**REGISTERED COMPANY NUMBER: 08703834 (England and Wales) REGISTERED CHARITY NUMBER: 1154239**
**Report of the Trustees and**
**Unaudited Financial Statements**
**for the Year Ended 31 March 2022**
**for**
**GLOW CHURCH UK LTD**
**GLOW CHURCH UK LTD**
## **Contents of the Financial Statements for the Year Ended 31 March 2022**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|5|
|**Independent Examiner's Report**||6||
|**Statement of Financial Activities**||7||
|**Statement of Financial Position**|8|to|9|
|**Statement of Cash Flows**||10||
|**Notes to the Statement of Cash Flows**||11||
|**Notes to the Financial Statements**|12|to|21|
|**Detailed Statement of Financial Activities**|22|to|23|
**GLOW CHURCH UK LTD**
## **Report of the Trustees**
## **for the Year Ended 31 March 2022**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **OBJECTIVES AND ACTIVITIES Objectives and aims**
The objectives of the Charity are :-
a) To advance the Christian faith in accordance with the Statement in such ways and in such parts of the United Kingdom or the World as the directors from time to time may think fit.
b) To relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind including through the provision of counselling and support in such parts of the United Kingdom or the World as the directors from time to time think fit.
c) To advance education in such ways and in such parts of the United Kingdom as the directors from time to time may think fit.
A summary of the activities of the charity as set out on the Charity Commission website is that the charity provides nursery care and hire of facilities that advance public education by mounting lectures, exhibitions and conferences.
Page 1
**GLOW CHURCH UK LTD**
**Report of the Trustees for the Year Ended 31 March 2022**
## **OBJECTIVES AND ACTIVITIES Public benefit**
It has been a year of positive change and progress as we continued to establish stronger foundations for the exciting seasons ahead. Much of our efforts have been centred around 3 key areas; rebuilding after Covid, redefining our identity as a Church (not a conference facility), and engaging members, old and new, in the exciting mission and purpose of Glow Church UK.
With a growing church congregation and a passionate team of volunteers we are seeing expansion across all aspects of Glow Church UK. In 2022 we experienced a significant number of new people coming to the church, resulting in a steady increase in attendance across Sunday services and midweek initiatives.
We especially saw many young families engaging in church activities this year centred around our kids programmes and youth nights for teenagers, alongside periodic special events such as Light Night and Winter Wonderland, both of which were free community events for families. We have also seen growth in our parent and toddler group with close to 100 people attending sessions each week. We expect to see this trend continue in the coming year as we invest further in our work with families.
There has also been a major focus on reconnecting and prioritising community, friendship and discipleship through Connect Groups, our smaller, midweek groups at the church. This was driven by a project undertaken to call all members of the church and invite them to join a smaller, midweek group which resulted in an increase in sign ups, and over 62% of adults and all youth at the church in a meaningful small group community. The benefits have included; deeper friendships, greater support when needed, growth in people's faith and providing an easier place for new people to connect.
We provided an opportunity this year for people to come together to help renovate gardens and use their skills and talents. We also launched a midweek programme at the church where those who are vulnerable and/or lonely could come together for afternoon tea every week. This has proved a great success and is adding real value to our local community. This initiative will develop in 2023 to work with the governments 'warm spaces' initiative for those struggling with the cost of living crisis.
In 2022 we joined The Assemblies of God. The AOG is made up of over 500 churches in close to 600 locations throughout Great Britain. The current leadership of the movement have begun a radical transformation to make it more relevant and effective in the 21st century.
We have been encouraged again this year by the growing diversity at Glow Church UK as we hosted 'International Sunday', an opportunity to see all the diverse cultures come together and honour who God has created us to be.
Our 'Little Cubs Nursery' has thrived this year and seen more and more parents engaging in the church services and special events. With a strong staff team and professional approach to childcare, we are fast becoming the most sought after nursery in the area. The children have participated in Sunday services throughout the year as well as hosting their annual Christmas Nativity.
