**Charity Registration No. 229226** **Company Registration No. 455366 (England and Wales** ) ## **CHURCH COMMUNITIES UK** ## **(A COMPANY LIMITED BY GUARANTEE)** **TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022** ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **LEGAL AND ADMINISTRATIVE INFORMATION** |**Board of Trustees**|Bernard Hibbs| |---|---| ||Marianne Wright| ||Lael Page| ||Gregory Winter| ||Darlene Keiderling| |**Secretary**|Gregory Winter| |**Charity Number**|229226| |**Company Number**|455366| |**Registered Office**|Darvell| ||Brightling Road| ||Robertsbridge| ||East Sussex| ||TN32 5DR| |**Auditors**|HW Fisher LLP| ||Acre House| ||11/15 William Road| ||London| ||NW1 3ER| |**Bankers**|National Westminster Bank Plc| ||Battle Branch| ||6 High Street| ||Battle| ||TN33 0AJ| |**Solicitors**|Bates, Wells & Braithwaite London LLP| ||10 Queen Street Place| ||London| ||EC4R 1BE| 1 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **TRUSTEES’ REPORT** The Directors of Church Communities UK, who are Trustees for the purposes of charity law, present their Annual Report, which is the directors’ report as required by company law, the group strategic report for the company and its subsidiaries, and the audited accounts for the year ended 31 March 2022. The accounts have been prepared in accordance with the accounting policies set out in Note 1 and comply with the governing document of Church Communities UK, applicable law and requirements of SORP 2019. ## **LEGAL STRUCTURE AND GOVERNANCE** Church Communities UK, referred to in this Report as “the Order”, is a private company limited by guarantee, registered in England and Wales, company number 455366. It is a religious order, registered as a charity, registration number 229226. The Order’s governing document is its Articles of Association. Directors and Members of the company are distinct groups. Directors are usually appointed by resolution of company Members. Procedures for induction and training of new Directors include resources such as the relevant Charity Commission publications as well as Board Minutes and policies. The Directors were as follows at the date they approved this Report: Bernard Hibbs Marianne Wright Lael Page Gregory Winter Darlene Keiderling The Board is responsible for management of the Order and most Directors are involved in its daily activities. The Board has delegated certain authority to two committees: the Finance and Corporate Affairs Committee to ensure sound financial management and regulatory compliance; the Education Committee to lead and manage the schools operated by the Order. Members of the Order, Directors and Committee members receive no remuneration or benefit connected with these roles. ## **OBJECTS** The Objects of the Order, as shown in the governing document, are (in an abridged form): The advancement of the Christian faith and the promotion of the moral and spiritual welfare of the general public in accordance with Foundations of Our Faith & Calling: the Bruderhof (“Foundations”) and for the public benefit, and in particular - advancing the vocation of Christian church community as described in _Foundations_ and inspired by the early Christian community described in The Acts of the Apostles 2:44 – 45 and 4:32-35, as a witness to the world and in service of humanity; - establishing, supporting, and maintaining Bruderhof church communities that are open to all people, thus enabling their participants to devote themselves to the service of Jesus Christ and the proclamation of the gospel through a shared life of worship, mission, common work, education, and family life, recognising that productive labour is a vital aspect of church community life and is, in this context, a religious activity that advances the message of the Christian gospel; 2 - relieving poverty, advancing education, and supporting the principles and practice of the Christian faith in relation to peace, justice, reconciliation, and non-violence; and - furthering the purposes of the Bruderhof throughout the world insofar as they are exclusively charitable under English law. ## **STRATEGIC REPORT** In deciding what activities the Order should undertake, the Directors have paid due regard to Charity Commission guidance on public benefit. During the year, the Order sought to fulfil its charitable Objects through two main areas of activity: Community Life and Other Charitable Work and Mission. ## **Community Life** The Directors are satisfied that the most effective way of advancing the Christian faith, and furthering the Objects to benefit the public, is through the long-term objective of founding and maintaining church communities. This means demonstrating the faith and teachings of Jesus Christ and his Apostles in everyday life. The church document, _Foundations of our Faith and Calling_ , describes this life and its biblical basis. Members live in full community of goods and complete spiritual unity while maintaining an open door for visitors. This is the Order’s basic mission to the world and all else is in support of this. At each of the Order’s locations, housing is provided for the families and singles who share in the vocation of community life. Guest accommodation is available, and the community members and visitors gather for meals and worship meetings at noon or in the evenings. During the year, the communities welcomed many visitors and neighbours who attended occasions such as open days, summer festivals, religious services and Christmas celebrations. Productive labour in community departments is integral to the religious vocation of community life described in the Objects. Members do not work for a salary or any remuneration and receive no pocket money. Rather, in wholehearted devotion to Christ and his church, members attend to their