ARC GLOBAL CHURCHES TRUSTEES REPORT AND FINANCIAL STATEMENT YEAR 2022
CIO Number: 1165652
CONTENTS
ORGANISATION DETAILS
TRUSTEES AND ELDERS STATEMENT
AIMS AND PURPOSE
OBJECTIVES
ACHIEVEMENTS
CHURCH PLANTING
PUBLIC BENEFIT
ARC GLOBAL CHURCHES & ACTIVITIES
FUTURE PLANS
2
ORGANISATION DETAILS
Charity Name
The ARC
Charity (CIO) Registration No. 1165652
Registered Address
ARC Church, 66A Sebert Road London E7 0NJ
Telephone: 0208 555 4245 Email: info@arc4u.org.uk
Bankers
NatWest Bank PLC HSBC Stratford Broadway Stratford Ground Floor Gredley House 59-61 The Mall 1 – 11 Broadway London E15 1XF London E15 4BQ
Independent Examiner
JG & Associates Marco Polo House 3 – 5 Lansdown Road Croydon Surrey CR0 2BX
Accountants
Smith and Johnson Limited Unit 24 Highcroft Industrial Estate Enterprise Road Horndean, Waterlooville Hampshire P08 0BT
Board of Trustees
Mrs Samantha Miranda Trustee Mr Peter Nembhard Trustee Mr Davis Kunihira Trustee Mr Colin Glen Trustee Mr Marvin Johnson Trustee Natasha Osaro-Osaghae Secretary
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TRUSTEES AND ELDERS’ STATEMENT
Acts 14:23 (ESV) ‘And when they had appointed elders for them in every church, with prayer and fasting they committed them to the Lord in whom they had believed.’
Acts 6:3-4 (ESV) “Therefore, brothers, pick out from among you seven men of good repute, full of the Spirit and of wisdom, whom we will appoint to this duty. But we will devote ourselves to prayer and to the ministry of the word.”
In 2022, ARC Global dedicated its efforts to fortifying our leadership, recognising the significant impact leadership has on our church. To prioritise leadership development, we initiated monthly meetings for lead elders, fostering both social interaction and equipping sessions to enhance their effectiveness as leaders. These meetings also served as a platform for reviewing the strengths and needs of our churches, allowing us to implement necessary measures of support.
As our membership witnessed substantial growth throughout the year, we actively sought out potential elders and deacons from within our churches to provide additional support. To prepare these individuals for their roles, we organised dedicated training sessions for our current elders, deacons, and those with potential to assume such positions.
We encouraged members to visit other ARC Churches to foster unity and support among our churches. One congregation exemplified this culture by sending over 20 members to support and fellowship with another congregation for an entire weekend. Additionally, we encouraged lead elders from various congregations to preach in different settings, further strengthening our interconnection.
During this time, the structure of ARC Global was gradually taking shape, prompting discussions on how to evolve as our churches continued to grow. As a result, the concept of Directing Elders emerged, individuals tasked with overseeing the spiritual affairs of the church. As we progressed, ARC Global underwent restructuring and rebranding, preparing for an official launch in 2023. Our church now comprises ARC Churches and partnering churches, with a clearly defined vision, mission, and set of values. We have also developed a website and app to support our upcoming launch.
Traditionally, ARC Global has held its New Year's crossover service in a single location. However, owing to our remarkable growth, it became impractical to accommodate everyone in one place. In response, this year's crossover service was conducted in various locations, turning out to be a tremendous success and drawing a substantial number of people from the community.
Looking ahead to 2023, we eagerly anticipate the official launch of ARC Global. Our theme for the year is "Better Together," and our vision is to plant and build healthy churches.
Trustees & Elders ARC Global Churches
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AIMS AND PURPOSE
ARC held its first service in 1997 with four people. It is now home to more than 1000 members across 9 locations. The founding members set out to make ARC a relevant, radical and real church in the heart of East London, positively impacting the lives of the people within the community. A relevant church is a practical church that purposefully and intentionally adds value to the lives of everyone with which it comes into contact.
The ARC Global Mission
REACHING NON-BELIEVERS
TEACHING BELIEVERS
Following Jesus’ ascension, He commanded His disciples to go into all the world and proclaim the gospel to the whole creation (Mark 16:15).
