The charge for the year was £2,146 (2022: £1,272). At 31 December 2023 and 31 December 2022 there were no prepaid or outstanding contributions due.

18. RELATED PARTY DISCLOSURES

Grants totalling £nil (2022: £8,222) were received from, and grants totalling £27,500 (2022: £27,532) were paid to New Frontiers International Trust Limited, where Richard Wightman is a Trustee.

Grants totalling £9,080 (2022: £13,710) were received from, and grants totalling £13,650 (2022: £16,000) were paid to King's Arms Trust (Bedford), where Roydon Loveley and Simon Holley are Trustees.

Grants totalling £9,960 (2022: £51,405) were received from Jubilee Church, Coventry, where Andrew Simpkins is a Trustee.

Grants totalling £12,291 were received from, and grants totalling £12,522 were paid to New Life Church Milton Keynes in 2022, where Richard Wightman was a Trustee up to July 2022.

Key management:

Key management are considered to be the Trustees' whose remuneration is disclosed in the preceding notes to these financial statements.

Page 23

CATALYST NETWORK OF CHURCHES

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2023

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Grants
Investment income
Deposit account interest
Charitable activities
Charitable activities
Total incoming resources
EXPENDITURE
Charitable activities
Grants to institutions
Grants to individuals
Support costs
Management
Wages and salaries
Pensions
Travel
Support and other office costs
Finance costs
Information technology
IT and computer costs
Governance costs
Auditors' remuneration
Legal and professional fees
Total resources expended
Net (expenditure)/income		 2023
£
614,042
358,366
972,408
8,418
67,630
1,048,456
994,834
2,000
996,834
51,522
2,146
30,601
47,281
694
132,244
3,158
5,000
1,653
6,653
1,138,889
(90,433)		 2022
£
1,496,867
199,827
1,696,694
550
68,205
1,765,449
746,743
1,600
748,343
72,405
1,272
11,771
14,493
997
100,938
2,039
4,000
3,238
7,238
858,558
906,891

This page does not form part of the statutory financial statements

Page 24