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2023-12-31-accounts

CHARITY REGISTRATION NUMBER: 1197955

North Church UK

Unaudited Financial Statements 31 December 2023

HARRISON HOLT

Chartered Accountants High Park Farm Kirkbymoorside York YO62 7HS

North Church UK

Financial Statements

Year ended 31 December 2023

Page
Trustees' annual report 1
Independent examiner's report to the trustees 8
Statement of financial activities 9
Statement of financial position 10
Statement of cash flows 11
Notes to the financial statements 12

North Church UK

Trustees' Annual Report

Year ended 31 December 2023

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 December 2023.

The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 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 published in October 2019.

Reference and administrative details

Registered charity name North Church UK Charity registration number 1197955 Principal office 98 Kirkstall Road Leeds LS3 1HJ The trustees Ms E M Ajayi Miss A C Beckwith Mr J M Knight Mr D C Niblock Lead Pastors David Niblock Abigail Niblock General Manager Mike Mullender Safeguarding Senior Leader Jon Knight Safeguarding Officer Jennifer Innes (to August 2023) Jennifer Sellars (from August 2023) Web site www.churchnorth.com Banker Virgin Money Independent examiner Philip J H Holt FCA FCIE High Park Farm Kirkbymoorside York YO62 7HS

1

North Church UK

Trustees' Annual Report (continued)

Year ended 31 December 2023

Structure, governance and management

North Church UK is a Charitable Incorporated Organisation (CIO) registered in February 2022, which is governed by a Constitution dated 8th February 2022. The Church is affiliated to the Assemblies of God GB and the Evangelical Alliance.

The charity is managed by a board of experienced trustees, who are responsible for ensuring financial stability and providing professional and strategic advice on policy and resource management. Following Assemblies of God guidelines the Church is required to have at least three trustees at any one time, with one of them being one of the lead pastors, David Niblock.

The trustees meet at least four times each year and have overall responsibility for the operation and leadership of the charity. The trustees draw up policies and procedures within which they and the staff operate and make decisions. The trustees delegate much of the day-to-day responsibilities to the lead pastors under an agreed Schedule of Delegation, which is reviewed annually.

All of our trustees are involved with the Church and undertook trustee training provided by Stewardship in November 2022.

The trustees have arranged Trustees indemnity insurance with a reputable insurer.

New trustees

When a vacancy occurs or there is a need to increase the number of trustees, the lead pastors will nominate a potential new trustee deemed to have the relevant experience, skills and commitment, who will be considered by the existing trustees. All appointments will be confirmed by the board of trustees and recorded by a minute in the meeting notes of the relevant board meeting.

When a new trustee is identified, they will be provided with the following before their appointment:

(a) a copy of the current version of the Constitution;

(c) information about the role and responsibilities of a trustee provided by the Charity Commission.

2

North Church UK

Trustees' Annual Report (continued)

Year ended 31 December 2023

Structure, governance and management (continued)

Staff

The core team has grown from fourteen employed staff at the beginning of 2023 to nineteen by the end of the financial year. Five of these staff are full time and the remainder are part time or casual, working from one to three days a week. All staff are under the leadership of the lead pastors for the day-to-day running of the Church, assisted by line managers. We have continued to work hard to build a healthy staff culture with regular training.

All decisions on staff pay and benefits are made by the trustees.

We have also continued to use an external coach for the staff team, who is an experienced Church pastor. He has regular meetings with the staff to provide guided development and to act as a sounding board.

In addition, we have an Advisory Team which helps to bring direction to our vision and values, together with advisory input for the lead pastors.

Safeguarding is one of our priorities, to ensure the safety and protection of everyone who accesses our various ministries. The trustees have a clear understanding that they are accountable for how we safeguard vulnerable adults, children and young people who engage with us, as well as our staff and volunteers. We have implemented safeguarding training for trustees, staff and volunteers.

We renewed our ISO 9001:2015 Quality Management System accreditation in November 2023.

3

North Church UK

Trustees' Annual Report (continued)

Year ended 31 December 2023

Objectives and activities

Our vision to have a commitment to be a Church 'For The City' remains at the forefront of all we do, and we have taken essential steps to ensure it continues to be our priority with our time and with our resources, to serve the people in the city who need help the most. It has been wonderful to see so many of our Church volunteers step up and give their time and effort to serve people who they might not usually come across in their day-to-day life.

