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2023-03-31-accounts

REGISTERED COMPANY NUMBER: 08703834 (England and Wales) REGISTERED CHARITY NUMBER: 1154239

Report of the Trustees and

Financial Statements

for the Year Ended 31 March 2023

for

GLOW CHURCH UK LTD

GLOW CHURCH UK LTD

Contents of the Financial Statements for the Year Ended 31 March 2023

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 9
Statement of Financial Activities 10
Statement of Financial Position 11
Statement of Cash Flows 12
Notes to the Statement of Cash Flows 13
Notes to the Financial Statements 14 to 25
Detailed Statement of Financial Activities 26 to 27

GLOW CHURCH UK LTD

Report of the Trustees

for the Year Ended 31 March 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Objectives and activities Objectives and aims

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, and

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, and

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 2023

Objectives and activities Public benefit

Glow Church UK continued its journey of growth and community impact, with a focus on expanding our reach and fostering an inclusive environment. This report highlights our achievements and developments in key areas of our operations.

Membership Growth

One of the most notable accomplishments in 2023 has been the significant increase in our church membership. Our congregation has seen remarkable growth, particularly among young families, children, and young people. This growth is a testament to our welcoming and engaging atmosphere. We have placed a strong emphasis on creating a vibrant and nurturing environment for young families. Our children's programs, youth nights, and special events have attracted more participants than ever before.

Diversity and Inclusion

Glow Church UK has taken strides towards becoming a more diverse and inclusive community. Our commitment to embracing individuals from various ethnic backgrounds has resulted in a notable increase in the diversity of our membership. We celebrated this diversity through special events, fostering an environment of acceptance and unity.

Services in the City of Newcastle

Our presence in the city of Newcastle has continued to expand. We are proud to serve the local community through our various programs and initiatives, providing a safe and welcoming space for residents to worship, connect, and grow spiritually.

Growth in Connect Groups

Our Connect Groups, smaller midweek gatherings within our church, have grown in number and significance. We have seen a surge in sign-ups, with a significant portion of our congregation participating in these intimate communities. Connect Groups have facilitated deeper friendships, greater support systems, and spiritual growth among our members.

Outreach to the Local Community

Our commitment to outreach and community engagement remains unwavering. In 2023, we initiated several outreach programs, including exercise classes and toddler groups, that have made a positive impact on the local community. These initiatives have been well-received, contributing to our mission of being a beacon of hope and support in our neighborhood.

In summary, 2023 has been a year of growth, inclusively, and community outreach at Glow Church UK. We have welcomed new members, provided enriching experiences for young families and children, and made significant strides in fostering a diverse and inclusive congregation. Our commitment to serving the city of Newcastle and our efforts to connect and engage our members have been particularly successful.

Strategic report 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.

Page 2

GLOW CHURCH UK LTD

Report of the Trustees for the Year Ended 31 March 2023

Strategic report Financial review

Reserves policy

The Trustees have considered and retained the existing level of reserves set out by the Charity. These funds are not restricted and 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 future projects. There are no restricted or designated reserves as at 31 March 2023 (2022: £nil). Unrestricted general reserves as at 31 March 2023 was £872,498 (2022: £884,542).

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 2024, some of our future plans include:

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.

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.

Key management remuneration

Remuneration is reviewed annually by the Board of Trustees by reviewing rates of inflation, industry factor, real living wage. Any pay awards for all staff including SMT are reviewed and approved by the Board of Trustees.

Related parties

The charitable Company owns 100% of the share capital of Innovate County Durham Limited. Other related parties comprise the Trustees and Glow Church Australia.

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 does not have detailed risk registers in place, risks are reviewed regularly by the Board and action taken to manage and reduce risk.

Page 3

GLOW CHURCH UK LTD

Report of the Trustees for the Year Ended 31 March 2023

Reference and administrative details Registered Company number 08703834 (England and Wales)

Registered Charity number 1154239

Registered office

Glow Uk Long Tens Way Aycliffe Business Park Newton Aycliffe County Durham DL5 6AP

Trustees

K L Clark (resigned 28/7/22) S W Mawston J S Cave A G Cherrie (appointed 27/7/22) P A Stanley A S Glassbrook (appointed 9/8/22) F Clack (appointed 23/6/22) I P E Duffew (appointed 15/5/23)

Company Secretary K I Earley

Senior Statutory Auditor Mr Lee Harris BSc (Hons) FCCA

Auditors

Mitchell Gordon LLP Accountants and Statutory Auditor 43 Coniscliffe Road Darlington Co. Durham DL3 7EH

Senior pastors and executive team

J S Cave E Cave J Brett M Webber K Emery W Eriksson

Page 4

GLOW CHURCH UK LTD

Report of the Trustees

for the Year Ended 31 March 2023

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;

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.

