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2020-12-31-accounts

Charity Registration No. 1184125

Company Registration No. 11599219 (England and Wales)

KINGDOMCITY UNITED KINGDOM LIMITED

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

KINGDOMCITY UNITED KINGDOM LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr A Dique
Mr E J R Henden
Mr M A Varughese
Mr O Jacobsson
Charity number 1184125
Company number 11599219
Principal address Kingdomcity
6-8 Long Lane
Barbican
London
EC1A 9HF
Registered office Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Accountants and Independent John Caladine FCCA CTA FCIE
examiner
Caladine Limited
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Solicitors Pothecary Witham Weld
84 Eccleston Square
Pimlico
London
SW1V 1PX

KINGDOMCITY UNITED KINGDOM LIMITED

CONTENTS

Page
Trustees' report 1 - 3
Statement of Trustees' responsibilities 4
Independent examiner's report 5
Statement of financial activities 6
Statement of financial position 7
Notes to the financial statements 8 - 15

KINGDOMCITY UNITED KINGDOM LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Church's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The Church's objects are:

There has been no change in these during the period.

Activities undertaken in order to achieve our objectives are as follows:

We are continually looking to reach out to more people and share with them the message of Jesus Christ and helping to connect people who are feeling isolated and lonely.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Church should undertake.

KINGDOMCITY UNITED KINGDOM LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance

2020 was a very different and dificult year, despite this we have still achieved goals that we set in 2019 for growth both numerically and financially.

These include: retention of staff, consistent giving, maintaining our current lease without any external need for assistance, growth of our connect groups, starting of new connect groups in new areas in East London, new people joining across our connect groups and online services, support for our members in terms of encouragement, prayer, meeting physical needs, support networks, celebrating milestones and special occasions, mental health awareness, establishing an online presence through YouTube and social media.

We have had to pivot our original plans for the year moving everything online but through God's grace we have managed to:

Financial review

Total income for the period amounted to £291,683 with expenditure of £287,864 leading to an overall surplus on the General fund for the year of £3,819.

All income was unrestricted, unrestricted funds carried forward amounted to £102,431

The unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three to six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Church’s current activities while consideration is given to ways in which additional funds may be raised.

The Trustees has assessed the major risks to which the Church is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The Church is a company limited by guarantee incorporated on 2 October 2018, registration no. 11599219 and is registered with the Charity Commission in England and Wales, registration no. 1184125.

The Church is overseen by the Trustees with day to day running delegated to the Lead Pastor. The charity is one of the local Churches accepted by the Apostolic Oversight of Kingdomcity Global Limited. As such the Apostolic Oversight retain the ultimate spiritual authority over all matters within local Churches.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr A Dique Mr E J R Henden Mr M A Varughese Mr O Jacobsson

Prospective trustees are recommended for appointment by the local Lead Pastor. All trustees must meet specific character requirements to be appointed to the office of trustee, best evidenced by the Lead Pastor’s observations of the proposed trustee’s conduct within and outside of Church life.

KINGDOMCITY UNITED KINGDOM LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Once the trustees have considered the recommendation, the trustee will proceed to nominate the proposed trustee for appointment, to the Senior Leader. Should the Senior Leader approve of the appointment in principle, the Senior Leader will nominate the trustee for appointment to the board. The trustees will collectively discuss the appointment and table the same for the next board meeting, at which the appointment will be recorded by ordinary resolution.

The Church is overseen by Kingdomcity Global Limited. The Directors of Kingdomcity Global Limited, also known as Apostolic Oversight, provide spiritual guidance, dispute resolution, etc. to the local Church. The Board is led by a Senior Leader who is also Chair. At a local level, Kingdomcity Global Limited is represented by having 2-3 Directors on each local Church Board, including the Senior Leader.

The Governance of Kingdomcity United Kingdom comprises of:

1. Board of Trustees

This comprises between at least 3 board members Board members are not employed by the local Church

Board members are responsible for confirming audit report (correctly reflecting financial statements) and for approving the Church budget

The Senior Leader is Chair of local Church board

2. Spiritual Oversight

This is undertaken by 3-5 Church members who are not employed by the local Church This group is also involved with major decisions

3. Executive Team

These are a group of 1-5 members, who are employed by the local Church

Collectively 1-3 above are referred to as the Eldership (members) of the local Church, who meet collectively for the AGM and as needed at other times.

Only executive team members can be paid a salary. Members are nominated by the Senior Leader and their appointment/dismissal confirmed by the board.

The Trustees' report was approved by the Board of Trustees.

..............................

Mr E J R Henden Trustee 29/06/2021 Dated: .........................