When we have become aware of a need in our city, we have done our best to help support or partner with various organisations to meet the need.

Our four values remain;

1. 'Jesus is who we love to follow.'

Our first priority and response is a culture that follows Jesus wholeheartedly with our daily lives. We want the Church to be a living testimony to the saving power of the gospel and to help people find life-giving hope in Jesus.

We are committed to helping people develop a deep and authentic relationship with Jesus and to discover all that God has for them, so that we have a positive impact in the city of Leeds and surrounding areas.

2. 'The Word is how we love to grow'

Spiritual growth and discipleship are paramount to the depth and health of our Church community, so we have established a new discipleship framework to help make spiritual growth more accessible to everyone.

We have also implemented the same culture into our age group ministries with kids, youth and young adults all following a similar journey.

3. 'People were who we love to serve'

Serving has always been a heartbeat of our Church as we follow Christ's example to serve. We have seen hundreds of new people engaging in serving in our ministry areas throughout the week and for our Sunday services. This is people using their gifts and passion to make a difference in other people's lives.

4. 'Community is how we love to live'

Our Church loves to enjoy life together! From our small groups to social interest groups, people are always looking for ways to grow in community. It is wonderful to see such a diverse mix of community from the youngest to the oldest, people from different sides of the world and from vastly different socio-economic status, and yet the Church is united.

Our heart is to facilitate and strengthen this continued growth with appropriate structure and sustainability.

The trustees have referred to the advice contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning future activities.

Policy on grant making

Our policy outlines how grants may be made and the priorities for providing support. Our aims are advancement of the Christian faith and relief of poverty within local communities and across the world, so recipients of grants are chosen based on their adherence to our charitable objects. Grants will be made for the public benefit by funding activities which will allow our objects to be fulfilled.

4

North Church UK

Trustees' Annual Report (continued)

Year ended 31 December 2023

Achievements and performance

During 2023 we have continued to see exponential growth across the whole Church. With new people joining the Church, new families and people finding faith we have seen amazing increase in nearly all areas as people have connected with the vision, established lasting roots and brought significant contribution to the life of the Church.

In September, due to the higher number of adults and children attending Church, we went from having one service each Sunday morning and one evening service once a month, to having two services each Sunday morning, plus an evening service once a month.

In 2023 we saw 150 people come to faith in Jesus, as well as 73 who followed that decision with water baptism. 142 people completed our New to North course which helps people integrate into the soul of the Church.

To strengthen the serving culture we have worked hard to assist the volunteers with specific training such as safeguarding, first aid and leadership development.

Our Easter and Christmas celebrations in 2023 attracted the most people we have ever welcomed in Church and it has been incredible to see the Church alive and fulfilling it's mission here in Leeds.

We continue to run the community café which feeds 25 to 30 people every Thursday, as well as providing essential food items, clothes and hygiene supplies, alongside a hot meal and most importantly, community and an opportunity to talk to people who genuinely care about them. Our partnership with the local schools has grown as we have supported them at times during the year with items such as blankets, Easter eggs and of course Christmas hampers.

In 2023 we launched our North Church Bible School and had over 150 people complete our first module. A new module will commence each term.

We have seen over 50 different nationalities represented in our Church, which was celebrated at our first Nations Day and really reflects the rich diversity and cultural heritage in our city and surrounding areas.

In addition to this, we also hosted our first Young Adults Soul Conference which attracted 600 young adults from across Europe for a weekend.

Financial review

Review of financial activities

The financial results for 2023 and the position with the finances at the end of the year are shown in the attached financial statements.

During our first full accounting year the Charity received donations amounting to £523,419 (2022 - £352,222), related Gift Aid claims of £82,753 (2022 - £42,920). In addition, gifts received were £315,144 (2022 - £222,773), grant funding totalling £17,100 (2022 - £7,250) was received and other income amounted to £nil (2022 - £270,315). Income from trading activities amounted to £56,752 (2022 - £27,002) and interest received was £4,698 (2022 - £269).