After Jesus commanded his disciples to preach the gospel, He assigned them the responsibility of making disciples by imparting His teachings to believers (Matthew 28:20).
Additionally, Jesus promised that the Holy Spirit would empower them to bear witness both locally and globally (Acts 1:8). To reach the lost, our congregations send outreach teams to partner with churches to support in reaching their communities. It is not necessary to travel by plane to accomplish missions, as we emphasise the importance of local and global outreach.
Our church community fosters discipleship through various avenues such as corporate gatherings, life groups, bible studies and ARC Bible School.
Additionally, we are committed to raising leaders who exemplify the way of life and teachings of the Elders (1 Corinthians 4:17 and 2 Timothy 3:10).
RAISING LEADERS
The book of Acts provides a blueprint for the church, and we firmly believe that the health of a church is primarily dependent on the devotion of its members.
We use Acts 2:42-47 as a fundamental reference to assess the well-being of a church.
To cultivate a healthy church, it is crucial for us to continually be in the process of raising up Elders and Deacons who work as a cohesive team to govern and lead the church (1 Timothy 3:1-13, Titus 1:5-16, Acts 6:1-7).
SENDING LEADERS
Establishing a healthy church entails the emergence of godly leaders, which should prompt us to become a sending church. As part of our vision, we believe that church planting is the most effective means of reaching local communities (Ephesians 3:1011). As a best practice, we aim to plant an Elder/Eldership couple with a team of diverse leaders and emerging leaders possessing various gifts to aid in the building of the church plant.
Our members can join our outreach teams and dedicate short or long-term periods to support new church plants or assist existing churches in need.
5
OBJECTIVES
The objectives of the charity have remained the same as in previous years.
| To advance the Christian faith in accordance with our statement of beliefs. |
To advance education in accordance with Christian principles. |
To promote and fulfil other charitable purposes beneficial to the community. |
|---|---|---|
These objectives outline our purpose and goals as a charity. They are embodied in the specific activities that we undertake each year.
ACHIEVEMENTS Across ARC Global branches
----- Start of picture text -----
Baby
Baptisms
26 Dedications 120
Weddings Funerals
21 17
----- End of picture text -----
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CHURCH PLANTING
ARC Edmonton Established October 2022
In 2022, ARC Global Churches planted its first church in the North London area. ARC Edmonton launched in Edmonton Green on 15 October 2022. The need for a church plant in North London was important due to several congregation members living in North London.
ARC Edmonton had a rocky start after its launch to find a new premises. It is currently located in Upper Edmonton, in a community building on a local estate. The move to Upper Edmonton has brought many challenges for the church being in a deprived area of Enfield.
The church has been focused on reaching this community at their point of need, partnering with local organisations to address social issues. It is beginning to have a presence within the local community to reach the community for Christ. Having several new converts in its first three months of 2022 has been rewarding and confirmed the need for a church in North London.
7
PUBLIC BENEFIT
The Trustees confirm that we have complied with our duty in section 17 of the Charities Act 2011 to have regard to the Charity Commissions general guidance on public benefit.
1 Progress on church building in Uganda.
ARC Global benefits the community it serves through its activities.
ARC Forest Gate supported local business "Strong Mamas" Fitness Fox providing a safe, clean and inviting space for their mother and baby weekly exercise activities.
An excellent opportunity was offered to locals be part of the Gate Community Choir, a vibrant local gospel choir, providing a platform for community members to showcase their musical talents with the broader neighbourhood having performed in local Elderly Care homes, bringing joy to residents and raising morale amongst staff.
A clothing drive was organized to support missions to Uganda, collecting donations of clothing and other essentials. The community's generosity helped make a positive impact in Uganda by providing clothing and support to vulnerable individuals and families.
Humanitarian missions to Cuba primarily focused on gathering essential medical supplies for communities in Cuba, improving access to healthcare and working to alleviate medical shortages in the region.
The Spark2Life Mentoring Programme was initiated and ran with a dedicated effort to provide guidance and support for troubled teenagers in the local community. Through mentoring and counselling, the program aimed to empower teens to overcome challenges and make positive life choices.
