OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-08-31-accounts

OLIVET ASSEMBLY

TRUSTEES’ REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

Registered Company No: 09571506 Registered Charity No: 1163688

OLIVET ASSEMBLY

YEAR ENDED 31 AUGUST 2023

CONTENTS Page
Reference and administrative information 1
Trustees’ report 2 – 4
Independent Auditor’s Report 5 - 7
Consolidated Statement of financial activities 8
Group and Charity Balance sheets 9
Statement of Cash Flows 10
Notes to the financial statements 11 - 19

OLIVET ASSEMBLY (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE INFORMATION

FOR THE YEAR ENDED 31 AUGUST 2023

Trustees and Directors Youngho Bae (resigned 27 June 2023)
Jaewon Kim
Sung Hee Kim (appointed 27 June 2023)
Myong Sop Shim
Manager Dr Andrew Clark
Charity Registration Number 1163688
Company Registration Number 09571506
Principal Address and Registered Office Pilgrim Hall
Lewes Road
Uckfield
East Sussex
TN22 5RE
Bankers Natwest
London Bridge
P O Box 35
10 Southwark Street
London
SE1 1TJ
Independent Auditor Haines Watts High Wycombe Limited
Oakingham House
Frederick Place
High Wycombe
Buckinghamshire
HP11 1JU

1

OLIVET ASSEMBLY (A company limited by guarantee)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 AUGUST 2023

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

These financial statements consolidate the financial statements of Olivet Assembly and its wholly owned subsidiary – Global London College.

Olivet Assembly is a private charitable company limited by guarantee. It was registered with Companies House on 1 May 2015 and the Charity Commission on 22 September 2015. The directors of the charitable company are its Trustees for the purpose of charity law. None of the Trustees has any beneficial interest in the company.

Objectives and Activities

The charity's objects ('objects') are specifically restricted to the following:

  1. For the public benefit. The advancement of religion according to the doctrines of the worldwide Olivet Assembly church;

  2. For the public benefit. The pursuit of any purpose charitable according to the law of England and Wales which is consistent with the advancement of religion of Olivet Assembly.

Our purposes

Our main objectives for the year were:

Our activities for achieving the charity’s aims and objectives were:

Achievements and Performance

The charity has had a successful year with increasing popularity for its London-based outreach programs. Pilgrim Hall hosted various gatherings throughout the year, and in particular held large retreats at Christmas, Easter, and Pentecost. During Christmas 2022, Pilgrim Hall hosted more than 100 Christian ministers, missionaries, and delegates for a large conference where various speakers gave inspirational and educational addresses, and numerous workshop activities and meetings took place. Early in 2023, the charity’s representatives joined a delegation of Christian leaders in touring OA’s sister organisations across Europe, which allowed the charity to promote its works, foster relationships with potential supporters and sponsors, and to share and learn from others’ experiences. The charity has agreed to host a ‘Europe Bible Camp’ at Pilgrim Hall over Christmas 2023, which will see many missionaries and attendees come from across Europe, as well as cities across the UK. Developments have taken place in the charity’s online outreach, with small teams utilising various social media and online platforms to connect with those interested in the charity’s courses and activities. Online broadcasts of services and educational lectures take place throughout the week.

During the year, various refurbishment projects have taken place at the charity’s property at Pilgrim Hall. Examples of some of the works include more windows being replaced and modernised, guttering in various areas being fixed, some bathrooms have been refurbished, the pool was re-tiled in large parts and re-grouted. These works improve the health and safety of Pilgrim Hall in general, and enhances the comfort of guests staying at Pilgrim Hall

2

OLIVET ASSEMBLY (A company limited by guarantee)

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2023

Financial Review

Consolidated income for the year was £995,145 (2022: £823,712). Charity income was £828,092 (2022: £685,854) and arose principally from church offerings and donations and income for the trading subsidiary was £167,053 (2022: £137,858), generated mainly from the tuition of English to foreign students. Consolidated expenditure was £1,029,908 (2022: £896,180), with £919,925 relating to the charity’s activities and £109,983 (2022: £113,368) relating to the activities of the subsidiary.

