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2021-12-31-accounts

Charity number: 1172998

HOUSE OF PRAISE TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

HOUSE OF PRAISE TRUST

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 7
Independent auditors' report on the financial statements 8 - 11
Consolidated statement of financial activities 12
Consolidated balance sheet 13
Charity balance sheet 14
Consolidated statement of cash flows 15
Notes to the financial statements 16 - 39

HOUSE OF PRAISE TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees Babatunde Sofowora
Olukayode Olawode
David Makoyawo
Solomon Adegoke
Olakunle Falodun
Charity registered
number
1172998
Principal office
254-270 Camberwell Road
Corner of Medlar Street
London
SE5 0DP
Chief executive officer
Pastor Olayemi Adeleke
Independent auditors
Stephen Michael Associates
Chartered Certified Accountants
Statutory Auditors
201 Borough High Street
London
SE1 1JA
Bankers
Barclays Bank plc
P O Box 279
41 Woolwich New Road
London
SE18 6NU
Solicitors
Fisher Jones Greenwood
Charter Court
Colchester Business Park
Colchester
Essex
CO4 9YA

Page 1

HOUSE OF PRAISE TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report together with the audited financial statements of the charity for the year 1 January 2021 to 31 December 2021.

The Trustees confirm that the report and financial statements of the Charity have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's Trust Deed, the Charities Act 2011 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 (FRS102) (effective 1 January 2019).

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the charity's trust deed and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

a. Policies and objectives

The objects of the Charity are:

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)' and in particular its supplementary public guidance on the advancement of religion for the public benefit.

b. Strategies for achieving objectives

The church has adopted the following strategies for achieving the above objectives:

c. Activities undertaken to achieve objectives

d. Volunteers

The charity is grateful for the unstinting efforts of its volunteers who are involved in service provision. It is estimated that over 10,000 volunteer hours were provided during the year. If this is conservatively valued at £8.50 an hour the volunteer effort amounts to over £85,000. The charity has a volunteer coordinator to ensure that best value is derived from the sterling efforts of our volunteers.

Page 2

HOUSE OF PRAISE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Objectives and activities (continued)

e. Main activities undertaken to further the Charity's purposes for the public benefit

House of Praise is a church that strives to fulfil the great commission as instructed by Jesus Christ to go into the world with his good news and reach out and touch lives of those in need of help. The church is open to the public for all services and all the events we organize are open to the public. All our events are free and flyers are printed and handed out to the members of the public to create awareness.

Strategic report

Achievements and performance

a. Key performance indicators

Our key performance indicators are summarised in the table below:

Outcome Target Outcome
Target
2021 2020
Average number of congregation 1,720 1,850 1501 1850
Average number of volunteers 242 250 230 250
Community awareness of food bank 659 visited 558 visited

Page 3

HOUSE OF PRAISE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Strategic report (continued)

Achievements and performance (continued)

b. Review of activities

Amongst all the various activities the church is involved in, the outreach/community department of the church frequently visit care homes, hospices and hospitals to give gifts, donations, and spend time with people that need companionship as well as attending to the needy in the community.

Below is a brief summary outlining a selection of the different activities the church members and leaders have actively participated in:

c. Investment policy and performance

The trustees have decided that at present, funds should be retained in Banks and Building Societies. Any change in such banking arrangements should be agreed by the trustees. As far as possible, funds will be retained in interest bearing accounts.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Page 4

HOUSE OF PRAISE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

b. Reserves policy

The trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets ('the free reserves') held by the church should be 3 months of annual expenditure. At this level, the trustees feel that they would be able to continue the current activities of the church in the event of a significant drop in funding.

The charity's free reserve is £NIL (2020 - £NIL) and the trustees recognise that the current level of free reserve does not reach the above target and are considering ways in which additional unrestricted funds will be raised.

c. Financial risk management objectives and policies

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems are in place to mitigate our exposure to the major risks.

d. Principal funding

This is provided mainly through voluntary tithes and offerings by the church members and through gift aid scheme. Pledges are also taken for specific projects.