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ARC Forest Gate actively engaged with the Newham Faith in School initiative, offering event hosting and facilitation services for various faith-based activities. The church hosted workshops and shared insights into our faith, fostering mutual understanding and appreciation among diverse religious communities. They also conducted building tours to create a welcoming environment for individuals interested in exploring the churches facilities and learning more about its mission.
Overall, ARC Forest Gate proudly served the local community and conducted missions in various areas, ranging from fitness and music to charity drives and mentoring programs, all aimed at fostering community growth and well-being.
ARC Sydenham held regular food banks every other month and regularly provided food to local care/homeless centres such as St Christopher's Hostel.
ARC Thurrock consistently held youth sessions with their team holding social events. They partnered with Thurrock food bank to donate, reached out to their local hospital and hospice to provide vital resources in thanks for their faithful service to the community.
ARC 2.0 engaged the community each week through street evangelism, held church in the streets and built communication with local council and schools to create new initiatives. They also held an outreach for the homeless, for the Christmas period and a food outreach.
Several of our branches provided or partnered with food banks to serve the local community.
Various initiatives are held regularly within ARC Global including children’s ministry, youth activities, discipleship training, Bible School and pastoral care, designed to grow and develop members, to serve the community and further the work of the ministry.
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ARC GLOBAL CHURCHES & ACTIVITIES
ARC Global churches activities reflect Christ in all that we do. These activities help those in need, mentoring and guiding young people in our communities and caring for the elderly. The work of the church is facilitated through prayer, worship and teaching the gospel which is led by our team of lead elders across the branches with their teams.
ARC 2.0 ARC Birmingham ARC Edmonton ARC Forest Gate ARC Freedom Life Cork ARC Life Dagenham ARC Sydenham ARC Thurrock ARC Walthamstow ARC Woodford
Lead Elder Omar Tackie Lead Elder Ricky Otto Lead Elder Colin Glen Lead Elder Peter Nembhard Lead Elder James Thornhill-Fisher Lead Elder Gary Jarrett Lead Elder Davis Kunihira Lead Elder Ashley Gabriel Lead Elder Herbie Thomas Lead Elder Colin Salmon
*Until July 2022, ARC Global and ARC Life Dagenham, parted company and they are no longer an ARC church. In December 2022, ARC Cork became an independent church now named Freedom Life Cork.
ACTIVITIES
ARC Bible School Pastoral Care Youth Mentoring Goons for God (Evangelism) Cedars Elderly Day Care Bible Teaching and Discipleship Men’s Ministry Women’s Ministry Life Groups Food Bank Missions Church Planting
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FUTURE PLANS
In 2023, we will be launching ARC Global and developing our relationships with partner churches such as Christ the Rock Uganda, Mountain Movers and This Generation Ministries.
Having planted a few churches and ceased our partnership with Four 12 in 2022, we aim to develop and launch ARC Global which will serve as the headquarters and represent the centralisation of our organisation. ARC Global will consist of what we will call planted churches and partnering churches.
The Planted churches will carry our name, charity number, financial and administrative structure whilst the Partnering churches will have their own name, financial and administrative structure. ARC Global will exist to equip and resource these planted and partnering churches. The ARC Global fourfold mission is reaching non-believers, teaching believers, raising leaders, and sending disciples.
In 2023, we will be developing and launching a website and app to house all resources held within ARC Global.
We will be organising equip days and gatherings.
During the year, we plan to organise several equip days and global gatherings. We are hoping to plan a leaders equip day and a worship equip day in 2023 as we believe it is important for all of our churches to come together. With this in mind, we have coined the theme ‘Better Together’ which will take us through the year when we meet in our large gatherings.
We will be restructuring our staff and volunteer base.
In the next 12 months, ARC Global will be looking to develop and build our staff base. We have identified a few key areas where we will need to strengthen this within some of our local congregations and across the global team in general.
Whilst we see it is important to have full and part time staff, we also see the need to build our volunteer base. The ARC has hundreds of volunteers across our branches so throughout 2023 we will look to train and develop our existing volunteers, bring on new ones.
We are looking forward to an exciting year, reaching and fulfilling our goals.
