| Geary Partnership | Geary Partnership |
|---|---|
| Chartered | Accountants |
| 159aChase Side | |
| Enfield | |
| Middlesex | |
| EN2 OPW |
INDEPENDENT AUDrroR'S REPORT TO THE TRUSTEES OF
EMMANUEL EVANGELICAL CHURCH, continued
Responsibilities of Trusttts
As LxplainLd tn()IL fully in ihe Trusie¢s' Resw)nsitriiliiies Siatemeni sei oui on page 7. Ihe Trusiees are respnnsihle for Ihe
preparaii()n Éir rindRLial %ldlcm¢nis and for bLing saiislie(J Ihdl IhLy givL a (ru¥ iind lair view. and for such iniLrn&l L()nlr()I
d% thc Trust¥cs dLILrinine is nLlL¥%Y I() LndhlL IhL pfLparaii()n nf fingncial %talLmLnl% ihdl dfL IrLL Iriim InaiLrial
missloiemeni. wheihLr duL (() Iraud ar error.
In prcparing thL financial %¢aiemtinls, Ihc TruslcLs arL rLSP()n%iblL r()r as%Lssing Lhc group and parLni Lharily's abilily l(?
¢i)niinuL as a g()ing concLrn, di%LI()sinb. (IppIiL(ihle, tnalters rLlalLd lo giiingy L()nLLrn 7nd u5iR¥ ihL gi?in¥ Li)nLLrn hasi.
(If acc()uniing unless IhL TrnslLLS LlthLr iniLnd i() liquidaiL Ihc gn)up i)r IhL parLlli Lhariiy i)r li) CLdSL ()fKTJti()ns. ()r havL n()
Auditor's responsibilitie5 for the audi¢ of the financial statements
WL havc IK"Ln aprK)iniLd iiudil()T under scctian 1.5 l of ihe Chliiilies Act 2011 atkd TttP(>rt in aLL()rdanLe wilh iegulatinns
madL undcr SLclion 1 fj4 01. Ihai ALI.
Our obje¢iives are Iii ()biain rca%()nahlL assuranLe ab()ul whether the financial Elalemenls as wh()le are free In)m maierial
mi.%staiLlliLni. whLiher duL t() fraud ()r Lrri)r, and Iii issuv an audil()r's rcp()rl Ihal inLlu(ILs iiur Iipinicin. R¢J%i>nahle
d%%urancL is a high ILVLI ()r d.%%urancL. hui is noi a ¥uarantee (hal in audit L()nduLILd In aLL(?IdanLL wilh ISAS IUKI will
always dLieLI <1 mdtLridl mi%4iJiLmcni when it exi%ts. Mi%5latLMLnt can ari%c I'rotn fraud ()r LTT()r and aiL L(InsiderL.d
tnaityrial if, individudlly Iir in thL aggrLgaiL, they could rcas1)nably bc CXPLCtcd to influLncc ihc cciitLomiL dLLISLI)ns of users
lakLn on ihL hasis ()[ IhL5L findncial s(atcm¢nis.
ILgUlarl11c$. inLluding fraud. arL in%iancLS ()I' n()n-i()mplianLe with laws an(1 Tegul&li(Ins. We design priLdur¢S in line
with nur respi)n%ibililiL%. ()utlinLd ah()ve, It) deieci mdlLrial mi5Stalcmcnls in rcspLcI ()I' kTrLgulari1ses, inLluding (¥aud.
Pr()ccdvrcs capablL ()( dLtLLling %uch irrcgulariiies perli)rmLd duiinbT {)ur audit inLludLd..
IL%t4 tn LnsurL all bank irnn%dLli()n% havL hLen acciiuniLd I'or;
Lxaminali()n ol. ()flirings rLLiirds, invuiLL% and d()n()r cnrrv'spnndcncc lo ensurc that incnmc is fully rLL()TdLd:
VLrifiLali()n ()I' ILgiiimacy af¥xpLndiiurL by rLfLfLllLL I(} IllVl?ILL%. s(alLttLLnl.s. und Ll?rrL%txin(ILnLL,'
Lxaminaiion nf iiilL reLords IL) LnsurL a55Ct% havL not t)LL'n n)isappri)prial.d.,
1¥41.% t)f analy51% 10 5a(i%fy i)ursLIvLS ihai ILdb¥r hdlance4 <ire re51)n<1b]L 1n{S Jn linL with Lxpc¢taiions.
