THE HILLS CHURCH LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023 Company Registration Number: Nl 648296 Charities Registration Number: NIC 108616 THE HILLS CHURCH LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023 CONTENTS Pages Report of the Trustees Independent Examiners Report Statement of Financial Activities (incorporating income and expenditure account) Statement of Financial PositionlBalance Sheet Notes to the financial statements 10- 16 THE HILLS CHURCH LTD REPORT OF THE DFRECTORS (INCORPORATING TRUSTEES, REPORT) The Directors (who are also the trustees) are pleased to present their annual report together with the financial statements of the charity for the year ending 31 st December 2023, which are prepared to Tneet the requirements for a directors, report and accounts for Companies Act purposes. The directors have adopted the provisions of the Companies Aci 2006 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP- FRS102), in preparing the annual report and financial statements of the charity. Reference and administrative details Registered charity narne- Company registration number: Charity Comrnission Registration Number: NIC 108616 (registered 18th March 2022) HMRC Charity Reference: N101105 Principal office and registered office.. The Hills Church Ltd N1648296 Ebrington Centre. Glenderniott Road. Londonderry, BT47 6BG Directors and Trustees of the CompAny The directors who held office during the period were as follows.. Mr Andrew Gamble Mrs Victoria Gamble Mr John Gamble Mr Henry Mccrory (appointed 0111012023) Rev John Ashe (appointed 0111012023, resigned 0410412024) Mr David Beck (appointed 0510412024). Structure, governance and management The Hills Church Ltd was incorporated on 27th September 2017. It is currently managed by the trustees and all decTsions are passed by a majority vote at their regular trLEStee meetings. The Company is a charity limited by guarantee without share capital. The company is governed by its Memorandum and Articles of Association. In the event of the Company being wound up members aTe required to contribute an amount not exceeding £ l. The Board is responsible for the overall governance of the Company and is actively involved in the day to day management of the organisation. Directors are appointed in line with the MemoranduTll & Articles of Association of the company. The Board of Directors are also known as Trustees for the purposes of the Charity Commission. Risk management The trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of the Company, and are satisfied that systems are in place to mitigate the exposure to major risks. Risks identified, such as the financial viability and sustainability of the charitable cornpany, have been reviewed to ensure that a level of funding is maintained that is necessary for the charitable coTnpany to continue to rneet its objectives. Internal risks are minimised by the implementation of company policies such as the policy on financial controls, which require the authorisation of all transact?ons at the regular trustee meetings and Segregation of duties where possible. The directors have Conducted a review of the rnajor risks to which the harity is exposed. Financial risk is reviewed on a monthly basis having due regard to ongoing income and expenses. THE HILLS CHURCH LTD REPORT OF THE DIRECTORS (INCORPORATING TRUSTEES, REPORT) Continued Objective5 and Activities (and how they deliver public benefit) The Church's objects are specifically restricted to the promotion and advancement of the Christian faith, the advancement of education, the relief of poverty, sickness, hardship and distress and the promotion of the benefit of the inhabiiants in the North West area of Northem Ireland primarily and in any other part of the world as the directors may think fil ("hereinafter called the 'area of benefit") without di5tin¢tion of age, gender, disabilitylability, rdce, ethnic origin. political, religious or other opinion with the objective of improving the conditions of life for the said inhabitants and in particular: (a) to advance the Christian faith and promote ChTlStianity in such ways and in such areas as the Directors from time to time may think fit, and in particularly but not exclusively through the provision of preaching, the distribution of Christian literature and the education of people in the area of benefit through evangelism and the provision of biblically b&s¢d fraching, discipleship training, meetings. bible studies and social activities. (b) to train Leaders and Pastors and volunteers so that they may work on projects promoted by the Church in the area of benefit- (c) to train Christiai)s 50 that they may seek to plant churches and to encourage new, and strengthen existing, partnerships with churches and evangelical groups in the area of benefit. (d) to relieve sickness and financial hardship and to promote and preserve good health by the provision of funds, goods or services of any kind, including through the provision of counselling and 5UPPOrt in the area of benefit as the Directors may from time to time may think fit. The Hills Church ("the church") was established in Deny/Londonderry as a non-denominational evangelical church to cater for the spiritual needs of the members and the local community by encouraging active participation within the community based on biblical principles for life and to unite an inter-faith area. The main objective 15 to advance the Christian faith for the benefit of