REGISTERED COMPANY NUMBER: 12365171 (England and Wales) REGISTERED CHARITY NUMBER: 1189356
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
FOR
DIVINE RENOVATION UK (A COMPANY LIMITED BY GUARANTEE)
Hartley Fowler LLP Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU
DIVINE RENOVATION UK
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
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Page
Report of the Trustees 1 to 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8 to 14
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DIVINE RENOVATION UK (REGISTERED NUMBER: 12365171)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
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 2023. 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 objects of the Charity are to advance the Christian faith, particularly but not exclusively through education in the subjects of religion and church leadership including the areas of evangelism and missionary work, via formal education, conferences, online content and provision of grants to individuals who wish to attend training activities.
Significant activities
Divine Renovation UK provides parishes across the United Kingdom with missional support focused on building strong teams and creating a culture of evangelization. Over the past several years, the UK has seen incredible growth in the number of pastors who've taken on the challenge of parish renewal. Our team in the UK supports pastors through events and the formation of a strong Catholic community among parishes in the region.
Public benefit
In planning the activities of the charity the trustees have considered the Charity Commission's guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The objects of the charity Divine Renovation UK as stated in our Articles of Association are the advancement of the Christian faith and the advancement of education. Specifically, Divine Renovation Ministry inspires, connects, and equips Catholic parishes through events, conferences, speaking engagements, resources including webinars, podcasts and books, and training/coaching all designed to help parishes make and form Christian disciples. These disciples, in turn, transform their local neighbourhoods and communities through works of service.
In 2023, the charity related to 960 Catholic parishes in England, Scotland, and Wales. These parishes accessed or downloaded our resources or attended events in person or online. We connected with 552 Catholic priests, the main leaders of these parishes. We coached 111 parishes online either in groups or 1: 1.
Online Events
Online events are designed to inspire Catholic parishes that change is possible, that they can develop an outward-facing posture, and that they can impact their local community with the Good News of Jesus Christ. In 2023, we hosted 7 online events attended by 756 unique registrants (153 priests, 603 lay people and 291 parishes represented).
In Person Events
Through in person events, the charity connects parishes to each other in order to consolidate the learnings from online coaching and to create a forum in which they are able to share with each other their successes and learnings. Through these events, we create communities of practice which enable an accelerated pace of change.
10 in-person events were held around the UK in 2023 comprising of priests' lunches, connect events, a priests' retreat and an open house event. Events were held in the following locations: Brighton, Windsor, Wakefield, Edinburgh, Inverness, York, Swansea, Northampton, London and Liverpool. 273 people attended (comprising 109 priests, 164 lay people and representing 121 parishes).
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DIVINE RENOVATION UK (REGISTERED NUMBER: 12365171)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
Coaching
Parishes in coaching increased from 94 parishes in January 2023 to 111 parishes in December 2023. Parishes are not charged any fees for coaching and are enabled to access it through the generous support of donors. Coaching consists of short series of group coaching on different topics (e.g. getting started with parish renewal; using metrics to manage growth in your parish; preaching; the Sunday experience) and also of bespoke bundles of 1:1 coaching. In the latter form, parishes are offered a short 'bundle' of 3 coaching sessions on a specific topic, e.g. forming vision for your parish; or building your leadership team. For a certain group of parishes whose journey towards mission is at a faster pace, we offer ongoing 1:1 coaching: normally 20 sessions across a 12-month period.
In 2023, 86 priests had completed initial group coaching (Kickstart), 36 had completed subsequent group coaching, and 15 were in a 1: 1 coaching relationship.
In addition to coaching, Divine Renovation UK offers parishes the assistance of a Relationship Guide, who checks in with the parish at least every 3 months. The road towards becoming missional is commonly found to be extremely difficult, so the assistance of a Guide who has 'from the trenches' experience of leading a parish, and who can be used as a sounding board for working through problems can be extremely valuable. This service enables a parish to maintain momentum and provides some accountability to the priest and leadership team.
