## **REGISTERED COMPANY NUMBER: 00917145 (England and Wales) REGISTERED CHARITY NUMBER: 250306**
**REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **FOR**
## **NEW TESTAMENT CHURCH OF GOD**
**NEW TESTAMENT CHURCH OF GOD**
**CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|||**Page**|
|---|---|---|
|**Reference and Administrative Details**|1|
to 2|
|**Repor of the Trustees**|3|
to 14|
|**Repor of the Independent Auditors**|15|
to 17|
|**Statement of Financial Activities**||18|
|**Statement of Financial Position**||19|
|**Statement of Cash Flows**||20|
|**Notes to the Statement of Cash Flows**||21|
|**Notes to the Financial Statements**|22|
to 35|
|**Detailed Statement of Financial Activities**|36|
to 38|
NEW TESTAMENT CHURCH OF GOD
REFERENCE **AND ADMINISTRATIVE** DETAILS **FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Administrative Bishop/Chairman: Director** & **Company Secretary:**
Rev D A Allen Rev R Anderson Rev S Anderson Rev D Barnett RevG Beason Rev E J Benjamin Rev EA Brown Rev RB Brown Rev L Cameron Rev CA Campbell Rev P Chambers Rev K Clarke Rev J Carlis RevV Cox Rev M L Cummins• Rev L Davis• Rev D Douglas Rev D Eccleston Rev E D Edwards Rev H Edwards Rev K Erinle Rev A Foster Rev O D Francis Rev L Frackleton Rev D Gidharry Rev P O Gordon Rev P N Gordon Rev C Grandison• Rev C Harris Rev D Haslam Rev J Haye•
Rev D Bolt• Rev D A Webley•
Rev E Reid Rev P Reynolds Rev C Riley Rev B Robinson Rev P Roper Rev K Scott RevW Sealy Rev T A Smith RevV Smith Rev D Sri Ranjan Rev E Sterling Rev R Sunday-ljoma Rev T Taylor Rev W Taylor• Rev C P Thomas Rev P A Thomas Rev S A Thomas Rev P Thompson Rev S G Thompson Rev J G Walder Rev A N Watson Rev DWilliams Rev M Williams Rev N Williams Rev S Williams Rev L Woodstock
Rev A R Hayles Rev LG Henry Rev J W O Jackson Rev J Jackson• Rev C James Rev A Johnson Rev D Johnson Rev J Johnson Rev R Jones Rev R King• Rev D King Rev P C Kurian Rev P Levene Rev S Lindo-Mason Rev B Martin Rev S Mathew Rev P Matthews Rev R Maynard Rev H McKenzie• Rev L R Mcleod Rev B Mullings Rev B R Nelson Rev IM Nkumu Rev S N Notice Rev G J Owen Rev C A Palmer Rev G A Parry• Rev W Perkins• Rev M Perrin Rev H Radway Rev K Reginald
Rev A Ayandokun (app: 01/03/2019) Rev M Bradley (app: 01/05/21) Rev T Hatton (app: 01/10/21) Rev C Hudson (app:01/01/2021)
Rev J Comrie (resigned 16/05/21) Rev B Burrell (resigned 05/09/21) Rev P Grey ( resigned 31 /12/21 ) Rev A Logan (resigned 31/12/21) Rev H James (retired 31/03/21)
Trustees retired since year end: Rev H R Gayle (retired 30/06/22)
- = Executive Trustee
## **REGISTERED OFFICE**
**REGISTERED COMPANY NUMBER**
3 Cheyne Walk Northampton NN1 5PT 00917145 (England and Wales)
250306
**REGISTERED CHARITY NUMBER**
Page 1
**REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
## **AUDITORS**
## **SOLICITORS**
## **BANKERS**
DNG Dove Naish LLP, Statutory Auditor Eagle House 28 Billing Road Northampton NN1 5AJ
Geoffrey Leaver 251 Upper Third Street Bouverie Square Central Milton Keynes Bucks MK91DR NatWest Pie Commercial Banking RBS House, Grange Park Court Roman Way Northampton NN4 SEA Barclays Bank Pie Ashton House Business Centre 497 Silbury Boulevard Milton Keynes MK9 2LD
Page 2
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
## **1. STRUCTURE, GOVERNANCE AND MANAGEMENT**
**The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).**
## **1.1 The Association**
**The New Testament Church of God ("NTCG") is an association of local churches represented through a corporate body with a centralised government. The church registered on 17 April 1967 as a charity in England & Wales, Registered No. 250306. The charity was established as a charitable company under company law on 4 November 1967 with a Registered No. 00917145 (the word Limited being omitted by License of the Board of Trade).**
## **1.2 Aims and objectives of the church**
**The church exists to advance the Christian faith and for such charitable purposes as the Directors/Trustees shall from time to time decide. The principal activity continues to be directed towards the propagation of the Gospel according to the Acts and Teachings of the Church of God, Cleveland, Tennessee, U.S.A.**
## **1.3 International Connections**
**NTCG is an independent registered charitable company in its financial and administrative character. However, NTCG is affiliated to: Church of God, Cleveland, Tennessee, USA, which is a worldwide organisation of Churches in approximately 179 countries with over seven million members. The sister churches abroad share the same objectives as the UK Church. This report and the accounts do not reflect the affairs of those organisations.**
## **1.4 The Objectives of the Church**
**NTCG is committed to helping people to discover their potential and live life to the full as well as working to expand and reach out to as many people as possible with the message of the Gospel.**
## **1.5 NTCG Strategies for achieving its Objectives**
**The church's objectives are achieved through evangelism, advertising campaigns, maintaining Ministries, administering the ordinances of the Gospel, maintaining Churches, establishing new Churches for worship. NTCG provides preachers, ministers, teachers, chaplains and youth workers, leaders for adult ministries and pastors for the purpose of the stated objectives of the church, which includes the following activities:**
**a) Worship and Prayer - at 101 Branches in England & Wales b) Outreach programmes - at 32 Missions c) Regional Bible schools - catering for the educational needs of our members d) Training for Pastors and Key Leaders**
**e) Training for local administrations f) Day Care Nurseries g) Senior Citizens - Day Care Centres h) Youth Clubs - Providing training and recreation for youths i) Hospital visitation teams**
**j) Involvement in Chaplaincy ministries**
**k) Drug Awareness programmes in the inner city areas**
**Page 3**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
## **1.6 Impacting the Community**
The church is highly adaptive and supportive, listening to and identifying the needs of its members and adherents. Individuals who attend the Church benefit from practical help with prayer, spiritual support and guidance through the many activities of the church.
All our services are free and include:
- one to one pastoral counselling giving spiritual and practical advice
- help through local branches offering information and support from trained volunteers who have had personal experiences
- a website which allows anyone to access our information and services online
- life coaching, and relationship guidance
- personal attention to crisis in homes, hospitals or prisons
- Education at satellite schools and the National Leadership Training Centre in Northampton which opened in 2007.
## **1.7 Church services are held as follows:**
## **Our Weekday Services**
To meet the specific needs of the congregation. Our Stakeholders face daily problems and sometimes find it difficult to find someone who is able to lend a listening ear or a helping hand. Thus, these services are for people to voice their worries through prayer, receiving words of encouragement and practical guidance from the Bible.
Branches located in different communities provide various weekday and Saturday services to cater for the needs of the local community.
## **Our Sunday Service**
The Sunday service is dedicated to seek God the Father, His Son Jesus and the Holy Spirit for the renewal of spiritual strength. They also include devotional worship through singing, Bible readings and prayer. The highlight of the service is the sermon, which not only imparts the Word of God, but addresses issues of great concern to our members and the community that the church serves. The act of Holy Communion, doctrinal and bible teachings are held regularly.
## **1.8 Working with other faith groups, organisations and churches**
The NTCG is committed to working together with other organisations, Churches and faith groups for the benefit of the membership and the community. NTCG has developed a close working relationship with the Church of God of Prophecy. We currently have membership with the following organisations:
- Evangelical Alliance
- The Free Churches Council
- Churches Together in England
## **2. THE NATIONAL CHURCH**
Activities are reflected in the Statement of Financial Activities in the following ways:
## **2.1 Local congregations, in the provision of church services & other activities**
## **- Provision of Church services:**
The Church/charity's primary activity is for the furtherance of the Christian faith.
## **- Sunday School:**
Provision of Christian Education, practical support and training for the development of children and adults for Christian living.
