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2021-03-31-accounts

Charity Registration No. 292082

UNIVERSAL PENTECOSTAL CHURCH

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

UNIVERSAL PENTECOSTAL CHURCH

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2021

Trustees Pastor Vaithialingam Rudran Sister Rachel George Mr Mark Jeyaseelan Abraham (Deceased 10/8/2021) Mrs Folasade Lawson Brother Asharoshan Selvarajah Chandradarshan (Resigned 17/1/2021) Brother John Nallathambi Thyagarajan (Appointed 17/1/2021) Dr Bessy Joseph (Appointed 12/10/2021) President Pastor Vaithialingam Rudran Secretary Sister Rachel George Treasurer Pastor Asharoshan Selvarajah Chandradarshan (Resigned 17/1/2021) Brother John Nallathambi Thyagarajan (Appointed 17/1/2021) Charity number 292082 Principal address 20 Acre Lane Brixton London SW2 5SG Independent Lake & Co Auditors Chartered Accountants and Registered Auditors 25A Kenton Park Parade Kenton Harrow Middlesex HA3 8DN Bankers Lloyds Bank plc 3 St Georges Road Wimbledon London SW19 8AQ Solicitors McGlennons Solicitors 157 Arthur Road London SW19 8AD

UNIVERSAL PENTECOSTAL CHURCH INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

PAGE NO.
1 - 7 TRUSTEES' ANNUAL REPORT
8 - 11 INDEPENDENT AUDITORS' REPORT
12 STATEMENT OF FINANCIAL ACTIVITIES
13 BALANCE SHEET
14 CASH FLOW STATEMENT
15 - 21 NOTES TO THE FINANCIAL STATEMENTS

UNIVERSAL PENTECOSTAL CHURCH

TRUSTEES' ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the financial statements of the Charity for the year ended 31 March 2021. It contains the following items:

The annual report of the Charity explaining the activities undertaken in the year, how the Charity met its public benefit objectives and the way the Church is managed.

The annual financial statement for the year ended 31 March 2021, together with the related notes to the accounts.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's Constitution, Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard 102.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Charity is governed by the Governing Board of Trustees constituted in accordance with The Constitution of the Universal Pentecostal Church, filed with the Charity Commission.

The Governing Board of Trustees consists of three Ministers of the Church and two lay members appointed by the President.

According to the Constitution, the Ministers who serve the Church shall be men and women who have lived as believers with a good report in the Church, are Spirit-baptised and have dedicated themselves to full time service in the Church. They have resigned from all secular employment and own no possessions. The Ministers shall do voluntary service, receiving no remuneration in the form of salary. The Ministers are maintained and looked after by the Church.

The lay members of the Church consist of such adults who have repented for their sins and received remission of sin and have taken immersion baptism at the hands of a Spirit-baptised Minister and accept the Doctrines, Practices and Constitution of the Church. The two Trustees are appointed by the President, from among the lay members, based on their experience.

The Universal Pentecostal Church has its principal church in Brixton with six branches at North London, East London, Southall, Leicester, Liverpool and Newport. Each branch church is operated by a Minister appointed by the President to look after the spiritual welfare of its believers and to manage its operations at local level.

The governance and conduct of affairs of the Charity are vested in the Governing Board of Trustees. The Trustees are aware of their responsibilities as Charity Trustees and collectively get independent professional advice in areas such as governance, the law and finance. This is either on a pro-bono basis or at the Charity's expense if needed for the Board of Trustees to discharge its duties.

1

UNIVERSAL PENTECOSTAL CHURCH

TRUSTEES' ANNUAL REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

The Universal Pentecostal Church is an international church. The international headquarters is in India. Apart from India and Britain, it has established itself in other parts of Europe, America, Canada, Africa, the Far East and Australasia.

The major risks to which the Charity is exposed, as identified by the Trustees, have been reviewed, and procedures have been established to manage those risks.

OBJECTIVES AND ACTIVITIES

Objects

The object of the Church as set out in The Constitution is furtherance of the Christian Faith through the spread of the Gospel of Jesus Christ as found in the Holy Bible and to provide good living by Christian values and knowledge.

