## **THE DANISH CHURCH IN LONDON** 

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

Registered charity number 237897 



THE DANISH CHURCH IN LONDON 

REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

|CONTENTS|PAGE|
|---|---|
|Charity Information|3-4|
|Trustees' Report|5-10|
|Independent examiner's Report|11|
|Statement of Financial Activities (Income & Expenditure Account)|12|
|Statement of Cash Flows|13|
|Statement of Financial Position (Balance sheet)|14|
|Notes to the financial statements|15-25|





THE DANISH CHURCH IN LONDON 

3 

CHARITY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2022 

UK Registered Charity No. 237897 

|Name of the charity:|The Danish Church in London|
|---|---|
|Registered office|The Danish Church in London|
||4 St Katherine's Precinct|
||Regent's Park, London NW1 4HH|
|Trustees|Trustees and members of the Church Council from January 2022 to|
||April 2023 are:|
||Bette Petersen Broyd (Chair)(appointed 18 October 2020, Chair since July 2021)|
||Christine Bergstedt Jørgensen (Deputy Chair)(retired 12 June 2022)|
||Palle Baggesgaard Pedersen (Deputy Chair)(elected 12 June 2022)|
||Niels Ring Andersen (Honorary Treasurer)(appointed 9 June 2019)|
||Anne-Grethe Jensen (Honorary Secretary)(appointed 1 June 2014)|
||Per Gullestrup (Church Warden)(appointed 18 June 2013)|
||Ole Justesen (Church Warden)(appointed 13 June 2021)|
||Svend Kjaer(appointed 12 June 2022)|
||Anne-Sofie Lucan(appointed 12 June 2022)|
||Dr Ebba Nielsen(appointed 12 June 2022)|
||Flemming Kloster Poulsen (Pastor)(appointed 15 July 2016)|
||Casper Orlyk (Clerical & IT)(appointed 9 June 2019)|
||Anne Dorothea Bruum Aubry (Ex-Officio - Royal Danish Embassy)|
||(appointed 18 October 2020)|
||Connie Yilmaz Jantzen (Ex-Officio – Danish YWCA)(appointed 18|
||October 2020)|
||Peter Melbye (Organ & IT)(retired 12 June 2022)|
||Helle Diget Bond (Saturday School)(retired 12 June 2022)|





THE DANISH CHURCH IN LONDON 

4 

CHARITY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2022 

Independent examiner Malcolm Brown BSc, FCA, DChA. Waterman Brown (London) Ltd Chartered Accountants 66 Norman Road, London SW19 1BN Principal bankers Barclays Bank Plc Danske Bank Cazenove (custody/investments) Charles Stanley & Co. (custody/investments) 



THE DANISH CHURCH IN LONDON 

5 

## REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 

The Trustees present their report and financial statements for the year ended 31 December 2022. 

## **1. Structure, governance and management** 

The charity is governed by its Constitution, revised on 15 September 2013, and further updated on 18 October 2020, ratified in June 2021. 

The Church Council manages the Church in practical, legal and financial affairs, and represents the Church in all respects. The Bishop of Copenhagen is the ecclesiastical supervisor for the church. The Danish Ambassador is Patron of the Church. In September 2022 the new ambassador H E René Dinesen was appointed and also accepted his role as Patron of the Danish Church 

The Royal Danish Embassy appoints one ex-officio member of the Church Council. As of October 2020, according to the update of the Constitution, the Danish YWCA can also appoint one member to the Church Council, should they so wish. Resident Pastors are automatically members of the Church Council, and Church Wardens are appointed directly by the Church Council. 

All other members (minimum of 5) are elected by the members of the Church, at the annual general meeting in June. The last AGM was held on 12 June 2022. 

Two or three of the elected members retire annually, in rotation. Proposals to elect or re-elect Church Council members are made either by the Church Council, or in writing by three members of the Church. 

## **2. Objects, objectives and achievements** 

## _Aim and Purpose_ 

The main purpose of the Danish Church in London is to preach the Christian Gospel according to the Lutheran Evangelical tradition, including conducting Services and performing religious ceremonies for Danes, and to act as a cultural and social meeting point for Danes in the Greater London area. At various times in the year, the pastor will travel to Norwich, Newcastle and Hull to perform services in Danish. 

The Church Council ensures that activities are planned with due regard to the Charity Commission's public benefit guidance. 

In order to continue this service in the years to come, the Church has recently upgraded, renovated and increased the usable areas of the church premises. 

## _Achievements and Performance_ 

In addition to Danish-language Sunday Services, The Danish Church in London normally performs a wide range of traditional religious acts, including Christenings, confirmations, weddings and funerals. 

During the Covid-19 pandemic and lockdowns, when the church was closed or limited to reduced service, the Sunday Services, weddings and funerals were transmitted via Zoom. This proved very popular and boosted attendance numbers. The weekly Zoom services were reduced to about once a month and on special occasions from Spring 2022. 



THE DANISH CHURCH IN LONDON 

6 

## REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 

In 2022 the Church conducted 50 Services; 50 were live and 19 as hybrids with additional Zoom Services. In addition, there were 15 Christenings, 9 confirmations, 3 weddings and 3 funerals. The Pastor engaged in 150 official conversations and conducted 8 visits to the homebound or imprisoned. In the year 2022, 1820 attended church in person, an average of 36.6. Another 512 followed the service on Zoom, an average of 26.9. There are 903 paying members (family and individual) of the Church, and in a normal year, a total of around 10,000 people benefit from all our activities. 

2022 was the first complete year since the pandemic and the conclusion of the building works which has allowed a resuming of the usual church activities, group gatherings and events. 

Once the Covid-19 restrictions were lifted during 2021, the Church’s activities resumed with religious services attended in person, as well as a full programme of cultural and social activities and events. These include concerts, talks, debates and exhibitions as well as lunches and gatherings. Several Danish groups were once again able to meet regularly in the church halls. These include a Parent and Toddler group, a Book and Film Club and a Seniors / Craft group. The Bridge Club and the Open Evening Club had relocated during the building project/ pandemic and have, so far, chosen to remain in new premises closer to public transport. In September 2022 a new Wednesday Evening gathering started every first Wednesday of the month with activities aimed primarily at students and working adults. The Association of Danish Women in England and Team Danmark, a football and running club, meet regularly at the church. 

In September 2021, the Danish Language Saturday School for 100+ children and adults resumed classes at the church in the newly renovated buildings with much improved facilities, including new furniture and AV equipment. Pre-pandemic, around 120 children and adults were taught Danish language and culture by volunteer teachers in the Saturday School and numbers are back to normal. The school has been running for 50 years and marked the occasion with a special delayed celebration in April 2022. 