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A RADICAL CHURCH ‘THE ARC’
Annual Accounts
31 December 2022
Charity Incorporated Organisation (CIO) Registered Number: 1165652
A RADICAL CHARCH (ARC) ANNUAL REPORT YEAR ENDED 31 DECEMBER 2022 CHARITY DETAILS
CHARITY NUMBER 1165652 STATUS Charity Incorporated Organisation (CIO) GOVERNING DOCUMENTS TRUST DEED as of 1[st] September 1997 ARC Constitution as of 19[th] February 2016 TRUSTEES Mr Peter Nembhard Mr Colin Glen Mrs Yeukai Samantha Miranda Mr Davis Kunihira Mr Marvin Johnson
Mr Richard Bobb-Semple served as a Trustee and resigned 14[th] September 2021 Ms Michelle Kusi-Darko served as a Trustee and resigned 29[th] April 2022
PRINCIPLE OFFICE 66a Sebert Road Forest Gate London E7 0NJ Telephone: 020 8555 4245 Email: info@arc4u.org.uk www.arc4u.org.uk BANKER NATWEST BANK PLC Stratford Broadway Ground Floor, Gredley House 1 – 11 Broadway E15 4BQ EXAMINERS JG & ASSOCIATES Marco Polo House 3-5 Lansdowne Road Croydon Surrey CR0 2BX
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 2
© ARC, 2022. All rights reserved.
A RADICAL CHARCH (ARC) ANNUAL REPORT TRUSTEES’ REVIEW YEAR ENDED 31 DECEMBER 2022
FINANCIAL REVIEW
For the year ended 31[st] December 2022, there was an improvement in the finances compared to last year despite the pandemic.
PRINCIPLE
The sources of funding are collections and donations.
RESERVES POLICY
The Trustees have considered the level of reserves they wish to retain appropriate to the charity’s needs and are satisfied that the present reserves are adequate based on the charity’s size and the level of commitments held.
RISK REVIEW
The charity trustees have given consideration to the major risks to which the charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks.
The ARC is a growing organisation and continues to maintain a healthy net current asset level. Any financial risks identified during 2022 were acted on, to continue to minimise risks as the organisation grows. With eight staff members by the end of the reporting period, there are health and safety and employment law policies in place. The risks posed by staff are being mitigated through modern management systems and practices, regular systems tests and checks including fire drills and alarms. As a matter of general policy, independent professional advice is taken regularly whenever appropriate.
INVESTMENT POLICY
The trustees have considered the most appropriate policy for investing. Due to the surplus from prior years, they have been able to invest in property, which will bring in residual income.
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, the trustees are required to:
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a) Select suitable accounting policies and apply them consistently;
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b) Make judgements and estimates that are reasonable and prudent;
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c) State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements;
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d) Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 3
© ARC, 2022. All rights reserved.
A RADICAL CHARCH (ARC) ANNUAL REPORT TRUSTEES’ REVIEW YEAR ENDED 31 DECEMBER 2022
The trustees are responsible for keeping accounting records which 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 1993. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
APPROVAL
This report was approved by the trustees on 16[th] October 2023 and signed on their behalf.
Mr Peter Nembhard – Chair
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 4
© ARC, 2022. All rights reserved.
A RADICAL CHARCH (ARC) ANNUAL REPORT EXAMINERS REPORT YEAR ENDED 31 DECEMBER 2022
Independent Examiners report to the trustees of A Radical Church (The ARC)
I report on the accounts of the Trust for the period ended 31[st] December 2022 which are set out on pages 6 to 15.
Responsibility of Examiner
The trustees of the charity are responsible for the preparation of the accounts. The Charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 act) and that an independent examination is needed. It is my responsibility to:
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examine the accounts under section 145 of the 2011 Act;
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to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
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state whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the company and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the accounts.
Since the Company’s gross income exceeds £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. We confirm that the examiner is qualified to undertake the examination because they are a member of the Association of Accounting Technicians in England and Wales which is one of the listed bodies.
