REGISTERED COMPANY NUMBER: 10674059 (England and Wales) REGISTERED CHARITY NUMBER: 1176607
REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
FOR
THE NORWEGIAN CHURCH
Rothmans Audit LLP Statutory Auditors Chartered Accountants Fryern House 125 Winchester Road Chandlers Ford Hampshire SO53 2DR
THE NORWEGIAN CHURCH
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 4 |
| Report of the Independent Auditors | 5 | to | 7 |
| Statement of Financial Activities | 8 | ||
| Balance Sheet | 9 | ||
| Cash Flow Statement | 10 | ||
| Notes to the Cash Flow Statement | 11 | ||
| Notes to the Financial Statements | 12 | to | 19 |
THE NORWEGIAN CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
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 for the year ended 31 December 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The Norwegian Church in London dates back to 1692 when the Danish/Norwegian congregation was formed. In 1696 a Danish Norwegian Church was consecrated in Wapping, but from 1868, The Norwegian Seamen's Mission of Bergen, Norway, took over the responsibility for Norwegian seafarers and expatriates in London, under the jurisdiction of the Bishop of Bergen, Norway. A new church was built and consecrated in Surrey Docks area in 1872 and finally, St. Olav's Church, the present church, was built and consecrated in 1927.
The purpose of the Church and Charity is to serve Norwegian expatriates and seafarers in London and South East England, even though the church's jurisdiction covers all UK. St. Olav's Church is a Christian, Cultural and Social Centre for Norwegians and has between 20 and 25 thousand visitors each year. In 1996 an extension was built to accommodate the increasing number of people and activities.
Until 31 December 2018 the activities of the charity were undertaken by The Norwegian Church and Seamens Mission (a trust based charity, charity number 220235). The trustees of that charity, after taking suitable advice, took the decision that the trust based structure would no longer the most appropriate form for the charity in the future. The Norwegian Church was incorporated in 2017 and registered with the Charity Commission of England and Wales on 10 January 2018. On 1 January 2019 the assets and liabilities of The Norwegian Church and Seamens Mission were transferred to. The Norwegian Church. The trustees of the two charities are the same.
Significant activities
In line with the Basic Rules and Strategy Document of The Norwegian Seamen's Mission/Norwegian Church abroad, as well as our local strategy plans, we have achieved our objectives. Services, baptisms, confirmations, weddings and funerals are part of the work of the Church, as well as cultural events and social work amongst the target groups.
Social work includes monthly home visits to the elderly, hospital visits to sick Norwegians and prison visits. In addition, during the winter months the charity participates in the Robes Project for homeless.
Cultural events includes the annual Constitution Day Celebrations, Sunday lunch after the Service, weekly toddler song and family lunch, weekly Saturday school and lunch, monthly students dinner and Women Society every fortnight.
The charity continues to plan for the construction of flats to the rear of the church.
Public benefit
The trustees confirm that they have complied with the duty in s17(5) of the Charities Act 2011 to have due regard to the Charity Commission's guidance on public benefit. This includes the additional guidance for charities on the advancement of religion, in deciding what activities the charity should undertake, in line with its aims and objectives.
ACHIEVEMENT AND PERFORMANCE
Fundraising activities
Historically, the biggest fundraiser locally is the annual Christmas Fair selling goods imported from Norway as well as handicraft produced by local parishioners. However the COVID restrictions during 2020 and 2021 have significantly affected the charity's ability to run this event, the trustees believe that this event will return to its previous popularity.The church has continued to provide support to it's visitors.
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THE NORWEGIAN CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
FINANCIAL REVIEW
Financial position
As noted above the assets and liabilities of The Norwegian Church and Seamen's Mission were transferred to the charity on 1 January 2019.
A summary of the year's results are presented on page 8. Total incoming resources amounted to £576,097 (2020: £983,211) and total resources expended amounted to £464,763 (2020: £605,186).
The charity is dependent on voluntary income and income from its other fund raising activities. As a result of the COVID restrictions put in place by the UK government during 2020 and 2021, the charity's ability to generate income was severely restricted.
The trustees however remain confident that the charity remains in a strong financial position.
The trustees have continued to make use of the available government support, which included making use of the furlough scheme to help protect the jobs of the employees as far as possible.
