Charity Registration No. 292082
UNIVERSAL PENTECOSTAL CHURCH
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
UNIVERSAL PENTECOSTAL CHURCH
| Trustees President Secretary Treasurer Charity number Principal address Independent Auditors Bankers Property Solicitors Legal & Constitutional matters |
Pastor Vaithialingam Rudran Sister Rachel George Mr Mark Jeyaseelan Abraham (Deceased 10/8/2021) Mrs Folasade Lawson Brother John Nallathambi Thyagarajan Dr Bessy Joseph (Appointed 12/10/2021) Pastor Vaithialingam Rudran Sister Rachel George Brother John Nallathambi Thyagarajan 292082 20 Acre Lane Brixton London SW2 5SG Lake & Co Chartered Accountants and Registered Auditors 25A Kenton Park Parade Kenton Middlesex HA3 8DN Lloyds Bank plc 3 St Georges Road London SW19 8AQ McGlennons Solicitors 157 Arthur Road London SW19 8AD Bates Wells & Braithwaites Solicitors TRUSTEES' REPORT AND FINANCIAL STATEMENTS REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2022 |
|---|---|
UNIVERSAL PENTECOSTAL CHURCH INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
| 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 2022
The trustees present their annual report together with the financial statements of the charity for the year ended 31 March 2022. 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 2022, 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 trust deed, 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 2022
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 2022
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) were cancelled. The Annual Conventions were held on a limited scale in Leicester, Paris, and London.
3
UNIVERSAL PENTECOSTAL CHURCH
TRUSTEES' ANNUAL REPORT (Continued)
FOR THE YEAR ENDED 31 MARCH 2022
Religious Camps
During the year the Church organises: 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 are made available to everyone without any charge. However, this year we were unable to hold the Camps, due to the Covid-19 virus pandemic, but each Branch Church was able to organise one-day Programmes for all three groups, in their assembly.
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 destressing times.
Magazine Ministry
The Charity publishes and circulates quarterly magazines which contains spiritual articles, Bible studies and testimonial. 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 £954,993 (2021: £1,069,253). 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 £183,404 (2021: £12,220), principally to our our sister Churches in the Republic of Ireland and in Genoa 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 2022
The Statement of Financial Activities and Income and Expenditure shows an overall net surplus for the year of £954,993 (2021: £1,069,253).
The total unrestricted funds at the year end amounted to £10,703,743 (2021: £9,748,750).
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 2022
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 £153,562 (2021: £130,211) out of total donations received of £1,743,565 (2021: £1,492,543) during the year.
Post Balance Sheet Events
The Board of Trustees have since the year end paid a sum of £2,293,530 towards the acquisition of the freehold property known as Global House, 424 Bath Road, West Drayton, Middlesex UB7 0EB, which will be used as a further place of worship.
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:
-
a) select suitable accounting policies and apply them consistently;
-
b) observe the methods and principles in the Charities SORP;
-
c) make judgements and estimates that are reasonable and prudent;
-
d) state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
e) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and 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 2022
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 : 17 January 2023
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 2022 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:
-
give a true and fair view of the state of the charity's affairs as at 31 March 2022 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 Charities Act 2011.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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:
-
the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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:
-
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.
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 - 7, 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 Standardson 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: 17 January 2023
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 2022
| 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 2021 Fund balances at 31 March 2022 |
Unrestricted Unrestricted Total Total 2022 2021 £ £ 1,743,565 1,492,543 366 997 1,743,931 1,493,540 - 890 - 1,743,931 1,492,650 751,695 383,027 37,243 40,370 788,938 423,397 954,993 1,069,253 954,993 1,069,253 8,451,958 7,382,705 9,406,951 8,451,958 |
|---|---|