We saw an overwhelming response towards the Ukraine Appeal. As a result of Glow Church's generosity, of which Glow Church UK participated, we raised £57,628. 100% of what was given went directly to the two churches in the Ukraine and Poland to pay for fuel, blankets, medicine, hygiene items, clothing, housing and other essentials to support the refugees fleeing from Ukraine.
The Trustees have worked extensively this year to examine our systems, processes and financials following the Covid period. Whilst this work is ongoing, we are implementing positive changes to the way Glow Church UK operates and presenting new insights into how Glow can build resilience, health and strength for the years to come.
Page 2
**GLOW CHURCH UK LTD**
## **Report of the Trustees for the Year Ended 31 March 2022**
## **FINANCIAL REVIEW**
## **Principal funding sources**
The principal funding sources are; a) donations and gifts to Glow Church UK Ltd,
b) provision of nursery care,
c) hire of facilities, d) grants.
The Charity does not undertake specific fundraising events. Its main source of funds are the donations of members of the Congregation. No significant expenditure is incurred in raising these funds. The return of in person services has seen levels of donations increase during this year.
The Charity has a Trading Subsidiary "Innovate County Durham Ltd" which operates Conferencing and Events on the main site in Newton Aycliffe. The staff are paid although volunteers do provide support from time to time. The conference facilities provided through Innovate County Durham Ltd are hired out to other organisations such as the NHS and local firms for education and training purposes as well as mounting exhibitions.
The Charity also uses any surplus funds from Little Cubs and Innovate County Durham Ltd.
## **Reserves policy**
The Trustees have considered and retained the existing level of reserves set out by the Charity. These funds are not restricted but can be allocated to various special projects. Members of the congregation have given donations over and above their normal giving to enable the Charity to fund additional work.
The income and expenditure streams, the need to match income with commitments and the nature of reserves have been considered again. Budgets and expenditure have been adjusted to reflect current income levels. The Reserves Policy will be kept under review.
## **FUTURE PLANS**
As we look ahead to 2023, some of our future plans include:
- Developing further small groups and midweek connection points at the church.
- Explore the possibilities of launching new services of Glow Church UK in new locations.
- Rework aspects of the Glow Durham venue to accommodate further growth, create new opportunities and improve the
- visitor experience
- Invest in midweek outreach activities to support those most in need in our community.
## **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.
## **Recruitment and appointment of new trustees**
The Directors of the Company are also Charity Trustees for the purpose of charity law. The Directors have the power to appoint any other person as a Director.
## **Organisational structure**
The Charity's legal status is that of a company limited by guarantee and is governed by the company's Memorandum and Articles of Association.
The Charity is organised so that the trustees meet regularly to manage its affairs. The day to day management is delegated to the Business and Finance Director and the Lead Pastor of Glow Church UK.
An Annual General Meeting was held in October 2021 and all policy documents were reviewed and agreed. The Board voted that the Chair and Company Secretary continue in their roles. The next Annual General Meeting will be held in October 2022.
Page 3
**GLOW CHURCH UK LTD**
## **Report of the Trustees**
## **for the Year Ended 31 March 2022**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Induction and training of new trustees**
New trustees are invited and encouraged to visit the main location to familiarise themselves with the charity and the context in which it operates. They are provided with a Directors pack which contains a copy of the Memorandum and Articles, a job description and details of the trustees' responsibilities together with the latest financial statements and the current financial position.
## **Related parties**
The charitable Company owns 100% of the share capital of Innovate County Durham Limited.
## **Risk management**
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Charity has detailed Risk Registers covering both financial and other risks. These are reviewed regularly by the Board and action taken to manage and reduce risk.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number**
08703834 (England and Wales)
## **Registered Charity number**
1154239
## **Registered office**
Glow Church Long Tens Way Aycliffe Business Park Newton Aycliffe County Durham DL5 6AP
## **Trustees**
S W Mawston S Matthew (resigned 21/9/21) N Mason (appointed 1/4/21) (resigned 3/2/22) J S Cave A G Cherrie (appointed 27/7/22) P A Stanley (appointed 10/3/22) A S Glassbrook (appointed 9/8/22) F E Clack (appointed 23/6/22)
## **Company Secretary**
K I Earley
## **Independent Examiner**
Lee Harris FCCA Mitchell Gordon LLP 43 Coniscliffe Road Darlington Co. Durham DL3 7EH
Page 4
**GLOW CHURCH UK LTD**
## **Report of the Trustees**
## **for the Year Ended 31 March 2022**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The Trustees (who are also the directors of Glow Church UK Ltd 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;
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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.
