2022-08-31-accounts

Journey Communities Financial Statements Year ended 31 August 2022

Charity Number: 1163017

Journey Communities Financial Statements Year Ended August 31, 2022 1

Contents	Page
Administrative Information	2
Trustee’s Annual Report	3 - 10
Independent Examiner’s Report	11
Statement of Financial Activities	12
Balance Sheet	13
Notes to the Financial Statements	14 - 21

Journey Communities Administrative Information Year Ended August 31, 2022 2

The Trustees Jeffrey Lothamer (Chairman) Peter Stoddart (appointed September 2021) Helen Loo (appointed September 2021) Gigi Shaban (appointed June 2022) Luke Hatcher (appointed September 2021) Simon Loo (resigned April 2022) Registered Office 2 West Circular Road Ambrosden Bicester, OXON OX25 2BB England Independent Examiner Josh Kingston Bsc ACA Burton Sweet Limtied The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR Bank Barclays 36 Market Square Town Centre Bicester OX26 6AQ

Journey Communities Trustees’ Annual Report Year Ended August 31, 2022 3

The Trustees have pleasure in presenting their report and the unaudited financial statements of the charity for year ended 31 August 2022.

Structure, Governance and Management

History

Journey Communities, a Charitable Incorporated Organisation, was incorporated on 5 August 2015 (charity number 1163017). On 5 August 2015, it achieved charitable status and was entered onto the Register of Charities with the Registered Charity Number 1163017.

Prior to this, Journey Communities had been meeting as a church formerly known as The Crowded House Bicester informally beginning in Spring 2011. In the Autumn of 2014, under the guidance of minister Steven Caton on behalf of the church staff, 7 members of the church met regularly to arrive at a name for the church which communicated its identity. In the winter of 2014/2015, the approved name of the church formally became Journey Communities.

In the Autumn of 2015 Journey Communities staff and elders at the time elected to join the Fellowship of the Churches in Great Britain and Scotland (simply known as FCC). FCC provides consultation, support, encouragement and is ready to assist the church should it need and ask for it. Steven Caton was ordained as a minister in the FCC October of 2016.

In the Spring of 2017 Journey Communities started FLTR Coffee Ltd., a community café in the Langford Village neighbourhood of Bicester, to promote and fulfil such other charitable purposes beneficial to the community in Bicester.

In the Autumn of 2021 Journey Communities was continuing to grow and in order to better achieve the charity objectives the church organised into two communities meeting in different neighbourhoods in Bicester. We called these communities microchurches. The Microchurch Network was establish under the charity as an arm to serve these microchurches, and others, and to help them achieve the charity objectives. These two microchurches are technically one church under the name Journey Communities and seek to achieve the charity objectives in their respective communities.

Recruitment and Appointment of Trustees

Upon pursuit of charity registration new trustees were (and are) selected on the basis of their experience and skills, normally from amongst the members of Journey Communities, Bicester, but also from those with skills, familiarity and goodwill towards the church who are outside the church congregation. It is seen to be desirable that the Core Leadership team (Staff) of the church should be represented on the Trustee Board and Jeff Lothamer have fulfilled this dual role during the current year.

The Core Leaders and the Trustees aim to meet together on a regular basis to ensure effective governance of the church and discuss issues of mutual concern or decision.

The practice that is employed in appointing new Trustees is that potential new Trustees are identified and approached following discussion at a Trustees’ meeting; then, and in consultation with the Core Leaders, they are offered the opportunity to meet the existing Trustees with a view to

Journey Communities Trustees’ Annual Report Year Ended August 31, 2022 4

possible Trusteeship. The Trustees regularly consider the composition of the Trustee Board in order to ensure that the Board has access to the right balance, diversity and spread of expertise needed to govern the affairs of the Charitable Incorporated Organisation. New Trustees are appointed formally by the current Trustee Board of the church.

At the April 2022 trustee meeting we discussed one new potential trustee, Jazz Shaban, and agreed to pursue her to consider the position. All accepted and Simon Loo submitted by email a letter of resignation as of 11[th] April 2022.

Organisation of the Charitable Incorporated Organisation

The Trustees meet three times per year to administer the affairs of the CIO and there are no subgroups acting for them. During the year, two of the Trustees benefited financially from the operations of the CIO and clear expectations of how they participate concerning financial decisions is outlined in our Governance Policy; services provided by Trustees and other related party activities are outlined in the Governance Policy as well.