The total expenditure on charitable activities amounted to £720,090 (2022 - £423,033) with governance and other resources expensed totalled £15,382(2022 - £15,704) during the year.

5

North Church UK

Trustees' Annual Report (continued)

Year ended 31 December 2023

The total reserves at the year end were £682,624 (2022 - £459,059). The total fixed assets of the charity amounted to £222,454 (2022 - £249,445).

At the end of 2023, the general unrestricted free reserves of the Charity were £458,020 (2022 - £203,911).

This amount adequately exceeds our general expenditure for a period in excess of three months.

The income of the Church is primarily voluntary donations from individuals and other charities, plus some income from the activities of the Church, such as weekends away and conferences, together with income generated from hiring out rooms in the venue. Some income is raised in relation to specific, unexpected needs for responding to local and national events.

The trustees set an agreed budget for each financial year. The lead pastors have authority, with relevant consultation with the trustees, to work within this budget. Any expenditure which is more than 5% above budget needs to be agreed by the trustees.

The trustees manage the finances of the Church to ensure that all of the income is used to further the charitable purposes of the charity. When the reserves of the Church rise above the targeted level the trustees will take action to use the surplus in connection with those purposes. If the trustees know of future costs that justify higher than the policy level of reserves these will be explained in the quarterly management accounts and the year end report.

There have been no significant events which have affected the financial performance for 2023.

Investment Policy

The Church has power to deposit or invest funds, employ a professional fund-manager, and arrange for the investments or other property of the Church to be held in the name of a nominee, in the same manner and subject to the same conditions as the trustees of a trust are permitted to do by the Trustee Act 2000.

No long-term investments are held by the Church at present. The trustees believe the Church's ongoing income is stable and consider that it will be possible to make fundraising or cost-saving action in good time should it be necessary.

Risks and Uncertainties

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that adequate systems and controls are in place to mitigate exposure to such risks. These risks are managed and assessed on an ongoing basis and will be mitigated against as necessary, so that the charity is not exposed to undue risk.

6

North Church UK

Trustees' Annual Report (continued)

Year ended 31 December 2023

Financial review (continued)

Related Parties

We are affiliated to Assemblies of God UK, one of the largest Pentecostal denominations in the UK. We donate 3% of our income to Assemblies of God on a monthly basis, up to a maximum £20,000 each year.

We are also a member of the Evangelical Alliance.

Life Church Ministries (Company number 11973632) is a guarantor for the lease of the building we occupy.

Reserves policy

The trustees recognise the importance of a reserves policy to demonstrate good stewardship and financial management, to ensure that the charity is sustainable for the future by managing any unforeseen financial challenges. Our policy is to maintain unrestricted funds which have not been designated for a specific purpose at a sufficient level to meet all management and administrative costs and other ongoing financial commitments for a minimum of three months. These reserves are currently held in cash at the bank and in interest bearing instant access or short notice deposit accounts with reputable financial institutions, which can be accessed at reasonably short notice.

We will also ensure that excessive funds are not held without any identifiable reason or for any identifiable charitable purpose.

Plans for future periods

We will continue to pursue our vision throughout 2023 and into 2024, by developing what we have started in 2022, and believe that we will see continued growth in the various areas of the work as we stay true to the principle of seeking first the Kingdom of God. We are now looking at how we can arrange to accommodate more people at our Sunday services and have started the process of finding additional space to use, to give us more room to develop and extend our community and outreach projects in particular.

We remain focused on developing our various activities to strengthen spiritual well-being, build caring and supportive communities, advance the Christian faith and develop leadership and ministry skills.

We will continue to deliver our existing activities as well as establishing new projects which clearly meet the charity's aims and objectives for the public benefit, and which add real value for the people in our local communities.

The trustees' annual report was approved on 28 October 2024 and signed on behalf of the board of trustees by:

MS E M AJAYI

Trustee

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North Church UK

Independent Examiner's Report to the Trustees of North Church UK

Year ended 31 December 2023

I report to the trustees on my examination of the financial statements of North Church UK ('the charity') for the year ended 31 December 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements 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

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

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 the charity as required by section 130 of the Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the applicable 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.