Adult Danish evening classes resumed at the Church on a weekly basis from January 2022. 

The Church donated 2 bursaries of £600 to young Danes studying in the UK. It continues to offer financial support to needy and/or elderly Danes on an ad-hoc basis. In 2022 the church assisted the needy from the benevolent fund with £1981. 

On 4[th] December 2022 the church held a thanksgiving and celebration service to honour the 50[th] Jubilee of Her Majesty Queen Margrethe II of Denmark, who attended the service in a packed church. 

In liaison with three other UK-Danish organisations, the church started a collection for a memorial stone for fallen Danes to be erected in the church gardens in 2023. 



THE DANISH CHURCH IN LONDON 

7 

## REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 

## _Pastor_ 

During 2022 the Church has relied entirely on one full-time resident pastor, Flemming Kloster Poulsen. To assist the pastor, an administrative assistant has been employed on a part-time basis We rely on the support from _Danish Churches Abroad/Danish Seamen's Churches_ to fund these 2 salaries. 

## _Auxiliary Staffing_ 

The church continues to employ Managers Andrew Atkinson and Lone Sigurdsson who live on the premises, act as caretakers and manage all aspects of the practical and catering work involved with the church and church hall activities. In previous years, they were supported by 2 assistants from Denmark, who came as ‘au pairs’ for a year. Brexit rules no longer permit such employment, so replacements are largely by non-Danish speakers. It is an expensive and ongoing challenge to find staff to assist with and commit to ad-hoc events and regular activities and services in the church and to maintain the gardens. 

## _Musical Director / Organist / Kantor_ 

Previously, the church organist was a Danish Music student spending a year at a London conservatoire while providing all music services for the church in return for a modest fee and free accommodation. Brexit rules no longer permit such arrangements, so the church has found an alternative, more costly but very satisfactory arrangement in employing Inge-Lise Nygaard as Musical Director. She organises all music and the choirs for services and arranges musical events generally. 

## _Building Project Completed_ 

The Church’s essential and extensive building project, prepared and overseen by CF Møller Architects in London, was substantially completed in December 2021. The project ran to a total of approximately £3.5 million, funded mainly on donations from funds, companies, benefactors and the congregation. Some delays and losses were incurred, due in large part to Covid-19. 

A celebration thanksgiving service took place in December 2021 with an ecclesiastical procession in front of a large gathering of invited guests and the congregation. H.M. Queen Margrethe of Denmark was due to have attended but cancelled last minute due to the rapid spread of the Omicron variant of Covid in Denmark. The many invited guests who had been involved in the project in a variety of roles, were largely able to attend and to see the finished building and restoration work in full. 

The gardens surrounding the church became the focus once the building works and restoration was complete. Extensive paving and drains were laid as well as a new lawn, also with drains. Diseased trees were felled and new ones planted. Planting schemes for the gardens continue to be carried out in stages. 



THE DANISH CHURCH IN LONDON 

8 

## REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 

## **3. Financial review** 

In 2022 the Danish Church recorded an overall net surplus of £548,862 (2021: deficit £199,940) and this comprises a deficit on usual church activities of £30,086, a paper investment loss of £125,535 and a gain of £704,483 on the sale of 123 Royal College Street. As the Statement of Recommended Practice (SORP) for charity accounting requires us to show the one-off property gain within annual income, the accounts don’t readily display the figure of £30,086. The total income on ordinary activities for the church was of £325,585 (£2021: 487,879) but the total income displayed in the accounts of £1,030,068 includes the gain of £704,483. Total expenditure amounted to £355,671 (2021: £793,569). 

Once again it is difficult to make comparisons between the two accounting periods because 2021 included significant donations and expenditure to the main building works, which are not typical and in 2022 there is the non-recurring event of the disposal of Royal College Street. 

It is useful to look at the unrestricted fund column in the statement of financial activities to monitor the ongoing financial performance on the church’s ordinary activities as adjusted for the 2022 property gain. In 2022 total income relating to ongoing ordinary activities was £282,751 (2021: £205,321, 2020: £157,371), a 37.7% increase on 2021 and a 79.7% increase on 2020. Expenditure relating to ordinary activities amounted to £311,131 (2021: £234,888, 2020: £195,552), an increase of £76,243 (32.5%) on the previous year and £115,579 (59.1%) on 2020. The increases in income and expenditure on ordinary church activities reflect the increase in ecclesiastical and charitable activities since emerging from the pandemic and from several years of building renovations. 

Putting aside the 2022 property gain, the church made a deficit on its unrestricted funds before movements in the value of its investment portfolios of £28,380 (2021: deficit £29,567, 2020: deficit £38,181). 

The net unrealised or ‘paper’ loss on investments of £125,535 reverses the substantial gain of £105,750 seen in 2021. The church holds its investment portfolios for the longer term (i.e. with a time horizon of at least 5 years) and fluctuations in investment value are to be expected. The capital is invested to ensure the investments provide reasonable capital growth over the medium to longer term together with a stream of annual income (around £45,000) towards its ordinary activities. 

The second column on the statement of financial activities, labelled ‘Restricted funds’, represents principally the income and expenditure relating to the Mindestenen Project and new equipment purchased with funds from the Nordea Fund, but please refer to note 14 on pages 22-23 for a full breakdown. 

The statement of cash flows records the flow of cash coming into the church from various sources and the larger out flows. It reconciles the statement of financial activities to the movement of cash deposits between years recorded on the balance sheet. 2021 shows a major injection of cash reserves from the liquidation of £200,000 of investments from the ‘Building & Reserve Fund’ to complete the main building project. 2022 shows another inflow of cash (£949,483) from the sale of 123 Royal College Street. The church was able to recover £250,000 of VAT incurred during the main building works, although this recovery is subject to annual HMRC recalculation over 10 years. 



THE DANISH CHURCH IN LONDON 

9 

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 

## **4. Investment policy** 

The charity’s constitution requires its assets to be invested in Denmark or Great Britain, in bank accounts, investment assets or property. The total investments on 31 December 2022 shown at note 10, pages 20-21, were £991,340 (2021 - £1,118,229). 

The Church has set out its Investments Policy in line with guidelines set out by the Charity Commission. The Investment Policy is reviewed annually. 

## **5. Reserves’ policy** 

The accumulated funds on 31 December 2022 were £2,143,600 (2021 - £1,594,738) of which £873,840 related to endowment funds, £26,503 related to restricted funds and £1,243,257 to unrestricted funds. 

It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates at least to approximately six months unrestricted expenditure. This provides sufficient funds to cover management and administration and support costs. 

The trustees remain of the view that the charity is a going concern. 