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 which gives me cause to believe that in, any material respect:
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Which gives me reasonable cause to believe that in any material respect the trustees have not met the requirements to ensure that:
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a. the accounting records were not kept in accordance with section 130 of the Charities Act; and
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b. accounts are prepared which agree with the accounting records and comply with the accounting requirements of the 2011 Act have not been met or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Signed …………………………………………………….……….… Date: 16[th] October 2023
Mr TJ Smith, ICAEW & Miss Joanna Goodridge MICB
© ARC, 2022. All rights reserved.
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 5
A RADICAL CHARCH (ARC) ANNUAL REPORT INCOME AND EXPENDITURE YEAR ENDED 31 DECEMBER 2022
STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2022
| Unrestricted | Unrestricted | Unrestricted | Restricted | Restricted | £ | £ | ||
|---|---|---|---|---|---|---|---|---|
| INCOMING RESOURCES | Notes | Funds | Funds | 2022 | 2021 | |||
| Donations | 1.2 | 891,632.00 | 20,716.00 | 912,348.00 | 771,578.00 | |||
| Charitable Activities | 1.2 | 18,069.00 | (13,585.00) | 4,484.00 | 27,578.00 | |||
| Other Trading Activities | 1.2 | 22,095.00 | - | 22,095.00 | 4,933.00 | |||
| Investment Income | 1.3 | - | - | 52,200.00 | ||||
| Other Income | 1.3 | 55,200.00 | - | 55,200.00 | 5,943.00 | |||
| Total £ | 986,996.00 | 7,131.00 | 994,127.00 | 740,626.00 | ||||
| RESOURCES EXPENDED | ||||||||
| Raising Fund | 3.1 | 149,215.00 | - | 149,215.00 | 124,218.00 | |||
| Charity Activities | 3.2 | 768,306.00 | - | 768,306.00 | 524,694.00 | |||
| Other | 3.3 | 1,668.00 | - | 1,668.00 | 65.00 | |||
| Total £ | 919,189.00 | - | 919,189.00 | 648,977.00 | ||||
| Net gains (losses) on investments | - | - | - | - | ||||
| Net income/(expenditure) £ | 67,807.00 | 7,131.00 | 74,938.00 | 213,255.00 | ||||
| Transfer between reserves £ | - | - | - | - | ||||
| Total funds brought forward £ | 1,135,379.00 | 77,628.00 | 1,213,007.00 | 999,752.00 | ||||
| Total funds carried forward £ | 1,203,186.00 | 84,759.00 | 1,287,945.00 | 1,213,007.00 |
The notes form part of these financial statements.
Statement of total recognised gains and losses.
The Charity does not have any gains and losses other than the income and Expenditure for the period to report.
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 6
© ARC, 2022. All rights reserved.
A RADICAL CHARCH (ARC) ANNUAL REPORT
BALANCE SHEET YEAR ENDED 31 DECEMBER 2022
| Notes | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|
| £ | £ | £ | ||||
| ASSETS | ||||||
| Tangible assets | 1.8 | 2,471,089.00 | 2,367,553.00 | |||
| Total Fixed Assets £ | 2,471,089.00 | 2,367,553.00 | ||||
| CURRENT ASSETS | ||||||
| Debtors | 4.1 | 57,310.00 | 87,992.00 | |||
| Cash at bank and in hand | 4.2 | 505,826.00 | 467,352.00 | |||
| Total current assets £ | 563,136.00 | 555,344.00 | ||||
| Creditors: amounts falling due | ||||||
| w ithin one year | 4.3 | (90,808.00) | (29,005.00) | |||
| Net current assets £ | 472,328.00 | 526,340.00 | ||||
| Total assets less current liabilities £ | 2,943,417.00 | 2,893,893.00 | ||||
| Creditors: amounts falling due after | ||||||
| than one year | 5 | (614,774.00) | (652,912.00) | |||
| Net assets | 2,328,643.00 | 2,240,981.00 | ||||
| Funds of the charity | ||||||
| Funds brought forw ard 1st January | 1,198,659.00 | 1,123,722.00 | ||||
| Restricted funds | 117,080.00 | 34,230.00 | ||||
| Unrestricted funds | 108,900.00 | 179,025.00 | ||||
| Rev aluation Reserv e | 904,004.00 | 904,004.00 | ||||
| Total funds as at 31st Decem ber £ | 2,328,643.00 | 2,240,981.00 | ||||
These financial statements were approved and signed by the trustees on the 16[th] October 2023:
Mr Peter Nembhard
Mr Davis Kunihira
© ARC, 2022. All rights reserved.