Aims

In order to fulfill its objects, the Universal Pentecostal Church aims to :

Facilitate the worship of Almighty God through its services and the teachings of Jesus Christ and to provide for the needs of its believers.

Preserve the practice of Christianity found in the Gospel of Jesus Christ so that it will remain available to people everywhere.

Protect the standards and values of the Church.

Encourage peace, harmony and understanding between people regardless of their age or ethnic origin.

Make freely available information on the teachings of Jesus Christ.

Activities during the year

When planning our activities for the year the Trustees have considered the Charity Commission guidance on public benefit and in particular, the specific guidance on Charities for the Advancement of Religion.

The main activities during the year were its religious and spiritual services conducted by Ministers and lay members for the benefit of its believers, well wishers and the public.

The Church has regular gatherings for all on Saturday, Sunday and on other days of the week. These events are conducted in halls owned by the Church and other rented venues. At present, the Church owns halls at Brixton, Leicester, North London, Newport and Liverpool. All meetings are open to the public and we welcome people regardless of their beliefs or social status.

2

UNIVERSAL PENTECOSTAL CHURCH

TRUSTEES' ANNUAL REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

Due to the pandemic from the last week of March 2020, until the second week of August 2020, church gatherings were cancelled: However, church members were contacted and counselled during the period of lockdown. As families, they were requested to gather in their homes for prayers and in addition, messages of Bible Truths were sent weekly by e-mail for their spiritual growth and enlightenment..

House Groups

Every month the Church minister conducts gatherings for isolated believers. The Church sees these ministries as an encouragement for the believers and an opportunity to plant a new full time ministry.

These meetings were put on hold because of the lockdown and have not resumed as yet.

Old Peoples Home Visits

The Ministers of the Church visit retirement homes, nursing homes and hospices regularly for the spiritual welfare of the residents and the staff there. These visits enable the elderly to feel that they are part of the community, and not cut-off from the outside world.

These visits were curtailed as stipulated by government orders and by the administrators of the Elderly and Nursing Homes.

European Ministry

The Church has a regular programme to introduce its believers to those in other European countries and to conduct meetings there. They share the Good News of the Gospel and give personal testimonies of how the Lord Jesus has transformed their lives. Many who attend are in need of comfort and assurances that there is a living God who is alive and understands how they feel and answers their prayers. Some believers are lonely as they have had to flee their own countries, friends and relatives and are in need of the knowledge of the reality of the presence of God and His love for them.

The visits to Europe were cancelled due to the pandemic and ensuing travel restrictions.

Revival Meetings and Conventions

The Church organises Revival Meetings and Conventions annually to introduce Jesus Christ and His teachings to those who are not aware of His precious words of life and truth, of forgiveness and peace.

However, due to the Covid-19 pandemic and the government restrictions on gatherings all Revival Meetings (usually held in Ireland, Hanover, Genoa, Denmark, Newport, Berne) and the Annual Conventions (Leicester, Longwy, Germany, Switzerland, Paris, and London) were cancelled.

3

UNIVERSAL PENTECOSTAL CHURCH

TRUSTEES' ANNUAL REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

Religious Camps

During the year the Church organised: Young Adults Camp (ages 26 - 46), Youth and Teens Camp (ages 13 - 25) and Mini Camp (ages 8 - 12). The Camps conduct activities which are spiritual, religious and based on the Bible teachings. The Camps and facilities were made available to everyone without any charge. However, this year we were unable to hold the Camps, due to the Covid-19 virus pandemic.

Sunday classes for various age groups

Each Sunday there are classes for children and youth (ages 3 - 25), young adults ( ages 26 - 45) and for the adults. The Ministers impart knowledge on the Bible teachings, which include restoring Christian values and standards, with a desire that young people will grow up to be good examples to others and to be faithful citizens. This work went on unhindered, as we were able to communicate with the children and send them lessons via e-mail. Their response was very encouraging.

Counselling

The Charity provides faith based counselling required within the family unit for youth and young adults. This proved very helpful in these distressing times.

Magazine Ministry

The Charity publishes and circulates quarterly magazines which contains spiritual articles, Bible studies and testimonies. The publication was temporarily on hold and will be resumed in the last quarter of this year.