Investment powers and policy

The trustees have the powers to make investments on behalf of the charity as they deem fit. At the moment, the charity’s risk profile indicates that investments should be held in low-risk assets. Consequently, investments at the Balance Sheet date are in bank account balances.

Reserves policy

Unrestricted funds at the year-end were £1,481,472 (2022: £1,503,353). The Pilgrim Hall Fund was the only restricted fund at the year end and had a balance of £695,632 (2022: £708,514).

Free reserves at the end of the year (the charity’s unrestricted funds less any net capital costs not covered by restricted funds) was a surplus of £196,347 (2022: £190,768). The target level of free reserves of at least 3 months of expenditure is equivalent to £175k-200k, which is achieved by the free reserves held.

Risk Management

The trustees have identified the key risks faced by the charity and have taken appropriate steps to mitigate these risks. The key risks relate to the charity’s ability to generate and sustain its funding to meet its various activities and obligations. Trustees ensure that the charity has a low fixed cost base relative to its recurring income so that it can align its costs with any changes in income.

This issue is regularly revisited by the trustees to ensure that any new risks are identified and suitably addressed.

Policies and Procedures have been put into place at the charity’s premises, to ensure adherence to government guidelines and statutory regulations. The charity also holds adequate cash reserves and has sufficient flexibility to align its expenditure with available resources.

Plans for Future Periods

Over the coming year, the charity plans to expand outreach beyond London to various cities across the U.K. There are plans to develop theological and biblical course offerings.

Structure, Governance and Management

The charitable company is governed by its Memorandum and Articles of Association dated 1 May 2015. The Trustees during the year are as listed under the reference and administrative information.

The Trustees are recruited according to their knowledge, skill and experience of the themes and activities undertaken by the charity; and in accordance with the requirements for the governance of charities.

The Trustees are kept informed on charity sector issues by resources provided by financial and legal advisors. The day to day running of the charity is delegated to Dr Andrew Clark who acts as Manager.

3

OLIVET ASSEMBLY (A company limited by guarantee)

TRUSTEES’ REPORT (continued)

FOR THE YEAR ENDED 31 AUGUST 2023

Structure, Governance and Management (continued)

Related Parties

World Olivet Assembly located in USA supports the activities of the charity and at times assists with funds to help cover capital and some of the operational costs. Whilst both organisations share a common purpose, they operate independently of each other.

Subsidiary undertaking

In 2020, the charity acquired 100% of the share capital of Global London College Ltd (Company Number: 07366665) at a cost of £719,212. This is shown as an investment in subsidiary undertaking in the charity’s balance sheet. Further information and the results of the subsidiary and included in the Accounting Policies and in Note 7, of these financial statements.

Statement of Trustees' Responsibilities

The trustees (who are also directors of Olivet Assembly for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable for that year. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Board of Trustees is aware:

Received and approved by the Board on 23 May 2024 and signed as authorised on their behalf by:

……………………………………….

Jaewon Kim Director/Trustee

4

OLIVET ASSEMBLY

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF OLIVET ASSEMBLY

OPINION

We have audited the financial statements of OLIVET ASSEMBLY (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 August 2023 which comprise the group Consolidated Statement of Financial Activities, the group Consolidated Balance Sheet, the company Balance Sheet, the group Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland.

In our opinion the financial statements:

BASIS FOR OPINION

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

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

OTHER INFORMATION

The other information comprises the information included in the annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

5

OLIVET ASSEMBLY

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF OLIVET ASSEMBLY (CONTINUED)

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

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

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

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as Auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

EXPLANATION AS TO THE EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

During the audit we identify and assess the risk of material misstatements of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud and error; and to respond appropriately to those risks.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

6

OLIVET ASSEMBLY

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF OLIVET ASSEMBLY (CONTINUED)

We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included:

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusions. There is always the unavoidable risk that material misstatements in the financial statements may not be detected despite the audit being properly performed in accordance with UK Auditing standards.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

USE OF OUR REPORT

This report is made solely to the charity’s Trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Gary A Heywood (Senior Statutory Auditor) For and on behalf of Haines Watts High Wycombe Limited

28 ……….May 2024

Chartered Accountants Statutory Auditor

Oakingham House Frederick Place High Wycombe Buckinghamshire United Kingdom HP11 1JU

