EMMAUS ROAD COMMUNITY CHURCH Annual Report and Financial Statements For the year ended 31 March 2022 IA Company Limited by Guarantee) COMPANY NUMBER 08576457 CHARITY NUMBER 1152606
EMMAUS ROAD COMMUNITY CHURCH Contents For the year ended 31 March 2022 Page Trustees. report- statutory information Trustees, report 9-12 Independent auditor's report 13 Consolidated statement of financial activities 14 Consolidated balance sheet 15 Balance sheet 16 Consolidaled statement of cashflows 17-28 Notes to the financial statements
EMMAUS ROAD COMMUNITY CHURCH Trustees, report- ststutory information For the year ended 31 March 2022 DIRECTORS Mr Peter Greig Mr Christian Guy Mrs Rachel Bower Mr Mark Hulchinson Mr Clive Mather Mr lan Nicholson Ms Folake Ekundayo Mrs Rachel Zani Senior Pastor Chair Treasurer REGISTERED OFFICE The Founders Studio Millbrook Guildford Surrey GU13UT COMPANY NUMBER 08576457 CHARITY NUMBER 1152606 BANKERS The Royal Bank of Scotland 10 North Street Guildford GU14AF AUDITOR Jacob Cavenagh & Skeet Chartered Accountants 5 Robin Hood Lane Sutton Surrey SM12SW Page 1
EMMAUS ROAD COMMUNITY CHURCH Trustees, report (continued) For the year ended 31 March 2022 The trustees (who are also the directors) present their report and the audited financial statements of the charitable company for the year ended 31 March 2022. The stalulory information is shown on page 1. STRUCTURE, GOVERNANCE AND MANAGEMENT Emmaus Road Community Church is a company limited by guarantee, number 08576417 and it is governed by its Memorandum & Articles of Association. It is registered as charity number 1152606. The trustees are responsible for the legal and administralive running of the church. They are appointed by the exisling trustees and serve for a term of Ihree years before re-appointmenl. Trustees re1ve a copy of the Trustees Handbook on appointment and receive training as needs are identified. A number of our trustees bring a wealth of trusteeship and commerciallcharity experience to the board. The elders provide spirilual oversight, strategic direction and vision for the church. whi rin nin Peter Greig (Senior Pastor), Kate Millar (resigned 16 September 20221 lan Nicholson. Christian Guy. Rachel Bower, Clive Mather. Peter Keynes {resigned 14 December 20211, Mark Hutchinson (Treasurer), Folake Ekundayo {appointed 3 November 2022) and Rachel Zani (appointed 3 November 2022). The Board met 6 times during the year. The following people served as elders of Emmaus Rd Church.. Pele and Sammy Greig, Bill Cahusac (who stepped down in 20211, Adam and Hannah Heather, David and Louise Yeghnazar. We employed 18 full-time and 20 part-time staff members" Bill Cahusac {ft) Peter Burton lft} Matt Davis {ftl Sam Rae lftl Joel Hughes (ft) Jazz Crowne {ftl (resigned in July 2021) Andrea Burton {ptl (started in August 20211 Natalie Stafford-williams Iftl Erik Jespersen {ftl Rebecca Jespersen lftl Josh Heather lftl Richard Dawson (pt) Pete Greig (ptl. Holly Dobson Ipt) Sammy Greig Iptl, Sabine Bagyura lftl Adam Heather (ft). Jill Weber Ipt) Mike Slrong {ft) Natalie Raybould Ipt) Pastor {Guildfordl Worship Pastor Pastor (Aldershotl Children's Pastor Youth Pastor Head of Find Family Head of Find Family Prayer Co-ordinator Director of Social Transformation Director of Social Transformation Pastor Iwoking) Assistant Worship Pastor Senior Pastor EA lo Pete Greig (Maternrty Leave) Senior Pastor Events and Communications Manager Executive Pastor Director of Spiritual Formation Associate Pastor (Wokingl Kids Intem Page 2
EMMAUS ROAD COMMUNITY CHURCH Trustees, report (continued) For the year ended 31 March 2022 Naomi Weeks lftl Kale Flanders{ft) Joel Clark {ptl Mimi Bower (ft) Hope Andrea {pt) Alan Buckland (ft). Michelle Beeson (pt) Lucy Barker lftl Robbie Back Iptl Holly Back{ptl Patty Shepherd Ipt) Ben Foreman Ipt) Brenda Coxon Ipt} Brenda Slaughter Ipt} Caroline Page {ptl Linda McLachlan (pl) Emma Heather {ptl Susan Williams Ipt} Kids Pastor Worship Intern Children's Assistant Pastor Youth Intern Broadcast Technician Operations Director Finance and Operations Manager Head of Communications Student Pastor Student Pastor Office Manager Youth Worker Finance Assistant Communication Executive Finance Officer Finance Officer Pastoral Care (Wokingl LYN and Guildford Pastoral Co-ordinator The truslees, elders and certain members of staff (marked above) comprise the key management personnel ofthe church. The elders meet regularly as an oversightgroup and staff marked. meet every week as the Senior Leadership Team to oversee the day lo day running ofthe church. Forthe members of key management personnel who are paid, their pay is set by reference to an agreed pay banding scale which is reviewed annually. The church is part of the Inlernational Boiler Room Network of missional and monastic communities associated with the 24-7 Prayer movement. We work closely with other churches locally and the HTB network of churches nationally. We work closely with the Emmaus Transformation Trust to cary out social transformation work in Woking, Guildford and Aldershot and we also provide them with leadership and operational support. OBJECTIVES AND ACTIVITIES nd Pur os Emmaus Road exisls lo glorify God by making a measurable difference amongst the poor and the lost Ihroughout Ihe Guildford. Aldershol & Woking Region. Our essential beliefs are outlined in the Nicene Creed of 325 AD. The aclivities that the charity undertook to meet these objectives are summarised in the achievements and performance section of this report below. The directors hereby confirm that Ihey have complied with section 4 of the Charities Acl 2006 and have provided explanations of the ways in which the local community have benefited from the range of activities and courses hosted by Emmaus Rd during the past year. These benefits include an extensive range of youth and children's work, educational work in local schools, mentoring in secondary schools, drop in youth café, providing practical support for needy families, parenting workshops, pastoral care. marriage preparation and support, debt counselling. evangelism, prayers for society and regular public acts of worship. Page 3