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 7
A RADICAL CHARCH (ARC) ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022
ACCOUNTING POLICIES
The principal accounting policies adopted, judgements, and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
1.1 Basis of accounting
The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "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)" (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest£.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and the receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT, and other sales-related taxes.
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 8
© ARC, 2022. All rights reserved.
A RADICAL CHARCH (ARC) ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022
1.3 Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs, and are subsequently arrived at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
1.4 Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.5 Fund Accounting
Funds held by the charity are:
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Restricted - these are funds that can only be used in accordance with the charitable specific purpose.
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Unrestricted (general funds) - these are funds that can be used in accordance with the charitable objects at the discretion of the trustees.
1.6 Taxation
The charity has taken advantage of the various reliefs from taxation available to charities and no tax is payable on the charity’s income.
1.7 Going concern .
The Trustees consider that the (Name of the Charity) has sufficient resources to continue operating for at least 12 months following the date of approval of these accounts and accordingly these accounts are prepared on a going concern basis.
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 9
© ARC, 2022. All rights reserved.
A RADICAL CHARCH (ARC) ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022
1.8 Depreciation Tangible Assets
Individual fixed assets costing £1,000 or more are capitalised at cost. Depreciation is provided at the following annual rates on assets in order to write off their cost less any residual value over their estimated useful life. The rates of depreciation are as follow:
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Freehold & Buildings …. …. …. 20% reducing balance
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• Fixtures & Fittings …. …. …. 20% Straight line • Equipment …. …. …. 20% Straight line
| 2022 | 2022 | 2021 | ||||||
|---|---|---|---|---|---|---|---|---|
| Freehold & Buildings |
Fixture & Fittings |
Equipm ent | Total | |||||
| Cost | £ | £ | £ | £ | £ | |||
| Cost at 1 January | 2,317,394.00 | 109,240.00 | 142,815.71 | 2,569,450.00 | 2,537,571.00 | |||
| Additions | 140,862.00 | - | 3,423.98 | 144,286.00 | 31,879.00 | |||
| Revaluation | - | - | - | - | ||||
| Total at 31 December | 2,458,255.70 | 109,240.00 | 146,239.69 | 2,713,735.81 | 2,569,450.00 | |||
| Depreciation | ||||||||
| Total charged at 1 January | - | 97,739.00 | 104,158.00 | 201,897.00 | 172,284.00 | |||
| Charge for the year | - | 11,501.00 | 29,248.00 | 40,749.00 | 29,614.00 | |||
| On disposals | - | - | - | |||||
| At 31 December | - | 97,739.00 | 104,159.00 | 242,647.00 | 201,898.00 | |||
| Net book values | ||||||||
| For the year ended 31 December | 2,458,256.00 | - | 12,833.59 | 2,471,089.00 | 2,367,553.00 | |||
1.9 Trustees' remuneration and employee/volunteer costs
| Trusteeship | Trusteeship | 2022 | 2021 | |||
|---|---|---|---|---|---|---|
| No. of paid Trustees | 1 | 1 | ||||
| Trustees’ Renumeration | 2022 | 2021 | ||||
| £ | £ | |||||
| Trustee Employees total salary | 76,378.48 | 47,319.00 | ||||
| 76,378.48 | 47,319.00 | |||||
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The employer’s pension costs represent contributions payable by the charity to the fund.
ref : | Annual Report 2022 | page: 10
© ARC, 2022. All rights reserved.
Registered Charity Number: 1165652
A RADICAL CHARCH (ARC) ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022
| Staffing | 2022 | 2021 | |
|---|---|---|---|
| £ | £ | ||
| Wages & Salaries | 380,983.00 | 269,733.00 | |
| Volunteer Costs | 110.00 | 12.00 | |
| Social securitycosts | 39,004.00 | 11,534.00 | |
| Pensions | 5,299.00 | 3,326.00 | |
| Staff travel | 18,352.00 | 1,371.00 | |
| Training | 7,575.00 | 1,308.00 | |
| Other costs | 2,234.00 | 3,866.00 | |
| Total £ | 453,557.00 | 291,151.00 | |
| No. of staff(exc. Employed Trustees) | 13 | 13 | |
ARC had up to 350 volunteers throughout ARC during 2022.