Auditors

The auditors, Mitchell Gordon LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 21 December 2023 and signed on the board's behalf by:

A S Glassbrook - Trustee

Page 5

Report of the Independent Auditors to the Members of Glow Church UK Ltd

Opinion

We have audited the financial statements of Glow Church UK Ltd (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 6

Report of the Independent Auditors to the Members of Glow Church UK Ltd

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 7

Report of the Independent Auditors to the Members of Glow Church UK Ltd

Our responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

These procedures did not identify any potentially material actual or suspected non-compliance.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remains a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance of fraud and cannot be expected to detect non-compliance with all laws & regulations.

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

Page 8

Report of the Independent Auditors to the Members of Glow Church UK Ltd

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. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Lee Harris BSc (Hons) FCCA (Senior Statutory Auditor) for and on behalf of Mitchell Gordon LLP Accountants and Statutory Auditor 43 Coniscliffe Road Darlington Co. Durham DL3 7EH

21 December 2023

Page 9

GLOW CHURCH UK LTD

Statement of Financial Activities for the Year Ended 31 March 2023

Notes
Income and endowments from
Donations and legacies
3
Charitable activities
6
Charitable activities
Other charitable activities
4
Investment income
5
Total
Expenditure on
Raising funds
7
Charitable activities
8
Charitable activities
Total
NET INCOME/(EXPENDITURE)
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
321,617
570,467
123,683
16
1,015,783
489
1,042,826
1,043,315
(27,532)
884,542
857,010		 Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-		 31/3/23
Total
funds
£
321,617
570,467
123,683
16
1,015,783
489
1,042,826
1,043,315
(27,532)
884,542
857,010		 31/3/22
Total
funds
£
281,475
447,211
159,263
-
887,949
-
829,061
829,061
58,888
825,654
884,542

The notes form part of these financial statements

Page 10

GLOW CHURCH UK LTD

Statement of Financial Position

31 March 2023

Notes
Fixed assets
Tangible assets
15
Investments
16
Current assets
Debtors
17
Cash at bank and in hand
Creditors
Amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors
Amounts falling due after more than one year
19
NET ASSETS
Funds
22
Unrestricted funds
Total funds		 Unrestricted
funds
£
2,139,568
1
2,139,569
14,992
42,641
57,633
(416,240)
(358,607)
1,780,962
(923,952)
857,010		 Restricted
fund
£
-
-
-
-
15,000
15,000
(2,410)
12,590
12,590
(12,590)
-		 31/3/23
Total
funds
£
2,139,568
1
2,139,569
14,992
57,641
72,633
(418,650)
(346,017)
1,793,552
(936,542)
857,010
857,010
857,010		 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

The financial statements were approved by the Board of Trustees and authorised for issue on 21 December 2023 and were signed on its behalf by:

A S Glassbrook - Trustee

The notes form part of these financial statements

Page 11

GLOW CHURCH UK LTD

Statement of Cash Flows for the Year Ended 31 March 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Movement on related party balances
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 31/3/23
£
185,031
(52,461)
274,019
406,589
(280,215)
16
(280,199)
15,000
(98,004)
(83,004)
43,386
14,255
57,641		 31/3/22
£
130,875
(49,275)
8,767
90,367
(6,757)
-
(6,757)
-
(74,094)
(74,094)
9,516
4,739
14,255

The notes form part of these financial statements

Page 12

GLOW CHURCH UK LTD

Notes to the Statement of Cash Flows

for the Year Ended 31 March 2023

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

2.