## **- Weekdays activities**
Activities are organised for the Youth, Women and Men. These includes prayer, bible reading, singing, music, youth and senior citizens clubs, physical and other activities to meet needs.
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**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
## **- Educational Literature**
Small Christian bookshops are run by some local branches to support the spiritual development of individuals. Books and other learning resources are provided by some branches to aid the spiritual and social development of members.
## **2.2 There are three activity streams which are:**
- The Provision of Church Services
- Conferences/Conventions
- Departmental Programmes
## **PROVISIONS OF CHURCH SERVICES**
(LOCAL CONGREGATIONS - BRANCHES OF NTCG)
## **The standard local church activities are as follows:**
Sunday AM and PM - Churches open for one to three services on a Sunday Monday - Morning Prayer and Fasting or Evening Activities Tuesday - Counselling and/or Evening Activities Wednesday - Cell Group Prayer or Activities Thursday - Various Training Programmes - Friday Departmental Ministry Activities Saturday - Programmes, Seminars or Conventions
The local Churches provide prayer, worship, teaching and counselling services during the week. NTCG believe strongly in taking on outreach activities, helping to care for and develop individuals in the community. The branches continue the work to develop new ways of outreach and to develop strong evangelism teams who are committed and have a passion to further the Gospel. By expanding our community services and groups, we intend to benefit in new areas from our outreach activities.
## **2.3 Conferences and Conventions:**
## **- National conferences and conventions**
-National conventions, conferences, seminars, retreats and other sports and educational meetings to meet the needs of the membership.
## **-Regional conferences and conventions**
Regional conventions, conferences, seminars, retreats and other sports and educational meetings to meet the needs of the membership.
## **-District Conferences and Conventions**
District conventions, conferences, seminars, retreats and other sports and educational meetings to meet the needs of the membership.
## **-Local Conferences and Conventions**
Local Sunday & Weekday service, conventions, conferences, seminars, retreats and other sports and educational meetings to meet the needs of the membership.
## **2.4 Fundraising Activities to Support Key Charitable Activities:**
The Youth & Christian Education, Women and Men departments all raise funds to provide resources, which enable the departments to cater for the needs of the constituent groups they serve within the Church programme. The charity, in organising national and local conventions, conferences and seminars for its members, also raises funds to provide resources for these events.
## **3. Organisation Structure**
## **3.1 Governing document**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
Page 5
## **NEW TESTAMENT CHURCH OF GOD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
The Church as an organisation is governed by the Company's Memorandum and Articles of Association, General Assembly Minutes and NTCG's governance documents. The church is managed by a Board of twelve Executive Directors/Trustees that forms the National Executive Council (NEC). Eleven of the twelve members are elected and have voting rights and the General Secretary who also serves on this Council is appointed, with no voting rights.
## **3.2 NEC Structure and Tenure of National Charity Trustees**
The NEC consists of 12 members operating with not less than 10 elected members, the elected Chairman (Administrative Bishop) and the appointed National Secretary/Treasurer (Company Secretary and Financial Director). The process for electing the Executive Trustees is as follows:
## **a) National Executive Council (NEC)**
All Ordained Bishops are eligible to serve as a member of the NEC. Biennial elections are conducted where 1 O Bishops are elected to serve for two years and may serve for eight consecutive years after which they are subject to a 2-year compulsory break before being eligible to serve again.
## **b) Chairman/Administrative Bishop**
All Ordained Bishops are eligible for election to serve as Chairman/Administrative Bishop. Elections are conducted every four years and the incumbent may serve for a maximum of three terms (twelve years). **c) National Secretary/Treasurer**
Credential Ministers with the relevant qualifications & experience are eligible for appointment to this office. From time to time the NEC will appoint a National Secretary/Treasurer who also serves as the Financial Director and Company Secretary.
## **3.3 Corporate Business Meetings National Executive Council (NEC)**
The National Executive Council meets at least four times each year at one to four days business sessions. **Ministers' Conference**
NTCG conducts an annual Ministers' conference to deal with the Church's administrative operations and religious matters.
## **Annual General Meetings (AGM)**
NTCG has an annual general meeting (AGM) following the financial year-end of the Church. The AGM facilitates the meeting of NTCG Directors (representing all Pastors, the Company Secretary & Chairman). The AGM receives the Directors' Annual Report and Audited Accounts for the financial year.
## **3.4 Recruitment and Appointment of New Executive Trustees**
The recruitment process takes into consideration the skills mix required to enhance the effectiveness of the Board. Profiles of eligible Bishops are provided to the body of Ministers, who elect their colleagues to serve on the NEC.
## **3.5 Local Charity Trustees**
All local Pastors who are Credentialed Ministers and are in charge of charity assets are required to hold office as a Director of the Church. Within each local branch of NTCG the local membership elects a group of local trustees called "The Church and Pastor's Council". These individuals, with the local Pastor as Chairperson, form the local boards of trustees with responsibility for the assets located at the local branch of NTCG.
The Directors, in discussion with the Charity Commission, are updating the NTCG Articles of Association to allow the 10 National Executive Council members, plus the Administrative Bishop and the National Secretary/Treasurer to be the Directors of the Charity. Once this is finalised all the other Directors will be asked to resign.
## **3.6 National Charity Trustees**
The Directors/Trustees at the local branches holding credential of ordained Bishop are automatically eligible for election to serve on the NEC as Executive Director/Trustee of the corporate body.
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**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
**The Executive Trustees are elected biennially at the Ministers' conference by credential Ministers who are registered members of the church, to serve for two years, but may be re-elected to serve to a maximum of eight years before having to take a two year compulsory break before being eligible to serve again.**
## **3.7 Election of the Chairman/Administrative Bishop**
**Every four years the same Ministers' conference elects from amongst themselves a Chairman/Administrative Bishop who may serve for a maximum of three four year terms, but is subject to an election process every four years. The National Secretary/Treasurer, Company Secretary and Financial Director who is appointed does not have voting rights on the NEC and may serve for an unspecified period.**
## **3.8 Induction and Training of Trustees**
**Existing Trustees already have a good understanding of the charity's objectives and possess both pastoral and business leadership skills. New Trustees undertake a formal induction programme, which outlines essential aspects of the charity, its governance, its objects and how these are to be achieved through its Vision and Purpose. Training will be provided according to each individual Trustee's needs and included in that training are the responsibilities of being a Trustee. Trustees are also made aware of other sources of information and guidance on how to be effective in their role.**
## **4. Risk management**
**Continuous assessment is carried out to prioritise the charity's risks and strengthen our resilience. The Directors review annually the major risks to which the Church is exposed and consider how those risks are managed; this includes operational and financial risks together with major external influences and events outside of the control of the Church. The NEC are principally responsible for maintaining the register of key risks and ensuring these are documented and assigned responsibility within the risk register. The principal risks identified by the NEC are as follows:-**
**1. The data links between HQ and the Training Offices**
**2. Third Party non-disclosure and service level agreements to be implemented**
**3. There must be an improvement in account management and access management**
**4. Staff require some security training especially in malware avoidance and ID theft**
**5. Monitoring of data assets particularly outside working hours**
**The NEC will review the risk register periodically and assign monitoring and specific actions to be performed to the management team. It is the responsibility of management to report back to the NEC on progress made and any new threats identified. During the year, the management and Directors worked to further develop the risk management system which included a review of all branch financial returns. Tightening the controls of the National Office computer systems was also carried out.**
**Page 7**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
## **5. ACHIEVEMENTS AND PERFORMANCE**
The achievements and performance are more of a religious nature and are not so easily quantifiable. The Church Activities below do give some indication of perfonnance and achievements of the National church
The Church provides services at 101 locations in England and Wales, which represent an extension of the reporting charity's activities at local, district and national level. The main focus of activities in England and Wales is still on pastoral care, counselling and meeting the spiritual needs of the congregants.
## **5.1 NTCG Objectives in 2021**
## **- Provide training for all Pastors and Key Leaders**
The Leadership Training Centre successfully completed training for new and developing ministers.
## **- Maintain religious services at NTCG's 101 branches and 32 missions**
This was achieved through the commitment and work of the local pastors and ministers. All branches were able to provide pastoral care to the membership and provide opportunities for meeting as congregations or small groups.
## **- Provide training for individuals wishing to work in Chaplaincy services**
The Chaplaincy programme has been developed over the year by the Chaplaincy Director and her regional team. Training has been enhanced by the Leadership Training Centre.