During the year five staff members were employed by Journey Communities (two full-time and three part-time). The staff leadership of the church operates pertaining to areas of expertise, ie, worship leading, congregational teaching, financial and organisational leadership, leadership development, community ministry, youth and children’s programs. Four of the five staff members’ salaries are funded from various partners in the United States. These staff are Jeff and Christie Lothamer and Steve and Sarah Caton. As a result, activity, time, and travel to maintain these partnerships is required by these staff members. These staff members are members of Greater Europe Mission of which Journey Communities has a grant agreement and partnership.

Qualification for membership of the church is currently expressed by virtue of Christian commitment, commitment to the Church and through the desire to be formally recognised as a member of Journey Communities. Decisions about the overall direction of the Church and for its care are made by the Core Leadership, with input as necessary from other persons or groups. Key issues are discussed widely within the church.

The church community gathers regularly for worship, community, mission, and discipleship. Each leader is trained to lead a group of people practically in life. Their training is a hybrid of theological, social and practical strategies to make individuals and families strong. Each leader and potential leaders are encouraged, equipped, and resourced through their participation in the Leadership Collective, a community of leaders that meet every month. The Leadership Collective is led by two of our staff members.

Objects, Mission and Aims

The objects of Journey Communities are:

To advance the Christian faith in Bicester and in such other parts of the United Kingdom or the world for the benefit of the public in particular, but not exclusively through the holding of prayer meetings, lectures, public celebration of religious festivals producing and/or distributing literature on the Christian faith to enlighten others about the Christian religion.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2022 5

To Promote and fulfil such other charitable purposes beneficial to the community in Bicester and in such other parts of the United Kingdom or the world as the trustees may from time to time think fit.

The Trustees confirm that in setting their objectives they have complied with their duty under the Charities Act 2011 to have a due regard to the public benefit guidance published by the Charity Commission.

Activities, Achievements, Development

ACTIVITIES

FLTR Community Microchurch

• In Autumn 2021, the FLTR Community reformed, seeing a few different communities merge together to form a community where we experience together these 4 things: Worship, Community, Mission and Discipleship. There are several different missions that this community is involved with, some directly through FLTR or in Langford community, and some with people’s schools or work places.

• Every week we gathered as a community to worship and “look up to Jesus” in some way, either by praying together for our community, or by what we call our “Worship, Teach and Dialogue.”

• Community happened on a regular basis through FLTR during open hours but also through relationships continuing outside the hours of the shop.

• We were able to shepherd every one of our regular community members in thinking through what their personal mission is to love and bless their neighbour and how we can support them.

• Most of the members of the microchurch were connected in with a DNA where they experience discipleship, nurture and accountability.

Graven Hill Microchurch

• During the last year, we decided as an microchurch to apply BLESS (Begin with prayer, Listen, Eat, Serve, Story) as a rubric by which all our activities are motivated. At the same time, as part of our core identity, we were always cognizant of the need to ground their identity in Worship, Mission & Community (UP, IN, OUT) .

• For every Thursday of each month, we have core-team time to share, pray and plan with a mindset of “Begin with prayer,” and “Listen” to Persons of Peace (POP) from our interaction during “EAT” social times.

The Microchurch Network

• Service Platform Staff Hot day : There were 7 individuals paid and volunteers contributing varying amounts of time to serve as the staff who serve the microchurches. There were: Susan Cuin (volunteer), Jeff and Christie Lothamer, Steve and Sarah Caton, Emily Spicer (intern). We co-worked on Tuesdays from 9-2pm, with regular staff and team meetings.

• Regular Gatherings: We changed the purpose of Gathering to a monthly Celebration Gathering ran by the Service Platform staff with the purpose of Missional equipping. We held these events once a month. We began to invite others to visit with us in this space and be equipped along side of us. Highway Christian Church members were invited to join in Gatherings as guests.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2022 6

Journey Communities microchurches shared in an Easter Gathering with Highway Christian Church.

The Service Platform Staff ran a Christmas Dessert Event as an outreach opportunity for the churches to bring their friends to a Christmas event where they would hear the Gospel presented. Journey and Highway friends came to this event.