OPERATING ACTIVITIES
31/3/23 31/3/22
£ £
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities) (27,532) 58,888
Adjustments for:
Depreciation charges 10,434 6,121
Interest received (16) -
Interest paid 52,461 49,275
Gain/loss on revaluation 152,602 -
Decrease in stocks - 1,899
Increase in debtors (2,513) (3,407)
(Decrease)/increase in creditors (405) 18,099
Net cash provided by operations 185,031 130,875
ANALYSIS OF CHANGES IN NET DEBT
At 1/4/22 Cash flow At 31/3/23
£ £ £
Net cash
Cash at bank and in hand 14,255 43,386 57,641
14,255 43,386 57,641
Debt
Debts falling due within 1 year (99,312) (6,439) (105,751)
Debts falling due after 1 year (1,025,984 ) 89,442 (936,542)
(1,125,296 ) 83,003 (1,042,293 )
Total (1,111,041 ) 126,389 (984,652)

The notes form part of these financial statements

Page 13

GLOW CHURCH UK LTD

Notes to the Financial Statements for the Year Ended 31 March 2023

1. STATUTORY INFORMATION

The charitable company, a public benefit entity, is limited by guarantee and is registered in England and Wales. The members of the charitable company are the Trustees named on page 4. In the event of the charitable company being wound up, the liability of the guarantee is limited to £1 per member. The registered office of the charitable company is Glow Uk Long Tens Way, Aycliffe Business Park, Newton Aycliffe, Co. Durham, DL5 6AP.

The presentation currency of the financial statements is the Pound Sterling (£).

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

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

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.

Income from charitable activities where related to performance and specific deliverables are accounted for as the Charity earns the right to consideration by its performance. Where income is received in advance of its recognition it is deferred and included in creditors Where entitlement occurs before income being received the income is accrued. No amounts are included in the financial statements for services donated by volunteers.

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.

continued...

Page 14

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets

Freehold property - not provided Plant and machinery - 25% on reducing balance, 20% on reducing balance and Straight line over 10 years Fixtures and fittings - 25% on reducing balance and 15% on reducing balance

The property is held at market value, they are maintained regularly throughout the year and for this reason the trustees do not believe it is appropriate to depreciate the property.

Investments in subsidiaries

Investment in subsidiary undertakings are recognised at cost.

Taxation and irrecoverable value added tax

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

All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

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.

All income and expenditure for the current and prior year relate to unrestricted funds.

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

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.

Page 15

continued...

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

2. ACCOUNTING POLICIES - continued

Financial instruments

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

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.

Page 16

continued...

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

3.
DONATIONS AND LEGACIES
Church donations
Gift aid
4.
OTHER CHARITABLE ACTIVITIES
Other income
Operating income
5.
INVESTMENT INCOME
Deposit account interest
6.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants
Charitable activities
Nursery fees
Charitable activities
Grants received, included in the above, are as follows:
Nursery education grants
7.
RAISING FUNDS
Other trading activities
Direct costs		 31/3/23
£
267,535
54,082
321,617
31/3/23
£
65,288
58,395
123,683
31/3/23
£
16
31/3/23
£
242,702
327,765
570,467
31/3/23
£
242,702
31/3/23
£
489		 31/3/22
£
233,962
47,513
281,475
31/3/22
£
120,124
39,139
159,263
31/3/22
£
-
31/3/22
£
168,433
278,778
447,211
31/3/22
£
168,433
31/3/22
£
-

continued...

Page 17

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

8.
CHARITABLE ACTIVITIES COSTS
Charitable activities
9.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Repairs and renewals
Direct costs
10.
SUPPORT COSTS
Charitable activities
Charitable activities
Support costs, included in the above, are as follows:
Management
Printing, postage and stationery
Advertising
Sundries
Motor and travel		 Direct
Costs (see
note 9)
£
762,960
Management
£
38,585
Other
£
218,625

continued...

Page 18

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

10. SUPPORT COSTS - continued Information technology

IT costs
Human resources
Training
Other
Bank charges
Depreciation of tangible fixed assets
Impairment losses for tangible fixed assets
Bank interest
Bank loan interest
Governance costs
Accountancy fees
Legal and professional fees
Auditors remuneration
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
Auditors remuneration for audit of the financial statements
Auditors remuneration for non-audit services		 31/3/23
Charitable
activities
£
6,829
31/3/23
Charitable
activities
£
2,275
31/3/23
Charitable
activities
£
3,128
10,434
152,602
-
52,461
218,625
31/3/23
Charitable
activities
£
4,630
4,422
4,500
13,552
31/3/23
£
10,434
4,500
4,630		 31/3/22
Total
activities
£
6,350
31/3/22
Total
activities
£
3,110
31/3/22
Total
activities
£
3,329
6,121
-
7
49,268
58,725
31/3/22
Total
activities
£
4,875
1,247
-
6,122
31/3/22
£
6,121
-
4,875

11. NET INCOME/(EXPENDITURE)

continued...