## **- Support and motivate active volunteer participation in various group ministries such as leadership skills, pastoral ministries, evangelising, youth and care ministries, etc.**
Pastors have encouraged members to be involved in local ministries and activities. This has been seen by the increased pool of talent available for involvement in regional and national events and initiatives, especially in the areas of evangelism and youth ministries.
## **- Organise National, District and Local Seminars, Conferences and Conventions**
NTCG were affected by the national lockdowns imposed by the UK government as a result of the COVID-19 pandemic. Planned live national, district and local events after March 2020 were cancelled for the duration of 2020 and 2021 with the following being held virtually:
## **National Conferences and Conventions:**
National Convention (July 2021)
## **- Provide Training for all Local Treasurers/Secretaries and Local Trustees**
The annual National Secretary Treasurer's Conference was cancelled as a result of the national lockdown.
## **- Maintain and develop the NTCG Education programme through the Leadership Training Centre**
The L TC provided courses for all those who wished to benefit from the NTCG Education programme. This was through distance learning and virtual classrooms.
## **- Develop the NTCG Evangelism programme**
The objectives of the NTCG Evangelism programme were carried out by the National Evangelism Director and his regional team. They were able to hold various awareness events and support training across the country as well as the first NTCG Evangelism Expo which took place at Kings Park Conference Centre in Northampton.
## **6. GENERAL FUNDRAISING**
## **6.1 L TC Partner Scheme**
The L TC Partner Scheme replaced the Gideon Project as the fundraising tool of the Leadership Training Centre. The Leadership Training Centre continues to fulfil the denominational mission to provide fonnative and ministerial professional development its emerging and current leaders. The Heritage Centre, which also houses the Roswith Gerloff collection, was launched in July 2014 and continues to attract a wide range of visitors from various backgrounds and age groups within and beyond our denomination.
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**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
## **7. OBJECTIVES AND ACTIVITIES FOR PUBLIC BENEFIT**
The objective for which the Church charity is established is the propagation of the Gospel according to the acts and teachings of the Church of God.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the New Testament Church of God aims and objectives, and in planning future activities and making its policies for the year. We seek to carry this out by adopting a holistic approach to the needs of society.
We achieved these objectives through our social responsibility programmes:-
- -Our work with prison residents. The charity has a number of chaplains and visiting teams to the prisons.
-Our work in the hospitals through visiting teams and chaplains.
-Work with ex-offenders through support and counselling.
- -Work in care homes for the elderly, with prayer meetings and support for residents. -Work amongst the homeless and vulnerable through the Food Bank initiative and the operation of Soup Kitchens.
- -Work through Street Pastors' ministry assisting those with drug and alcohol problems.
-Our Leadership Training Centre offering training to individuals from various sectors of society.
- -We also provide weddings, funerals and baby dedications to the general public.
- -The 'SHAPE' programme continues to deliver services to disadvantaged women.
## **8. VOLUNTEER INVOLVEMENT**
The church has the support of many volunteers who help with its day-to-day activities. The financial cost to the volunteers, known as intangible income, has not been included in the Statement of Financial Activities because the costs involved are not readily quantifiable or measurable.
We have not included in our financial statements the value that volunteers bring to the charity through the time which they dedicate and their service to others, but we believe that their contribution is invaluable.
NTCG has approximately 3,500 volunteers who regularly support us by assisting at the services we hold during the weekdays and evenings, working in our bookshops, Training Centre, Sunday Services, Sunday Schools and participating in various community group activities and fundraising events.
The Directors would like to express their appreciation for the efforts and contribution of the volunteers who have given freely of their time during the year 2021.
## **9. FINANCIAL REVIEW**
The Statement of Financial Activities for the year is set out on page 18.
## **9.1 Income**
The charities total incoming resources during the year amounted to £9,560,522 (2020: £9,105,220) of which £8,068,081 (2020: £7,885,722) represented voluntary donations. Donations provided approximately 84% (2020: 87%) of the total income.
## **9.2 Expenditure**
Expenditure for the year totalled £8,210,552 (2020: £8,013,789) for continuing activities. Approximately 99% (2020: 99%) of expenditure related to charitable activities, with the balance being attributed to the costs of generating funds. A detailed analysis of expenditure is given in the accounts. Staff-related costs amounted to 36% (2020: 36%) of total expenditure
It is recognised that staff are an invaluable resource and a key way in which the charity's aims and objectives are delivered and supported.
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**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
## **9.3 Balance Sheet**
The net Surplus in funds in the year amounted to £5,453,020 (2020: £1,091,431). The resulting total fund balances carried forward were £47,413,794 (2020: £41,960,774). Restricted funds £nil (2020: £1,996) and unrestricted funds of £47,413,794 (2020: £41,958,778).
## **9.4 Fixed Assets**
Full disclosure of all matters relating to fixed assets is set out in note 13 to the financial statements. The last revaluations of buildings took place in 1999 and the valuations were then frozen in accordance with the transitional arrangements of FRS 15. It is anticipated that the value of the buildings would have increased significantly since this date. In the opinion of the Directors, whilst it is clear that the market value of the freehold land and buildings would have significantly increased over time and exceeds the current carrying value, to obtain a full valuation would not be the most appropriate use of charity funds and therefore the current market value of the freehold land and buildings cannot be readily estimated and disclosed.
## **9.5 Investment Property**
A decision was taken in 2016 to reclassify 17 properties as investment properties. The properties were previously held as fixed assets and depreciation charged on them was written back accordingly. In this financial year, a further 6 properties were reclassified from fixed assets to investment properties due to the change in the nature of the asset. The market value of these properties is £12,119,000 (2020: £6,027,750).
Due to the costs associated with valuing these properties it is intended that professional valuations will be carried out on a cyclical basis so as to minimise the impact on charity resources.
## **9.6 Net Assets**
The charities net assets amount to £47,413,794 (2020: £41,960,774). The majority of this relates to unrestricted general funds, which consist mainly of tangible fixed assets within the balance sheet, such as land and Church buildings, vicarages, furnishings, fixtures and fittings, equipment and motor vehicles.
## **9.7 Current Assets**
As at 31 December 2021, the charity held an amount of £10,327,066 (2020: £9,672,270) being cash at bank and in hand. These funds provide for on-going operational expenses and various projects such as the acquisition of new properties, modernisation and refurbishing of existing properties and providing funds for achieving the church/charity's aims and objectives.
## **9.8 Reserves Policy**
The reserves policy of the church was reviewed during 2021. The Board of Directors believe that it would be practical to hold sufficient cash reserves to provide working capital to cover fluctuations in its budgeted income and expenditure. When deciding the level of reserves, the Board of Directors takes into consideration of forecasts for levels of income and expenditure for the coming year, the reliability of each source of income and the prospects for opening up new sources.
It is the usual intention of the Directors that the Company should hold reserves in the form of cash to maintain sufficient free funds to equate to approximately six months' operating expenditure. The Directors have calculated the monthly operating expenditure to equate to an amount of approximately £684,000. This results in an expected reserves amount of approximately £4.1 million. It is the Directors' opinion that this amount of reserves is necessary for the achievement of the aims and objectives of the organisation as set out on page 5 of this report.
The level of cash reserves that is currently being held is £10.3 million (2020: £9.7 million). The Directors recognise that this is in excess of the reserves policy. The excess amount of £6.2 million is being held pending a decision to designate the balance of these funds in order to meet the requirements of future projects. This policy is reviewed annually, taking into account planned expenditure and future expectations, in particular the prevailing global financial conditions.
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**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
## **9.9 Investment Policy**
The Directors have the power to invest the church's assets as they see fit. The amount of investment will depend on the level of reserves and commitments for the year. The Church's main method of investing its surplus reserves is through the purchase or lease of buildings and converting them into places of worship in order to carry out its aim in furthering the Gospel. All investment options take into account the risk factor. Other options will be considered and the Church reserves the right to determine the investment options it so wishes and review them from time to time. As provided in the Memorandum of Association, the Directors may invest the monies of the Company not immediately required for its purposes in or upon such investments as may be thought fit, subject to the conditions and consents as may be imposed or required by law.
## **10. PLANS FOR FUTURE PERIODS**
The Church is committed to improving its ability to be a learning organisation, accountable for its actions and able to meet high standards of public and stakeholder reporting. The coming year will see further developments in these areas, in which the charity has plans to develop and extend its service to its member congregations and the local community.
The church has set out its core objectives and has added **Mission & Ministry: Christ-Centred** to its objectives to provide an outline strategic framework for the local branches of NTCG:
- a) Evangelism and Church Planting: from INACTION to ACTION - We aimed to plant 3 new churches every year since 2018.