Becau%e ol thc inh¥rLni limiiaii()ns ul l audit. thcrL IE a risk ihal WL will nnl dLtLcI all irrLgularItlL. inLluding Ihiise
leading to a n)atcrial mi%.%iaiemeni in IhL fin7 nLial 8talLmLn(s nr non-L()nipltancc wilh rLgulaiinn. Thi.% ri%k inLTca5Ls ihe
m()rL that compliancL wilh a l(iW i)r rLgulati()n is rcini)VLd Irnm IhL ivLnis and iran%aLllI)ns rLIILcILd in thL fLnunLial
latcmLnis. as we will be less likely to l)CL()mc awarl i)f in%ianLLS lif n()n-L()mpli(IncL. ThL risk is alsi) grLdiLr rLgardin8
irrty'gulariiies 1)LLurring duL tn fraud raihLr ihan Lrriir, as Irdud inv(?Ives inieniiiinal Ll)nLLalmeni, fnrgLry, ¢ollu.%iDn,
missi()n or mi.%rLpfL%Lntaiinn.
A furihei description of our rcspnnsihiliiiL8 for IhL au(lil ()r ihc findnczal slalLmcnis is pr()vidcd ()n IhL Financial Retx)rting
Cc)unLil s WLb%ilL al www.frc.nrg.uklaudii()r%laudii-assUranLLllU(lI1(jr-5-rL'$pI>ns1hI1tiI¢S-l(>r-1hv-8dIl-Of-IhL-fJldLsl[lp17[)n-
of-Ihe-audilor,E2%80%99s-rcspnnsihiliiiLs-foT. This descripiiiin lorms pan of our audii()r's repan.
Use ofour report
This rep()ri is rnadc solely lo ihc charity's Trusl'es. as a b(Kiy. in aLL()rdancL wilh Pgri 4 of th¢ Chariiics (Accounts and RLpiifL%}
Rcgul<ill()ns 2(Xl8. ()ur audit work has ILn undLnakcn that we Inighi siaiL la thc charily's TruslvLs Ih(?sti mall¢r% WL JfL
rLquifL.d 10 siaiu li) IhLm in 1n <iudiliir's rLwirt and l()[ n() ()Iher purposc. To IhL fullLsl exleni pLrniillLiJ tiy law. WL dn n()1 LLP(
or &ssumi' rL'SP()nsibiliiy 10
| Total | Total | ||||||
|---|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Revaluation | funds | funds | |||
| funds | funds | reserve | 2022 | 2021 | |||
| f. | |||||||
| INCOME AND EXPENDITURE | |||||||
| Income from: | |||||||
| Donations and legacies (Note 2a) |
662,543 | 15,818 | 678,361 | 663,064 | |||
| Other operating activities |
(Note 2b) | 846,846 | 846,846 | 319,444 | |||
| Investments (Note 2c) |
109 | 109 | 61 | ||||
| Grants (Note 2d) | 119,523 | ||||||
| Total Income | 1,509,498 | 15,818 | 1,525,3]6 | 1,102,092 | |||
| Expenditure on: |
|||||||
| Raising funds (Note 3a) | 451,474 | 451,474 | 274,471 | ||||
| Charitable activities (Note 3b) |
738,324 | 97,664 | 835,988 | 852,085 | |||
| Total Expenditure | 1,189,798 | 97,664 | 1,287,462 | 1,126,556 | |||
| Net Income/(Expenditure) | |||||||
| before Taxation and Transfers | 319,700 | (81,846) | 237,854 | (24,464) | |||
| Taxation (note 4) | (37,649) | (37,649) | |||||
| Transfers between funds |
(notes 11 and | 12) | 19,473 | 70,000 | (89,473) | ||
| Net Income/(Expenditure) | for the year | f301ti24 | K(1IW6) | K(89,473) | K200,205 | K(24,464) | |
| Other recognised gains/(losses) |
|||||||
| Gain on revaluation offixed assets |
546,779 | 546,779 | |||||
| Net Movement in Funds |
K301,524 | K(11,846) | K457~ | K746,984 | K(24,464) | ||
| RECONCILIATION OFFUNDS |
|||||||
| Total Funds brought forward |
|||||||
| at 1 January 2022 |
5,010,669 | 102,976 | 8,768,355 | 13,882,000 | 13,906,464 | ||
| Total Funds carried forward | |||||||
