## **ANNUAL REPORT AND FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED** **31ST JULY 2022** ## **REACH SOUTH** (Charitable Incorporated Organisation) ## **CHARITY REGISTRATION No: 1196451** REACH SOUTH (Charitable Incorporated Organisation) ## **CONTENTS** |LEGAL AND ADMINISTRATIVE INFORMATION|1| |---|---| |TRUSTEES’ REPORT|2 - 4| |BALANCE SHEET|5| |NOTES TO THE FINANCIAL STATEMENTS|6 - 12| REACH SOUTH (Charitable Incorporated Organisation) ## **LEGAL AND ADMINISTRATIVE INFORMATION** ## **CHARITY NUMBER** **CHARITY NUMBER** 1183897 **DATE OF REGISTRATION** 08 November 2021 **START OF FINANCIAL YEAR** 08 November 2021 **END OF FINANCIAL YEAR** 31 July 2022 **TRUSTEES AS AT 8[th] NOVEMBER 2021** J. A. Clifton F. E. O. Saer J. P. Shulver **LEGAL STATUS** Charitable Incorporated Organisation ## **GOVERNING INSTRUMENT** CIO Foundation Registered 8th November 2021 ## **OBJECTS** The advancement of the Christian faith in the United Kingdom and other parts of the world as the trustees determine, through the establishment of a partnership of evangelical churches cooperating to plant and resource new churches, recruit and support gospel workers, train members of the churches for ministry, and co-ordinate efforts and expenditure for the furtherance of the gospel by publications, assemblies, courses and otherwise. ## **CORRESPONDENCE ADDRESS** ## **PRIMARY BANKERS** Burgess Road Library Burgess Road Southampton SO16 3HS CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4TA ## **INDEPENDENT EXAMINER** N/A ## Reach South Trustees Report - ## **OBJECTIVES AND ACTIVITIES** The purposes of Reach South are: The advancement of the Christian faith in the United Kingdom and other parts of the world as the trustees determine, through the establishment of a partnership of evangelical churches cooperating to plant and resource new churches, recruit and support gospel workers, train members of the churches for ministry, and co-ordinate efforts and expenditure for the furtherance of the gospel by publications, assemblies, courses and otherwise. When planning and reviewing the objectives of the activities of the Church, due consideration has been given to the Charity Commission’s general guidance on public benefit and, in particular, the specific guidance on charities for the advancement of religion. The charity set out to encourage and equip those leading and attending the churches that make up Reach South. For this reporting period the member churches were Christ Church Southampton, Cornerstone Church Portsmouth and Redeemer Winchester. Encouragement and equipping happened through: - Monthly meetings between the leaders of member churches - Training events for all those who attend members churches - An annual celebration event for all those attending member churches ## **ACHIEVEMENTS AND PERFORMANCE** ## **Monthly Meetings For Church Leaders:** Each month, the pastors of the member churches (also the trustees of Reach South) met to provide updates, offer support and advice and discuss plans for future Reach South activities. These meetings are a key part of the Reach South charity – they ensure the member churches work effectively together to meet the aims of the charity. ## **Annual Big Day Out:** Each year, all those who attend the member churches, gather for the Big Day Out (BDO). The BDO is a day of celebration and equipping. In 2022, the BDO took place on Sunday 12 June. Over 500 attended and enjoyed teaching sessions, a hog roast and games and activities. One highlight from the day was the commissioning of Trinity Church Salisbury; a church plant initiated and supported by Reach South churches. ## **Training Events:** On Saturday 30 April, a training event was held for musicians from member churches. The purpose of the event was to share best practice on how to play music in order to serve congregational singing. The event was well attended, with people from each church. ## **Church Planting:** Back in 2021 (before the reporting period) the trustees explored the possibility of Reach South initiating another church plant. They undertook research into where there was greatest need and greatest opportunity and settled upon Salisbury. During the reporting period, the Trustees continued to raise funds for the plant; they appointed a pastor to lead the plant and built a team to be part of the new church. The hope was to have everything in place for a launch in Autumn 2022. ## **The Equip Course:** In December 2021 the trustees began discussing the possibility of setting up a training course that would equip men and women with Bible-handling and Bible-teaching skills. The course became known as The Equip course and over a six-month period the trustees appointed a course leader to oversee the different elements of the teaching. The Equip course will take place weekly on a Tuesday in Southampton and be open to anyone. The launch date for the course is Autumn 2022. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** Reach South as a legal entity is a Charitable Incorporated Organisation. It is governed by a constitution dated 16 September 2021. Registered Charity status was granted on 8 November 2021 under Registration Number 1196451. The Charity is governed by a board of Trustees who also constitute the members of the Charity. They meet regularly (normally monthly) to set policy and review the activities of Reach South. Trustees are nominated and appointed by existing trustees when they have satisfied themselves of the need of further trustees and the qualifications – spiritual and otherwise – of the person proposed for the role. All trustees serve without remuneration in their capacity as Trustees. ## **FINANCE** Total receipts over the reporting period (1 September 2021 – 31 August 2022) amounted to £1,797.42 over the year. Total outgoings were £24. The balances carried forward into September 2022 totalled £1773.42. A full financial report is appended. This is the first year of the charity’s activities and beyond initial seed funding from the member churches, and some income from the BDO event, there was limited activity. A reserves policy exists whereby – in normal circumstances – cash reserves should be retained amounting to 3 months basic operating costs (such costs being estimated at a nominal 80% of the full current-year charity budget.) In the reporting period this target was met. It is anticipated that in the financial year (2022-2023) both incomings and outgoings will increase significantly as Reach South steps up charitable activities. ## **RESPONSIBILITIES OF THE TRUSTEES** The Trustees 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). The law applicable to charities in England and Wales 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 the financial statements the Trustees are required to: - select suitable accounting policies and apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on a going concern basis unless it is inappropriate to assume that the Charity will continue in operation. 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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the governing document. They 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 Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s websites. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. This report was approved by the Trustees of Reach South on 7 May, 2023 and signed on their behalf by: J. A. Clifton REACH SOUTH (Charitable Incorporated Organisation) ||**BALANCE SHEET**|**BALANCE SHEET**|**BALANCE SHEET**||||| |---|---|---|---|---|---|---|---| ||**AS AT 31 JULY 2022**||||||| ||||||||| ||||||||| ||||**TOTAL**||||| |||**Notes**|**2022**||||| ||||£||||| ||||||||| |**Fixed Assets**|||||||| ||Tangible Assets|**8**|||||| |**Total Fixed Assets**|||-||||| ||||||||| |**Current Assets**|||||||| ||Debtors & Prepayments|**9**|||||| ||Cash at Bank and in Hand|**10**|1,773||||| |**Total Current Assets**|||1,773||||| ||||||||| ||Creditors: Amounts fallingdue within oneyear|**11**|||||| ||||||||| |**NET CURRENT ASSETS**|||1,773||||| ||||||||| |**TOTAL ASSETS**less current liabilities|||1,773||||| ||||||||| ||||||||| |**NET ASSETS**|||**1,773**||||| ||||||||| |**Funds of the Charity**|||||||| ||General Funds||1,773||||| |**Total Funds**|||**1,773**||||| ||||||||| ||||||||| ||Approved bythe Trustees on: 12/05/2023||||||| ||||||||| ||Signed on their behalf byTrustee: Jonathan Clift|on|||||| ||||||||| ||||||||| ||||||||| ||||||||| REACH SOUTH (Charitable Incorporated Organisation) **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 JULY 2022** ## **1. BASIS OF PREPARATION** ## **1.1 Basis of Accounting** The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) - (Charities SORP - FRS102) and the Charities ~~Act 2011~~ The Charity meets the definition of a public benefit entity under FRS102 through the objectives as set out in the Trustees' Report. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes. ## **1.2 Assessment of Going Concern** Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. The trustees have prepared projections for more than 12 months from the signing of the accounts and are confident that the charity will be able to meet its financial obligations as they fall due in the forseeable future ## **2. ACCOUNTING POLICIES** ## **2.1 Income** Income is recognised in the period in which the charity becomes entitled to receipt, the amount receivable can be measured with reasonable certainty, and receipt is probable. For the most part, income is generally recognised when it is received. Income is only deferred when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period. Recoverable Gift Aid is recognised when the related donation is received. Gift aid that has not been recovered by the Balance Sheet date is included as a debtor. The Charity relies on volunteers to carry out many of its activities. However, in accordance with the SORP, the value of these services has not been included in these financial statements as they cannot be reliably measured. ## **2.2 Expenditure & Liabilities** Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. Expenditure, including irrecoverable VAT, is recognised when it is incurred or, if earlier, when a legal or constructive obligation for a payment arises provided that it is probable that settlement will be required and the amount of the obligation can be measured Governance costs are those costs associated with the governance arrangements which primarily relate to constitutional and statutory requirements and include the strategic planning processes that contribute to the future development of the charity. REACH SOUTH (Charitable Incorporated Organisation) ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022** Pension contributions are charged to the statement of Financial Activities as they become REACH SOUTH (Charitable Incorporated Organisation) ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 JULY 2022** ||REACH SOUTH
(Charitable Incorporated Organisation)|REACH SOUTH