## **6. Risk review** 

The trustees have taken steps to identify the major risks to which the charity is exposed, and systems have been established to mitigate those risks. Identification and management of investment risk is addressed in the Investment Policy of the Church. 

## **7. The decision to sell 123 Royal College Street** 

Thirty years ago, the church purchased a terraced house in Camden and within walking distance of the church. This was where the assistants / au pairs and the organist were housed. When Brexit prevented their entry into UK to work, the building was let on a short contract in case the regulations changed. They have not and are unlikely to for the foreseeable future. When the temporary tenant moved out in spring 2022, the trustees found that any formal reletting would require expensive modernisation. The trustees investigated the possibility of housing Ukrainian refugees. However, the standard and safety of the property was found wanting. Consequently, the trustees agreed to put the property on the market to avoid the substantial costs required to bring the accommodation up to a standard for letting. The building was sold for £975,000, a substantial gain on the historical cost price of £245,000. 

## **8. Plans for future periods** 

Interest in the Church during and after the pandemic and extensive building work, has been encouraging. The Trustees are confident of building on the strong recovery seen in 2022. 

In the longer term, the Trustees do not anticipate any fundamental changes in the development of the charity`s operation. 



THE DANISH CHURCH IN LONDON 

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 

## **9. Trustees’ Responsibilities** 

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Charity law in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing the financial statements, the trustees are required to: 

- Select suitable accounting policies and then apply them consistently 

- Observe the methods and principles in the Charities SORP 2019 (FRS 102) 

- 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 financial statements 

- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time, the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provision of the trust deed. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

## **10. Independent Examination** 

A resolution proposing an independent examiner, Malcolm Brown of Waterman Brown (London) Ltd, was approved by the Church Council following the retirement of the previous examiner. 

Approved and signed on behalf of the trustees, by 

_Bette Petersen Broyd Niels Ring Andersen_ 

Bette Petersen Broyd - Chair Dated:  9[th] May 2023 

Niels Ring Andersen – Honorary Treasurer 



THE DANISH CHURCH IN LONDON 

11 

## INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF 

## THE DANISH CHURCH IN LONDON 

I report to the trustees on the accounts of the Danish Church in London for the year ended 31 December 2022, which are set out on pages 12 to 25. 

## **Responsibilities and basis of report** 

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

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 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. 

An Independent Examination has been carried out rather than an audit under Regulation 31(f). The charity has been granted an audit dispensation by the Charities Commission, dated 27[th] June 2023, under Regulation 34(3)(b) of the Charities (Accounts and Reports) Regulations 2008. 

This dispensation is given based upon the information provided by the trustees, that: 

- the exceptional circumstances outlined mean that an audit would be disproportionate 

- there are no constitutional or other requirements on the charity which require an audit; and 

- the charity is not incorporated under company law. 

## **Exceptional circumstances** 

The high level of income during the year is entirely due to the gain on the sale of a freehold property, which will not be repeated in future years. 

## **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 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England & Wales, 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 which gives 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 accounts do not accord with the accounting records; or 

3. the accounts 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. 

## Signed: _Malcolm Brown_ 

Malcolm Brown FCA Institute of Chartered Accountants in England & Wales 

## _**For Waterman Brown (London) Ltd**_ 

Chartered Accountants 66 Norman Road, Wimbledon, London, SW19 1BN 

Dated: 28[th] July 2023 



THE DANISH CHURCH IN LONDON 

## STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 

|Unrestricted<br>Funds<br>Notes<br>**GB £**<br>**INCOME & ENDOWMENTS**<br>Donations & legacies<br>2.1<br>94,673<br>Income from charitable activities<br>2.2<br>161,209<br>Income from other trading activities<br>2.3<br>15,337<br>Income from Investments<br>2.4<br>11,532<br>Other income<br>2.5<br>704,483<br>**Total income & endowments**<br>987,234<br>**EXPENDITURE**<br>**Costs of raising funds**<br>Costs of generating activity income<br>3.1<br>71,252<br>Investment Management costs<br>3.2<br>4,040<br>**Expenditure on charitable activities**<br>4<br>235,839<br>**Total expenditure**<br>311,131<br>**Net (expenditure)/ income before**<br>**gain/(losses) on investments**<br>**676,103**<br>Net (loss)/gain on investments<br>8<br>(115,434)<br>Net income/ (expenditure) for the year<br>560,669<br>**Transfer between funds**<br>-<br>**Net movement in funds**<br>560,669<br>**Reconciliation of Funds:**<br>Total funds brought forward<br>14<br>682,588<br>**Total funds carried forward**<br>14<br>**1,243,257**|Unrestricted<br>Funds<br>Notes<br>**GB £**<br>**INCOME & ENDOWMENTS**<br>Donations & legacies<br>2.1<br>94,673<br>Income from charitable activities<br>2.2<br>161,209<br>Income from other trading activities<br>2.3<br>15,337<br>Income from Investments<br>2.4<br>11,532<br>Other income<br>2.5<br>704,483<br>**Total income & endowments**<br>987,234<br>**EXPENDITURE**<br>**Costs of raising funds**<br>Costs of generating activity income<br>3.1<br>71,252<br>Investment Management costs<br>3.2<br>4,040<br>**Expenditure on charitable activities**<br>4<br>235,839<br>**Total expenditure**<br>311,131<br>**Net (expenditure)/ income before**<br>**gain/(losses) on investments**<br>**676,103**<br>Net (loss)/gain on investments<br>8<br>(115,434)<br>Net income/ (expenditure) for the year<br>560,669<br>**Transfer between funds**<br>-<br>**Net movement in funds**<br>560,669<br>**Reconciliation of Funds:**<br>Total funds brought forward<br>14<br>682,588<br>**Total funds carried forward**<br>14<br>**1,243,257**|Restricted<br>Funds<br>**GB £**<br>9,380<br>-<br>-<br>16<br>-|Endowment<br>Funds<br>**GB £**<br>1<br>-<br>-<br>33,437<br>-|**Total**<br>**Funds**<br>**2022**<br>Total<br>Funds<br>2021<br>**GB £**<br>GB £<br>**104,054**<br>327,594<br>**161,209**<br>88,242<br>**15,337**<br>27,617<br>**44,985**<br>44,426<br>**704,483**<br>-|
|---|---|---|---|---|
||987,234|9,396|33,438|**1,030,068**<br>487,879|
||71,252<br>4,040<br>235,839|-<br>-<br>12,959|-<br>1,016<br>30,565|**71,252**<br>31,406<br>**5,056**<br>5,620<br>**279,363**<br>756,543|
||311,131|12,959|31,581|**355,671**<br>793,569|
||**676,103**<br>(115,434)|**(3,563)**<br>-|**1,857**<br>(10,101)|**674,397**<br>(305,690)<br>**(125,535)**<br>105,750|
||560,669<br>-|(3,563)<br>-|(8,244)<br>-|**548,862**<br>(199,940)<br>**-**<br>-|
||560,669<br>682,588|(3,563)<br>30,066|(8,244)<br>882,084|**548,862**<br>(199,940)<br>**1,594,738**<br>1,794,678|
||**1,243,257**|**26,503**|**873,840**|**2,143,600**<br>1,594,738|





