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2023-03-31-accounts

Annual Report and Financial Statements for the Year Ended 31 March 2023

Hope Church Network

Charity registration number: 1182733

Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF

HOPE CHURCH NETWORK

CONTENTS

Reference and Administrative Details 1
Trustees' Report 2 to 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10 to 20

HOPE CHURCH NETWORK

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees

Ralph Buckingham Jane Burchell (resigned 19 May 2022) Matthew Elsom Rosemary Mackenzie Jonathan Piper Isabel Stirling Phillip Johnston Benjamin Cornell (appointed 19 May 2022) Andrew Oru (appointed 19 May 2022) Sara Baines (appointed 19 May 2022)

Charity Registration 1182733 Number Principal Office Central Hall 12 Forest Road Liss Hampshire GU33 7BH Independent Examiner G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

Page 1

HOPE CHURCH NETWORK

TRUSTEES' REPORT

The Trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2023.

Structure, governance and management

Nature of governing document

Hope Church Network registered as a Charitable Incorporated Organisation (CIO), number 1182733, on 19 April 2019.

Organisational structure

All Trustees are members of the Church Leadership Team (CLT), which is comprised of the church’s elders and deacons, and all members of the CLT are Trustees. The Trustees meet regularly as the CLT and have responsibility for the general, legal and fiscal oversight of the charity. A minimum of 4 Trustees Meetings are held each year.

Risk management

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 and procedures are in place to mitigate exposure to the major risks.

Objectives and activities

Objects and aims

The Constitution of Hope Church sets out our charitable objects for the public benefit in three areas:

  1. to advance the Christian faith in accordance with the Statement of Faith in such ways and in such parts of the United Kingdom or the world as the Trustees from time to time may think fit;

  2. to relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind, including through the provision of counselling and support in such parts of the United Kingdom or the world as the Trustees from time to time may think fit; and

  3. to advance education in such ways and in such parts of the United Kingdom or the world as the Trustees from time to time may think fit.

Page 2

HOPE CHURCH NETWORK

TRUSTEES' REPORT (CONTINUED)

Objectives, strategies and activities

These objects are, in part, met through the work of our various Mission Partners, whom we see as our fellow workers in God’s mission, and whom we are privileged to be able to support, particularly through prayer and finance. At home, it is our usual practice to meet our Objects in the following ways:

1. Advancing the Christian faith

A core element in our Sunday morning gatherings is teaching from the Bible, both for adults and children. Teaching and Bible study also take place in our various midweek small groups and youth groups. One of our principal purposes in all we do is to reach out with the good news of Jesus to those outside the church, through personal conversations and occasional public events.

2. Relieving sickness and financial hardship etc

We provide loving, practical help to those in need, and some financial support for individuals through our hardship fund. We support, both financially and through the practical help of members, our local food banks and a number of other local organisations which serve those in need.

3. Advancing education

Education is a key feature of our church meetings, small groups and youth work. Our members also practically support the work of Prison Fellowship. We support, both financially and through the practical help of members, a number of other local organisations, which serve the education of people of all ages and stages in life.

Public benefit

The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and performance

Hope Church meets as two thriving, growing congregations in two locations. Although we met online, as a single church congregation, during lockdown periods (during the COVID-19 pandemic), we fully returned to in-person meetings this year. Our usual range of activities took place including craft activities, children’s clubs, Easter and Christmas community events, as well as family focused activities. We also maintained support for local individuals, families, and organisations financially as well as through inter-personal connections.

To meet the teaching, pastoral and practical needs of the church, as of March 31, 2023, we were employing Jon Piper and Phillip Johnston full time, Ralph Buckingham for three days per week and Alison Godfrey, as the Church Administrator, two days a week.