Approved by order of the board of trustees on 31 December 2022 and signed on its behalf by:
A S Glassbrook - Trustee
Page 5
**Independent Examiner's Report to the Trustees of Glow Church UK Ltd**
## **Independent examiner's report to the trustees of Glow Church UK Ltd ('the Company')**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2022.
## **Responsibilities and basis of report**
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCCA which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Lee Harris FCCA Mitchell Gordon LLP 43 Coniscliffe Road Darlington Co. Durham DL3 7EH
31 December 2022
Page 6
**GLOW CHURCH UK LTD**
## **Statement of Financial Activities for the Year Ended 31 March 2022**
|Unrestricted
funds
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
281,474
**Charitable activities**
Little Cubs
168,433
Other charitable activities
3
438,041
**Total**
887,948
**EXPENDITURE ON**
Raising funds
5
55,471
**Charitable activities**
6
Little Cubs
342,408
Head Office
381,913
Other
49,268
**Total**
829,060
**NET INCOME/(EXPENDITURE)**
58,888
**RECONCILIATION OF FUNDS**
Total funds brought forward
825,654
**TOTAL FUNDS CARRIED FORWARD**
884,542|Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
-|31/3/22
Total
funds
as
£
281,474
168,433
438,041
887,948
55,471
342,408
381,913
49,268
829,060
58,888
825,654
884,542|31/3/21
Total
funds
restated
£
221,798
156,782
283,205
661,785
41,498
271,443
316,691
49,673
679,305
(17,520)
843,174
825,654|
|---|---|---|---|
The notes form part of these financial statements
Page 7
**GLOW CHURCH UK LTD**
## **Statement of Financial Position**
## **31 March 2022**
|Notes
**FIXED ASSETS**
Tangible assets
13
Investments
14
**CURRENT ASSETS**
Stocks
15
Debtors
16
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
17
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**CREDITORS**
Amounts falling due after more than one year
18
**NET ASSETS**
**FUNDS**
21
Unrestricted funds
**TOTAL FUNDS**|Unrestricted
funds
£
2,022,389
1
2,022,390
-
7,112
14,255
21,367
(133,231)
(111,864)
1,910,526
(1,025,984 )
884,542|Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
-|31/3/22
Total
funds
£
2,022,389
1
2,022,390
-
7,112
14,255
21,367
(133,231)
(111,864)
1,910,526
(1,025,984 )
884,542
884,542
884,542|31/3/21
Total
funds
as restated
£
2,021,753
1
2,021,754
1,899
12,472
7,939
22,310
(87,874)
(65,564)
1,956,190
(1,130,536 )
825,654
825,654
825,654|
|---|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
continued...