KINGDOMCITY UNITED KINGDOM LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

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

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Church and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

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

KINGDOMCITY UNITED KINGDOM LIMITED INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF KINGDOMCITY UNITED KINGDOM LIMITED I report to the Trustees on my examination of the financial statements of Kingdomcity United Klngdom Limiled Ilhe Church) for the year ended 31 December 2020. Re•pon•lbllltle• ba?Ig of r•port As the Trustees of the Church land also its directors for the purposes of cornpany lawl you are responslble for the preparation of the ffiD8IICI81 slalemenls in acC￿￿On¢0 with thè requiréments of the Companies Act 2006 Ilhe 2006 Act). Havlng satisfied myself that the financial slalemenls of thè Church are not r8quired lo be audited under Part 16 of thè 2006 Acl and are eligible for independent examination, I report In respect of my tsxaminalion of thè Church'5 fin3nci81 slalemen15 carried oul under section 145 of the Charities Act 2011 Ithe 2011 Act). In carrying out rny examination I have followed all the applicable Dilgctions given by lh• Charity Commission under section 14515llbl ol the 2011 Act. Ind•pend•nt 8xafflln•rf¥ •tatement Since the Church's gross income exceeded £250,OW your examiner musl be 8 member of a body li$led in sèction 145 of th8 2011 Act. I confirm Ihal l am qualified lo undertake the examination because l am 8 member of The As50cIBlion of Charte¥ed Certified Accountanls. whlch is one ol the listed bodies. I hava completed my 8xamination. I confimi that no matters have come to My attention in connection wllh the examlnalion givlng me cause lo believe th81 in any maleri81 r8spect'. accounting records were not kept in respect ol the Church as r•qulred by section 386 of the 2008 Acl.. or Ihe flnancial slatem8nls do not accord with those rè¢ord8', or the financial statements do not comply with the accounts'ng requlr8menls of sgclion 398 of the 2006 Act oth8r than any requir8ment that the accounts give a true and fair view which 15 not a matter considered as part ol an Indepertdenl examinalion., or the Ilnancial slalemenl$ have not been prepared In accordance wilh the methods and princ¥ples of the Statement of Recommended Practice for accounting and rèporting by charities applicablg lo ¢harili8S preparing their accounts in ac￿rdanCe wilh Ihe Financial Reporting Standard bpplicable in the UK and Republie of Ireland IFRS 1021, I have no concern8 and have come across no other matter5 in connoclion with Ihe examination lo wh￿h attention should be drawn in this report in Order lo enable a proper understanding of the finanaal stalements lo be reached. John Calad. e FCCA CTA FCIE Caladine Limited Chanlry House 22 Upperton Road Ea51boume Ea51 Sussex N21 IBF D8t8d'.

KINGDOMCITY UNITED KINGDOM LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Unrestricted
funds funds
2020 2019
Notes £ £
Income from:
Donations and legacies 3 291,683 368,344
Expenditure on:
Charitable activities 4 287,864 266,330
Other 8 - 3,402
Total resources expended 287,864 269,732
Net income for the year/
Net movement in funds 3,819 98,612
Fund balances at 1 January 2020 98,612 -
Fund balances at 31 December 2020 102,431 98,612

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

KINGDOMCITY UNITED KINGDOM LIMITED

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

2020
Notes
£
Fixed assets
Property, plant and equipment
9
Current assets
Trade and other receivables
10
95,979
Cash at bank and in hand
61,117
157,096
Current liabilities
11
(100,585)
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds
£
45,920
56,511
102,431
102,431
102,431
2019
£
25,451
50,379
75,830
(39,926)
£
62,708
35,904
98,612
98,612
98,612

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on .....................
25/06/2021
The financial statements were approved by the Trustees on .....................
25/06/2021
.............................. ..............................
Mr E J R Henden Mr O Jacobsson
Trustee Trustee

The financial statements were approved by the Trustees on .........................

Company Registration No. 11599219

KINGDOMCITY UNITED KINGDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Company information

Kingdomcity United Kingdom Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Chantry House, 22 Upperton Road, Eastbourne, East Sussex, BN21 1BF. The Church operates from premises at 6-8 Long Lane, Barbican, London, EC1A 9HF.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Church's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Church is a Public Benefit Entity as defined by FRS 102.

The Church has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Church. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Church has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

1.4 Income

Income is recognised when the Church is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Church has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Church has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

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.