duties, and their needs are met to a simple standard, this being a basic principle of church community life since the time of the Apostles (Acts 2:44-45). Adults contribute their efforts in various community departments and businesses. For example, members make high quality wooden furniture and educational play equipment that is sold to schools and nurseries through a separate primary purpose trading subsidiary, Community Products (UK) Limited. Other members work in departments such as the communal kitchen, laundry, and garden. The land, buildings and equipment at each community require on-going maintenance and improvement. During the year the Order achieved some short-term aims including upgrading the electrical systems at the Darvell community, and purchasing a new community location in Austria. The Order intends to upgrade utility infrastructure at several locations, and develop some provision for productive work at the new Austrian location in the coming year. 3 ## **Other Charitable Work and Mission** Another long-term objective of the Order is to further the faith and mission of Jesus Christ through the publishing work, mission journeys, and other charitable work. In some cases the Order conducts these activities and in other cases grants are made to further the work of others. During each year the Directors aim to balance appropriately the efforts and resources that support this wide variety of activities. Distribution of books, a quarterly magazine, and on-line material under the name “Plough Publishing” is an important means of spreading the Order’s message to the general public. During the past year Plough Publishing distributed thousands of books dealing with such topics as forgiveness and reconciliation, marriage, prayer, family life and facing death. Community members ministered to the varied needs of individuals in nearby towns and villages. Members also regularly attended local support groups for the elderly, visited nursing homes and hospices, and volunteered with other charitable organisations which support the vulnerable, the homeless and refugees. In the past year, members have continued to volunteer in Thailand, helping churches support refugees and other vulnerable people. The Order has also supported and worked with several organisations responding to the Ukrainian refugee crisis. These are just a few examples of the Order’s many activities undertaken at each community. **Charitable Grants:** The Order fulfils its charitable Objects through the two areas of activity described above. The Order is not a grant-making charity. Nevertheless, during the year and to the extent surpluses remain after carrying out the activities described above, the Order made grants to support other charities in their work for education, reconciliation, alleviation of poverty and social need, and other mission activity within the UK and abroad. The Board has delegated authority to the Finance and Corporate Affairs Committee to approve grants of up to £25,000 and any larger grants that are part of an arrangement already approved by the Board. **Volunteers:** The Directors recognise the efforts of all volunteers. Most of them are community members who participate daily in all aspects of communal living as a religious vocation. ## **REVIEW OF FINANCIAL POSITION** As stated in the Objects, productive labour is a vital aspect of church community life. Therefore the whollyowned trading subsidiary, Community Products (UK) Limited, fulfils one of the primary purposes of the Order. Trading under the brand name “Community Playthings”, it manufactures and sells high quality educational equipment and furniture. While the trading subsidiary is legally distinct from the Order, the common work it provides to members is an integral part of community life. The Directors recognise that provision of meaningful work for community members and visitors is one of the most important goals of the manufacturing efforts. Pursuant to the terms of a deed of covenant, it distributes its profits to the Order, thereby providing the principal source of funding for all key charitable objectives. Community Products (UK) Limited has a wholly-owned subsidiary, Community Playthings Deutschland GmbH, which carries out profitable business activities in Germany. The Directors are satisfied with the profitability, financial position, and future outlook of these entities. 4 Two other subsidiaries, Brightling Services Ltd and Ashdowne Resources Limited, have been established to provide services to the group. Brightling Services Ltd was profitable and distributed profits to the Order pursuant to a deed of covenant. Ashdowne Resources Limited had not begun trading during the financial year. In addition to income received from its subsidiaries the Order receives donations from members and other sources as set out in note 2. All the incoming resources are used to fund the charitable activities described above, and the related expenditure is set out in note 6. **Funds:** At 31 March 2022, the Order’s unrestricted funds (£39,947,173) include a designated Fixed Asset Fund of £33,779,022, which is the value of tangible fixed assets. This land, buildings and equipment is essential to the vocation of church community life and its benefit to the public. This designated fund is not readily available for expenditure. The Group holds remaining free reserves of £6,168,151. **Cash reserves:** In setting the Reserves Policy, the Directors have decided that the Order should hold a minimum of £1,000,000 to ensure continuity of funding for the activities undertaken directly by the Order and the capital expenditure relating to the real property that supports these activities. Therefore, the figure of £1,151,399 shown on the balance sheet as “Cash at bank and in hand” is deemed by the Directors