7

OLIVET ASSEMBLY (A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2023

GROUP INCOME AND EXPENDITURE Unrestricted Restricted Total Total
funds funds 31 August 31 August
2023 2022
Notes £ £ £ £
Income and endowments from:
Donations and legacies 2 828,092 - 828,092 685,854
Other trading activities 8 166,699 - 166,699 137,858
Interest receivable 354 354 -
----------------- ----------------- ----------------- -----------------
Total Income 995,145 - 995,145 823,712
------------------- ----------------- ----------------- -----------------
Expenditure on: 3
Raising funds:
Trading subsidiary 8 109,983 - 109,983 113,368
Charitable activities 907,043 12,882 919,925 782,812
------------------ ------------------ ------------------ ------------------
Total Expenditure 1,017,026 12,882 1,029,908 896,180
-------------------- -------------------- -------------------- --------------------
Net movement in funds (21,881) (12,882) (34,763) (72,468)
Total funds brought forward 1,503,353 708,514 2,211,867 2,284,335
--------------------- --------------------- --------------------- ---------------------
Total funds carried forward 1,481,472 695,632 2,177,104 2,211,867
=========== =========== =========== ===========

The comparative Statement of Financial Activities for the year ended 31 August 2022 is included in Note 18.

All recognised gains and losses are included in the Statement of Financial Activities.

All the charity’s activities are classified as continuing.

The accompanying notes form an integral part of these financial statements.

8

OLIVET ASSEMBLY Company number: 09571506

(A company limited by guarantee)

GROUP AND CHARITY BALANCE SHEETS

AS AT 31 AUGUST 2023

Group Group Charity Charity
2023 2022 2023 2022
Notes £ £ £ £
Fixed Assets
Intangible Assets 7 487,745 560,907 - -
Tangible Assets 6 2,520,594 2,543,545 2,519,239 2,541,851
Investments 8 - - 719,212 719,212
--------------------- --------------------- --------------------- ---------------------
3,008,339 3,104,452 3,238,451 3,261,063
Current Assets
Debtors 9 60,567 61,054 64,048 66,012
Cash at bank and in hand 263,727 229,730 191,769 181,444
------------------ ------------------ ------------------ ------------------
324,294 290,784 255,817 247,456
Current liabilities
Creditors:amounts falling due
within one year 10 (258,634) (184,902) (166,257) (126,116)
------------------ ------------------ ------------------ ------------------
Net Current Assets 65,660 105,882 89,560 121,340
------------------ ------------------- ------------------- -------------------
3,073,999 3,210,334 3,328,011 3,382,403
Creditors:amounts falling due
After more than one year 11 (896,895) (998,467) (896,895) (998,467)
--------------------- --------------------- --------------------- ---------------------
Total Net Assets 2,177,104 2,211,867 2,431,116 2,383,936
=========== =========== =========== ===========
Funds:
Restricted funds 13 695,632 708,514 695,632 708,514
Unrestricted funds 13 1,481,472 1,503,353 1,735,484 1,675,422
--------------------- --------------------- --------------------- ---------------------
TOTAL FUNDS 2,177,104 2,211,867 2,431,116 2,383,936
=========== =========== =========== ===========

!"# $%&'&(%') +'+#,#&+ -#.#'//.01#2 34 +"# 30'.2 '&2 '5+"0.%#2 $0. %5# 0& 67 8'4 696: '&2 %; 0& %+* 3#"')$ 34<

……………………………….

Jaewon Kim Director/Trustee

The accompanying notes form an integral part of these financial statements.