the public. The basis of this faith is found in the Holy Bible. The church believes that mission is the foLal point of the Gospel and that mission should be a key element in the life of Christians. As a consequence of this, the objects of the church also Span the relief of poverty, sickness, hardship and distress and the promotion of the benefit of the inhabitants in the North West area of Northern Ireland primarily and in any other part of the world as the Directors may think fit. The church has a busy schedule of Sunday services and midweek meetings. All the services are open to the public. The Church also seeks to reach out and offer services to meet the wider needs of the community. for the public benefit. Amongst other things. it is hoped that these activities will include youth groups, Sunday schools and summer schemes. The Church also support5 Other charitable organi5ations involved in missionary work and relief of povety overseas. The church C￿leS out a w?de range of services that assist local charities. It's the aim of the church to fund all activities. The Church seeks to advance the Christian faith and promote Christianity in such ways and in such areas as the Committee may from time to time may think fit, and in particularly but not exclusively through the provision of preaching, distribution of Christian literature and the education of people in the area of benefit through the provision of biblically based teaching. meeliT]gs, bible studies and social actTVities' Our aim and objectives are to be a Christian church con51Sting of all the values according to the New Testament. THE HILLS CHURCH LTD REPORT OF THE DIRECTORS (INCORPORA TING TRUSTEES, REPORT) Continued Public Benefit The Hills Church Itd strives to ensure that they provide public benefit. Public benefit is at the heart of what it means to be a charity. To achieve this objective. The Hills Church Ltd meets the following purposes- Purpose (a) - The direct benefit from this purpose is the provision of instruction and encouragement on living a moral and law abiding lifestyle. The benefit will be demonstrated by the growth of attendance and through feedback from beneficiaries via comments on social media, emails, verbal approbalion from community representatives and positive feedback from local council and funding bodies. To our knowledge this purpose will not lead to any harn] but if such occurs it will be far outweighed by the benefit. The beneficiaries are regular attendees of I'he Hills Church Ltd (adults, children and the aged) and inhabitan15 of the DerrylLondonderry area and all others who wish to attend our meetings. We have identified no private benefit flowing from this purpose. Puryose {b) - The direct benefit from this pU￿oSe is that those attending any of our Services or events will be able to avail of help, support and assistance from well-trained peopl¢ well able to meet their practical, emotional and spiritual needs. This benefit will be demonstrated by the ability of those trained to be able to effectively a55ume positions of leadership and responsibility and that the public will be aided and protected. Records will exist as people complete training in area5 such as child protection and leadership development. To our knowledge this purpose will not lead to any harni but if such occur5 It will be far outweighed by the benefit. The beneficiaries are those being trained but also Ihe wider public (adults and children) who will benefit from the availability of trained persons at our regular meetings and large public events. Private benefit from this purpose may be that training provided may also be of use outside of the charity Situation but this is incidental. Purpose (¢) The direct benefit from this purpose is the promotion of good relations with other similar org¢)nisations and the Strengthening of partnerships to contribute to and tap into a larger wealth of experience and skills w?Ih which to assist the ¢ornmunity. In trdining members to plant new churches we will provide new opportunities for advancement of moral standards. This benefit will be demonstrated by the planting of other churches and by good relations and co-operation with other churches and groups. To our knowledge th3s purpose will not lead to any harm but if such occurs it will be far outweighed by the benefit. The beneficiaries are local. national and multi-national individuals, communities and organisations. There may be slight benefit to some relating to resources now available to them through charity contacts. but this is incidental. Purpose (d) - Direct benefit from this purpose is the welfare and well-being of the public will be enhanced and improved by services provided by the charity. For example, free events which ellable those in financial difficulty to attend, giveaway of hampers, gift home heating oil at Christmas and various times throughout the year, and the intended establishment of a regular prayer service. Also, the future establishment of a hardship fund lo help those in need. The benefit will be dernonstrated by regularly held free public events, endorsed and part funded by local council, large quantities of provisions distributcd via Christmas hampers and, positive feedback from beneficiaries. We have been unable to identify any harni flowing from this benefIt. The beneficiaries are PTimarily adults and children in the Deny.'Londondery area but it is probable that people from further a-field will also visit to avail of our evenls and services. as