Page 8
**GLOW CHURCH UK LTD**
## **Statement of Financial Position - continued 31 March 2022**
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 31 December 2022 and were signed on its behalf by:
A S Glassbrook - Trustee
The notes form part of these financial statements
Page 9
## **GLOW CHURCH UK LTD**
## **Statement of Cash Flows for the Year Ended 31 March 2022**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Interest paid
Movement on related party balances
Net cash provided by/(used in) operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Sale of tangible fixed assets
Net cash used in investing activities
**Cash flows from financing activities**
New loans in year
Loan repayments in year
Net cash (used in)/provided by financing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
2
**Cash and cash equivalents at the end of**
**the reporting period**
2|31/3/22
a
£
130,875
(49,275)
8,767
90,367
(6,757)
-
(6,757)
-
(74,094)
(74,094)
9,516
4,739
14,255|31/3/21
s restated
£
30,612
(49,783)
(1,510)
(20,681)
(3,096)
500
(2,596)
50,000
(14,789)
35,211
11,934
(7,195)
4,739|
|---|---|---|
The notes form part of these financial statements
Page 10
**GLOW CHURCH UK LTD**
## **Notes to the Statement of Cash Flows**
## **for the Year Ended 31 March 2022**
## **1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net income/(expenditure) for the reporting period (as per the**
**Statement of Financial Activities)**
**Adjustments for:**
Depreciation charges
Loss on disposal of fixed assets
Interest paid
Decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by operations**
**2.**
**ANALYSIS OF CASH AND CASH EQUIVALENTS**
Cash in hand
Notice deposits (less than 3 months)
Overdrafts included in bank loans and overdrafts falling due within one year
Total cash and cash equivalents
3.
**ANALYSIS OF CHANGES IN NET DEBT**|31/3/22
a
£
58,888
6,121
-
49,275
1,899
(3,407)
18,099
130,875
31/3/22
a
£
191
14,064
-
14,255|31/3/21
s restated
£
(17,520)
6,094
3,046
49,783
512
10,537
(21,840)
30,612
31/3/21
s restated
£
630
7,309
(3,200)
4,739|
|---|---|---|
||At 1/4/21|Cash flow|At 31/3/22|
|---|---|---|---|
||£|£|£|
|**Net cash**||||
|Cash at bank and in hand|7,939|6,316|14,255|
|Bank overdraft|(3,200)|3,200|-|
||4,739|9,516|14,255|
|**Debt**||||
|Debts falling due within 1 year|(68,854)|(30,458)|(99,312)|
|Debts falling due after 1 year|(1,130,536 )|104,552|(1,025,984 )|
||(1,199,390 )|74,094|(1,125,296 )|
|**Total**|(1,194,651 )|83,610|(1,111,041 )|
The notes form part of these financial statements
Page 11
**GLOW CHURCH UK LTD**
## **Notes to the Financial Statements for the Year Ended 31 March 2022**
## **1. 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, with the exception of investments which are included at market value.
The financial statements have been prepared under the going concern basis of accounting.
## **Preparation of consolidated financial statements**
The financial statements contain information about Glow Church UK Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The charity is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.
## **Critical accounting judgements and key sources of estimation uncertainty**
In the application of the company’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.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - not provided Plant and machinery - 25% on reducing balance and 20% on reducing balance Fixtures and fittings - 25% on reducing balance and 15% on reducing balance
The property held is maintained regularly throughout the year and for this reason the trustees do not believe it is appropriate to depreciate the property.
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
continued...
Page 12
**GLOW CHURCH UK LTD**
**Notes to the Financial Statements - continued for the Year Ended 31 March 2022**
## **1. ACCOUNTING POLICIES - continued**
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **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.
## **Financial instruments**
## Financial Instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
## Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit and loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
continued...
Page 13
**GLOW CHURCH UK LTD**
## **Notes to the Financial Statements - continued for the Year Ended 31 March 2022**
## **1. ACCOUNTING POLICIES - continued**
## **Financial instruments**
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
## Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
## Basic financial liabilities
Basic financial liabilities, including loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
## **2. DONATIONS AND LEGACIES**
## **3.**
|Church income
Gift aid
Legacies
**OTHER CHARITABLE ACTIVITIES**
Nursery fees
Other income
Operating income|31/3/22
a
£
233,961
47,513
-
281,474
31/3/22
a
£
278,778
120,124
39,139
438,041|31/3/21
s restated
£
180,619
38,659
2,520
221,798
31/3/21
s restated
£
149,480
97,675
36,050
283,205|
|---|---|---|
continued...