9

OLIVET ASSEMBLY (A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2023

31 August 31 August
2023 2022
£ £
Cash provided by operating activities 89,768 52,096
------------------- -------------------
Cash flows from investing activities
Purchase of tangible fixed assets - (5,800)
---------------------- ----------------------
Cash used in investing activities - (5,800)
Cash flows from financing activities
Repayment of borrowing (55,771) (54,378)
---------------------- ----------------------
Cash used in financing activities (55,771) (54,378)
---------------------- ----------------------
Increase/(decrease) in cash and cash equivalents in the year 33,997 (8,082)
Cash and cash equivalents at the beginning of the year 229,730 237,812
------------------ ------------------
Total cash and cash equivalents at year end 263,727 229,730
========== ==========
Analysis of Cash and Cash Equivalents 2023 2022
£ £
Cash at bank and in hand 263,727 229,730
========= ==========
Analysis of changes in net funds At 1 September Cash Other non-cash At 31 August
2022 flows changes 2023
£ £ £ £
Cash 229,730 33,997 - 263,727
========== ========== ========== ==========
Reconciliation of net movement in funds to net cash inflow from Operating Activities
2023 2022
£ £
Net movement in funds (34,763) (72,468)
Add back depreciation 22,951 23,034
Add back amortisation of goodwill 73,162 73,162
Decrease/(increase) in debtors 578 (24,362)
Increase in creditors 27,840 52,730
-------------------- --------------------
Net cash provided by/(used in) operating activities 89,768 52,096
========== ==========

10

OLIVET ASSEMBLY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES

1.1. Basis of accounting

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition effective 1 January 2019)' Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Charities Act 2011 and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

1.2. Going Concern

The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Integral to this assessment is the ongoing support of World Olivet Assembly, a related charity. World Olivet Assembly have confirmed that they will continue to support the charity for a period of at least 12 months from the date of these financial statements being signed.

1.3. Trading subsidiary and consolidated accounts

On 5 May 2020, the charity acquired in cash, 100% of the share capital of a company, Global London College (incorporated in the England and Wales; Company number 07366665).

The accounts of the subsidiary have been consolidated in these financial statements on a line-by-line basis. The activities of the company are disclosed in Note 8 of these financial statements.

1.4. Critical accounting estimates and areas of judgment

In the application of the accounting policies, Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that period and future periods. The significant areas of assumption are in respect of depreciation of fixed assets and valuation of the investment in the subsidiary.

The rates of write down are shown in the Tangible Fixed Assets note below. The Trustees are satisfied that these write down rates are a reasonable reflection of the expected useful life of the assets in each class.

An impairment review will be carried out annually on the valuation of the charity’s investment in its subsidiary – Global London College Ltd. The company was acquired on 5 May 2020 and the Trustees consider that there are no indications of any material impairment in the value of the investment at the end of the year.

1.5. Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Restricted funds are subjected to restrictions on their expenditure imposed by the donor. The purposes and uses of the restricted funds are set out in the notes to the accounts.

1.6. Financial instruments

The Charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value and subsequently measured at their settlement value.

11

OLIVET ASSEMBLY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2023

1. ACCOUNTING POLICIES (continued)

1.7. Income

All income is included in the Statement of Financial Activities when the charity is legally entitled to the income, there is probability of receipt and the amount can be quantified with reasonable accuracy, except as follows:

No amounts are included in the financial statements for services donated by volunteers.

Income from investments is included in the Statement of Financial Activities in the period in which it is received.

1.8. Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates. Support costs which cannot be directly attributed to particular projects are apportioned in proportion to the direct staff cost allocated to the project. Governance costs, which form part of Support costs include expenditure on the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Charitable expenditure consists of all expenditure relating to the objects of the Charity. All costs are directly attributable to the activities under which they have been analysed.

1.9. Tangible fixed assets

Expenditure on fixed assets is capitalised where the cost (or the value if donated) is in excess of £1,000; otherwise it is written off through the Statement of Financial Activities. Depreciation is calculated by the straight line method to write off the cost/value, less anticipated residual value, over the expected useful lives of assets as follows:

Land and buildings 50 years Furniture and equipment 25% Plant and Machinery 20% on reducing balance basis

1.10. Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

1.11. Operating leases

Rentals under operating leases are charged on a straight line basis over the lease term.

1.12. Goodwill

Goodwill arising on a business combination represents the difference between the cost of acquisition and the Charity’s consolidated interest in the fair value of the identifiable assets and liabilities of a subsidiary as at the date of acquisition.

Goodwill is recognised as an asset and is amortised over 10 years. A review for impairment is done at least annually and any impairment is recognised immediately in the Statement of Financial Activities and is not subsequently reversed.