FINANCIAL REVIEW
Financial position
At 31 December 2023 the charity had reserves of £45,958 (2022 £7,230). The charity reported a surplus of £38,728 (2022 deficit of (£26,187)).
Reserves policy
Over the past few years, the Charity has operated without reserves due to the fact that the majority of the funds it accumulated were spent on charitable activities.
As the Charity relies upon donations and grants from various sources each year, the Trustees are cognizant of the fact that reserve funds may be needed to give the Trustees time to take action if income falls below expectations. While the Charity has not been in a position to build reserves to date, it aspires to build unrestricted general funds equal to the average three months operating expenses each year. To do this, the Charity is investing more time in development activities by applying for additional grants during the year and developing relationships with donors. This targeted reserve is reviewed on an annual basis to determine if the targeted level of reserves needs to be amended in light of changing funding, financial climate and other risks.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is constituted as a company limited by guarantee and was incorporated on 16 December 2019. The charitable company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £1
Recruitment and appointment of new trustees
At Divine Renovation, UK - the selection and recruitment of new board members is a critical task that requires careful consideration. We begin by reflecting on the skills and talents that are needed and then develop a skills matrix to identify potential gaps. We brainstorm with other board members to expand our reach, and we use discretion to seek additional information and advice on potential candidates.
Once we have a shortlist of candidates, we extend invitations and have a personal meeting to discuss the organization's current state, the candidate's strengths, and their potential contribution. Orientation materials are provided, along with introductions to current board members. New members are encouraged to ask questions and share their thoughts on discussed issues. With this thoughtful selection process and thorough orientation, new board members become valuable assets to the organization. Our board members met quarterly this year. Meetings were held virtually for the most part, with the exception of one in-person meeting.
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DIVINE RENOVATION UK (REGISTERED NUMBER: 12365171)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
STRUCTURE, GOVERNANCE AND MANAGEMENT
Organisational structure
The charitable company is governed by its trustee board which is responsible for setting the strategic direction of the organisation and the policy of the charity. The trustees carry the ultimate responsibility for the conduct of the charity and for ensuring that it satisfies its legal and contractual obligations. The trustee board meets at least quarterly and there may be additional meetings of appropriate members or groups as required. The day-to-day operation of the organisation has been delegated to the Executive Director and other staff and volunteers, who are key to providing the services offered by the charity.
Wider network
The charity is part of a wider network of charitable organisations with similar objects, operating worldwide and in particular, the USA, Canada, Australasia and Germany.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
12365171 (England and Wales)
Registered Charity number
1189356
Registered office
Divine Renovation Ministry UK 5-7 Cromwell Road London SW7 2HR
Trustees
D J O'Rourke -President Of Divine Renovation Ministry E Alberto - Director E Davies - Director C J Purslow - Director O Roylance-Smith - Director
Executive Director
Hannah Vaughan-Spruce
Independent Examiner
Hartley Fowler LLP Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU
Bankers
National Westminster Bank plc South Kensington Station PO Box NO592 18 Cromwell Place London SW7 2LB
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DIVINE RENOVATION UK (REGISTERED NUMBER: 12365171)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Divine Renovation UK 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.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 26 January 2024 and signed on its behalf by:
E Davies - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF DIVINE RENOVATION UK
Independent examiner's report to the trustees of Divine Renovation UK ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2023.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act 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; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
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.