Page 14
**GLOW CHURCH UK LTD**
## **Notes to the Financial Statements - continued for the Year Ended 31 March 2022**
|**4.**
**INCOME FROM CHARITABLE ACTIVITIES**
31/3/22
a
Activity
£
Grants
Little Cubs
168,433
Grants received, included in the above, are as follows:
31/3/22
a
£
Nursery education grants
168,433
**5.**
**RAISING FUNDS**
**Other trading activities**
31/3/22
a
£
Opening stock
1,899
Direct costs
53,565
Closing stock
-
Interest payable and similar charges
7
55,471
**6.**
**CHARITABLE ACTIVITIES COSTS**
Support
Direct
costs (see
Costs
note 7)
£
£
Little Cubs
329,282
13,126
Head Office
268,380
113,533
597,662
126,659
**7.**
**SUPPORT COSTS**
Information
Management
technology
£
£
Little Cubs
10,496
42
Head Office
97,252
6,308
107,748
6,350|31/3/21
s restated
£
156,782
31/3/21
s restated
£
156,782
31/3/21
s restated
£
2,411
40,876
(1,899)
110
41,498
Totals
£
342,408
381,913
724,321
Human
resources
£
1,617
1,493
3,110|
|---|---|
Page 15
continued...
**GLOW CHURCH UK LTD**
## **Notes to the Financial Statements - continued for the Year Ended 31 March 2022**
## **7. SUPPORT COSTS - continued**
|**SUPPORT COSTS - continued**|||
|---|---|---|
|Little Cubs
Head Office|Governance
Other
costs
£
£
971
-
2,358
6,122
3,329
6,122|Totals
£
13,126
113,533|
|||126,659|
## **8. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
||31/3/22|31/3/21|
|---|---|---|
|||as restated|
||£|£|
|Depreciation - owned assets|6,121|6,094|
|Deficit on disposal of fixed assets|-|3,046|
## **9. TRUSTEES' REMUNERATION AND BENEFITS**
During the year Mrs K L Clark, a former trustee, received remuneration of £Nil (2021: £29,227) in her role as Business and Finance director. J J Greenow, a former trustee, received remuneration of £Nil (2021: £56,652) in his role as Lead Pastor. A G Cherrie, a trustee, received remuneration of £27,952 (2021: £Nil) in his role as Lead Pastor.
## **Trustees' expenses**
During the year trustee expenses of £Nil (2021: £320) were paid by the charity.
## **10. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs|31/3/22
a
£
541,060
30,161
21,430
592,651|31/3/21
s restated
£
426,856
21,544
16,339|
|---|---|---|
|||464,739|
The average monthly number of employees during the year was as follows:
||31/3/22|31/3/21|
|---|---|---|
|||as restated|
|Charitable activities|40|30|
|Management and administration|2|2|
||42|32|
No employees received emoluments in excess of £60,000.
Page 16
continued...
**GLOW CHURCH UK LTD**
## **Notes to the Financial Statements - continued for the Year Ended 31 March 2022**
|**11.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
funds
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
221,798
**Charitable activities**
Little Cubs
156,782
Other charitable activities
283,205
**Total**
661,785
**EXPENDITURE ON**
Raising funds
41,498
**Charitable activities**
Little Cubs
271,443
Head Office
316,691
Other
49,673
**Total**
679,305
**NET INCOME/(EXPENDITURE)**
(17,520)
**RECONCILIATION OF FUNDS**
Total funds brought forward
843,174
**TOTAL FUNDS CARRIED FORWARD**
825,654|Restricted
fund
as
£
-
-
-
-
-
-
-
-
-
-
-
-|Total
funds
restated
£
221,798
156,782
283,205
661,785
41,498
271,443
316,691
49,673
679,305
(17,520)
843,174
825,654|
|---|---|---|
## **12. PRIOR YEAR ADJUSTMENT**
In the previous year the operational contribution income and expense from the Little Cubs branch were originally shown seperately in the Statement of Financial Activities. This has been restated to show only the operation contribution from the subsidiary company. The income and expense from the branch offset to £Nil so there has been no impact on the reserves as at 31st March 2021.
continued...