2. INCOMING RESOURCES
2.1 Donations
| 2.1 Donations | |||||||
|---|---|---|---|---|---|---|---|
| Unresticted | Restricted | 2022 | 2021 | ||||
| £ | £ | £ | £ | ||||
| Congregationalgiv ing | 101,763.00 | 101,763.00 | 695,027.00 | ||||
| Married for Life | - | 230.00 | 230.00 | 80.00 | |||
| Cedars | - | - | - | 142.00 | |||
| Harc | - | - | - | 400.00 | |||
| Gift Aid | (54,860.00) | - | (54,860.00) | 68,748.00 | |||
| Direct Transfer Giv ing | 793,135.00 | - | 793,135.00 | 5,537.00 | |||
| In Person Givingincome | 51,594.00 | - | 51,594.00 | 1,490.00 | |||
| OXMAC fund income | - | 20,485.51 | 20,485.51 | 395.00 | |||
| Helpfor the homless fund | - | - | - | (240.00) | |||
| 891,632.00 | 20,715.51 | 912,347.51 | 771,579.00 |
2.2 Charitable Activities
| 2.2 Charitable Activities | |||||||
|---|---|---|---|---|---|---|---|
| unrestricted | restricted | 2022 | 2021 | ||||
| £ | £ | £ | £ | ||||
| Tuckshop | 520.00 | - | 520.00 | - | |||
| Event I ncome | 15,999.00 | - | 15,999.00 | 3,600.00 | |||
| Bible College | - | (13,585.00) | (13,585.00) | 23,565.00 | |||
| Welfare Grant | 690.00 | - | 690.00 | - | |||
| Equipment Hire | 860.00 | - | 860.00 | 413.00 | |||
| 18,069.00 | (13,585.00) | 4,484.00 | 27,578.00 |
© ARC, 2022. All rights reserved.
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 11
A RADICAL CHARCH (ARC) ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022
2.3 Other Trading Activities
| unrestricted | restricted | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|---|
| £ | £ | £ | £ | ||||
| Hall Hire | 20,795.00 | - | 20,795.00 | 4,733.00 | |||
| Baptismal pool rental income | 1,300.00 | - | 1,300.00 | 200.00 | |||
| 22,095.00 | - | 22,095.00 | 4,933.00 |
2.4 Investment income
Investment income consists of interest received from saving and deposit accounts at the bank.
| unrestricted | retricted | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|---|
| £ | £ | £ | £ | ||||
| Blossoms NurseryIncome | - | - | - | 19,200.00 | |||
| 66 Serbert Road | - | - | - | 33,000.00 | |||
| Bank Interest | - | - | - | - | |||
| Minibus Hire Income | - | - | - | - | |||
| - | - | - | 52,200.00 |
2.5 Other Income
| 2.5 Other Income | |||||||
|---|---|---|---|---|---|---|---|
| Unresticted | Restricted | 2022 | 2021 | ||||
| £ | £ | £ | £ | ||||
| Other Giving | 55,200.00 | - | 55,200.00 | 5,943.00 | |||
| 55,200.00 | - | 55,200.00 | 5,943.00 |
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 12
© ARC, 2022. All rights reserved.
A RADICAL CHARCH (ARC) ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022
3. RESOURCES EXPENDED
Resources expended are included in the Statement of Financial Activities on an accrual basis, inclusive of any VAT that cannot be recovered.