to be acceptable. **Strategic Risks:** The Directors regularly identify and assess the major risks to which the Order is exposed. The Board has identified loss of income or catastrophic loss of assets as the most significant strategic risk faced by the Order. The Board has established systems to mitigate all risks, including strategic risks, and is satisfied that it has taken all steps reasonably practicable to minimise the impact such events would have on the Order. Day-to-day risk management is the responsibility of the Finance and Corporate Affairs Committee. This year, the rising costs of commodities and energy caused by geo-political uncertainty and conflict have constituted the primary strategic risk. The Directors consider the measures implemented are adequate to address these challenges, and are confident that the Order will continue as a going concern. ## **DISCLOSURE OF INFORMATION TO AUDITORS** Each of the Directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information. ## **AUDITORS** In accordance with section 485 of Companies Act 2006, a resolution proposing that HW Fisher be reappointed as auditors of the company will be put to the Members. The Trustees’ Report (incorporating the Strategic Report) was approved and signed on behalf of the Directors by: Bernard Hibbs Bernard Hibbs Lael Page Lael Page Dated: 27 Feb 2023 5 ## **CHURCH COMMUNITIES UK** ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The trustees, who are also the directors of Church Communities UK for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). A combination of Company Law and Charity Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that year. - In preparing these accounts, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and - prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006 and the Charities act 2011. 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. 6 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **INDEPENDENT AUDITOR'S REPORT** TO THE MEMBERS OF CHURCH COMMUNITIES UK ## **Opinion** We have audited the accounts of Church Communities UK (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the consolidated and charity statement of financial position, the consolidated cash flow statement and the notes to the accounts, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). - In our opinion, the accounts: - give a true and fair view of the state of the group’s and parent charity's affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the accounts section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and Charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form 7 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of our audit: - the information given in the trustees' report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the accounts are prepared is consistent with the accounts; and - the strategic report and the directors’ report included within the trustees' report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the group and the parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent charity, or returns adequate for our audit have not been received from branches not visited by us; or - the parent charity’s accounts are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the group’s and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 8 **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **Auditor's responsibilities for the audit of the accounts** Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. As part of our planning process: - We enquired of management the systems and controls the charity has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. - We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: the Charity SORP, FRS 102, Charities Act 2011, Companies Act 2006. - We considered the incentives and opportunities that exist in the charity, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. - Using our knowledge of the charity, together with the discussions held with the charity at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. The key procedures we undertook to detect irregularities including fraud during the course of the audit included: - Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. - Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. - Assessing the extent of compliance, or lack of, with the relevant laws and regulations. - Testing key income lines, in particular cut-off, for evidence of management bias. - Performing a physical verification of key fixed assets and stock. - Assessing the validity of the classification of income, expenditure, assets and liabilities between unrestricted, designated and restricted funds. - Obtaining third-party confirmation of material bank and loan balances. - Documenting and verifying all significant related party transactions. - Reviewing documentation such as the charity board minutes, correspondence with solicitors, for discussions of irregularities including fraud. - Testing all material consolidation adjustments. 9 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity. A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Carol Rudge ## **Carol Rudge (Senior Statutory Auditor) for and on behalf of H W Fisher LLP** ## **Chartered Accountants** ## **Statutory Auditor** Acre House 11-15 William Road London NW1 3ER United Kingdom 27 Feb 2023 10 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 March 2022** **----- Start of picture text -----**
Unrestricted Designated Total funds Unrestricted Designated Total funds
funds funds 2022 funds funds 2021
Notes £ £ £ £ £ £
Income from:
Donations and legacies 2 6,395,354 - 6,395,354 1,430,781 - 1,430,781
Charitable activities 3 23,846,479 - 23,846,479 17,939,883 - 17,939,883
Other trading activities 4 195,564 - 195,564 6,393 - 6,393