PHILIP J H HOLT FCA FCIE

Independent Examiner

High Park Farm Kirkbymoorside York YO62 7HS

29 October 2024

8

North Church UK

Statement of Financial Activities

Year ended 31 December 2023

Period from
17 Feb 22 to
Year to 31 Dec 23 31 Dec 22
Unrestricted Restricted
funds fundsTotal funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 4 914,013 24,403 938,416 895,480
Other trading activities 5 26,522 30,230 56,752 27,002
Investment income 6 4,696 2 4,698 269
-------------------------------- ---------------------------- -------------------------------- --------------------------------
Total income 945,231 54,635 999,866 922,751
================================ ============================ ================================ ================================
Expenditure
Expenditure on raising funds:
Costs of raising donations and
legacies 7 4,299 1,088 5,387 1,950
Costs of other trading activities 8 26,149 9,293 35,442 23,005
Expenditure on charitable activities 9,10 661,060 74,412 735,472 438,737
-------------------------------- ---------------------------- -------------------------------- --------------------------------
Total expenditure 691,508 84,793 776,301 463,692
================================ ============================ ================================ ================================
-------------------------------- ---------------------------- -------------------------------- --------------------------------
Net income 253,723 (30,158) 223,565 459,059
================================ ============================ ================================ ================================
Transfers between funds (30,605) 30,605
-------------------------------- ---------------------------- -------------------------------- --------------------------------
Net movement in funds 223,118 447 223,565 459,059
Reconciliation of funds
Total funds brought forward 453,356 5,703 459,059
-------------------------------- ---------------------------- -------------------------------- --------------------------------
Total funds carried forward 676,474 6,150 682,624 459,059
================================ ============================ ================================ ================================

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 12 to 27 form part of these financial statements.

9

North Church UK

Statement of Financial Position

31 December 2023

2023 2022
Note £ £
Fixed assets
Tangible fixed assets 17 222,454 249,445
Current assets
Debtors 18 59,416 32,937
Cash at bank and in hand 457,422 231,601
-------------------------------- --------------------------------
516,838 264,538
Creditors: amounts falling due within one year 19 56,668 54,924
-------------------------------- --------------------------------
Net current assets 460,170 209,614
-------------------------------- --------------------------------
Total assets less current liabilities 682,624 459,059
-------------------------------- --------------------------------
Net assets 682,624 459,059
================================ ================================
Funds of the charity
Restricted funds 6,150 5,703
Unrestricted funds 676,474 453,356
-------------------------------- --------------------------------
Total charity funds 23 682,624 459,059
================================ ================================

These financial statements were approved by the board of trustees and authorised for issue on 28 October 2024, and are signed on behalf of the board by:

MS E M AJAYI Trustee

MR D C NIBLOCK Trustee

The notes on pages 12 to 27 form part of these financial statements.

10

North Church UK

Statement of Cash Flows

Year ended 31 December 2023

2023 2022
Note £ £
Cash generated from operations 25 236,713 235,849
Interest received 4,698 269
-------------------------------- --------------------------------
Net cash from operating activities 241,411 236,118
================================ ================================
Cash flows from investing activities
Purchase of tangible assets (15,590) (4,517)
-------------------------------- --------------------------------
Net cash used in investing activities (15,590) (4,517)
================================ ================================
Cash flows from financing activities
Net increase in cash and cash equivalents 225,821 231,601
Cash and cash equivalents at beginning of year 231,601
-------------------------------- --------------------------------
Cash and cash equivalents at end of year 457,422 231,601
================================ ================================

The notes on pages 12 to 27 form part of these financial statements.

11

North Church UK

Notes to the Financial Statements

Year ended 31 December 2023

1. General information

North Church UK is a public benefit entity and is registered as a Charitable Incorporated Organisation in England. The address of the principal office is 98 Kirkstall Road, Leeds, LS3 1HJ.

2. Statement of compliance

The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

3. Accounting policies

Basis of preparation

The financial statements are prepared on a going concern basis under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.

The current accounting period was the year from 1 January 2023 to 31 December 2023. The comparative figures were for the prior period of just over 10 months from 17 February 2022 to 31 December 2022.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

Going concern

There are no material uncertainties about the charity's ability to continue.