EMMAUS ROAD COMMUNITY CHURCH Trustees, report (continued) For the year ended 31 March 2022 ACHIEVEMENTS AND PERFORMANCE The 2021122 financial yearfor Emmaus Rd has been a year ofemerging from the lockdowns of2020121. This was not without its challenges, but we are very encouraged to see that by end of March 2022, we have had close to 200 new people join Emmaus Rd. In terms of key achievements and perfomance through 2021122, Ihese have been- Opening our newly refurbished Founders Studio in Guildford: We commenced a major refurbishment of our Founders Studio in July 2020 and this was completed in April 2021. With Founders re-open, we were able to slart socially distanced in-person meelings on a Sunday. Although our numbers were limiled to a max of 70 people for each meeting, Ihere was considerable demand for spaces (which we had to lickell as people enjoyed meeting and worshipping in-person again. Initially people came from our Aldershot, Guildford and Woking congregations as our normal meetings venues in these locations were not yet open to us. Movlng back Into our normal meetlng venues In Gulldford and Woklng As 2021 progressed, and the meeting venues we had used before lockdown became available to us again (Yvonne Arnaud Theatre in Guildford and Hoe Valley School in Woking), our Guildford and Woking congregations re-established meeting together on a Sunday. Numbers gradually increased through the year as people became more comfortable meeting again and we were able after time to re- establish our childrens and youlh work on a Sunday in each location. Launched in-person Sunday meetings in Aldershot We had planned to launch our Aldershot congregation in 2020 which, because of lockdown, did not happen as we had expected. Launching a new church planl during a pandemic was certainly not ideall However, as 2021 progressed, we were able to start a physical meeling for the Aldershol congregation for the very first time in a church hall (Park Church Hall). This was a major achievement for us and Ihe church has already started to grow. Our online Sunday Services In place ofour nomial Sunday gatherings, we eslablished a Livestream Sunday service in Marth 2020 which was available for anyone lo join. As well as the existing church family, we had people joining us from all over the UK and overseas, with people joining from as far afield as New Zealand. We also developed a Sunday children's online service for children and parents to join as well as an online youth gathering. These all helped people connect through periods of lockdown and isolation. In the first part of 2021, we continued with our Livestream Sunday Service as we had people who were either shielding or were not comfortable with meeling in-person. However, as our in-person gatherings started to re- establish and increase, we found Ihat running in-person gatherings and a Livestream at the same time was increasingly challenging. We therefore moved gradually away from Livestreaming lo filming the sermon and releasing this on the Sunday afternoon for people to be able to watch. Being able to Livestream had served us well, but our focus was on gathering again in-person which was fully re- established by end of March 2022. Page 4
EMMAUS ROAD COMMUNITY CHURCH Trustees, report (continued) For the year ended 31 March 2022 Small Groups Away from Sundays, our variety of small groups had moved to weekly zoom meetings in 2020 where they could. Although not as engaging as meeting in-person, these zoom meetings gave people the opportunity to connect and support each other. As 2021 progressed, small groups slarted to meet again in-person. initially as hybrid meelings where people were in-person and online. As 2021 progressed inlo 2022, most of our small groups moved fully to in-person gatherings. Prayer During 2020. we started a morning and evening zoom time for worship and prayer every day. This later expanded to include lunchtimes. These daily sessions were very well attended and in this we have seen a considerable strengthening of our corporate prayer life which we see as vital to our church life. Slrengthening our corporate prayer life had been a key objective for us for a while - liltle did we realise that a pandemic was going to facilitate that through the introduction of zoom meetings. So successful has the use of zoom been for enabling us to have 3 prayer sessions every day, that we have continued with these through 2021122 and meeting 3 times a day to pray is now firmly established for us as a church. This resulted in us having over 1,000 prayer meetings in 2021122. We were also involved in 2021122 with a group of churches in developing a new prayer resource called 'Unique and United, which is aimed at helping the UK church pray into racial reconciliation. Alpha In tems of helping people discover who Jesus is, we had moved our Alpha courses in 2020 online via zoom. Alpha helps people explore who Jesus is through a series of videos and group discussion over a period of weeks. As people found meeting online easier as they did not have to travel to a venue and had no challenges like finding babysitters for an evening, we continued with online Alpha courses in the first half of 2021. However, in September 2021, we moved to holding in-person Alpha courses in Aldershot. Guildford and Woking. In doing this. we partnered wilh Holy Trinily Brompton IHTB} church who slarted the Alpha courses many years ago. They supported us with promoting the in-person courses as part of their 'Reach a Nation, campaign and we were very encouraged to have new people join our Alpha courses in-person for the very first time in 2021122. A particular highlight was joining with other churches in Guildford to host Alpha for over 100 young people, 30 ofwhich came from Emmaus Rd. Social Transformation To focus on those suffering hardships as a result of the pandemic, we had launched our Love your Neighbour programme in early April 2020. Love your Neighbour looked to link those able to "give help'to those needing to "get help". This covered practical needs le.g. collecting shopping), emotional needs {e.g. through speaking lo isolated people on the telephone}, and financial needs for Ihose struggling as a result of the pandemic le.g. because of suddenly losing employment). We created an online system to manage this and over the year saw around 300 volunteers provide help to many people across Aldershot, Guildford and Woking needing help. Our ability to provide financial support for people struggling had a major impact for many. In 2021122. we continued wilh our Love your Neighbour programme, however, the requesls for practical and emotional help started to diminish and our focus became helping those with financial needs struggling because of crisis situations they were encountering. This has been and continues to be a major positive impact for people in our local communities. Page 5