KINGDOMCITY UNITED KINGDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies (Continued)

1.6 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Leasehold improvements 25% Straight line AV equipment 20- 33% Straight line Service equipment 15-50% Straight line IT equipment 33% Straight line Motor vehicles 20% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of non-current assets

At each reporting end date, the Church reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The Church 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.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Church is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

KINGDOMCITY UNITED KINGDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Critical accounting estimates and judgements

In the application of the Church’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Donations and gifts 291,683 368,344
Donations and gifts
Donations and Gifts 152,611 114,855
Gift Aid recovered 38,369 5,335
Special Offerings 47,020 45,479
Support from Kingdomcity Global Limited 53,683 202,675
291,683 368,344

KINGDOMCITY UNITED KINGDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

Staff costs
Depreciation and impairment
Church running expenses
Postage, printing and stationary
Travel, subsistence and accommodation
Small equipment and repairs
Licences and subscriptions
Vehicle maintenance
IT maintenance and general
Advertising and promotions
Consultation
Auditorium hire
Pastor's manse costs
Sunday service costs
Creative programmes
Guest ministry
MO mission support
Share of support costs (see note 5)
Share of governance costs (see note 5)
2020
£
31,286
18,574
3,201
201
2,136
1,488
552
3,336
33
-
-
21,225
28,603
1,526
95
275
26,632
139,163
142,777
5,924
287,864
2019
£
-
12,673
10,390
1,543
6,084
108
1,328
362
923
1,888
1,795
131,012
23,166
8,816
7,826
2,295
-
210,209
52,941
3,180
266,330

KINGDOMCITY UNITED KINGDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

5
Support costs
Insurance
Gain/ loss on foreign
exchange
Hub maintenance
Kingdomcity Global dues
Administration support
Bank charges
Online giving fees
Head office rental
Legal and professional
Accountancy and
independent
examination
Analysed between
Charitable activities
Support
costs
Governance
costs
£
£
1,544
-
5
-
40,232
-
18,074
-
7,200
-
347
-
462
-
74,913
-
-
3,884
-
2,040
142,777
5,924
142,777
5,924
Total
2020
£
1,544
5
40,232
18,074
7,200
347
462
74,913
3,884
2,040
148,701
148,701
Support
costs
Governance
costs
£
£
4,527
-
(244)
-
3,531
-
36,472
-
7,200
-
708
-
747
-
-
-
-
1,140
-
2,040
52,941
3,180
52,941
3,180
Total
2019
£
4,527
(244)
3,531
36,472
7,200
708
747
-
1,140
2,040
56,121
56,121

6 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Church during the year.

The Trustees donated an aggregate sum of £17,053 (2019: £20,303) to the Church during the period.

7 Employees

The average monthly number of employees during the year was:

2020 2019
Number Number
1 -

KINGDOMCITY UNITED KINGDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Employees (Continued)

Employment costs
Wages and salaries
Other pension costs
2020
£
30,375
911
31,286
2019
£
-
-
-

8 Other

Other
Total Unrestricted
funds
£
2020 2019
Net loss on disposal of tangible fixed assets - 3,402

9 Property, plant and equipment

Leasehold
improvements
AV
equipment
Service
equipment
IT
equipment
Motor
vehicles
£
£
£
£
£
Cost
At 1 January 2020
13,581
10,399
35,478
4,179
11,687
Additions
1,186
-
599
-
-
At 31 December 2020
14,767
10,399
36,077
4,179
11,687
Depreciation and
impairment
At 1 January 2020
326
1,782
6,251
1,724
2,532
Depreciation charged in
the year
3,687
3,023
8,147
1,379
2,338
At 31 December 2020
4,013
4,805
14,398
3,103
4,870
Carrying amount
At 31 December 2020
10,754
5,594
21,679
1,076
6,817
At 31 December 2019
13,254
8,617
29,227
2,455
9,155
Total
£
75,324
1,785
77,109
12,615
18,574
31,189
45,920
62,708

KINGDOMCITY UNITED KINGDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

10 Trade and other receivables

Trade and other receivables
Amounts falling due within one year:
Rent deposit
Prepayments and accrued income
2020
£
22,471
73,508
95,979
2019
£
20,771
4,680
25,451

11 Current liabilities

Current liabilities
Other taxation and social security
Other payables
Accruals and deferred income
2020
£
448
96,142
3,995
100,585
2019
£
-
36,086
3,840
39,926

12 Retirement benefit schemes

Defined contribution schemes

The Church operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Church in an independently administered fund.

The charge to statement of financial activities in respect of defined contribution schemes was £911 (2019 : £-).

KINGDOMCITY UNITED KINGDOM LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

13 Operating lease commitments

At the reporting end date the Church had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
2020
£
39,542
-
39,542
2019
£
74,912
39,542
114,454

14 Related party transactions

There were no disclosable related party transactions during the year.