| at31December 2022 | K5412,193 | K91,130 | K9425,661 | K14,628„t184 | K13482,000 |
| 2022 | 2022 | 2021 | 2021 | |||
|---|---|---|---|---|---|---|
| Group | Church | Group | Church | |||
| g | g | g | ||||
| Fixed assets | ||||||
| Tangible fixed assets | (note 6) | 14,680,004 | 14,677,665 | 14,232,797 | 14,225,633 | |
| Investments (note 7) |
2 | — | 2 | |||
| 14,680,004 | 14,677,667 | 14,232,797 | 14,225,635 | |||
| Current assets | ||||||
| Debtors (note 8) | 121,903 | 162,209 | 91,527 | 203,412 | ||
| Cash at bank and in hand | 795,007 | 452,118 | 545,758 | 360,683 | ||
| 916,910 | 614,327 | 637,285 | 564,095 | |||
| Creditors: amounts | falling due | |||||
| within one year (note 9) | ||||||
| Creditors and accrued | expenditure | (175,059) | (68,595) | (159,685) | (96,586) | |
| Net current assets | 741,851 | 545,732 | 477,600 | 467,509 | ||
| Total assets less current liabilities | 15,421,855 | 15,223,399 | 14710397 | 14 | 693 144 | |
| Creditors: amounts | falling due | |||||
| after more than one | year (note 10) | (792,427) | (764,623) | (828,397) | (790,897) | |
| Provisions for gabilities | ||||||
| Deferred tax | (444) | |||||
| Net assets | 814,628,984 | 814rt58,776 | 813482,000 | 813,902~7 | ||
| Funds | ||||||
| Unrestricted funds: |
||||||
| General fund | 5,312,193 | 5,141,985 | 5,010,669 | 5,030,916 | ||
| Revaluation reserve |
(note 11) | 9,225,661 | 9,225,661 | 8,768,355 | 8,768,355 | |
| 14,537,854 | 14,367,646 | 13,779,024 | 13,799,271 | |||
| Restricted funds (note | 12) | 91,130 | 91,130 | 102,976 | 102,976 | |
| 814,628,984 | g14,458,776 | 813,882,000 | 813,902/47 |
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Notes | 5 | ||||
| Net cash provided by operating |
activities | 14 | 401,111 | 267,494 | |
| Cash flows from investing activities: | |||||
| (Purchase) offixtures, fittings and | equipment | (86,129) | (4,260) | ||
| Cash (used in) investing activities |
(86,129) | (4,260) | |||
| Cash flows from financing activities |
|||||
| (Repayment) ofbank borrowings | and HP finance | (65,733) | (51,421) | ||
| Cash (used in) financing activities |
(65,733) | (51,421) | |||
| Increase in cash and cash equivalents in |
the year | 249~9 | 211413 | ||
| Cash and cash equivalents at the beginning |
ofthe year | 545,758 | 333,945 | ||
| Total cash and cash equivalents | at the end ofthe year | f795,007 | f545,758 |
| Income | Income | ||||||
|---|---|---|---|---|---|---|---|
| Total | Total | ||||||
| Unrestricted | Restricted | funds | funds | ||||
| funds | funds | 2022 | 2021 | ||||
| a. | Donations and legacies | ||||||
| Tithes and offerings | 576,363 | 14,213 | 590,576 | 572,914 | |||
| Tax recoveries | 86,180 | 1,605 | 87,785 | 90,150 | |||
| 8662443 | 815,818 | f678361 | 8663,064 | ||||
| b. | Other operating | activities | |||||
| Rent and facility | charges receivable | 837,719 | 837,719 | 317,831 | |||
| Other income | 9,127 | 9,127 | 1,613 | ||||
| X846,$46 | $846,$46 | K319,444 | |||||
| c. | Investments | ||||||
| Interest receivable | 8109 | f109 | f61 | ||||
| d. | Grants | ||||||