Page 3

HOPE CHURCH NETWORK

TRUSTEES' REPORT (CONTINUED)

1. Advancing the Christian faith

The reason for our gathering on Sunday mornings is to practice the Christian faith as a body of people, including teaching from the Bible, both for adults and children. Our teaching included a slow progression through ‘The Sermon on the Mount’, as well as 1 Corinthians 13, Advent, Ezra-Nehemiah and the Psalms. Our intention was to affirm our unity, within the Kingdom of God, while we also consulted with the congregations on the restructure of the church and greater separation.

2. Relieving sickness and financial hardship etc

Hope’s pastoral care work adapted to the changing needs of the congregation, as we experienced bereavement, poverty and mental health problems within the church and more complex needs in the wider community. Elders and other members of the church continued to commit to meeting together with those in need, offering counsel, as well as practical help and caring in creative ways. As our congregations have grown in recent years, so have the complexity of the needs encountered in the community. In response, our use of the ‘hardship fund’ (caring for the practical needs of our congregations) has developed.

3. Advancing education

In addition to the whole-church teaching provided on Sunday mornings, our young people and children are taught through the provision of small groups. These groups and activities were designed to develop knowledge and ownership of the Christian faith for the children and young people in our community. Some of our young people also attended larger ‘festivals’, designed to help them develop in faith and connectedness with the wider church. Our house groups continued to meet, as a means of continuing normal, Christian education through Bible study and discussion.

Financial review

Income for the year amounted to £246,522 (2022: £236,926) and expenditure £216,397 (2022: £254,050). The General fund balance at the end of the year was £71,961.

Principal funding sources

Principal source of funds was giving by members and attenders of Hope Church.

Policy on reserves

The policy of holding a Missions and Staffing Reserve was maintained during the year to cover 6 months’ expenditure for Mission and 3 months’ expenditure for Staffing and the balance was adjusted to reflect that at the end of the year. This Designated fund of £43,759 was held wholly in cash. No reserve/fund was in deficit at the year end and all other Restricted and Designated funds (totalling £17,485) were held wholly in cash.

Page 4

HOPE CHURCH NETWORK

TRUSTEES' REPORT (CONTINUED)

How expenditure supports key activities of the charity

A substantial proportion of our income was distributed to Mission Partners whom we judge to be advancing our aims in the UK and other parts of the world. At the end of the period, we were employing two full-time elders and one part-time Church Worker to ensure time was available for the promotion of the church’s main activities, including efficient administration, co-ordination of activities, and provision of information. We were also employing a part-time administrator (two days a week) to assist the Trustees in providing efficient administration. Other significant expenditure relates to the facilitation of our meetings and teaching activities.

The church offered assistance for those of any age, but particularly younger people, attending training courses to develop their knowledge and skills in areas consonant with the aims and Statement of Faith of the church.

The church was renting a building to provide space for church meetings, the paid workers and storage of materials and documents.

Investment policy and objectives

Monies were held with CAF Bank in a mix of current and short-term deposit accounts, given the climate of very low interest rates. This enables ease of access to funds and a cautious attitude to risk. In addition to our account with CAF Bank, we also had an account with Shawbrook Bank in order to maximise income on such accounts, within the security of the Financial Services Compensation Scheme.

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.

Page 5

HOPE CHURCH NETWORK

TRUSTEES' REPORT (CONTINUED)

Statement of Responsibilities

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

The law applicable to charities 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The annual report was approved by the Trustees of the charity on .................... and signed on its behalf by:

......................................... Jonathan Piper Trustee

Page 6

HOPE CHURCH NETWORK

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HOPE CHURCH NETWORK

I report to the Trustees on my examination of the accounts of Hope Church Network for the year ended 31 March 2023.

Responsibilities and basis of report

As the charity Trustees of Hope Church Network you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Hope Church Network's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of Hope Church Network as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF

Date:.............................

