## Grace London
Report and Accounts Year ended 31 March 2023
1 Lamb's Passage, London EC1Y 8AB www.stewardship.org.uk
## **GRACE LONDON**
## **CHARITY INFORMATION**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**Trustees**|Andrew Haslam||
|---|---|---|
||Luke Boardman||
||Huw Newton-Hill||
||Thomas Wheatley||
|**Key Staff**|Andrew Haslam||
||Jeremy Moses||
|**Governing Document**|CIO Constitution dated 1 April 2015 (as amended 11 April 2021)||
|**Charity Registration Number**|1161147||
|**Principal Address**|Unit 124||
||Edinburgh House||
||170 Kennington Lane||
||London||
||SE11 5DP||
|**Independent Examiner**|Lisa Darby FCA||
||Stewardship||
||1 Lamb's Passage||
||London||
||EC1Y 8AB||
|**Bankers**|CAF Bank Limited||
||25 Kings Hill Avenue||
||Kings Hill||
||West Malling||
||Kent ME19 4JQ||
||HSBC||
||28 Borough High Street||
||Southwark||
||London SE1 1YB||
|**Contents**||**Page**|
|Charity Information||1|
|Trustees' Annual Report||2-6|
|Independent Examiner's Report||7|
|Statement of Financial Activities||8|
|Balance Sheet||9|
|Cashflow Statement||10-11|
|Notes to the Accounts||12-20|
|Detailed Statement of Financial Activities with Comparatives||21|
Page 1
## **GRACE LONDON**
## **TRUSTEES' ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2023**
The trustees of Grace London (the “Church” or the “Charity”), being Andrew Haslam, Luke Boardman, Huw Newton-Hill and Thomas Wheatley (the “Trustees”), have pleasure in submitting this report (the “Report”) and the accounts of the Church (the “Accounts”) for the year ending 31 March 2023 (the “Relevant Period”).
## **Objects of the charity**
The Charity is a charitable incorporated organisation and is governed by its constitution which was established on 1 April 2015 (as amended on 11 April 2021) (the “Constitution”).
The objects of the Charity, as set out in the Constitution are to advance the Christian faith for the benefit of the public in accordance with the Statement of Faith in London and in such other parts of the United Kingdom and the world as the Trustees may from time-to-time think fit.
The Church's Statement of Faith is appended to the Constitution and set out on the Church's website (grace.london/statement-of-faith).
## **Summary of the charity's main activities and achievements**
To further the above objects and vision of the Church, the Church's main activities and achievements during the Relevant Period were as follows:
_**Core Activities**_ : During the Relevant Period, the Church continued to undertake its regular core activities, comprising:
(1) two separate weekly Church services, held on Sunday mornings and evenings, consisting of expository preaching from the Bible, corporate sung worship and prayer, sharing of the Lord's Supper and children's ministry (“Services”);
(2) weekly community 'Life Groups' where people gather to share food and fellowship and study the Bible and pray together; and
(3) monthly corporate prayer and worship meetings.
These core activities reflect our desire to be a genuine community in the city and to preach and engage with Christ’s radical demands of discipleship.
_**Children’s ministry**_ : Children’s ministry continued at the Services during the Relevant Period. We delight in seeing our children engage with the truth found in the Bible and are thankful to all of our children’s ministry volunteers who are so dedicated to the children.
_**Evangelism**_ : During the Relevant Period, the Church continued in its efforts to share the good news of Jesus Christ with those who do not know him. This was principally done through:
Page 2
## **GRACE LONDON**
## **TRUSTEES' ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Summary of the charity's main activities and achievements (continued)**
(1) ‘Salt Live’ events, where Londoners from all walks of life come together and engage face-to-face on matters of faith and philosophy (“Salt Live”); and
(2) the ‘Salt Course’, a course designed for people wanting to explore life’s big questions from a Christian perspective (the “Salt Course”).
During the Relevant Period, we hosted three Salt Live events on the topics of satisfaction, the crisis of masculinity and the sexual revolution. We also hosted three Salt Courses.
The Relevant Period was a fruitful time, as God continued to move in the Church community. During the Relevant Period, 6 people were baptised. All glory to God!