EMMAUS ROAD COMMUNITY CHURCH Trustees, report (continued) For the year ended 31 March 2022 During 2021122, we established Emmaus Transformation Trust as a subsidiary of our Emmaus Rd Community Church charity. ETT is a charity which focuses on social action and support through a variety of projects, from food provision via a foodbank, debt advice, baby bank, mental health support, support with employability, etc. These projects operate out of buildings called Lighthouses. Some of the highlights of the work carried oul through our ETh charity include.. 5,000+ people supported through our Foodbank £200k of debt written off through our Community Money Advice £15k of new shoes provided for children startinglreturning to school 1,100 Christmas Kindness packages given out to those struggling at Christmas Establishing a Family Hub supporting young families in Woking Starting youth support and isolated older people support on an estste in Woking through the opening of a new Lighthouse on that estate 21,000 hours of volunteer time in our Lighthouses in Emmaus Rd makes Ihe safety of children, young people and vulnerable groups our highest priority and we therefore enforce and review our safeguarding policy rigorously. This policy includes DBS checks of all workers, appropriate recruitment produre$, instructions on how to deal with disclosures and concerns, and guidelines to help workers operate in an effective and appropriate manner. 2021122 has been a year for us as a church to emerge from the lockdowns of the previous year. This has provided a unique set of challenges as we have never had to do this before! l am very pleased to say that the Emmaus Rd leadership team. led by Pete Greig, have responded incredibly well and have conlinued lo do an excellent job leading the church through Ihis lime, bringing vision, faith and wisdom. This has helped us emerge and re-establish as a church family who meel together in-person to support and help each other, along with those in our community. Supporting Ihose facing challenges in our local communities as a result of the impact of the pandemic has continued to be a major focus for us through the year. Initially through our own Love your Neighbour programme which we launched at Ihe beginning of the pandemic. and then. at the end of 2021. when we estsblished Emmaus Transformation Trust as a subsidiary to Emmaus Rd Community Church. This has enabled us to continue our focus on loving our neighbours and bringing practical, emotional and financial support to many experiencing hardship across our communities. In this, we have seen an incredible army of volunteers step forward lo bring their skills and passion to serve our communities. I would also like to highlight the launch of our Aldershot church plant in 2021122. We had hoped to launch in 2020 but lockdowns prevented us doing thal. However, l am so pleased that we now have established this new town congregation. This, Coupled with increasing people joining us across all our three lown congregations. is something we find so encouraging as we see more people wanting to join us as we look to follow Jesus, build family and help transform communities. As l indicated last year, we decided on a major refurbishmenl of our Founder's Studio in Guildford which we had purchased in May 2019. We use this building for student and youth work, children's groups, evening meetings and for use by other charities and organisations. The refurbishment was completed in April 2021 and we are enjoying using what is a very different and lovely building. We have had challenges with getting to a final account wth the contractors who undertook the work, bul l am glad to say Ihat has now been sorted. Page 6
EMMAUS ROAD COMMUNITY CHURCH Trustees, report (continued) For the year ended 31 March 2022 l am very pleased to say that the charity's finances have remained in a healthy stsle even with the challenges with the Founders refurbishment I have already referenced. People continue lo be very generous and we are very grateful for this. It is enabling us to do so much as a church and in our communities. Finally, on behalf of the Truslees, I would like to thank everyone who makes up the Emmaus Rd community for their conlribution in making our church what we are today and together, we look fomard to what God has planned for us in the future. FINANCIAL REVIEW The charity is in a healthy state financially. The charity recognises the propriety of not building up funds for which there are no clear expenditure plans. The charity s policy is to allow reserves to accrue to a level of three months, average expenditure, plus funds that may be earmarked for specrfic projects in the future. As the charity is still growing, reserves may only exceed this policy level in order to be able to respond positively to new opportunities. This situation is actively monitored lo ensure that reserves do not build up unnecessarily. The group had total funds of £2,137,728 at the end of the year of which £152,297 were restricted. Designated funds consisl of a £300,000 fixed cost reserve should income be below expectations plus £42,936 for foodbank stock. £1,772,606 is invested in fixed assets, which leaves free reserves at a deficit of £130,111. The charity had total funds of £1,805,303 at the end of the year of which £85,592 were restricted. Designated funds consisl of a £300,000 fixed cost reserve should income be below expectations £1,767,711 is invested in