Structure, governance and management

a. Constitution

House of Praise Trust is a registered charity, number 1172998, and is constituted under a Trust deed.

b. Methods of appointment or election of Trustees

The management of the Group and the Charity is the responsibility of the Trustees who are elected and coopted under the terms of the Trust deed.

c. Organisational structure and decision-making policies

The church is organised so that the trustees meet regularly to manage its affairs. An Executive Pastor manages the day to day administration of the church.

d. Policies adopted for the induction and training of Trustees

The induction process for any newly appointed member of the Trustees comprises an initial meeting with the Chair and other Trustees, followed by a series of short meetings with the Minister in Charge on the powers and responsibilities of the Trustees.

Page 5

HOUSE OF PRAISE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Structure, governance and management (continued)

e. Pay policy for key management personnel

The trustees consider that trustees and the two senior pastors comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Trust on a day to day basis. All trustees give of their time freely in their capacity as trustees. No trustee received remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in note 13 and 29 to the accounts.

The pay of the charity’s senior staff is reviewed annually and normally increased to account for inflation based on the latest Consumer Price Index. The remuneration is also bench marked with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

f. Connected charities

House of Praise Trust CIO is a member of the Redeemed Christian Church of God (RCCG) which has parishes all over the world. The relationship is governed by an 'Agreement for Common Purposes' between the parishes and RCCG.

Plans for future periods

The church continues to explore various ways of spreading the gospel of Christ in an effective manner. The Charity is also looking to grow in membership and continue to develop its members to make life changing impact in society.

Page 6

HOUSE OF PRAISE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. 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 Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Auditors

The auditors, Stephen Michael Associates, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Olakunle Falodun

Date: 19 December 2022

Page 7

HOUSE OF PRAISE TRUST

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF HOUSE OF PRAISE TRUST

Opinion

We have audited the financial statements of House of Praise Trust (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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 Auditors' 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 Group's or the parent 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.

Page 8

HOUSE OF PRAISE TRUST

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF HOUSE OF PRAISE TRUST (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' 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, except to the extent otherwise explicitly stated in our report, 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.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

Page 9

HOUSE OF PRAISE TRUST

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF HOUSE OF PRAISE TRUST (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 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 Auditors' 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:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 10

HOUSE OF PRAISE TRUST

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF HOUSE OF PRAISE TRUST (CONTINUED)

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 Auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Michael Associates

Chartered Certified Accountants Statutory Auditors 201 Borough High Street

London SE1 1JA

22 December 2022

Stephen Michael Associates are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 11

HOUSE OF PRAISE TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities:
5
Subsidiary
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds:
Subsidiary
Charitable activities
9
Total expenditure
Net expenditure before taxation
Taxation
14
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2021
£
88,916
-
-
-
-
88,916
-
113,292
113,292
(24,376)
-
(24,376)
108,036
(24,376)
83,660		 Unrestricted
funds
2021
£
896,709
-
125,975
30,604
-
1,053,288
82,449
1,018,625
1,101,074
(47,786)
-
(47,786)
5,862,475
(47,786)
5,814,689		 Total
funds
2021
£
985,625
-
125,975
30,604
-
1,142,204
82,449
1,131,917
1,214,366
(72,162)
-
(72,162)
5,970,511
(72,162)
5,898,349		 Total
funds
2020
£
892,856
914
15,150
37,146
729
946,795
19,968
1,096,732
1,116,700
(169,905)
1,305
(168,600)
6,139,111
(168,600)
5,970,511

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 16 to 39 form part of these financial statements.

Page 12

HOUSE OF PRAISE TRUST

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
15
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
21
Unrestricted funds
21
Total funds		 61,659
116,299
177,958
(268,497)		 2021
£
6,523,625
6,523,625
(90,539)
6,433,086
(534,737)
5,898,349
5,898,349
83,660
5,814,689
5,898,349		 93,043
98,259
191,302
(215,738)		 2020
£
6,686,766
6,686,766
(24,436)
6,662,330
(691,819)
5,970,511
5,970,511
108,036
5,862,475
5,970,511

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Olakunle Falodun

Date: 19 December 2022

The notes on pages 16 to 39 form part of these financial statements.