Jonathan Askew
Hartley Fowler LLP Chartered Accountants 4th Floor Tuition House 27-37 St George's Road Wimbledon London SW19 4EU
12 August 2024
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DIVINE RENOVATION UK
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted Restricted fund funds Notes £ £ INCOME AND ENDOWMENTS FROM Donations and legacies 81,211 - Charitable activities 3 Missional support 163,156 - Total 244,367 - EXPENDITURE ON Charitable activities Missional support 205,639 - NET INCOME/(EXPENDITURE) 38,728 - RECONCILIATION OF FUNDS Total funds brought forward 7,230 - TOTAL FUNDS CARRIED FORWARD 45,958 - |
2023 Total funds £ 81,211 163,156 244,367 205,639 38,728 7,230 45,958 |
2022 Total funds £ 48,800 159,974 208,774 234,961 (26,187) 33,417 7,230 |
|---|---|---|
The notes form part of these financial statements
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DIVINE RENOVATION UK (REGISTERED NUMBER: 12365171)
BALANCE SHEET 31 DECEMBER 2023
| Notes CURRENT ASSETS Debtors 10 Cash at bank CREDITORS Amounts falling due within one year 11 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 13 Unrestricted funds TOTAL FUNDS |
2023 £ 61,798 43,310 105,108 (59,150) 45,958 45,958 45,958 45,958 45,958 |
2022 £ 2,210 20,491 22,701 (15,471) 7,230 7,230 7,230 7,230 7,230 |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each 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 charitable company.
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 26 January 2024 and were signed on its behalf by:
E Davies - Trustee
O Roylance-Smith - Trustee
The notes form part of these financial statements
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DIVINE RENOVATION UK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1. GENERAL INFORMATION
The charitable company is incorporated and domiciled in England and Wales. The address of its registered office is 5-7 Cromwell Road, London SW7 2HR. The registered number of the company is 12365171. The registered number of the charity is 1189536.
The financial information presented is for the year ended 31 December 2023 and 31 December 2022. The financial information is presented in sterling.
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.
a) Preparation of the accounts on a going concern basis
The financial statements have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves, the financial position, future plans and the expected level of income and expenditure for 12 months from authorising these financial statements.The trustees consider that there are no material uncertainties about the charity's ability to continue as 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.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Support Services and Volunteers
The Charity receives support from its sole guarantor, Divine Renovation Ministry, in the form of payroll administration, budgeting and accounting, information technology, human resources, finance and other program and services. In addition, the Charity relies on the contribution of unpaid volunteers in carrying out its activities. The costs of the support services provided by Divine Renovation Ministry as well as the value of the contributions by volunteers are not included in these accounts as they cannot be reliably measured.
Governance costs
Governance costs include those incurred in the governance of the charity and are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities. Governance costs include the production of the statutory accounts and the independent examination of the charity.
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.
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DIVINE RENOVATION UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
2. ACCOUNTING POLICIES - continued
Fund accounting
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.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
3. INCOME FROM CHARITABLE ACTIVITIES
| 2023 Activity £ Conference Revenue Missional support 5,663 Preaching on Purpose Sale Missional support 1,103 Grants Missional support 156,390 163,156 Grants received, included in the above, are as follows: 2023 £ Divine Renovation Ministry 150,000 Kristos Media - Small grants 6,390 156,390 4. GRANTS PAYABLE 2023 £ Missional support 3,810 Grants payable represents donations made to other organisations. 5. SUPPORT COSTS Governance Finance costs £ £ Missional support 678 6,500 |
2022 £ 7,982 369 151,623 159,974 2022 £ 120,060 31,563 - 151,623 2022 £ 2,940 Totals £ 7,178 |
|---|---|
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DIVINE RENOVATION UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
5. SUPPORT COSTS - continued
Support costs, included in the above, are as follows:
Finance
| Finance | |
|---|---|
| Bank charges | 2023 2022 Missional Total support activities £ £ 678 696 |
| Governance costs Independent examiner's fees Other governance costs |
2023 2022 Missional Total support activities £ £ 4,829 3,813 1,671 - |
| 6,500 3,813 |
6. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.