Volunteers

All the charitable activities of the Universal Pentecostal Church are carried out by Ministers and members of the Church, who volunteer their services. They assist with the day to day operation of the Church, Conventions, Revival Meetings, Camps and various other spiritual activities and events taking place. The total number of Ministers are 35 in the UK..

ACHIEVEMENTS, PERFORMANCE, AND FINANCIAL REVIEW

Each branch Church manages its own financial affairs with income being derived from its believers by way of donations given freely. The Charity provides for the maintenance of its churches and for the well-being of its Ministers and volunteers.

The Statement of Financial Activities shows net surplus for the year of £1,069,253 (2020: £450,952). The principal source of income is voluntary donations received from its believers and members of the Churches. The Church gave donations toward missionary work totalling £12,220 (2020: £128,031), principally to our our sister churches in Europe and Africa. Donations received from our sister church in Switzerland have been offset against the contributions given towards missionary work in the year of receipt.

4

UNIVERSAL PENTECOSTAL CHURCH

TRUSTEES' ANNUAL REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

The Statement of Financial Activities and Income and Expenditure shows an overall net surplus for the year of £1,069,253 (2020: £450,952).

The total unrestricted funds at the year end amounted to £9,748,750 (2020: £8,679,497).

During the year, the Church carried out major refurbishment works to its Brixton property. Other maintenance works have been undertaken during the year at all churches, so that the buildings continue to function and be compliant in accordance with statutory regulations.

Reserves policy

Our reserves policy mandates an adequate level of funds to be held by all church branches. This is to ensure that the Church is able to discharge its financial commitments, day to day operations, sustain the upkeep of the Church properties and to provide for the needs of the Ministers and the volunteers over the short term. Surplus funds are passed on to the principal church in Brixton as tithes or inter church donations. The Charity invests funds in short term deposits with the Bank which earns interest.

The Board of Trustees are mindful of the need to acquire additional halls suitable for its Ministers and members to practise their faith, and constantly review the adequacy of their buildings as places of worship.

The Church continues to support its churches abroad.

During the pandemic, the Church helped the Food Bank, the Homeless Charities and supported the needy members of the Church. Various members of the Church helped the community around them in different ways with packing and distribution of food bags etc..

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Funding sources

Principal funding sources continue to be voluntary unrestricted donations from its members and donors.

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three to six months expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity's current activities. The level of reserves has been maintained throughout the year.

5

UNIVERSAL PENTECOSTAL CHURCH

TRUSTEES' ANNUAL REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

Donations made under Gift Aid by tax paying members benefit the Charity with an extra £25 tax refund for every £100 donated. The tax recovered from the Gift Aid scheme amounted to £130,211 (2020: £130,999) out of total donations received of £1,492,543 (2020: £1,454,157) during the year.

Post Balance Sheet Events

The Board of Trustees have since the year end paid a sum of £150,000 to a sister church in the Republic of Ireland in order to assist them in acquiring a freehold property to accommodate the Ministers helping at the church.

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

6

UNIVERSAL PENTECOSTAL CHURCH

TRUSTEES' ANNUAL REPORT (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

In so far as the Trustees are aware:

i) there is no relevant audit information of which the Charity's auditors are unaware; and

ii) 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.

On behalf of the Board of Trustees

…………………………………….

Sister Rachel George Secretary Dated : 24 January 2022

7

UNIVERSAL PENTECOSTAL CHURCH

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF UNIVERSAL PENTECOSTAL CHURCH

Opinion

We have audited the financial statements of Universal Pentecostal Church (the "Charity") for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance Sheet, the Statement of cash flows and the related notes 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, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

8

UNIVERSAL PENTECOSTAL CHURCH

INDEPENDENT AUDITOR'S REPORT (Continued)

TO THE TRUSTEES OF UNIVERSAL PENTECOSTAL CHURCH

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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 Auditors' Report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If based on the work we have performed we conclude that there is a material misstatement of this other information then we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Charities Act 2011 requires us to report to you if, in our opinion:

9

UNIVERSAL PENTECOSTAL CHURCH

INDEPENDENT AUDITOR'S REPORT (Continued)

TO THE TRUSTEES OF UNIVERSAL PENTECOSTAL CHURCH

Responsibilities of Trustees

As explained more fully in the Trustees' responsibilities statement set out on pages 1 - 6, the Trustees 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 Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Our responsibility is to audit and to express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standard for Auditors, including "APB Ethical Standard - Provisions Available for Small Entities (Revised)", in the circumstances set out in note 13 to the financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's webiste at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud irregularities including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISA's (UK).