• Microchurches: 2 existing missional communities on Langford Village and Graven Hill Village began to own their identity as a microchurch with their own unique rhythms of gathering. Each gathering in some capacity for prayer, Bible learning, worship, and various missional activities. We regularly checked in if they needed any help. We did provide regular teaching for the FLTR Community MC.

• Missional Community Planting Event: Jeff and Christie began exploring microchurch planting on Kingsmere estate. This began as a group of people from various churches gathering for weekly Bible Study. Lothamers began to run after school basketball club for Whitelands students and Tuesday night open gym for 15+ to play basketball and build relationships. A 3v3 tournament was held where Christie shared her testimony and presented the good news of Jesus through story. The basketball club has created a safe and encouraging space for people interested in basketball to come together.

• Youth Meetings: Emily Spicer ran events for youth on Thursday nights alternating DNA small groups to big group bible centred events. Various youth outings were offered under Emily’s organisation termly.

• Elder’s Meetings: No more elder’s meeting. We began to imagine and implemented a college of leaders for the new network shape of our churches called The Leadership Collective. These leaders began to meet once a month.

• Children’s Meetings : Graven Hill Microchurch had a need for their children, so we organised and offered, under the leadership of Simon Loo, with the consultation of Sarah Caton, monthly events for Children with a Bible learning time.

US Partnership

• Calling Lab – Christie Lothamer has led a few of these labs under the charity work. One lab she specifically served members of Regeneration Church in OH, part of our personal network of churches.

• Lothamer Travel to USA - In January Jeff travelled to Michigan, Indiana, and Ohio and met with various individuals and church partners, and potential partners. Jeff consulted with one church partner on the issue of church discipleship.

• Steve Caton continues a far reach for our church through GEM, leading Spiritual Retreats for missionaries. We look forward to bringing at least one retreat to our local church during the next ministry year.

• Sarah has honed her leadership skills as an Area Leader for GEM leading several area missionaries in personal development. These skills come into play in many ways for the church and also the network including church/network communication and DNA development and leadership.

ACHIEVEMENTS

FLTR Community Microchurch

• We were able to bring about several after-hours events at FLTR, including board game and create evenings, a “listening” series focusing on healthy communication, and “New to Langford” meet your neighbour sessions. It was great to see many from our micro-church

Journey Communities Trustees’ Annual Report Year Ended August 31, 2022 7

• involved in various ways, and to love and deepen relationships with our community through these things.

• We saw several in our community grow in their teaching and worship leading abilities as we gave them opportunities to serve in those ways during our gatherings.

• The Journey owned coffee shop, named FLTR Coffee, celebrated its 5th anniversary in April 2021.

Graven Hill Microchurch

• We held monthly socials inviting a few new families on Graven Hill with specific circumstances of being new immigrants to the UK. We feel we’ve been able to get closer with these families and have had opportunities to encourage and share our faith in various get-togethers.

• Our network of relationships continues to strengthen not only through the monthly socials but also through our individual relationships with our respective neighbours.

• One of the long-time members of our community had been increasingly unwell from a degenerative disease. Due to his immobility, he was not able to take care of the lawn. We took the opportunity to call on our extended network to them in getting their garden into a much better state. We felt that the fact we could call for and receive help meant that we had achieved a level of strong relationships on Graven Hill that we had dreamt about since moving onto the estate.

The Microchurch Network

Execution of the digitally and relationally networked microchurch plan:

• Shifted Journey Centralised Church Staff to a networked model of microchurch leaders and a separate Service Platform Staff

• Continued to lead the Service Platform Staff towards the right hand side of the continuums outlined below. Movement was made in each category and that is a massive achievement.

• SHIFT 1: From Static to Adaptive Systems

• SHIFT 2: From Boastful to Modest Superstructures

• SHIFT 3: From Consumer to Creator Focused

• SHIFT 4: From an Ambiguous to a Simple Definition of Church

• SHIFT 5: From a Few to ALL Called into Mission

• SHIFT 6: From Control to Servanthood in Leadership

• SHIFT 7: From Scarcity to Abundance in Mission

• Shifted the Centralised Youth Leader to a Youth Integration Role within the Network

• Started a Children’s club for primary age children

• Christmas Outreach Event

• Implemented system of goals and accountability for work teams

• Adopted Highway Christian Church and their 3 house churches into the network.

• Began regular coaching with Microchurch leaders and SP staff as Line Management meetings.