fixed assets, which leaves free reserves at a deficit of £348,000. In line with the reporting requirements included in the Charities Act 2016, the trustees are pleased to confirm Ihat all fundraising is undertaken in compliance with besl fundraising practice. During the year we did not employ any professional fundraisers. There were no complainls or crilicisms during the year about our fundraising activities. nt The trustees have considered the risks lo which the church is exposed and uses a risk register to manage the risks. The principal risks identified are.. Financial Income is derived from individuals who attend Ihe church with no certainty of future giving. We have a rigorous annual budgeting process and monthly reporting to highlight any concerning trends or loss of donors. Our finance policy is closely observed by all staff to ensure careful spending to budget. Vulnerable People We work directly with a number of vulnerable adults and there are over 200 under 18s in the church. We have a robust Safeguarding policy which is reviewed annually, a safeguarding lead and 3 safeguarding deputies. All staff, trustees and those working with vulnerable people are safeguarding trained annually. Page 7
EMMAUS ROAD COMMUNITY CHURCH Trustees, report (continued) For the year ended 31 March 2022 Reputational There is always the risk of adverse publicity if a sermon or speaker doesn't fit with the prevailing cultural narrative- all talks are online. Some of the key leadership team have a public profile Iherefore are more exposed to criticism. We have a mature Eldership and Trustee team and within that experts in reputational risk who help us proactively mitigate against this risk PLANS FOR FUTURE PERIODS Our plans for the future are very much to build and consolidate following the pandemic. We believe the cosl-of-living challenges are going to have a major impact for our communities and we want to be a church who are able to support people through this time, providing faith hope and kindness. We will conlinue our focus on social transfomalion and are looking to establish Guildford and AldetEhot Lighthouses to support our social transformalion ministry. We will continue to invest further into staff training and development, deepen discipleship through our small groups and develop the culture of prayer within the church. STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are responsible for preparing the Annual Report and the financial statements in accordance wilh applicable law and regulations and have had regard to the Charity Commission's guidance on public benefit. Company law requires the trustees, who are the directors for the purposes of company law, to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Under company law the trustees must not approve the financial statements unless they are salisfied that they give a true and fair view of the state of affairs of the company and of ils incoming resour$ and applicalion of resources, including the net income or expenditure, of the company for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently., makejudgments and accounting estimates that are reasonable and prudent; slate whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial statements- prepare the financial statements on a going concem basis unless it is inappropriate to assume thal the company will be able to continue in operation. The trustees are responsible for keeping adequate accounting records Ihat are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets ofthe company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Page 8
EMMAUS ROAD COMMUNITY CHURCH Trustees, report (continued) For the year ended 31 March 2022 Each of the trustees has confirmed that there is no relevant audit 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 appropriale steps to identify such relevant information and lo establish that the auditor is aware of such informalion. AUDITOR Jacob Cavenagh & Skeet were Ihe charilable company s auditors during the year and have expressed their willingness to continue in thal capacity. The above report is prepared in accordance wth the special provisions relating to small companies within Part 15 of the Companies Act 2006. Approved by the trustees and signed on their behalf by.. Rachel Bower {Chairman} Date.. 20 December 2022 Page 9
EMMAUS ROAD COMMUNITY CHURCH Independent auditor's report to the members of Emmaus Road Community Church For the year ended 31 March 2022 OPINION We have audited the financial statements of Emmaus Road Community Church (the 'parenl company'} and its subsidiaries ('the group'l for the year ended 31 March 2022 which comprise the consolidated Slatement of Financial Aclivities, the consolidated and parent Balan Sheels, the consolidated Statement of Cash Flows and notes lo 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.. give a true and fair view of the state of the group's and of the parent company's affairs as at 31 March 2022 and of the group's incoming resOUrS and application of resources for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with Ihe requirements of the Companies Act 2006. BASIS FOR OPINION We conducted our audit in accordance with Internalional Standards on Auditing (UK) IISAS {UK)l and applicable law. Our responsibilities under those stsndards are further described in the Auditor's responsibilities for the audit of the financial ststements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial ststements 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 ihe financial statements, we have concluded that the trustees, use of the going concern basis of accounting in Ihe preparation of the financial statements is appropriate. Based on the work we have perfomied, 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 12 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 Ihereon. 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 othenNise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine 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. Page 10