Page 7

HOPE CHURCH NETWORK

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Note
Unrestricted
funds
£
Income and Endowments from:
Donations and legacies
2
228,696
Charitable activities
3
1,919
Investment income
4
549
Other income
929
Total income
232,093
Expenditure on:
Charitable activities
5
203,862
Net
income/(expenditure)
28,231
Net movement in funds
28,231
Reconciliation of funds
Total funds brought
forward
90,668
Total funds carried
forward
13
118,899		 Restricted
funds
£
14,367
-
62
-
14,429
12,535
1,894
1,894
12,412
14,306		 Total
2023
£
243,063
1,919
611
929
246,522
216,397
30,125
30,125
103,080
133,205		 Total
2022
£
235,008
1,529
389
-
236,926
254,051
(17,125)
(17,125)
120,205
103,080

The notes on pages 10 to 20 form an integral part of these financial statements. Page 8

HOPE CHURCH NETWORK

BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Tangible assets
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: Amounts falling due within one year
10
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
13		 2023
£
1,014
1,014
4,108
128,922
133,030
(839)
132,191
133,205
14,306
118,899
133,205		 2022
£
1,341
1,341
11,615
100,524
112,139
(10,400)
101,739
103,080
12,412
90,668
103,080

The financial statements on pages 8 to 20 were approved by the Trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... Jonathan Piper Trustee

The notes on pages 10 to 20 form an integral part of these financial statements. Page 9

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

Hope Church Network meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

Going concern

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Gift aid

Incoming resources from tax reclaims are included in the SOFA during the same period as the gift to which they relate.

Interest receivable

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

Page 10

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

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.

Tangible fixed assets

Individual fixed assets costing £250 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Furniture and equipment

Depreciation method and rate 25% on cost

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.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 11

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

Liabilities

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.

Fund structure

Unrestricted income funds are general funds that are available for use at the Trustees discretion in furtherance of the objectives of the charity.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into the respective employees’ pension funds.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 12

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

2 Income from donations and legacies

Unrestricted
funds
General
£
Donations and legacies;
Donations
192,627
Gift aid reclaimed
36,069
228,696
3 Income from charitable activities

Camp and youth activities
4 Investment income
Unrestricted
funds
General
£
Interest receivable and
similar income;
Interest receivable on
bank deposits
549		 Restricted
funds
£
14,367
-
14,367
Unrestricted
funds
General
£
1,919
Restricted
funds
£
62		 Total
2023
£
206,994
36,069
243,063
Total
2023
£
1,919
Total
2023
£
611		 Total
2022
£
203,520
31,488
235,008
Total
2022
£
1,529
Total
2022
£
389

Page 13

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

5 Expenditure on charitable activities

Unrestricted funds
Restricted
Note
Designated
£
General
£
funds
£
Policy/Oversight group
-
1,109
-
Mission and service
partners
-
25,444
10,745
Service and outreach
-
2,127
-
Sunday gatherings
-
14,348
-
Pastoral care
-
1,688
-
Hardship
921
-
840
The Ryan Fund
-
-
950
Small groups and camp
-
3,122
-
Children and youth
-
2,719
-
Advertising
-
200
-
Church building
-
13,199
-
Communications
-
435
-
Software and systems
-
1,268
-
Insurance
-
978
-
Professional services
-
1,812
-
Training
-
-
-
Bank charges
-
452
-
Miscellaneous
-
1,436
-
Independent
examination
-
840
-
Depreciation
-
785
-
Staff costs
7
-
130,979
-
921
202,941
12,535		 Total
2023
£
1,109
36,189
2,127
14,348
1,688
1,761
950
3,122
2,719
200
13,199
435
1,268
978
1,812
-
452
1,436
840
785
130,979
216,397		 Total
2022
£
1,335
28,168
1,419
9,433
924
9,136
1,500
3,113
997
44
60,015
255
888
949
1,045
40
213
2,227
915
670
130,765
254,051

6 Trustees remuneration and expenses

Three Trustees received remuneration amounting to £107,830 (2022 - £100,015) and benefits in kind in the form of pension contributions amounting to £5,391 (2021 - £5,001) during the year as employees of the charity.