• Implemented systems of operations for the Service Platform that provide a more streamlined approach to our work in the Network. Google Suite, Notion, Mighty Network Apps. These were under the direction of Simon Loo.

• Updated websites to be true to our current vision and operations.

• Launched a virtual space (Microchurch network App) for the Network to populate and connect thus extending the network of in-person and online relationships

Journey Communities Trustees’ Annual Report Year Ended August 31, 2022 8

US Partnerships

• The Lothamers’ established two new church partnerships with Redemption Church in Ohio and Grace Gathering in Indiana.

• Steve completed his qualifications as a certified Spiritual Director and is now giving Spiritual Direction sessions to 4 ‘fringe’ or ‘people of peace’ connections in Bicester. Some are near our church family and others or only just now warm to Jesus and the Gospel.

DEVELOPMENT

FLTR Community Microchurch

• We did some preliminary exploring, prayer and planning around a few future missions, including Kintsugi Hope Wellness groups (starting Jan 2023), a 20-40’s meal/table connect group, and parenting courses.

Graven Hill Microchurch

• We did some preliminary praying and thinking about the year ahead. We decided that meeting again regularly on alternate Thursdays was sustainable as two families with young children. On one of the Thursdays we will Pray, Listen and Plan activities and do a “listen and dialogue” on a teaching series on the other Thursday. We also will invite a couple other friends in the neighbourhood to join with us in these rhythms.

The Microchurch Network

• The co-directorship of the Network Function and Operations officially accepted by trustees.

• The further development of Journey Communities can best be understood as two concurrent development of the two OS. One being the network of churches, the other being the Service Platform. Two separate in function and governance.

• Governance for the Service Platform is overseen by: The Strategic Team, accountable to the Trustees.

• Co-director for Organic/Relational OS (Christie Lothamer)

• Co-director for Organised/Functional OS (Simon Loo)

• Vision Consulting (Jeff Lothamer)

Leadership and Team development

• Governance for the Journey Communities Churches are governed by the Leaders of the churches, accountable to The Leadership Collective and ultimately the trustees.

• Leadership Collective is a group of leaders in Micro-churches and micro-missions that meet monthly for the purpose of encouragement, development, and mutual accountability.

• The Service Platform is governed by the Co-Directors for strategic leadership and functions with a peer led team ethos. There is still quite a gap in organisation effectiveness due to insufficient man-power - this related to underdeveloped funding model.

• Each microchurch is led by at least one confirmed elder and a leadership team for their respective charity accountable to the trustees.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2022 9

Technical Development:

• Minimal development has been enacted to use new digital tools for streamlining work.

• Efforts were made to shift our online presence and create digital space for the network to engage.

COVID-19 Impact

There was a waning impact on day-to-day operations. Shifting some aspects of relationship and communication toward digital. We now move more seamlessly between online and digital platforms.

Financial Performance

Funds held by the charity are:

• Unrestricted general funds - that can be used in accordance with the charitable objects at the discretion of the Trustees.

• Restricted funds - that can only be used for restricted purposes within the objects of the charity; restrictions arise when donations or grants are received for particular restricted purposes.

Financial Activities

The Trustees are grateful to the members and regular donors within the church for the (often) sacrificial way in which they contribute to meet the financial needs of the church. Many of the donors are family or young people, so limited in their ability to give. The gifts given for unrestricted general funds were similar to the previous fiscal year and met the needs of the budget and community projects. However, the trustees continue to dream about greater impact in our community. Therefore, the Trustees are committed to encouraging a continued commitment to increase giving so that the church can develop its local community work in the future and also its financial support to Christian workers and organisations in the UK and abroad alongside its other activities. We are convinced that we will have the sufficient resources through the faithful giving of our members to continue to meet our objectives.

We continued our relationship with Greater Europe Mission (North American) who provides substantial funding which allows us to employ pastoral staff.

Reserves

The Trustees believe that the Charity should hold financial reserves equivalent to 3 months operating costs (exc missionary staff costs) which equates to £6,500. Our missionary staff will have their own reserve funds, either with Journey Communities or Greater Europe Mission, our partner organisation in the US. At the end of our fiscal year, 31st August 2022, the charity had total funds of £74,143. Of the total funds, £46,104 are considered to be unrestricted free reserves which is currently above the target level. The trustees acknowledge that the amount of reserves held at the end of the year are above that of the policy amount but intend to invest further in one of the new charity initiatives, the Microchurch Network UK, to bring reserves back down to the policy level. The trustees are also looking to employ an administrator for this project.