EMMAUS ROAD COMMUNITY CHURCH Independent auditor's report to the members of Emmaus Road Community Church (continued) For the year ended 31 March 2022 OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the WO undertaken in the course of our audil.. the informalion given in the Truslees, Report, which includes the directors, report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements- and the directors. report included wilhin the Trustees, Report has been prepared in accordance with applicable legal requirements. MAThERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of the knoedge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report included with the Iruslees, report. We have nothing to report in respecl of the following malters in relation to which the Companies Act 2006 requires us lo report to you if, in our opinion- adequate accounting records have not been kept by the parent company. or returns adequate for our audit have nol been received from branches not visited by us., or the parent company financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit., or the trustees were not entitled to prepare the financial statements in accordan with the small ompanies regime and take advantage of the small companies exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. RESPONSIBILITIES OF TRUSTEES As explained more fully in the truslees, responsibilities statement, the truslees, (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 malerial misstatemenl, whether due to fraud or error. In preparing the financial stalemenls, the trustees are responsible for assessing the group's and the parent company's ability lo continue as a going COnrn, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent company or to cease operations, or have no realistic allernative but to do so. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whelher the financial slatemenls as a whole are free from material misslatemenl, 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 malerial if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on Ihe basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is delailed below: Page11
EMMAUS ROAD COMMUNITY CHURCH Independent auditor's report to the members of Emmaus Road Community Church (continued) For the year ended 31 March 2022 Based on our understanding of the group, we identified that the principal risks of non-compliance with laws and regulations related to employment, safeguarding, health and safety and financial reporting legislation and we considered the extent to which non-compliance might have a material effect on the financial slalements. We also considered those laws and regulations that have a direcl impact on the preparation of the financial statements such as the Companies Act 2006 and Ihe Charities Act 2011. We assessed the susceplibility of Ihe group's financial slalemenls lo material misslalement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team. We determined that the principal risks were related to management bias in accounting estimales, presentation of separately disclosed items, disclosure of related party transactions and management override of controls. In response to the risks identified we designed procedures which included. but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation identifying and testing joumal entries reviewing Trustees meeling minutes reviewing related party information evaluating the charity s internal controls challenging significant accounting estimates There are inherent limitations in the audit prOdureS described above. The more removed that laws and regulations are from financial transactions. the less likely il is that we would become aware of noncompliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate wncealment or Gollusion. A further description of our responsibilities for the audit of the financial ststements is located on the Financial Reporting Council's website at.. http'.lkn.frc.org.uklauditorsresponsibilities. This description forms part of our auditols 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 regulations made under that Art. Our audit work has been undertaken so thal we might state to the charitable company's members those matters we are required to stale 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 ils members as a body, for our audit wo, for this report, or for the opinions we have formed. Paul Newton FCA (Senior Statutory Auditor) for and on behalf ofJacob Cavenagh & Skeet Statutory Auditor Chartered Accountants 5 Robin Hood Lane Sutton Surrey SM1 2SW 2111212022 Daled= Page 12
EMMAUS ROAD COMMUNITY CHURCH Consolidated statement of financial activities For the year ended 31 March 2022 2022 2021 Unrestr- icted Funds Restr- icted Funds Tolal Unrestr- icted Funds Restr- icted Funds Total Note Income from: Donations and legacies Donation of Emmaus Transformation Trust Investments Charitable activities Other trading activities Total Income 1,374,722 160.488 88,769 1,463,491 90,202 250,690 1,482,316 448,575 1,930,891 85 21,128 353 1,060 353 1,060 20.748 380 1 558 330 179352 1 737682 1483729 448575 1 932304 Expenditure on: Trading costs Charitable activities Governance costs Total expenditure 3,982 1.292,886 3,982 121.628 1,414,514 976,953 289,418 1,266.371 1 308 684 121628 1430312 1005688 289418 1295106 Net income 249,646 57,724 307,370 478,041 159,157 637,198 Transfers funds between 11 100 000 1100 000) Net funds movement 349,646 142,276) 307,370 761,739 {124,5411 637,198 Reconciliation funds Total funds brought fonmard of 1635 785 194573 1830358 874046 319114 1 193160 forHard All of the activilies are continuing. There were no recognised gains or losses other than those stated above. The notes on pages 17 to 28 form part ofthese financial slatements. Page 13
EMMAUS ROAD COMMUNITY CHURCH Consolidated Balance sheet As at 31 March 2022 2022 2021 Note Fixed assets Tangible assets 1,772,606 1,495,872 Current assets stock 41,615 Debtors 333,300 16,359 Cash at bank and in hand 525 229 820 089 900,144 836,448 Creditors.. Amounts falling due within one year {142 296} 1815001 Net current assets 757 848 754 948 Total assets less current liabilities 2,530.454 2,250,820 Creditors= Amounts falling after more than one year { 392 7261 420 4621 Net assets Funds.. General Fund Restricted funds 1,985.431 152 297 1,635,785 194573 Total Funds These financial statements have been prepared in accordance wilh the provisions available to companies subject lo the small companies, regime within Part 15 of the Companies Act 2006 and with the Financial Reporting Standard 102 IFRS 1021. The financial statements were approved by the Board of Directors on 20 December 2022 and signed on its behalf by.. Rachel Bower- Chairman Company Registration No: 08576457 Page 14