- b) Communication: from SILENCE to PRESENCE - We must move from silence (not having a voice) to speaking out loud, taking advantage of every opportunity.
- c) Pastoral Responsibility: from HIRELINGS to SHEPHERDS -We aim to provide support mechanisms to care for our ministers as they care for their congregations.
- d) Social Responsibility: from SELF to SUPPORT - Part of our responsibility as a church is to speak out against the injustices of this world, for example, the increase of poverty in this country and the imbalance of young black men in correctional institutions and mental facilities.
- e) Discipleship: from BABES to MATURITY - We will set in place discipleship programmes to build strong followers of Jesus Christ.
- f) Organisational Development: from STATIC to MOVEMENT - We will strengthen the positive unique characteristics of the Church of God through acknowledgement and teaching on the key areas of organisational structure, governance, doctrine and faith.
- g) Leadership Development: from MEDIOCRITY to EXCELLENCE - We will focus on enabling effective leadership through the work of the Leadership Training Centre.
## **11. THE NATIONAL CHURCH**
As one of the largest national black majority Churches in the UK, NTCG continues to provide valuable services to the communities through its various ministries.
## **11.1 Membership**
The organisation's membership and adherents are provided for through NTCG's 137 branches/missions nationwide. Growth continues to be more evident in certain parts of the country more than others. We continue to examine how we can assist smaller churches to grow.
New Testament Church of God England and Wales's membership is currently around 10,000. The number of adherents and friends who continue to support the programmes and ministries of the church throughout England and Wales ranges between 30,000 and 40,000.
## **11.2 Church Activity**
NTCG's membership and supporters reflect the sterling work of our Ministers and Volunteer workers.
Due to COVID-19 restrictions continuing into 2021, there was a continued lack of branch activity.
As with 2020, staffing levels at National Office remained depleted, due to furlough not ending until the 30 September 2021. The new online reporting system was also not yet operational for 2021.
Page 11
## **NEW TESTAMENT CHURCH OF GOD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
We have been able to offer retrospective reporting since April 2022 and the following figures are estimated based on less than 10% reporting figures for 2021.
## **11.3 National Administration**
The Chairman on behalf of the Board of Directors would like to thank all the administrative staff for their hard work and dedication during the year.
His appreciation is also extended to all Directors of Departments, District Overseers, Local Pastors, District Administrators, Local Secretaries, Officers and every member of the Church for their support and co-operation during the past year.
## **11.4 Insurance**
The Church's articles of association provide that every director or official of the company is entitled to be indemnified out of the assets of the company against all losses or liabilities incurred in the course of executing his duties.
## **DIRECTORS REPORT**
## **1. EXECUTIVE DIRECTORS' REPORT**
The Directors present their report and the audited financial statements for the year ended 31 December 2021. The financial statements are prepared in order to give a true and fair view of the state of affairs of the charity, and have been prepared in accordance with the requirements of the Statement of Recommended Practice (SORP) effective 1 January 2019.
In this report the Trustees for the purposes of charity law are also Directors of the charitable company for the purposes of company law. Similarly, the word 'church' where used in this report should be taken to mean the Charity for the purposes of charity law and the charitable Company for the purposes of company law.
## **2. NEC MEMBERS SERVING AS EXECUTIVE DIRECTORSfTRUSTEES**
The following Executive Directors/Trustees were elected on 31 August 2019, as Executive Trustees, and members of the National Executive Council to serve as the Executive Directors of the Company until September 2023, when new elections will be held.
Donald Bolt, Derek Webley, Malcolm Cummins, Lincoln Davis, Claion Grandison, Joel Haye, Jonathan Jackson, Ruben King, Herbert McKenzie, Anthony Parry, Wayne Perkins and Winston Taylor.
## **3. DirectorsfTrustees who served during the year**
Details of the Directors/Trustees who held office during the financial year being covered by this report are set out on page 1. The Executive Directors/Trustees comprising the NEC are also set out on page 1, but are marked with an asterisk (*).
## **4. Managing the Church/Charity/Company**
Directors of the New Testament Church of God are responsible for the overall running of the church in key areas of:
- **-Strategy** agreeing objectives and strategy for the Church and determining principles and policies to meet the overall strategy.
**-Finance** - setting guidelines for and agreeing the annual budget; deciding on appropriate financial monitoring procedures; authorising signatories on bank accounts; agreeing borrowings and securities; authorising signature of the Annual Accounts; ensuring adequate response and action is taken following the annual audit; agreeing investment strategy and parameters and setting policies for reserves.
**-Personnel** - defining policy on Employment Terms and Conditions, including disciplinary and grievance matters; agreeing employee remuneration and salaries;
Page 12
## **NEW TESTAMENT CHURCH OF GOD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
**-General** - setting parameters for the delegation of authority; electing the Administrative Bishop (CEO) and other officers; review of risk management with regular reporting and giving notice of meetings to fellow Directors, Members and others.
## **5. Systems of Controls in the Prevention and Detection of Fraud**
The Directors have overall responsibility for ensuring that the church has an appropriate system of controls, safeguarding the assets of the church and taking reasonable steps for the prevention and detection of fraud by providing a reasonable assurance that:
-the church is operating efficiently and effectively;
-its assets are safeguarded against unauthorised use or disposal;
-proper records are maintained and financial information used within the church or for publication is reliable; and
-The church complies with relevant laws and regulations.
## **6. NTCG SYSTEMS OF CONTROL**
## **6.1 Systems of Internal Control**
The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss at Local and National level.
They include:
-Corporate Strategic Plan and an annual budget approved by the Directors;
-Consideration by the Directors of financial results, variances from budgets and non-financial performance indicators;
- -Delegation of authority and segregation of duties; and
- -Identification and management of issues of strategic and operational importance to the charity.
## **6.2 Administrative Bishop**
The Administrative Bishop is in-charge of managing the spiritual affairs of the Church and carries out administrative activities related to the spiritual work. In all matters he is answerable to the Board of Trustees and on Religious and Spiritual matters to the international offices of the Church of God, Cleveland, Tennessee, USA via the European Field Director.
## **6.3 Management and Staff**
The NEC - Executive DirectorsfTrustees delegate the operational and day-to-day management of the corporate body to the Senior Management at the National Office and Area Managers at District and local branch level. The charity is organised into 101 Branches divided into 25 Districts.
The NEC through Executive Managers at the National Office, District Bishops, National and District Departments link into the activities of the local churches to manage the affairs of the Church on a daily basis.
Human Resources, Payroll, Banking, Finance, Asset Acquisition & Disposals, Training, National Conferences & Seminars and Legal Services are managed by Senior Management at the National Office.
## **7. Directors**
The names of the present Directors are on page 1. These Directors all served during the year, unless otherwise stated.
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees (who are also the directors of New Testament Church of God for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Page 13
## **NEW TESTAMENT CHURCH OF GOD**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued**
**Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to**
- **select suitable accounting policies and then apply them consistently;**
- **observe the methods and principles in the Charity SORP;**
- **make judgements and estimates that are reasonable and prudent;**
- **prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.**
**The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.**
**In so far as the trustees are aware:**
- **there is no relevant audit information of which the charitable company's auditors are unaware; and**
- **the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.**
## **AUDITORS**
**The auditors, appointment at the forthcoming Annual General Meeting. ONG Dove Naish LLP, Statutory Auditor, will be proposed for re[-] Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on** ·····r·f **(i5iz"f"•i_;;··;E_·f:.·· and signed on the board's behalf by:**
## ·················�---·······
**Rev D Bolt - Trustee**
**Page 14**
## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEW TESTAMENT CHURCH OF GOD**
## **Opinion**
We have audited the financial statements of New Testament Church of God (the 'charitable company') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its 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.
## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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 of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
-
Page 15
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEW TESTAMENT CHURCH OF GOD**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements 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 charitable company for the purposes of company law) are responsible for the preparation of the financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company'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.
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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 financial statements.
We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of incoming resources. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing meeting minutes, regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases. We will also review the regulatory correspondence with the Charity Commission.