12

North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities, within the next financial year, are the levels of future funding and expenditure on charitable activities.

Income tax

As a charity, North Church UK is exempt from tax on income and gains falling within the available tax exemptions to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

13

North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

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North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings - 20% straight line
Equipment - 20% straight line
Leasehold improvements - 10% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.

Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

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North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

3. Accounting policies (continued)

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the value of the cash or other consideration expected to be paid or received and not discounted.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

4. Donations and legacies

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Donations
Individual giving 509,770 8,812 518,582
Trusts and Foundations
Limited companies 1,200 1,200
Mosaik - The Church Network 3,637 3,637
Gift Aid tax recovered 79,064 3,689 82,753
Gifts
Soul Church Ltd
Streetwise-Love Leeds Ltd
Via charitable giving portals 310,342 4,802 315,144
Grants
Leeds Christian Community Trust 7,100 7,100
Government grant income 10,000 10,000
Other donations and legacies
Life Church Ministries
-------------------------------- ---------------------------- --------------------------------
914,013 24,403 938,416
================================ ============================ ================================

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North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

4. Donations and legacies (continued)

Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Donations
Individual giving 309,980 8,641 318,621
Trusts and Foundations 2,000 2,000
Limited companies 15,576 16,025 31,601
Mosaik - The Church Network
Gift Aid tax recovered 40,372 2,548 42,920
Gifts
Soul Church Ltd 1,000 1,000
Streetwise-Love Leeds Ltd 2,594 2,594
Via charitable giving portals 219,179 219,179
Grants
Leeds Christian Community Trust 7,250 7,250
Government grant income
Other donations and legacies
Life Church Ministries 270,315 270,315
-------------------------------- ---------------------------- --------------------------------
861,016 34,464 895,480
================================ ============================ ================================
5. Other trading activities
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Fundraising events 728 25,306 26,034
Shop income 341 4,924 5,265
Letting and licensing 25,453 25,453
---------------------------- ---------------------------- ----------------------------
26,522 30,230 56,752
============================ ============================ ============================
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Fundraising events 3,982 3,982
Shop income 120 4,068 4,188
Letting and licensing 18,832 18,832
---------------------------- ----------------------- ----------------------------
22,934 4,068 27,002
============================ ======================= ============================

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North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

6. Investment income

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Bank interest receivable 4,623 4,623
Other interest receivable 73 2 75
----------------------- -------------- -----------------------
4,696 2 4,698
======================= ============== =======================
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Bank interest receivable 216 216
Other interest receivable 53 53
-------------- -------------- --------------
269 269
============== ============== ==============
7. Costs of raising donations and legacies
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Costs of raising donations and legacies 4,299 1,088 5,387
======================= ======================= =======================
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Costs of raising donations and legacies 1,796 154 1,950
======================= ============== =======================
8. Costs of other trading activities
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Shop costs 404 4,045 4,449
Staging events 18,526 1,509 20,035
Advertising and publicity 7,219 3,739 10,958
---------------------------- ----------------------- ----------------------------
26,149 9,293 35,442
============================ ======================= ============================
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Shop costs 6,336 6,336
Staging events 5,513 (28)
5,486
Advertising and publicity 10,869 314 11,183
---------------------------- -------------- ----------------------------
22,718 286 23,005
============================ ============== ============================

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North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

9. Expenditure on charitable activities by fund type

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Advance Christian faith 377,969 43,142 421,111
Relieve sickness and hardship 6,672 25,286 31,958
Support costs 276,419 5,984 282,403
-------------------------------- ---------------------------- --------------------------------
661,060 74,412 735,472
================================ ============================ ================================
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Advance Christian faith 214,336 27,524 241,860
Relieve sickness and hardship 1,488 11,617 13,106
Support costs 183,572 201 183,771
-------------------------------- ---------------------------- --------------------------------
399,396 39,342 438,737
================================ ============================ ================================