10

UNIVERSAL PENTECOSTAL CHURCH

INDEPENDENT AUDITOR'S REPORT (Continued)

TO THE TRUSTEES OF UNIVERSAL PENTECOSTAL CHURCH

Use of our report

This report is made solely to the Charity's Trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity's Trustees 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 Charity and the Charity's Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

SATISH LAKHANI (Senior Statutory Auditor)

for and on behalf of

Lake & Co

Registered Auditors & Chartered Accountants 25A Kenton Park Parade, Kenton, Middx HA3 8DN

Date: 24 January 2022

Lake & Co is eligible for appointment as auditors of the Charity by virtue of its ability for appointment as auditors of a company under Section 1212 of the Companies Act 2006.

11

UNIVERSAL PENTECOSTAL CHURCH

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Incoming resources from generated funds
Donations and gifts
2
Investment income
3
Other (expenses) resources
4
Total incoming resources
Resources expended
Charitable activities
Charitable activities expenditure
5
Governance costs
5
Total resources expended
Net incoming resources for the year
Net movement in funds
10
Reconciliation of Funds
Fund balances at 1 April 2020
Fund balances at 31 March 2021		 Unrestricted
Unrestricted
Total
Total
2021
2020
£
£
1,492,543
1,454,157
997
8,931
1,493,540
1,463,088
890
-
1,958
-
1,492,650
1,461,130
383,027
991,678
40,370
18,500
423,397
1,010,178
1,069,253
450,952
1,069,253
450,952
7,833,657
7,382,705
8,902,910
7,833,657

12

UNIVERSAL PENTECOSTAL CHURCH

BALANCE SHEET

Fixed assets
Tangible assets
Current assets
Debtors
Cash at bank and in hand
Creditors
Amounts falling due within one year
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds
Total Charity funds		 Notes
£
£
£
£
6
7,456,892
6,969,466
7
152,472
183,616
8
2,164,736
1,546,665
2,317,208
1,730,281
9
25,350
-
20,250
-
2,291,858
1,710,031
9,748,750
8,679,497
10
9,748,750
8,679,497
9,748,750
8,679,497
AS AT 31 MARCH 2021
2021
2020		 Notes
£
£
£
£
6
7,456,892
6,969,466
7
152,472
183,616
8
2,164,736
1,546,665
2,317,208
1,730,281
9
25,350
-
20,250
-
2,291,858
1,710,031
9,748,750
8,679,497
10
9,748,750
8,679,497
9,748,750
8,679,497
AS AT 31 MARCH 2021
2021
2020		 Notes
£
£
£
£
6
7,456,892
6,969,466
7
152,472
183,616
8
2,164,736
1,546,665
2,317,208
1,730,281
9
25,350
-
20,250
-
2,291,858
1,710,031
9,748,750
8,679,497
10
9,748,750
8,679,497
9,748,750
8,679,497
AS AT 31 MARCH 2021
2021
2020
Notes
6
7
8
9
10
2,317,208
25,350
-
8,679,497
8,679,497
8,679,497

Approved by the board of trustees on 24 January 2022

……………………………………………………… President

Pastor Vaithialingam Rudran

13

UNIVERSAL PENTECOSTAL CHURCH

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2021

Total
funds
31/3/2021
£
Cash flows from operating activities:
Net cash provided by operating activities
1,149,839
Cash flows from investing activities:
Proceeds from sale of fixed asssets
18,160
Purchase of property, plant & equipment
549,918
-
Net cash provided by (used in) activities
618,081
Change in cash and cash equivalents in the
reporting period
618,081
Reconciliation of net income/(expenditure)
to net cash flow from operating activities
Net income/(expenditure) for the reporting
period as per statement of financial activities
1,069,253
Adjustments for:
Depreciation charges
43,452
Loss/(profit) on sale of fixed assets
890
(Increase)/decrease in debtors
31,144
Increase/(decrease) in creditors
5,100
Net cash provided by (used) in operating
activities
1,149,839		 Prior Year
funds
31/3/2020
£
465,033
8,065
783,111
-
310,013
-
310,013
-
450,953
46,950
1,958
32,043
-
2,785
-
465,033