Investment income 5 - - - 83,867 - 83,867
Total Income 30,437,397 - 30,437,397 19,460,925 - 19,460,925
Expenditure on:
Charitable activities 6 24,476,881 - 24,476,881 21,507,245 - 21,507,245
Tax 10 5,395 - 5,395 27,833 - 27,833
- -
Total expenditure 24,482,276 24,482,276 21,535,079 21,535,079
- -
Net income/(expenditure) 5,955,120 5,955,120 (2,074,154) (2,074,154)
Transfers between funds (4,460,412) 4,460,412 - 108,207 (108,207) -
Currency translation adjustment (23,307) - (23,307) 771 771
Net movement in funds
1,471,401 4,460,412 5,931,813 (1,965,176) (108,207) (2,073,383)
Fund balances at 1 April 2021 4,696,750 29,318,610 34,015,360 6,661,925 29,426,818 36,088,743
Fund balances at 31 March 2022 6,168,151 33,779,022 39,947,173 4,696,750 29,318,610 34,015,360
**----- End of picture text -----**
All amounts derive from continuing activities. All gains and losses recognised in the year are included in the Statement of Financial Activities. The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 11 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **CONSOLIDATED AND CHARITY STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2022 COMPANY NUMBER: 455366** **----- Start of picture text -----**
Group Charity
2022 2021 2022 2021
Notes £ (Restated) £ £ £
Fixed assets
Tangible fixed assets 11 35,118,266 30,511,237 33,779,022 29,318,610
Investments 12 - - 1,777,681 1,777,681
Total Fixed Assets 35,118,266 30,511,237 35,556,703 31,096,291
Current assets
Stocks 14 3,569,356 2,054,895 72,561 20,302
Debtors 15 2,870,333 1,708,979 2,872,142 1,349,116
Cash at bank and in hand 3,088,481 4,017,735 1,151,399 1,180,632
Total Current Assets 9,528,170 7,781,610 4,096,102 2,550,050
Liabilities
Creditors: amounts falling due within
one year 16 3,367,462 2,553,368 519,063 398,593
Net current assets 6,160,708 5,228,242 3,577,039 2,151,457
Total assets less current liabilities 41,278,974 35,739,479 39,133,742 33,247,748
Creditors: amounts falling due after
more than one year 21 1,331,801 1,724,119 - -
Net assets 39,947,173 34,015,360 39,133,742 33,247,748
Income funds
Unrestricted funds: - - - -
Designated funds 33,779,022 29,318,610 33,779,022 29,318,610
Other charitable funds 6,168,151 4,696,750 5,354,721 3,929,138
Total Funds 17 39,947,173 34,015,360 39,133,742 33,247,748
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27 Feb 2023 The accounts were approved by the Board of Trustees on ..................................... Bernard Hibbs Lael Page Trustee Trustee Bernard Hibbs Lael Page 12 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022** **----- Start of picture text -----**
2022 2021
Notes £ £
Cash flows from operating activities:
Net cash provided by operating activities 19 5,416,107 (515,145)
Cash flows from investing activities:
Interest received - 4,042
Payments to acquire tangible fixed assets (6,162,105) (1,627,795)
Receipts from sales of tangible fixed assets 16,349 594,380
Net cash used by investing activities (6,145,756) (1,029,373)
Cash flows from financing activities:
Cash inflows from new loans - 2,000,000
-
Repayment of borrowings (176,856)
Net cash (used)/ received in financing activities (176,856) 2,000,000
Changes in Cash and Cash Equivalents in the Reporting (906,505) 455,481
Period
Effect of exchange rate changes on cash (22,749) (6,446)
Movement in net cash (929,254) 449,035
Cash and Cash Equivalents Brought Forward 4,017,735 3,568,700
Cash and Cash Equivalents Carried Forward 3,088,481 4,017,735
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13 **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022** ## **1 Accounting policies** ## **Company information** Church Communities UK is a private charitable company limited by guarantee incorporated in England and Wales. The registered office is Darvell, Brightling Road, Robertsbridge, East Sussex, TN32 5DR. ## **1.1 Basis of preparation** The accounts have been prepared under the historical cost convention and in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006. The Charity is a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. The Charity is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this charity, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The Charity has therefore taken advantage of exemptions from the following disclosure requirements for parent charity information presented within the consolidated financial statements: • Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures. • Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument. The accounts include a prior year restatement as set out in Note 24. ## **1.2 Basis of consolidation** The consolidated accounts of the Group incorporate the accounts of Church Communities UK and its subsidiary undertakings Brightling Services Limited and Community Products (UK) Limited. The subsidiaries have been consolidated on a line by line basis in accordance with section 9 of FRS 102. A separate Statement of Financial Activities (SoFA) for the Charity excluding consolidated organisations is not presented as the Order has taken advantage of the provisions of section 408 of the Companies Act. ## **1.3 Going concern** At the time of approving the accounts, the Trustees have a reasonable expectation that the Group and the Charity have adequate resources to continue in operational existence for the foreseeable future, as the trading subsidiary has continued to provide the Charity with sufficient income to cover its activities. Thus the Trustees' continue to adopt the going concern basis of accounting in preparing the accounts. 