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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Page 16
**REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF NEW TESTAMENT CHURCH OF GOD**
## **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.
## **A.M.** _cJloJ.._
Andrew Clifford (Senior Statutory Auditor) for and on behalf of DNG Dove Naish LLP, Statutory Auditor Eagle House 28 Billing Road Northampton NN1 5AJ
Date: 26 August 2022
Page 17
## **NEW TESTAMENT CHURCH OF GOD**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021**
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
2
**Charitable activities**
5
Youth & Chrstian Education Dept
Women's Ministr Dept
Men's Ministry Dept
Theological Education & Training Dept
Conventions & Conferences
Goverment grants
Other trading activities
3
Investment income
4
Other income
**Total**
**EXPENDITURE ON**
Raising funds
6
**Charitable activities**
7
Youth & Christian Education Dept
Women's Ministry Dept
Men's Ministry Dept
Theological Education & Training Dept
Conventions & Conferences
Provision of church services
Goverance costs
**Total**
Net gains on investments
**NET INCOME**
**Transfers beteen funds**
21
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forard**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
Restricted
funds
funds
£
£
8,063,081
5,000
27,190
45,783
11,046
4,465
113,019
215,891
74,034
680,136
320,877
9,555,522
5,000
16,228
197,456
170,975
13,673
100,739
191,540
7,143,737
5,000
371,204
8,205,552
5,000
4,103,050
5,453,020
1,996
{,996)
5,455,016
(1,996)
41,958,778
1,996
47,413,794|2021
Total
funds
£
8,068,081
27,190
45,783
11,046
4,465
113,019
215,891
74,034
680,136
320,877
9,560,522
16,228
197,456
170,975
13,673
100,739
191,540
7,148,737
371,204
8,210,552
4,103,050
5,453,020
5,453,020
41,960,774
47,413,794|2020
Total
funds
£
7,885,722
27,612
26,722
10,713
4,049
100,227
281,709
51,997
680,418
36,051
9,105,220
14,162
163,872
146,806
8,924
101,627
111,718
7,119,823
346,857
8,013,789
1,091,431
1,091,431
40,869,343
41,960,774|
|---|---|---|---|
The notes form part of these financial statements
Page 18
## **NEW TESTAMENT CHURCH OF GOD**
## **STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2021**
|Notes
**FIXED ASSETS**
Tangible assets
13
Investment property
14
**CURRENT ASSETS**
Debtor
15
Cash at bank
**CREDITORS**
Amounts falling due within one year
16
**NET CURRENT ASSETS**
**TOT AL ASSETS LESS CURRENT**
**LIABILITIES**
**CREDITORS**
Amounts falling due afer more than one year 17
**NET ASSETS**
**FUNDS**
21
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|2021
2020
Unrestricted
Restricted
Total
Total
funds
funds
funds
funds
£
£
£
£
35,249,666
35,249,666
36,835,616
12,119,000
12,119,000
6,027,750
47,368,666
47,368,666
42,863,366
415,536
415,536
67,156
10,327,066
10,327,066
9,672,270
10,742,602
10,742,602
10,319,426
(1,100,419)
(1,100,419)
(1,15,502)
9,62,183
9,62,183
9,164,924
57,010,849
57,010,849
52,028,290
(9,597,055)
(9,597,055) (10,067,516)
47,413,794
47,413,794
41,960,774
47,413,794
41,958,778
1,996
47,413,794
41,960,774|
|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ..... T[ifo?,ff'.;·2.L] **[·]**[ ····· ][and were signed on its behalf by:]
## �
D Bolt - Trustee
The notes form part of these financial statements
Page 19
## **NEW TESTAMENT CHURCH OF GOD**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021**
|Notes
**Cash flows from operating activities**
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Sale of tangible fxed assets
Interest received
Net cash used in investing activities
**Cash flows from financing activities**
Loan repayments in year
New Hire Purchase contract in year
Net cash used in financing activities
**Change in cash and cash equivalents**
**in the reporing period**
**Cash and cash equivalents at the**
**beginning of the reporing period**
2
**Cash and cash equivalents at the end**
**of the reporing period**
2|2021
£
2,189,348
(230,355)
1,958,993
(1,396,685)
481,537
48,353
(866,795)
(461,993)
(5,635)
(467,628)
624,570
9,489,308
10,113,878|2020
£
2,351,059
(304,396)
2,046,663
(450,346)
16,546
69,326
(364,474)
(1,136,436)
15,027
(1,121,409)
560,780
8,928,528
9,489,308|
|---|---|---|
The notes form part of these financial statements
Page 20
## **NEW TESTAMENT CHURCH OF GOD**
## **NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021**
## 1. **RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERA TING ACTIVITIES**
|1.|**RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OP**
**ACTIVITIES**|**ERA TING**||
|---|---|---|---|
|||2021|2020|
||**Net income for the reporing period (as per the Statement of**|£|£|
||**Financial Activities)**|5,453,020|1,091,431|
||**Adjustments for:**|||
||Depreciation charges|822,367|822,408|
||Gains on investments|(4,103,050)||
||Profit on disposal of fixed assets|(309,469)|(12,537)|
||Interest received|(48,353)|(69,326)|
||Interest paid|230,355|304,396|
||Decrease in debtors|231,620|175,499|
||(Decrease)/increase in creditors|(87,142)|39,188|
||**Net cash provided by operations**|2,189,348|2,351,059|
|**2.**|**ANALYSIS OF CASH AND CASH EQUIVALENTS**|||
|||2021|2020|
|||£|£|
||Notice deposits (less than 3 months)|10,327,066|9,672,270|
||Overdrafts included in bank loans and overdrafts falling due within one|||
||year|(213,188)|{182,962)|
||Total cash and cash equivalents|10,113,878|9,489,308|
## 3. **ANALYSIS OF CHANGES IN NET DEBT**
|**Net cash**
Cash at bank
Bank overdraft
**Debt**
Finance leases
Debts falling due within 1 year
Debts falling due after 1 year
**Total**|At 1/1/21
£
9,672,270
(182,962)
9,489,308
(15,027)
(752,340)
(10,058,124)
(10,825,491)
(1,336,183)|Cash flow
£
654,796
(30,226)
624,570
5,635
(2,833)
464,826
467,628
1,092,198|At 31/12/21
£
10,327,066
(213,188)
10,113,878
(9,392)
(755,173)
(9,593,298)
(10,357,863)
!243,985)|
|---|---|---|---|
The notes form part of these financial statements
Page 21
**NEW TESTAMENT CHURCH OF GOD**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.
New Testament Church of God is a charity, registered in England and Wales. The charity's number and registered office address can be found on the Company Information page. The charity is incorporated in England and Wales and the company number can be found on the Company Information page.
The presentation currency of the financial statements is the Pound Sterling (£).
## **Preparation of consolidated financial statements**
The financial statements are prepared from the accounting records of the national head office together with the branch returns submitted by the Charity's 101 churches. Missions, which are not consolidated, are controlled by a parent church and do not maintain separate accounting records. Each church is responsible for maintaining its own basic accounting records and have separate management or bank accounts. All branch returns are prepared on a receipts and payments basis. The majority of church income is derived from voluntary donations, which, by their nature, cannot be otherwise accounted for. The financial statements now being presented have been prepared from records available. It is the opinion of the Directors that this basis of preparation is not materially different from preparing the accounts on the accrual basis.
## **Significant judgements and estimates**
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below
## **Going concern**
At the time of approving the accounts, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.
## **Tithes, offerings, gifts, and fundraising**
Credit is taken for income from tithes, offerings, gifts and fundraising on a receipts basis, as only once the cash has been received do the Directors believe the three recognition criteria of entitlement, measurement and certainty have been achieved.
Gift aid reclaims on donations are accounted for on an accrual basis. The value of claims submitted and received as paid up to the date of signing have been accrued within debtors (note 15).
## **Registration Fees**
The company accounts for its income from Convention and Conference registration fees on an accrual basis. Income is recognised once the conference has been held and entitlement is assured.
## **Grants Receivable**
Credit is taken for available grants in the year of receipt, when the Church becomes unconditionally entitled to the grant.
continued ...
Page 22
**NEW TESTAMENT CHURCH OF GOD**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Tithes, offerings, gifts, and fundraising**
Government grant income is recognised once the charity has received a formal offer of funding in writing, unless performance conditions required deferral of the amount.
## **Other Income**
All other categories of income are accounted for in the Statement of Financial Activities when the Church is entitled to the income and the income amount can be quantified with reasonable accuracy
## **Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred for head office expenditure and on a payments basis for branches. Expenditure includes VAT which cannot be recovered, and is reported as part of the expenditure to which it relates.
Costs of generating funds comprise the costs associated with attracting voluntary income.
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include the audit fees and costs linked to the strategic management of the Charity.