10. Expenditure on charitable activities by activity type

Activities
undertaken
Grant funding
Support Total funds Total fund
directly
of activities
costs 2023 2022
£ £ £ £ £
Advance Christian faith 397,927
23,184
264,350 685,461 408,246
Relieve sickness and
hardship 14,690
17,268
2,671 34,629 14,787
Governance costs
15,382 15,382 15,704
-------------------------------- ---------------------------- -------------------------------- -------------------------------- --------------------------------
412,617
40,452
282,403 735,472 438,737
================================ ============================ ================================ ================================ ================================

19

North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

11. Analysis of support costs

Advance Relieve
Christian sickness and Governance
faith hardship costs Total 2023 Total 2022
£ £ £ £ £
Staff costs 80,664 815 7,245 88,724 40,784
Premises 52,586 531 53,117 45,829
Communications and IT 1,245 13 1,258 465
General office 50,977 515 51,492 23,565
Finance costs 45 45
Travel and subsistence 9,760 99 9,859 4,589
Trustees meetings 16 16
Accounting and
examination fees 3,600 3,600 3,200
Depreciation 42,155 426 42,581 26,887
Technicians and audio
visual costs 6,948 70 7,018 5,129
Staff training & welfare 2,847 29 2,876 6,944
Equipment expensed 17,123 173 17,296 18,498
Legal and professional 4,521 4,521 7,881
-------------------------------- ----------------------- ---------------------------- -------------------------------- --------------------------------
264,350 2,671 15,382 282,403 183,771
================================ ======================= ============================ ================================ ================================
12. Analysis of grants
Period from
Year to 17 Feb 22 to
31 Dec 23 31 Dec 22
£ £
Grants to institutions
Life Church - Bradford 10,463
Assemblies of God - Great Britain 1,000
Zarach 1,000
Building Church Ltd 544
Soul Church 6,000 1,000
Ordinary Hero 2,550 700
Sports Chaplaincy 1,600 565
Samaritans Purse International 4,400
Light UK 500
Youth for Christ 550
16 Ministry Gifts of £500 or less to local churches 6,040
---------------------------- ----------------------------
23,184 13,728
Grants to individuals
5,655 Grants and Gifts to individuals 17,268 4,034
---------------------------- ----------------------------
Total grants 40,452 17,762
============================ ============================
13. Net income
Net income is stated after charging/(crediting):
2023 2022
£ £
Depreciation of tangible fixed assets 42,581 26,887
Operating lease rentals 42,556 18,282
============================ ============================

20

North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

14. Independent examination fees

Period from
Year to 17 Feb 22 to
31 Dec 23 31 Dec 22
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 600 600
Other financial services 3,000 2,600
----------------------- -----------------------
3,600 3,200
======================= =======================

15. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

Period from
Year to 17 Feb 22 to
31 Dec 23 31 Dec 22
£ £
Wages and salaries 257,620 136,318
Social security costs 20,099 11,473
Employer contributions to pension plans 11,465 2,757
Other employee benefits 5,819 263
-------------------------------- --------------------------------
295,003 150,811
================================ ================================

The average head count of employees during the year was 17 (2022: 12). The average number of full-time equivalent employees during the year is analysed as follows:

2023 2022
No. No.
Direct charitable activities 8 4
Support 1 1
Trustee 1 1
-------------- --------------
10 6
============== ==============

No employee received employee benefits of more than £60,000 during the year (2022: Nil).

21

North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

16. Trustee remuneration and expenses

Included within staff costs were salary costs for the Lead Pastor, who is a paid trustee in accordance with the Articles of the charitable incorporated organisation and as permitted by the Charity Commission and who was employed from 1 May 2022.

The salary amounted to £50,936 (2022: £34,120), social security costs amounted to £5,774 (2022: £4,135) and pensions amounted to £3,155 (2022: £881). There were no other benefits in kind. The current accounting period was the year from 1 January 2023 to 31 December 2023. The comparative figures were for the prior period of just over 10 months from 17 February 2022 to 31 December 2022.

Two trustees were reimbursed for expenses in relation to charitable trading, direct charitable activities, support costs and the acquisition of fixed assets amounting to £2,790 (2022: £1,466).

During the period, the charity purchased insurance to protect it from loss arising from the neglect or defaults of its trustees, employees or agents, or to indemnify its trustees, employees or agents, against the consequences of any neglect or default on their part. The premium paid was £431 (2022: £431).