_**Other Activities**_ : The Church arranged a number of events and away-days during the year which are an opportunity for Church members to gather together, deepen relationships, enjoy times of corporate sung worship and prayer and hear expository preaching from the Bible and/or receive training from the Elders or other leaders.
These events included: (1) monthly men's ministry; (2) two women’s ministry events, including a day conference, (3) weekly mum's group, (4) the City Fellowship, a discipleship course focussed on understanding God's purpose for work and (5) supporting the Webber Street day centre by organising monthly meals with a gospel talk.
There were also, as always, many informal, one-to-one discipleship meetings as well as other ad-hoc meetings happening throughout the Relevant Period.
## **Staff team**
There were four additions to the staff team during the Relevant Period as the Church continued to grow. Laura Twemlow joined as a part-time Pastoral Coordinator, Cayleigh Rogers joined as a parttime Welcome and Children's Ministry Coordinator, Alvin Mendoza joined as a part-time Digital Media Coordinator and Janice Boardman joined as a part-time Communications Manager.
During the same period, Bekah Eggleston (part-time Welcome Coordinator) and Jono Thorne (part-time Digital Media Coordinator) ceased their employment with the Church to pursue other opportunities (though continued as active members of the Church).
At the expiry of the Relevant Period, the Church staff team comprised of 9 people.
Page 3
## **GRACE LONDON**
## **TRUSTEES' ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Relationships with other churches and individuals**
The Trustees believe that the objects of the Church are best accomplished in relationship with other churches and people through movements such as Advance. Advance is a global movement of churches partnering together to advance the good news of the Christian faith through planting and strengthening churches (www.advancemovement.com). The Church has continued to benefit from its relationship with Advance during the Relevant Period, though regular Advance gatherings were prevented by lockdown. The Church continues to enjoy informal but close relationships with other churches and individual Christians around the world.
## **Structure, Governance and Management**
_**Annual General Meeting**_ : The Annual General Meeting for the Relevant Period was held on 26 July 2022 (the "AGM"). During the AGM Luke Boardman retired from office and was subsequently reappointed as a Trustee, in accordance with clauses 13 and 16 of the Constitution.
The Constitution provides that new charity trustees will be appointed by the "Members" of the Church (as that word is defined in the Constitution, being the Elders of the Church) (clause 13), and new charity trustees will be provided with a copy of the Constitution (and any amendments to it) as well as the latest trustees' annual report and statement of accounts (clause 14).
_**The Trustees**_ : Throughout the Relevant Period, the Trustees were Andrew Haslam, Luke Boardman, Huw Newton-Hill and Thomas Wheatley.
_**Senior Pastor**_ : During the Relevant Period, Andrew Haslam continued to be employed as Senior Pastor of the Church. The employment of Andrew Haslam, who is also a Trustee, is in accordance with clause 6 of the Constitution ('Benefits and payments to charity trustees and connected persons'). Andrew Haslam's employment and remuneration do not relate to his role as a Trustee of the Church.
_**Decision making**_ : In accordance with the Church's Constitution, the policy and operating decisions of the Church rest with the Trustees and, ultimately, the "Members" of the Church. The Trustees communicate frequently and meet regularly (at least quarterly) to discuss and monitor the activities of the Church. However, many of the day-to-day responsibilities in the life of the Church are delegated to the Church’s staff team and volunteers.
The Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties.
_**Finance**_ : All financial payments from the Church's online banking facility with CAF Bank require validation/authorisation from a second member of the Trustee and/or finance teams for all payments. A new bank account has been set-up with HSBC for operational finances which requires validation/authorisation for all payments over £1,000.
Page 4
## **GRACE LONDON**
## **TRUSTEES' ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Financial review**
During the year income increased by £71,853, to £658,001, and expenditure increased by £56,634, to £452,549. As a result, the net income for the year increased by £15,218, to a surplus of £205,452 and the charity's net assets increased by the same amount, to £712,362. Net current assets increased by £209,416, to £711,406.
Income in the Relevant Period was predominantly due to the generous donations of the Church community, which increased substantially mainly due to the numerical growth in the attendance. Expenditure also increased during the Relevant Period, due to increased activity and staffing costs. The increased giving more than offset the increased expenditure resulting in a higher surplus.