there are no greographical restriction5. Private benefit may occur during training whereby the person may avail of counselling services theTnselves during the training process but this benefit is incidental and necessary to properly equip the person being trained. No hami arises from the organi5ation5 purposes. We reach out to all communities and cultures in DeTryILondonderry and the wider North West region. Our primary beneficiaries are our congregation and the public who attend our free events. The beneficiaries range in age from birth to the elderly including people from the protestant and catholic cornmunities and people froTn different ethnic minority backgrounds. Other beneficiaries are disadvantaged struggling families who receive support in various fornis including food hampers, pastoral care, support towards home heating costs. gifts for children at Christma5 and other times throughout the year. No private benefit arises from the organisations purposes. THE HILLS CHURCH LTD REPORT OF THE DIRECTORS (INCORPORATING TRUSTEES, REPORT) Continued Financial review and funds policy The company is a non profit making entlty. During the year the charity received income totalling £139,379 and had expenditure of £153.661. so recorded a deficit of £14,282 for the year. The directors expect the charity to report an overall surplus in the incoming year. The principal funding source of The Hills Church Ltd is from freewill offerings given at church services and by online gyiving. The directors consider it prudent to hold monies in reserve in the event that unforeseen circumstances may arise that could lead to financial ditficulties which might put its future into jeopardy. At the year end the charity had £24,508 of cash funds to meet the continuing running costs of the company. The directors have examined the charity's requirements for reserves taking into account the risks that they have recognised. The reserves policy requires that reserves are maintained at a level which ensures that the core activity of the company could continue during a period of unforeseen difficulty. The company plans to continue its activities in the forthcoming years. Funds held as custodian trustee on behalf of others The charity does not hold any funds on behalf of others. Small companies provision statement This report has been prepared in accoi'dance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. Statement of directors, responsibilities The directors (who are the trustees of The Hills Church Ltd) are responsible for PTeparing the directOTS' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare finaT]cial statement5 for each financial year. Under that law the director5 have prepared the financial statements IT] accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable cornpany and of the incoming resources and application of resources, including income and expenditure for that period. In preparing these financial statements, the directors are required to.. select suitable accounting policies and apply them consistently. observe the methods and priT]ciples in the Charities SORP-FRSIO2. make judgements and accounting estimates that are reasonable and prudent- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statement. and prepare the financial staternents on the going concem basis unless it is inappropriate to presume that the Company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the fmancial position of the haritable company and enable thern to ensure that the financial statements comply with the Companies Act2006. They are also responsible for safeguarding the assets of the chaTitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. THE HILLS CHURCH LTD REPORT OF THE DIRECTORS (INCORPORATING TRUSTEES, REPORT) Continued In the Case of each director in office at the date the Directors. Report is approved-. so far as the director is aware, there is no relevant accounts information of which the charity's independent examiners are unaware. and they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant accounts infonnation and to establish that the charitable company's independent examiners are aware of that infomiation. Approved by the Board on 23rd September 2024 and siLFned on its behalf by.. Andrew Gamble Victoria Gamble John Gamble INDEPENDENT EXAMINER'S REPORT TO THE MEMBERS OF THE HILLS CHURCH LTD I report on the accounts of the company for the year ended 31 st December 2023, which are set out on pages 8 to 16. Respective responsibilities of trustees and examiner The trnstees (who are also the directors of the company for the purposes ofcoTnpany law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 65(2) of the Charities Act (Northern Ireland) 2008 (the Charities Act) and that an independent examination is needed. lThe charity is required by company law to prepare accrued accounts and l am qualified to undertake the examination by being a member of the Institute of Financial Accountants. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: examine the accounts under section 65 of the Charities Act follow the procedure5 laid down in the general Directions given by the Charity Commission for Northern Ireland under section 65(9)(b) of the Charities Acl state whether particular matters have come to my attention. Basis of independent examiner's report I have examined your charity accounts as required under section 65 of the CharitTes Act and my examination was carried out in accordance with the general directions given by the Charity Cornmission for Northern Ireland under section 65 (9) of the Charities Act. The examination included a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also included consideration of any unusual iterns or disclosures in the accounts, and seeking explanations from you as charity trustees concerning any such matters. My role is to state whether any material matters have come to my attention giving me cause to believe: The accounting records were not kept as required by section 63 of the Charities Act. 2. That the accounts do not accord with those accounting records. 3. That the accounts do not comply with the a¢counting requirements of the Companies Act 2006 and with the methods and principles of the 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. 4. That there is further infomation needed for a proper understanding of the accounts to be reached. Independent examiner's statement I have completed an independent examination and have no concerns in respect of matters (l) to (4) above, and in connection with following the directions of the Charity Commission for Northern Ireland, I have found no matters that require drawing to your attentioii. Mr lan Johnston (A.F.A.) For and on behalf of Stevenson and Wilson Chartered Accountants 22 - 30 Broadway Avenue Ballyrnena B T43 7AA Date 23rd September 2024 THE HILLS CHURCH LTD STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31st DECEMBER 2023 Unrestricted Restricted Endowment Funds Funds Funds Total Total 2023 2023 2023 2023 2022 Incoming resources Note Donations received Other income 125,504 5,475 125,504 13,875 152,234 8.558 8.400 Total income 130,979 8,400 139,379 160.792 Resources expended Charitable activities 145,261 8,400 153,661 172,730 Total expenditure 145,261 8,400 153,661 172,730 Net income/(expenditure) before Transfers (14.282) (14,282) (11,938) Transfers between funds (14,282) (14,282) (11,938) Reconciliatton of funds: Total funds brought fonvard 59,487 59.487 71,425 Total funds Ca￿led forward 45,205 45,205 59,487 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities. The notes on pages 10 to 16 form part of these financial statements THE HILLS CHURCH LTD STATEMENT OF FINANCIAL POSTflONI BALANCE SHEET AS AT 31st DECEMBER2023 Note 20 2022 Flxed assets Tangible fixed assets tangible fixed assets 27,173 34,804 Totsl fixed a&*ts 27.173 34.8( Debtors Cash at bank 1,462 24,508 7.628 21.402 Total current assets 25.970 29,030 Creditors - anwunts falling due witbiD One year io 7,938 4,347 Totsl eredltors 7.938 4,347 Total net current assets 18.032 2A,683 Totsl net assets 45,205 59,487 General funds 12 45,205 59.487 45,205 59,487 12 12 45.205 59,487 The financi81 statements have been prep8r&l io accordance with the provisions applicable to companies subject to the small companies, reginr under The Companies Act 2Crt16 and with Charities SORP-FRSIO2. The notes on pages 10 to 16 are an integral part of these financial statements. The financial statements on pages 8 to 16 were approved by the Board of Thist￿ on 23rd September 2024 and signpAI on its beR￿lf by: Andrew Gamble Victoria Gamble John Gamble Date 23rd September 2024 The notes on pages 9 to 15 forn] part of these financial statements THE HILLS CHURCH LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31" DECEMBER 2023 l. Company information The Company is limited by guarantee and is incorporated in Northern Ireland. The address of the registered office is Ebrington Centre, Glendermot Road, Londonderry, BT47 6BG. The financial slatements were authorised for issue by the Board on 23rd September 2024. 2. Accounting policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows-. Basis of preparation The financial statements have been prepared on a going concern basis in accordance with Accounting and Reporting by Charities.- Statement of Recommended Prdctice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP {FRS 102}), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The charity meets the definition of a public benefit entlty under FRS 102. Assets and liabilities are initially recognised at historical Cost and transaction value unless othenvise stated in the relevant accounting policy note(s). Preparation of aecounts on a going concern basis The charity generally meets its day to day working capital requirements from its annual income. The Trustees have obtained and reviewed cash flow forecasts for the coming year and based on these are satisfied that the charity has resources to provide a reasonable expectation that it can continue to meet its financial obligations as they fall due for the foreseeable future. Therefore these financial statements have been prepared on a going concern basis. Incoming resources Donations received comprises all cash rec¢ivable for the accounting period, including any related tax recoverable under Gift Aid. Resources expended Resources expended are recognised in Ihe period in which they are incurred. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and service5 to 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. Tangible assets The tangible assets of the charity cornprise of equipment, sound equipment and website. Equipment is depreciated at a rate calculated to reduce it to residual value at the end of its expected nomial life on a straight line basis at a rate of 200/0 per annum. Sound equipment is depreciated at a rate calculated to reduce it to residual value at the end of its expected nonnal life on a straight line basis at a rdte of l O % per annum. THE HILLS CHURCH LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023 (continued) Accounting policies (eontinued) Website is depreciated at a rate calculated to reduce it to residual value at the end of its expected normal life on a straight line basis at a rate of l 00/0 per annum. The assets, residual values and useful lives are reviewed. and adjusted, if appropriate, at the end of each reporting period. The eff¢¢l of any change is accounted for prospectively. Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the new disposal proceeds and the carying amount is recognised in the staternent of financial activitics and included in "other operdting gain51(losses)" Cash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-terni highly liquid investments with original mattLrities of three months or less and bank overdrafts. Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic fTnan¢ial instruments. Basic financial instruments are initially recognised at transaction price and subsequently measured at their settlement value. Funds Funds are classified as either unrestricted funds. restricted or endowment funds, defined as follows. Unrestricted funds are expendable at the discretion of the tnjstees in furtherance of the objects of the charity. If parts of the unrestricted fi￿dS are eaTmarked at the discretion of the trustees for a particular purpose, they are designated as a separate fund. This designation has an administrative purpose only and does not legally restrict the t￿Stees, discretion to apply the fund. Restricted ￿ndS are funds subject to specifjc requirernents as to their use which may be declared by the donor or with their authority or created through legal processes, but still within the wider objects of the charity. Endowment funds are funds which have been given on the condition that the original capital sum is not reduced, but the income there from is used for the purpose defined in accordance with the objects of the charity. Critical accounting judgements and estimation uncertainty Estimates and judgments made in the process of preparing the financial statements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Trustee5 do not consider that there are any critical judgments rnade in applying the Company's accounting policies or that there are any critical accounting estimates or assumptions which may have a significant risk of causing a material adjustment to carrying atnounts of a55ets and liabilities within the next financial year. THE HILLS CHURCH LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023 (continued) 3. Donations received Unrestricted Funds Restricted Funds Endowment Funds Total Total 2023 2023 2023 2023 2022 Offerings and tithes Gifts Tax recovered on donations Ukraine Appeal 83,957 30.640 10,907 83,957 30,640 10,907 75.972 62,560 9,457 4,245 125.504 125,504 152,234 4. Other income Unrestricted Funds Restricted Funds EDdowment Funds Total Total 2023 2023 2023 2023 2022 Sundry income 5,475 8,400 13.875 8,558 5,475 8,400 13,875 8,558 12 THE HILLS CHURCH LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023 (continued) 5. Analysis of Expenditure Unrestricted Funds Restricted Funds Endowment Funds Total Total 2023 2023 2023 2023 2022 Charitable activities Wages Mission and generosity Guest speakers Trdvel expenses Rent Sunday catering Sltnday expenses Team and conference expenses Publicity, fliers and stationery Telephone Fees, subscriptions and charges Visual and sound expenses Easter outreach expenses Special event exper]ses Team expenses Hospitality Depreciation Governance costs Computer and website expenses Pastoral care Kids Ministy Insurance Repairs and maintenance Office expenses Other expenses 66,691 4,100 985 4,058 19.225 2,223 4,980 952 3,403 3,475 3,223 4,060 66,691 4,100 985 4,058 19,225 2,223 4.980 952 3,403 3,475 3,223 4,060 62,201 12,513 2,445 13,382 16,380 2,702 5,646 6,560 635 2,885 1,895 6,439 16,981 2.362 1,174 1,725 7.631 2,130 284 5,630 1,690 429 901 1,003 5,289 1,174 10,125 7,631 2,130 284 5,630 1,690 429 901 1,003 5,289 8,400 6,323 2,034 1,027 5,955 781 425 572 1,215 1,372 145,261 8,400 153,661 172,730 6. Taxation The charity is recognised as a charity for the purposes of applicable taxation legislation and is therefore not subject to taxation on its charitable activities. 7. Analysis of staff Costs, trustee remuneration and expenses, and the Cost of key management personnel Employees 2023 2022 Salaries and wages 66,691 62,201 Total 66,691 62,201 13 THE HILLS CHURCH LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023 (eontinued) The average number of employees during the year, was as follows: 2023 2022 Number Number Directors Others There are no employees in receipt of employee benefits in excess of £60,000. During the year, Andrew and Victoria Gamble acted as the Church Pastors in addition to their position as a trustee. Their Pastor's emoluments from the company were £61,689 (2022: £62,201). No other directors reccived any remuneration during the year. No trustee or a person Telated to a trustee had any personal interest in any contract or transaction entered into by the charity during the year. Tangible fixed assets Website Sound Equipment Total Cost At beginning of year Additions 7,087 27,245 20,996 55,328 At end of the year 7,087 27,245 20,996 55,328 Depreciation At beginning of year Depreciation 3,116 709 9,432 2,724 7.976 4.198 14.201 6,323 At end of the year 3,825 12,156 12,174 20,524 Net book value