Page 19

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

12. TRUSTEES' REMUNERATION AND BENEFITS

During the year A G Cherrie, a trustee, received remuneration of £36,777 (2022: £27,952) in his role as Lead Pastor.

During the year K L Clark, a trustee, received remuneration of £16,919 (2022: £40,060) in her role as Business & Finance director up to the date of resignation of 28th July 2022.

Trustees' expenses

During the year trustee expenses of £46 (2022: £Nil) were paid by the charity.

13. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 31/3/23
£
544,938
29,842
9,907
584,687		 31/3/22
£
549,106
30,161
13,385
592,652

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

31/3/23 31/3/22
Charitable activities 39 40
Management and administration 1 2
40 42

No employees received emoluments in excess of £60,000.

14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
funds
£
Income and endowments from
Donations and legacies
281,475
Charitable activities
Charitable activities
447,211
Other charitable activities
159,263
Total
887,949
Expenditure on
Charitable activities
Charitable activities
829,061
NET INCOME
58,888
Reconciliation of funds
Total funds brought forward
825,654		 Restricted
fund
£
-
-
-
-
-
-
-		 Total
funds
£
281,475
447,211
159,263
887,949
829,061
58,888
825,654

continued...

Page 20

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

14.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
Total funds carried forward
884,542
15.
TANGIBLE FIXED ASSETS
Fixtures
Freehold
Plant and
and
property
machinery
fittings
£
£
£
COST OR VALUATION
At 1 April 2022
2,002,602
106,272
4,895
Additions
-
259,449
13,987
Revaluations
(152,602)
-
-
At 31 March 2023
1,850,000
365,721
18,882
DEPRECIATION
At 1 April 2022
-
88,229
3,151
Charge for year
-
9,141
931
At 31 March 2023
-
97,370
4,082
NET BOOK VALUE
At 31 March 2023
1,850,000
268,351
14,800
At 31 March 2022
2,002,602
18,043
1,744
Cost or valuation at 31 March 2023 is represented by:
Fixtures
Freehold
Plant and
and
property
machinery
fittings
£
£
£
Valuation in 2023
(152,602)
-
-
Cost
2,002,602
365,721
18,882
1,850,000
365,721
18,882		 - continued
Restricted
fund
£
-
Computer
equipment
£
-
6,779
-
6,779
-
362
362
6,417
-
Computer
equipment
£
-
6,779
6,779		 Total
funds
£
884,542
Totals
£
2,113,769
280,215
(152,602)
2,241,382
91,380
10,434
101,814
2,139,568
2,022,389
Totals
£
(152,602)
2,393,984
2,241,382		 Total
funds
£
884,542

A valuation has been provided for mortgage purposes which has been used to revalue the property. The external valuer noted to rebuild the property the cost would be around £6,670,000 however the current market value is £1,850,000, due to the nature of the property it is very difficult to ascertain a value in use. Management are of the view that the building is worth well in excess of this valuation.

continued...

Page 21

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

16. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£
MARKET VALUE
At 1 April 2022 and 31 March 2023 1
NET BOOK VALUE
At 31 March 2023 1
At 31 March 2022 1

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
31/3/23 31/3/22
£ £
Aggregate capital and reserves (45,444) (57,067)
17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/3/23 31/3/22
£ £
Trade debtors 3,705 1,232
Amounts owed by group undertakings 5,375 8
VAT - 2,675
Prepayments 5,912 3,197
14,992 7,112

continued...