Journey Communities Trustees’ Annual Report Year Ended August 31, 2022 10

Statement of trustees’ responsibilities

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales 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 charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping sufficient 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, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. 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.

General Conclusion

The Trustees look forward to the future with confidence and continue to see much need for the Church's charitable activities in seeking to fulfil its aims, mission and objects. We will remain committed to our social and spiritual investment in young people and families in our community. The Trustees consider that the Charity is on a proper footing both organisationally and financially. They welcome any enquiries in respect of clarification of the Charity's work or its future plans or financial and organisational arrangements.

Enquiries should be directed to the Chairman - Mr Jeff Lothamer, c/o the registered office.

2 West Circular Road Ambrosden Bicester, Oxfordshire OX25 2BB

Jun 15 2023

Signed by order of the Trustees on ……………………………………………………………

Jeff Lothamer Chairman of Trustees

Journey Communities Independent Examiner’s Report Year Ended August 31, 2022 11

Independent examiner’s report to the trustees of Journey Communities

I report to the trustees on my examination of the accounts of Journey Communities (the Charity) for the year ended 31 August 2022.

Responsibilities and basis of report

As the charity trustees of the Charity 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 2011 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

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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.

Josh Kingston Bsc ACA Burton Sweet Chartered Accountants The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Jun 15 2023

Date: …………………………………………………………

JOURNEY COMMUNITIES

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 AUGUST 2022

Note Income from: Donations and legacies 2 Investments Total income Expenditure on: Charitable activities 3 Total expenditure Net income/(expenditure) 5 Transfers between funds 12 Net movement in funds Total funds at start of year 12 Total funds at end of year 12	Unrestricted Funds £ 157,675 1 157,676 150,086 150,086 7,590 - 7,590 66,475 74,065	Restricted Funds £ - - - - - - - - 78 78	Total Funds 2022 £ 157,675 1 157,676 150,086 150,086 7,590 - 7,590 66,553 74,143	Total Funds 2021 £ 157,208 3 157,211 138,950 138,950 18,261 - 18,261 48,292 66,553

The Charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing.

The notes on pages 14 to 21 form part of these financial statements See note 8 for fund-accounting comparative figures

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JOURNEY COMMUNITIES

BALANCE SHEET

AS AT 31 AUGUST 2022

2022 Note £ Fixed assets Tangible assets 9 1,279 Investments 10 26,682 27,961 Current assets Cash at bank and in hand 48,042 48,042 Liabilities Creditors : amounts falling due within one year 11 (1,860) Net current assets 46,182 Total assets less current liabilities 74,143 Net assets 74,143 Funds Unrestricted funds General funds 13 74,065 Restricted funds 13 78 Total funds 74,143 Jun 15 2023	2021 £ 259 26,682 26,941 41,292 41,292 (1,680) 39,612 66,553 66,553 66,475 78 66,553

These financial statements were approved by the Trustees on ……........................................... and are signed on their behalf by:

Jeff Lothamer Trustee

The notes on pages 14 to 21 form part of these financial statements

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JOURNEY COMMUNITIES NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

1 Accounting policies

Accounting convention

The 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) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The charity is a public benefit entity as defined under FRS102. There are no material uncertainties about the charity’s ability to continue as a going concern, despite the significant uncertainty being caused by COVID-19 and the national cost of living crisis. Whilst the Trustees expect there to be a significant impact on the charity’s operations and reserves in the coming months and years, the charity has sufficient reserves to be able to meet these challenges.

Income

Income from donations is included in income when these are receivable, except as follows:

I. When donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods; II. When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred until the pre-conditions have been met.

Legacies are included on a receivable basis where charity is entitled to the income, it can be measured reliably and receipt is probable. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is not included in income but is treated as a contingent asset and disclosed if material.

Investment income is included on a receivable basis.

Donations in kind comprise donated services where the costs are measurable and the services would otherwise have to be paid for to maintain operational effectiveness.

Expenditure

Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered.

Charitable Activities

Grants awarded are allocated to charitable activities.