Total grants and gifts by Grace London to missionary and charitable causes was £47k (last year £48k). The bulk of these funds (£38k) went towards supporting the work amongst the churches in the Advance network. £5k was given to gifts to mission in the UK. The Trustees policy is to give away 10% of income each year and any unspent money is carried forward.
The Charity continued to prepare its accounts using the accruals basis.
During the Relevant Period, the Church was the victim of card fraud relating to a bank account held with HSBC. The card fraud was as a result of the theft of a debit card relating to the account. In response to the incident, HSBC fully reimbursed the Church for the amount of the fraudulent transactions and the debit cards relating to the account were replaced with credit cards with lower spending limits. The Trustees reported the incident to the Charity Commission (Incident No. 672111).
## **Reserves policy**
Subsequent to the end of the Relevant Periord, the Trustees determined that the Charity should increases its Reserves Policy and aim to hold unrestricted cash of 3 months' of payroll and rent expenditure (which equates to about £70,000) in the designated fund for general reserves so that the Charity could continue to operate should income and / or expenditure vary adversely. At the end of the Relevant Period, the Charity held unrestricted cash in the designated fund for general reserves of £35,245 and has other unrestricted cash of £563,065 fro which to make a transfer to address the shorfall in the designated fund. Therefore, the Charity is complying with its reserves policy.
## **Key risks and uncertainties**
The Charity is exposed to various risks - be they operational, financial or reputational. The Trustees review the charity's activities regularly to identify significant risks and, where possible, they take appropriate measures to mitigate those risks. Of particular note, the Trustees are consistently monitoring safeguarding risks, and maintains its safeguarding policy and training schedule up to date.
Page 5
**GRACE LONDON**
## **TRUSTEES' ANNUAL REPORT**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Plans for the future**
Our hope looking forward is to start many new churches, and to continue the slow and deliberate work of helping each person who comes through our doors discover more about Jesus and his amazing life, and find themselves amidst a family in the heart of the city.
## **Responsibilities of trustees under charity law**
The trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements, the trustees are required to:
1. select suitable accounting policies and apply them consistently;
2. observe the methods and principles in the Charities SORP;
3. make judgements and estimates that are reasonable and prudent;
4. state whether the applicable accounting standards have been followed, subject to any material
departures disclosed and explained in the financial statements; and
5. prepare the financial statements on a going concern basis unless it is inappropriate to presume
that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Approval**
This report was approved by the trustees and signed on their behalf by:
## **Andrew Haslam**
## **Tom Wheatley**
_____________________________________ _____________________________________ ANDREW HASLAM TOM WHEATLEY
Date: 25 January 2024
Page 6
## **INDEPENDENT EXAMINER'S REPORT**
## **TO THE TRUSTEES OF**
## **GRACE LONDON ('the Charity')**
I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 March 2023 on pages 9 to 22 following, which have been prepared on the basis of the accounting policies set out on pages 13 to 14.
## **Responsibilities and basis of report**
As the charity’s trustees of the Charitable Incorporated Organisation you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner’s statement**
Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed b di
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 Charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
## **Lisa Darby**
Lisa Darby FCA The Institute of Chartered Accountants in England and Wales Stewardship 1 Lamb's Passage London EC1Y 8AB
Date: 30 January 2024
Page 7
## **GRACE LONDON**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Charitable activities
4
Investments
5
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities
6
**Total expenditure**
**Net income/(expenditure)**
**Transfers between funds**
13
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
13|Unrestricted
Funds
£
654,801
2,101
1,099
658,001
450,549
450,549
207,452
-
207,452
492,495
699,946|Restricted
Funds
£
-
-
-
-
2,000
2,000
(2,000)
-
(2,000)
14,416
12,416|Total
Total
Funds
Funds
2023
2022
£
£
654,801
586,142
2,101
-
1,099
6
658,001
586,148
452,549
395,915
452,549
395,915
205,452
190,233
-
-
205,452
190,233
506,911
316,677
712,362
506,911|
|---|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing operations.
The notes on page 13-22 form part of these accounts.