Page 13

HOUSE OF PRAISE TRUST

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
15
Investments
16
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
21
Unrestricted funds
21
Total funds		 61,412
93,535
154,947
(378,311)		 2021
£
6,523,625
3
6,523,628
(223,364)
6,300,264
(500,570)
5,799,694
5,799,694
83,660
5,716,034
5,799,694		 92,366
78,049
170,415
(294,150)		 2020
£
6,686,766
3
6,686,769
(123,735)
6,563,034
(647,652)
5,915,382
5,915,382
108,036
5,807,346
5,915,382

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Olakunle Falodun

Date: 19 December 2022

The notes on pages 16 to 39 form part of these financial statements.

Page 14

HOUSE OF PRAISE TRUST

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
77,157
30,704
10,000
(5,140)
35,564
-
(94,681)
(94,681)
18,040
98,259
116,299		 2020
£
(3,165)
40,034
-
(139,560)
(99,526)
50,000
(35,620)
14,380
(88,311)
186,570
98,259

The notes on pages 16 to 39 form part of these financial statements

Page 15

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. General information

House of Praise Trust is a charitable incorporated organisation registered with the Charity Commission in England & Wales. The office address is 254 - 270 Camberwell Road, Corner of Medlar Street, London SE5 0DP.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

House of Praise Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

2.2 Going concern

The consolidated financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the cashflow forecast and the projected income and expenditure for 12 months from authorising these financial statements. The level of free reserves and funds held is sufficient for the charity to be able to continue as a going concern.

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 16

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 17

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Freehold property - 2% straight-line method Motor vehicles - 25% reducing balance basis Fixtures and fittings - 12% straight-line method Computer equipment - 33% straight-line method

2.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

Page 18

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Accounting policies (continued)

2.13 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.14 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

2.15 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 19

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

3. Income from donations and legacies

Donations
Church collections
Gift aid income tax recoverable
Subtotal detailed disclosure
Government grants
Subtotal		 Restricted
funds
2021
£
17,208
-
17,208
71,708
71,708
88,916		 Unrestricted
funds
2021
£
816,063
80,646
896,709
-
-
896,709		 Total
funds
2021
£
833,271
80,646
913,917
71,708
71,708
985,625

The Government grant is amount received under the Coronavirus Job Retention Scheme.

Donations
Church collections
Gift aid income tax recoverable
Gift aid receivable from subsidiary
Subtotal detailed disclosure
Government grants
Subtotal		 Restricted
funds
2020
£
17,346
-
-
17,346
89,803
89,803
107,149		 Unrestricted
funds
2020
£
718,236
67,471
-
785,707
-
-
785,707		 Total
funds
2020
£
735,582
67,471
-
803,053
89,803
89,803
892,856

Page 20

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

4. Income from charitable activities

Income from charitable activities - Vending machines
Unrestricted
funds
2020
£
Income from charitable activities - Vending machines
914		 Total
funds
2021
£
-
Total
funds
2020
£
914

Page 21

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

5. Income from other trading activities

Income from non charitable trading activities

Rent receivable
Rent receivable		 Unrestricted
funds
2021
£
125,975
Unrestricted
funds
2020
£
15,150		 Total
funds
2021
£
125,975
Total
funds
2020
£
15,150

6. Investment income

Unrestricted
funds
2021
£
Investment income - local investment properties
29,872
Investment income - local cash
732
30,604
Unrestricted
funds
2020
£
Investment income - local investment properties
35,688
Investment income - local cash
1,453
Interest receivable
5
37,146		 Total
funds
2021
£
29,872
732
30,604
Total
funds
2020
£
35,688
1,453
5
37,146