14

UNIVERSAL PENTECOSTAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 ACCOUNTING POLICIES

1.1 Accounting conventions and basis of preparation

The accounts have been prepared in accordance with:

(a) FRS102, The Financial Reporting Standard applicable in the UK, The Statement of Recommended Practice applicable to charities preparing their accounts with Financial Reporting Recommended Standard in the UK (FRS102) and Charities SORP (FRS102).

(b) The Charities Act 2011

(c) The historic cost basis of accounting, as modified by the revaluation of certain financial assets and liabilities measured at fair value through income and expenditure.

The financial statements are prepared in Sterling which is the functional currency of the entity.

1.2 Fund accounting

Unrestricted funds are funds that can be used for any purpose within the Charity's objectives or at the discretion of the Trustees in furtherance of the general objectives of the Charity.

Restricted funds are subject to restrictions on their expenditure imposed by the donor. The Charity has not received restricted funds during the year.

1.3 Incoming resources

Incoming resources are included in the Statement of Financial Activities when the Charity is entitled to the income and it can be quantified with reasonable certainty. No amounts are included in the financial statements for services donated by the volunteers.

Voluntary income

Voluntary income is received by way of donations, gifts and grants and are accounted for when funds are received. Grants where entitlement is not conditional on the delivery of a specific performance of the Charity are recognised when the Charity becomes unconditionally entitled to the grant.

Gift Aid is included in the financial statements based on amounts recoverable at the balance sheet date.

Investment income

Investment income is accounted for on an accruals basis.

Other incoming resources

Profit on sale of fixed assets has been recognised on exchange of a non-conditional contract.

15

UNIVERSAL PENTECOSTAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

1.4 Resources expended

Expenditure is accounted for on an accrual basis and is classified under the relevant activity within the Statement of Financial Activities. Irrecoverable VAT is included within the expense item to which it relates. Resources expended comprise of:

Costs of generating funds

The cost of generating voluntary income represent central support costs, directly attributable overheads and those costs of an indirect nature necessary to support them. Missionary work expenses and donations includes support for the churches abroad and where such support is then returned, this is off set against cost in the year of receipt.

Governance costs

Governance costs are costs associated with meeting the constitutional and statutory requirements of the Charity including audit fees, professional fees and are linked to strategic management of the Charity.

1.5 Tangible fixed assets and depreciation

Tangible fixed assets other than freehold land and building are stated at cost less depreciation. Only assets over £500 are capitalised. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings & equipment 15% per annum on reducing balance basis Motor vehicles 25% per annum on reducing balance basis

No depreciation is provided on freehold land and building used for the Charity's activities. It is the Charity's policy to maintain these properties in continuous state of sound repair and to improve the properties from time to time, and accordingly, it is considered that the anticipated useful life of the properties is such that any charge for depreciation would be insignificant.

1.6 Taxation

The activities of the Charity are exempt from corporation tax under section 505 of the Income and Corporation Taxes Act 1988 to the extent that they are applied to the organisation's charitable objects.

16

UNIVERSAL PENTECOSTAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

1.7 Going concern

Based on the Charity's current financial position and ongoing nature of its activities there are no material uncertainties about the Charity's ability to continue as a going concern.

1.8 Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

1.9 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.