Page 8
## **GRACE LONDON**
## **BALANCE SHEET**
## **AS AT 31 MARCH 2023**
|Note
**FIXED ASSETS**
Tangible assets
8
**CURRENT ASSETS**
Debtors
9
Cash at bank and in hand
10
**CREDITORS: Amounts falling**
**due within one year**
11
**Net current assets / (liabilities)**
**TOTAL NET ASSETS**
**FUND BALANCES**
13
Unrestricted Funds
General funds
Designated funds
Restricted Funds|Unrestricted
Funds
£
956
956
37,503
700,030
737,533
(38,543)
698,990
699,946
561,748
138,198
699,946
-
699,946|Restricted
Funds
£
-
-
-
12,416
12,416
-
12,416
12,416
-
-
-
12,416
12,416|Total
Funds
2023
£
956
956
37,503
712,446
749,949
(38,543)
711,406
712,362
561,748
138,198
699,946
12,416
712,362|Total
Funds
2022
£
4,920|
|---|---|---|---|---|
|||||4,920|
|||||29,601
487,520|
|||||517,121
(15,130)|
|||||501,990|
||||||
|||||506,911|
|||||374,517
117,978|
|||||492,495
14,416|
|||||506,911|
The financial statements were approved by the Board of Trustees and were signed on its behalf by:
## **Andrew Haslam**
## **Tom Wheatley**
----------------------------------------------------------------------------ANDREW HASLAM TOM WHEATLEY
Date: 25 January 2024
Charity number: 1161147
The notes on page 13-22 form part of these accounts.
Page 9
## **GRACE LONDON**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **CASH FLOW STATEMENT**
|Note
**Cash flows from operating activities:**
**_Net cash provided by/(used in) operating activities_**
a
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Purchase of property, plant and equipment
**_Net cash provided by/(used in) investing activities_**
b
b
**Cash and equivalents at the beginning of the year**
**_Cash and cash equivalents at the end of the year_**
**_Change in cash and equivalents in the reporting period_**|2023
£
225,958
1,099
(2,130)
(1,032)
224,926
487,520
712,446|2022
£
199,064|
|---|---|---|
|||6
(1,922)|
|||(1,916)|
|||197,148
290,372|
|||487,520|
## **Analysis of changes in net debt:**
|**Analysis of changes in net debt:**||||
|---|---|---|---|
|Cash
Total net funds / (debt)|At start of
year
£
487,520
487,520|Cash-flows
£
224,926
224,926|At end of
year
£
712,446|
||||712,446|
Page 10
## **GRACE LONDON**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **NOTES TO THE CASH FLOW STATEMENT**
## **Note a: Reconciliation of net income/(expenditure) to net cash flow from operating activities**
|**Note a: Reconciliation of net income/(expenditure) to net cash flow from operating activities**|||
|---|---|---|
|**Adjustments for:**
Depreciation charges and provisions for impairment
Dividends, interest and rents from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**_Net cash provided by (used in) operating activities_**
**Note b: Analysis of cash and cash equivalents**
Cash at bank with immediate access
**Total cash and cash equivalents**
**_Net income/(expenditure) for the reporting period (as per the statement of financial_**
**_activities)_**|2023
£
205,452
6,095
(1,099)
(7,903)
23,412
225,958
2023
£
712,446
712,446|2022
£
190,233
8,597
(6)
94
146|
|||199,064|
|||2022
£
487,520|
|||487,520|
Page 11
## **GRACE LONDON**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **1 Statutory Information**
The charity is a charitable incorporated organisation registered with the Charity Commission in England & Wales. The charity's registered number and principal address can be found on the Charity Information page.
## **2 Accounting Policies**
These financial statements are prepared on a going concern basis, under the historical cost convention .
These financial statements have been prepared in accordance with the "Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ("the Charities SORP"), with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland ("FRS 102") and with the Charities Act 2011. The charity meets the definition of a public benefit entity as set out in FRS 102.
The Charities (Accounts and Reports) Regulations 2008 (the '2008 Regulations') requires charities to prepare their accounts in accordance with 'Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005' but this accounting standard has since been withdrawn and has been replaced by the Charities SORP mentioned in the preceding paragraph. The charity has prepared these financial statements in accordance with the new Charities SORP; this departure from the 2008 Regulations is believed to be necessary for these financial statements to give a 'true and fair view'.