12

OLIVET ASSEMBLY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2023

2. DONATIONS AND LEGACIES
2023 2022
£ £
Tithes and offerings 795,360 664,060
Donations from World Olivet Assembly (USA) 32,732 9,903
Government furlough grant - 11,891
----------------- -----------------
828,092 685,854
========== ==========

The donations from World Olivet Assembly were applied by the trustees towards the operational costs. All funds are unrestricted.

3. EXPENDITURE People Premises Other
Governance		 Other
Governance		 2023 2022
support costs costs
£ £ £ £ £ £
Raising funds:
Costs of trading subsidiary 55,740 17,020 30,973 6,250 109,983 113,368
Charitable activities:
Church services and activities 178,847 245,200 - - 424,047
350,998
Support of missions and other
Christian Ministries		 51,099 75,446 - - 126,545
104,606
Education - 18,861 662 - 19,523 16,439
Support costs 25,550 37,723 279,337 7,200 349,810
310,769
----------------- ----------------- ----------------- ---------------- -----------------
-----------------
Total Charitable activities 255,496 377,230 279,999 7,200 919,925
782,812
----------------- ----------------- ----------------- ---------------- -----------------
-----------------
========= ========= ========= ========= ===========
=========
TOTAL EXPENDITURE 311,236 394,250 310,972 13,450 1,029,908
896,180
========= ========= ========= ========= ===========
=========
Included in People Support are staff costs of £311,236 (2022: 293,189) - see Note 4.
COMPARATIVE EXPENDITURE People Premises Other Governance 2022
support costs costs
£ £ £ £ £
Raising funds:
Costs of trading subsidiary 72,654 18,241
18,373		 4,100
113,368
Charitable activities:
Church services and activities 154,375 196,623
-		 -
350,998
Support of missions and other
Christian Ministries		 44,107 60,499
-		 -
104,606
Education - 15,125
1,314		 -
16,439
Support costs 22,053 30,250
252,106		 6,360
310,769
----------------- -----------------
-----------------		 ----------------
-----------------
Total 220,535 302,497
253,420		 6,360
782,812
----------------- -----------------
-----------------		 ----------------
-----------------
========= =========
=========		 =========
=========
Total 293,189 320,738
271,793		 10,460
896,180
========= =========
=========		 =========
=========

13

OLIVET ASSEMBLY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2023

3. EXPENDITURE (Continued)

Net income is stated after charging:
Independent Auditor’s fees (included in Governance costs) 15,300 12,360
Depreciation 22,951 23,034
Amortisation 73,162 73,162
Operating leases (Office premises) 170,500 170,756
======== =======
4. STAFF COSTS
2023 2022 2023 2022
£ £ £ £
Wages and salaries 289,238 271,643 238,110 205,973
Social security costs 20,336 19,315 15,724 13,215
Pensions 1,662 2,231 1,662 1,347
---------------- ---------------- ---------------- ----------------
311,236 293,189 255,496 220,535
========= ======== ========= ========

4. STAFF COSTS

No employee received remuneration over £60,000 (2022: none). The average monthly headcount was 11 (2022: 11). The key management staff is the Manager whose total employee benefits was £36,871 (2022: £31,982).

5. TRUSTEES

None of the trustees (or any persons connected with them) received any reimbursement of expenses, remuneration or benefits from the charity during the year (2022: nil).

6.

TANGIBLE FIXED ASSETS Charity - Charity - Subsidiary -
Land & Furniture & Total Plant & Total
Buildings Equipment Charity Machinery Group
£ £ £ £ £
Valuation:
At 1 September 2022 2,576,059 38,922 2,614,981 16,213 2,631,194
Additions - - - - -
------------------- ------------------- -------------------- ------------------- --------------------
At 31 August 2023 2,576,059 38,922 2,614,981 16,213 2,631,194
------------------- ------------------- ------------------- ------------------- -------------------
Depreciation:
At 1 September 2022 54,744 18,386 73,130 14,519 87,649
Charge for the year 12,882 9,730 22,612 339 22,951
---------------- ---------------- ---------------- ---------------- ----------------
At 31 August 2023 67,626 28,116 95,742 14,858 110,600
---------------- ---------------- ---------------- ---------------- ----------------
Net Book Value
At 31 August 2023 2,508,433 10,806 2,519,239 1,355 2,520,594
----------------- ----------------- ------------------ ----------------- ------------------
At 31 August 2022 2,521,315 20,536 2,541,851 1,694 2,543,545
========== ========= ========== ========= ==========

Land and buildings represent costs incurred for the purchase of the church’s premises and facilities (Pilgrim Hall).