2 Donations and gifts: Unrestricted funds

Donations and gifts
Gift Aid donations
3
Investment income
Interest receivable
4
Other incoming resources
Net (Loss) on disposal of fixed assets		 2021
£
1,362,332
130,211
1,492,543
2021
£
997
2021
£
890
-		 2020
£
1,323,158
130,999
1,454,157
2020
£
8,931
2020
£
1,958
-

17

UNIVERSAL PENTECOSTAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

5 a) Total resources expended: Unrestricted funds

5 b)
5 c)		 Missionary
work &
donations
£
Charitable activities
Charitable activities expenditure
Missionary work and donations (UK & overseas)
12,220
Activities undertaken directly (see below)
-
12,220
Governance costs(see below)
-
12,220
Total resources expended: Unrestricted funds (continued)
Direct charitable expenditure
Faith Homes household expenses
Motor and travelling expenses
Rent & rates
Insurance
Repairs & renewals
Light & heat
Literature & publications
Printing, post and stationery
Telephone
Bank charges
Depreciation
Governance costs
Auditors Remuneration
Legal and professional fees		 Missionary
work &
donations
£
12,220
-		 Charitable
Total
expenditure
2021
£
£
-
12,220
370,807
370,807		 Total
2020
£
128,031
863,647
12,220 370,807
383,027		 991,678
- 40,370
40,370		 18,500
12,220 411,177
423,397		 1,010,178
2021
£
88,365
49,840
41,776
14,134
65,681
40,635
4,046
6,626
16,009
243
43,452
370,807
2021
£
24,000
16,370
40,370		 2020
£
177,869
202,168
221,986
12,790
115,274
44,706
11,073
11,573
18,744
513
46,950
863,647
2020
£
18,000
500
18,500

18

UNIVERSAL PENTECOSTAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

6 Tangible fixed assets

Tangible fixed assets
Cost:
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation:
At 1 April 2020
Charge for year
Disposals
At 31 March 2021
Net Book Value:
At 31 March 2021
At 31 March 2020		 Freehold
Fixtures,
land and
fittings &
Motor
buildings
equipment
vehicles
Total
£
£
£
£
6,789,101
349,286
159,163
7,297,550
401,661
55,363
92,894
549,918
-
-
54,372
-
54,372
-
7,190,762
404,649
197,685
7,793,096
-
244,719
83,365
328,084
-
23,988
19,464
43,452
-
-
35,332
-
35,332
-
-
268,707
67,497
336,204
7,190,762
135,942
130,188
7,456,892
6,789,101
104,567
75,798
6,969,466

The estimated current market value of the freehold land and buildings is £15,090,000 (2020 : £13,720,000).

7 Debtors

7
Debtors
Income tax recoverable
Other debtors
Prepayments and accrued income
8
Cash at bank and in hand
Bank deposit account
Bank current account
Cash in hand		 2021
£
130,108
-
22,364
152,472
2021
£
1,953,409
196,967
14,360
2,164,736		 2020
£
130,999
45,000
7,617
183,616
2020
£
1,404,210
131,637
10,818
1,546,665

19

UNIVERSAL PENTECOSTAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

9
Creditors: amounts falling due within one year
Other creditors
10
Funds
Unrestricted Fund Reserves
Balance as at 1 April 2020
Net movement of funds for the year
Balance as at 31 March 2021
11
Capital commitments
At 31 March 2021 the Charity had capital commitments
as follows:
Expenditure contracted for but not provided in the accounts
12
Related parties		 2021
£
25,350
2021
£
-		 2020
£
20,250
2021
£
8,679,497
1,069,253
9,748,750
2020
£
-

The Charity is controlled by the Board of Trustees.

There were no related party transactions for the year ended 31/3/21 ( 31/3/20 : £nil)

There was no remuneration paid to any of the Trustees for the year ended 31/3/21 other than the reimbursement of their expenses (31/3/20 : £nil)

13 Provision Available for Small Entities

In common with many other businesses of our size and nature we use our auditors to assist us with the preparation of the financial statements.

20

UNIVERSAL PENTECOSTAL CHURCH

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 MARCH 2021

14 COVID 19

With effect from mid March 2020 the UK has suffered significant disruption as a result of the COVID 19 pandemic. The Church has not been able to return to normal levels of attendance and activity due to restrictions imposed by the government. The Church is funded to a large extent by the regular donations of its members and attendees and donation income since the balance sheet date has not reduced significantly. This has enabled the Church to continue those activities which have been permitted and avoid changes to its general infrastructure.

15 Post Balance Sheet Events

The Board of Trustees have since the year end paid a sum of £150,000 to a sister church in the Republic of Ireland in order to assist them in acquiring a freehold property as a place to accommodate the Ministers helping at the church.

21