Costs that are directly attributable are allocated on a charitable activity basis and support costs then added. The Head Office administration and office support costs are apportioned to the charitable activities on the following basis:
Central Administration costs (excluding insurance) based upon approximate transactional volumes. 50% National Office
25% Youth department
25% Women's department Insurance 20% National Office 20% Youth & Christian Education department 20% Women's Ministries department 20% Men's Ministries department 20% Theological Education & Training department
## **Fund Accounting**
General funds are unrestricted funds which are available for use at the discretion of the Directors in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Directors for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Land and Buildings - 2% on cost - Church Furnishings 20% on reducing balance - Fixtures, Fittings and Equipme nt 20% on reducing balance Motor vehicles - 20% on cost
Page 23
continued ...
**NEW TESTAMENT CHURCH OF GOD**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Tangible fixed assets**
Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use. Land is not depreciated. Assets with an individual value of less than £500 are written off to the Statement of Financial Activity as incurred.
## **Investment property**
Investment properties are shown at their fair value as at the year end with any change in value recognised in the Statement of Financial Activities. The Charity will obtain professional valuations for these properties on a cyclical basis so as to minimise the impact on the charity resources.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Foreign currencies**
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
## **Hire purchase and leasing commitments**
Assets acquired under finance leases or hire purchase contracts are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. The value capitalised is equal to the present value of the minimum lease payments agreed under the terms of the lease. Finance charges and interest are taken to the Statement of Financial Activities in constant proportion to the remaining balance of capital repayments or net obligations outstanding. Operating lease rentals are charged to the Statement of Financial Activities on a straight line basis over the lease terms.
## **Pension costs and other post-retirement benefits**
Pension contributions are charged to the Statement of Financial Activities as they occur. These contributions are invested separately from the Company's assets. Any prepaid or outstanding contributions are presented separately within the debtors or creditors note respectively.
## **Financial instruments**
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.
Page 24
continued ...
**NEW TESTAMENT CHURCH OF GOD**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES - continued**
## **Financial instruments**
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
## **Members' Liability**
The company is limited by guarantee and every member of the association undertakes to contribute an amount not exceeding £2 in the event of a deficiency arising on a liquidation of the Company during their membership or within one year of the cessation of their membership
## **2. DONATIONS AND LEGACIES**
|3.
**4.**
2021
£
Tithes and Oferings
6,359,565
Gift Aid reclaim
953,231
Grants, gifts and donations
344,700
Other Voluntary income
410,585
8,068,081
**OTHER TRADING ACTIVITIES**
2021
£
Raising funds from members
67,382
Publication sales
6,652
74,034
**INVESTMENT INCOME**
2021
£
Rental income
631,783
Bank interest received
48,353
680,136|2020
£
5,779,572
1,269,486
446,749
389,915
7,885,722
2020
£
45,743
6,254
51,997
2020
£
611,092
69,326
680,418|
|---|---|
Page 25
continued ...
**NEW TESTAMENT CHURCH OF GOD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **5. INCOME FROM CHARITABLE ACTIVITIES**
|Activity
Youth & Christian
Education
Youth & Christian Education Dept
Women's Ministr Dept
Women's Ministr Dept
Men's Ministry Dept
Men's Ministr Dept
Theological Education &
Training
Theological Education & Training Dept
Conventions &
Conferences
Conventions & Conferences
Grants
Goverment grants
Grants received, included in the above, are as follows:
COVID-19 Grants
**6.**
**RAISING FUNDS**
**Raising donations and legacies**
Publications & Commentaries
7.
**CHARITABLE ACTIVITIES COSTS**
Direct
Costs
£
Youth & Chrstian Education Dept
109,107
Women's Ministr Dept
82,543
Men's Ministry Dept
7,939
Theological Education & Training
Dept
94,975
Conventions & Conferences
191,540
Provision of church services
6,918,685
Goverance costs
1,106
7,405,895||2021
£
27,190
45,783
11,046
4,465
113,019
215,891
417,394
2021
£
215,891
2021
£
16,228
Suppor
costs (see
note 8)
£
88,349
88,432
5,734
5,764
230,052
370,098
788,429|2020
£
27,612
26,722
10,713
4,049
100,227
281,709
451,032
2020
£
281,709
2020
£
14,162
Totals
£
197,456
170,975
13,673
100,739
191,540
7,148,737
371,204
8,194,324|
|---|---|---|---|
|||||
Page 26
continued ...
## **NEW TESTAMENT CHURCH OF GOD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
|**8.**
**SUPPORT COSTS**
Youth & Christian
Education Dept
Women's Ministry Dept
Men's Ministry Dept
Theological Education &
Training Dept
Provision of church
serices
Goverance costs|Staff
Premises
Ofice
Goverance
Costs
Costs
Serices
costs
Totals
£
£
£
£
£
35,176
46,738
6,435
88,349
35,176
46,821
6,435
88,432
5,734
5,734
5,764
5,764
70,352
146,830
12,870
230,052
370,098
370,098
140,704
251,887
25,740
370,098
788,429|
|---|---|
## **9. NET INCOME/(EXPENDITURE)**
Net income/( expenditure) is stated after charging/( crediting):
|Auditors' remuneration
Depreciation - owned assets
Hire of plant and machinery
Surplus on disposal of fixed assets|2021
£
21,600
822,367
156,731
(309,469)|2020
£
24,000
822,408
131,421
(12,537)|
|---|---|---|
## **10. TRUSTEES' REMUNERATION AND BENEFITS**
Included within remuneration is £654,578 (2020: £616,501), excluding benefits in kind, paid to the Executive Trustees in respect of their services as 'Ministers of Religion' as permitted by the constitution of the charity and in common with many churches and similar religious bodies. There are no Trustees receiving remuneration for their role as a Trustee. The total number of Executive Trustees paid in the year was 15 (2020: 12) and the details are as follows:
Some directors who are pastors of a church are also provided with accommodation on a rent free basis to enable them to perform their pastoral duties.
|**Trustee**|**Stipend**|**Employers NI**|**Pension Contributions**|
|---|---|---|---|
|Bishop D Bolt|97,279|12,206|8,400|
|Bishop**M**Cummins|29,939|2,913|898|
|Bishop D A Webley|69,811|8,415|24,066|
|Bishop B Robinson|27,862|3,033|2,400|
|Bishop W Perkins|31,139|3,079|934|
|Bishop R S King|42,530|4,651|1,800|
|Bishop D Allen|19,694|1,906|2,400|
|Bishop W Taylor|30,900|3,045|927|
|Bishop A Parry|42,575|4,657|1,277|
|Bishop L Davis|26,400|2,425|792|
|Bishop E Brown|36,604|4,240|5,674|
|Bishop J Jackson|49,812|5,656|2,400|
|Bishop H McKenzie|9,334|881|280|
|Bishop J Haye|14,802|1,636|444|
|Bishop C Grandison|12,731|1,350|382|
Page 27
continued ...
**NEW TESTAMENT CHURCH OF GOD**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **10. TRUSTEES' REMUNERATION AND BENEFITS - continued**
At 31 December 2021, 12 (2020: 12) directors were accruing retirement benefits under money purchase pension schemes.
## **Trustees'expenses**
The Executive Trustees are reimbursed for reasonable charity business expenses to cover cost of travel to and from meetings. During the year this amounted to £nil (2020: £1,350) paid to O (2020: 8) Trustees.
## **11. STAFF COSTS**
|2021
£
Wages and salaries
2,647,678
Social securty costs
230,006
Other pension costs
118,366
2,996,050|2020
£
2,572,260
220,120
127,367|
|---|---|
||2,919,747|
The average monthly number of employees during the year was as follows:
||2021|2020|
|---|---|---|
|Administration staf|41|33|
|Stipendiary ministers|85|87|
|Non-stipendiary ministers||4|
||126|124|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 **was:**
|The number of employees whose employee benefits (e
£60,000**was:**|xcluding employer pension co|sts) exceeded|
|---|---|---|
||2021|2020|
|£60,001 - £70,000|2|2|
|£70,001 - £80,000|1|1|
|£90,001 - £100,000|1|1|
||4|4|
|||=|
|Directors' remuneration was as follows:|||
||2021|2020|
||£|£|
|Directors' emoluments|1,892,637|1,844,377|
|Directors' pension contributions|89,900|77,095|
||1,982,537|1,921,472|
For the purposes of this disclosure, directors include all Pastors as listed on page 1 of this report. Some directors who are Pastors of a church are also provided with accommodation on a rent free basis to enable them to perform their pastoral duties.