14

OLIVET ASSEMBLY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2023

7. INTANGIBLE FIXED ASSET - GOODWILL

INTANGIBLE FIXED ASSET - GOODWILL
Goodwill
£
Valuation:
At 1 September 2022 731,618
Additions -
-------------------
At 31 August 2023 731,618
-------------------
Amortisation:
At 1 September 2022 170,711
Charge for the year 73,162
----------------
At 31 August 2023 243,873
----------------
Net Book Value
At 31 August 2023 487,745
-----------------
At 31 August 2022 560,907
==========

Goodwill above relates to the cost of acquiring the charity’s wholly owned subsidiary, Global London College (see Note 8).

8. INVESTMENT IN SUBSIDIARY UNDERTAKING

On 5 May 2020, the charity acquired 100% of the share capital of Global London College Ltd (incorporated in England and Wales; Company number 07366665) for a total of £719,212. The company’s principal activities are providing English language courses and business and strategic management qualifications. All taxable profits generated by the company are expected to be paid to the charity under the Gift Aid Scheme.

A summary of the Profit & Loss Account and Balance Sheet from the audited financial statements for the year to 31 August 2023 is given below:

1 August 2023 is given below:
2023 2022
£ £
Income 166,699 139,614
Expenditure (175,834) (142,220)
Bank interest 354 -
--------------- ---------------
Net (Loss)/profit (8,781) (2,606)
======== ========
Assets and liabilities:
Assets 74,641 51,835
Liabilities (97,186) (65,599)
--------------- ---------------
Total net (liabilities) (22,545) (13,764)
======== ========
Represented by:
Share capital 10 10
Profit and loss account (22,555) (13,774)
--------------- ---------------
(22,545) (13,764)
======== ========

15

OLIVET ASSEMBLY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2023

9. DEBTORS Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Other debtors 60,567 61,054 59,239 59,199
Amounts owed by subsidiary undertaking - - 4,809 6,813
-------------- -------------- -------------- --------------
60,567 61,054 64,048 66,012
======== ======== ======== ========
10. CREDITORS: amounts falling due Group Charity
Within one year 2023 2022 2023 2022
£ £ £ £
Bank loan (see Note 11) 130,687 84,886 130,687 84,886
Other creditors and accruals 127,947 100,016 35,570 41,230
---------------- ---------------- ---------------- ----------------
258,634 184,902 166,257 126,116
========= ======== ========= ========
11. CREDITORS: amounts falling due 2023 2022
After more than one year £ £
Bank loan 896,895 998,467
============
============

The above includes amounts due in 2 – 5 years of £522,749 and amounts due after more than 5 years of £374,146.

The secured bank loan of £1,250,000 was taken in November 2018. The loan bears an interest rate of 2.49% above Bank of England base rates and is repayable in 20 years. The balance outstanding at 31 August 2023 was £1,027,582 (2022: £1,083,353).

12. ANALYSIS OF MOVEMENT IN FUNDS

Balance Balance
1 September Income Expenditure Transfers 31 August
2022 2023
£ £ £ £
Restricted funds:
Pilgrim Hall Fund 708,514 - (12,882) - 695,632
---------------- ---------------- ---------------- ---------------- ----------------
Total Restricted Funds 708,514 - (12,882) - 695,632
Unrestricted funds:
General Fund 1,503,353 995,145 (1,017,026) - 1,481,472
------------------- ------------------- ------------------- ---------------- -------------------
Total unrestricted funds 1,503,353 995,145 (1,017,026) - 1,481,472
------------------- ------------------- ------------------- ---------------- -------------------
------------------- ------------------- ------------------- ---------------- -------------------
Total Funds - Group 2,211,867 995,145 (1,029,908) - 2,177,104
========== ========== ========== ======== ==========

Pilgrim Hall Fund represents amounts donated to the charity towards the purchase of a property – Pilgrim Hall. The depreciation charge on the property for the year has been allocated to this fund.