Any shortfall in income against budgeted expenditure can be rectified by calling upon the support of The Norwegian Head Office, which has indicated it does not consider that normal operations are likely before summer 2022.
The balance sheet on page 9 shows total funds at the year end of £2,419,418 of (2020: £2,308,084). This comprises two unrestricted funds, the general fund and a designated fund (Norwegian Benevolent fund) with a balances of £2,023,140 (2020: £1,923,597) and £70,789 (2020: £74,089) respectively. In addition, during 2020 the charity received a donation specifically towards the project to develop flats. This amount is held in a restricted fund, the balance at the year end was £325,489.
The charity's income is derived from sources in the UK and Norway. The Norwegian Head Office pays the salaries. The Norwegian Head Office guarantees the cash flow requirements of the charity; consequently if there is a cash shortfall caused by reduced activity or a reduction in the income generated locally funding will be made available to ensure the charity can continue its operation.
Annual and monthly accounts, as well as budgets are sent to the Norwegian Seamen's Mission in Bergen, Norway and are subject to their approval.
Reserves policy
It is the trustees' policy is to retain sufficient reserves to ensure that the charity's day to day commitments can be met.
A large proportion of the funds consist of properties, therefore the charity's reserves are £54,827 (2020: £nil).The reserves are held as primarily as cash balances.
The charity is dependent on donations, legacies and fund raising events for the majority of its income, the timing and amount of which is variable in nature. The trustees therefore consider holding reserves equivalent to 2 - 6 months costs to be appropriate.
During the year the charity used some of its reserve on planning and preparation costs of the development of flats to the rear of the church which will generate a future income stream for the charity.
The charity is able to call upon the support of its head office in Norway to help fund its operations.
FUTURE PLANS
The charity continues to plan for the construction of flats to the rear of the church, which once rented will generate future income for the charity. During the year the charity incorporated a subsidiary company, St Olavs House Limited, which will undertake the development of the flats.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity was registered by the Charity Commission for England and Wales on 10 January 2018. The charity is controlled by its governing document, its articles of association dated 16 March 2017, and constitutes a company limited by guarantee, as defined by the Companies Act 2006.
Decision making
The trustees meet at least four times a year and are elected on a rotating basis for three year terms.
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THE NORWEGIAN CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Induction and training of new trustees
New trustees are given full information on the work of the charity over the last years including minutes, annual reports and accounts. Where appropriate, external training courses for trustees are offered and internal training is also provided. Representatives from the Church of Norway Abroad will occasionally visit the charity and give input to the trustees.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed, in particular those related to its operations and finances, and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error, and to mitigate its exposure to major risks.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
10674059 (England and Wales)
Registered Charity number
1176607
Registered office
1 St Olav's Square Albion Street London SE16 7JB
Trustees Ms A Marwa Mr B Bratland Mrs A M Hovland-Pye Mr V S Dart Rev D M H Havgar
Auditors Rothmans Audit LLP Statutory Auditors Chartered Accountants Fryern House 125 Winchester Road Chandlers Ford Hampshire SO53 2DR
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of The Norwegian Church for the purposes of company law) are responsible for preparing the Report of the Trustees 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 company for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which 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.
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THE NORWEGIAN CHURCH
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued
In so far as the trustees are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITORS
The auditors, Rothmans Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of trustees on 28 September 2022 and signed on its behalf by:
Rev D M H Havgar - Trustee
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE NORWEGIAN CHURCH
Opinion
We have audited the financial statements of The Norwegian Church (the 'charitable company') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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.
In connection with our audit of the financial statements, 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 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Page 5
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE NORWEGIAN CHURCH
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.
Our responsibilities for the audit of the financial statements
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 a Report of the Independent Auditors 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Identifying the laws and regulations applicable to the charity, which we considered may have a direct material effect on the financial statements, through discussions with the trustees; and from our knowledge and experience of the wider charity sector.
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Assessing the extent of compliance with the laws and regulations identified above through making enquiries of management.
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Assessing the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of their procedures for the allocation of income and expenditure to the different funds and how fraud might occur by making enquiries of management. Reviewing management's assessment as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud.