EMMAUS ROAD COMMUNITY CHURCH Company balance sheet For the year ended 31 March 2022 2022 2021 Note Flxed assets Tangible assets 1,767,711 1,495,872 Current assets Debtors 301,760 16,359 Cash at bank and in hand 261559 820 089 563,319 836,448 Creditors.. Amounts falling due within one year {133 001} 1815001 Net current assets 430 318 754 948 Total assets less current liabilities 2,198,029 2,250,820 Creditors= Amounts falling after more than one year (392 7261 420 4621 Net assets Funds.. General Fund Restricted funds 1,719,711 1,635,785 194573 Total Funds The charity net expenditure for the year was £25,05512021.' Net income £637,198). These financial statements have been prepared in accordance with the provisions available to companies subject lo the small companies, regime within Part 15 of the Companies Acl 2006 and with the Financial Reporting Standard 102 IFRS 1021. The financial statements were approved by the Board of Directors on 20 December 2022 and signed on its behalf by.. Rachel Bower- Chairman Company Registration No: 08576457 Page 15
EMMAUS ROAD COMMUNITY CHURCH Consolidated statement of cash flows For the year ended 31 March 2022 2022 2021 Cash provided by operating activities 32,471 759,682 Cash flows from investing activities Interest receivable Purchase of tangible fixed assets 85 {301241} 353 629 6301 Cash (used in) investing activities {301 156) 629 2771 Cash flows from financing activities Repayment of borrowing { 26 175} 25 1591 Cash (used in)Iprovided by financing activities 126 175) 125 1591 IDecrease)Ilncrease in cash and cash equivalents during the year Cash and cash equivalents as at 1 April {294,860) 105,246 820 089 714 843 Cash and cash equivalents as at 31 March Reconciliation of net movement in funds to cash used in operating activities 2022 2021 Net movement in funds Add back deprecialion charge Interest re1vable Ilncrease} in stock (Increase}IDecrease in debtors Increase in creditors 307,370 24,507 85) 141,615) 1316.941) 637,198 11,295 1 3531 77.965 Net cash provided by operating activities Analysis of changes in net debt At 1.4.2022 Cash flows Non<ash changes At 31.3.2022 Cash Loans falling due within one year Loans falling due after more than one year 820,089 1294,860) (26.443) 11.561) 1420 462) 525,229 128,0041 392 7261 Page 16
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 1. ACCOUNTING POLICIES Emmaus Road Community Church is a private company limited by guarantee incorporated in England and Wales. The registered office is The Founders Studio, Millbrook, Guildford, Surrey, GU13UT. la. Basis of accounting These financial statements have been prepared in accordancewith FRS 102"The Financial Reporting standard applicable in the UK and Republic of Ireland" {"FRS 102"), "Accounling and Reporting by Charities" the Stalement of Recommended Praclice for charities applying FRS 102. the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 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 amounls in these financial statements are rounded to the nearest £. The financial statements have been prepared on the hislorical cost convention. The principal accounting policies adopted are set out below. 1b. Going concern Preparalion of Ihe accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. 1c. Consolidation The group financial statements combine the results of the company and its subsidiary undertaking, Emmaus Transformation Trust. whose nel assets were gifted on 15 December 2021. The church has the power to appoint the majority of the trustees of the Trust and is therefore considered to have control oflhe Trust. Emmaus Road Community Church and Emmaus Transformalion Trust both have reporting dates of 31 March. A separate Statement of Financial Activities for the charity itself is not presented. 1d. Tangible fixed assets Tangible fixed assets for use by the charity, are capitalised if they can be used for more than one year, and cost at least £1,500. They are valued al cost or, if gtfted, at the value to the charity on reipt. Depreciation has been calculated on a straight line basis. The rates applied per annum are as follows.. Fixtures and Fittings 250/. Equipment 25 % Computer Equipment 25% No depreciation has been charged for freehold property on the basis that the residual values are not likely to be materially less than the carrying values, such that depreciation is immaterial le. Taxation The charitable company is exempt from taxation under part 11 of the Corporation Tax Act 2010. Page 17
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 1. ACCOUNTING POLICIES (CONTINUED) 1f. Pensions The pension costs charged in the accounts representlhe contributions payable by the companyduring the year. 1 g. Stocks Donations in kind of food are recognized at estimated fair value on receipt at £1.75kg as recommended by the Trussell Trust. 1h. Debtors Trade debtors and olher debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. 11. 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 opening of the deposit. 1j. Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation arising from a past evenl 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 recognised at their settlement amount. Income relating to grants that has been received bul not yet earned is treated as deferred income. 1k. Financial instruments The chariiy only has financial assets and liabililies of a kind Ihat qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 11. Funds Restricted Funds These are restricted income funds given to the charity for specific purposes. They are expendable by the trustees in furtherance of particular projects within Ihe charity objects. Unrestricted Funds These are funds expendable at the discretion of the trustees in furtherance of the objects of Ihe charity. These include any designated funds which are set according to the judgement of the trustees. lm. Commitments under operating leases Rentals under operating leases are charged to the Statement of Financial Activities as they fall due. Page 18