14 **NOTES TO THE ACCOUNTS (CONTINUED) NOTES TO THE CONSOLIDATED ACCOUNTS** ## **1.4 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. Designated funds are reserves for which no specific use was specified by a third party, but for which the trustees have allocated to a particular charitable purpose as deemed appropriate. ## **1.5 Incoming resources** Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Trading income is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes. ## **1.6 Resources expended** Resources expended are recognised on an accruals basis. Management and administration expenses represent central establishment costs. Grants payable are accounted for when the Trustees have accepted a legal or constructive obligation to make a donation. Costs are allocated to their relevant activity based on management’s assessment of which activities were primarily responsible for incurring those costs ## **1.7 Tangible fixed assets and depreciation** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Tangible fixed assets with a cost of £2,000 or more are capitalised and are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation of assets less estimated residual value of each asset on a straight-line basis over its expected useful life as follows: |Freehold property|2% straight line| |---|---| |Plant and machinery|between 10% and 50% straight line| |Motor vehicles|between 10% and 25% straight line| |Utilities (included within freehold property)|
between 2% and 50% straight line| |Roads (included within freehold property)|between 2% and 7% straight line| The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. ## **1.8 Investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. 15 **NOTES TO THE ACCOUNTS (CONTINUED) NOTES TO THE CONSOLIDATED ACCOUNTS** ## **1.8 Investments (continued)** A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. ## **1.9 Impairment of fixed assets** At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in Statement of Financial Activity for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. ## **1.10 Stock and work in progress** Stock and work in progress are stated at the lower of cost and net realisable value except finished goods which are valued at 50% of sales price in order to incorporate an element of fixed and variable overheads. Cost includes all direct costs incurred in bringing the stocks to their present location and condition. The purchase cost of raw materials is calculated on a first in first out basis. Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal. ## **1.11 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. ## **1.12 Financial instruments** The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset in the financial statements, with the net amounts presented in the accounts when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 16 **NOTES TO THE ACCOUNTS (CONTINUED) NOTES TO THE CONSOLIDATED ACCOUNTS** ## **1.12 Financial instruments (Continued)** ## **Basic financial assets** Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## **Basic financial liabilities** Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## **1.13 Foreign exchange** Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are taken to the Statement of Financial Activities. ## **1.14 Deferred tax** Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the accounts. Deferred tax is not provided on timing differences arising from the revaluation of fixed assets where there is no commitment to sell the assets. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is charged or credited in the Statement of Financial Activity, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. ## **1.15 Critical accounting estimates and judgements** In the application of the charity’s accounting policies, required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The Trustees do not believe there to be judgements or estimates that would be considered critical to the financial statements. 17 **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022** ## **2 Donations and legacies** |Incoming donations from members
Other incoming donations
Donations and legacies|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total 2022**
Unrestricted
funds
Restricted
funds
Total 2021
**£**
**£**
**£**
£
£
£
**Current Period**
**Current Period**
Prior Period
Prior Period
**433,472**
**-**
**433,472**
285,623
-
285,623
**-**
**-**
**5,961,882**
-
-
1,145,159
**433,472**
**-**
**6,395,354**
285,623
**-**
1,430,781| |---|---| - **3 Charitable activities** As stated in the Objects, productive labour is a vital aspect of church community life and is, in this context, a religious activity. The Charity is the sole shareholder of Community Products (UK) Limited, a business in which the community members carry out primary purpose trading: manufacture and sale of high quality educational equipment and furniture. This subsidiary donates its taxable profits to the Charity each year under a deed of covenant. Its trading results for the year, as extracted from the audited financial statements, are summarized below. |**Turnover**
Sales of goods
Plough publications
Turnover|**Community**
**Products (UK)**
**Ltd and**
**subsidiary**
**Charity**
**trading**
**Total 2022**
Community
Products (UK)
Ltd and
subsidiary
Charity
trading
Total 2021
**£**
**£**
**£**
**£**
**£**
£
**23,602,141**
**231,194**
**23,833,335**
17,563,563
367,868
17,931,431
**-**
**13,144**
**13,144**
-
8,452
8,452
**23,602,141**
**244,338**
**23,846,479**
17,563,563
376,320
17,939,883| |---|---| Turnover analysed by geographical area is as follows: |**Other charitable funds**
**USA**
**UK**
**Rest of the World**|**2022**
2021
**2022**
2021
**£**
£
**£**
£
**198,573**
18,423
**-**
-
**18,713,717**
17,118,325
**244,338**
376,320
**4,934,189**
803,135
**-**
-
**23,846,479**
17,939,883
**244,338**
376,320
**Group**
**Charity**| |---|---| ## **4 Other trading activities** Exchange rate gain/loss Other income |**£**
**32,509**
**163,055**|**2022**
2021
**£**
£
**32,509**
(127,990)
**163,055**
134,384