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Discussing among the engagement team regarding how and where fraud might occur in the Financial Statements and any potential indicators of fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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reviewing the allocation of income and expenditure between unrestricted and restricted:
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to ensure that income is complete and correctly allocated to the restricted and unrestricted funds; and
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to ensure expenditure is only allocated to restricted funds when it is permitted by the restrictions applicable to that fund.
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reviewing the minutes of the trustees' meetings;
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enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
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 Report of the Independent Auditors.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE NORWEGIAN CHURCH
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Robin Lloyd FCA (Senior Statutory Auditor) for and on behalf of Rothmans Audit LLP Statutory Auditors Chartered Accountants Fryern House 125 Winchester Road Chandlers Ford Hampshire SO53 2DR
28 September 2022
Page 7
THE NORWEGIAN CHURCH
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021
| 2021 Unrestricted Restricted Total funds funds funds Notes £ £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 4 509,291 - 509,291 Charitable activities Charitable Activities 6,311 - 6,311 Other trading activities 5 6,653 - 6,653 Investment income 6 53,842 - 53,842 Total 576,097 - 576,097 EXPENDITURE ON Raising funds 8 16,024 - 16,024 Charitable activities 9 Charitable Activities 448,739 - 448,739 Total 464,763 - 464,763 NET INCOME 111,334 - 111,334 Transfers between funds 21 (15,091) 15,091 - Net movement in funds 96,243 15,091 111,334 RECONCILIATION OF FUNDS Total funds brought forward 1,997,686 310,398 2,308,084 TOTAL FUNDS CARRIED FORWARD 2,093,929 325,489 2,419,418 |
2020 Total funds £ 867,496 38,023 11,753 65,939 |
|---|---|
| 983,211 | |
| 37,278 567,908 |
|
| 605,186 | |
| 378,025 - |
|
| 378,025 1,930,059 |
|
| 2,308,084 |
The notes form part of these financial statements
Page 8
THE NORWEGIAN CHURCH
BALANCE SHEET 31 DECEMBER 2021
| Unrestricted Restricted funds funds Notes £ £ FIXED ASSETS Tangible assets 16 1,547,836 325,489 Heritage assets 17 349,070 - Investments 18 618 - 1,897,524 325,489 CURRENT ASSETS Debtors 19 9,628 - Cash at bank and in hand 190,242 - 199,870 - CREDITORS Amounts falling due within one year 20 (3,465) - NET CURRENT ASSETS 196,405 - TOTAL ASSETS LESS CURRENT LIABILITIES 2,093,929 325,489 NET ASSETS 2,093,929 325,489 FUNDS 21 Unrestricted funds Restricted funds TOTAL FUNDS |
2021 Total funds £ 1,873,325 349,070 618 2,223,013 9,628 190,242 199,870 (3,465) 196,405 2,419,418 2,419,418 2,093,929 325,489 2,419,418 |
2020 Total funds £ 1,548,481 349,070 618 1,898,169 13,344 399,869 413,213 (3,298) 409,915 2,308,084 2,308,084 1,997,686 310,398 2,308,084 |
|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 28 September 2022 and were signed on its behalf by:
Rev D M H Havgar - Trustee
The notes form part of these financial statements
Page 9
THE NORWEGIAN CHURCH
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Purchase of fixed asset investments Interest received Net cash used in investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2021 £ 115,862 115,862 (325,489) - - (325,489) (209,627) 399,869 190,242 |
2020 £ 369,177 369,177 (9,931) (618) 40 (10,509) 358,668 41,201 399,869 |
|---|---|---|
The notes form part of these financial statements
Page 10
THE NORWEGIAN CHURCH
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021
| 1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING | ACTIVITIES | |
|---|---|---|---|---|---|
| 2021 | 2020 | ||||
| £ | £ | ||||
| Net income for the reporting period (as per the Statement of Financial | |||||
| Activities) | 111,334 | 378,025 | |||
| Adjustments for: | |||||
| Depreciation charges | 645 | 2,493 | |||
| Interest received | - | (40) | |||
| Decrease in stocks | - | 4,194 | |||
| Decrease in debtors | 3,716 | 20,794 | |||
| Increase/(decrease) in creditors | 167 | (36,289) | |||
| Net cash provided by operations | 115,862 | 369,177 | |||
| 2. | ANALYSIS OF CHANGES IN NET FUNDS | ||||
| At 1/1/21 | Cash flow | At 31/12/21 | |||
| £ | £ | £ | |||
| Net cash | |||||
| Cash at bank and in hand | 399,869 | (209,627) | 190,242 | ||
| 399,869 | (209,627) | 190,242 | |||
| Total | 399,869 | (209,627) | 190,242 |
The notes form part of these financial statements
Page 11
THE NORWEGIAN CHURCH
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
1. CHARITY INFORMATION
The Norwegian Church an incorporated charity was incorporated in England and Wales on 16 March 2017 (registration number 10674059) and was registered as a charity with the Charity Commission for England and Wales on 10 January 2018 (registration number 1176607) .