The principles adopted in the preparation of the financial statements are set out below.
a) Going concern The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and the possible implications should projected income and / or expenditure vary unexpectedly. The trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue to operate for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## b) Income
Income including investment income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.
Income from donations and legacies includes:
- i) Recoverable gift aid. This is recognised when the related donation is received. Gift aid that has not been recovered by the balance sheet date is included as a debtor.
- ii) Donated facilities, services and goods. Goods donated for distribution to beneficiaries are recognised as income when receivable at fair value (being an estimate of the amount it would cost to purchase those items). Facilities, services and goods donated for the charity's own use are recognised as income when receivable at their value to the charity.
The charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured.
When donated goods, services and facilities are distributed or consumed, an expense in respect of those items is included in the Statement of Financial Activities. At the year end any goods that have not been distributed or consumed are recognised as stock; donated fixed assets are capitalised.
- iii) Legacies. Income from legacies is recognised when a distribution is received from the estate or, if earlier, when the charity has been notified that a distribution will be made and the amount receivable can be measured reliably.
Income from charitable activities represents income receivable from goods, services and facilities supplied in furtherance of the charity's charitable objects. It includes income from church retreats and other events and courses.
Investment income represents income generated by the charity's assets and includes income from and bank interest.
The charity has taken the view that it has only one charitable activity, namely the advancement of the Christian faith, and all income from donations, legacies and charitable activities is in respect of this one activity.
Page 12
## **GRACE LONDON**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## c) Expenditure
Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured reliably.
The charity makes grants to other institutions and individuals to further its charitable objectives. Grants payable are recognised as constructive obligations arise, which is generally when the charity expresses a commitment to the recipient that can be measured reliably and then only to the extent that any conditions associated with the grant are outside of the control of the charity.
The cost of raising funds is not significant and has not been separately disclosed.
The Charities SORP requires charities with income over £500,000 to allocate costs to the various activities undertaken by the charity. The nature of the work of the charity/church is considered to be so integrated that the core charitable activity costs are considered to be for the one activity.
Governance costs, which are included in expenditure on charitable activities but are identified separately in the notes to the accounts, includes costs associated with the independent examination of the financial statements, compliance with constitutional and statutory requirements and any other expenditure incurred on the strategic management of the charity.
## d) Fund accounting
- General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are donations which are to be used in accordance with specific restrictions imposed by donors; they include donations received from appeals for specific activities or projects. Endowment funds are donations that are retained as capital in accordance with the donor's wishes. The nature of the restriction determines whether the endowments represent permanent endowments or expendable endowments.
## e) Tangible fixed assets
Items purchased or donated for the charity's own use are capitalised when the cost of purchased items, or the fair value of donated items, is more than £500 and the item is expected to benefit the charity over more than one accounting period. Depreciation is charged on a straight line basis so as to write down the value of each asset to its estimated residual value (if any) over its expected useful economic life. To achieve this objective the following rates of depreciation are charged:
Leasehold improvements Over the lease term or, if shorter, expected useful life Equipment Over 3 to 7 years
The carrying values of tangible fixed assets are reviewed for impairment in periods when events or changes in circumstances indicate that the carrying value may not be recoverable.
- f) Pension scheme arrangements The charity operates defined contribution pension schemes for its employees. Obligations for contributions to these schemes are recognised as an expense when the liability arises. The assets of these schemes are held separately from those of the charity in independently administered funds.
## g) Taxation
The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity's income.
## h) Financial instruments
- The charity's financial assets and financial liabilities all qualify as basic financial instruments, as defined by FRS102. Except for loans, creditors and debtors are measured at their expected settlement value (normally the amount of cash that the charity expects to pay or receive). The charity recognises liabilities for the principal of those loans that remains outstanding at the year end (i.e. the liabilities exclude any interest chargeable on the loans in future years).
- i) Critical accounting estimates and areas of judgement The trustees do not consider that there are any material sources of estimation or uncertainty at the balance sheet date that could result in a material adjustment to the carrying values of assets and liabilities in the next reporting period.
