Hartley Fowler LLP 4th Floor, Tuition House 27-37 St George's Road Wimbledon London SW19 4EU 12 July 2023 Dear Sirs We confirm that the following representations are made on the basis of enquiries of officers and staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the following representations to you in connection with your examination of the charity ’s Financial State ments for the year ended 30 September 2022. ## **1. General** We acknowledge as trustees our responsibility for the Financial Statements, which you have prepared for the charity. All the accounting records have been made available to you for the purpose of your examination and all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management and shareholders meetings, have been made available to you. ## **2. Compliance with GAAP** We confirm that, in determining how amounts are presented within items in the profit and loss account and balance sheet, we have had regard to the substance of the reported transaction or arrangement, in accordance with generally accepted accounting principles or practice. ## **3. Disclosure of Information** In so far as we are aware, there is no relevant information (information needed by you as the charity ’s independent examiners in connection with preparing your report) of which you are unaware. ## **4. Liabilities** The charity has no liabilities, contingent liabilities or financial commitments other than those disclosed in the Financial Statements. ## **5. Future Commitments** The charity has not contracted for, nor authorised any capital expenditure other than as disclosed in the Financial Statements. Page 1 Fresh Ground London Church of the Nazarene Registered charity number 1163653 ## **6. Laws and Regulations** We are not aware of any irregularities, including fraud, involving management or employees of the charity; nor are we aware of any breaches or possible breaches of statute, regulations, contracts, agreements or the charity ’s constitution which might prejudice the charity ’s going concern status or that might result in the charity suffering significant penalties or loss. No allegations of such irregularities, including fraud, or such breaches have come to our notice. ## **7. Transactions with Related Parties** All transactions with related parties have been disclosed in the Financial Statements. We have made available to you all relevant information concerning such transactions and are not aware of any other matters that require disclosure in order to comply with the requirements of the Charities Act 2011 or Accounting Standards. ## **8. Loans and Arrangements** The charity has not had nor entered into at any time during the year, any arrangement, transaction or agreement to provide credit facilities (including loans, quasi loans or credit facilities) for trustees nor to guarantee or provide security for such matters. ## **9. Post Balance Sheet Events** There have been no events since the Balance Sheet date which necessitate revision of the figures included in the financial statements or inclusion of a note thereto. Should further material events occur, which may necessitate revision of the figures included in the Financial Statements or inclusion of a note thereto, we will advise you accordingly. ## **10. Internal Controls** We acknowledge our responsibility for the design and implementation of internal controls to prevent and detect fraud. We confirm that we have disclosed to you the results of our own assessment of the risk of fraud in the business. We confirm that there have been no actual or suspected instances of fraud involving officers or employees who have a significant role in internal control or that could have a material effect on the financial statements. We also confirm that we are not aware of any allegations of fraud by former employees, regulators or others. ## **11. Going Concern** We confirm that we consider the charity to be a going concern and are not aware of any events which may necessitate revision of the basis of preparation of the Financial Statements or inclusion of a note thereto. ## **12. Unadjusted Errors** We confirm that all errors identified have been considered and discussed with yourselves and the financial statements amended as appropriate. Page 2 Fresh Ground London Church of the Nazarene Registered charity number 1163653 ## **13. Other matters** ## 13.1 Revenue Recognition We confirm that, in determining how revenue amounts are presented within the profit and loss account and balance sheet, we have had regard to the substance of the transaction and the charity ’s accounting policy. Turnover, work in progress, accrued and deferred income are correctly reflected in the financial statements. We have asked that Gift Aid receivables are dealt with on a received basis in order that the accounts are presented on a basis consistent with previous years. ## 13.2 Trustees’ Expenses We confirm that no expenses were reimbursed to trustees in connection with their role as trustees. Yours faithfully Rev. Jason Nike **Trustee on behalf of Fresh Ground London Church of the Nazarene** Page 3 Fresh Ground London Church of the Nazarene Registered charity number 1163653 **REGISTERED CHARITY NUMBER: 1163653** ## **REPORT OF THE TRUSTEES AND** **FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022** ## **FOR** ## **FRESHGROUND** Hartley Fowler LLP Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU **FRESHGROUND** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022** **----- Start of picture text -----**