The registered address is 1 St Olav's Square, Albion Street, London, United Kingdom, SE16 7JB.
The principal activity of The Norwegian Church is religious and social welfare.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.
The functional and presentation currency is £ sterling.
Preparation of the accounts on a going concern basis
The Charity reported a cash outflow of £209,627, however, the Trustees are of the view that the costs incurred during the year in respect of the planned construction of new flats to the rear of the Church will secure the immediate future of the Charity. The Charity also continues to maintain the support of the Head Office in Bergen, Norway. On this basis, there are no material uncertainties about the charity's ability to continue and therefore the charity is a going concern.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Allocation and apportionment of costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include personnel, finance, administrative and governance costs which support the operation of the charity and its activities. These costs are allocated between the costs of charitable activities and raising funds.
Depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - not provided Fixtures and fittings - 20% straight line Motor vehicles - 25% straight line
Fixed assets
All fixed assets are initially recorded at cost.
Properties are included at cost at the time of acquisition and are all functional. No depreciation is provided on freehold property. Depreciation would be immaterial due to the high residual values of the assets. An annual impairment review is undertaken for those tangible fixed assets which are not depreciated. Individual fixed assets costing £1,000 or more are capitalised at cost.
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THE NORWEGIAN CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021
2. ACCOUNTING POLICIES - continued
Heritage assets
The charity owns a historic Church dating back to 1927, located at 1 St Olav's Square, Rotherhithe, London, SE16. The Church is maintained by the charity for use by the local Norwegian community as a place of worship and culture.
The Church is reported in the balance sheet at the original cost. The Church is deemed to have an interdependent life and therefore the Trustees do not consider it appropriate to charge depreciation in respect of the Church. An annual impairment review is undertaken for the Church.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Unrestricted funds are available to spend on activities that further any of the purposes of the Church. Designated funds are unrestricted funds of the Church which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Church's work or for specific projects undertaken by the Church.
3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
Significant Judgements
In preparing these account the trustees have made the following judgements: Determining whether income is restricted or unrestricted. These decisions depend upon whether the donor has given the income subject to certain terms or conditions which impose a restriction in trust law.
Determining whether the residual values of freehold property are sufficient to result in no depreciation being charged.
Determining whether the church meets the definition of a heritage asset.
Key Sources of Estimation Uncertainty
Tangible fixed assets are depreciated over their useful economic lives taking into account residual values, where appropriate. The actual lives of the assets and residual values may vary depending on a number of factors. Factors affecting the lives of assets include technological innovation and maintenance programmes.
4.