**Charitable trading**| |---|---| |**195,564**|**195,564**
6,393| 18 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022** **----- Start of picture text -----**
5 Investment income
Unrestricted Total 2022 Unrestricted Total 2021
funds funds
£ £ £ £
Interest income - - 83,867 83,867
- - 83,867 83,867
6 Resources expended on charitable activities
Community life Charitable work Primary Total 2022
& mission purpose
trading
£ £ £ £
Activities undertaken directly
General living costs 2,906,759 - - 2,906,759
Property improvements 240,417 - - 240,417
School and education 590,245 - - 590,245
Travel 1,237,500 - - 1,237,500
Other charitable activities - 299,569 - 299,569
Cost of sales - - 13,752,590 13,752,590
Distribution costs - - 1,834,298 1,834,298
Administrative expenses - - 736,766 736,766
Depreciation 1,209,999 - - 1,209,999
- -
Gain/(Loss) on disposal of assets (13,955) (13,955)
6,170,965 299,569 16,323,654 22,794,188
Grant funding of activities
Grants to institutions - 1,483,433 - 1,483,433
- 1,483,433 - 1,483,433
Share of governance costs 27,668 - - 27,668
Share of support costs 171,593 - - 171,593
6,370,225 1,783,002 16,323,654 24,476,881
Community life Charitable work Primary Total 2021
& mission purpose trading
Prior Year Activities undertaken directly £ £ £ £
General living costs 2,268,400 - - 2,268,400
Property improvements 142,112 - - 142,112
School and education 327,146 - - 327,146
Travel 606,164 - - 606,164
Other charitable activities - 193,193 - 193,193
Cost of sales - - 10,533,570 10,533,570
Distribution costs - - 1,472,658 1,472,658
Administrative expenses - - 588,116 588,116
Depreciation 995,937 - - 995,937
- -
Gain on disposal of assets (83,085) (83,085)
4,256,673 193,193 12,594,344 17,044,211
Grant funding of activities - 4,324,498 - 4,324,498
Grants to institutions - 4,324,498 - 4,324,498
Share of governance costs 21,060 - - 21,060
Share of support costs 117,476 - - 117,476
4,395,210 4,517,691 12,594,344 21,507,245
**----- End of picture text -----**
19 **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022** ## **6 (Continued) Resources expended on charitable activities** Direct activities include founding and maintaining church communities, which the Charity considers to be the most effective means of furthering its charitable objects. Grants were made from surplus funds, but in terms of strategic priorities, the Directors do not consider grant making to be a material component of the Charity's charitable activities. Grant funding for charitable work and mission was provided to organisations in the UK and abroad, to support their work for peace, justice, reconciliation and nonviolence; the alleviation of poverty and suffering; the education of children and adults; and community and apostolic mission. Information on institutional grants made is available at http://www.churchcommunities.org.uk/grants. ## **7 Governance and support costs** |Audit
Legal and professional
Administrative expenses|**2022**
2021
**2022**
2021
**£**
£
**£**
£
Current Period
Prior Period
**27,668**
21,060
**-**
-
**-**
-
**70,975**
71,632
**-**
-
**100,618**
45,844
**27,668**
21,060
**171,593**
117,476
**Governance**
**Support**| |---|---| Included within governance costs are fees of £4,500 (2021: £nil) paid to the auditors in respect of taxation related services. All of the above support and governance costs have been allocated to charitable activities – community life. ## **8 Trustees** None of the trustees (or any persons connected with them) received any remuneration during the year, nor were they reimbursed any expenses. ## **9 Employees and employment costs** ## **Number of employees** There were no employees during the year. (2021: no employees) ## **10 Tax on profit of ordinary activities** Church Communities UK is a charity registered in the UK, charity number 229226. The charity has no liability to corporation tax. Corporate tax charges incurred by its subsidiaries are as shown in the Statement of Financial Activities. 20 **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022** ## **11 Tangible fixed assets** |**Group**
**Cost**
At 1 April 2021
Additions
Transfers
Disposals
**At 31 March 2022**
**Depreciation**
At 1 April 2021
Charge for the year
On disposals
**At 31 March 2022**
**Net book value**
**At 31 March 2022**
At 31 March 2021
**Charity**
**Cost**
At 1 April 2021
Additions
Transfers
Disposals
**At 31 March 2022**
**Depreciation**
At 1 April 2021
Charge for the year
On disposals
**At 31 March 2022**
**Net book value**
**At 31 March 2022**
At 31 March 2021|**Freehold**
**property**
**Plant and**
**machinery**
**Motor**
**vehicles**
**Assets in**
**course of**
**construction**
**Total**
**£**
**£**
**£**
**£**
**£**
34,000,131
5,160,059
1,092,859
324,179
40,577,228
4,792,434
446,645
418,483
504,543
6,162,105
174,409
29,001
-
(203,410)
-
-
(626,741)
(58,199)
-
(684,940)
**38,966,974**
**5,008,964**
**1,453,143**
**625,312**
**46,054,393**
6,103,626
3,079,238
883,127
-
10,065,990
793,532
592,722
166,429
-
1,552,683
-
(624,347)
(58,200)
-
(682,546)
**6,897,158**
**3,047,613**
**991,356**
**-**
**10,936,127**
**32,069,816**
**1,961,351**
**461,787**
**625,312**
**35,118,266**
27,896,505
2,080,821
209,732
324,179
30,511,237
**Freehold**
**property**
**Plant and**
**machinery**
**Motor**
**vehicles**
**Assets in**
**course of**
**construction**
**Total**
**£**
**£**
**£**
**£**
**£**
34,000,131
2,258,106
1,092,859
292,064
37,643,160
4,792,434
287,606
386,932
205,832
5,672,804
174,409
24,001
-
(198,410)
-
-
(76,103)
(58,199)
-
(134,302)
**38,966,974**
**2,493,611**
**1,421,592**
**299,486**
**43,181,663**
6,103,626
1,337,798
883,127
-
8,324,550
793,532
252,141
164,325
-
1,209,999
-
(73,709)
(58,199)
-
(131,908)
**6,897,158**
**1,516,230**
**989,253**
**-**
**9,402,641**
**32,069,816**
**977,381**
**432,339**
**299,486**
**33,779,022**
27,896,505