Page 13
## **GRACE LONDON**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **3 Donations and legacies**
|Donations of cash and similar
Income tax recoverable
**4**
**Income from charitable activities**
Church retreats and events
Other income
**5**
**Investment income**
Bank interest
**6**
**Charitable expenditure**
**a**
**Costs incurred directly on specific activities**
Books & Training Material
Conference Fees
Conference Food & Accommodation Charges
General Expenses
Hospitality Food and Drink
Pastoral Meetings Expenses
Preaching Honorariums and Hospitality
Rent
Grants & Gifts (see note 6c)|2023
£
549,904
104,897
654,801
2023
£
2,101
-
2,101
2023
£
1,099
1,099
2023
£
2,810
625
17,094
3,285
38,384
973
3,050
59,169
46,098
171,487|2022
£
485,510
100,632|
|---|---|---|
|||586,142|
|||2022
£
-
-|
|||-|
|||2022
£
6|
|||6|
|||2022
£
630
1,796
10,554
3,257
25,807
748
1,958
52,963
49,766|
|||147,479|
Page 14
## **GRACE LONDON**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **6 Charitable expenditure (continued)**
|**b**
**Costs incurred on support & administration**
Governance costs
Independent examiner's fee
Other
Salaries
Employers National Insurance
Pensions Costs
Staff Meeting Expenses
Travel - International
Travel - National
Bank Fees
Insurance
Licensing and Subscriptions
Stationery and Office Supplies
Postage, Freight & Courier
Professional Printing, Advertising & Marketing
Telephone & Internet
IT Software and Consumables
Tech, Audio and Visual support
Equipment Sundries
Depreciation Expense
**Total expenditure**|4,500
2,047
6,547
208,975
16,809
15,545
3,468
-
1,767
2,627
1,480
3,626
2,354
101
2,841
1,576
3,675
2,978
599
6,095
281,062
452,549|3,600
480|
|---|---|---|
|||4,080
180,089
14,083
13,829
1,826
940
1,708
2,277
1,214
5,346
1,100
43
2,670
1,670
4,917
541
3,505
8,597|
|||248,436|
|||395,915|
The fee payable to the independent examiner for preparing and examining the accounts was £4,500 (2022: £3,600); in addition the charity paid £800 (2022: £630) to Stewardship for additional accountancy and consultancy services.
## **c Grants payable**
Included within the figure for Grants & Gifts in note 4a above are the following:
|Included within the figure for Grants & Gifts in note 4a above are the following:||||
|---|---|---|---|
|Grants for UK and overseas mission
Grants for the relief of poverty
The comparatives for the previous year are as follows:
Grants for UK and overseas mission|Institutions
£
38,849
-
38,849
Institutions
£
42,451
42,451|Individuals
£
5,000
2,248
7,248
Individuals
£
6,000
6,000|2023
£
43,849
2,248|
||||46,098|
||||2022
£
48,451|
||||48,451|
Page 15
## **GRACE LONDON**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **6c Grants payable (continued)**
The charity's principal grants to institutions comprised:
|charity's principal grants to institutions comprised:|||
|---|---|---|
|Advance Network UK
Everyday People
Godfirst Church
Glasgow Grace Church
Common Ground Church - Bridges Retreat Centre
Common Ground Church - Madagascar
Hope Church Vauxhall
Gross wages and salaries
Social security
Pension costs
**ysis of staff costs, the cost of key management personnel and trustee remuneration**|2023
£
8,832
1,250
10,000
12,000
6,767
-
-
38,849
2023
£
208,975
16,809
15,545
241,329|2022
£
33,451
-
-
-
-
3,000
6,000|
|||42,451|
|||2022
£
180,089
14,083
13,829|
|||208,001|
## **7 Analysis of staff costs, the cost of key management personnel and trustee remuneration**
The average monthly number of employees during the year was 7.8 (2022: 6.9). Most of the charity's activities are carried out by volunteers.
The charity's key management comprise the trustees and the key staff named on the Charity Information page. Total employment benefits payable to key management for the year were as follows:
|Employer
Wages &
pension
salaries
contributions
Trustees:
Andrew Haslam
71,960
5,757
Other members of key management
59,876
4,790|2023
£
77,717
64,666|
|---|---|
||142,383|
|The following amounts were payable in the previous year:
Employer
Wages &
pension
salaries
contributions
Trustees:
Andrew Haslam
66,000
5,280
Other members of key management
55,000
4,400|2022
£
71,280
59,400|
|---|---|
||130,680|
Andrew Haslam served as a Senior Pastor and received the above payments for serving in that capacity, not for serving as a trustee; these payments are permitted by the charity's governing document.