Grants awarded are treated as expenditure and a liability in the accounts as soon as they become legal or constructive obligations. In the case of multi-year grant awards, the funding for all years is immediately recognised unless there are conditions which need to be met by the recipient to enable the release of subsequent years’ funding.

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JOURNEY COMMUNITIES NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

1 Accounting policies (continued)

Governance costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. Governance costs are included within support costs.

Allocation and apportionment costs

Certain expenditure is directly attributable to specific activities and this has been included in those cost categories. Other costs, which are attributable to more than one category, are apportioned across cost categories on the basis of an assessment of workload carried out from time to time.

Pension costs and other post-retirement benefits

The charity contributes to defined contribution pension schemes. Contributions payable to the charity's pension schemes are charged to the Statement of Financial Activities in the period to which they relate.

Tangible fixed assets

Fixed assets are held at cost less accumulated depreciation. Assets costing less than £500 are not capitalised. Depreciation is calculated so as to write off the cost of an asset, less its estimated ultimate residual value, over the useful life of that asset as follows:

Fixtures, fittings and equipment

• over 4 years; straight line

Fixed asset investments

Investments are included at cost at 31 August. The SOFA includes the net gains and losses arising on revaluations and disposals during the year.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objects 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.

2 Income from: Donations and legacies

Donations & Gifts Grants Greater Europe Mission (North American) FLTR	Unrestricted Funds £ 22,065 58 128,130 7,422 157,675	Restricted Funds £ - - - - -	Total Funds 2022 £ 22,065 58 128,130 7,422 157,675	Total Funds 2021 £ 25,381 10,845 118,553 2,429 157,208

All income from doantions and legacies in the previous year was unrestricted

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JOURNEY COMMUNITIES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

3 Charitable activities expenditure

Direct Costs Church resources Leadership development Personal development training Church retreat Learning community Denominations/networks Special projects Gathering/events GC Support/mission Mission mobilisation Payroll services Salaries and staff costs Youth activities Benevolent giving FLTR Generosity Investment Support Costs Office costs Bank charges Website and technology Depreciation Insurance Governance Costs (Note 4)	Unrestricted Funds £ 665 770 485 - - 1,794 - 1,136 908 - 90 126,619 3,853 60 5,853 2,481 - 1,923 521 368 2,560 150,086	Restricted Funds £ - - - - - - - - - - - - - - - - - - - - - -	Total Funds 2022 £ 665 770 485 - - 1,794 - 1,136 908 - 90 126,619 3,853 60 5,853 2,481 - 1,923 521 368 2,560 150,086	Total Funds 2021 £ 434 - - 841 358 4,084 22 1,988 145 206 90 117,260 2,942 66 2,468 1,244 84 4,341 136 354 1,887 138,950

Included within prior year special projects is £22 relating to restricted expenditure. All remaining expenditure in prior year was unrestricted.

4 Governance costs

Independent Examiner's Fees: - for independent examination - for accounts preparation - for other services - under/(over) accrual in previous year	Unrestricted Funds £ 840 1,020 400 300 2,560	Restricted Funds £ - - - - -	Total Funds 2022 £ 840 1,020 400 300 2,560	Total Funds 2021 £ 700 860 327 - 1,887

Governance costs in the prior year were unrestricted.

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JOURNEY COMMUNITIES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

5 Net income/(expenditure) for the year

----- Start of picture text -----
|||| |---|---|---| |This is stated after charging:|2022|2021| |£|£| |Independent examiner's fees|2,560|1,887| |Trustees' travel, meeting and training expenses|300|-| |Depreciation|521|136|

----- End of picture text -----

No trustees have been reimbursed for expenses in respect of carrying out their duties as a Trustee (2021: £Nil).

Aggregate donations from Trustees, key management personnel, and other related parties was £Nil (2021: £Nil).

6 Staff costs and numbers

The aggregate payroll costs were:

----- Start of picture text -----
|||| |---|---|---| |2022|2021| |£|£| |Wages & salaries|120,808|118,597| |Social security costs|5,540|4,600| |Pension contributions|3,979|3,832| |130,327|127,029|

----- End of picture text -----

No employee received emoluments of more than £60,000.

The average weekly number of employees during the year was 5 (2021: 5), calculated on the basis of average headcount. The total employment benefits received by key management personnel including employer national insurance and employer pension were £130,327 (2021: £116,207).