17. Tangible fixed assets

Leasehold
Fixtures and improvement
fittings Equipment s Total
£ £ £ £
Cost
At 1 January 2023 126,270 4,517 145,545 276,332
Additions 11,741 3,849 15,590
-------------------------------- ----------------------- -------------------------------- --------------------------------
At 31 December 2023 138,011 8,366 145,545 291,922
================================ ======================= ================================ ================================
Depreciation
At 1 January 2023 16,836 348 9,703 26,887
Charge for the year 26,784 1,242 14,555 42,581
-------------------------------- ----------------------- -------------------------------- --------------------------------
At 31 December 2023 43,620 1,590 24,258 69,468
================================ ======================= ================================ ================================
Carrying amount
At 31 December 2023 94,391 6,776 121,287 222,454
================================ ======================= ================================ ================================
At 31 December 2022 109,434 4,169 135,842 249,445
================================ ======================= ================================ ================================
18. Debtors
2023 2022
£ £
Trade debtors 44,438 19,091
Prepayments and accrued income 14,978 13,846
---------------------------- ----------------------------
59,416 32,937
============================ ============================

22

North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

19. Creditors: amounts falling due within one year

2023 2022
£ £
Trade creditors 13,159 29,138
Accruals and deferred income 37,852 14,913
Social security and other taxes 3,678 9,997
Other creditors 1,979 876
---------------------------- ----------------------------
56,668 54,924
============================ ============================
Deferred income
2023 2022
£ £
At 1 Jan 23 6,730
Amount released to income (6,730)
Amount deferred in year 18,336 6,730
---------------------------- -----------------------
At 31 Dec 23 18,336 6,730
============================ =======================

20. Deferred income

21. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £11,465 (2022: £2,757).

22. Government grants

The amounts recognised in the financial statements for government grants are as follows:

2023 2022
£ £
Recognised in income from donations and legacies:
Government grants income 10,000
============================ ==============

23

North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

23. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At 1 At 31
January December
2023 Income Expenditure Transfers 2023
£ £ £ £ £
General funds 203,911 920,731 (648,385) (30,605) 445,652
Fixed Asset Fund 249,445 15,590 (42,581) 222,454
Event North Fund 8,910 (542) 8,368
-------------------------------- -------------------------------- -------------------------------- ---------------------------- --------------------------------
453,356 945,231 (691,508) (30,605) 676,474
================================ ================================ ================================ ============================ ================================
At 17 At 31
February December
2022 Income Expenditure Transfers 2022
£ £ £ £ £
General funds 607,887 (397,023) (6,953) 203,911
Fixed Asset Fund 276,332 (26,887) 249,445
Event North Fund
-------------- -------------------------------- -------------------------------- ----------------------- --------------------------------
884,219 (423,910) (6,953) 453,356
============== ================================ ================================ ======================= ================================

Fixed Asset Fund: The Fixed Asset Fund was established by the Trustees as a Designated Fund. This fund represents the additions and changes in the net book value of the tangible fixed assets of the charity as these are assets used by the charity in the performance of its charitable activities.

Event North Fund: The Event North Fund was established by the Trustees as a Designated Fund. This fund represents the income and expenditure in relation to taking bookings for hiring out the venue and its purpose is to identify the contribution to the performance of its charitable activities from venue hire.

24

North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

23. Analysis of charitable funds (continued)

Restricted funds

Restricted funds
At 1 At 31
January December
2023 Income Expenditure Transfers 2023
£ £ £ £ £
For the City Fund 3,857 8,249 (23,182) 11,076
For the City (Christmas)
Fund 18,316 (22,234) 3,918
Community Café Fund 1,846 8,482 (6,101) 4,227
Rent Fund
For the City (Easter)
Fund 3,966 (2,043) 1,923
Disaster Relief Fund 3,966 (4,480) 514
Youth Fundraising
Projects 3,958 (5,784) 1,826
YA Fundraising Projects 7,698 (20,969) 13,271
----------------------- ---------------------------- ---------------------------- ---------------------------- -----------------------
5,703 54,635 (84,793) 30,605 6,150
======================= ============================ ============================ ============================ =======================
At 17 At 31
February December
2022 Income Expenditure Transfers 2022
£ £ £ £ £
For the City Fund 5,504 (1,647) 3,857
For the City (Christmas)
Fund 11,108 (18,061) 6,953
Community Café Fund 8,344 (6,498) 1,846
Rent Fund 13,576 (13,576)
For the City (Easter)
Fund
Disaster Relief Fund
Youth Fundraising
Projects
YA Fundraising Projects
-------------- ---------------------------- ---------------------------- ----------------------- -----------------------
38,532 (39,782) 6,953 5,703
============== ============================ ============================ ======================= =======================