| Job Retention | Scheme grants | 8119423 |
| Expenditure | Expenditure | |||||
|---|---|---|---|---|---|---|
| Total | Total | |||||
| Unrestricted | Restricted | funds | funds | |||
| funds | funds | 2022 | 2021 | |||
| 5 | ||||||
| a. | Raising funds | |||||
| Staffcosts | 285,510 | 285,510 | 86,404 | |||
| Rent and events costs | 152,095 | 152,095 | 174,413 | |||
| Depreciation/amortisation | 13,869 | 13,869 | 13,654 | |||
| 5451,474 | f451,474 | f274,471 | ||||
| b. | Charitable activities |
|||||
| Pastoral staff costs | 372,360 | 372,360 | 388,125 | |||
| Other staff costs | 41,373 | 41,373 | 43,125 | |||
| Mission and relief | 92,014 | 92,014 | 92,463 | |||
| Office overheads | 18,727 | 18,727 | 5,643 | |||
| Upkeep ofpremises | 21,024 | 21,024 | 24,132 | |||
| Depreciation/amortisation | 171,832 | 171,832 | 211,545 | |||
| Gifts and honoraria | 11,380 | 5,650 | 17,030 | 9340 | ||
| Interest payable on mortgage | loan | 26,154 | 26,154 | 19,286 | ||
| Other expenditure | 71,474 | 71,474 | 54,426 | |||
| 734,324 | 97,664 | 831,988 | 848,085 | |||
| Governance costs |
||||||
| Auditors' remuneration |
4,000 | 4,000 | 4,000 | |||
| f738,324 | f97,664 | K$35,988 | g$52,085 | |||
| Support costs (included above) | ||||||
| Raising | Charitable | Total | Total | |||
| funds | activities | 2022 | 2021 | |||
| K | g | |||||
| Staffcosts | 413,733 | 413,733 | 431,250 | |||
| Office overheads | 18,727 | 18,727 | 5,643 | |||
| Upkeep ofpremises | 21,024 | 21,024 | 24,132 | |||
| Depreciation/amortisation | 13,869 | 171,832 | 185,701 | 225,199 | ||
| Interest payable on mortgage | loan | 26,154 | 26,154 | 19,286 | ||
| Governance costs |
4,000 | 4,000 | 4,000 | |||
| Other expenditure | 71,474 | 71,474 | 54,426 | |||
| f13,869 | f726,944 | 1740,813 | 5763,936 |
| d. Employees |
|||||
|---|---|---|---|---|---|
| 2022 | 2021 | ||||
| The average number ofemployees during |
the year was: | ||||
| Management and administration ofthe Charity |
29 | 28 | |||
| Number ofstaff for whom retirement benefits are accruing |
|||||
| under money purchase | pension schemes | 22 | 18 | ||
| StaffCosts: | |||||
| Staff and helpers | 586,649 | 426,126 | |||
| Employer's NI contributions |
51,924 | 33,317 | |||
| Pension contributions | 60,670 | 58,212 | |||
| f699,243 | g517,655 | ||||
| No employees earned |
f60,000p.a.or more. | ||||
| 4. | Taxation | ||||
| 2022 | 2021 | ||||
| Corporation tax charge the Church's trading |
on the profit for the year of subsidiary I 19%(see note 7) |
537,649 |
| 2022 | 2021 | |||
|---|---|---|---|---|
| Total income | 857,597 | 767,157 | ||
| Total expenditure | (847,847) | (879,469) | ||
| Net income/(expenditure) | 9,750 | (112,312) | ||
| Gain on revaluation | of | fixed assets | 546,779 | |
| Net incoming/(outgoing) | resources for the year | f556429 | K(112412) |
| Group | Freehold | Long | Fixtures | ||
|---|---|---|---|---|---|
| property and | leasehold | fittings and | |||
| improvements | property | equipment | Total | ||
| K | K | K | |||