The highest paid director was remunerated as follows:
2021 2020 £ £
Page 28
continued ...
**NEW TESTAMENT CHURCH OF GOD**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **11. STAFF COSTS - continued**
|**STAFF COSTS - continued**|||
|---|---|---|
|Emoluments|97,279|92,961|
|Pension contributions|8,400|8,400|
## **PENSION COSTS / INDEMNITY INSURANCE**
The Company contributes to a number of defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions payable by the company amounted to £118,366 (2020: £127,367). All contributions were paid in the year.
The company paid a premium during the year of £2, 129 (2020:£2, 129) under a professional indemnity insurance policy to protect the company against loss arising from the neglect or default of its Trustees or employees, and to indemnify the Trustees against the consequence of neglect or default on their part. The charity does not provide any other indemnity cover on behalf of the Trustees or Directors.
## **12.**
## **COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|Unrestricted
Restricted
funds
funds
£
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
7,885,722
**Charitable activities**
Youth & Chrstian Education Dept
27,612
Women's Ministry Dept
26,722
Men's Ministry Dept
10,713
Theological Education & Training Dept
4,049
Conventions & Conferences
100,227
Goverment grants
281,709
Other trading activities
51,997
Investment income
680,418
Other income
36,051
**Total**
9,105,220
**EXPENDITURE ON**
Raising funds
14,162
**Charitable activities**
Youth & Christian Education Dept
163,872
Women's Ministry Dept
146,806
Men's Ministry Dept
8,924
Theological Education & Training Dept
101,627
Conventions & Conferences
111,718
Provision of church services
7,119,823
Goverance costs
346,857
**Total**
8,013,789
**NET INCOME**
1,091,431|
Total
funds
£
7,885,722
27,612
26,722
10,713
4,049
100,227
281,709
51,997
680,418
36,051
9,105,220
14,162
163,872
146,806
8,924
101,627
111,718
7,119,823
346,857
8,013,789
1,091,431|
|---|---|
Page 29
continued ...
## **NEW TESTAMENT CHURCH OF GOD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
|**12.**|**COMPARATIVES FOR THE STATEMENT**|**COMPARATIVES FOR THE STATEMENT**|**OF FINANCIAL ACTIVITIES - continued**|**OF FINANCIAL ACTIVITIES - continued**|**OF FINANCIAL ACTIVITIES - continued**||
|---|---|---|---|---|---|---|
|||||Unrestricted|Restricted|
Total|
|||||funds|funds|funds|
|||||£|£|£|
||**RECONCILIATION OF FUNDS**||||||
||**Total funds brought forard**|||40,867,347|1,996|40,869,343|
||**TOTAL FUNDS CARRIED**|**FORWARD**||41,958,778|1,996|41,960,774|
|**13.**|**TANGIBLE FIXED ASSETS**||||||
|||||Fixtures,|||
|||||Fittings|||
|||||and|||
|||Land and|Church|Equipme|Motor||
|||Buildings|Furnishings|nt|vehicles|Totals|
|||£|£|£|£|£|
||**COST**||||||
||At 1 January 2021|45,190,428|175,179|864,437|629,529|46,859,573|
||Additions|1,138,711|7,306|237,668|13,000|1,396,685|
||Disposals|(220,936)|||(20,175)|(241,111)|
||Reclassification|{2,357,067)||||{2,357,067)|
||At 31 December 2021|43,751,136|182,485|1,102,105|622,354|45,658,080|
||**DEPRECIATION**||||||
||At 1 January 2021|8,922,109|103,071|447,925|550,852|10,023,957|
||Charge for year|629,264|15,883|130,835|46,385|822,367|
||Eliminated on disposal
Reclassification/transfer|(48,868)
{68,867)|||(20,175)|(69,043)
{368,867)|
||At 31 December 2021|9,133,638|118,954|578,760|577,062|10,408,414|
||**NET BOOK VALUE**||||||
||At 31 December 2021|34,617,498|63,531|523,345|45,292|35,249,666|
||At 31 December 2020|36,268,319|72,108|416,512|78,677|36,835,616|
Page 30
continued ...
**NEW TESTAMENT CHURCH OF GOD**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **13. TANGIBLE FIXED ASSETS - continued**
|Analysis of net book value of land and buildings:
Freehold
Long leasehold
Stated at historical cost
Valuation made 1970 to 1980
Valuation made in 1999
Freehold
2021
£
34,014,693
2,408,430
5,532,703
41,955,826|Long
Leasehold
2021
£
601,352
702,529
491,429
1,795,310|2021
£
33,523,533
1,093,965
34,617,98
Freehold
2020
£
35,398,777
2,408,430
5,587,911
43,395,118|||2020
£
35,137,749
1,130,570
36,268,319
Long
Leasehold
2020
£
601,352
702,529
491,429
1,795,310|
|---|---|---|---|---|---|
|||||||
|||||||
The historical cost of assets included at valuation at the balance sheet date is £34,616,044 (2020: £36,000,129), and the depreciation based on historical cost would be £567,440.
The net book value of tangible fixed assets includes £16,641 (2020: £22,188) in respect of assets held under hire purchase contracts.
## **14. INVESTMENT PROPERTY**
|**INVESTMENT PROPERTY**||
|---|---|
||£|
|**FAIR VALUE**||
|At 1 January 2021|6,027,750|
|Revaluation|4,103,050|
|Reclassification|1,988,200|
|At 31 December 2021|12,119,000|
|**NET BOOK VALUE**||
|At 31 December 2021|12,119,000|
|At 31 December 2020|6,027,750|
Due to the costs associated with valuing these properties it is intended that professional valuations will be carried out on a cyclical basis so as to minimise the impact on charity resources.
During the year, independent valuations were carried out on seven of the properties and the total value of these properties was £3,940,000. The remainder of the properties, totalling £8,179,000, were valued by the trustees having regard to relevant market data.
Investment properties are stated at market value at the year end. The cost of the investment is £6,477,861.
Page 31
continued ...
**NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
|**15.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Gift Aid due
Other debtors
Prepayments and accrued income
**16.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YER**
Bank loans and overdrafts ( see note 18)
Hire purchase (see note 19)
Trade creditors
Other creditors
Accruals and deferred income|2021
£
133,490
272,079
9,967
415,536
2021
£
968,361
5,635
23,567
102,856
1,100,419||
|---|---|---|
Deferred income relates to income received before the year end which relates to activities taking place in the next financial year.
|Balance as at 31 December 2020
Amount released to incoming resources
Amount deferred in year
Balance as at 31 December 2021
£
32,133
(32,133)
5,531
5,531
**17.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
Bank loans (see note 18)
Hire purchase (see note 19)
**18.**
**LOANS**
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank overdrafts
Bank loans
Amounts falling due between to and five years:
Bank loans - 2-5 years
2021
£
9,593,298
3,757
9,597,055
2021
£
213,188
755,173
968,361
3,092,024|Balance as at 31 December 2020
Amount released to incoming resources
Amount deferred in year
Balance as at 31 December 2021
£
32,133
(32,133)
5,531
5,531
**17.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
Bank loans (see note 18)
Hire purchase (see note 19)
**18.**
**LOANS**
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank overdrafts
Bank loans
Amounts falling due between to and five years:
Bank loans - 2-5 years
2021
£
9,593,298
3,757
9,597,055
2021
£
213,188
755,173
968,361
3,092,024|Balance as at 31 December 2020
Amount released to incoming resources
Amount deferred in year
Balance as at 31 December 2021
£
32,133
(32,133)
5,531
5,531
**17.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
Bank loans (see note 18)
Hire purchase (see note 19)
**18.**
**LOANS**
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank overdrafts
Bank loans
Amounts falling due between to and five years:
Bank loans - 2-5 years
2021
£
9,593,298
3,757
9,597,055
2021
£
213,188
755,173
968,361
3,092,024|Balance as at 31 December 2020
Amount released to incoming resources
Amount deferred in year
Balance as at 31 December 2021
£
32,133
(32,133)
5,531
5,531
**17.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
Bank loans (see note 18)
Hire purchase (see note 19)
**18.**
**LOANS**
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank overdrafts
Bank loans
Amounts falling due between to and five years:
Bank loans - 2-5 years
2021
£
9,593,298
3,757
9,597,055
2021
£
213,188
755,173
968,361
3,092,024|2020
£
10,058,124
9,392
10,067,516
2020
£
182,962
752,340
935,302
3,160,919|
|---|---|---|---|---|
||||||
||||2021
£
213,188
755,173
968,361
3,092,024||
||||||
Page 32
continued ...