For the City Fund: The For the City Fund was established by the pastors raising funds from collections and special giving to support the "For the City" programme of events and activities.

For the City (Christmas) Fund: The For the City (Christmas) Fund was established by the pastors raising funds from collections and special giving to celebrate Christmas in a number of ways.

Community Café Fund: The Community Café Fund was established by Leeds Christian Community Trust, Streetwise - Love Leeds and other individual donors to support the onsite community café.

Rent Fund: The Rent Fund was established by a private donor to support the initial rental costs for the church premises.

25

North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

23. Analysis of charitable funds (continued)

For the City (Easter) Fund: The For the City (Easter) Fund was established by the pastors raising funds from collections and special giving to support the "For the City (Easter)" programme of events and activities.

Disaster Relief Fund: The Disaster Relief Fund was established by the pastors raising funds from collections and special giving to support the Disaster Relief around the world.

Youth Fundraising Projects Fund: The Youth Fundraising Projects Fund was established by the pastors raising funds from collections and special giving to support the Youth Fundraising Projects programme of events and activities.

YA Fundraising Projects Fund: The YA Fundraising Projects Fund was established by the pastors raising funds from collections and special giving to support the YA Fundraising Projects programme of events and activities.

24. Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Tangible fixed assets 222,454 222,454
Current assets 510,688 6,150 516,838
Creditors less than 1 year (56,668) (56,668)
-------------------------------- ----------------------- --------------------------------
Net assets 676,474 6,150 682,624
================================ ======================= ================================
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Tangible fixed assets 249,445 249,445
Current assets 258,835 5,703 264,538
Creditors less than 1 year (54,924) (54,924)
-------------------------------- ----------------------- --------------------------------
Net assets 453,356 5,703 459,059
================================ ======================= ================================

26

North Church UK

Notes to the Financial Statements (continued)

Year ended 31 December 2023

25. Cash generated from operations

2023 2022
£ £
Net income 223,565 459,059
Adjustments for:
Depreciation of tangible fixed assets 42,581 26,887
Other interest receivable and similar income (4,698) (269)
Accrued expenses 11,333 8,183
Non cash adjustment for donated assets (271,815)
Changes in:
Trade and other debtors (26,479) (32,937)
Trade and other creditors (9,589) 46,741
-------------------------------- --------------------------------
236,713 235,849
================================ ================================

26. Analysis of changes in net debt

At At
1 Jan 2023 Cash flows 31 Dec 2023
£ £ £
Cash at bank and in hand 231,601 225,821 457,422
================================ ================================ ================================

27. Operating lease commitments

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

2023 2022
£ £
Later than 1 year and not later than 5 years 81,459 29,939
Later than 5 years 712,766 794,225
-------------------------------- --------------------------------
794,225 824,164
================================ ================================

28. Related parties

By Agreement signed 2 October 2022, Life Church Ministries, a related party virtue of Life Church Ministries being a guarantor of some of the Charity's leases, transferred the operations and assets of the Leeds Campus to North Church UK for consideration of £1. The market value of the assets was £270,315.

During the period, the Charity paid £47,351 to Life Church Ministries for rent and other charitable expenses and received £8,101 in respect of donations. There were no balances outstanding at 31 December 2023.

During the period, the Charity paid £15,968 to Abundant Life Resources Limited, a subsidiary of Life Church Ministries, in respect of hire purchase lease obligations on assets hired by the Charity.

During the period, two trustees were reimbursed £2,790 (2022: one trustee - £1,466) in respect of expenses and all four trustees make donations to the Charity which in aggregate, including Gift Aid, totalled £9,472 (2022: £20,196).

27