7. STAFF COSTS
| Wages and salaries Social security costs Other pension costs |
2023 £ 138,280 10,318 4,041 |
2022 £ 134,884 10,100 4,133 |
|---|---|---|
| 152,639 | 149,117 | |
| The average monthly number of employees during the year was as follows: Management and support The number of employees whose employee benefits (excluding employer pension £60,001 - £70,000 £70,001 - £80,000 |
2023 3 costs) exceeded 2023 - 1 1 |
2022 4 £60,000 was: 2022 1 - 1 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
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DIVINE RENOVATION UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
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8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
fund funds funds
£ £ £
INCOME AND ENDOWMENTS FROM
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Donations and legacies 48,800 48,800
Charitable activities
Missional support 128,411 31,563 159,974
Total 177,211 31,563 208,774
EXPENDITURE ON
Charitable activities
Missional support 203,398 31,563 234,961
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NET INCOME/(EXPENDITURE) (26,187) (26,187)
RECONCILIATION OF FUNDS
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Total funds brought forward 33,417 33,417
TOTAL FUNDS CARRIED FORWARD 7,230 - 7,230
9. INDEPENDENT EXAMINATION
The independent examiner's fee consisted of:
2023 2022
£ £
Independent examination 1,650 1,550
Preparation of statutory financial statements 860 800
Other services including irrecoverable VAT 1,605 1,050
Prior year underprovision 714 413
4,829 3,813
10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade debtors 5,247 -
Gift Aid recoverable 7,900 2,210
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Prepayments 48,651
61,798 2,210
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DIVINE RENOVATION UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
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2023 2022
£ £
Trade creditors 300 3,360
Social security and other taxes 4,225 8,673
Other creditors 930 38
Accruals 4,115 3,400
Deferred income 49,580 -
59,150 15,471
£ £
Deferred Income
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Balance at 1 January 2023 31,563
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Amounts released to incoming resources (31,563)
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Amounts deferred in the year 49,580
Balance at 31 December 2023 49,580 -
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Deferred income comprises income received during the year which relates to the next financial year.
12. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Unrestricted Restricted fund funds £ £ Current assets 105,108 - Current liabilities (59,150) - 45,958 - |
2023 Total funds £ 105,108 (59,150) 45,958 |
2022 Total funds £ 22,701 (15,471) 7,230 |
|---|---|---|
Comparatives for net assets between funds
| Comparatives for net assets between funds | ||
|---|---|---|
| Unrestricted | Restricted | |
| Current assets Current liabilities |
funds £ 22,701 (15,471) 7,230 |
funds £ - - - |
| MOVEMENT IN FUNDS Unrestricted funds General fund TOTAL FUNDS |
13. MOVEMENT IN FUNDS
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DIVINE RENOVATION UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
13. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Incoming resources £ Unrestricted funds General fund 244,367 |
Resources expended £ (205,639) |
Movement in funds £ 38,728 |
|---|---|---|
| TOTAL FUNDS 244,367 |
(205,639) | 38,728 |
| Comparatives for movement in funds At 1/1/22 £ Unrestricted funds General fund 33,417 |
Net movement in funds £ (26,187) |
At 31/12/22 £ 7,230 |
| TOTAL FUNDS 33,417 |
(26,187) | 7,230 |
| Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 177,211 Restricted funds Kristos Media 31,563 |
Resources expended £ (203,398) (31,563) |
Movement in funds £ (26,187) - |
| TOTAL FUNDS 208,774 |
(234,961) | (26,187) |
14. ULTIMATE PARENT COMPANY
The sole guarantor of the company is the Divine Renovation Ministry, correspondence address 26 Union Street Bedford, Suite 305 Bedford Nova Scotia, Nova Scotia, Canada, B4A 2B5.
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DIVINE RENOVATION UK
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023
15. OTHER FINANCIAL COMMITMENTS
The charity is committed to the payment of £56,308 in the next financial year for costs in connection with running the Catholic Parish Summit.The trustees are confident that adequate resources will be available to meet this commitment when it falls due.
16. RELATED PARTY DISCLOSURES
Key management remuneration
| Key management remuneration | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Salaries and other short-term benefits | 78,864 | 69,316 |
| Post-employment benefits | 2,112 | 1,850 |
| 80,976 | 71,166 | |
Key management includes certain senior employees who have authority and responsibility for planning and controlling the activities of the charity.
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