(Charitable Incorporated Organisation)|REACH SOUTH
(Charitable Incorporated Organisation)||| |---|---|---|---|---|---| ||**NOTES TO THE ACCOUNTS**||||| ||**FOR THE YEAR ENDED 31 JULY 2022**||||| ||||||| ||||||| ||||||| |**2.3 Tangible Fixed Assets**|||||| ||||||| |Items purchased or donated for the charity's own use are capitalised when the cost of
purchased items, or the fair value of donated items, is more than £500 and the item is
expected to benefit the charity over more than one accounting period.|||||| ||||||| ||||||| |**3. INCOMING RESOURCES**|||||| ||||**2022**||| ||||**£**||| |**3.1 Incoming Resources from Generated Funds**|||||| ||||||| ||**Voluntary Income:**||||| ||Donations,Gifts & Offerings||1,500||| ||Gift Aid Tax Recovered||||| ||Grants||||| ||||||| ||||**1,500**||| ||||||| ||||||| |**3.2 Incoming Resources from Charitable Activities**|||||| ||||||| ||BigDayOut||297||| ||||||| ||||||| ||||||| ||||||| ||||||| ||||**297**||| ||||||| |**3.3 Other Incoming Resources**|||||| ||Bank & Other Interest||24||| ||||||| ||||**24**||| ||||||| REACH SOUTH (Charitable Incorporated Organisation) ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022** ||REACH SOUTH
(Charitable Incorporated Organisation)|REACH SOUTH
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(Charitable Incorporated Organisation)||| |---|---|---|---|---|---| ||**NOTES TO THE ACCOUNTS**||||| ||**FOR THE YEAR ENDED 31 JULY 2022**||||| ||||||| |**4. RESOURCES EXPENDED**|||||| ||||**TOTAL**||| |||**Notes**|**2022**||| ||||**£**||| |**4.1 Charitable Activities**|||||| ||||||| ||**Ministry Activities**||||| ||||||| ||||||| ||||||| ||||||| ||||||| ||||||| ||**Training Activites & External Costs**||||| ||||||| ||||||| ||||||| ||**Administrative Costs**||||| ||||||| ||||||| ||||||| ||||||| ||**Harship Fund**||||| ||||||| ||||**-**||| ||||||| |**4.2 Governance Costs**|||||| ||||||| ||Legal & Professional Fees||-||| ||||**-**||| ||||||| |**5. DETAILS OF CERTAIN LINES OF EXPENDITURE**|||||| ||||||| |**5.1 Trustee Expenses & Remuneration**|||||| ||||**2022**||| ||Number of trustees who werepaid expenses||||| ||Nature of the expenses||||| ||||||| ||||||| ||Total amountpaid||**-**||| ||||||| ||||||| ||||||| ||||||| ||||||| REACH SOUTH (Charitable Incorporated Organisation) ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022** ||REACH SOUTH
(Charitable Incorporated Organisation)|REACH SOUTH
(Charitable Incorporated Organisation)|REACH SOUTH
(Charitable Incorporated Organisation)||| |---|---|---|---|---|---| ||**NOTES TO THE ACCOUNTS**||||| ||**FOR THE YEAR ENDED 31 JULY 2022**||||| ||||||| |**5.2 Related Party Transactions**|||||| ||||||| |The only other payments made to the trustees or any person connected with them
consisted of reimbursements for items purchased on behalf of the Church in furthering|||||| ||||||| |**6. STAFF COSTS AND NUMBERS**|||||| ||||**2022**||| ||||**£**||| ||||||| ||||||| ||||||| ||||||| ||||||| ||||||| ||||||| ||||||| |Employees who were engaged in each of the followingactivities:|||||| ||||**TOTAL**||| ||||**2022**||| ||||||| ||Charitable Activities||||| ||||**-**||| ||||||| |No employees received emoluments in excess of £60,000(2020: None)|||||| ||||||| |**7. OPERATING LEASE COMMITMENTS**|||||| ||||||| |The commitments under non-cancellingoperatingleases and capital commitments as at:|||||| ||||||| ||||LAND &||| ||||BUILDINGS||| ||||£||| ||31st July2022:|Within 1year|||| |||After 1year|||| ||||||| ||31st July2021:|Within 1year|||| |||After 1year|||| ||||||| |**8. FIXED ASSETS**|||||| ||||**2022**||| ||||**Equipment**||| ||||**£**||| ||Cost|1st August 21|-||| ||Additions||||| ||Disposals||-||| ||Cost Value at|31st July22|-||| ||||||| ||Depreciation|1st August 21|-||| ||Charge||||| ||Disposal||-||| ||Depreciation at|31st July22|-||| ||||||| REACH SOUTH (Charitable Incorporated Organisation) ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 JULY 2022** ||Net Book Value|1st September 21|**-**||| |---|---|---|---|---|---| ||Net Book Value|31st August 22|**-**||| REACH SOUTH (Charitable Incorporated Organisation) ## **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 JULY 2022** ||REACH SOUTH
(Charitable Incorporated Organisation)|REACH SOUTH
(Charitable Incorporated Organisation)|REACH SOUTH
(Charitable Incorporated Organisation)||| |---|---|---|---|---|---| ||**NOTES TO THE ACCOUNTS**||||| ||**FOR THE YEAR ENDED 31 JULY 2022**||||| ||||||| ||||||| |**9. DEBTORS AND PREPAYMENTS**|||||| ||||**TOTAL**||| ||||**31 JUL 22**||| ||||£||| ||||||| ||SundryDebtors||||| ||Prepayments||||| ||||**-**||| ||||||| |**10. CASH AT BANK AND IN HAND**|||||| ||||**TOTAL**||| ||||**31 JUL 22**||| ||||£||| ||Cash at Bank & in Hand||1,797||| ||||**1,797**||| ||||||| |**11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||||| ||||**TOTAL**||| ||||**31 JUL 22**||| ||||£||| ||Creditors||||| ||SundryCreditors||||| ||PAYE & NI||||| ||Accruals||||| ||||**-**||| |||||||