Page 16
## **GRACE LONDON**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **8 Tangible fixed assets**
|Cost
At 1 April 2022
Additions
At 31 March 2023
Accumulated depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
**9**
**Debtors**
**Falling due within one year:**
Trade debtors
Tax recoverable
Other debtors
Prepayments and accrued income
**Total debtors**
**10**
**Cash at Bank and in Hand**
Cash at bank with immediate access
**11**
**Creditors: liabilities falling due within one year**
Trade creditors
Accruals
Deferred income
Grant obligations|Fixtures,
fittings and
equipment
£
44,027
2,130
46,157
39,107
6,095
45,202
956
4,920
2023
£
4,000
12,374
6,229
14,900
37,503
2023
£
712,446
712,446
2023
£
2,358
4,997
23,188
8,000
38,543|Total
2023
£
44,027
2,130|
|---|---|---|
|||46,157|
|||39,107
6,095|
|||45,202|
|||956|
|||4,920|
|||2022
£
4,000
11,155
14,101
344|
|||29,601|
|||2022
£
487,520|
|||487,520|
|||2022
£
5,322
3,508
-
6,301|
|||15,130|
## **12 Pension commitments**
During the year employer’s pension contributions totalling £15,545 (2022: £13,829) were payable to defined contribution personal pension schemes. Pension contributions totalling £254 were owing at the balance sheet date (2022: £nil).
Page 17
## **GRACE LONDON**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **13 Funds**
During the year the movements in the charity's funds were as follows:
|_Designated Funds_
General reserves
Giving to Advance grant fund
War Chest
Other grant giving
_General Unrestricted Funds_
Total Unrestricted Funds
_Restricted Funds_
Mercy Fund
Aggregate of funds|Opening
balance
2023
£
34,986
-
70,841
12,151
117,978
374,517
492,495
14,416
14,416
506,911|Incoming
resources
2023
£
240
-
138
-
379
657,622
658,001
-
-
658,001|Outgoing
resources
2023
£
-
-
-
(30,017)
(30,017)
(420,532)
(450,549)
(2,000)
(2,000)
(452,549)|Transfers
in the year
2023
£
-
-
24,929
24,929
49,858
(49,858)
-
-
-
-|Gains and
losses
2023
£
-
-
-
-
-
-
-
-
-
-|Closing
balance
2023
£
35,227
-
95,908
7,063|
|---|---|---|---|---|---|---|
|||||||138,198
561,749|
|||||||699,947|
|||||||12,416|
|||||||12,416|
|||||||712,362|
The transfers referred to above were made for the following reasons:
a) Funds are transferred from Unrestricted Funds to Designated Funds for the purposes of giving to the Advance Movement, building a War Chest for future church growth and church planting and giving to other causes based on specific proportions of the charity's income.
## **Analysis of net assets by fund**
The assets and liabilities of the various funds were as follows:
|**ysis of net assets by fund**
assets and liabilities of the various funds were as follows:||||
|---|---|---|---|
|Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year|General
Designated
funds
funds
£
£
956
-
37,503
-
561,833
138,198
(38,543)
-
561,748
138,198
Unrestricted Funds|Restricted
funds
£
-
-
12,416
-
12,416|2023
£
956
37,503
712,446
(38,543)|
||||712,362|
Page 18
## **GRACE LONDON**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **13 Funds (continued)**
In the previous year the movements in the charity's funds were as follows:
|_Designated Funds_
General reserves
Giving to Advance grant fund
Mercy Fund
War Chest
Other grant giving
_General Unrestricted Funds_
_Total Unrestricted Funds_
_Restricted Funds_
Salt ministry / fund
Mercy Fund
_Aggregate of funds_|Opening
balance
2022
£
35,001
(256)
10,475
43,690
-
88,910
215,807
304,717
1,485
10,475
11,960
316,677|Incoming
resources
2022
£
6
-
-
-
-
6
585,992
585,998
150
-
150
586,148|Outgoing
resources
2022
£
-
(33,451)
-
-
(15,000)
(48,451)
(338,099)
(386,550)
(9,175)
(190)
(9,365)
(395,915)|Transfers
in the year
2022
£
(21)
33,707
(10,475)
27,151
27,151
77,513
(89,183)
(11,671)
7,540
4,131
11,671
-|Gains and
losses
2022
£
-
-
-
-
-
-
-
-
-|Closing
balance
2022
£
34,986
-
-
70,841
12,151|
|---|---|---|---|---|---|---|
|||||||117,978
374,517|
|||||||492,495|
|||||||-
14,416|
|||||||14,416|
|||||||506,911|