THE DANISH CHURCH IN LONDON 

STATEMENT OF CASH FLOWS: YEAR ENDED 31 DECEMBER 2022 

|**Notes**<br>**Cash flows from operating activities:**<br>**Reconciliation of net movement in funds to**<br>**net cash flow from operating activities**<br>**Net movement in funds**<br>Add: depreciation<br>Deduct: interest and dividend income<br>Add: loss/ (deduct gain) on revaluation of investments<br>Add: loss/ (deduct gain) on disposal of freehold property<br>(Increase)/Decrease in stocks<br>(Increase)/Decrease in debtors<br>(Decrease)/Increase in creditors<br>**Cash (used in)/ provided by operating activities**<br>A<br>**Cash flows from investing activities**<br>Income from interest and dividends<br>Net movements in foreign exchange<br>Net movement on disposal of freehold property<br>Net movements on investment funds<br>**Cash provided by/ (used in) investing activities**<br>B<br>**Cash flows from financing activities**<br>C<br>**(Decrease)/Increase in cash and cash equivalents in the year (A+B+C)**<br>**Total cash & cash equivalents brought forward**<br>**Total cash & cash equivalents carried forward ***|**Total 2022**<br>**GB £**<br>**548,862**<br>**988**<br>**(44,985)**<br>**125,535**<br>**(704,483)**<br>**900**<br>**(7,180)**<br>**(3,119)**|Total 2021<br>GB £<br>(199,940)<br>988<br>(44,426)<br>(105,750)<br>-<br>(8,600)<br>8,063<br>(92,828)|
|---|---|---|
||**(83,482)**|(442,493)|
||**44,985**<br>**428**<br>**949,483**<br>**926**|44,426<br>(1,915)<br>-<br>202,299|
||**995,822**|244,810|
||-|-|
||**912,340**<br>**224,125**|(197,683)<br>421,808|
||**1,136,465**|224,125|



*refer to balance sheet 



THE DANISH CHURCH IN LONDON 

## STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) AT 31 DECEMBER 2022 

|**Notes**<br>Tangible assets<br>9<br>Investments<br>10<br>**Current assets**<br>Stocks<br>11<br>Debtors<br>12<br>Cash at bank and in hand<br>**Creditors**<br>Amounts falling due within one year<br>13<br>**Net current assets**<br>**Total net assets**<br>**Funds**<br>Unrestricted funds<br>14<br>Restricted funds<br>14<br>Endowment funds<br>14<br>**Total Church funds**<br>14<br>**Fixed assets**|**GB £**<br>**GB £**<br>GB £<br>GB £<br>**1,974**<br>247,962<br>**991,340**<br>1,118,229<br>**993,314**<br>1,366,191<br>**7,700**<br>8,600<br>**38,770**<br>31,590<br>**1,136,465**<br>224,125<br>**1,182,935**<br>264,315<br>**32,649**<br>35,768<br>**1,150,286**<br>228,547<br>**2,143,600**<br>1,594,738<br>**1,243,257**<br>682,588<br>**26,503**<br>30,066<br>**873,840**<br>882,084<br>**2,143,600**<br>1,594,738<br>**2022**<br>2021|
|---|---|
||**1,182,935**<br>**32,649**|
|||



These accounts were approved on behalf of the trustees on 9[th] May 2023. 

_Bette Petersen Broyd_ 

_Niels Ring Andersen_ 

Bette Petersen Broyd – Chair 

Niels Ring Andersen - Honorary Treasurer 



THE DANISH CHURCH IN LONDON 

15 

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

## 1 **Accounting policies** 

## **Accounting basis and standards** 

The accounts have been prepared on the going concern basis and in accordance with applicable accounting standards and the Statement of Recommended Practice on Accounting and Reporting by Charities SORP (FRS 102). 

## **Income** 

Church activities and related income are accounted for in the period in which the service is provided. Fee receivables are stated after deducting discounts. 

Donations are credited to revenue when receivable provided conditions for receipt have been complied with. Donations for specific categories of revenue expenditure are credited to restricted funds. 

Investment income is included in the financial statements on an accruals basis. 

## **Expenditure** 

Expenditure, including staff costs, is included in the accounts on an accruals basis and has been classified under heading that aggregate all costs relating to that category. The irrecoverable VAT is included in the accounts as a total rather than with the item of expense to which it relates. 

## **Tangible assets** 

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on certain classes of fixed assets to write off their cost over their expected useful lives, as follows: 

|Plant & Machinery|5 years|
|---|---|
|Furniture & fixtures|10 years|
|Organ (refurbishment)|5 years|
|Office equipment|5 years|
|Motor vehicles|10 years|



No depreciation was charged on the Royal College Street property. Heritage, consecrated and beneficed property is excluded from the accounts by virtue of section 10(2)(a)-(c) of the Charities Act 2011. All expenditure incurred on such property is written off in the accounting period it is incurred. 



THE DANISH CHURCH IN LONDON 

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

## **Foreign currencies** 

Assets and liabilities in foreign currency are translated into sterling at the rates ruling at the dates of the balance sheet. Transactions in foreign currencies are translated into sterling at the rates ruling at the date of the transactions. Exchange differences are taken into account when arriving at the operating result. 

## **Investments** 

Investments held as fixed assets are stated at market value at the close of the accounting period. 

## **Debtors & prepayments** 

Debtors are valued individually less any provisions applicable for potential bad debts. Prepaid expenditure is recognized if material to the accounts. 

## **Creditors** 

Creditors are recognized where the church has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount to settle the obligation can be measured or estimated reliably. 

## **Fund accounting** 

Permanent endowment funds are recognized when a donor has provided an asset(s) where the income therefrom is applied for a specific purpose. Expendable endowment funds allow the spending of both the related income and capital value on a specified purpose. Restricted funds are to be used for specific purposes as laid down by the donor or funder. Designated funds are unrestricted funds that have been set aside by the trustees for a particular purpose. General funds are unrestricted and available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for any other purpose. Transfers between funds are made where income for a project has been exceeded by related expenditure or where it has been agreed with the funder to use unspent balances at the end of a project on activities with a similar objective. 

## **Pensions** 

The church operates a group money purchase defined contribution pension scheme under the autoenrolment system. The assets of the scheme are held separately from those of the church in an independently administered fund. The pension cost represents the contributions payable under the scheme by the church and the church has no further liability other than the payment of those contributions. 