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 7,657,546 7,456,889 7 176,820 152,472 8 2,929,860 2,164,736 3,106,680 2,317,208 9 60,483 - 25,347 - 3,046,197 2,291,861 10,703,743 9,748,750 10 10,703,743 9,748,750 10,703,743 9,748,750 AS AT 31 MARCH 2022 2022 2021 |
Notes £ £ £ £ 6 7,657,546 7,456,889 7 176,820 152,472 8 2,929,860 2,164,736 3,106,680 2,317,208 9 60,483 - 25,347 - 3,046,197 2,291,861 10,703,743 9,748,750 10 10,703,743 9,748,750 10,703,743 9,748,750 AS AT 31 MARCH 2022 2022 2021 |
Notes £ £ £ £ 6 7,657,546 7,456,889 7 176,820 152,472 8 2,929,860 2,164,736 3,106,680 2,317,208 9 60,483 - 25,347 - 3,046,197 2,291,861 10,703,743 9,748,750 10 10,703,743 9,748,750 10,703,743 9,748,750 AS AT 31 MARCH 2022 2022 2021 |
|---|---|---|---|
| Notes 6 7 8 9 10 |
|||
| 3,106,680 60,483 - |
|||
| 9,748,750 | |||
| 9,748,750 | |||
| 9,748,750 |
Approved by the board of trustees on 17 January 2023
……………………………………………………… President
Pastor Vaithialingam Rudran
13
UNIVERSAL PENTECOSTAL CHURCH
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
| Total funds 31/3/2022 £ Cash flows from operating activities: Net cash provided by operating activities 1,025,338 Cash flows from investing activities: Proceeds from sale of fixed asssets - Purchase of property, plant & equipment 260,214 - Net cash provided by (used in) activities 765,124 Change in cash and cash equivalents in the reporting period 765,124 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 954,993 Adjustments for: Depreciation charges 59,557 Loss/(profit) on sale of fixed assets - (Increase)/decrease in debtors 24,348 - Increase/(decrease) in creditors 35,136 Net cash provided by (used) in operating activities 1,025,338 |
Prior Year funds |
|---|---|
| 31/3/2021 £ 1,149,839 18,160 549,918 - |
|
| 618,081 | |
| 618,081 | |
| 1,069,253 43,452 890 31,144 5,100 |
|
| 1,149,839 |
14
UNIVERSAL PENTECOSTAL CHURCH
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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 2022
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 2022
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 |
2022 £ 1,590,003 153,562 1,743,565 2022 £ 366 2022 £ - |
2021 £ 1,362,332 130,211 |
|---|---|---|
| 1,492,543 | ||
| 2021 £ 997 |
||
| 2021 £ 890 - |
17
UNIVERSAL PENTECOSTAL CHURCH
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2022
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) 183,404 Activities undertaken directly (see below) - 183,404 Governance costs - 183,404 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 £ 183,404 - |
Charitable Total expenditure 2022 £ £ - 183,404 568,291 568,291 |
Total 2021 £ 12,220 370,807 |
|---|---|---|---|---|
| 183,404 | 568,291 751,695 |
383,027 | ||
| - | 37,243 37,243 |
40,370 | ||
| 183,404 | 605,534 788,938 |
423,397 | ||
| 2022 £ 124,714 55,645 111,710 14,843 131,548 42,653 4,380 6,124 16,779 338 59,557 568,291 2022 £ 24,000 13,243 37,243 |
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 11,811 |
||||
| 35,811 |
18
UNIVERSAL PENTECOSTAL CHURCH
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2022
6 Tangible fixed assets
| Tangible fixed assets | |
|---|---|
| Cost: At 1 April 2021 Additions Disposals At 31 March 2022 Depreciation: At 1 April 2021 Charge for year Disposals At 31 March 2022 Net Book Value: At 31 March 2022 At 31 March 2021 |
Freehold Fixtures, land and fittings & Motor buildings equipment vehicles Total £ £ £ £ 7,190,762 404,649 197,685 7,793,096 188,097 72,117 - 260,214 - |
| 7,378,859 476,766 197,685 8,053,310 |
|
| - 268,710 67,497 336,207 - 26,495 33,062 59,557 - - |
|
| - 295,205 100,559 395,764 |
|
| 7,378,859 181,561 97,126 7,657,546 |
|
| 7,190,762 135,939 130,188 7,456,889 |
The estimated current market value of the freehold land and buildings is £14,275,000 (2021 : £15,090,000).
7 Debtors
| Income tax recoverable Prepayments and accrued income 8 Cash at bank and in hand Bank deposit account Bank current account Cash in hand |
2022 £ 153,562 23,258 176,820 2022 £ 2,806,041 110,802 13,017 2,929,860 |
2021 £ 130,108 22,364 |
|---|---|---|
| 152,472 | ||
| 2021 £ 1,953,409 196,967 14,360 |
||
| 2,164,736 |
19
UNIVERSAL PENTECOSTAL CHURCH
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2022
| 9 Creditors: amounts falling due within one year Other creditors 10 Funds Unrestricted Fund Reserves Balance as at 1 April 2021 Net movement of funds for the year Balance as at 31 March 2022 11 Capital commitments At 31 March 2022 the Charity had capital commitments as follows: Expenditure contracted for but not provided in the accounts 12 Related parties |
2022 £ 60,483 2022 £ 2,293,530 |
2021 £ 25,347 |
|---|---|---|
| 2021 £ 9,748,750 954,993 |
||
| 10,703,743 | ||
| 2021 £ - |
||
The Charity is controlled by the Board of Trustees.
There were no related party transactions for the year ended 31/3/22 ( 31/3/21 : £nil)
There was no remuneration for any of the Trustees other than the reimbursement of their expenses (31/3/21 : £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 2022
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 £2,293,530 towards the acquisition of the freehold property known as Global House, 424 Bath Road, West Drayton, Middlesex UB7 0BE.
21