## _**Analysis of net assets by fund**_
In the previous year, the assets and liabilities of the various funds were as follows:
|Tangible fixed assets
Debtors
Cash at bank and in hand
Creditors falling due within one year|General
Designated
funds
funds
£
£
4,920
-
29,601
-
355,126
117,978
(15,130)
-
374,517
117,978
Unrestricted Funds|Restricted
funds
£
-
-
14,416
-
14,416|2022
£
4,920
29,601
487,520
(15,130)|
|---|---|---|---|
||||506,911|
Page 19
## **GRACE LONDON**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **13 Funds (continued)**
General Reserves Fund: Contingent funds designated for use in exceptional financial circumstances. The use of these funds are governed by the trustees' reserves policy, which targets a maintenance of an average of 1.5 months of payroll and rent payments, and the drawing down of such funds is complemented by a trustees' rationale and plan to recover the reserves target level.
Giving to Advance grant fund: Funds designated for fulfilling the Trustees' voluntary giving pledge to support financially, the Advance Network's operations in the UK and internationally. No transfers were made in FY22/23 (FY21/22: £33,707) from general funds into this designated fund for fulfil giving pledges to the Advance Network in the UK and abroad.
Other Giving grant fund: Funds designated for fulfilling the Trustees' voluntary giving pledge to support organisations and individuals in their operations to further objectives aligned with those of Grace London's or are suitable beneficiaries of charitable support as discerned by the Trustees. Net transfers of £24,929 were made in FY22/23 (FY21/22 £27,151) from general funds to this designated fund to fulfil discretionary donations to the organisations and individual.
Salt Ministry fund: Funds began being collected in FY18/19 and are restricted for the purpose of the Salt project aiming to engage Londoners on issues of faith, philosophy and life through articles, events and courses. With the flourishing of this ministry and expenditure significantly exceeding income, a transfer was made from general funds to close the restricted fund at the end of the 20212022 financial year.
Mercy Fund: setup in 2020 to help anyone in the church who finds themselves in need and without support.
## **14 Transactions with related parties**
During the year the charity:
- a) received donations totalling £71,970 (2022: £90,074) from related parties (which includes trustees, any other members of key management and anyone closely connected to them).
- b) paid no expenses (2022: £nil) to or on behalf of trustees other than reimbursements for expenses incurred when acting as agent for the charity or incurred when undertaking employment duties not connected with serving as a trustee.
Except as disclosed in note 8 'Analysis of staff costs', there have been no other transactions with related parties during the year.
Page 20
## **GRACE LONDON**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES WITH COMPARATIVES**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|Note
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
3
Charitable activities
4
Investments
5
**Total income and endowments**
**EXPENDITURE ON:**
Charitable activities:
6
**Total Expenditure**
**Net income/(expenditure)**
**Transfers between funds**
13
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
13||6|Unrestric|Designated
2023
£
-
-
379
379
30,017
30,017
(29,639)
49,858
20,219
117,978
138,197
ted funds|Restricted
2023
£
-
-
-
-
2,000
2,000
(2,000)
-
(2,000)
14,416
12,416|Total
2023
£
654,801
2,101
1,099
658,001
452,549
452,549
205,452
-
205,452
506,911
712,362|||G
5|Unrestric|Designated
2022
£
-
-
6
6
48,451
48,451
(48,445)
77,513
29,068
88,910
117,978
ted funds|Restricted
2022
£
150
-
-
150
9,365
9,365
(9,215)
11,671
2,456
11,960
14,416|Total
2022
£
586,142
-
6
586,148
395,915
395,915
190,233
-
190,233
316,677
506,911|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||6|||||||5|||||
|||4|||||||3|||||
|||4|||||||3|||||
Page 21