THE DANISH CHURCH IN LONDON 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

## **2. Income summary** 

|**2.1 Income from donations and legacies**<br>Membership<br>Collections, donations & gift aid<br>Organ fund donations<br>In memoriam fund donations<br>Garden fund grants and donations<br>Mindestenen donations<br>**2.2 Income from charitable activities**<br>Catering for charitable activities & events<br>Church shop income<br>Educational fees and books<br>DSUK allowances<br>**2.3 Income from other trading activities**<br>Church hall hire<br>Rents<br>Church magazine advertising<br>**2.4 Income from investments**<br>**2.5 Gain on the sale of freehold property**<br>**Total Income**<br>Church interior fund designated<br>Building project fund grants & donations|Unrestricted<br>GB £<br>47,696<br>41,265<br>5,712<br>-<br>-<br>-<br>-<br>-|Restricted<br>GB £<br>-<br>-<br>-<br>60<br>-<br>9,320<br>-<br>-<br>9,380<br>-<br>-<br>-<br>-|Endowment<br>GB £<br>-<br>1<br>-<br>-<br>-<br>-<br>-<br>-|**Total 2022**<br>Total 2021<br>**GB £**<br>GB £<br>**47,696**<br>38,261<br>**41,266**<br>40,581<br>**5,712**<br>-<br>**60**<br>-<br>**-**<br>32,500<br>**9,320**<br>-<br>**-**<br>-<br>**-**<br>216,252|
|---|---|---|---|---|
||94,673||1|**104,054**<br>327,594|
||97,282<br>19,959<br>22,981<br>20,987||-<br>-<br>-<br>-|**97,282**<br>37,671<br>**19,959**<br>19,479<br>**22,981**<br>16,714<br>**20,987**<br>14,378<br>**161,209**<br>88,242<br>**3,320**<br>1,600<br>**4,500**<br>20,047<br>**7,517**<br>5,970|
||161,209|-|-||
||3,320<br>4,500<br>7,517|-<br>-<br>-|-<br>-<br>-||
||15,337|-|-|**15,337**<br>27,617|
||11,532<br>704,483|16<br>-|33,437<br>-|**44,985**<br>44,426<br>**704,483**<br>-|
||987,234|9,396|33,438|1,030,068<br>487,879|





THE DANISH CHURCH IN LONDON 

18 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

## **3.1  Costs of generating activity income** 

|Unrestricte<br>GB £<br>Catering, event & shop expenses<br>51,727<br>Books & education<br>12,206<br>Ecclesiastical expenses<br>6,830<br>Fundraising costs<br>489<br>71,252<br>**3.2 Investment Management costs**<br>Unrestricte<br>GB £<br>Fees paid to investment managers<br>4,040<br>4,040<br>**4. Expenditure on charitable activities**<br>Unrestricte<br>GB £<br>Benevolent fund bursaries<br>-<br>Summer School & educational grants<br>-<br>Salaries & staff costs (note 6)<br>62,330<br>Premises costs<br>9,694<br>Insurance<br>14,207<br>Utilities<br>22,507<br>Repairs, maintenance & refurbishment<br>42,606<br>Organ expenses<br>1,045<br>Church interior fund expenses<br>-<br>Nordea Fund: furniture & equipment costs<br>-<br>Garden costs<br>3,414<br>Mindestenen costs<br>-<br>Building project costs<br>-<br>Second Priest accommodation costs<br>-<br>Motor & travel expenses<br>4,617<br>Administrative costs & communications<br>16,341<br>Magazine costs<br>6,202<br>Depreciation<br>988<br>Support & accountancy costs<br>26,460<br>Bank charges<br>4,457<br>Irrecoverable VAT on general expenditure<br>15,395<br>Governance costs (note 5 below)<br>5,576<br>235,839<br>**5.  Governance costs**<br>Unrestricte<br>GB £<br>Independent examination fee<br>2,100<br>Accounts drafting fee<br>2,900<br>Trustee liability insurance<br>576<br>Trustee and AGM costs (note 7)<br>-<br>As restated<br>5,576|Unrestricte<br>GB £<br>Catering, event & shop expenses<br>51,727<br>Books & education<br>12,206<br>Ecclesiastical expenses<br>6,830<br>Fundraising costs<br>489<br>71,252<br>**3.2 Investment Management costs**<br>Unrestricte<br>GB £<br>Fees paid to investment managers<br>4,040<br>4,040<br>**4. Expenditure on charitable activities**<br>Unrestricte<br>GB £<br>Benevolent fund bursaries<br>-<br>Summer School & educational grants<br>-<br>Salaries & staff costs (note 6)<br>62,330<br>Premises costs<br>9,694<br>Insurance<br>14,207<br>Utilities<br>22,507<br>Repairs, maintenance & refurbishment<br>42,606<br>Organ expenses<br>1,045<br>Church interior fund expenses<br>-<br>Nordea Fund: furniture & equipment costs<br>-<br>Garden costs<br>3,414<br>Mindestenen costs<br>-<br>Building project costs<br>-<br>Second Priest accommodation costs<br>-<br>Motor & travel expenses<br>4,617<br>Administrative costs & communications<br>16,341<br>Magazine costs<br>6,202<br>Depreciation<br>988<br>Support & accountancy costs<br>26,460<br>Bank charges<br>4,457<br>Irrecoverable VAT on general expenditure<br>15,395<br>Governance costs (note 5 below)<br>5,576<br>235,839<br>**5.  Governance costs**<br>Unrestricte<br>GB £<br>Independent examination fee<br>2,100<br>Accounts drafting fee<br>2,900<br>Trustee liability insurance<br>576<br>Trustee and AGM costs (note 7)<br>-<br>As restated<br>5,576|Restricted<br>GB £<br>-<br>-<br>-<br>-|Endowment<br>GB £<br>-<br>-<br>-<br>-|**Total**<br>Total 2021<br>**GB £**<br>GB £<br>**51,727**<br>19,656<br>**12,206**<br>7,218<br>**6,830**<br>4,402<br>**489**<br>130|
|---|---|---|---|---|
|||-|-|**71,252**<br>31,406|
|||Restricted<br>GB £<br>-|Endowment<br>GB £<br>1,016|<br>**Total**<br>Total 2021<br>**GB £**<br>GB £<br>**5,056**<br>5,620|
|||-|1,016|**5,056**<br>5,620|
|||Restricted<br>GB £<br>-<br>-<br>-<br>-<br>-<br>-<br>6,958<br>-<br>-<br>-<br>-<br>6,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>1<br>-<br>-|Endowment<br>GB £<br>2,080<br>3,976<br>16,727<br>2,000<br>-<br>-<br>3,762<br>-<br>-<br>-<br>451<br>-<br>1,569<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|<br>**Total**<br>Total 2021<br>**GB £**<br>GB £<br>**2,080**<br>3,999<br>**3,976**<br>2,354<br>**79,057**<br>68,054<br>**11,694**<br>13,619<br>**14,207**<br>15,227<br>**22,507**<br>18,754<br>**53,326**<br>26,919<br>**1,045**<br>11,030<br>**-**<br>36<br>**-**<br>11,451<br>**3,865**<br>50,271<br>**6,000**<br>-<br>**1,569**<br>468,676<br>**-**<br>1,619<br>**4,617**<br>3,128<br>**16,341**<br>9,648<br>**6,202**<br>5,179<br>**988**<br>988<br>**26,460**<br>23,730<br>**4,458**<br>1,925<br>**15,395**<br>14,360<br>**5,576**<br>5,576|
||235,839|12,959|30,565|<br>**279,363**<br>756,543|
||Unrestricte<br>GB £<br>2,100<br>2,900<br>576<br>-|Restricted<br>GB £<br>-<br>-<br>-<br>-|Endowment<br>GB £<br>-<br>-<br>-<br>-|<br>**Total**<br>Total 2021<br>**GB £**<br>GB £<br>**2,100**<br>2,100<br>**2,900**<br>2,900<br>**576**<br>576<br>**-**<br>-|
||5,576|-|-|5,576<br>5,576|