Page 22

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

7. Other incoming resources

Total funds 2021 £

Unrestricted Total
funds funds
2020 2020
£ £
Other operating income 729 729

8. Analysis of charitable donations

United Kingdom
United Kingdom		 Charitable
donations
to
Institutions
2021
£
35,000
Charitable
donations to
Institutions
2020
£
10,000		 Total
funds
2021
£
35,000
Total
funds
2020
£
10,000

Page 23

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

9. Analysis of expenditure on charitable activities

Summary by fund type

Advancement of Christian Faith
Advancement of Christian Faith		 Restricted
funds
2021
£
113,292
Restricted
funds
2020
£
22,676		 Unrestricted
funds
2021
£
1,018,625
Unrestricted
funds
2020
£
1,074,056		 Total
2021
£
1,131,917
Total
2020
£
1,096,732

10. Analysis of expenditure by activities

Advancement of Christian Faith
Advancement of Christian Faith		 Activities
undertaken
directly
2021
£
475,474
Activities
undertaken
directly
2020
£
417,651		 Charitable
donation
funding of
activities
2021
£
35,000
Charitable
donation
funding of
activities
2020
£
10,000		 Support
costs
2021
£
621,443
Support
costs
2020
£
669,081		 Total
funds
2021
£
1,131,917
Total
funds
2020
£
1,096,732

Page 24

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Depreciation
Ministry expenses
Evangelism and special events
Music expenses
Media expenses
Staff costs
Depreciation
Ministry expenses
Evangelism and special events
Music expenses
Media expenses		 Advanceme
nt of
Christian
Faith
2021
£
202,595
127,876
50,332
46,080
27,423
21,168
475,474
Advancemen
t of Christian
Faith
2020
£
198,294
149,212
25,872
24,893
8,499
10,881
417,651		 Total
funds
2021
£
202,595
127,876
50,332
46,080
27,423
21,168
475,474
Total
funds
2020
£
198,294
149,212
25,872
24,893
8,499
10,881
417,651

Page 25

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Vending machines
Premises costs
Communication costs
Finance costs
Office and administration costs
Professional and consultancy fees
Travel and accomodation
Motor vehicle expenses
Income tax
(Gain)/loss on disposal of assets
Exchange (gain)/loss
Sundry church expenses
Governance costs		 Advanceme
nt of
Christian
Faith
2021
£
172,377
36,099
856
268,393
23,507
28,977
14,677
67,259
2,202
11,859
(28,625)
(5,695)
181
20,796
8,580
621,443		 Total
funds
2021
£
172,377
36,099
856
268,393
23,507
28,977
14,677
67,259
2,202
11,859
(28,625)
(5,695)
181
20,796
8,580
621,443

Page 26

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Depreciation
Vending machines
Bookshop
Premises costs
Communication costs
Finance costs
Office and administration costs
Professional and consultancy fees
Travel and accomodation
Motor vehicle expenses
Bad debt
Exchange (gain)/loss
Sundry church expenses
Governance costs
11.
Auditors' remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of:
The auditing of accounts of associates of the Charity
All non-audit services not included above		 Advancemen
t of Christian
Faith
2020
£
177,568
37,302
3,629
248
242,314
23,362
35,936
24,555
73,648
6,674
8,831
1,000
(39)
25,473
8,580
669,081
2021
£
5,610
2,500
4,020		 Total
funds
2020
£
177,568
37,302
3,629
248
242,314
23,362
35,936
24,555
73,648
6,674
8,831
1,000
(39)
25,473
8,580
669,081
2020
£
5,610
1,700
4,020

Page 27

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£
332,775
36,316
5,881
374,972		 Group
2020
£
371,483
32,109
5,928
409,520		 Charity
2021
£
332,775
36,316
5,881
374,972		 Charity
2020
£
371,483
32,109
5,928
409,520

The average number of persons employed by the Charity during the year was as follows:

Pastors
Church administration		 Group
2021
No.
2
6
8		 Group
2020
No.
2
7
9		 Charity
2021
No.
2
6
8		 Charity
2020
No.
2
7
9

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £80,001 - £90,000 2 1
In the band £120,001 - £130,000 - 1

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL) .