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **NEW TESTAMENT CHURCH OF GOD**
## **18. LOANS - continued**
2021 2020 £ £ Amounts falling due in more than five years: Repayable by instalments: Bank loans more 5 yr by instal 6,501,274 6,897,205
Amounts falling due in more than five years:
## **19. LEASING AGREEMENTS**
Minimum lease payments fall due as follows:
|Net obligations repayable:
Within one year
Beteen one and five years
Within one year
Beteen one and five years
In more than five years|Hire purchase contracts
2021
2020
£
£
5,635
3,757
9,392
5,635
9,392
15,027
Non-cancellable
operating leases
2021
2020
£
£
10,500
10,500
42,000
42,000
994,000
1,004,500
1,046,500
1,057,000|
|---|---|
The operating lease disclosed above relates to a property leased over 125 years from 1997.
## **20. SECURED DEBTS**
The following secured debts are included within creditors:
|Bank loans
Hire purchase contracts||2021
£
10,348,471
9,392
2020
£
10,810,464
15,027
10,357,863
10,825,491|
|---|---|---|
||||
Bank loans, which total £10,348,471 (2020: £10,810,464) consist of a number of loans to local churches and National Head Office, which are subject to rates of interest of between Base or Libor Rate plus 1.25% and 3%. Loans to the value of £10,286,733 (2020: £10,780,775) are secured by legal charges against a list of nominated properties. Up to the end of 2006, security was provided on the basis of a pool of assets but subsequent loans have been secured on the specific assets to which the loan relates.
The net book value of the assets given as security for these loans and included in fixed assets is £18,943,283 (2020: £19,323,564).
The Hire Purchase contract is secured on the asset to which it relates.
Page 33
continued ...
## **NEW TESTAMENT CHURCH OF GOD**
## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **21. MOVEMENT IN FUNDS**
|**Unrestricted funds**
General fund
National Facility Fund
Revaluation Resere
**Restricted funds**
Haiti Appeal
**TOTAL FUNDS**|At 1/1/21
£
35,073,746
514,399
6,370,633
41,958,778
1,996
41,960,774|Net
movement
in funds
£
1,349,970
4,103,050
5,453,020
5,453,020|
Transfers
between
funds
£
1,996
1,996
(1,996)|At
31/12/21
£
36,425,712
514,399
10,473,683
47,413,794
47,413,794|
|---|---|---|---|---|
Net movement in funds, included in the above are as follows:
|Incoming
resources
£
**Unrestricted funds**
General fund
9,555,522
Revaluation Resere
9,555,522
**Restricted funds**
Viru Motors
5,000
**TOTAL FUNDS**
9,560,522|Resources
expended
£
(8,205,552)
(8,205,552)
(5,000)
!8,210,552)|Gains and
Movement
losses
in funds
£
£
1,349,970
4,103,050
4,103,050
4,103,050
5,453,020
4,103,050
5,453,020|
|---|---|---|
## **Comparatives for movement in funds**
|**Unrestricted funds**
General fund
National Facility Fund
Revaluation Resere
**Restricted funds**
Haiti Appeal
**TOTAL FUNDS**|At 1/1/20
£
33,982,315
514,399
6,370,633
40,867,347
1,996
40,869,343|Net
movement
in funds
£
1,091,431
1,091,431
1,091,431|
At
31/12/20
£
35,073,746
514,399
6,370,633
41,958,778
1,996
41,960,774|
|---|---|---|---|
Page 34
continued ...
**NEW TESTAMENT CHURCH OF GOD**
**NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2021**
## **21. MOVEMENT IN FUNDS - continued**
Comparative net movement in funds, included in the above are as follows:
|Incoming
resources
£
**Unrestricted funds**
General fund
9,105,220
**TOTAL FUNDS**
9,105,220
Resources
expended
£
(8,013,789)
{8,013,789)|Movement
in funds
£
1,091,431
1,091,431|
|---|---|
The Haiti Appeal Fund represents monies received specifically towards the Haiti disaster and all the branches sent the monies to the National office.
The Virtu Motors fund is to be used in the redevelopment of a specific area for food bank purposes.
The Directors have formulated and implemented specific procedures with a view to ensuring that all restricted funds are identified and correctly maintained on an on-going basis.
## **Transfers between funds**
Transfers between funds have been carried out due to the revaluation of the investment properties held by the charity last year and the payment of expenses from the general fund in a prior year that were in relation to the Haiti Fund.
## **22. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 December 2021.
## **23. OPERA TING LEASES - LESSOR**
Minimum lease receipts under non-cancellable operating leases fall due as follows:
|Within one year
Beteen on and five years
In more than five years|2021
£
132,783
244,166
30,000
406,950|2020
£
130,117
210,700
43,000
383,817|
|---|---|---|
Page 35
## **NEW TESTAMENT CHURCH OF GOD**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|2021
£
**INCOME AND ENDOWMENTS**
**Donations and legacies**
Tithes and Offerings
6,359,565
Gift Aid reclaim
953,231
Grants, gifts and donations
344,700
Other Voluntary income
410,585
8,068,081
**Other trading activities**
Raising funds from members
67,382
Publication sales
6,652
74,034
**Investment income**
Rental income
631,783
Bank interest received
48,353
680,136
**Charitable activities**
Grants
215,891
Youth & Christian Education
27,190
Women's Ministr Dept
45,783
Men's Ministr Dept
11,046
Theological Education & Training
4,465
Conventions & Conferences
113,019
417,394
**Other income**
Gain on sale of tangible fixed assets
309,469
Insurance proceeds
11,408
320,877
**Total incoming resources**
9,560,522
**EXPENDITURE**
**Raising donations and legacies**
Publications & Commentaries
16,228
**Charitable activities**
Wages
2,232,294
Social security
187,119
Carried forard
2,419,413|2020
£
5,779,572
1,269,486
446,749
389,915
7,885,722
45,743
6,254
51,997
611,092
69,326
680,418
281,709
27,612
26,722
10,713
4,049
100,227
451,032
36,051
36,051
9,105,220
14,162
2,230,983
181,989
2,412,972|
|---|---|
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Page 36
## **NEW TESTAMENT CHURCH OF GOD**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|2021
£
**Charitable activities**
Brought forard
2,419,413
Pensions
95,756
Hire of plant and machinery
106,883
Rates and water
422,092
Insurance
202,285
Telephone
108,645
Postage and stationery
54,552
Adverising
32,976
Sundries
166,918
Travelling
115,209
Staf Welfare & Training
57,064
Legal & Professional
92,883
Repairs & Maintenance
1,175,532
Motor Expenses
69,449
Rent
95,947
Admin Work
95,783
Computer Expenses
76,683
Gifts
480,816
Religious Activities
222,222
Deparment Expenditure
97,280
Event Costs
164,785
Depreciation of tangible fixed assets
822,367
Bank loan interest
230,355
7,405,895
**Suppor costs**
**Staf Costs**
Wages
125,718
Social security
14,986
140,704
**Premises Costs**
Hire of plant and machinery
49,848
Rates and water
28,352
Insurance
32,343
Light and heat
13,750
Bank charges
59,731
Repairs & Maintenance
45,572
Computer Expenses
22,291
251,887
**Ofice Services**
Telephone
19,800
Postage and stationery
5,940
25,740|2020
£
2,412,972
106,766
110,049
457,935
195,189
104,665
52,553
10,876
133,139
87,597
40,076
257,190
1,155,546
81,480
116,337
74,371
71,953
363,165
192,942
51,138
102,027
822,408
304,396
7,304,770
75,173
8,997
84,170
21,372
33,077
32,614
11,516
56,456
65,703
17,737
238,475
19,186
6,169
25,355|
|---|---|
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Page 37
## **NEW TESTAMENT CHURCH OF GOD**
## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Ofice Serices**
**Governance costs**
Wages
Social security
Pensions
Auditors' remuneration
Telephone
Travel
Total resources expended
**Net income before gains and losses**
**Realised recognised gains and losses**
Unrealised gains/losses on investment
property
**Net income**||2021
£
289,666
27,901
22,610
21,600
1,106
7,215
370,098
8,210,552
1,349,970
4,103,050
5,453,020||2020
£
266,104
29,134
20,601
24,000
1,069
5,949|
|---|---|---|---|---|
|||||346,857|
|||||8,013,789|
|||||1,091,431|
|||||1,091,431|
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Page 38