**Total Expenditure (notes 3.1, 3.2 & 4)** 

311,131 12,959 31,581 355,671 

793,569 



THE DANISH CHURCH IN LONDON 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

|**6. Staff costs**<br>Wages and salaries<br>Social security costs<br>Less: employment allowance<br>Other pension costs<br>Other staff costs (temps, child protection etc.)<br>DSUK Contribution<br>**Total**<br>Staff (full time equivalent)|**2022**<br>**GB £**<br>47,772<br>3,008<br>(3,008)<br>4,777<br>52,549<br>26,508<br>-<br>**79,057**|2021<br>**GB £**<br>40,142<br>2,187<br>(2,187)<br>4,014|
|---|---|---|
|||44,156<br>19,512<br>4,386|
|||68,054|
||**2022**<br>**No.**<br>3.0|2021<br>No.<br>3.0|



The average number of staff was three and no member of staff earned more than £60,000 

## **7. Trustees & related party transactions** 

No trustee was paid any remuneration in either year. The trustees are regarded as the key management of the church. No trustee or other person related to the church had any personal interest in any contract or transaction. 

## **8  Gain/(Loss) on investments** 

|**8  Gain/(Loss) on investments**|||||
|---|---|---|---|---|
|Unrealised gain/(loss) on investments<br>Gain/(loss) on foreign exchange translation|Unrestricted<br>GB £<br>(115,862)<br>428|Restricted<br>GB £<br>-<br>-|Endowment<br>GB £<br>(11,184)<br>1,083|**Total 2022**<br>Total 2021<br>**GB £**<br>GB £<br>**(127,046)**<br>107,665<br>**1,511**<br>(1,915)|
||(115,434)|-|(10,101)|**(125,535)**<br>105,750|



## **9. Tangible fixed assets** 

||||
|---|---|---|
|**9. Tangible fixed assets**<br>**Cost**<br>At 1 January 2022<br>Additions /(disposals)<br>At 31 December 2022<br>**Depreciation**<br>At 1 January 2022<br>On disposals<br>Charge for year<br>At 31 December 2022<br>**Net book value**<br>**At 31 December 2022**<br>At 31 December 2021|**Freehold**<br>**Property**<br>**GB £**<br>245,000<br>(245,000)|**Cars,**<br>**Fittings &**<br>**Equipment**<br>**Total**<br>**GB £**<br>**GB £**<br>114,141<br>359,141<br>-<br>(245,000)|
||-|114,141<br>114,141|
||-<br>-|111,179<br>111,179<br>-<br>988<br>988|
||-|112,167<br>112,167|
||-|1,974<br>1,974|
||245,000|2,962<br>247,962|





THE DANISH CHURCH IN LONDON 

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

## **10. Investments** 

|**Benevolent fund investments:**<br>_M&G Securities Ltd Charifund Income Units_<br>Value of 8466.31 units at 1st January<br>Net movement on funds *<br>Sub-total<br>Value of 8466.31 units at 31st December<br>Unrealised (loss)/ gain - market movement<br>**Summer School fund investments:**<br>_Danske Bank_<br>Value of investments at 1st January<br>Net movement on funds *<br>Value of investments at 31st December<br>Unrealised (loss)/ gain - market movement<br>**Other fund investments:**<br>_General portfolio through Charles Stanley & Co. Ltd_<br>Value of investments at 1st January<br>Net movement on funds *<br>Value of investments at 31st December<br>Unrealised (loss)/ gain - market movement<br>_General portfolio through Cazenove Schroder_<br>Value of investments at 1st January<br>Net movement on funds *<br>Value of investments at 31st December<br>Unrealised (loss)/ gain - market movement<br>**Total value of investments**<br>Closing value at 31st December<br>Opening value at 1st January|**2022**<br>**2021**<br>**GB £**<br>**GB £**<br>**133,700**<br>**117,645**<br>**-**<br>**-**|
|---|---|
||**133,700**<br>**117,645**<br>**126,700**<br>**133,700**|
||**(7,000)**<br>**16,055**|
||**25,765**<br>**28,030**<br>**(926)**<br>**504**<br>**21,738**<br>**25,765**|
||**(3,101)**<br>**(2,769)**|
||**343,405**<br>**488,980**<br>**-**<br>**(202,803)**<br>**287,657**<br>**343,405**|
||**(55,748)**<br>**57,228**|
||**615,359**<br>**578,208**<br>**-**<br>**-**<br>**555,245**<br>**615,359**|
||**(60,114)**<br>**37,151**|
|||
||**991,340**<br>**1,118,229**|
|||
||**1,118,229**<br>**1,212,863**|



* movement on funds include dividend income less distributions to church and portfolio management fees 



THE DANISH CHURCH IN LONDON 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

## **10. Investments continued** 

|**Portfolio asset allocation**<br>**Charles Stanley**<br>**and total investment value**<br>**M&G Charifund**<br>**Benevolent Fund**<br>GB £<br>GB £<br>Fixed Income<br>-<br>Equities<br>124,414<br>Property<br>-<br>Alternatives<br>-<br>Mixed investments<br>-<br>Cash<br>2,286<br>991,340<br>126,700|**Danske Bank**<br>**Charles Stanley**<br>**Cazenove Capital**<br>**Summer School**<br>**General Portfolio**<br>**General Portfolio**<br>**Fund**<br>GB £<br>GB £<br>GB £<br>21,716<br>23,586<br>57,685<br>-<br>210,577<br>320,240<br>-<br>11,275<br>88,399<br>-<br>18,576<br>54,088<br>-<br>7,217<br>8,256<br>22<br>16,426<br>26,577<br>21,738<br>287,657<br>555,245|
|---|---|



The Benevolent Fund is invested with M&G Charifund, which is designed to provide a growing level of income for UK charities, while at the same time protecting their capital from the effects of inflation over a rolling ten year period. It aims to provide a level of income that is significantly higher than that of the FTSE All-Share Index. The investment is managed by Charles Stanley investment managers. 