920,308
209,732
292,064
29,318,610| |---|---| 21 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 MARCH 2022** |**12**
**Investments**
**Cost**
At 1 April 2021
Additions
**At 31 March 2022**
**Net book value**
**At 31 March 2022**
At 31 March 2021|**Group**
**Investment in**
**group**
**undertaking**
**£**
-
-
**-**
**-**
-|**Charity**
**Investment in**
**group**
**undertaking**
**£**
1,777,681
-
**1,777,681**
**1,777,681**
1,777,681| |---|---|---| Church Communities UK has a £1,627,679 investment in the shares of Community Products (UK) Limited and a £150,001 investment in the shares of Brightling Services Limited, both being wholly owned subsidiaries and companies registered in England nos. 3498955 and 10683230 respectively. Results for the year are set out below. |Turnover
Cost of sales
Distribution costs
Administrative expenses
Other income/expenditure
Profit on ordinary activities before taxation|**2022**
2021
**£**
£
**22,834,246**
16,967,775
**(13,727,568)**
(10,439,512)
**(1,463,254)**
(1,076,047)
**(7,957,747)**
(5,594,702)
**314,007**
98,555
**(316)**
(43,932)
Community Products (UK) Limited|**2022**
2021
**£**
£
**337,400**
186,160
**(302,983)**
(185,091)
**-**
-
**(16,517)**
(11,683)
**175**
(8,175)
**18,075**
(18,789)
Brightling Services Limited| |---|---|---| Related party transactions: income from Community Products (UK) Limited is shown in the consolidated Statement of Financial Activities, after eliminating the Deed of Covenant distribution of £7,421,291 (2021: £4,986,032) and rent expense of £329,550 (2021: £325,428) to Church Communities UK. Income from Brightling Services Limited is shown after eliminating the Deed of Covenant distribution of £4,381 (2021: £nil) to Church Communities UK. Community Products (UK) Limited has a £89,199 investment in Community Playthings Deutschland GmbH, a wholly owned subidiary registered in Germany. Results for the year are set out below, translated into Sterling from Euros, its functional currency. |Turnover
Cost of sales
Distribution costs
Administrative expenses
Other income/expenditure
Profit on ordinary activities before taxation|Community Playthings Deutschland GmbH
**2022**
2021
**£**
£
**3,794,153**
3,215,109
**(3,354,940)**
(2,795,245)
**(290,777)**
(299,779)
**(91,674)**
(74,493)
**-**
(206)
**56,762**
45,386| |---|---| 22 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022** **----- Start of picture text -----**
12 Investments (continued) Community Playthings
Community Products (UK) Limited Brightling Services Limited Deutschland GmbH
2022 2021 2022 2021 2022 2021
£ £ £ £ £ £
Turnover 22,834,246 16,967,775 337,400 186,160 3,794,153 3,215,109
Expenditure (22,834,562) (17,011,706) (314,944) (204,949) (3,765,658) (3,220,518)
Subsidiary income (316) (43,932) 22,456 (18,789) 28,495 (5,409)
Community Playthings
Community Products (UK) Limited Brightling Services Limited Deutschland GmbH
2022 2021 2022 2021 2022 2021
£ £ £ £ £ £
Subsidiary assets, liabilities and reserves:
Assets 8,314,753 6,682,305 152,782 145,313 999,797 773,656
Liabilities (6,179,524) (4,546,760) (3,216) (13,387) (604,280) (406,634)
Subsidiary reserves 2,135,229 2,135,545 149,566 131,926 395,517 367,021
13 Financial Instruments
Group Charity
2022 2021 2022 2021
£ £ £ £
Carrying amount of financial assets 2,674,417 1,602,292 2,835,971 1,319,527
Carrying amount of financial liabilities 2,929,307 2,330,676 476,874 385,980
14 Stocks
Group Charity
2022 2021 2022 2021
£ £ £ £
Raw materials and consumables 2,513,119 1,422,455 72,561 20,302
Work in progress 324,651 270,358 - -
Finished goods and goods for resale 731,586 362,083 - -
3,569,356 2,054,895 72,561 20,302
15 Debtors
Group Charity
2022 2021 2022 2021
£ £ £ £
Trade debtors 2,483,309 1,551,202 - -
Amounts owed by group undertakings - - 2,672,340 1,285,941
Other debtors 191,108 51,090 161,341 33,586
Prepayments and accrued income 195,916 106,687 38,461 29,589
2,870,333 1,708,979 2,872,142 1,349,116
Included in debtors are the following amounts due after one year:
Other Debtors 26,001 20,896 9,315 4,129
26,001 20,896 9,315 4,129
**----- End of picture text -----**
23 ## **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022** ## **16 Creditors: amounts falling due within one year** |Bank Loans
Payments received on account
Trade creditors
Taxes
Accruals
Amounts owed to group undertakings|**2022**
2021
**2022**
2021
**£**
£
**£**
£
**438,154**
222,692
-
-
**379,863**
359,595
**18,047**
9,381
**1,734,380**
1,222,554
**429,579**
352,145
**701,764**
660,890
**(3,058)**
-
**113,301**
87,637
**32,305**
24,454
**-**
**-**
**42,189**
12,614
**3,367,462**
2,553,368
**519,063**
398,593
**Charity**
**Group**| |---|---| The reversal of the timing differences will not result in a tax charge, due to the covenanting of profits. ## **17 Unrestricted funds** |**Designated funds:**
Fixed asset fund
**Total for Designated funds**
**Other charitable funds**
**Total Unrestricted funds**|**Balance at 1**
**April 2021**
**Incoming**
**resources**
**Resources**
**expended**
**Transfers**
**Currency**
**translation**
**Balance at 31**
**March 2022**
**(Restated) £**
**£**
**£**
**£**
**£**
**£**
**29,318,610**
**-**
**-**
**4,460,412**
**-**
**33,779,022**
**29,318,610**
**-**
**-**
**4,460,412**
**-**
**33,779,022**
**4,696,750**
**30,437,397**
**(24,482,276)**
**(4,460,412)**
**(23,307)**
**6,168,151**
**34,015,360**
**30,437,397**
**(24,482,276)**
**-**
**(23,307)**
**39,947,173**
**Movement in funds**| |---|---| |**Designated funds:**
Fixed asset fund
**Total for Designated funds**
**Other charitable funds**
**Total Unrestricted funds**|Balance at 1
April 2020
Incoming
resources
Resources
expended
Transfers
Currency
translation
d
Balance at 31
March 2021
£
£
£
£
£
(Restated) £
29,426,818
-
-
(108,207)
-
29,318,610
29,426,818
-
-
(108,207)
-
29,318,610