The only other payments made to the Trustees, or any person connected with them, consisted of reimbursements of expenditure incurred on behalf of the charity in furthering the charity's objects.

Page 14

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

7 Staff costs

The aggregate payroll costs were as follows:

7 Staff costs
The aggregate payroll costs were as follows:
Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Redundancy		 2023
£
118,188
6,882
5,909
-
130,979		 2022
£
112,837
6,384
5,642
5,902
130,765

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

Activities in furtherance of charity's objects
Management and administration		 2023
No
3
1
4		 2022
No
3
1
4

No employee received emoluments of more than £60,000 during the year.

Page 15

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

8 Tangible fixed assets

Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
9 Debtors
Trade debtors
Prepayments
Accrued income
10 Creditors: amounts falling due within one year
Trade creditors
Accruals		 Furniture
and
equipment
£
17,663
458		 Total
£
17,663
458
18,121
16,322
785
17,107
1,014
1,341
2022
£
3,540
525
7,550
18,121
16,322
785
17,107
1,014
1,341
2023
£
-
-
4,108
4,108
2023
£
-
839
839
11,615
2022
£
9,650
750
10,400

Page 16

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

11 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

follows:
Land and buildings
Within one year
Between one and five years		 2023
£
6,000
8,500
14,500		 2022
£
6,000
14,500
20,500

12 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to - £5,909 (2022 £5,642).

Page 17

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

13 Funds

Unrestricted funds
General
General Funds
Designated
Hardship fund
Reserves for Missions and
Staffing
Total unrestricted funds
Restricted funds
The Ryan fund
Hardship fund
Young family fund
Visa fund
Total funds		 Balance at
1 April
2022
£
42,809
4,100
43,759
47,859
90,668
9,168
719
2,525
-
12,412
103,080		 Incoming
resources
£
232,093
-
-
-
232,093
62
121
-
14,246
14,429
246,522		 Resources
expended
£
(202,941)
(921)
-
(921)
(203,862)
(950)
(840)
-
(10,745)
(12,535)
(216,397)		 Balance at
31 March
2023
£
71,961
3,179
43,759
46,938
118,899
8,280
-
2,525
3,501
14,306
133,205

Page 18

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

Unrestricted funds
General
General Funds
Designated
Hardship fund
Reserves for Missions
and Staffing
Total unrestricted
funds
Restricted funds
The Ryan fund
Hardship fund
Mission fund
Building fund
Young family fund
Total funds		 Balance
at 1 April
2021
£
55,793
110
50,152
50,262
106,055
10,625
3,525
-
-
-
14,150
120,205		 Incoming
resources
£
200,258
-
-
-
200,258
43
750
3,000
30,350
2,525
36,668
236,926		 Resources
expended
£
(213,065)
(2,580)
-
(2,580)
(215,645)
(1,500)
(3,556)
(3,000)
(30,350)
-
(38,406)
(254,051)		 Transfers
£
(177)
6,570
(6,393)
177
-
-
-
-
-
-
-
-		 Balance
at 31
March
2022
£
42,809
4,100
43,759
47,859
90,668
9,168
719
-
-
2,525
12,412
103,080

Page 19

HOPE CHURCH NETWORK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 (CONTINUED)

14 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets		 Unrestricted funds
General
£
Designated
£
1,014
-
71,786
46,938
(839)
-
71,961
46,938
Unrestricted funds
General
£
Designated
£
1,341
-
51,868
47,859
(10,400)
-
42,809
47,859		 Restricted
funds
£
-
14,306
-
14,306
Restricted
funds
£
-
12,412
-
12,412		 Total funds
at 31
March
2023
£
1,014
133,030
(839)
133,205
Total funds
at 31
March
2022
£
1,341
112,139
(10,400)
103,080

Page 20