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 1. ACCOUNTING POLICIES (CONTINUED) ln. Income recognition Donations and other incoming resources are included in the Statement of Financial Activities (SOFA) when the charily has entitlement to the income, it is probable the income will be received and the amount can be reliably measured. Grant income is accounted for on an accruals basis, matching il to Ihe actual projects undertaken in the period ralher than uniformly over Ihe grani period 10. Expenditure recognition All expendilure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities and has been classified under headings thal aggregate all costs related lo the category. Charitable activities comprise expenditure directly related to the objects of the charity, including project management and support functions including any related provisions. It also includes governance costs, which comprise expenditure to comply with statutory and legal requirements. 2. NET INCOME - GROUP 2022 2021 This is stated after charging: Depreciation 24,507 11,295 Auditors, remuneration (inclusive of VAT).. External auditor Page 19
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 3. INCOME- GROUP Unrestricted Restricted Funds Funds Total 2022 Total 2021 Donations and legacies Churches and Organisations Donated food Gift Aid Refunds Gifts from Individuals 38,575 11,245 26,938 2.079 49,820 26,938 184.725 178,029 1202 008 1593 702 1463 491 1 930 891 159,160 182,646 1 153 501 1374 722 Donation of Emmaus Transformation Trust 160488 250 690 Investment income Bank interest receivable 84 84 85 85 353 353 Charitable activities Event management Rental income Cosy café 11,853 2,225 380 12,233 2,225 1,060 380 Other trading activities Sale of merchandise Total income Page 20
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 4. EXPENDITURE ON CHARITABLE ACTIVITIES - GROUP Unrestricted Restricted Funds Funds Total 2022 Total 2021 Depreciation Expense Events and Courses Foodbank Social Transformation Giving and Bursaries Hospitality Costs Jigsaw Kids and Youth Love your Neighbour Mission Partners Operations Pastoral Paslors Prayer and Worship Rent and rates Social transfomation Staff Training and Development Students Aldershot Woking One off Projects 24,507 11,132 5.840 24,507 11,132 74,698 3,280 13,575 11,417 19,085 134,873 29,266 35,907 449,441 59,656 148,780 90,096 81,056 92,503 20,113 40,505 8,317 7,632 11,295 12,289 68,858 3,280 145,088 41,563 3,657 13,575 11,417 19,085 134,873 119,366 112,057 38,166 304,920 81,141 145,417 72,856 33.315 89,823 21,569 29,271 2,759 1,819 29,266 35,907 449,441 59.656 148,780 90,096 81,056 92.503 20,113 40,505 8,317 7,632 GOVERNANCE COSTS - GROUP Auditor Auditors, fee.. accountancy Legal and Professional Fees 5,876 1,700 5,876 1,700 4,986 Page 21
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 4a. GRANTS PAYABLE - GROUP Total Total 2022 2021 Grants to Organisations 24-7 Prayer Emmaus Transformalion Trust Cambodia Hope Organisation (CHO) Matrix Elam Ministries Grants < £1,000 21,160 14,160 132,619 2,433 3,200 1,200 1,200 1,200 25.490 156.690 Grants to Individuals Mission Partners Love Your Neighbour1340 individuals) 9.640 14.094 107 828 27 5.TRUSTEES'AND KEY MANAGEMENT PERSONNEL REMUNERATION AND EXPENSES - GROUP The total employee benefits of the key management personnel of the charity was as follows: 2022 2021 22 14 During the financial year Director Mr Peter Greig received £39,593 (2021.. £38,467) in remuneration in his capacity as Senior Pastor. During the financial year Mrs Sammy Greig {Spouse to Director Mr Peter Greig) received £6,060 12021: £5,714} in salary related payments in her capacity as Team Leader. These payments are pemilted by section 5.2.9 of the Memorandum & Articles of Association. No trustee expenses were incurred during the year {2021: £Nill. 6. STAFF COSTS - GROUP 2022 2021 Wages and salaries Social security costs Pension costs 755,576 56,641 620,034 53,013 No employee earned more than £60,000 per annum. The average monthly number of employees during the year was 32 {2021'. 25). Page 22
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 7. TANGIBLE FIXED ASSETS Group Assets in the Freehold Course of Fixtures& Property development Equipment 0% 0% 25Q/. Total Costs At 1 April 2021 Additions Transfers Transferred from ETT Disposals At 31 March 2022 850,000 603,975 295,494 (899,469) 74,316 2,996 68,529 3,000 1,528,291 298,490 830,940 3,000 1680 940 148 841 1829 781 Depreciation At 1 April 2021 Charge for the year Transferred from E Adjustments for disposals At 31 March 2022 32,419 24,507 249 32,419 24,507 249 Net book value At 31 March 2022 At 31 March 2021 Company Assets in the Freehold Course of Fixtures& Property development Equipment O°/0 0% 25°/0 Total Costs At 1 April 2021 Additions Transfers Disposals At 31 March 2022 850,000 603.975 295.494 {899.469) 74,316 1,528,291 295.494 830.940 68.529 1 680 940 142 845 1823 785 Depreciation At 1 April 2021 Charge for the year Adjustments for disposals At 31 March 2022 32,419 23,655 32,419 23,655 Net book value At 31 March 2022 At 31 March 2021 41 Page 23
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 8. DEBTORS 2022 Company 2021 Group Company Group Tax Recoverable other debtors Prepayments 27,210 296,816 27,210 265,276 13,076 13,076 9. CREDITORS Amounts falling due within one year 2022 Company 2021 Group Company Group Bank loans Trade creditors Accruals Other creditors 28,004 950 59,576 28,004 26,443 26,443 52,896 27,637 27,637 Amounts falling due in more than one year 2022 Company 2021 Group Company Group Bank loans This loan is secured by means of a first charge over the premises at The Founders Studio, Millbrook, Guildford, GU13UT. 10. SUBSIDIARY Emmaus Transfomation Trust, company number 03549934 and registered charity number 1069902, became a subsidiary during the year (see note 15). Its registered office is The Lighthouse, 8-10 High Street, Woking, Surrey GU216BG and it is a subsidiary as the church has the powerto appointthe majority of the trustees. At 31 March 2022 it had net funds of £332,425, its gross income was £623,666 and surplus for the year was £50,323. The portion included in the consolidated accounts is detailed in note 15 below. Page 24