Page 28

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

14. Taxation

Corporation tax
Adjustments in respect of previous periods
Taxation on net expenditure		 2021
£
-
-		 2020
£
(1,305)
(1,305)

There were no factors that affected the tax credit for the year which has been calculated on net expenditure at the standard rate of corporation tax in the UK of 19% (2020 - 19%).

There are no factors considered likely to affect future tax charges.

Page 29

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

15. Tangible fixed assets

Group and Charity

Cost or valuation
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
On disposals
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Freehold
property
£
7,860,474
-
-
7,860,474
1,213,993
137,794
-
1,351,787
6,508,687
6,646,481		 Motor
vehicles
£
119,846
-
(42,491)
77,355
112,070
869
(38,186)
74,753
2,602
7,776		 Fixtures and
fittings
£
1,522,585
5,140
-
1,527,725
1,490,076
25,313
-
1,515,389
12,336
32,509		 Total
£
9,502,905
5,140
(42,491)
9,465,554
2,816,139
163,976
(38,186)
2,941,929
6,523,625
6,686,766

Page 30

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

16. Fixed asset investments

Charity
Cost or valuation
At 1 January 2021
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Investments
in
subsidiary
companies
£
3
3
3
3

Page 31

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

16. Fixed asset investments (continued)

Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Company Registered office or principal Principal activity number place of business Lighthouse Operations Ltd 11124403 254 - 270 Camberwell Road, Hire of events space Camberwell Road, London SE5 0DP Class of Holding shares Ordinary 100%

The financial results of the subsidiary for the year were:

Name Income Expenditure Profit/(Loss)
£ £ / Surplus/
(Deficit) for
the year
£
Lighthouse Operations Ltd 125,975 82,449 48,526
Net assets
£

98,658

Page 32

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

17. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income
Tax recoverable		 Group
2021
£
-
10,838
19,571
31,250
61,659		 Group
2020
£
9,671
11,460
11,363
60,549
93,043		 Charity
2021
£
-
10,591
19,571
31,250
61,412		 Charity
2020
£
9,671
10,783
11,363
60,549
92,366

Page 33

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

18. Creditors: Amounts falling due within one year

Bank overdrafts
Bank loans
Trade creditors
Amounts owed to group undertakings
Corporation tax
Other taxation and social security
Pension fund loan payable
Other creditors
Accruals and deferred income		 Group
2021
£
7,871
179,680
44,978
-
-
14,265
1,294
7,762
12,647
268,497		 Group
2020
£
4,110
113,112
34,070
-
1,887
42,163
1,306
7,760
11,330
215,738		 Charity
2021
£
7,871
169,680
44,978
131,641
-
14,265
1,294
2
8,580
378,311		 Charity
2020
£
4,110
107,279
34,070
96,642
-
42,163
1,306
-
8,580
294,150

19. Creditors: Amounts falling due after more than one year

Bank loans
20.
Financial instruments
Financial assets
Financial assets measured at fair value
through income and expenditure		 Group
2021
£
534,737
Group
2021
£
116,299		 Group
2020
£
691,819
Group
2020
£
98,259		 Charity
2021
£
500,570
Charity
2021
£
93,535		 Charity
2020
£
647,652
Charity
2020
£
78,049

Financial assets measured at fair value through income and expenditure comprise bank and cash balances.

Page 34

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds - all funds
Reserves
Restricted funds
Missions fund
Children and youth fund
Building fund
Welfare fund
Food bank
Coronavirus Job Retention Scheme
Total of funds		 Balance at 1
January
2021
£
5,807,346
55,129
5,862,475
6,277
1,326
18,132
76,708
5,593
-
108,036
5,970,511		 Income
£
927,313
125,975
1,053,288
12,663
-
4,012
533
-
71,708
88,916
1,142,204		 Expenditure
£
(1,018,626)
(82,448)
(1,101,074)
(18,940)
-
(22,144)
(500)
-
(71,708)
(113,292)
(1,214,366)		 Balance at
31
December
2021
£
5,716,033
98,656
5,814,689
-
1,326
-
76,741
5,593
-
83,660
5,898,349