3.1 Raising Funds
| Unresticted | Restricted | 2022 | 2021 | ||
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Ministry Expenses | 34,834.92 | 34,834.92 | 17,329.00 | ||
| Married for Life |
709.83 | 709.83 | 2,336.00 | ||
| Cedars | 700.00 | 700.00 | 630.00 | ||
| Youth | 931.96 | 931.96 | 338.00 | ||
| Missions | 22,198.64 | 22,198.64 | 31,665.00 | ||
| Pastoral Hospitality | 35,842.19 | 35,842.19 | 34,147.00 | ||
| Event Costs |
53,997.00 | 53,997.00 | 37,775.00 | ||
| 149,214.54 | 149,214.54 | 124,218.00 |
3.2 Charity Activities
| 3.2 Charity Activities | ||||||
|---|---|---|---|---|---|---|
| Unresticted £ |
Restricted £ |
2022 £ |
2021 £ |
|||
| Staff Costs | 453,557.68 | 453,557.68 | 291,151.00 | |||
| Building Costs | 49,082.51 | 49,082.51 | 80,201.00 | |||
| Service Running Costs |
139,317.23 | 139,317.23 | 36,871.00 | |||
| Administrative Costs |
42,029.88 | 42,029.88 | 61,044.00 | |||
| Accountancy Fees | 33,200.00 | 33,200.00 | 5,000.00 | |||
| Independent Examiner |
- | - | 2,500.00 | |||
| Professional Fees |
7,828.00 | 7,828.00 | 20,300.00 | |||
| Van Costs | 2,541.59 | 2,541.59 | 1,014.00 | |||
| Depreciation | 40,749.30 | 40,749.30 | 26,613.00 | |||
| 768,306.19 | 768,306.19 | 522,194.00 | ||||
3.3 Other Costs
| Unresticted | Restricted | 2022 | 2021 | ||
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Bank Fees and Charges | - | - | 65.00 | ||
| Penalties & Fines |
- | - | - | - | |
| Bible School-Teaching fee | 120.00 | - | 120.00 | - | |
Donation to charities |
839.56 | - | 839.56 | - | |
| Counselling for members | 707.95 | - | 707.95 | - | |
| 1,667.51 | - | 1,667.51 | 65.00 |
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 13
© ARC, 2022. All rights reserved.
A RADICAL CHARCH (ARC) ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022
4. NET CURRENT ASSETS
4.1 Debtors
| 2022 | 2021 | ||
|---|---|---|---|
| £ | £ | ||
| Accounts Receivable | 34,045.07 | 17,175.00 | |
| Gift aid due | 68,079.00 | ||
| Staff Loans | - | ||
| Member Loans | 640.00 | 700.00 | |
| Natwest Bank | - | ||
| Prepayments | 21,000.51 | 316.00 | |
| SundryDebtors | 456.00 | ||
| Stripe holdingaccount | 1,624.71 | 1,309.00 | |
| 57,310.29 | 88,035.00 | ||
4.2 Cash and Cash equivalent
Cash and cash equivalent includes cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
| 2022 | 2021 | ||
| £ | £ | ||
| Banks operatingaccounts | 505,826.05 | 467,310.00 | |
| Total £ | 505,826.05 |
467,310.00 |
4.3 Creditors: amounts falling due within one year
| 4.3 Creditors: amounts falling due within one year | |||
|---|---|---|---|
| 2022 | 2021 | ||
| £ | £ | ||
| Creditors | 9,257.39 | 4,501.00 | |
| Social Security (HMRC) | 31,317.14 | 268.00 | |
| Pension | 243.00 | ||
| Deferred Income | 13,730.00 | ||
| Other creditors | 50,233.11 | 10,263.00 | |
| Total £ | 90,807.64 | 29,005.00 |
5 CREDITORS: amounts falling due more than one year
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Mortgage | 614,774.34 | 652,912.00 |
| Total £ | 614,774.34 | 652,912.00 |
© ARC, 2022. All rights reserved. Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 14
A RADICAL CHARCH (ARC) ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022
6. RELATED PARTY TRANSACTIONS
The charity was under the control of the Trustee throughout the current year.
One or more of the trustees have been paid remuneration or have received other benefits from the charity an employment.
The total employment remuneration for trustees and related parties: 2022 - £92,252
2021 - £90,492
Trustees Employer Pension contributions total: £4,325.44 in 2022 and £1952 in 2021.
One or more of the trustees have claimed expenses or had their expenses met by the charity. These expenses were for reimbursement for the purchase of equipment, totalling £1,799.
No trustee received income or expenses over £60,000.
© ARC, 2022. All rights reserved.
Registered Charity Number: 1165652 ref : | Annual Report 2022 | page: 15