7 Taxation

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

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JOURNEY COMMUNITIES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

----- Start of picture text -----
8 Statement of Financial Activities comparative figures
Unrestricted Restricted Total Funds
For the year ended 31 August 2021 Funds Funds 2021
£ £ £
Income from:
-
Donations and legacies 157,208 157,208
Investments 3 - 3
Total income 157,211 - 157,211
Expenditure on:
Charitable activities 138,928 22 138,950
Total expenditure 138,928 22 138,950
Net income/(expenditure) for the year 18,283 (22) 18,261
Transfers between funds - - -
Net movement in funds 18,283 (22) 18,261
Total funds at start of year 48,192 100 48,292
Total funds at end of year 66,475 78 66,553
9 Tangible fixed assets
Fixtures,
fittings and
equipment Total
£ £
Cost or valuation
At 1 September 2021 542 542
Additions 1,541 1,541
At 31 August 2022 2,083 2,083
Depreciation
At 1 September 2021 283 283
Charge for the year 521 521
At 31 August 2022 804 804
Net book value
At 31 August 2022 1,279 1,279
At 31 August 2021 259 259
----- End of picture text -----

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JOURNEY COMMUNITIES NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

10 Investments

During the 2017 accounting period the Charity set up a wholly owned trading subsidiary, FLTR Coffee Ltd, in which it owns 100% of the £26,682 issued share capital.

The subsidiary's first period of accounts were made up to 31 December 2017.

In the 2018 year a further loan to FLTR Coffee was extended by the Charity totalling £2,616. This increased the balance owed to the charity to £3,382 at the year-end. On 31 October 2018 this loan was converted to additional shares in FLTR Coffee Ltd.

Share capital 11 Creditors: amounts falling due within one year Accruals and deferred income	2022 £ 26,682 26,682 2022 £ 1,860 1,860	2021 £ 26,682 26,682 2021 £ 1,680 1,680

12 Movement in funds

For the year ended 31 August 2022

At 1 September 2021 Income £ £ Restricted funds Hardship Fund 78 - 78 - Unrestricted funds General Funds 66,475 157,676 66,475 157,676 Total funds 66,553 157,676	Expenditure £ - - (150,086) (150,086) (150,086)	Transfers £ - - - - -	At 31 August 2022 £ 78 78 74,065 74,065 74,143

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JOURNEY COMMUNITIES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

12 Movement in funds ( continued )

For the year ended 31 August 2021

Restricted funds Hardship Fund Unrestricted funds General funds Total funds	At 1 Sep 2020 £ 100 100 48,192 48,192 48,292	Income £ - - 157,211 157,211 157,211	Expenditure £ (22) (22) (138,928) (138,928) (138,950)	Transfers £ - - - - -	At 31 August 2021 £ 78 78 66,475 66,475 66,553

Restricted funds

Hardship Fund represents monies donated towards neighbourhood aid for those at risk and in need during COVID-19 lockdown.

Designated funds

Hardship Fund was established by Trustees in order to reflect the desire to help those in financial trouble.

13 Analysis of net assets between funds

As at 31 August 2022 Tangible fixed assets Investments Other net assets	Restricted Funds £ - - 78 78	Unrestricted Funds £ 1,279 26,682 46,104 74,065	Total 2022 £ 1,279 26,682 46,182 74,143

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JOURNEY COMMUNITIES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

13 Analysis of net assets between funds (continued)

As at 31 August 2021 Tangible fixed assets Investments Other net assets	Restricted Funds £ - - 78 78	Unrestricted Funds £ 259 26,682 39,534 66,475	Total 2021 £ 259 26,682 39,612 66,553

14 Related party transactions

Transactions with Trustees

Stephen Caton, a Trustee received a salary of £17,400 (2021: £16,800) in the current year for duties carried out as an employee of the Charity. The spouse of Stephen Caton was also employed by the Charity and received a salary of £20,200 (2021: £20,300).

Jeff Lothamer, a Trustee received a salary of £17,175 (2021: £14,750) in the current year for duties carried out as an employee of the Charity. The spouse of Jeff Lothamer was also employed by the Charity and received a salary of £17,175 (2021: £14,750).

These transactions were authorised and agreed by the Trustee body, in the absence of the named individuals. Further to this the Charity's constitution permits such transactions. In taking this decision the Trustees believe they have acted in the best interests of the Charity and its beneficiaries.

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