6,661,925
19,460,925
(21,535,079)
108,207
771
4,696,750
36,088,743
19,460,925
(21,535,079)
-
771
34,015,360
**Movement in funds**| |---|---| The Fixed asset fund represents the net book value of the Order's tangible fixed assets at the end of the year. ## **18 Analysis of net assets between funds** |**Unrestricted**
**funds**
**Designated**
**funds**
**Total 2022**
Unrestricted
funds
Designated
funds
Total 2021
**£**
**£**
**£**
£
£
(Restated) £
**Fund balances at 31 March 2022 are represented by:**
Tangible fixed assets
**1,339,244**
**33,779,022**
**35,118,266**
1,192,627
29,318,610
30,511,237
Current assets
**9,528,170**
**-**
**9,528,170**
7,781,610
-
7,781,610
Creditors
**(4,699,263)**
**-**
**(4,699,263)**
(4,277,487)
-
(4,277,487)| |---| |**6,168,151**
**33,779,022**
**39,947,173**
4,696,750
29,318,610
34,015,360| 24 **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022** ## **19 Cash flow information for the group** |**(a) Net cash inflow from operating activities**
Reconciliation to net incoming resources:
Net incoming resources
Adjusted for:
Depreciation of tangible fixed assets
Interest income
CBILS Interest expense
Loss/(profit) on disposal of tangible fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Adjustments to equity
Net cash provided by operating activities
**(b) Analysis of net cash**
Cash at bank and in hand
**Prior Year Analysis of Net Cash**
Cash at bank and in hand
Cash in hand, at bank
Debt due within one year
Debt due after one year
Total
Decrease in cash in the period
Repayments of bank loans
Change in net debt
Net funds at start of year
Net funds at end of year
**(c) Analysis of changes in net debt**
**(d) Reconciliation of net cash flow to moveme**|**2022**
2021
**£**
£
**5,955,120**
(2,074,154)
**1,552,683**
1,411,072
**-**
(83,867)
**-**
26,637
**(13,955)**
(83,085)
**(1,514,461)**
(226,515)
**(1,161,354)**
(317,958)
**598,631**
832,093
**(557)**
632
**5,416,107**
(515,145)
**1 April 2021**
**Cash flow**
**31 March 2022**
**£**
**£**
**£**
4,017,735
(929,254)
3,088,481
**4,017,735**
**(929,254)**
**3,088,481**
1 April 2020
Cash flow
31 March 2021
£
£
£
3,568,700
449,035
4,017,735
3,568,700
449,035
4,017,735
**1 April 2021**
**Cash flow**
**Other**
**changes**
**31 March 2022**
**4,017,735**
**(929,254)**
**3,088,481**
**(222,692)**
**(215,462)**
**(438,154)**
**(1,724,119)**
**392,319**
**(1,331,801)**
**2,070,923**
**(929,254)**
**176,856**
**1,318,526**
**2022**
**(929,254)**
**176,856**
**(752,398)**
**2,070,923**
**1,318,526**
**nt in net debt**| |---|---| **20 Commitments under operating lease** At 31 March 2022 the trading subsidiary, Community Products (UK) Limited, had financial commitments for the provision of warehousing services of £394,995 expiring within one year (2021 : commitments of £378,000 expiring within one year). At 31 March 2022 the subsidiary Brightling Services Limited had financial commitments for an asset lease of £nil expiring within one year (2021: £68,412). 25 **CHURCH COMMUNITIES UK (A COMPANY LIMITED BY GUARANTEE)** ## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021** ## **21 Creditors: amounts falling due after more than one year** |**Notes**
Bank Loans
**22**|**Group**
**Charity**
**2022**
2021
**2022**
2021
**£**
£
**£**
£
**1,331,801**
1,724,119
**-**
-
**1,331,801**
1,724,119
**-**
-| |---|---| The Coronavirus Business Interruption Loan held with National Westminster Bank PLC is secured by a debenture over all the assets of Community Products (UK) Limited alongside a guarantee from Church Communities UK in the amount of £2,000,000. Amounts included above which fall due after five years are as follows: |Payable by instalments
**Bank Loans**
Payable within one year
Payable after one year|**-**
167,578
**-**
-
**Group**
**Charity**
**2022**
2021
**2022**
2021
**£**
£
**£**
£
**438,154**
222,692
**-**
-
**1,331,801**
1,724,119
**-**
-
**1,769,955**
1,946,812
**-**
-| |---|---| ## **22 Bank Loans** The long-term loan, being the long-term portion of the Coronavirus Business Interruption Loan held with National Westminster Bank PLC, is secured under conditions detailed in Note 21. The loan, drawn down in 2020, is repayable over six years, with no interest payable by Community Products (UK) Limited for the first year, a fixed rate of 2.41% for the following two years, and a variable rate of 2.09% over base rate for the following three years. ## **23 Post Balance Sheet Events** In May 2022, Church Communities UK paid £50,000 as initial share capital into Ashdowne Resources Limited, a newly incorporated wholly owned subsidiary. In July 2022, Church Communities UK purchased land and buildings in Austria totalling £1,444,350 to be used in for its charitable objectives. In November 2022, Church Communities UK sold properties surplus to the Order's requirements for £3,600,000, realising a book gain of £235,714. ## **24 Prior year restatements** The following items were misstated in the 2021 consolidated audited accounts of Church Communities UK. The restatement does not have an impact on the Statement of Financial Activities. These amounts have been restated in the comparative figures of these financial statements: ||**Per 2021**||| |---|---|---|---| ||**audited**||| ||**accounts**|**Restated**|**Difference**| ||**£**|**£**|**£**| |**Statement of Financial Position:**|||| |Creditors: amounts falling due after more than one year|1,946,812|1,724,119|(222,692)| |Net assets|33,792,668|34,015,360|222,692| |Other charitable funds|4,474,057|4,696,750|222,692| |Total Funds|33,792,668|34,015,360|222,692| |**Note 17- Unrestricted funds:**|||| |Total Unrestricted funds- balance at 31 March 2021|33,792,668|34,015,360|222,692| |**Note 18- Analysis of net assets between funds:**|||| |Creditors|(4,500,180)|(4,277,487)|222,692| |Total funds|33,792,668|34,015,360|222,692| 26