16

OLIVET ASSEMBLY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2023

12. ANALYSIS OF MOVEMENT IN FUNDS (continued) MOVEMENT IN FUNDS (continued)
2022 Comparatives Balance Balance
1 September Income Expenditure Transfers 31 August
2021 2022
£ £ £ £
Restricted funds:
Pilgrim Hall Fund 721,395 - (12,881) - 708,514
---------------- ---------------- ---------------- ---------------- ----------------
Total restricted funds 721,395 - (12,881) - 708,514
Unrestricted funds:
General Fund 1,562,940 823,712 (883,299) - 1,503,353
------------------- ------------------- ----------------- ---------------- -------------------
Total unrestricted funds
1,562,940		 823,712 (883,299) - 1,503,353
------------------- ------------------- ----------------- ---------------- -------------------
------------------- ------------------- ----------------- ---------------- -------------------
Total Funds - Group 2,284,335 823,712 (896,180) - 2,211,867
========== ========== ========= ======== ==========
13. ALLOCATION OF NET ASSETS BETWEEN FUNDS
Unrestricted Restricted 2023 2022
£ £ £ £
Intangible fixed assets 487,745 - 487,745 560,907
Tangible fixed assets 1,824,962 695,632 2,520,594 2,543,545
Current assets 324,294 - 324,294 290,784
Current liabilities (258,634) - (258,634) (184,902)
Long term liabilities (896,895) - (896,895) (998,467)
------------------- ----------------- ------------------- -------------------
1,481,472 695,632 2,177,104 2,211,867
========== ========= ========== ==========
2022 Comparatives
Unrestricted Restricted 2022
£ £ £
Intangible fixed assets 560,907 - 560,907
Tangible fixed assets 1,835,031 708,514 2,543,545
Current assets 290,784 - 290,784
Current liabilities (184,902) - (184,902)
Long term liabilities (998,467) - (998,467)
------------------- ----------------- -------------------
1,503,353 708,514 2,211,867
========== ========= ==========

17

OLIVET ASSEMBLY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2023

14. OPERATING LEASE COMMITMENTS

At the year end, the charity had the following minimum future operating lease commitments:

2023 2022
£ £
Leases which expire: Premises Premises
Within one year 90,936 90,936
Within two to five years 363,744 363,744
Over five years 90,936 181,872
---------------- ----------------
545,616 636,552
======== ========

15. SHARE CAPITAL AND CONTROL

The charity is a company limited by guarantee. In the event of the charity being wound up, the liability in respect of each member is limited to £10. The charity is controlled by the board of trustees.

16. RELATED PARTIES

World Olivet Assembly (WOA) located in USA is a related charity and it supports activities of the UK charity by making donations to fund capital and some operational costs. The total donations received from WOA in the year was £32,732 (2022: £9,903). There were no other transactions with WOA during the year.

17. PENSIONS AND OTHER POST-RETIREMENT BENEFIT COMMITMENTS

The group and charity operate defined contribution pension schemes. The assets of the schemes are held separately from those of the group and charity in an independently administered fund. The pension costs charge represents contributions payable by the charity to the fund and amounted to £1,662 (2022: £2,231). There were no contributions payable at the year-end (2022: £nil).

18

OLIVET ASSEMBLY (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2023

18. COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (2022)

GROUP INCOME AND EXPENDITURE Unrestricted Restricted Total
funds funds 31 August 2022
£ £ £
Income and endowments from:
Donations and legacies 685,854 - 685,854
Other trading activities – income from trading 137,858 - 137,858
subsidiary
----------------- ----------------- -----------------
Total Income 823,712 - 823,712
------------------- ----------------- -----------------
Expenditure on:
Raising funds:
Trading subsidiary 113,368 - 113,368
Charitable activities 769,931 12,881 782,812
------------------ ------------------ ------------------
Total Expenditure 883,299 12,881 896,180
-------------------- -------------------- --------------------
Net movement in funds (59,587) (12,881) (72,468)
Total funds brought forward 1,562,940 721,395 2,284,335
--------------------- --------------------- ---------------------
Total funds carried forward 1,503,353 708,514 2,211,867
=========== =========== ===========

19