Page
Report of the Trustees 1 to 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 10
Detailed Statement of Financial Activities 11
**----- End of picture text -----**
**FRESHGROUND** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022** The trustees present their report with the financial statements of the charity for the year ended 30 September 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** The charity has the following objectives: a) The advancement of the Christian faith as part of the Global Church of The Nazarene and the Church of the Nazarene British Isles South District. b) To serve and enhance the local community ## **Public benefit** The Trustees have had due regard to the Charity Commission guidance on public benefit reporting in deciding what activities the charity should undertake. This report illustrates the activities undertaken to support the public benefit requirement. ## **Volunteers** The work planned, activities undertaken and achievements attained would not have been possible without the active involvement and hard work of all of the members and friends of the charity without whom the substantial work of the charity could not be realised. The Board of Trustees is grateful for the work and support of all the members and friends of Fresh Ground London Church of The Nazarene. ## **ACHIEVEMENT AND PERFORMANCE Charitable activities** The church premises operated during the year as a coffee shop and as a space available to be used for local community activities in order to engage and provide support to the local community in addition to its primary purpose as a place for Christian worship. Review of the Year The aims for the year included: - Continuation of weekly Christian worship meetings and promotion of the Christian faith - Work with children and young people to promote the Christian faith and provide local social benefit. - Continuation of weekly meetings for the more mature individuals in the local area. - Continuing to develop links with the local community, to enhance the involvement of the church with and relevant local agencies on behalf of the local community. - Continue to partner with and make the church building available to relevant local agencies seeking to benefit the local communities ## Significant activities during the period include: - Weekly worship services. - Meetings held for children and young people for interaction and a safe environment to enable them to grow and develop both spiritually, socially and individually. - Weekly meetings for spiritual and personal development, growth and education. - Partnering with local Community programmes. - Organising a community fun day. - Involvement with the local schools. - Regular craft meetings promoting social interaction. - Provision of the building for community activities. - Visitation of both members and others in the local community in times of need or by request. - Availability for weddings and funerals and other services of significance ## Achievements during the period include: - Continued growth of the membership and attendance at the church and of their spiritual and personal development. - Continued development of the social and educational opportunities and interaction with the local community through and with organisations that we partner with. -1- **FRESHGROUND** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022** ## **FINANCIAL REVIEW** ## **Financial review** The charity has continued throughout the year to meet and tailor the expenditure it incurs to the income received through rent for use of the building and through the tithes, offerings and donations received. There is much more that the Board of Trustees would like to do and we continue to explore these and the use of possible grants that may be available to enable these plans to become a reality. ## **Reserves policy** The charity does not have a policy on reserves as the expenditure and work of the charity is reliant upon the ongoing support, tithes and offerings of the members and friends received at the weekly meetings. The Board of Trustees reviews on a monthly basis the anticipated income and expenditure for the next two to three months in order to ensure the ongoing work of the charity. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** The charity is constituted as a charitable incorporated organisation (CIO) and was registered with the Charity Comission on 18 September 2015 with registration number 1163653. ## **Charity constitution** The CIO is governed by an approved governing constituting document drawn up by Anthony Collins, Charity Solicitors, Birmingham and approved by the Charity Commission for England and Wales and HMR&C. The governing document is based on the Manual of the Global Church of The Nazarene where UK law permits. ## **Trustee appointments** The Pastor of the church is ex-officio chairperson of the Board of Charity Trustees and his/her position is reviewed after two years and then every four years after that. The remaining Trustees are appointed annually by the members of Fresh Ground London Church of The Nazarene at the annual general meeting held in February each year. ## **Governance and wider network** The Board of Trustees meets regularly, normally on a monthly basis to consider the work and management of the church and assess and plan the financial and other aspects of the work and direction of the charity. The church/CIO is a member of the Church of The Nazarene British Isles South District (a Charitable Company Limited by Guarantee, Company No 7028764; Charity No 1133336) which in turn is a member of The Global Church of The Nazarene which has its headquarters in Lenexa, USA. ## **Decision making and risk management** The risk management strategy of the church is in a continual process of formulation in response to the changing circumstances that could impact upon the work of the church. The Board of Trustees, in considering this important task, take direction from on-going discussions with members both internally and through meetings with the Church of The Nazarene British Isles South District and other advisers, adopting appropriate policies as required or as they become necessary to the ongoing work of the church. ## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 1163653 ## **Principal address** 68 Battersea Rise Battersea London SW11 1EQ -2- **FRESHGROUND** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2022** ## **Trustees** L Evanov (appointed 8/2/22) J Nike Chairperson L Nike A L Quinn (appointed 8/2/22) C C Triviaux-Frenet (appointed 8/2/22) M Sowerby Lynam (resigned 8/2/22) S J Lynam (resigned 8/2/22) L Durand Mosse (resigned 8/2/22) J Bennett (resigned 18/9/22) The Chairperson is ex officio by virtue of his office as Pastor of Fresh Ground London Church of The Nazarene and the NYI, NMI and Children’s Ministry representatives are also ex officio by virtue of their office within the Church. ## **Holding Trustee** Church of the Nazarene British Isles South District (A Charitable Company Limited by Guarantee: Company No 7028764) **Website:** www.freshgroundlondon.com **Bankers:** Nat West Bank plc ## **Independent Examiner** Hartley Fowler LLP Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU Approved by order of the board of trustees on 12 July 2023 and signed on its behalf by: J Nike - Trustee -3- **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FRESHGROUND** ## **Independent examiner's report to the trustees of Freshground** I report to the charity trustees on my examination of the accounts of Freshground (the Trust) for the year ended 30 September 2022. ## **Responsibilities and basis of report** As the charity trustees of the Trust 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 Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act. ## **Independent examiner's statement** Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a member of the **ERROR - relevant professional body must be completed**, which is one of the listed bodies. 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 Trust 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. Jonathan Askew FCA Hartley Fowler LLP Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU Date: ............................................. -4- **FRESHGROUND** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2022** |2022
Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and other income
2
17,722
**Charitable activities**
Church activities
-
Coffee shop
66,632
Church hall and other rental income
167,613
**Total**
251,967
**EXPENDITURE ON**
**Charitable activities**
3
Church activities
155,528
Coffee shop
27,026
Property costs and utilities
64,213
Church hall and other rental income
6,247
**Total**
253,014
**NET INCOME/(EXPENDITURE)**
(1,047)
**RECONCILIATION OF FUNDS**
Total funds brought forward
77,912
**TOTAL FUNDS CARRIED FORWARD**
76,865|2021
Total
funds
£
43,151
17,238
39,022
120,760
220,171
160,998
21,492
15,902
-
198,392
21,779
56,133
77,912| |---|---| The notes form part of these financial statements -5- **FRESHGROUND** ## **BALANCE SHEET 30 SEPTEMBER 2022** |2022
Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
6
7,595
**CURRENT ASSETS**
Debtors
7
36,944
Cash at bank and in hand
39,521
76,465
**CREDITORS**
Amounts falling due within one year
8
(7,195)
**NET CURRENT ASSETS**
69,270