| Cost or valuation | |||||
| Balance at01.01.2022 | 12,784,715 | 1,600,000 | 1,429,527 | 15,814,242 | |
| Additions | 64,726 | 21,403 | 86,129 | ||
| Uplift on revaluation (see below) |
490,284 | 490,284 | |||
| Balance at31.12.2022 | K13439,725 | K1,600,000 | K1,450,930 | K16490,655 | |
| Depreciation/amortisation | |||||
| Balance at01.0).2022 | 255,694 | 32,000 | 1,293,751 | 1,581,445 | |
| Charge for the year | 100,247 | 16,000 | 69,454 | 185,70( | |
| Released on revaluation | (see below) | (56,495) | (56,495) | ||
| Balance at31.12.2022 | K299,446 | K48,000 | K1~3,205 | K1,710,651 | |
| Net BookValue at31.12.2022 | K13,040479 | K1452,000 | K87,725 | K14,680,004 | |
| Net BookValue at31.12.2021 | K12429,021 | K1468,000 | K135,776 | K14,232,797 | |
| Church | Freehold | Long | Fixtures | ||
| property and | leasehold | tittings and | |||
| improvements | property | equipment | Total | ||
| K | |||||
| Cost or valuation | |||||
| Balance at01.01.2022 | 12,784,715 | 1,600,000 | 1,404,253 | 15,788,968 | |
| Additions | 64,726 | 21,403 | 86,129 | ||
| Uplift on revaluation (see below) |
490,284 | 490,284 | |||
| Balance at31.12.2022 | K13439,725 | K1,600,000 | K1,425,656 | K16~5481 | |
| Depreciation/amortisation | |||||
| Balance at01.01.2022 | 255,694 | 32,000 | 1,275,641 | 1,563,335 | |
| Charge for the year | 100,247 | 16,000 | 64,629 | 180,876 | |
| Released on revaluation | (see below) | (56,495) | (56,495) | ||
| Balance at31.12.2022 | K299,446 | K48,000 | K1,340+70 | K1,687,716 | |
| Net BookValue at31.12.2022 | K13,040479 | Kl/52, 000 | K85386 | K14,677,665 | |
| Net BookValue at31.12.2021 | K12$29,021 | K1468,000 | K128,612 | K14425,633 |
| Creditors: | amounts falling due |
|||||||
| within one | year | 2022 | 2022 | 2021 | 2021 | |||
| Group | Church | Group | Church | |||||
| Trade creditors | 22,145 | 14,615 | 16,899 | 12,090 | ||||
| Accruals and other creditors | 40,623 | 11,280 | 34,742 | 11,000 | ||||
| Taxation and social security | 59,895 | 25,885 | 1,337 | |||||
| Mortgage loan (secured) (current |
portion) (note | 10) | 28,692 | 28,692 | 51,909 | 51,909 | ||
| Otherloans | 21,696 | 12,000 | 23,000 | 13,000 | ||||
| Obligations | under | hire purchase | (current portion) | 2,008 | 2,008 | 7,250 | 7,250 | |
| f175,059 | f68595 | 5159,685 | f96486 | |||||
| Creditors: | amounts falling due |
|||||||
| after more | than | one year | ||||||
| 2022 | 2022 | 2021 | 2021 | |||||
| Group | Church | Group | Church | |||||
| Obligations | under | hire purchase | (long-term | |||||
| portion) | 798 | 798 | ||||||
| Mortgage loan (secured): | ||||||||
| Payable within | 1-2years | 28,692 | 28,692 | 52,080 | 52,080 | |||
| Payable within | 2-5 years | 86,076 | 86,076 | 159,120 | 159,120 | |||
| Payable after more than 5 years | 649,855 | 649,855 | 578,899 | 578,899 | ||||
| 764,623 | 764,623 | 790,897 | 790,897 | |||||
| Other loans | 27,804 | — | 37,500 | |||||
| 5792,427 | 5764,623 | 8)28397 | X790,897 |
| Group and Church | ||||
|---|---|---|---|---|
| Balance brought forward |