The Summer School Fund investments are placed with Danske Bank and aim to generate a high return through Danish Bonds in order to fund annual scholarships. 

The objective of the Charles Stanley general portfolio is to produce a balance between capital growth and income without the income requirement eroding the potential to maintain capital. 

The objective of the general portfolio managed by Cazenove Capital  (part of Schroder & Co. Ltd.) is to maintain capital value whilst distributing 3-4% annually as income. 

## **11. Stocks** 

|**11. Stocks**||
|---|---|
|Stocks of canteen and shop goods<br>**Total**<br>**12. Debtors: Amounts falling due within one year**<br>Registrations, memberships & advertising<br>Accrued income<br>Other debtors & prepayments<br>Listed places of worship grant due<br>Gift aid recoverable<br>VAT repayable<br>**Total**|**2022**<br>2021<br>**GB £**<br>GB £<br>**7,700**<br>8,600|
||**7,700**<br>8,600|
||**2022**<br>2021<br>**GB £**<br>GB £<br>**4,479**<br>4,762<br>**6,921**<br>1,990<br>**19,370**<br>13,920<br>**-**<br>1,676<br>**8,000**<br>5,000<br>**-**<br>4,242|
||**38,770**<br>31,590|





THE DANISH CHURCH IN LONDON 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

## **13. Creditors: Amounts falling due within one year** 

|**2022**<br>**GB £**<br>Shop creditors<br>**-**<br>VAT payable<br>**1,151**<br>PAYE/ NIC payable<br>**-**<br>Other creditors & accruals<br>**31,498**<br>**Total**<br>**32,649**|2021<br>GB £<br>-<br>-<br>-<br>35,768|
|---|---|
||35,768|



## **14. Movement in funds** 

|General Fund<br>Organ fund<br>Church interior fund<br>Second vicar accommodation fund<br>**Total designated funds**<br>Garden fund<br>Mindestenen fund<br>In memoriam fund<br>Nordea fund<br>**Total restricted funds**<br>Salary and pension fund (17.2)<br>Benevolent fund (17.3)<br>FUHU fund<br>Building and reserve fund (17.1)<br>Summer School fund<br>**Total endowment funds**<br>**Total church funds**<br>**Total unrestricted funds (general & designated)**<br>**Unrestricted funds**<br>**Designated funds**<br>**Restricted funds**<br>Friends fund<br>**Endowment Funds**|At 1st<br>January<br>2021<br>**GB £**<br>681,398|Net<br>Movement<br>in funds<br>**GB £**<br>556,002|Transfer<br>between<br>funds<br>**At 31st**<br>**December**<br>**2022**<br>**GB £**<br>**GB £**<br>-<br>1,237,400|
|---|---|---|---|
||1,090<br>-<br>100|4,667<br>-<br>-|-<br>5,757<br>-<br>-<br>-<br>100|
||1,190|4,667|-<br>5,857|
||682,588|560,669|-<br>1,243,257|
||-<br>-<br>16,042<br>4,331<br>9,693|-<br>3,335<br>-<br>60<br>(6,958)|-<br>-<br>-<br>3,335<br>-<br>16,042<br>-<br>4,391<br>-<br>2,735|
||30,066|(3,563)|-<br>26,503|
||432,243<br>157,377<br>60,000<br>207,525<br>24,939|-<br>(3,067)<br>-<br>-<br>(5,177)|-<br>432,243<br>-<br>154,310<br>-<br>60,000<br>-<br>207,525<br>-<br>19,762|
||882,084|(8,244)|-<br>873,840|
|||||
||**1,594,738**|**548,862**|**-**<br>**2,143,600**|





THE DANISH CHURCH IN LONDON 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

## **14 cont. Net movement in funds in year** 

|General fund<br>Organ fund<br>Church interior fund<br>Second vicar accommodation fund<br>Garden fund<br>Mindestenen fund<br>In memoriam fund<br>Nordea fund<br>**Total restricted funds**<br>Salary and pension fund (17.2)<br>Benevolent fund (17.3)<br>FUHU fund<br>Building and reserve fund (17.1)<br>Summer School fund<br>**Total endowment funds**<br>**Total church funds**<br>**Unrestricted funds**<br>**Designated funds**<br>**Total designated funds**<br>**Total unrestricted funds (general & designated)**<br>**Restricted funds**<br>Friends fund<br>**Endowment Funds**|**Incoming**<br>**resources**<br>**GB £**<br>981,522|**Resources**<br>**expended**<br>**GB £**<br>(310,086)|**Gains/**<br>**(losses) on**<br>**investments**<br>**Movement**<br>**in funds**<br>**& property**<br>**GB £**<br>**GB £**<br>(115,434)<br>556,002|
|---|---|---|---|
||5,712<br>-<br>-|(1,045)<br>-<br>-|-<br>4,667<br>-<br>-<br>-<br>-|
||5,712|(1,045)|-<br>4,667|
||987,234|(311,131)|(115,434)<br>560,669|
||-<br>9,336<br>-<br>60<br>-|-<br>(6,001)<br>-<br>-<br>(6,958)|-<br>-<br>-<br>3,335<br>-<br>-<br>-<br>60<br>-<br>(6,958)|
||9,396|(12,959)|-<br>(3,563)|
||16,727<br>7,028<br>1,800<br>7,782<br>101|(16,727)<br>(3,095)<br>(1,800)<br>(7,782)<br>(2,177)|-<br>-<br>(7,000)<br>(3,067)<br>-<br>-<br>-<br>-<br>(3,101)<br>(5,177)|
||33,438|(31,581)|(10,101)<br>(8,244)|
||**1,030,068**|**(355,671)**|**(125,535)**<br>**548,862**|



## **Purpose of funds** 

**General fund:** Unrestricted and for use in the furtherance of the general objectives of the church 

## **Designated funds:** 

**Organ fund:** for the maintenance and repair of the church organ. 

**Church interior fund:** Maintenance and repair of the church interior. 

**Second vicar accommodation fund:** Accommodation for a second priest over two years 

## **Restricted funds:** 

**Garden fund:** Renovation of the Church's courtyard and gardens. 

**Mindestenen fund:** Commissioning of a memorial stone for Danes who have fallen in service to Denmark 

**Friends fund:** Support for the long-term financial stability of the church. 

**In Memoriam fund:** To provide flowers and candles on specific dates in memory of deceased members. 

**Building project fund:** Internal rebuilding and redevelopment of the church buildings. 

**Nordea fund** : Educational supplies, particularly electronic equipment, as well as fixtures and fittings for educational and general purpose. 