DONATIONS AND LEGACIES
| Regular annual donations Donations Weekly collections Wages and salaries paid by The Norwegian Seamen's Mission in Bergen Other grants |
2021 £ 5,643 76,658 3,479 193,608 229,903 509,291 |
2020 £ 3,570 409,736 3,973 219,965 230,252 |
|---|---|---|
| 867,496 |
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THE NORWEGIAN CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021
| 5. | OTHER TRADING ACTIVITIES | |||
|---|---|---|---|---|
| 2021 | 2020 | |||
| £ | £ | |||
| Christmas fair | 6,653 | 11,753 | ||
| 6. | INVESTMENT INCOME | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Rents received | 53,842 | 65,899 | ||
| Interest receivable | - | 40 | ||
| 53,842 | 65,939 | |||
| 7. | INCOME FROM CHARITABLE | ACTIVITIES | ||
| 2021 | 2020 | |||
| Activity | £ | £ | ||
| Events | Charitable Activities | 4,348 | 24,902 | |
| Canteen | Charitable Activities | 1,888 | 12,771 | |
| Sundry | Charitable Activities | 75 | 350 | |
| 6,311 | 38,023 | |||
| 8. | RAISING FUNDS | |||
| Raising funds from charitable | activities | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Canteen | 4,275 | 16,368 | ||
| Events | 10,431 | 17,673 | ||
| 14,706 | 34,041 | |||
| Other trading activities | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Christmas fair | 547 | 2,642 | ||
| Church magazine | 771 | 595 | ||
| 1,318 | 3,237 | |||
| Aggregate amounts | 16,024 | 37,278 |
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THE NORWEGIAN CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021
9. CHARITABLE ACTIVITIES COSTS
| 9. | CHARITABLE ACTIVITIES COSTS | |||
|---|---|---|---|---|
| Direct | Support | |||
| Costs (see | costs (see | |||
| note 10) | note 11) | Totals | ||
| £ | £ | £ | ||
| Charitable Activities | 430,743 | 17,996 | 448,739 | |
| 10. | DIRECT COSTS OF CHARITABLE ACTIVITIES | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Staff costs | 243,591 | 394,931 | ||
| Rent rates and insurance | 64,987 | 67,779 | ||
| Light and heat | 29,054 | 31,765 | ||
| Telephone | 12,115 | 12,375 | ||
| Postage and stationery | 1,607 | 640 | ||
| Sundries | 16,086 | 13,312 | ||
| Catering equipment | 18 | 855 | ||
| Repairs and renewals | 48,012 | 46,821 | ||
| Motor and travel | 5,055 | 6,401 | ||
| Bank charges | 1,714 | 1,634 | ||
| Foreign exchange (gain)/loss | 4,559 | (27,529) | ||
| Payments from designated funds | 3,300 | 2,308 | ||
| Depreciation | 645 | 2,493 | ||
| 430,743 | 553,785 | |||
| 11. | SUPPORT COSTS | |||
| Governance | ||||
| costs | ||||
| £ | ||||
| Charitable Activities | 17,996 | |||
| 12. | NET INCOME/(EXPENDITURE) | |||
| Net income/(expenditure) is stated after charging/(crediting): | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Auditors' remuneration | 3,270 | 3,270 | ||
| Depreciation - owned assets | 645 | 2,492 |
13. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.
Revd. Dag Magnus Hopstock Havgar the rector & senior chaplain is also a trustee. He receives remuneration in respect of his employment as rector & senior chaplain, no remuneration is paid for services as trustee. The remuneration is paid by the charity's head office in Norway.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.
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THE NORWEGIAN CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021
14. STAFF COSTS
| STAFF COSTS | ||||
|---|---|---|---|---|
| 2021 | 2020 | |||
| £ | £ | |||
| Wages and salaries | 243,591 | 394,931 | ||
| 243,591 | 394,931 | |||
| The average monthly number of employees during the year was as follows: | ||||
| 2021 | 2020 | |||
| Staff | 15 | 21 | ||
| No employees received emoluments in excess of £60,000. | ||||
| During the year key management personnel received remuneration of £49,649 | (2020: £46,662) | and rent fr | ||
| accomodation at a property owned by the charity. | ||||
| COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES | ||||
| Unrestricted | Restricted | Total | ||
| funds | funds | funds | ||
| £ | £ | £ | ||
| INCOME AND ENDOWMENTS FROM | ||||
| Donations and legacies | 557,098 | 310,398 | 867,496 | |
| Charitable activities | ||||
| Charitable Activities | 38,023 | - | 38,023 | |
| Other trading activities | 11,753 | - | 11,753 | |
| Investment income | 65,939 | - | 65,939 | |
| Total | 672,813 | 310,398 | 983,211 | |
| EXPENDITURE ON | ||||
| Raising funds | 37,278 | - | 37,278 | |
| Charitable activities | ||||
| Charitable Activities | 567,908 | - | 567,908 | |
| Total | 605,186 | - | 605,186 | |
| NET INCOME | 67,627 | 310,398 | 378,025 | |
| RECONCILIATION OF FUNDS | ||||
| Total funds brought forward | 1,930,059 | - | 1,930,059 | |
| TOTAL FUNDS CARRIED FORWARD | 1,997,686 | 310,398 | 2,308,084 |
During the year key management personnel received remuneration of £49,649 (2020: £46,662) and rent free accomodation at a property owned by the charity.
15. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
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THE NORWEGIAN CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021
16. TANGIBLE FIXED ASSETS
| Freehold property £ COST At 1 January 2021 1,546,546 Additions 325,489 Disposals - At 31 December 2021 1,872,035 DEPRECIATION At 1 January 2021 - Charge for year - Eliminated on disposal - At 31 December 2021 - NET BOOK VALUE At 31 December 2021 1,872,035 At 31 December 2020 1,546,546 17. HERITAGE ASSETS MARKET VALUE At 1 January 2021 and 31 December 2021 NET BOOK VALUE At 31 December 2021 At 31 December 2020 Heritage assets are comprised of the church buildings. 18. FIXED ASSET INVESTMENTS MARKET VALUE At 1 January 2021 and 31 December 2021 NET BOOK VALUE At 31 December 2021 At 31 December 2020 There were no investment assets outside the UK. |
Fixtures and fittings £ 138,781 - - 138,781 136,846 645 - 137,491 1,290 1,935 |
Motor vehicles Totals £ £ - 1,685,327 - 325,489 (12,000) (12,000) (12,000) 1,998,816 - 136,846 - 645 (12,000) (12,000) (12,000) 125,491 - 1,873,325 - 1,548,481 Total £ 349,070 349,070 349,070 Shares in group undertakings £ 618 618 618 |
|---|---|---|
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THE NORWEGIAN CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021
19. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 19. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
||||
|---|---|---|---|---|
| Other debtors Debtors are recognised at the settlement amount due after any trade discount offered. 20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Other creditors Accruals and deferred income |
2021 £ 9,628 2021 £ 195 3,270 3,465 |
2020 £ 13,344 |
||
| 2020 £ 28 3,270 |
||||
| 3,298 |
Creditors 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 are recognised at their settlement amount after allowing for any trade discounts due.
21. MOVEMENT IN FUNDS
| At 1/1/21 £ Unrestricted funds General fund 1,923,597 Benevolent fund 74,089 1,997,686 Restricted funds St Olavs House 310,398 TOTAL FUNDS 2,308,084 Net movement in funds, included in the above are as follows: Unrestricted funds General fund Benevolent fund TOTAL FUNDS |
Net movement in funds £ 114,634 (3,300) 111,334 - 111,334 Incoming resources £ 576,097 - 576,097 576,097 |
Transfers between funds £ (15,091) - (15,091) 15,091 - Resources expended £ (461,463) (3,300) (464,763) (464,763) |
At 31/12/21 £ 2,023,140 70,789 |
At 31/12/21 £ 2,023,140 70,789 |
|---|---|---|---|---|
| 2,093,929 325,489 |
||||
| 2,419,418 | ||||
| Movement in funds £ 114,634 (3,300) 111,334 111,334 |
||||
| 111,334 | ||||
| 111,334 |
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THE NORWEGIAN CHURCH
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021
21. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| At 1/1/20 £ Unrestricted funds General fund 1,853,702 Benevolent fund 76,357 1,930,059 Restricted funds St Olavs House - TOTAL FUNDS 1,930,059 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 672,773 Benevolent fund 40 672,813 Restricted funds St Olavs House 310,398 TOTAL FUNDS 983,211 |
Net movement in funds £ 69,895 (2,268) 67,627 310,398 378,025 Resources expended £ (602,878) (2,308) (605,186) - (605,186) |
At 31/12/20 £ 1,923,597 74,089 1,997,686 310,398 2,308,084 Movement in funds £ 69,895 (2,268) 67,627 310,398 378,025 |
|---|---|---|
Norwegian Benevolent Fund
The Scandinavian Benevolent Fund ended its activities in 2006. Assets were donated to the Norwegian and the Danish church in January 2007. The Norwegian Church continues to support the Norwegian citizens that were supported in 2006 with a similar amount of money. The Benevolent fund is a designated fund.
Transfers between funds
During the year the general fund paid for items relating to the development of the St Olavs House flats, these amounts have been transferred to the restricted fund.
22. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2021.
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