Page 22

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

18.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/3/23
£
Bank loans and overdrafts (see note 20)
105,751
Trade creditors
11,252
Amounts owed to group undertakings
279,385
Social security and other taxes
6,643
VAT
1,357
Other creditors
3,612
Accrued expenses
10,650
418,650
19.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31/3/23
£
Bank loans (see note 20)
936,542
20.
LOANS
An analysis of the maturity of loans is given below:
31/3/23
£
Amounts falling due within one year on demand:
Bank loans
105,751
Amounts falling between one and two years:
Bank loans - 1-2 years
120,148
Amounts falling due between two and five years:
Bank loans - 2-5 years
305,189
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more than 5 years payable by instalments
511,205
21.
SECURED DEBTS
The following secured debts are included within creditors:
31/3/23
£
Bank loans
995,626		 31/3/22
£
99,312
10,506
-
10,606
-
961
11,846
133,231
31/3/22
£
1,025,984		 31/3/22
£
99,312
10,506
-
10,606
-
961
11,846
133,231
31/3/22
£
99,312
103,341
321,448
601,195
31/3/22
£
1,083,626		 31/3/22
£
99,312
103,341
321,448

The loans are secured against the property, Glow UK Long Tens Way, Aycliffe Business Park, Newton Aycliffe, DL5 6AP and all undertakings of the Charity.

continued...

Page 23

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

22. MOVEMENT IN FUNDS

At 1/4/22
£
Unrestricted funds
General fund
884,542
TOTAL FUNDS
884,542
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
1,015,783
TOTAL FUNDS
1,015,783
Comparatives for movement in funds
At 1/4/21
£
Unrestricted funds
General fund
825,654
TOTAL FUNDS
825,654
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
887,949
TOTAL FUNDS
887,949		 Net
movement
in funds
£
(27,532)
(27,532)
Resources
expended
£
(1,043,315 )
(1,043,315 )
Net
movement
in funds
£
58,888
58,888
Resources
expended
£
(829,061)
(829,061)		 At
31/3/23
£
857,010
857,010
Movement
in funds
£
(27,532)
(27,532)
At
31/3/22
£
884,542
884,542
Movement
in funds
£
58,888
58,888

General fund

Funds are available for use at the discretion of the Trustee to further any of the Charity's purposes.

continued...

Page 24

GLOW CHURCH UK LTD

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

23. RELATED PARTY DISCLOSURES

At the year end the Charity was owed £5,375 (2022: £8) 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 £Nil (2022: £39,139).

At the year end the Charity owed £279,385 (2022: £Nil) to Glow Church Australia, a member of the Glow Church community. This amount is interest free and repayable on demand.

24. RECLASSIFICATION OF COMPARATIVES

The comparatives for expenditure have been reclassified to more accurately reflect the classification of costs.

Page 25

GLOW CHURCH UK LTD

Income and endowments
Donations and legacies
Church donations
Gift aid
Other charitable activities
Other income
Operating income
Investment income
Deposit account interest
Charitable activities
Grants
Nursery fees
Total incoming resources
Expenditure
Other trading activities
Direct costs
Charitable activities
Wages
Social security
Pensions
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Repairs and renewals
Direct costs
Support costs
Management
Printing, postage and stationery
Advertising
Sundries
Carried forward		 Detailed Statement of Financial Activities
for the Year Ended 31 March 2023		 31/3/23
£
267,535
54,082
321,617
65,288
58,395
123,683
16
242,702
327,765
570,467
1,015,783
489
544,938
29,842
9,907
5,699
9,789
27,822
2,453
704
49,372
82,434
762,960
5,604
-
31,266
36,870		 31/3/22
£
233,962
47,513
281,475
120,124
39,139
159,263
-
168,433
278,778
447,211
887,949
-
549,106
30,161
13,385
3,491
9,333
28,530
3,718
1,520
26,321
55,464
721,029
4,616
114
28,079
32,809

This page does not form part of the statutory financial statements

Page 26

GLOW CHURCH UK LTD

Detailed Statement of Financial Activities
for the Year Ended 31 March 2023
Management
Brought forward
Motor and travel
Information technology
IT costs
Human resources
Training
Other
Bank charges
Plant and machinery
Fixtures and fittings
Computer equipment
Impairment losses for tangible fixed assets
Bank interest
Bank loan interest
Governance costs
Accountancy fees
Legal and professional fees
Auditors remuneration
Total resources expended
Net (expenditure)/income		 31/3/23
£
36,870
1,715
38,585
6,829
2,275
3,128
9,141
931
362
152,602
-
52,461
218,625
4,630
4,422
4,500
13,552
1,043,315
(27,532)		 31/3/22
£
32,809
916
33,725
6,350
3,110
3,329
5,742
379
-
-
7
49,268
58,725
4,875
1,247
-
6,122
829,061
58,888

This page does not form part of the statutory financial statements

Page 27