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 11. FUNDS 2022: Group Balance at 1.4.2021 Income Expenditure Transfers Balance at 31.3.2022 General fund 1 335 785 1512 044 1305 3341 100 000 1642 495 Designated funds Foodbank Fixed costs reserve 46,286 13,3501 42,936 300 000 300 000 300 000 133501 Restricted funds Love your Neighbour DCMS Ukraine Appeal Guildford Youth Event Community Lunch Co-op Local Community Foodbank ASDA Grace Fund Jigsaw Jigsaw Hub No 11 Nurture Fund Outside Light Foodbank 22,428 172.145 12.243 338 10,604 380 1,867 341 36 6,840 25,861 4,000 2,763 2,550 111529 179 352 (29,2661 1 3,2801 {100.000) 5.405 69,203 10,604 380 1,625 341 2421 361 6,840 10,776 (15,0851 ( 4,0001 8281 691 (68 8221 11216281 (100 000) 1,935 2,481 194 573 152297 Total funds The £100.000 transfer out of DCMS is a donation from the church to Emmaus Transformation Trust. Page 25
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 11. FUNDS (continued) 2022: Company Balance at 1.4.2021 Income Expenditure Transfers Balance at 31.3.2022 General fund 1 335 785 1343 585 1259 6591 1419711 Designated funds Fixed costs reserve 300 000 300 000 300 000 300 000 Restricted funds Love your Neighbour DCMS Ukraine Appeal Guildford Youth Event 22,428 172.145 12.243 338 10,604 380 (29,266) (103,2801 5.405 69,203 10,604 380 194 573 132 5461 Total funds 2021: Group and company Balance at 1.4.2020 Income Expenditure Transfers Balance at 31.3.2021 General fund 594 046 1483 729 1925 6881 183 698 1335 785 Designated funds Development Fixed costs reserve 80,000 200 000 280 000 180,0001 100 000 100 000 300 000 300 000 180 0001 Restricted funds Building Fund Cambodia Fund Building Fund 01 Building Fund 03 Love your Neighbour DCMS Youth 63,388 2.433 125.000 125.000 3,143 129,6901 {2,4331 {33,698) 1125,000) 1125,000) 131,342 317.233 (112,0571 (145,0881 22,428 172,145 150 319114 448 575 1289 4181 {283 698} 194 573 Total funds The building fund was set up in 2014 to build a fighting fund for a building purchase in the future and to hold any restricted gifts given for that purpose. The DCMS Fund supports our Social Transformation worklprojects. The Cambodia Fund supports a particular charity in Cambodia that we visit with mission teams. Page 26
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 11. FUNDS (continued) Declarations 01 & 03 were not renamed until June 2020 following the decision to proceed with the Founders refurb for which they were then used at the request of the donor. For the time period of these accounts, the donor had said they were to support social transformation activities. The Love your Neighbour restricted funds was set up in response to the covid-19 pandemic and our desire to help those affected. The Emmaus church family started to give to the fund at the end of MarGh 2020 so we could support those financially impacted as a result of covid-19. The Youth Fund was the result of a restricted gift given for the specific use of wilhin Youth work. The Ukraine Fund was set up in 2022 to assist Ukrainians fleeing the war in Ukraine. The Guildford Youth event is an evenl held jointly by Guildford Churches. The other restricted funds are to support specrfic projects within ETT with the titles shown. 12. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2022: Group Unrestricted Restricted Funds Funds Total 2022 Tangible fixed assets Current assets Current liabilities Non Current liabilities Total Net Assets 1,772,606 747,847 1142,2961 1392 7261 1,772,606 152,297 900.144 1142,2961 1392 726} 2022: Company Unrestricted Restricted Funds Funds Total 2022 Tangible fixed assets Current assets Current liabilities Non Current liabilities Total Net Assets 1,767,711 477,727 1133,0011 1392 7261 1,767.711 85,592 563,319 1133,0011 1392 7261 Page 27
EMMAUS ROAD COMMUNITY CHURCH Notes to the financial statements For the year ended 31 March 2022 (continued) 12. ANALYSIS OF NET ASSETS BETWEEN FUNDS (contlnued) 2021: Group and company Unrestricted Restricted Funds Funds Total 2021 Tangible fixed assets Current assets Current liabilities Non Current liabilities Total Net Assets 1,495,872 641,875 1 81,5001 1420 4621 1,495,872 194.573 836.448 1 81,500} 1420 4621 13. RELATED PARTIES During the year, the charity made support payments to mission partners, The Matrix, of£1,200 (2021= £3,200) and 24-7 Prayer of £21.160 (2021= £14.160). Peter Greig and lan Nicholson are also trustees of 24-7 Prayer and The Matrix, respectively. lan Nicholson is also a Irustee of Emmaus Transformation Trust, along with Peter Keynes, to which the charity donated £100,000 12021.. £132,619}. The total amount of donations received from trustees was £51,82512021'. £36,710). 14. PENSION COMMITMENTS The charity makes contributions in respect of its stsff to a multi-employer defined contribution pension scheme operated by the Pensions Trust. It is not possible, given the nature of the scheme, to determine the charity's share of the scheme's assets and liabilities. The total contributions made lo the scheme during the year amounted to £14,72112021.' £11,849). Pensions were funded from additional unrestricted income generated. 15. SUBSIDIARY ACQUISITION On 15 December 2021, the changes to the Memorandum & Articles of Association of Emmaus Transformation Trust were approved by the Charity Commission. From this date onwards Emmaus Road Community Church has the power to appoint the majority of the trustees of the Trust and therefore the Trust is now a subsidiary of the church. In the accounts of Ihe church this is shown as a donation of Ihe assets and liabilities at the date of acquisition. Assels acquired.. Results since acquisition.. Fixed assets Stock Debtors Cash al bank Creditors Nel assels acquired 4,895 39,716 24,152 199.310 { 17 382} 250 691 Income 21 Surplus &LlaS Page 28