## **Endowment funds:** 

**Salary and pension fund:** Income from a permanent endowment to provide salaries and pensions for the pastors and support workers. 



THE DANISH CHURCH IN LONDON 

24 

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

## **Purpose of funds cont.** 

**Benevolent fund:** Income from a permanent endowment to be used for making grants to Danes in London, who are in financial need. 

**FUHU fund:** Interest from a permanent endowment to provide help and financial assistance to Danish students living in the UK or with connections to the UK in the form of bi-annual scholarship grants. 

**Building and reserve fund:** An expendable endowment for the purchasing or leasing of new sites or buildings or the repair or rebuilding of existing buildings to be used for Danish Church services in London or in other ways for the furtherance of the work of the church. 

**Summer School fund:** An expendable endowment where the interest from the fund may be used to send pupil(s) to Summer School in Denmark. 

## **15. Analysis of net assets between funds** 

|General fund<br>Organ fund<br>Church interior fund<br>Second vicar accommodation fund<br>Garden fund<br>Mindestenen fund<br>In memoriam fund<br>Building project fund<br>Nordea fund<br>**Total restricted funds**<br>Salary and pension fund* (17.2)<br>Benevolent fund (17.3)<br>FUHU fund<br>Building and reserve fund* (17.1)<br>Summer School fund<br>**Total endowment funds**<br>**Total church funds**<br>**Unrestricted funds**<br>**Designated funds**<br>**Total designated funds**<br>**Total unrestricted funds (general & designated)**<br>**Restricted funds**<br>Friends fund<br>**Endowment Funds**|**Fixed**<br>**Assets**<br>GB £<br>1,974|**Investments**<br>GB £<br>242,568|**Bank &**<br>**Cash**<br>GB £<br>979,037|**Other Net**<br>**Current**<br>**Assets**<br>**Net Assets**<br>GB £<br>GB £<br>13,821<br>1,237,400|
|---|---|---|---|---|
||-<br>-|-<br>-|5,757<br>-<br>100|-<br>5,757<br>-<br>-<br>-<br>100|
||-|-|5,857|-<br>5,857|
||1,974|242,568|984,894|13,821<br>1,243,257|
||-<br>-<br>-<br>-<br>-|-<br>-<br>-<br>-<br>-|-<br>3,335<br>16,042<br>4,391<br>-<br>2,735|-<br>-<br>-<br>3,335<br>-<br>16,042<br>-<br>4,391<br>-<br>-<br>-<br>2,735|
||-|-|26,503|-<br>26,503|
||-<br>-<br>-<br>-<br>-|432,243<br>126,700<br>-<br>168,091<br>21,738|-<br>27,610<br>60,000<br>39,434<br>(1,976)|-<br>432,243<br>-<br>154,310<br>-<br>60,000<br>-<br>207,525<br>-<br>19,762|
||-|748,772|125,068|-<br>873,840|
||**1,974**|**991,340**|**1,136,465**|**13,821**<br>**2,143,600**|



* The Building and Reserve Fund and the Salary and Pensions Fund investments are held as if in cash equivalents attracting a set return. The risks and rewards from losses and gains on investments is assumed by the General Fund. 

## **16. Taxation** 

No taxation was payable on any surplus or deficit or investment income in 2022 because the church is regarded as a charitable organisation and is not engaged in trading activities as defined by the Income & Corporation Taxes Act 1988. 



THE DANISH CHURCH IN LONDON 

## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 

## **17. Linked Charities** 

|**(Linked charity number 237897-1)**<br>Opening value of investments at 1st January<br>Income from investments (net return after management fees)<br>Less: Lease payment to Crown Estates<br>Façade expenditure<br>General repairs to buildings<br>Surplus to carry forward<br>Transfers to main building project fund<br>Investment (losses)/ gains in year<br>Closing value of investments at 31st December<br>**(Linked charity number 237897-2)**<br>Opening value of investments at 1st January<br>Income from investments<br>Less: Salaries applied from employees & other costs<br>Surplus to carry forward<br>Investment (losses)/ gains in year<br>Closing value of investments at 31st December<br>**(Linked charity number 237897-3)**<br>Opening value of investments & cash at 1st January<br>Income from investments<br>Donations to benevolent fund<br>Less: Payments to beneficiaries<br>Bank charges<br>Portfolio management fees<br>Surplus to carry forward<br>Investment (losses)/ gains in year<br>Closing value of investments and cash at 31st December<br>Represented by:<br>Investments<br>Cash balances (benevolent account & with general fund)<br>**17.1 Danish Church in London Building and Reserve Fund**<br>**17.2 Danish Church in London Salary and Pension Fund**<br>**17.3 Benevolent Fund: Hjaelpefond for Danske I London**|GB £<br>GB £<br>GB £<br>GB £<br>207,525<br>488,295<br>7,782<br>12,149<br>(2,000)<br>(2,000)<br>-<br>-<br>(5,782)<br>(6,376)<br>-<br>3,773<br>-<br>(284,543)<br>-<br>-<br>**207,525**<br>**207,525**<br>GB £<br>GB £<br>432,243<br>432,243<br>16,727<br>12,535<br>(16,727)<br>(12,535)<br>-<br>-<br>-<br>-<br>**432,243**<br>**432,243**<br>GB £<br>GB £<br>157,377<br>140,583<br>7,028<br>6,265<br>-<br>-<br>(1,981)<br>(3,999)<br>(98)<br>-<br>(1,016)<br>(1,019)<br>3,933<br>1,247<br>(7,000)<br>15,547<br>**154,310**<br>**157,377**<br>126,700<br>133,700<br>27,610<br>23,677<br>**154,310**<br>**157,377**<br>**2022**<br>**2021**|
|---|---|
||16,727<br>(16,727)|
||7,028<br>-<br>(1,981)<br>(98)<br>(1,016)|
|||



## **17.4 Danish Emergency Trust Fund summary** 

## **(Linked charity number 237897-4)** 

During 2020, assets of £9,221 were transferred to the Benevolent Fund within the Danish Church in London (see note 17.3 above). They were previously held by a separate charity.