Page 35

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds - all funds
Restricted funds
Children and youth fund
Building fund
Welfare fund
Food bank
Mission fund
Total of funds		 Balance at
1 January
2020
£
6,025,745
1,326
30,575
75,872
5,593
-
113,366
6,139,111		 Income
£
932,337
-
10,233
836
-
6,277
17,346
949,683		 Expenditure
£
(1,096,912)
-
(22,676)
-
-
-
(22,676)
(1,119,588)		 Taxation
£
1,305
-
-
-
-
-
-
1,305		 Balance at
31
December
2020
£
5,862,475
1,326
18,132
76,708
5,593
6,277
108,036
5,970,511

Page 36

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

22. Summary of funds

Summary of funds - current year

General funds
Restricted funds
Summary of funds - prior year
Balance at
1 January
2020
£
General funds
6,025,745
Restricted funds
113,366
6,139,111		 Balance at 1
January
2021
£
5,862,475
108,036
5,970,511
Income
£
932,337
17,346
949,683		 Income
£
1,053,288
88,916
1,142,204
Expenditure
£
(1,096,912)
(22,676)
(1,119,588)		 Expenditure
£
(1,101,074)
(113,292)
(1,214,366)
Taxation
£
1,305
-
1,305		 Balance at
31
December
2021
£
5,814,689
83,660
5,898,349
Balance at
31
December
2020
£
5,862,475
108,036
5,970,511
General funds
Restricted funds

23. Analysis of net assets between funds Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
6,523,625
83,660
94,298
-
(268,497)
-
(534,737)
83,660
5,814,689		 Total
funds
2021
£
6,523,625
177,958
(268,497)
(534,737)
5,898,349

Page 37

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

23. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2020
£
-
108,036
-
-
108,036		 Unrestricted
funds
2020
£
6,686,766
83,266
(215,738)
(691,819)
5,862,475		 Total
funds
2020
£
6,686,766
191,302
(215,738)
(691,819)
5,970,511

24. Reconciliation of net movement in funds to net cash flow from operating activities

25.

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Loss/(profit) on the sale of fixed assets
Decrease in debtors
Increase/(decrease) in creditors
Investment impairment
Net cash provided by/(used in) operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2021
£
(72,162)
163,976
(30,704)
(5,695)
31,384
(9,642)
-
77,157
Group
2021
£
116,299
116,299		 Group
2020
£
(168,600)
186,514
(40,034)
-
6,516
4,509
7,930
(3,165)
Group
2020
£
98,259
98,259

Page 38

HOUSE OF PRAISE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

26. Analysis of changes in net debt

Cash at bank and in hand
Bank overdrafts repayable on demand
Debt due within 1 year
Debt due after 1 year		 At 1
January
2021
£
98,259
(4,110)
(114,418)
(691,819)
(712,088)		 Cash flows
£
18,040
(3,761)
(66,556)
157,082
104,805		 At 31
December
2021
£
116,299
(7,871)
(180,974)
(534,737)
(607,283)

27. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £5,881 (2020 - £5,298).

28. Operating lease commitments

At 31 December 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Charity Charity
2021 2020
£ £
Not later than 1 year 60,000 60,000

29. Related party transactions

During the period, the charity paid Pastor Andrew Adeleke (Senior Pastor), who is the spouse of the Chief Executive (Pastor Olayemi Adeleke) £60,000 (2020 - £60,000) for use of his home as vicarage.

Included in other debtors (note 17) is loan of £nil (2020 - £7,930) to Pastor Andrew Adeleke (Senior Pastor), who is the spouse of the Chief Executive (Pastor Olayemi Adeleke).

During the year, the charity sold one of its motor vehicles to Pastor Andrew Adeleke for £10,000 on market value basis.

During the year, Eden Group a business owned by the son of Pastor Andrew Adeleke (Senior Pastor), who is the spouse of the Chief Executive (Pastor Olayemi Adeleke), charged the subsidiary company £50,256 in commission for managing the hall hiring process.

Page 39