8,768,355 | |||
| Uplift on revaluation of4 Manor Park Crescent, Edgware |
||||
| at 31 December 2022 | 546,779 | |||
| Less: Depreciation ofuplift on revaluation | offreehold | property | ||
| and improvements | 81,483 | |||
| Amortisation ofuplift on revaluation |
oflong leasehold | |||
| property | 7,990 | |||
| (89,473) | ||||
| Balance carried forward | X9,225,661 |
| Year ended 31December 202D | |||
|---|---|---|---|
| Group and Church | |||
| Balance brought forward |
8,857,828 | ||
| Less: Depreciation ofuplift on revaluation | offreehold property | ||
| and improvements | 81,483 | ||
| Amortisation ofuplift on revaluation |
oflong leasehold | ||
| property | 7,990 | ||
| (89,473) | |||
| Balance carried forward | X8,76$,355 |
| Year ended 3/ December 2022: | Year ended 3/ December 2022: | Year ended 3/ December 2022: | ||||||
|---|---|---|---|---|---|---|---|---|
| Covid-19 | Love | Ukraine | Mission | Capital | Total | |||
| Group and Church | Relief | Westminster | Crisis | and Relief | Expenditure | restricted | ||
| Fund | Fund | Fund | Fund | Fund | funds | |||
| g | ||||||||
| Balance | brought forward |
59,760 | 1,465 | 41,751 | 102,976 | |||
| Incoming | resources | for the year | 6,300 | 859 | 5,630 | 1,404 | 1,625 | 15,818 |
| Outgoing | resources | for the year | (5,650) | (4,145) | (87,869) | (97,664) | ||
| Transfers | (to)/from | General Fund | 70,000 | 70,000 | ||||
| Balance | carried forward | K60et10 | X2,324 | K1,485 | 525486 | 51,625 | f91,130 | |
| Year ended 3/ December 2021: | ||||||||
| Covid-19 | Love | Mission | Total | |||||
| Group and Church | Relief | Westminster | Roof | and Relief | restricted | |||
| Fund | Fund | Fund | Fund | funds | ||||
| g | g | |||||||
| Balance | brought forward |
29,964 | 69,214 | 99,178 | ||||
| Incoming | resources | for the year | 29,796 | 1,000 | 30,796 | |||
| Outgoing | resources | for the year | (6,646) | (92,463) | (99,109) | |||
| Transfers | (to)/from | General Fund | 1,465 | 5,646 | 65,000 | 72,111 | ||
| Balance | carried forward | f59,760 | 51,465 | f41,751 | f102,976 |
| General | Restricted | Revaluation | ||||
|---|---|---|---|---|---|---|
| fund | funds | reserve | ||||
| 5 | ||||||
| Tangible fixed assets | 5,454,343 | 9,225,661 | ||||
| Cash at bank and in hand | 703,877 | 91,130 | ||||
| Other net current assets/(liabilities) | (53,156) | |||||
| Creditors ofmore than one year | (792,871) | |||||
| Total | f5412,193 | f91,130 | 59425,661 | |||
| Reconciliation ofnet movement | in funds to net cash | 2022 | 2021 | |||
| from operating activities |
||||||
| Net movement in funds |
746,984 | (24,464) | ||||
| Add back: Depreciation and amortisation |
charge | 185,701 | 225,199 | |||
| Less: Gain on revaluation offixed |
assets | (546,779) | ||||
| Decrease in stock | 1,500 | |||||
| (Increase)/decrease in debtors |
(30,376) | 46,101 | ||||
| Increase in creditors excluding | bank borrowings | |||||
| and hire purchase | 45,581 | 19,158 | ||||
| Net cash provided by operating |
activities | 5401,111 | 5267,494 |