Page 17
**GLOW CHURCH UK LTD**
## **Notes to the Financial Statements - continued**
## **for the Year Ended 31 March 2022**
## **13. TANGIBLE FIXED ASSETS**
|**COST**
At 1 April 2021
Additions
At 31 March 2022
**DEPRECIATION**
At 1 April 2021
Charge for year
At 31 March 2022
**NET BOOK VALUE**
At 31 March 2022
At 31 March 2021
**FIXED ASSET INVESTMENTS**
**MARKET VALUE**
At 1 April 2021 and 31 March 2022
**NET BOOK VALUE**
At 31 March 2022
At 31 March 2021|Freehold
property
£
2,002,602
-
2,002,602
-
-
-
2,002,602
2,002,602|Plant and
machinery
£
99,659
6,613
106,272
82,487
5,742
88,229
18,043
17,172|Fixtures
and
fittings
£
4,751
144
4,895
2,772
379
3,151
1,744
1,979|Totals
£
2,107,012
6,757
2,113,769
85,259
6,121
91,380
2,022,389
2,021,753
Shares in
group
undertakings
£
1
1
1|
|---|---|---|---|---|
**14. FIXED ASSET INVESTMENTS**
There were no investment assets outside the UK.
The company's investments at the balance sheet date in the share capital of companies include the following:
## **Innovate County Durham Limited**
Registered office: Glow Church Long Tens Way, Aycliffe Business Park, Newton Aycliffe, County Durham, DL5 6AP
Nature of business: Management services and conferencing facilities.
|DL5 6AP
Nature of business: Management services|and conferencing facilities.|||
|---|---|---|---|
||%|||
|Class of share:|holding|||
|Ordinary|100|||
|||31/3/22|31/3/21|
|||£|£|
|Aggregate capital and reserves||(57,067)|(57,067)|
|Loss for the year||-|(57,068)|
continued...
Page 18
**GLOW CHURCH UK LTD**
## **Notes to the Financial Statements - continued for the Year Ended 31 March 2022**
|**15.**
**STOCKS**
31/3/22
£
Stocks
-
**16.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
31/3/22
£
Trade debtors
1,232
Amounts owed by group undertakings
8
VAT
2,675
Prepayments
3,197
7,112
**17.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
31/3/22
£
Bank loans and overdrafts (see note 19)
99,312
Trade creditors
10,506
Social security and other taxes
10,606
Other creditors
961
Accrued expenses
11,846
133,231
**18.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
31/3/22
£
Bank loans (see note 19)
1,025,984
**19.**
**LOANS**
An analysis of the maturity of loans is given below:
31/3/22
£
Amounts falling due within one year on demand:
Bank overdrafts
-
Bank loans
99,312
99,312
Amounts falling between one and two years:
Bank loans - 1-2 years
103,341
Amounts falling due between two and five years:
Bank loans - 2-5 years
321,448|31/3/21
as restated
£
1,899
31/3/21
as restated
£
3,247
8,775
132
318
12,472
31/3/21
as restated
£
72,054
376
7,491
-
7,953
87,874
31/3/21
as restated
£
1,130,536
31/3/21
as restated
£
3,200
68,854
72,054
88,763
239,710|
|---|---|
||a|
continued...
Page 19
**GLOW CHURCH UK LTD**
## **Notes to the Financial Statements - continued for the Year Ended 31 March 2022**
|**19.**
**LOANS - continued**
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more than 5 years payable by instalments
**20.**
**SECURED DEBTS**
The following secured debts are included within creditors:
Bank loans
The loans are secured against the Charity's property.
**21.**
**MOVEMENT IN FUNDS**
**Unrestricted funds**
General fund
**TOTAL FUNDS**
Net movement in funds, included in the above are as follows:
**Unrestricted funds**
General fund
**TOTAL FUNDS**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1/4/21
£
825,654
825,654
Incoming
resources
£
887,948
887,948
At 1/4/20
£
843,174
843,174|31/3/22
£
601,195
31/3/22
£
1,083,626
Net
movement
in funds
£
58,888
58,888
Resources
expended
£
(829,060)
(829,060)
Net
movement
in funds
£
(17,520)
(17,520)|31/3/21
as restated
£
802,063
31/3/21
as restated
£
1,149,385
At
31/3/22
£
884,542
884,542
Movement
in funds
£
58,888
58,888
At
31/3/21
£
825,654
825,654|
|---|---|---|---|
|||||
continued...