**TOTAL ASSETS LESS CURRENT LIABILITIES**
76,865
**NET ASSETS**
76,865
**FUNDS**
9
Unrestricted funds
76,865
**TOTAL FUNDS**
76,865|2021
Total
funds
£
8,694
4,836
67,288
72,124
(2,906)
69,218
77,912
77,912
77,912
77,912| |---|---| The financial statements were approved by the Board of Trustees and authorised for issue on 12 July 2023 and were signed on its behalf by: J Nike - Trustee The notes form part of these financial statements -6- **FRESHGROUND** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. ## **Taxation** The charity is exempt from tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **2. DONATIONS AND OTHER INCOME** |Donations
Covid support grants
Grants received, included in the above, are as follows:
Covid Job Retention Scheme|2022
£
17,722
-
17,722
2022
£
-|2021
£
16,922
26,229
43,151
2021
£
26,229| |---|---|---| -7- **FRESHGROUND** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022** ## **3. CHARITABLE ACTIVITIES COSTS** |Church activities
Coffee shop
Property costs and utilities
Church hall and other rental income|Direct
Costs
£
155,528
27,026
64,213
6,247
253,014| |---|---| ## **4. TRUSTEES' REMUNERATION AND BENEFITS** Rev J Nike and Rev M Sowerby Lynam who are both trustees of the charity each received a salary in relation to their role as Pastor of£28,000 and £955 (2021 £25,720 and £18,857) respectively for the year. These payments are permitted under the constitution of the charity and were approved by the other trustees.. No trustees received expenses in the year in relation to their role as trustees. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 30 September 2022 nor for the year ended 30 September 2021. ## **5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** |**INCOME AND ENDOWMENTS FROM**
Donations and other income
**Charitable activities**
Church activities
Coffee shop
Church hall and other rental income|Unrestricted
fund
£
43,151
17,238
39,022
120,760| |---|---| |**Total**|220,171| |**EXPENDITURE ON**
**Charitable activities**
Church activities
Coffee shop
Property costs and utilities|160,998
21,492
15,902| |**Total**|198,392| |**NET INCOME**
**RECONCILIATION OF FUNDS**
Total funds brought forward|21,779
56,133| |**TOTAL FUNDS CARRIED FORWARD**|77,912| -8- **FRESHGROUND** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022** **----- Start of picture text -----**
6. TANGIBLE FIXED ASSETS
Plant and Computer
machinery equipment Totals
£ £ £
COST
At 1 October 2021 9,619 1,973 11,592
Additions 1,300 582 1,882
At 30 September 2022 10,919 2,555 13,474
DEPRECIATION
At 1 October 2021 2,405 493 2,898
Charge for year 2,427 554 2,981
At 30 September 2022 4,832 1,047 5,879
NET BOOK VALUE
At 30 September 2022 6,087 1,508 7,595
At 30 September 2021 7,214 1,480 8,694
7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£ £
Rents receivable 35,444 1,739
Other debtors 1,500 500
VAT recoverable - 2,597
36,944 4,836
8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£ £
-
Taxation and social security 2,112
Other creditors 5,083 2,906
7,195 2,906
9. MOVEMENT IN FUNDS
Net
At movement At
1/10/21 in funds 30/9/22
£ £ £
Unrestricted funds
General fund 77,912 (1,047) 76,865
TOTAL FUNDS 77,912 (1,047) 76,865
**----- End of picture text -----**
-9- **FRESHGROUND** **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30 SEPTEMBER 2022** ## **9. MOVEMENT IN FUNDS - continued** Net movement in funds, included in the above are as follows: |**Unrestricted funds**
General fund|Incoming
resources
£
251,967|Resources
expended
£
(253,014)|Movement
in funds
£
(1,047)| |---|---|---|---| |**TOTAL FUNDS**|251,967|(253,014)|(1,047)| |**Comparatives for movement in funds**
**Unrestricted funds**
General fund|At
1/10/20
£
56,133|Net
movement
in funds
£
21,779|At
30/9/21
£
77,912| |**TOTAL FUNDS**|56,133|21,779|77,912| |Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
220,171||Resources
expended
£
(198,392)|Movement
in funds
£
21,779| |**TOTAL FUNDS**|220,171|(198,392)|21,779| ## **10. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 30 September 2022. -10- **FRESHGROUND** ## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2022** |**INCOME AND ENDOWMENTS**
**Donations and other income**
Donations
Covid support grants
**Charitable activities**
Coffee shop income
Income from other activities
Income from use of hall and other rental income
**Total incoming resources**
**EXPENDITURE**
**Charitable activities**
Coffee shop costs
Church activities and costs
Property maintenance and utilities
Depreciatin - fittings and equipment
Depreciation of computers and related assets
Grants to institutions
Total resources expended
**Net (expenditure)/income**|2022
£
17,722
-
17,722
66,632
360
167,253
234,245
251,967
29,780
156,040
64,213
2,427
554
-
253,014
253,014
(1,047)|2021
£
16,922
26,229
43,151
39,022
17,238
120,760
177,020
220,171
21,492
151,085
18,797
2,405
493
4,120
198,392
198,392
21,779| |---|---|---| This page does not form part of the statutory financial statements -11-