Page 20
**GLOW CHURCH UK LTD**
## **Notes to the Financial Statements - continued for the Year Ended 31 March 2022**
## **21. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
661,785
661,785|Resources
Movement
expended
in funds
£
£
(679,305)
(17,520)
(679,305)
(17,520)|Resources
Movement
expended
in funds
£
£
(679,305)
(17,520)
(679,305)
(17,520)|
|---|---|---|---|
||||(17,520)|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1/4/20
£
843,174
843,174|Net
movement
in funds
£
41,368
41,368|At
31/3/22
£
884,542|
|---|---|---|---|
||||884,542|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
||Incoming|Resources|Movement|
|---|---|---|---|
||resources|expended|in funds|
||£|£|£|
|**Unrestricted funds**||||
|General fund|1,549,733|(1,508,365 )|41,368|
|**TOTAL FUNDS**|1,549,733|(1,508,365 )|41,368|
## **22. RELATED PARTY DISCLOSURES**
At the year end the Charity was owed £8 (2021: £8,775) from Innovate County Durham Limited, a company wholly owned by the Charity.
During the year the amounts received from Innovate County Durham Limited which relate to Glow Church UK Ltd total £39,139 (2021: £36,050).
Page 21
## **GLOW CHURCH UK LTD**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Church income
Gift aid
Legacies
**Other charitable activities**
Nursery fees
Other income
Operating income
**Charitable activities**
Grants
**Total incoming resources**
**EXPENDITURE**
**Other trading activities**
Opening stock
Direct costs
Bank interest
Closing stock
**Charitable activities**
Wages
Social security
Pensions
Rates and water
Postage and stationery
**Other**
Bank loan interest
**Support costs**
**Management**
Insurance
Light and heat
Telephone
Carried forward|**Detailed Statement of Financial Activities**
**for the Year Ended 31 March 2022**
31/3/22
31/3/21
as restated
£
£
233,961
180,619
47,513
38,659
-
2,520
281,474
221,798
278,778
149,480
120,124
97,675
39,139
36,050
438,041
283,205
168,433
156,782
887,948
661,785
1,899
2,411
53,565
40,876
7
110
-
(1,899)
55,471
41,498
541,060
426,856
30,161
21,544
21,430
16,339
3,491
3,536
1,520
1,836
597,662
470,111
49,268
49,673
9,333
8,428
28,530
23,419
3,718
2,942
41,581
34,789|
|---|---|
|||
This page does not form part of the statutory financial statements
Page 22
**GLOW CHURCH UK LTD**
## **Detailed Statement of Financial Activities**
## **for the Year Ended 31 March 2022**
|**for the Year Ended 31**|**March 2022**||
|---|---|---|
||31/3/22|31/3/21|
|||as restated|
||£|£|
|**Management**|||
|Brought forward|41,581|34,789|
|Printing, postage and stationery|4,616|2,573|
|Advertising|114|1,028|
|Sundries|28,079|26,789|
|Motor and travel|916|4,094|
|Repairs and renewals|26,321|24,338|
|Depreciation of plant and machinery|5,742|4,978|
|Depreciation of fixtures and fittings|379|402|
|Depreciation of motor vehicles|-|714|
|Loss on sale of tangible fixed assets|-|3,046|
||107,748|102,751|
|**Information technology**|||
|IT costs|6,350|5,487|
|**Human resources**|||
|Training|3,110|(504)|
|**Other**|||
|Bank charges|3,329|2,725|
|**Governance costs**|||
|Accountancy fees|4,875|4,157|
|Legal and professional fees|1,247|3,407|
||6,122|7,564|
|Total resources expended|829,060|679,305|
|**Net income/(expenditure)**|58,888|(17,520)|
This page does not form part of the statutory financial statements
Page 23